[Congressional Record (Bound Edition), Volume 145 (1999), Part 20]
[Senate]
[Pages 28754-28833]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 28754]]

                   THE BANKRUPTCY REFORM ACT OF 1999

                                 ______
                                 

               COVERDELL (AND OTHERS) AMENDMENT NO. 2545

  (Ordered to lie on the table.)
  Mr. COVERDELL (for himself, Mr. Sarbanes, Mr. Biden, Mr. Mack, Mr. 
Edwards, Mr. Graham, and Mr. Cleland) submitted an amendment intended 
to be proposed by them to the bill, S. 625, supra; as follows:

       At the appropriate place, insert the following:

     SEC. __. BANKRUPTCY JUDGESHIPS.

       (a) Temporary Judgeships.--The following judgeship 
     positions shall be filled in the manner prescribed in section 
     152(a)(1) of title 28, United States Code, for the 
     appointment of bankruptcy judges provided for in section 
     152(a)(2) of such title:
       (1) One additional bankruptcy judgeship for the district of 
     Delaware.
       (2) One additional bankruptcy judgeship for the southern 
     district of Florida.
       (3) One additional bankruptcy judgeship for the southern 
     district of Georgia.
       (4) One additional bankruptcy judgeship for the district of 
     Maryland.
       (5) One additional bankruptcy judgeship for the eastern 
     district of North Carolina.
       (6) One additional bankruptcy judgeship for the district of 
     Puerto Rico.
       (b) Vacancies.--The first vacancy occurring in the office 
     of a bankruptcy judge in each of the judicial districts set 
     forth in subsection (a) shall not be filled if the vacancy--
       (1) results from the death, retirement, resignation, or 
     removal of a bankruptcy judge; or
       (2) occurs 5 years or more after the appointment date of a 
     bankruptcy judge appointed under subsection (a).
                                 ______
                                 

                       BENNETT AMENDMENT NO. 2546

  (Ordered to lie on the table.)
  Mr. BENNETT submitted an amendment intended to be proposed by him to 
the bill, S. 625, supra; as follows:

       At the end of the bill, add the following:

       TITLE XIII--FINANCIAL INSTITUTIONS INSOLVENCY IMPROVEMENT

     SEC 1301. SHORT TITLE.

       This title may be cited as the ``Financial Institutions 
     Insolvency Improvement Act of 1999''.

     SEC. 1302. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR 
                   RECEIVERS OF INSURED DEPOSITORY INSTITUTIONS.

       (a) Definition of Qualified Financial Contract.--Section 
     11(e)(8)(D)(i) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(e)(8)(D)(i)) is amended by inserting ``, 
     resolution, or order'' after ``any similar agreement that the 
     Corporation determines by regulation''.
       (b) Definition of Securities Contract.--Section 
     11(e)(8)(D)(ii) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(e)(8)(D)(ii)) is amended to read as follows:
       ``(ii) Securities contract.--The term `securities 
     contract'--

       ``(I) means a contract for the purchase, sale, or loan of a 
     security, a certificate of deposit, a mortgage loan, or any 
     interest in a mortgage loan, a group or index of securities, 
     certificates of deposit, or mortgage loans or interests 
     therein (including any interest therein or based on the value 
     thereof) or any option on any of the foregoing, including any 
     option to purchase or sell any such security, certificate of 
     deposit, loan, interest, group or index, or option;
       ``(II) does not include any purchase, sale, or repurchase 
     obligation under a participation in a commercial mortgage 
     loan unless the Corporation determines by regulation, 
     resolution, or order to include any such agreement within the 
     meaning of such term;
       ``(III) means any option entered into on a national 
     securities exchange relating to foreign currencies;
       ``(IV) means the guarantee by or to any securities clearing 
     agency of any settlement of cash, securities, certificates of 
     deposit, mortgage loans or interests therein, group or index 
     of securities, certificates of deposit, or mortgage loans or 
     interests therein (including any interest therein or based on 
     the value thereof) or option on any of the foregoing, 
     including any option to purchase or sell any such security, 
     certificate of deposit, loan, interest, group or index or 
     option;
       ``(V) means any margin loan;
       ``(VI) means any other agreement or transaction that is 
     similar to any agreement or transaction referred to in this 
     clause (other than subclause (II));
       ``(VII) means any combination of the agreements or 
     transactions referred to in this clause (other than subclause 
     (II));
       ``(VIII) means any option to enter into any agreement or 
     transaction referred to in this clause (other than subclause 
     (II));
       ``(IX) means a master agreement that provides for an 
     agreement or transaction referred to in subclause (I), (III), 
     (IV), (V), (VI), (VII), or (VIII), together with all 
     supplements to any such master agreement, without regard to 
     whether the master agreement provides for an agreement or 
     transaction that is not a securities contract under this 
     clause, except that the master agreement shall be considered 
     to be a securities contract under this clause only with 
     respect to each agreement or transaction under the master 
     agreement that is referred to in subclause (I), (III), (IV), 
     (V), (VI), (VII), or (VIII); and
       ``(X) means any security agreement or arrangement or other 
     credit enhancement related to any agreement or transaction 
     referred to in this clause (other than subclause (II)).''.

       (c) Definition of Commodity Contract.--Section 
     11(e)(8)(D)(iii) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(e)(8)(D)(iii)) is amended to read as follows:
       ``(iii) Commodity contract.--The term `commodity contract' 
     means--

       ``(I) with respect to a futures commission merchant, a 
     contract for the purchase or sale of a commodity for future 
     delivery on, or subject to the rules of, a contract market or 
     board of trade;
       ``(II) with respect to a foreign futures commission 
     merchant, a foreign future;
       ``(III) with respect to a leverage transaction merchant, a 
     leverage transaction;
       ``(IV) with respect to a clearing organization, a contract 
     for the purchase or sale of a commodity for future delivery 
     on, or subject to the rules of, a contract market or board of 
     trade that is cleared by such clearing organization, or 
     commodity option traded on, or subject to the rules of, a 
     contract market or board of trade that is cleared by such 
     clearing organization;
       ``(V) with respect to a commodity options dealer, a 
     commodity option;
       ``(VI) any other agreement or transaction that is similar 
     to any agreement or transaction referred to in this clause;
       ``(VII) any combination of the agreements or transactions 
     referred to in this clause;
       ``(VIII) any option to enter into any agreement or 
     transaction referred to in this clause;
       ``(IX) a master agreement that provides for an agreement or 
     transaction referred to in subclause (I), (II), (III), (IV), 
     (V), (VI), (VII), or (VIII), together with all supplements to 
     any such master agreement, without regard to whether the 
     master agreement provides for an agreement or transaction 
     that is not a commodity contract under this clause, except 
     that the master agreement shall be considered to be a 
     commodity contract under this clause only with respect to 
     each agreement or transaction under the master agreement that 
     is referred to in subclause (I), (II), (III), (IV), (V), 
     (VI), (VII), or (VIII); or
       ``(X) a security agreement or arrangement or other credit 
     enhancement related to any agreement or transaction referred 
     to in this clause.''.

       (d) Definition of Forward Contract.--Section 
     11(e)(8)(D)(iv) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(e)(8)(D)(iv)) is amended to read as follows:
       ``(iv) Forward contract.--The term `forward contract' 
     means--

       ``(I) a contract (other than a commodity contract) for the 
     purchase, sale, or transfer of a commodity or any similar 
     good, article, service, right, or interest which is presently 
     or in the future becomes the subject of dealing in the 
     forward contract trade, or product or byproduct thereof, with 
     a maturity date that is more than 2 days after the date on 
     which the contract is entered into, including a repurchase 
     agreement, reverse repurchase agreement, consignment, lease, 
     swap, hedge transaction, deposit, loan, option, allocated 
     transaction, unallocated transaction, or any other similar 
     agreement;
       ``(II) any combination of agreements or transactions 
     referred to in subclauses (I) and (III);
       ``(III) any option to enter into any agreement or 
     transaction referred to in subclause (I) or (II);
       ``(IV) a master agreement that provides for an agreement or 
     transaction referred to in subclauses (I), (II), or (III), 
     together with all supplements to any such master agreement, 
     without regard to whether the master agreement provides for 
     an agreement or transaction that is not a forward contract 
     under this clause, except that the master agreement shall be 
     considered to be a forward contract under this clause only 
     with respect to each agreement or transaction under the 
     master agreement that is referred to in subclause (I), (II), 
     or (III); or
       ``(V) a security agreement or arrangement or other credit 
     enhancement related to any agreement or transaction referred 
     to in subclause (I), (II), (III), or (IV).''.

       (e) Definition of Repurchase Agreement and Reverse 
     Repurchase Agreement.--Section 11(e)(8)(D)(v) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(v)) is amended 
     to read as follows:
       ``(v) Repurchase agreement; reverse repurchase agreement.--
     The terms `repurchase agreement' and `reverse repurchase 
     agreement'--

       ``(I) mean an agreement, including related terms, which 
     provides for the transfer of 1 or more certificates of 
     deposit, mortgage-related securities (as such term is defined 
     in the Securities Exchange Act of 1934), mortgage loans, 
     interests in mortgage-related securities or mortgage loans, 
     eligible bankers' acceptances, qualified foreign government 
     securities or securities that are direct obligations of, or 
     that are fully guaranteed by,

[[Page 28755]]

     the United States or any agency of the United States against 
     the transfer of funds by the transferee of such certificates 
     of deposit, eligible bankers' acceptances, securities, loans, 
     or interests with a simultaneous agreement by such transferee 
     to transfer to the transferor thereof certificates of 
     deposit, eligible bankers' acceptances, securities, loans, or 
     interests as described in this subclause, at a date certain 
     that is not later than 1 year after the date of such 
     transfers or on demand, against the transfer of funds, or any 
     other similar agreement;
       ``(II) does not include any repurchase obligation under a 
     participation in a commercial mortgage loan unless the 
     Corporation determines by regulation, resolution, or order to 
     include any such participation within the meaning of such 
     term;
       ``(III) means any combination of agreements or transactions 
     referred to in subclauses (I) and (IV);
       ``(IV) means any option to enter into any agreement or 
     transaction referred to in subclause (I) or (III);
       ``(V) means a master agreement that provides for an 
     agreement or transaction referred to in subclause (I), (III), 
     or (IV), together with all supplements to any such master 
     agreement, without regard to whether the master agreement 
     provides for an agreement or transaction that is not a 
     repurchase agreement under this clause, except that the 
     master agreement shall be considered to be a repurchase 
     agreement under this subclause only with respect to each 
     agreement or transaction under the master agreement that is 
     referred to in subclause (I), (III), or (IV); and
       ``(VI) means a security agreement or arrangement or other 
     credit enhancement related to any agreement or transaction 
     referred to in subclause (I), (III), (IV), or (V).

     For purposes of this clause, the term `qualified foreign 
     government security' means a security that is a direct 
     obligation of, or that is fully guaranteed by, the central 
     government of a member of the Organization for Economic 
     Cooperation and Development (as determined by regulation or 
     order adopted by the appropriate Federal banking 
     authority).''.
       (f) Definition of Swap Agreement.--The Federal Deposit 
     Insurance Act (12 U.S.C. 1821(e)(8)(D)(vi)) is amended to 
     read as follows:
       ``(vi) Swap agreement.--The term `swap agreement'--

       ``(I) means any agreement, including the terms and 
     conditions incorporated by reference in any such agreement, 
     that is--

       ``(aa) an interest rate swap, option, future, or forward 
     agreement, including a rate floor, rate cap, rate collar, 
     cross-currency rate swap, and basis swap;
       ``(bb) a spot, same day-tomorrow, tomorrow-next, forward, 
     or other foreign exchange or precious metals agreement;
       ``(cc) a currency swap, option, future, or forward 
     agreement;
       ``(dd) an equity index or equity swap, option, future, or 
     forward agreement;
       ``(ee) a debt index or debt swap, option, future, or 
     forward agreement;
       ``(ff) a credit spread or credit swap, option, future, or 
     forward agreement; or
       ``(gg) a commodity index or commodity swap, option, future, 
     or forward agreement;

       ``(II) means any agreement or transaction that is similar 
     to any other agreement or transaction referred to in this 
     clause, that is presently, or in the future becomes, 
     regularly entered into in the swap market (including terms 
     and conditions incorporated by reference in such agreement), 
     and that is a forward, swap, future, or option on 1 or more 
     rates, currencies, commodities, equity securities or other 
     equity instruments, debt securities or other debt 
     instruments, or economic indices or measures of economic risk 
     or value;
       ``(III) means any combination of agreements or transactions 
     referred to in this clause;
       ``(IV) means any option to enter into any agreement or 
     transaction referred to in this clause;
       ``(V) means a master agreement that provides for an 
     agreement or transaction referred to in subclause (I), (II), 
     (III), or (IV), together with all supplements to any such 
     master agreement, without regard to whether the master 
     agreement contains an agreement or transaction that is not a 
     swap agreement under this clause, except that the master 
     agreement shall be considered to be a swap agreement under 
     this clause only with respect to each agreement or 
     transaction under the master agreement that is referred to in 
     subclause (I), (II), (III), or (IV);
       ``(VI) means any security agreement or arrangement or other 
     credit enhancement related to any agreements or transactions 
     referred to in subparagraph (I), (II), (III), or (IV); and
       ``(VII) is applicable for purposes of this Act only, and 
     shall not be construed or applied so as to challenge or 
     affect the characterization, definition, or treatment of any 
     swap agreement under any other statute, regulation, or rule, 
     including the Securities Act of 1933, the Securities Exchange 
     Act of 1934, the Public Utility Holding Company Act of 1935, 
     the Trust Indenture Act of 1939, the Investment Company Act 
     of 1940, the Investment Advisers Act of 1940, the Securities 
     Investor Protection Act of 1970, the Commodity Exchange Act, 
     and the regulations promulgated by the Securities and 
     Exchange Commission or the Commodity Futures Trading 
     Commission.''.

       (g) Definition of Transfer.--Section 11(e)(8)(D)(viii) of 
     the Federal Deposit Insurance Act (12 U.S.C. 
     1821(e)(8)(D)(viii)) is amended to read as follows:
       ``(viii) Transfer.--The term `transfer' means every mode, 
     direct or indirect, absolute or conditional, voluntary or 
     involuntary, of disposing of or parting with property or with 
     an interest in property, including retention of title as a 
     security interest and foreclosure of the depository 
     institutions's equity of redemption.''.
       (h) Treatment of Qualified Financial Contracts.--Section 
     11(e)(8) of the Federal Deposit Insurance Act (12 U.S.C. 
     1821(e)(8)) is amended--
       (1) in subparagraph (A), by striking ``paragraph (10)'' and 
     inserting ``paragraphs (9) and (10)'';
       (2) in subparagraph (A)(i), by striking ``to cause the 
     termination or liquidation'' and inserting ``such person has 
     to cause the termination, liquidation, or acceleration'';
       (3) by striking clause (ii) of subparagraph (A) and 
     inserting the following:
       ``(ii) any right under any security agreement or 
     arrangement or other credit enhancement related to 1 or more 
     qualified financial contracts described in clause (i); or''; 
     and
       (4) by striking clause (ii) of subparagraph (E) and 
     inserting the following:
       ``(ii) any right under any security agreement or 
     arrangement or other credit enhancement related to 1 or more 
     qualified financial contracts described in clause (i); or''.
       (i) Avoidance of Transfers.--Section 11(e)(8)(C)(i) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(C)(i)) is 
     amended by inserting ``section 5242 of the Revised Statutes 
     (12 U.S.C. 91), or any other Federal or State law relating to 
     the avoidance of preferential or fraudulent transfers,'' 
     before ``the Corporation''.

     SEC. 1303. AUTHORITY OF THE CORPORATION WITH RESPECT TO 
                   FAILED AND FAILING INSTITUTIONS.

       (a) In General.--Section 11(e)(8) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1821(e)(8)) is amended--
       (1) in subparagraph (E), by striking ``other than paragraph 
     (12) of this subsection, subsection (d)(9)'' and inserting 
     ``other than subsections (d)(9) and (e)(10)''; and
       (2) by adding at the end the following:
       ``(F) Clarification.--No provision of law shall be 
     construed as limiting the right or power of the Corporation, 
     or authorizing any court or agency to limit or delay, in any 
     manner, the right or power of the Corporation to transfer any 
     qualified financial contract in accordance with paragraphs 
     (9) and (10) or to disaffirm or repudiate any such contract 
     in accordance with subsection (e)(1).
       ``(G) Walkaway clauses not effective.--
       ``(i) In general.--Notwithstanding the provisions of 
     subparagraphs (A) and (E), and sections 403 and 404 of the 
     Federal Deposit Insurance Corporation Improvement Act of 
     1991, no walkaway clause shall be enforceable in a qualified 
     financial contract of an insured depository institution in 
     default.
       ``(ii) Walkaway clause defined.--For purposes of this 
     subparagraph, the term `walkaway clause' means a provision in 
     a qualified financial contract that, after calculation of a 
     value of a party's position or an amount due to or from 1 of 
     the parties in accordance with its terms upon termination, 
     liquidation, or acceleration of the qualified financial 
     contract, either does not create a payment obligation of a 
     party or extinguishes a payment obligation of a party in 
     whole or in part solely because of such party's status as a 
     nondefaulting party.''.
       (b) Technical and Conforming Amendment.--Section 
     11(e)(12)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
     1821(e)(12)(A)) is amended by inserting ``or the exercise of 
     rights or powers by'' after ``the appointment of''.

     SEC. 1304. AMENDMENTS RELATING TO TRANSFERS OF QUALIFIED 
                   FINANCIAL CONTRACTS.

       (a) Transfers of Qualified Financial Contracts to Financial 
     Institutions.--Section 11(e)(9) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1821(e)(9)) is amended to read as 
     follows:
       ``(9) Transfer of qualified financial contracts.--
       ``(A) In general.--In making any transfer of assets or 
     liabilities of a depository institution in default which 
     includes any qualified financial contract, the conservator or 
     receiver for such depository institution shall either--
       ``(i) transfer to 1 financial institution, other than a 
     financial institution for which a conservator, receiver, 
     trustee in bankruptcy, or other legal custodian has been 
     appointed or which is otherwise the subject of a bankruptcy 
     or insolvency proceeding--

       ``(I) all qualified financial contracts between any person 
     or any affiliate of such person and the depository 
     institution in default;
       ``(II) all claims of such person or any affiliate of such 
     person against such depository institution under any such 
     contract (other than any claim which, under the terms of any 
     such contract, is subordinated to the

[[Page 28756]]

     claims of general unsecured creditors of such institution);
       ``(III) all claims of such depository institution against 
     such person or any affiliate of such person under any such 
     contract; and
       ``(IV) all property securing or any other credit 
     enhancement for any contract described in subclause (I) or 
     any claim described in subclause (II) or (III) under any such 
     contract; or

       ``(ii) transfer none of the qualified financial contracts, 
     claims, property, or other credit enhancement referred to in 
     clause (i) (with respect to such person and any affiliate of 
     such person).
       ``(B) Transfer to foreign bank, foreign financial 
     institution, or branch or agency of a foreign bank or 
     financial institution.--In transferring any qualified 
     financial contract and related claims and property pursuant 
     to subparagraph (A)(i), the conservator or receiver for the 
     depository institution shall not make such transfer to a 
     foreign bank, financial institution organized under the laws 
     of a foreign country, or a branch or agency of a foreign bank 
     or financial institution unless, under the law applicable to 
     such bank, financial institution, branch, or agency, to the 
     qualified financial contract, and to any netting contract, 
     any security agreement or arrangement or other credit 
     enhancement related to 1 or more qualified financial 
     contracts the contractual rights of the parties to such 
     qualified financial contracts, netting contracts, security 
     agreements, or arrangements, or other credit enhancements are 
     enforceable substantially to the same extent as permitted 
     under this section.
       ``(C) Transfer of contract subject to the rules of a 
     clearing organization.--If a conservator or receiver 
     transfers any qualified financial contract and related 
     claims, property, and credit enhancements pursuant to 
     subparagraph (A)(i) and such contract is subject to the rules 
     of a clearing organization, the clearing organization shall 
     not be required to accept the transferee as a member by 
     virtue of the transfer.
       ``(D) Definition.--For purposes of this paragraph, the term 
     `financial institution' means a broker or dealer, a 
     depository institution, a futures commission merchant, or any 
     other institution that the Corporation determines, by 
     regulation, to be a financial institution.''.
       (b) Notice to Qualified Financial Contract 
     Counterparties.--Section 11(e)(10)(A) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1821(e)(10)(A)) is amended by 
     striking the flush material immediately following clause (ii) 
     and inserting the following:
     ``the conservator or receiver shall notify any person who is 
     a party to any such contract of such transfer by 5:00 p.m. 
     (eastern time) on the business day following the date of the 
     appointment of the receiver in the case of a receivership, or 
     the business day following such transfer in the case of a 
     conservatorship.''.
       (c) Rights Against Receiver and Treatment of Bridge 
     Banks.--Section 11(e)(10) of the Federal Deposit Insurance 
     Act (12 U.S.C. 1821(e)(10)) is amended--
       (1) by redesignating subparagraph (B) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (A) the following:
       ``(B) Certain rights not enforceable.--
       ``(i) Receivership.--A person who is a party to a qualified 
     financial contract with an insured depository institution may 
     not exercise any right such person has to terminate, 
     liquidate, or net such contract under paragraph (8)(A) or 
     section 403 or 404 of the Federal Deposit Insurance 
     Corporation Improvement Act of 1991, solely by reason of or 
     incidental to the appointment of a receiver for the 
     depository institution (or the insolvency or financial 
     condition of the depository institution for which the 
     receiver has been appointed)--

       ``(I) until 5:00 p.m. (eastern time) on the business day 
     following the date of the appointment of the receiver; or
       ``(II) after the person has received notice that the 
     contract has been transferred pursuant to paragraph (9)(A).

       ``(ii) Conservatorship.--A person who is a party to a 
     qualified financial contract with an insured depository 
     institution may not exercise any right such person has to 
     terminate, liquidate, or net such contract under paragraph 
     (8)(E) or section 403 or 404 of the Federal Deposit Insurance 
     Corporation Improvement Act of 1991, solely by reason of or 
     incidental to the appointment of a conservator for the 
     depository institution (or the insolvency or financial 
     condition of the depository institution for which the 
     conservator has been appointed).
       ``(iii) Notice.--For purposes of this paragraph, the 
     Corporation as receiver or conservator of an insured 
     depository institution shall be deemed to have notified a 
     person who is a party to a qualified financial contract with 
     such depository institution if the Corporation has taken 
     steps reasonably calculated to provide notice to such person 
     by the time specified in subparagraph (A).
       ``(C) Treatment of bridge banks.--A financial institution 
     for which a conservator, receiver, trustee in bankruptcy, or 
     other legal custodian has been appointed or that is otherwise 
     the subject of a bankruptcy or insolvency proceeding for 
     purposes of subsection (e)(9) does not include--
       ``(i) a bridge bank; or
       ``(ii) a depository institution organized by the 
     Corporation, for which a conservator is appointed either--

       ``(I) immediately upon the organization of the institution; 
     or
       ``(II) at the time of a purchase and assumption transaction 
     between such institution and the Corporation as receiver for 
     a depository institution in default.''.

     SEC. 1305. AMENDMENTS RELATING TO DISAFFIRMANCE OR 
                   REPUDIATION OF QUALIFIED FINANCIAL CONTRACTS.

       Section 11(e) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(e)) is amended--
       (1) by redesignating paragraphs (11) through (15) as 
     paragraphs (12) through (16), respectively;
       (2) in paragraph (8)(C)(i), by striking ``(11)'' and 
     inserting ``(12)'';
       (3) in paragraph (8)(E), by striking ``(12)'' and inserting 
     ``(13)''; and
       (4) by inserting after paragraph (10) the following:
       ``(11) Disaffirmance or repudiation of qualified financial 
     contracts.--In exercising the right to disaffirm or repudiate 
     with respect to any qualified financial contract to which an 
     insured depository institution is a party, the conservator or 
     receiver for such institution shall either--
       ``(A) disaffirm or repudiate all qualified financial 
     contracts between--
       ``(i) any person or any affiliate of such person; and
       ``(ii) the depository institution in default; or
       ``(B) disaffirm or repudiate none of the qualified 
     financial contracts referred to in subparagraph (A) (with 
     respect to such person or any affiliate of such person).''.

     SEC. 1306. CLARIFYING AMENDMENT RELATING TO MASTER 
                   AGREEMENTS.

       Section 11(e)(8)(D)(vii) of the Federal Deposit Insurance 
     Act (12 U.S.C. 1821(e)(8)(D)(vii)) is amended to read as 
     follows:
       ``(vii) Treatment of master agreement as 1 agreement.--Any 
     master agreement for any contract or agreement described in 
     any preceding clause of this subparagraph (or any master 
     agreement for such master agreement or agreements), together 
     with all supplements to such master agreement, shall be 
     treated as a single agreement and a single qualified 
     financial contract. If a master agreement contains provisions 
     relating to agreements or transactions that are not 
     themselves qualified financial contracts, the master 
     agreement shall be deemed to be a qualified financial 
     contract only with respect to those transactions that are 
     themselves qualified financial contracts.''.

     SEC. 1307. FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT 
                   ACT OF 1991.

       (a) Definitions.--Section 402 of the Federal Deposit 
     Insurance Corporation Improvement Act of 1991 (12 U.S.C. 
     4402) is amended--
       (1) in paragraph (6)--
       (A) by redesignating subparagraphs (B) through (D) as 
     subparagraphs (C) through (E), respectively;
       (B) by inserting after subparagraph (A) the following:
       ``(B) an uninsured national bank or an uninsured State bank 
     that is a member of the Federal Reserve System, if the 
     national bank or State member bank is not eligible to make 
     application to become an insured bank under section 5 of the 
     Federal Deposit Insurance Act;''; and
       (C) by striking subparagraph (C) (as redesignated) and 
     inserting the following:
       ``(C) a branch or agency of a foreign bank, a foreign bank 
     and any branch or agency of the foreign bank, or the foreign 
     bank that established the branch or agency, as those terms 
     are defined in section 1(b) of the International Banking Act 
     of 1978;'';
       (2) in paragraph (11), by inserting before the period ``and 
     any other clearing organization with which such clearing 
     organization has a netting contract'';
       (3) in paragraph (14)(A), by striking clause (i) and 
     inserting the following:
       ``(i) means a contract or agreement between 2 or more 
     financial institutions, clearing organizations, or members 
     that provides for netting present or future payment 
     obligations or payment entitlements (including liquidation or 
     closeout values relating to such obligations or entitlements) 
     among the parties to the agreement; and''; and
       (4) by adding at the end the following:
       ``(15) Payment.--The term `payment' means a payment of 
     United States dollars, another currency, or a composite 
     currency, and a noncash delivery, including a payment or 
     delivery to liquidate an unmatured obligation.''.
       (b) Enforceability of Bilateral Netting Contracts.--Section 
     403 of the Federal Deposit Insurance Corporation Improvement 
     Act of 1991 (12 U.S.C. 4403) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) General Rule.--Notwithstanding any other provision of 
     Federal or State law (other than paragraphs (8)(E), (8)(F), 
     and (10)(B) of section 11(e) of the Federal Deposit Insurance 
     Act or any order authorized under section 5(b)(2) of the 
     Securities Investor Protection Act of 1970, the covered 
     contractual payment obligations and the covered contractual 
     payment entitlements between any

[[Page 28757]]

     2 financial institutions shall be netted in accordance with, 
     and subject to the conditions of, the terms of any applicable 
     netting contract (except as provided in section 561(b)(2) of 
     title 11, United States Code).''; and
       (2) by adding at the end the following:
       ``(f) Enforceability of Security Agreements.--The 
     provisions of any security agreement or arrangement or other 
     credit enhancement related to 1 or more netting contracts 
     between any 2 financial institutions shall be enforceable in 
     accordance with their terms (except as provided in section 
     561(b)(2) of title 11, United States Code) and shall not be 
     stayed, avoided, or otherwise limited by any State or Federal 
     law (other than paragraphs (8)(E), (8)(F), and (10)(B) of 
     section 11(e) of the Federal Deposit Insurance Act and 
     section 5(b)(2) of the Securities Investor Protection Act of 
     1970).''.
       (c) Enforceability of Clearing Organization Netting 
     Contracts.--Section 404 of the Federal Deposit Insurance 
     Corporation Improvement Act of 1991 (12 U.S.C. 4404) is 
     amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) General Rule.--Notwithstanding any other provision of 
     Federal or State law (other than paragraphs (8)(E), (8)(F), 
     and (10)(B) of section 11(e) of the Federal Deposit Insurance 
     Act or any order authorized under section 5(b)(2) of the 
     Securities Investor Protection Act of 1970) the covered 
     contractual payment obligations and the covered contractual 
     payment entitlements of a member of a clearing organization 
     to and from all other members of the clearing organization 
     shall be netted in accordance with, and subject to the 
     conditions of, the terms of any applicable netting contract 
     (except as provided in section 561(b)(2) of title 11, United 
     States Code).''; and
       (2) by adding at the end the following:
       ``(h) Enforceability of Security Agreements.--The 
     provisions of any security agreement or arrangement or other 
     credit enhancement related to 1 or more netting contracts 
     between any 2 members of a clearing organization shall be 
     enforceable in accordance with their terms (except as 
     provided in section 561(b)(2) of title 11, United States 
     Code) and shall not be stayed, avoided, or otherwise limited 
     by any State or Federal law (other than paragraphs (8)(E), 
     (8)(F), and (10)(B) of section 11(e) of the Federal Deposit 
     Insurance Act and section 5(b)(2) of the Securities Investor 
     Protection Act of 1970).''.
       (d) Enforceability of Contracts With Uninsured National 
     Banks and Uninsured Federal Branches and Agencies.--The 
     Federal Deposit Insurance Corporation Improvement Act of 1991 
     (12 U.S.C. 4401 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 408. TREATMENT OF CONTRACTS WITH UNINSURED NATIONAL 
                   BANKS AND UNINSURED FEDERAL BRANCHES AND 
                   AGENCIES.

       ``(a) In General.--Notwithstanding any other provision of 
     law, paragraphs (8), (9), (10), and (11) of section 11(e) of 
     the Federal Deposit Insurance Act shall apply to an uninsured 
     national bank or uninsured Federal branch or Federal agency, 
     except that for such purpose--
       ``(1) any reference to the `Corporation as receiver' or 
     `the receiver or the Corporation' shall refer to the receiver 
     of an uninsured national bank or uninsured Federal branch or 
     Federal agency appointed by the Comptroller of the Currency;
       ``(2) any reference to the `Corporation' (other than in 
     section 11(e)(8)(D) of that Act), the `Corporation, whether 
     acting as such or as conservator or receiver', a `receiver', 
     or a `conservator' shall refer to the receiver or conservator 
     of an uninsured national bank or uninsured Federal branch or 
     Federal agency appointed by the Comptroller of the Currency; 
     and
       ``(3) any reference to an `insured depository institution' 
     or `depository institution' shall refer to an uninsured 
     national bank or an uninsured Federal branch or Federal 
     agency.
       ``(b) Liability.--The liability of a receiver or 
     conservator of an uninsured national bank or uninsured 
     Federal branch or agency shall be determined in the same 
     manner and subject to the same limitations that apply to 
     receivers and conservators of insured depository institutions 
     under section 11(e) of the Federal Deposit Insurance Act.
       ``(c) Regulatory Authority.--
       ``(1) In general.--The Comptroller of the Currency, in 
     consultation with the Federal Deposit Insurance Corporation, 
     may promulgate regulations to implement this section.
       ``(2) Specific requirement.--In promulgating regulations to 
     implement this section, the Comptroller of the Currency shall 
     ensure that the regulations generally are consistent with the 
     regulations and policies of the Federal Deposit Insurance 
     Corporation adopted pursuant to the Federal Deposit Insurance 
     Act.
       ``(d) Definitions.--For purposes of this section, the terms 
     `Federal branch', `Federal agency', and `foreign bank' have 
     the same meanings as in section 1(b) of the International 
     Banking Act of 1978.''.

     SEC. 1308. RECORDKEEPING REQUIREMENTS.

       Section 11(e)(8) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(e)(8)) is amended by adding at the end the 
     following:
       ``(H) Recordkeeping requirements.--The Corporation, in 
     consultation with the appropriate Federal banking agencies, 
     may prescribe regulations requiring more detailed 
     recordkeeping with respect to qualified financial contracts 
     (including market valuations) by insured depository 
     institutions.''.

     SEC. 1309. EXEMPTIONS FROM CONTEMPORANEOUS EXECUTION 
                   REQUIREMENT.

       Section 13(e)(2) of the Federal Deposit Insurance Act (12 
     U.S.C. 1823(e)(2)) is amended to read as follows:
       ``(2) Exemptions from contemporaneous execution 
     requirement.--
       ``(A) In general.--An agreement described in subparagraph 
     (B) shall not be deemed to be invalid pursuant to paragraph 
     (1)(B) solely on the basis--
       ``(i) that the agreement was not executed contemporaneously 
     with the acquisition of the collateral; or
       ``(ii) of any pledge, delivery, or substitution of the 
     collateral made in accordance with the agreement.
       ``(B) Agreement described.--An agreement is described in 
     this subparagraph if it is an agreement to provide for the 
     lawful collateralization of--
       ``(i) deposits of, or other credit extension by, a Federal, 
     State, or local governmental entity, or of any depositor 
     referred to in section 11(a)(2), including an agreement to 
     provide collateral in lieu of a surety bond;
       ``(ii) securities deposited under section 345(b)(2) of 
     title 11, United States Code;
       ``(iii) extensions of credit, including an overdraft, from 
     a Federal reserve bank or Federal home loan bank; or
       ``(iv) 1 or more qualified financial contracts (as defined 
     in section 11(e)(8)(D)).''.

     SEC. 1310. SIPC STAY.

       Section 5(b)(2) of the Securities Investor Protection Act 
     of 1970 (15 U.S.C. 78eee(b)(2)) is amended by adding at the 
     end the following:
       ``(C) Exception from stay.--
       ``(i) In general.--Notwithstanding section 362 of title 11, 
     United States Code, neither the filing of an application 
     under subsection (a)(3) of this section nor any order or 
     decree obtained by SIPC from the court shall operate as a 
     stay of any contractual right of a creditor to liquidate, 
     terminate, or accelerate a securities contract, commodity 
     contract, forward contract, repurchase agreement, swap 
     agreement, or master netting agreement, each as defined in 
     title 11, United States Code, to offset or net termination 
     values, payment amounts, or other transfer obligations 
     arising under or in connection with 1 or more of such 
     contracts or agreements, or to foreclose on any cash 
     collateral pledged by the debtor, whether or not with respect 
     to 1 or more of such contracts or agreements.
       ``(ii) Stays on foreclosure.--Notwithstanding clause (i), 
     an application, order, or decree described therein may 
     operate as a stay of the foreclosure on securities collateral 
     pledged by the debtor, whether or not with respect to 1 or 
     more of such contracts or agreements, securities sold by the 
     debtor under a repurchase agreement or securities lent under 
     a securities lending agreement.
       ``(iii) Definition.--As used in this section, the term 
     `contractual right' includes--

       ``(I) a right set forth in a rule or bylaw of a national 
     securities exchange, a national securities association, or a 
     securities clearing agency;
       ``(II) a right set forth in a bylaw of a clearing 
     organization or contract market or in a resolution of the 
     governing board thereof; and
       ``(III) a right, whether or not in writing, arising under 
     common law, under law merchant, or by reason of normal 
     business practice.''.

     SEC. 1311. FEDERAL RESERVE COLLATERAL REQUIREMENTS.

       Section 16 of the Federal Reserve Act (12 U.S.C. 412) is 
     amended in the third sentence of the second undesignated 
     paragraph, by striking ``acceptances acquired under section 
     13 of this Act'' and inserting ``acceptances acquired under 
     section 10A, 10B, 13, or 13A''.

     SEC. 1312. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

       (a) Severability.--If any provision of this title or any 
     amendment made by this title, or the application of any such 
     provision or amendment to any person or circumstance, is held 
     to be unconstitutional, the remaining provisions of and 
     amendments made by this title and the application of such 
     other provisions and amendments to any person or circumstance 
     shall not be affected thereby.
       (b) Effective Date.--This title and the amendments made by 
     this title shall take effect on the date of enactment of this 
     Act.
       (c) Application of Amendments.--The amendments made by this 
     title shall apply with respect to cases commenced or 
     appointments made under any Federal or State law after the 
     date of enactment of this Act, but shall not apply with 
     respect to cases commenced or appointments made under any 
     Federal or State law before the date of enactment of this 
     Act.
                                 ______
                                 

                DOMENICI (AND OTHERS) AMENDMENT NO. 2547

  (Ordered to lie on the table.)
  Mr. DOMENICI (for himself, Mr. Abraham, and Mr. Santorum) submitted 
an amendment intended to be proposed by them to the bill, S. 625, 
supra; as follows:


[[Page 28758]]

       At the appropriate place, insert the following:
        TITLE __--AMENDMENTS TO FAIR LABOR STANDARDS ACT OF 1938

     SEC. __01. MINIMUM WAGE.

       Section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 206(a)(1)) is amended to read as follows:
       ``(1) except as otherwise provided in this section, not 
     less than--
       ``(A) $5.15 an hour beginning September 1, 1997,
       ``(B) $5.50 an hour during the year beginning March 1, 
     2000,
       ``(C) $5.85 an hour during the year beginning March 1, 
     2001, and
       ``(D) $6.15 an hour during the year beginning March 1, 
     2002.''.

     SEC. __02. REGULAR RATE FOR OVERTIME PURPOSES.

       Section 7(e) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 207(e)) is amended--
       (1) by inserting before the semicolon at the end of 
     paragraph (3) the following: ``; or (d) the payments are made 
     to reward an employee or group of employees for meeting or 
     exceeding the productivity, quality, efficiency, or sales 
     goals as specified in a gainsharing, incentive bonus, 
     commission, or performance contingent bonus plan''; and
       (2) by inserting after and below paragraph (7) the 
     following:

     ``A plan described in paragraph (3)(d) shall be in writing 
     and made available to employees, provide that the amount of 
     the payments to be made under the plan be based upon a 
     formula that is stated in the plan, and be established and 
     maintained in good faith for the purpose of distributing to 
     employees additional remuneration over and above the wages 
     and salaries that are not dependent upon the existence of 
     such plan or payments made pursuant to such plan.''.
                          TITLE __--TAX RELIEF

     SEC. __00. AMENDMENT OF 1986 CODE.

       Except as otherwise expressly provided, whenever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Internal Revenue Code of 1986.
                 Subtitle A--Small Business Tax Relief

     SEC. __01. INCREASE IN EXPENSING LIMITATION TO $30,000.

       (a) In General.--Paragraph (1) of section 179(b) (relating 
     to limitations) is amended to read as follows:
       ``(1) Dollar limitation.--The aggregate cost which may be 
     taken into account under subsection (a) for any taxable year 
     shall not exceed $30,000.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. __02. REPEAL OF TEMPORARY UNEMPLOYMENT TAX.

       Section 3301 (relating to rate of unemployment tax) is 
     amended--
       (1) by striking ``2007'' in paragraph (1) and inserting 
     ``2000''; and
       (2) by striking ``2008'' in paragraph (2) and inserting 
     ``2001''.

     SEC. __03. FULL DEDUCTION OF HEALTH INSURANCE COSTS FOR SELF-
                   EMPLOYED INDIVIDUALS.

       (a) In General.--Section 162(l)(1) (relating to allowance 
     of deduction) is amended to read as follows:
       ``(1) Allowance of deduction.--In the case of an individual 
     who is an employee within the meaning of section 401(c)(1), 
     there shall be allowed as a deduction under this section an 
     amount equal to the amount paid during the taxable year for 
     insurance which constitutes medical care for the taxpayer and 
     the taxpayer's spouse and dependents.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1999.

     SEC. __04. PERMANENT EXTENSION OF WORK OPPORTUNITY TAX 
                   CREDIT.

       (a) In General.--Section 51(c) (defining wages) is amended 
     by striking paragraph (4).
       (b) Effective Date.--The amendment made by this section 
     shall apply to individuals who begin work for the employer 
     after June 30, 1999.

     SEC. __05. SMALL BUSINESSES ALLOWED INCREASED DEDUCTION FOR 
                   MEAL AND ENTERTAINMENT EXPENSES.

       (a) In General.--Subsection (n) of section 274 (relating to 
     only 50 percent of meal and entertainment expenses allowed as 
     deduction) is amended by adding at the end the following:
       ``(4) Special rule for small businesses.--
       ``(A) In general.--In the case of any taxpayer which is a 
     small business, paragraph (1) shall be applied by 
     substituting `the applicable percentage' for `50 percent'. 
     For purposes of the preceding sentence, the term `applicable 
     percentage' means 55 percent in the case of taxable years 
     beginning in 2001, increased (but not above 80 percent) by 5 
     percentage points for each succeeding calendar year after 
     2001 with respect to taxable years beginning in each such 
     calendar year.
       ``(B) Small business.--For purposes of this paragraph, the 
     term `small business' means, with respect to expenses paid or 
     incurred during any taxable year--
       ``(i) any C corporation which meets the requirements of 
     section 55(e)(1) for such year, and
       ``(ii) any S corporation, partnership, or sole 
     proprietorship which would meet such requirements if it were 
     a C corporation.''
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2000.
     Subtitle B--Deduction for Health and Long-Term Care Insurance

     SEC. __11. DEDUCTION FOR HEALTH AND LONG-TERM CARE INSURANCE 
                   COSTS OF INDIVIDUALS NOT PARTICIPATING IN 
                   EMPLOYER-SUBSIDIZED HEALTH PLANS.

       (a) In General.--Part VII of subchapter B of chapter 1 is 
     amended by redesignating section 222 as section 223 and by 
     inserting after section 221 the following new section:

     ``SEC. 222. HEALTH AND LONG-TERM CARE INSURANCE COSTS.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a deduction an amount equal to the 
     applicable percentage of the amount paid during the taxable 
     year for insurance which constitutes medical care for the 
     taxpayer and the taxpayer's spouse and dependents.
       ``(b) Applicable Percentage.--For purposes of subsection 
     (a), the applicable percentage shall be determined in 
     accordance with the following table:

    ``For taxable years                                  The applicable
      beginning in                                       dollar amount:
      calendar year:
      2002, 2003, and 2004.........................................25  
      2005.........................................................35  
      2006.........................................................65  
      2007 and thereafter........................................100.  

       ``(c) Limitation Based on Other Coverage.--
       ``(1) Coverage under certain subsidized employer plans.--
       ``(A) In general.--Subsection (a) shall not apply to any 
     taxpayer for any calendar month for which the taxpayer 
     participates in any health plan maintained by any employer of 
     the taxpayer or of the spouse of the taxpayer if 50 percent 
     or more of the cost of coverage under such plan (determined 
     under section 4980B and without regard to payments made with 
     respect to any coverage described in subsection (e)) is paid 
     or incurred by the employer.
       ``(B) Employer contributions to cafeteria plans, flexible 
     spending arrangements, and medical savings accounts.--
     Employer contributions to a cafeteria plan, a flexible 
     spending or similar arrangement, or a medical savings account 
     which are excluded from gross income under section 106 shall 
     be treated for purposes of subparagraph (A) as paid by the 
     employer.
       ``(C) Aggregation of plans of employer.--A health plan 
     which is not otherwise described in subparagraph (A) shall be 
     treated as described in such subparagraph if such plan would 
     be so described if all health plans of persons treated as a 
     single employer under subsection (b), (c), (m), or (o) of 
     section 414 were treated as one health plan.
       ``(D) Separate application to health insurance and long-
     term care insurance.--Subparagraphs (A) and (C) shall be 
     applied separately with respect to--
       ``(i) plans which include primarily coverage for qualified 
     long-term care services or are qualified long-term care 
     insurance contracts, and
       ``(ii) plans which do not include such coverage and are not 
     such contracts.
       ``(2) Coverage under certain federal programs.--
       ``(A) In general.--Subsection (a) shall not apply to any 
     amount paid for any coverage for an individual for any 
     calendar month if, as of the first day of such month, the 
     individual is covered under any medical care program 
     described in--
       ``(i) title XVIII, XIX, or XXI of the Social Security Act,
       ``(ii) chapter 55 of title 10, United States Code,
       ``(iii) chapter 17 of title 38, United States Code,
       ``(iv) chapter 89 of title 5, United States Code, or
       ``(v) the Indian Health Care Improvement Act.
       ``(B) Exceptions.--
       ``(i) Qualified long-term care.--Subparagraph (A) shall not 
     apply to amounts paid for coverage under a qualified long-
     term care insurance contract.
       ``(ii) Continuation coverage of fehbp.--Subparagraph 
     (A)(iv) shall not apply to coverage which is comparable to 
     continuation coverage under section 4980B.
       ``(d) Long-Term Care Deduction Limited to Qualified Long-
     Term Care Insurance Contracts.--In the case of a qualified 
     long-term care insurance contract, only eligible long-term 
     care premiums (as defined in section 213(d)(10)) may be taken 
     into account under subsection (a).
       ``(e) Deduction Not Available for Payment of Ancillary 
     Coverage Premiums.--Any amount paid as a premium for 
     insurance which provides for--
       ``(1) coverage for accidents, disability, dental care, 
     vision care, or a specified illness, or
       ``(2) making payments of a fixed amount per day (or other 
     period) by reason of being hospitalized.

     shall not be taken into account under subsection (a).
       ``(f ) Special Rules.--

[[Page 28759]]

       ``(1) Coordination with deduction for health insurance 
     costs of self-employed individuals.--The amount taken into 
     account by the taxpayer in computing the deduction under 
     section 162(l) shall not be taken into account under this 
     section.
       ``(2) Coordination with medical expense deduction.--The 
     amount taken into account by the taxpayer in computing the 
     deduction under this section shall not be taken into account 
     under section 213.
       ``(g) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to carry out this section, 
     including regulations requiring employers to report to their 
     employees and the Secretary such information as the Secretary 
     determines to be appropriate.''.
       (b) Deduction Allowed Whether or Not Taxpayer Itemizes 
     Other Deductions.--Subsection (a) of section 62 is amended by 
     inserting after paragraph (17) the following new item:
       ``(18) Health and long-term care insurance costs.--The 
     deduction allowed by section 222.''.
       (c) Clerical Amendment.--The table of sections for part VII 
     of subchapter B of chapter 1 is amended by striking the last 
     item and inserting the following new items:

            ``Sec. 222. Health and long-term care insurance costs.
                                   ``Sec. 223. Cross reference.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.
                     Subtitle C--Pension Tax Relief

                       PART I--EXPANDING COVERAGE

     SEC. __21. INCREASE IN BENEFIT AND CONTRIBUTION LIMITS.

       (a) Defined Benefit Plans.--
       (1) Dollar limit.--
       (A) Subparagraph (A) of section 415(b)(1) (relating to 
     limitation for defined benefit plans) is amended by striking 
     ``$90,000'' and inserting ``$160,000''.
       (B) Subparagraphs (C) and (D) of section 415(b)(2) are each 
     amended by striking ``$90,000'' each place it appears in the 
     headings and the text and inserting ``$160,000''.
       (C) Paragraph (7) of section 415(b) (relating to benefits 
     under certain collectively bargained plans) is amended by 
     striking ``the greater of $68,212 or one-half the amount 
     otherwise applicable for such year under paragraph (1)(A) for 
     `$90,000' '' and inserting ``one-half the amount otherwise 
     applicable for such year under paragraph (1)(A) for 
     `$160,000' ''.
       (2) Limit reduced when benefit begins before age 62.--
     Subparagraph (C) of section 415(b)(2) is amended by striking 
     ``the social security retirement age'' each place it appears 
     in the heading and text and inserting ``age 62''.
       (3) Limit increased when benefit begins after age 65.--
     Subparagraph (D) of section 415(b)(2) is amended by striking 
     ``the social security retirement age'' each place it appears 
     in the heading and text and inserting ``age 65''.
       (4) Cost-of-living adjustments.--Subsection (d) of section 
     415 (related to cost-of-living adjustments) is amended--
       (A) by striking ``$90,000'' in paragraph (1)(A) and 
     inserting ``$160,000'', and
       (B) in paragraph (3)(A)--
       (i) by striking ``$90,000'' in the heading and inserting 
     ``$160,000'', and
       (ii) by striking ``October 1, 1986'' and inserting ``July 
     1, 2000''.
       (5) Conforming amendment.--Section 415(b)(2) is amended by 
     striking subparagraph (F).
       (b) Defined Contribution Plans.--
       (1) Dollar limit.--Subparagraph (A) of section 415(c)(1) 
     (relating to limitation for defined contribution plans) is 
     amended by striking ``$30,000'' and inserting ``$40,000''.
       (2) Cost-of-living adjustments.--Subsection (d) of section 
     415 (related to cost-of-living adjustments) is amended--
       (A) by striking ``$30,000'' in paragraph (1)(C) and 
     inserting ``$40,000'', and
       (B) in paragraph (3)(D)--
       (i) by striking ``$30,000'' in the heading and inserting 
     ``$40,000'', and
       (ii) by striking ``October 1, 1993'' and inserting ``July 
     1, 2000''.
       (c) Qualified Trusts.--
       (1) Compensation limit.--Sections 401(a)(17), 404(l), 
     408(k), and 505(b)(7) are each amended by striking 
     ``$150,000'' each place it appears and inserting 
     ``$200,000''.
       (2) Base period and rounding of cost-of-living 
     adjustment.--Subparagraph (B) of section 401(a)(17) is 
     amended--
       (A) by striking ``October 1, 1993'' and inserting ``July 1, 
     2000'', and
       (B) by striking ``$10,000'' both places it appears and 
     inserting ``$5,000''.
       (d) Elective Deferrals.--
       (1) In general.--Paragraph (1) of section 402(g) (relating 
     to limitation on exclusion for elective deferrals) is amended 
     to read as follows:
       ``(1) In general.--
       ``(A) Limitation.--Notwithstanding subsections (e)(3) and 
     (h)(1)(B), the elective deferrals of any individual for any 
     taxable year shall be included in such individual's gross 
     income to the extent the amount of such deferrals for the 
     taxable year exceeds the applicable dollar amount.
       ``(B) Applicable dollar amount.--For purposes of 
     subparagraph (A), the applicable dollar amount shall be the 
     amount determined in accordance with the following table:

    ``For taxable years                                  The applicable
      beginning in                                       dollar amount:
      calendar year:
      2001.....................................................$11,000 
      2002.....................................................$12,000 
      2003.....................................................$13,000 
      2004.....................................................$14,000 
      2005 or thereafter....................................$15,000.''.

       (2) Cost-of-living adjustment.--Paragraph (5) of section 
     402(g) is amended to read as follows:
       ``(5) Cost-of-living adjustment.--In the case of taxable 
     years beginning after December 31, 2005, the Secretary shall 
     adjust the $15,000 amount under paragraph (1)(B) at the same 
     time and in the same manner as under section 415(d), except 
     that the base period shall be the calendar quarter beginning 
     July 1, 2004, and any increase under this paragraph which is 
     not a multiple of $500 shall be rounded to the next lowest 
     multiple of $500.''.
       (3) Conforming amendments.--
       (A) Section 402(g) (relating to limitation on exclusion for 
     elective deferrals), as amended by paragraphs (1) and (2), is 
     further amended by striking paragraph (4) and redesignating 
     paragraphs (5), (6), (7), (8), and (9) as paragraphs (4), 
     (5), (6), (7), and (8), respectively.
       (B) Paragraph (2) of section 457(c) is amended by striking 
     ``402(g)(8)(A)(iii)'' and inserting ``402(g)(7)(A)(iii)''.
       (C) Clause (iii) of section 501(c)(18)(D) is amended by 
     striking ``(other than paragraph (4) thereof)''.
       (e) Deferred Compensation Plans of State and Local 
     Governments and Tax-Exempt Organizations.--
       (1) In general.--Section 457 (relating to deferred 
     compensation plans of State and local governments and tax-
     exempt organizations) is amended--
       (A) in subsections (b)(2)(A) and (c)(1) by striking 
     ``$7,500'' each place it appears and inserting ``the 
     applicable dollar amount'', and
       (B) in subsection (b)(3)(A) by striking ``$15,000'' and 
     inserting ``twice the dollar amount in effect under 
     subsection (b)(2)(A)''.
       (2) Applicable dollar amount; cost-of-living adjustment.--
     Paragraph (15) of section 457(e) is amended to read as 
     follows:
       ``(15) Applicable dollar amount.--
       ``(A) In general.--The applicable dollar amount shall be 
     the amount determined in accordance with the following table:

    ``For taxable years                                  The applicable
      beginning in                                       dollar amount:
      calendar year:
      2001.....................................................$11,000 
      2002.....................................................$12,000 
      2003.....................................................$13,000 
      2004.....................................................$14,000 
      2005 or thereafter.......................................$15,000.

       ``(B) Cost-of-living adjustments.--In the case of taxable 
     years beginning after December 31, 2005, the Secretary shall 
     adjust the $15,000 amount specified in the table in 
     subparagraph (A) at the same time and in the same manner as 
     under section 415(d), except that the base period shall be 
     the calendar quarter beginning July 1, 2004, and any increase 
     under this paragraph which is not a multiple of $500 shall be 
     rounded to the next lowest multiple of $500.''.
       (f ) Simple Retirement Accounts.--
       (1) Limitation.--Clause (ii) of section 408(p)(2)(A) 
     (relating to general rule for qualified salary reduction 
     arrangement) is amended by striking ``$6,000'' and inserting 
     ``the applicable dollar amount''.
       (2) Applicable dollar amount.--Subparagraph (E) of 
     408(p)(2) is amended to read as follows:
       ``(E) Applicable dollar amount; cost-of-living 
     adjustment.--
       ``(i) In general.--For purposes of subparagraph (A)(ii), 
     the applicable dollar amount shall be the amount determined 
     in accordance with the following table:

    ``For taxable years                                  The applicable
      beginning in                                       dollar amount:
      calendar year:
          2001..................................................$7,000 
          2002..................................................$8,000 
          2003..................................................$9,000 
          2004 or thereafter...................................$10,000.

       ``(ii) Cost-of-living adjustment.--In the case of a year 
     beginning after December 31, 2004, the Secretary shall adjust 
     the $10,000 amount under clause (i) at the same time and in 
     the same manner as under section 415(d), except that the base 
     period taken into account shall be the calendar quarter 
     beginning July 1, 2003, and any increase under this 
     subparagraph which is not a multiple of $500 shall be rounded 
     to the next lower multiple of $500.''.
       (3) Conforming amendments.--
       (A) Clause (I) of section 401(k)(11)(B)(i) is amended by 
     striking ``$6,000'' and inserting ``the amount in effect 
     under section 408(p)(2)(A)(ii)''.
       (B) Section 401(k)(11) is amended by striking subparagraph 
     (E).
       (g) Rounding Rule Relating to Defined Benefit Plans and 
     Defined Contribution Plans.--Paragraph (4) of section 415(d) 
     is amended to read as follows:
       ``(4) Rounding.--
       ``(A) $160,000 amount.--Any increase under subparagraph (A) 
     of paragraph (1) which is

[[Page 28760]]

     not a multiple of $5,000 shall be rounded to the next lowest 
     multiple of $5,000.
       ``(B) $40,000 amount.--Any increase under subparagraph (C) 
     of paragraph (1) which is not a multiple of $1,000 shall be 
     rounded to the next lowest multiple of $1,000.''.
       (h) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. __22. PLAN LOANS FOR SUBCHAPTER S OWNERS, PARTNERS, AND 
                   SOLE PROPRIETORS.

       (a) Amendment to 1986 Code.--Subparagraph (B) of section 
     4975(f )(6) (relating to exemptions not to apply to certain 
     transactions) is amended by adding at the end the following 
     new clause:
       ``(iii) Loan exception.--For purposes of subparagraph 
     (A)(i), the term `owner-employee' shall only include a person 
     described in subclause (II) or (III) of clause (i).''.
       (b) Amendment to ERISA.--Section 408(d)(2) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1108(d)(2)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(C) For purposes of paragraph (1)(A), the term `owner-
     employee' shall only include a person described in clause 
     (ii) or (iii) of subparagraph (A).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to loans made after December 31, 2000.

     SEC. __23. MODIFICATION OF TOP-HEAVY RULES.

       (a) Simplification of Definition of Key Employee.--
       (1) In general.--Section 416(i)(1)(A) (defining key 
     employee) is amended--
       (A) by striking ``or any of the 4 preceding plan years'' in 
     the matter preceding clause (i),
       (B) by striking clause (i) and inserting the following:
       ``(i) an officer of the employer having an annual 
     compensation greater than $150,000,'',
       (C) by striking clause (ii) and redesignating clauses (iii) 
     and (iv) as clauses (ii) and (iii), respectively, and
       (D) by striking the second sentence in the matter following 
     clause (iii), as redesignated by subparagraph (C).
       (2) Conforming amendment.--Section 416(i)(1)(B)(iii) is 
     amended by striking ``and subparagraph (A)(ii)''.
       (b) Matching Contributions Taken Into Account for Minimum 
     Contribution Requirements.--Section 416(c)(2)(A) (relating to 
     defined contribution plans) is amended by adding at the end 
     the following: ``Employer matching contributions (as defined 
     in section 401(m)(4)(A)) shall be taken into account for 
     purposes of this subparagraph.''.
       (c) Distributions During Last Year Before Determination 
     Date Taken Into Account.--
       (1) In general.--Paragraph (3) of section 416(g) is amended 
     to read as follows:
       ``(3) Distributions during last year before determination 
     date taken into account.--
       ``(A) In general.--For purposes of determining--
       ``(i) the present value of the cumulative accrued benefit 
     for any employee, or
       ``(ii) the amount of the account of any employee,

     such present value or amount shall be increased by the 
     aggregate distributions made with respect to such employee 
     under the plan during the 1-year period ending on the 
     determination date. The preceding sentence shall also apply 
     to distributions under a terminated plan which if it had not 
     been terminated would have been required to be included in an 
     aggregation group.
       ``(B) 5-year period in case of in-service distribution.--In 
     the case of any distribution made for a reason other than 
     separation from service, death, or disability, subparagraph 
     (A) shall be applied by substituting `5-year period' for `1-
     year period'.''.
       (2) Benefits not taken into account.--Subparagraph (E) of 
     section 416(g)(4) is amended--
       (A) by striking ``last 5 years'' in the heading and 
     inserting ``last year before determination date'', and
       (B) by striking ``5-year period'' and inserting ``1-year 
     period''.
       (d) Definition of Top-Heavy Plans.--Paragraph (4) of 
     section 416(g) (relating to other special rules for top-heavy 
     plans) is amended by adding at the end the following new 
     subparagraph:
       ``(H) Cash or deferred arrangements using alternative 
     methods of meeting nondiscrimination requirements.--The term 
     `top-heavy plan' shall not include a plan which consists 
     solely of--
       ``(i) a cash or deferred arrangement which meets the 
     requirements of section 401(k)(12), and
       ``(ii) matching contributions with respect to which the 
     requirements of section 401(m)(11) are met.

     If, but for this subparagraph, a plan would be treated as a 
     top-heavy plan because it is a member of an aggregation group 
     which is a top-heavy group, contributions under the plan may 
     be taken into account in determining whether any other plan 
     in the group meets the requirements of subsection (c)(2).''.
       (e) Frozen Plan Exempt From Minimum Benefit Requirement.--
     Subparagraph (C) of section 416(c)(1) (relating to defined 
     benefit plans) is amended--
       (A) by striking ``clause (ii)'' in clause (i) and inserting 
     ``clause (ii) or (iii)'', and
       (B) by adding at the end the following:
       ``(iii) Exception for frozen plan.--For purposes of 
     determining an employee's years of service with the employer, 
     any service with the employer shall be disregarded to the 
     extent that such service occurs during a plan year when the 
     plan benefits (within the meaning of section 410(b)) no 
     employee or former employee.''.
       (f ) Elimination of Family Attribution.--Section 
     416(i)(1)(B) (defining 5-percent owner) is amended by adding 
     at the end the following new clause:
       ``(iv) Family attribution disregarded.--Solely for purposes 
     of applying this paragraph (and not for purposes of any 
     provision of this title which incorporates by reference the 
     definition of a key employee or 5-percent owner under this 
     paragraph), section 318 shall be applied without regard to 
     subsection (a)(1) thereof in determining whether any person 
     is a 5-percent owner.''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. __24. ELECTIVE DEFERRALS NOT TAKEN INTO ACCOUNT FOR 
                   PURPOSES OF DEDUCTION LIMITS.

       (a) In General.--Section 404 (relating to deduction for 
     contributions of an employer to an employees' trust or 
     annuity plan and compensation under a deferred payment plan) 
     is amended by adding at the end the following new subsection:
       ``(n) Elective Deferrals Not Taken Into Account for 
     Purposes of Deduction Limits.--Elective deferrals (as defined 
     in section 402(g)(3)) shall not be subject to any limitation 
     contained in paragraph (3), (7), or (9) of subsection (a), 
     and such elective deferrals shall not be taken into account 
     in applying any such limitation to any other 
     contributions.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. __25. REPEAL OF COORDINATION REQUIREMENTS FOR DEFERRED 
                   COMPENSATION PLANS OF STATE AND LOCAL 
                   GOVERNMENTS AND TAX-EXEMPT ORGANIZATIONS.

       (a) In General.--Subsection (c) of section 457 (relating to 
     deferred compensation plans of State and local governments 
     and tax-exempt organizations), as amended by section __21, is 
     amended to read as follows:
       ``(c) Limitation.--The maximum amount of the compensation 
     of any one individual which may be deferred under subsection 
     (a) during any taxable year shall not exceed the amount in 
     effect under subsection (b)(2)(A) (as modified by any 
     adjustment provided under subsection (b)(3)).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to years beginning after December 31, 2000.

     SEC. __26. ELIMINATION OF USER FEE FOR REQUESTS TO IRS 
                   REGARDING PENSION PLANS.

       (a) Elimination of Certain User Fees.--The Secretary of the 
     Treasury or the Secretary's delegate shall not require 
     payment of user fees under the program established under 
     section 7527 of the Internal Revenue Code of 1986 for 
     requests to the Internal Revenue Service for determination 
     letters with respect to the qualified status of a pension 
     benefit plan maintained solely by one or more eligible 
     employers or any trust which is part of the plan. The 
     preceding sentence shall not apply to any request--
       (1) made after the 5th plan year the pension benefit plan 
     is in existence, or
       (2) made by the sponsor of any prototype or similar plan 
     which the sponsor intends to market to participating 
     employers.
       (b) Pension Benefit Plan.--For purposes of this section, 
     the term ``pension benefit plan'' means a pension, profit-
     sharing, stock bonus, annuity, or employee stock ownership 
     plan.
       (c) Eligible Employer.--For purposes of this section, the 
     term ``eligible employer'' has the same meaning given such 
     term in section 408(p)(2)(C)(i)(I) of the Internal Revenue 
     Code of 1986. The determination of whether an employer is an 
     eligible employer under this section shall be made as of the 
     date of the request described in subsection (a).
       (d) Effective Date.--The provisions of this section shall 
     apply with respect to requests made after December 31, 2000.

     SEC. __27. DEDUCTION LIMITS.

       (a) In General.--Section 404(a) (relating to general rule) 
     is amended by adding at the end the following:
       ``(12) Definition of compensation.--For purposes of 
     paragraphs (3), (7), (8), and (9), the term `compensation' 
     shall include amounts treated as participant's compensation 
     under subparagraph (C) or (D) of section 415(c)(3).''.
       (b) Conforming Amendment.--Subparagraph (B) of section 
     404(a)(3) is amended by striking the last sentence thereof.
       (c) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.

[[Page 28761]]



     SEC. __28. OPTION TO TREAT ELECTIVE DEFERRALS AS AFTER-TAX 
                   CONTRIBUTIONS.

       (a) In General.--Subpart A of part I of subchapter D of 
     chapter 1 (relating to deferred compensation, etc.) is 
     amended by inserting after section 402 the following new 
     section:

     ``SEC. 402A. OPTIONAL TREATMENT OF ELECTIVE DEFERRALS AS PLUS 
                   CONTRIBUTIONS.

       ``(a) General Rule.--If an applicable retirement plan 
     includes a qualified plus contribution program--
       ``(1) any designated plus contribution made by an employee 
     pursuant to the program shall be treated as an elective 
     deferral for purposes of this chapter, except that such 
     contribution shall not be excludable from gross income, and
       ``(2) such plan (and any arrangement which is part of such 
     plan) shall not be treated as failing to meet any requirement 
     of this chapter solely by reason of including such program.
       ``(b) Qualified Plus Contribution Program.--For purposes of 
     this section--
       ``(1) In general.--The term `qualified plus contribution 
     program' means a program under which an employee may elect to 
     make designated plus contributions in lieu of all or a 
     portion of elective deferrals the employee is otherwise 
     eligible to make under the applicable retirement plan.
       ``(2) Separate accounting required.--A program shall not be 
     treated as a qualified plus contribution program unless the 
     applicable retirement plan--
       ``(A) establishes separate accounts (`designated plus 
     accounts') for the designated plus contributions of each 
     employee and any earnings properly allocable to the 
     contributions, and
       ``(B) maintains separate recordkeeping with respect to each 
     account.
       ``(c) Definitions and Rules Relating to Designated Plus 
     Contributions.--For purposes of this section--
       ``(1) Designated plus contribution.--The term `designated 
     plus contribution' means any elective deferral which--
       ``(A) is excludable from gross income of an employee 
     without regard to this section, and
       ``(B) the employee designates (at such time and in such 
     manner as the Secretary may prescribe) as not being so 
     excludable.
       ``(2) Designation limits.--The amount of elective deferrals 
     which an employee may designate under paragraph (1) shall not 
     exceed the excess (if any) of--
       ``(A) the maximum amount of elective deferrals excludable 
     from gross income of the employee for the taxable year 
     (without regard to this section), over
       ``(B) the aggregate amount of elective deferrals of the 
     employee for the taxable year which the employee does not 
     designate under paragraph (1).
       ``(3) Rollover contributions.--
       ``(A) In general.--A rollover contribution of any payment 
     or distribution from a designated plus account which is 
     otherwise allowable under this chapter may be made only if 
     the contribution is to--
       ``(i) another designated plus account of the individual 
     from whose account the payment or distribution was made, or
       ``(ii) a Roth IRA of such individual.
       ``(B) Coordination with limit.--Any rollover contribution 
     to a designated plus account under subparagraph (A) shall not 
     be taken into account for purposes of paragraph (1).
       ``(d) Distribution Rules.--For purposes of this title--
       ``(1) Exclusion.--Any qualified distribution from a 
     designated plus account shall not be includible in gross 
     income.
       ``(2) Qualified distribution.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified distribution' has 
     the meaning given such term by section 408A(d)(2)(A) (without 
     regard to clause (iv) thereof).
       ``(B) Distributions within nonexclusion period.--A payment 
     or distribution from a designated plus account shall not be 
     treated as a qualified distribution if such payment or 
     distribution is made within the 5-taxable-year period 
     beginning with the earlier of--
       ``(i) the first taxable year for which the individual made 
     a designated plus contribution to any designated plus account 
     established for such individual under the same applicable 
     retirement plan, or
       ``(ii) if a rollover contribution was made to such 
     designated plus account from a designated plus account 
     previously established for such individual under another 
     applicable retirement plan, the first taxable year for which 
     the individual made a designated plus contribution to such 
     previously established account.
       ``(C) Distributions of excess deferrals and earnings.--The 
     term `qualified distribution' shall not include any 
     distribution of any excess deferral under section 402(g)(2) 
     and any income on the excess deferral.
       ``(3) Aggregation rules.--Section 72 shall be applied 
     separately with respect to distributions and payments from a 
     designated plus account and other distributions and payments 
     from the plan.
       ``(e) Other Definitions.--For purposes of this section--
       ``(1) Applicable retirement plan.--The term `applicable 
     retirement plan' means--
       ``(A) an employees' trust described in section 401(a) which 
     is exempt from tax under section 501(a), and
       ``(B) a plan under which amounts are contributed by an 
     individual's employer for an annuity contract described in 
     section 403(b).
       ``(2) Elective deferral.--The term `elective deferral' 
     means any elective deferral described in subparagraph (A) or 
     (C) of section 402(g)(3).''.
       (b) Excess Deferrals.--Section 402(g) (relating to 
     limitation on exclusion for elective deferrals) is amended--
       (1) by adding at the end of paragraph (1) the following new 
     sentence: ``The preceding sentence shall not apply to so much 
     of such excess as does not exceed the designated plus 
     contributions of the individual for the taxable year.'', and
       (2) by inserting ``(or would be included but for the last 
     sentence thereof)'' after ``paragraph (1)'' in paragraph 
     (2)(A).
       (c) Rollovers.--Subparagraph (B) of section 402(c)(8) is 
     amended by adding at the end the following:

     ``If any portion of an eligible rollover distribution is 
     attributable to payments or distributions from a designated 
     plus account (as defined in section 402A), an eligible 
     retirement plan with respect to such portion shall include 
     only another designated plus account and a Roth IRA.''.
       (d) Reporting Requirements.--
       (1) W-2 information.--Section 6051(a)(8) is amended by 
     inserting ``, including the amount of designated plus 
     contributions (as defined in section 402A)'' before the comma 
     at the end.
       (2) Information.--Section 6047 is amended by redesignating 
     subsection (f ) as subsection (g) and by inserting after 
     subsection (e) the following new subsection:
       ``(f ) Designated Plus Contributions.--The Secretary shall 
     require the plan administrator of each applicable retirement 
     plan (as defined in section 402A) to make such returns and 
     reports regarding designated plus contributions (as so 
     defined) to the Secretary, participants and beneficiaries of 
     the plan, and such other persons as the Secretary may 
     prescribe.''.
       (e) Conforming Amendments.--
       (1) Section 408A(e) is amended by adding after the first 
     sentence the following new sentence: ``Such term includes a 
     rollover contribution described in section 402A(c)(3)(A).''.
       (2) The table of sections for subpart A of part I of 
     subchapter D of chapter 1 is amended by inserting after the 
     item relating to section 402 the following new item:

``Sec. 402A. Optional treatment of elective deferrals as plus 
              contributions.''.

       (f ) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

                 PART II--ENHANCING FAIRNESS FOR WOMEN

     SEC. __31. CATCHUP CONTRIBUTIONS FOR INDIVIDUALS AGE 50 OR 
                   OVER.

       (a) In General.--Section 414 (relating to definitions and 
     special rules) is amended by adding at the end the following 
     new subsection:
       ``(v) Catchup Contributions for Individuals Age 50 or 
     Over.--
       ``(1) In general.--An applicable employer plan shall not be 
     treated as failing to meet any requirement of this title 
     solely because the plan permits an eligible participant to 
     make additional elective deferrals in any plan year.
       ``(2) Limitation on amount of additional deferrals.--
       ``(A) In general.--A plan shall not permit additional 
     elective deferrals under paragraph (1) for any year in an 
     amount greater than the lesser of--
       ``(i) the applicable percentage of the applicable dollar 
     amount for such elective deferrals for such year, or
       ``(ii) the excess (if any) of--

       ``(I) the participant's compensation for the year, over
       ``(II) any other elective deferrals of the participant for 
     such year which are made without regard to this subsection.

       ``(B) Applicable percentage.--For purposes of this 
     paragraph, the applicable percentage shall be determined in 
     accordance with the following table:

``For taxable years                                      The applicable
beginning in:                                            percentage is:
2001.........................................................10 percent
2002.........................................................20 percent
2003.........................................................30 percent
2004.........................................................40 percent
2005 and thereafter.........................................50 percent.

       ``(3) Treatment of contributions.--In the case of any 
     contribution to a plan under paragraph (1)--
       ``(A) such contribution shall not, with respect to the year 
     in which the contribution is made--
       ``(i) be subject to any otherwise applicable limitation 
     contained in section 402(g), 402(h), 403(b), 404(a), 404(h), 
     408, 415, or 457, or
       ``(ii) be taken into account in applying such limitations 
     to other contributions or benefits under such plan or any 
     other such plan, and
       ``(B) such plan shall not be treated as failing to meet the 
     requirements of section 401(a)(4), 401(a)(26), 401(k)(3), 
     401(k)(11),

[[Page 28762]]

     401(k)(12), 401(m), 403(b)(12), 408(k), 408(p), 408B, 410(b), 
     or 416 by reason of the making of (or the right to make) such 
     contribution.
       ``(4) Eligible participant.--For purposes of this 
     subsection, the term `eligible participant' means, with 
     respect to any plan year, a participant in a plan--
       ``(A) who has attained the age of 50 before the close of 
     the plan year, and
       ``(B) with respect to whom no other elective deferrals may 
     (without regard to this subsection) be made to the plan for 
     the plan year by reason of the application of any limitation 
     or other restriction described in paragraph (3) or contained 
     in the terms of the plan.
       ``(5) Other definitions and rules.--For purposes of this 
     subsection--
       ``(A) Applicable dollar amount.--The term `applicable 
     dollar amount' means, with respect to any year, the amount in 
     effect under section 402(g)(1)(B), 408(p)(2)(E)(i), or 
     457(e)(15)(A), whichever is applicable to an applicable 
     employer plan, for such year.
       ``(B) Applicable employer plan.--The term `applicable 
     employer plan' means--
       ``(i) an employees' trust described in section 401(a) which 
     is exempt from tax under section 501(a),
       ``(ii) a plan under which amounts are contributed by an 
     individual's employer for an annuity contract described in 
     section 403(b),
       ``(iii) an eligible deferred compensation plan under 
     section 457 of an eligible employer as defined in section 
     457(e)(1)(A), and
       ``(iv) an arrangement meeting the requirements of section 
     408 (k) or (p).
       ``(C) Elective deferral.--The term `elective deferral' has 
     the meaning given such term by subsection (u)(2)(C).
       ``(D) Exception for section 457 plans.--This subsection 
     shall not apply to an applicable employer plan described in 
     subparagraph (B)(iii) for any year to which section 457(b)(3) 
     applies.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions in taxable years beginning after 
     December 31, 2000.

     SEC. __32. EQUITABLE TREATMENT FOR CONTRIBUTIONS OF EMPLOYEES 
                   TO DEFINED CONTRIBUTION PLANS.

       (a) Equitable Treatment.--
       (1) In general.--Subparagraph (B) of section 415(c)(1) 
     (relating to limitation for defined contribution plans) is 
     amended by striking ``25 percent'' and inserting ``100 
     percent''.
       (2) Application to section 403(b).--Section 403(b) is 
     amended--
       (A) by striking ``the exclusion allowance for such taxable 
     year'' in paragraph (1) and inserting ``the applicable limit 
     under section 415'',
       (B) by striking paragraph (2), and
       (C) by inserting ``or any amount received by a former 
     employee after the 5th taxable year following the taxable 
     year in which such employee was terminated'' before the 
     period at the end of the second sentence of paragraph (3).
       (3) Conforming amendments.--
       (A) Subsection (f ) of section 72 is amended by striking 
     ``section 403(b)(2)(D)(iii))'' and inserting ``section 
     403(b)(2)(D)(iii), as in effect before the enactment of the 
     Taxpayer Refund and Relief Act of 1999)''.
       (B) Section 404(a)(10)(B) is amended by striking ``, the 
     exclusion allowance under section 403(b)(2),''.
       (C) Section 415(a)(2) is amended by striking ``, and the 
     amount of the contribution for such portion shall reduce the 
     exclusion allowance as provided in section 403(b)(2)''.
       (D) Section 415(c)(3) is amended by adding at the end the 
     following new subparagraph:
       ``(E) Annuity contracts.--In the case of an annuity 
     contract described in section 403(b), the term `participant's 
     compensation' means the participant's includible compensation 
     determined under section 403(b)(3).''.
       (E) Section 415(c) is amended by striking paragraph (4).
       (F) Section 415(c)(7) is amended to read as follows:
       ``(7) Certain contributions by church plans not treated as 
     exceeding limit.--
       ``(A) In general.--Notwithstanding any other provision of 
     this subsection, at the election of a participant who is an 
     employee of a church or a convention or association of 
     churches, including an organization described in section 
     414(e)(3)(B)(ii), contributions and other additions for an 
     annuity contract or retirement income account described in 
     section 403(b) with respect to such participant, when 
     expressed as an annual addition to such participant's 
     account, shall be treated as not exceeding the limitation of 
     paragraph (1) if such annual addition is not in excess of 
     $10,000.
       ``(B) $40,000 aggregate limitation.--The total amount of 
     additions with respect to any participant which may be taken 
     into account for purposes of this subparagraph for all years 
     may not exceed $40,000.
       ``(C) Annual addition.--For purposes of this paragraph, the 
     term `annual addition' has the meaning given such term by 
     paragraph (2).''.
       (G) Subparagraph (B) of section 402(g)(7) (as redesignated 
     by section 1201) is amended by inserting before the period at 
     the end the following: ``(as in effect before the enactment 
     of the Taxpayer Refund and Relief Act of 1999)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to years beginning after December 31, 2000.
       (b) Special Rules for Sections 403(b) and 408.--
       (1) In general.--Subsection (k) of section 415 is amended 
     by adding at the end the following new paragraph:
       ``(4) Special rules for sections 403(b) and 408.--For 
     purposes of this section, any annuity contract described in 
     section 403(b) for the benefit of a participant shall be 
     treated as a defined contribution plan maintained by each 
     employer with respect to which the participant has the 
     control required under subsection (b) or (c) of section 414 
     (as modified by subsection (h)). For purposes of this 
     section, any contribution by an employer to a simplified 
     employee pension plan for an individual for a taxable year 
     shall be treated as an employer contribution to a defined 
     contribution plan for such individual for such year.''.
       (2) Effective date.--
       (A) In general.--The amendment made by paragraph (1) shall 
     apply to limitation years beginning after December 31, 1999.
       (B) Exclusion allowance.--Effective for limitation years 
     beginning in 2000, in the case of any annuity contract 
     described in section 403(b) of the Internal Revenue Code of 
     1986, the amount of the contribution disqualified by reason 
     of section 415(g) of such Code shall reduce the exclusion 
     allowance as provided in section 403(b)(2) of such Code.
       (3) Modification of 403(b) exclusion allowance to conform 
     to 415 modification.--The Secretary of the Treasury shall 
     modify the regulations regarding the exclusion allowance 
     under section 403(b)(2) of the Internal Revenue Code of 1986 
     to render void the requirement that contributions to a 
     defined benefit pension plan be treated as previously 
     excluded amounts for purposes of the exclusion allowance. For 
     taxable years beginning after December 31, 1999, such 
     regulations shall be applied as if such requirement were 
     void.
       (c) Deferred Compensation Plans of State and Local 
     Governments and Tax-Exempt Organizations.--
       (1) In general.--Subparagraph (B) of section 457(b)(2) 
     (relating to salary limitation on eligible deferred 
     compensation plans) is amended by striking ``33\1/3\ 
     percent'' and inserting ``100 percent''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to years beginning after December 31, 2000.

     SEC. __33. FASTER VESTING OF CERTAIN EMPLOYER MATCHING 
                   CONTRIBUTIONS.

       (a) Amendments to 1986 Code.--Section 411(a) (relating to 
     minimum vesting standards) is amended--
       (1) in paragraph (2), by striking ``A plan'' and inserting 
     ``Except as provided in paragraph (12), a plan'', and
       (2) by adding at the end the following:
       ``(12) Faster vesting for matching contributions.--In the 
     case of matching contributions (as defined in section 
     401(m)(4)(A)), paragraph (2) shall be applied--
       ``(A) by substituting `3 years' for `5 years' in 
     subparagraph (A), and
       ``(B) by substituting the following table for the table 
     contained in subparagraph (B):

                                                     The nonforfeitable
``Years of service:                                      percentage is:
  2.............................................................20 ....

  3.............................................................40 ....

  4.............................................................60 ....

  5.............................................................80 ....

  6.........................................................100.''.....

       (b) Amendments to ERISA.--Section 203(a) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1053(a)) is 
     amended--
       (1) in paragraph (2), by striking ``A plan'' and inserting 
     ``Except as provided in paragraph (4), a plan'', and
       (2) by adding at the end the following:
       ``(4) Faster vesting for matching contributions.--In the 
     case of matching contributions (as defined in section 
     401(m)(4)(A) of the Internal Revenue Code of 1986), paragraph 
     (2) shall be applied--
       ``(A) by substituting `3 years' for `5 years' in 
     subparagraph (A), and
       ``(B) by substituting the following table for the table 
     contained in subparagraph (B):

                                                     The nonforfeitable
``Years of service:                                      percentage is:
  2.............................................................20 ....

  3.............................................................40 ....

  4.............................................................60 ....

  5.............................................................80 ....

  6.........................................................100.''.....

       (c) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to contributions 
     for plan years beginning after December 31, 2000.
       (2) Collective bargaining agreements.--In the case of a 
     plan maintained pursuant to one or more collective bargaining 
     agreements between employee representatives and one or more 
     employers ratified by the date of the enactment of this Act, 
     the amendments made by this section shall not apply to 
     contributions on behalf of employees covered by any such 
     agreement for plan years beginning before the earlier of--
       (A) the later of--

[[Page 28763]]

       (i) the date on which the last of such collective 
     bargaining agreements terminates (determined without regard 
     to any extension thereof on or after such date of the 
     enactment), or
       (ii) January 1, 2001, or
       (B) January 1, 2005.
       (3) Service required.--With respect to any plan, the 
     amendments made by this section shall not apply to any 
     employee before the date that such employee has 1 hour of 
     service under such plan in any plan year to which the 
     amendments made by this section apply.

     SEC. __34. SIMPLIFY AND UPDATE THE MINIMUM DISTRIBUTION 
                   RULES.

       (a) Simplification and Finalization of Minimum Distribution 
     Requirements.--
       (1) In general.--The Secretary of the Treasury shall--
       (A) simplify and finalize the regulations relating to 
     minimum distribution requirements under sections 401(a)(9), 
     408(a)(6) and (b)(3), 403(b)(10), and 457(d)(2) of the 
     Internal Revenue Code of 1986, and
       (B) modify such regulations to--
       (i) reflect current life expectancy, and
       (ii) revise the required distribution methods so that, 
     under reasonable assumptions, the amount of the required 
     minimum distribution does not decrease over a participant's 
     life expectancy.
       (2) Fresh start.--Notwithstanding subparagraph (D) of 
     section 401(a)(9) of such Code, during the first year that 
     regulations are in effect under this subsection, required 
     distributions for future years may be redetermined to reflect 
     changes under such regulations. Such redetermination shall 
     include the opportunity to choose a new designated 
     beneficiary and to elect a new method of calculating life 
     expectancy.
       (3) Effective date for regulations.--Regulations referred 
     to in paragraph (1) shall be effective for years beginning 
     after December 31, 2000, and shall apply in such years 
     without regard to whether an individual had previously begun 
     receiving minimum distributions.
       (b) Repeal of Rule Where Distributions Had Begun Before 
     Death Occurs.--
       (1) In general.--Subparagraph (B) of section 401(a)(9) is 
     amended by striking clause (i) and redesignating clauses 
     (ii), (iii), and (iv) as clauses (i), (ii), and (iii), 
     respectively.
       (2) Conforming changes.--
       (A) Clause (i) of section 401(a)(9)(B) (as so redesignated) 
     is amended--
       (i) by striking ``for other cases'' in the heading, and
       (ii) by striking ``the distribution of the employee's 
     interest has begun in accordance with subparagraph (A)(ii)'' 
     and inserting ``his entire interest has been distributed to 
     him,''.
       (B) Clause (ii) of section 401(a)(9)(B) (as so 
     redesignated) is amended by striking ``clause (ii)'' and 
     inserting ``clause (i)''.
       (C) Clause (iii) of section 401(a)(9)(B) (as so 
     redesignated) is amended--
       (i) by striking ``clause (iii)(I)'' and inserting ``clause 
     (ii)(I)'',
       (ii) by striking ``clause (iii)(III)'' in subclause (I) and 
     inserting ``clause (ii)(III)'',
       (iii) by striking ``the date on which the employee would 
     have attained the age 70\1/2\,'' in subclause (I) and 
     inserting ``April 1 of the calendar year following the 
     calendar year in which the spouse attains 70\1/2\,'', and
       (iv) by striking ``the distributions to such spouse 
     begin,'' in subclause (II) and inserting ``his entire 
     interest has been distributed to him,''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to years beginning after December 31, 2000.
       (c) Reduction in Excise Tax.--
       (1) In general.--Subsection (a) of section 4974 is amended 
     by striking ``50 percent'' and inserting ``10 percent''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to years beginning after December 31, 2000.

     SEC. __35. CLARIFICATION OF TAX TREATMENT OF DIVISION OF 
                   SECTION 457 PLAN BENEFITS UPON DIVORCE.

       (a) In General.--Section 414(p)(11) (relating to 
     application of rules to governmental and church plans) is 
     amended--
       (1) by inserting ``or an eligible deferred compensation 
     plan (within the meaning of section 457(b))'' after 
     ``subsection (e))'', and
       (2) in the heading, by striking ``governmental and church 
     plans'' and inserting ``certain other plans''.
       (b) Waiver of Certain Distribution Requirements.--Paragraph 
     (10) of section 414(p) is amended by striking ``and section 
     409(d)'' and inserting ``section 409(d), and section 
     457(d)''.
       (c) Tax Treatment of Payments From a Section 457 Plan.--
     Subsection (p) of section 414 is amended by redesignating 
     paragraph (12) as paragraph (13) and inserting after 
     paragraph (11) the following new paragraph:
       ``(12) Tax treatment of payments from a section 457 plan.--
     If a distribution or payment from an eligible deferred 
     compensation plan described in section 457(b) is made 
     pursuant to a qualified domestic relations order, rules 
     similar to the rules of section 402(e)(1)(A) shall apply to 
     such distribution or payment.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to transfers, distributions, and payments made 
     after December 31, 2000.

     SEC. __36. MODIFICATION OF SAFE HARBOR RELIEF FOR HARDSHIP 
                   WITHDRAWALS FROM CASH OR DEFERRED ARRANGEMENTS.

       (a) In General.--The Secretary of the Treasury shall revise 
     the regulations relating to hardship distributions under 
     section 401(k)(2)(B)(i)(IV) of the Internal Revenue Code of 
     1986 to provide that the period an employee is prohibited 
     from making elective and employee contributions in order for 
     a distribution to be deemed necessary to satisfy financial 
     need shall be equal to 6 months.
       (b) Effective Date.--The revised regulations under 
     subsection (a) shall apply to years beginning after December 
     31, 2000.

           PART III--INCREASING PORTABILITY FOR PARTICIPANTS

     SEC. __41. ROLLOVERS ALLOWED AMONG VARIOUS TYPES OF PLANS.

       (a) Rollovers From and to Section 457 Plans.--
       (1) Rollovers from section 457 plans.--
       (A) In general.--Section 457(e) (relating to other 
     definitions and special rules) is amended by adding at the 
     end the following:
       ``(16) Rollover amounts.--
       ``(A) General rule.--In the case of an eligible deferred 
     compensation plan established and maintained by an employer 
     described in subsection (e)(1)(A), if--
       ``(i) any portion of the balance to the credit of an 
     employee in such plan is paid to such employee in an eligible 
     rollover distribution (within the meaning of section 
     402(c)(4) without regard to subparagraph (C) thereof),
       ``(ii) the employee transfers any portion of the property 
     such employee receives in such distribution to an eligible 
     retirement plan described in section 402(c)(8)(B), and
       ``(iii) in the case of a distribution of property other 
     than money, the amount so transferred consists of the 
     property distributed,
     then such distribution (to the extent so transferred) shall 
     not be includible in gross income for the taxable year in 
     which paid.
       ``(B) Certain rules made applicable.--The rules of 
     paragraphs (2) through (7) (other than paragraph (4)(C)) and 
     (9) of section 402(c) and section 402(f ) shall apply for 
     purposes of subparagraph (A).
       ``(C) Reporting.--Rollovers under this paragraph shall be 
     reported to the Secretary in the same manner as rollovers 
     from qualified retirement plans (as defined in section 
     4974(c)).''.
       (B) Deferral limit determined without regard to rollover 
     amounts.--Section 457(b)(2) (defining eligible deferred 
     compensation plan) is amended by inserting ``(other than 
     rollover amounts)'' after ``taxable year''.
       (C) Direct rollover.--Paragraph (1) of section 457(d) is 
     amended by striking ``and'' at the end of subparagraph (A), 
     by striking the period at the end of subparagraph (B) and 
     inserting ``, and'', and by inserting after subparagraph (B) 
     the following:
       ``(C) in the case of a plan maintained by an employer 
     described in subsection (e)(1)(A), the plan meets 
     requirements similar to the requirements of section 
     401(a)(31).
     Any amount transferred in a direct trustee-to-trustee 
     transfer in accordance with section 401(a)(31) shall not be 
     includible in gross income for the taxable year of 
     transfer.''.
       (D) Withholding.--
       (i) Paragraph (12) of section 3401(a) is amended by adding 
     at the end the following:
       ``(E) under or to an eligible deferred compensation plan 
     which, at the time of such payment, is a plan described in 
     section 457(b) maintained by an employer described in section 
     457(e)(1)(A); or''.
       (ii) Paragraph (3) of section 3405(c) is amended to read as 
     follows:
       ``(3) Eligible rollover distribution.--For purposes of this 
     subsection, the term `eligible rollover distribution' has the 
     meaning given such term by section 402(f )(2)(A).''.
       (iii) Liability for withholding.--Subparagraph (B) of 
     section 3405(d)(2) is amended by striking ``or'' at the end 
     of clause (ii), by striking the period at the end of clause 
     (iii) and inserting ``, or'', and by adding at the end the 
     following:
       ``(iv) section 457(b).''.
       (2) Rollovers to section 457 plans.--
       (A) In general.--Section 402(c)(8)(B) (defining eligible 
     retirement plan) is amended by striking ``and'' at the end of 
     clause (iii), by striking the period at the end of clause 
     (iv) and inserting ``, and'', and by inserting after clause 
     (iv) the following new clause:
       ``(v) an eligible deferred compensation plan described in 
     section 457(b) of an employer described in section 
     457(e)(1)(A).''.
       (B) Separate accounting.--Section 402(c) is amended by 
     adding at the end the following new paragraph:
       ``(11) Separate accounting.--Unless a plan described in 
     clause (v) of paragraph (8)(B) agrees to separately account 
     for amounts rolled into such plan from eligible retirement 
     plans not described in such clause, the plan described in 
     such clause may not accept transfers or rollovers from such 
     retirement plans.''.
       (C) 10 percent additional tax.--Subsection (t) of section 
     72 (relating to 10-percent additional tax on early 
     distributions from qualified retirement plans) is amended by 
     adding at the end the following new paragraph:

[[Page 28764]]

       ``(9) Special rule for rollovers to section 457 plans.--For 
     purposes of this subsection, a distribution from an eligible 
     deferred compensation plan (as defined in section 457(b)) of 
     an employer described in section 457(e)(1)(A) shall be 
     treated as a distribution from a qualified retirement plan 
     described in 4974(c)(1) to the extent that such distribution 
     is attributable to an amount transferred to an eligible 
     deferred compensation plan from a qualified retirement plan 
     (as defined in section 4974(c)).''.
       (b) Allowance of Rollovers From and to 403 (b) Plans.--
       (1) Rollovers from section 403 (b) plans.--Section 
     403(b)(8)(A)(ii) (relating to rollover amounts) is amended by 
     striking ``such distribution'' and all that follows and 
     inserting ``such distribution to an eligible retirement plan 
     described in section 402(c)(8)(B), and''.
       (2) Rollovers to section 403 (b) plans.--Section 
     402(c)(8)(B) (defining eligible retirement plan), as amended 
     by subsection (a), is amended by striking ``and'' at the end 
     of clause (iv), by striking the period at the end of clause 
     (v) and inserting ``, and'', and by inserting after clause 
     (v) the following new clause:
       ``(vi) an annuity contract described in section 403(b).''.
       (c) Expanded Explanation to Recipients of Rollover 
     Distributions.--Paragraph (1) of section 402(f ) (relating to 
     written explanation to recipients of distributions eligible 
     for rollover treatment) is amended by striking ``and'' at the 
     end of subparagraph (C), by striking the period at the end of 
     subparagraph (D) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(E) of the provisions under which distributions from the 
     eligible retirement plan receiving the distribution may be 
     subject to restrictions and tax consequences which are 
     different from those applicable to distributions from the 
     plan making such distribution.''.
       (d) Spousal Rollovers.--Section 402(c)(9) (relating to 
     rollover where spouse receives distribution after death of 
     employee) is amended by striking ``; except that'' and all 
     that follows up to the end period.
       (e) Conforming Amendments.--
       (1) Section 72(o)(4) is amended by striking ``and 
     408(d)(3)'' and inserting ``403(b)(8), 408(d)(3), and 
     457(e)(16)''.
       (2) Section 219(d)(2) is amended by striking ``or 
     408(d)(3)'' and inserting ``408(d)(3), or 457(e)(16)''.
       (3) Section 401(a)(31)(B) is amended by striking ``and 
     403(a)(4)'' and inserting ``, 403(a)(4), 403(b)(8), and 
     457(e)(16)''.
       (4) Subparagraph (A) of section 402(f )(2) is amended by 
     striking ``or paragraph (4) of section 403(a)'' and inserting 
     ``, paragraph (4) of section 403(a), subparagraph (A) of 
     section 403(b)(8), or subparagraph (A) of section 
     457(e)(16)''.
       (5) Paragraph (1) of section 402(f ) is amended by striking 
     ``from an eligible retirement plan''.
       (6) Subparagraphs (A) and (B) of section 402(f )(1) are 
     amended by striking ``another eligible retirement plan'' and 
     inserting ``an eligible retirement plan''.
       (7) Subparagraph (B) of section 403(b)(8) is amended to 
     read as follows:
       ``(B) Certain rules made applicable.--The rules of 
     paragraphs (2) through (7) and (9) of section 402(c) and 
     section 402(f ) shall apply for purposes of subparagraph (A), 
     except that section 402(f ) shall be applied to the payor in 
     lieu of the plan administrator.''.
       (8) Section 408(a)(1) is amended by striking ``or 
     403(b)(8)'' and inserting ``, 403(b)(8), or 457(e)(16)''.
       (9) Subparagraphs (A) and (B) of section 415(b)(2) are each 
     amended by striking ``and 408(d)(3)'' and inserting 
     ``403(b)(8), 408(d)(3), and 457(e)(16)''.
       (10) Section 415(c)(2) is amended by striking ``and 
     408(d)(3)'' and inserting ``408(d)(3), and 457(e)(16)''.
       (11) Section 4973(b)(1)(A) is amended by striking ``or 
     408(d)(3)'' and inserting ``408(d)(3), or 457(e)(16)''.
       (f ) Effective Date; Special Rule.--
       (1) Effective date.--The amendments made by this section 
     shall apply to distributions after December 31, 2000.
       (2) Special rule.--Notwithstanding any other provision of 
     law, subsections (h)(3) and (h)(5) of section 1122 of the Tax 
     Reform Act of 1986 shall not apply to any distribution from 
     an eligible retirement plan (as defined in clause (iii) or 
     (iv) of section 402(c)(8)(B) of the Internal Revenue Code of 
     1986) on behalf of an individual if there was a rollover to 
     such plan on behalf of such individual which is permitted 
     solely by reason of any amendment made by this section.

     SEC. __42. ROLLOVERS OF IRAS INTO WORKPLACE RETIREMENT PLANS.

       (a) In General.--Subparagraph (A) of section 408(d)(3) 
     (relating to rollover amounts) is amended by adding ``or'' at 
     the end of clause (i), by striking clauses (ii) and (iii), 
     and by adding at the end the following:
       ``(ii) the entire amount received (including money and any 
     other property) is paid into an eligible retirement plan for 
     the benefit of such individual not later than the 60th day 
     after the date on which the payment or distribution is 
     received, except that the maximum amount which may be paid 
     into such plan may not exceed the portion of the amount 
     received which is includible in gross income (determined 
     without regard to this paragraph).
     For purposes of clause (ii), the term `eligible retirement 
     plan' means an eligible retirement plan described in clause 
     (iii), (iv), (v), or (vi) of section 402(c)(8)(B).''.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 403(b) is amended by striking 
     ``section 408(d)(3)(A)(iii)'' and inserting ``section 
     408(d)(3)(A)(ii)''.
       (2) Clause (i) of section 408(d)(3)(D) is amended by 
     striking ``(i), (ii), or (iii)'' and inserting ``(i) or 
     (ii)''.
       (3) Subparagraph (G) of section 408(d)(3) is amended to 
     read as follows:
       ``(G) Simple retirement accounts.--In the case of any 
     payment or distribution out of a simple retirement account 
     (as defined in subsection (p)) to which section 72(t)(6) 
     applies, this paragraph shall not apply unless such payment 
     or distribution is paid into another simple retirement 
     account.''.
       (c) Effective Date; Special Rule.--
       (1) Effective date.--The amendments made by this section 
     shall apply to distributions after December 31, 2000.
       (2) Special rule.--Notwithstanding any other provision of 
     law, subsections (h)(3) and (h)(5) of section 1122 of the Tax 
     Reform Act of 1986 shall not apply to any distribution from 
     an eligible retirement plan (as defined in clause (iii) or 
     (iv) of section 402(c)(8)(B) of the Internal Revenue Code of 
     1986) on behalf of an individual if there was a rollover to 
     such plan on behalf of such individual which is permitted 
     solely by reason of the amendments made by this section.

     SEC. __43. ROLLOVERS OF AFTER-TAX CONTRIBUTIONS.

       (a) Rollovers From Exempt Trusts.--Paragraph (2) of section 
     402(c) (relating to maximum amount which may be rolled over) 
     is amended by adding at the end the following: ``The 
     preceding sentence shall not apply to such distribution to 
     the extent--
       ``(A) such portion is transferred in a direct trustee-to-
     trustee transfer to a qualified trust which is part of a plan 
     which is a defined contribution plan and which agrees to 
     separately account for amounts so transferred, including 
     separately accounting for the portion of such distribution 
     which is includible in gross income and the portion of such 
     distribution which is not so includible, or
       ``(B) such portion is transferred to an eligible retirement 
     plan described in clause (i) or (ii) of paragraph (8)(B).''.
       (b) Optional Direct Transfer of Eligible Rollover 
     Distributions.--Subparagraph (B) of section 401(a)(31) 
     (relating to limitation) is amended by adding at the end the 
     following: ``The preceding sentence shall not apply to such 
     distribution if the plan to which such distribution is 
     transferred--
       ``(i) agrees to separately account for amounts so 
     transferred, including separately accounting for the portion 
     of such distribution which is includible in gross income and 
     the portion of such distribution which is not so includible, 
     or
       ``(ii) is an eligible retirement plan described in clause 
     (i) or (ii) of section 402(c)(8)(B).''.
       (c) Rules for Applying Section 72 to IRAs.--Paragraph (3) 
     of section 408(d) (relating to special rules for applying 
     section 72) is amended by inserting at the end the following:
       ``(H) Application of section 72.--
       ``(i) In general.--If--

       ``(I) a distribution is made from an individual retirement 
     plan, and
       ``(II) a rollover contribution is made to an eligible 
     retirement plan described in section 402(c)(8)(B)(iii), (iv), 
     (v), or (vi) with respect to all or part of such 
     distribution,

     then, notwithstanding paragraph (2), the rules of clause (ii) 
     shall apply for purposes of applying section 72.
       ``(ii) Applicable rules.--In the case of a distribution 
     described in clause (i)--

       ``(I) section 72 shall be applied separately to such 
     distribution,
       ``(II) notwithstanding the pro rata allocation of income 
     on, and investment in, the contract to distributions under 
     section 72, the portion of such distribution rolled over to 
     an eligible retirement plan described in clause (i) shall be 
     treated as from income on the contract (to the extent of the 
     aggregate income on the contract from all individual 
     retirement plans of the distributee), and
       ``(III) appropriate adjustments shall be made in applying 
     section 72 to other distributions in such taxable year and 
     subsequent taxable years.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to distributions made after December 31, 2000.

     SEC. __44. HARDSHIP EXCEPTION TO 60-DAY RULE.

       (a) Exempt Trusts.--Paragraph (3) of section 402(c) 
     (relating to transfer must be made within 60 days of receipt) 
     is amended to read as follows:
       ``(3) Transfer must be made within 60 days of receipt.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     paragraph (1) shall not apply to any transfer of a 
     distribution made after the 60th day following the day on 
     which the distributee received the property distributed.
       ``(B) Hardship exception.--The Secretary may waive the 60-
     day requirement under

[[Page 28765]]

     subparagraph (A) where the failure to waive such requirement 
     would be against equity or good conscience, including 
     casualty, disaster, or other events beyond the reasonable 
     control of the individual subject to such requirement.''.
       (b) IRAs.--Paragraph (3) of section 408(d) (relating to 
     rollover contributions), as amended by section __43, is 
     amended by adding after subparagraph (H) the following new 
     subparagraph:
       ``(I) Waiver of 60-day requirement.--The Secretary may 
     waive the 60-day requirement under subparagraphs (A) and (D) 
     where the failure to waive such requirement would be against 
     equity or good conscience, including casualty, disaster, or 
     other events beyond the reasonable control of the individual 
     subject to such requirement.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions after December 31, 2000.

     SEC. __45. TREATMENT OF FORMS OF DISTRIBUTION.

       (a) Plan Transfers.--
       (1) Amendment to internal revenue code of 1986.--Paragraph 
     (6) of section 411(d) (relating to accrued benefit not to be 
     decreased by amendment) is amended by adding at the end the 
     following:
       ``(D) Plan transfers.--
       ``(i) A defined contribution plan (in this subparagraph 
     referred to as the `transferee plan') shall not be treated as 
     failing to meet the requirements of this subsection merely 
     because the transferee plan does not provide some or all of 
     the forms of distribution previously available under another 
     defined contribution plan (in this subparagraph referred to 
     as the `transferor plan') to the extent that--

       ``(I) the forms of distribution previously available under 
     the transferor plan applied to the account of a participant 
     or beneficiary under the transferor plan that was transferred 
     from the transferor plan to the transferee plan pursuant to a 
     direct transfer rather than pursuant to a distribution from 
     the transferor plan,
       ``(II) the terms of both the transferor plan and the 
     transferee plan authorize the transfer described in subclause 
     (I),
       ``(III) the transfer described in subclause (I) was made 
     pursuant to a voluntary election by the participant or 
     beneficiary whose account was transferred to the transferee 
     plan,
       ``(IV) the election described in subclause (III) was made 
     after the participant or beneficiary received a notice 
     describing the consequences of making the election,
       ``(V) if the transferor plan provides for an annuity as the 
     normal form of distribution under the plan in accordance with 
     section 417, the transfer is made with the consent of the 
     participant's spouse (if any), and such consent meets 
     requirements similar to the requirements imposed by section 
     417(a)(2), and
       ``(VI) the transferee plan allows the participant or 
     beneficiary described in clause (iii) to receive any 
     distribution to which the participant or beneficiary is 
     entitled under the transferee plan in the form of a single 
     sum distribution.

       ``(ii) Clause (i) shall apply to plan mergers and other 
     transactions having the effect of a direct transfer, 
     including consolidations of benefits attributable to 
     different employers within a multiple employer plan.
       ``(E) Elimination of form of distribution.--Except to the 
     extent provided in regulations, a defined contribution plan 
     shall not be treated as failing to meet the requirements of 
     this section merely because of the elimination of a form of 
     distribution previously available thereunder. This 
     subparagraph shall not apply to the elimination of a form of 
     distribution with respect to any participant unless--
       ``(i) a single sum payment is available to such participant 
     at the same time or times as the form of distribution being 
     eliminated, and
       ``(ii) such single sum payment is based on the same or 
     greater portion of the participant's account as the form of 
     distribution being eliminated.''.
       (2) Amendment to erisa.--Section 204(g) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1054(g)) is 
     amended by adding at the end the following:
       ``(4)(A) A defined contribution plan (in this subparagraph 
     referred to as the `transferee plan') shall not be treated as 
     failing to meet the requirements of this subsection merely 
     because the transferee plan does not provide some or all of 
     the forms of distribution previously available under another 
     defined contribution plan (in this subparagraph referred to 
     as the `transferor plan') to the extent that--
       ``(i) the forms of distribution previously available under 
     the transferor plan applied to the account of a participant 
     or beneficiary under the transferor plan that was transferred 
     from the transferor plan to the transferee plan pursuant to a 
     direct transfer rather than pursuant to a distribution from 
     the transferor plan;
       ``(ii) the terms of both the transferor plan and the 
     transferee plan authorize the transfer described in clause 
     (i);
       ``(iii) the transfer described in clause (i) was made 
     pursuant to a voluntary election by the participant or 
     beneficiary whose account was transferred to the transferee 
     plan;
       ``(iv) the election described in clause (iii) was made 
     after the participant or beneficiary received a notice 
     describing the consequences of making the election;
       ``(v) if the transferor plan provides for an annuity as the 
     normal form of distribution under the plan in accordance with 
     section 205, the transfer is made with the consent of the 
     participant's spouse (if any), and such consent meets 
     requirements similar to the requirements imposed by section 
     205(c)(2); and
       ``(vi) the transferee plan allows the participant or 
     beneficiary described in clause (iii) to receive any 
     distribution to which the participant or beneficiary is 
     entitled under the transferee plan in the form of a single 
     sum distribution.
       ``(B) Subparagraph (A) shall apply to plan mergers and 
     other transactions having the effect of a direct transfer, 
     including consolidations of benefits attributable to 
     different employers within a multiple employer plan.
       ``(5) Elimination of form of distribution.--Except to the 
     extent provided in regulations, a defined contribution plan 
     shall not be treated as failing to meet the requirements of 
     this section merely because of the elimination of a form of 
     distribution previously available thereunder. This paragraph 
     shall not apply to the elimination of a form of distribution 
     with respect to any participant unless--
       ``(A) a single sum payment is available to such participant 
     at the same time or times as the form of distribution being 
     eliminated; and
       ``(B) such single sum payment is based on the same or 
     greater portion of the participant's account as the form of 
     distribution being eliminated.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to years beginning after December 31, 2000.
       (b) Regulations.--
       (1) Amendment to internal revenue code of 1986.--The last 
     sentence of paragraph (6)(B) of section 411(d) (relating to 
     accrued benefit not to be decreased by amendment) is amended 
     to read as follows: ``The Secretary shall by regulations 
     provide that this subparagraph shall not apply to any plan 
     amendment that does not adversely affect the rights of 
     participants in a material manner.''.
       (2) Amendment to erisa.--The last sentence of section 
     204(g)(2) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1054(g)(2)) is amended to read as follows: 
     ``The Secretary of the Treasury shall by regulations provide 
     that this paragraph shall not apply to any plan amendment 
     that does not adversely affect the rights of participants in 
     a material manner.''.
       (3) Secretary directed.--Not later than December 31, 2001, 
     the Secretary of the Treasury is directed to issue final 
     regulations under section 411(d)(6) of the Internal Revenue 
     Code of 1986 and section 204(g) of the Employee Retirement 
     Income Security Act of 1974, including the regulations 
     required by the amendments made by this subsection. Such 
     regulations shall apply to plan years beginning after 
     December 31, 2001, or such earlier date as is specified by 
     the Secretary of the Treasury.

     SEC. __46. RATIONALIZATION OF RESTRICTIONS ON DISTRIBUTIONS.

       (a) Modification of Same Desk Exception.--
       (1) Section 401(k).--
       (A) Section 401(k)(2)(B)(i)(I) (relating to qualified cash 
     or deferred arrangements) is amended by striking ``separation 
     from service'' and inserting ``severance from employment''.
       (B) Subparagraph (A) of section 401(k)(10) (relating to 
     distributions upon termination of plan or disposition of 
     assets or subsidiary) is amended to read as follows:
       ``(A) In general.--An event described in this subparagraph 
     is the termination of the plan without establishment or 
     maintenance of another defined contribution plan (other than 
     an employee stock ownership plan as defined in section 
     4975(e)(7)).''.
       (C) Section 401(k)(10) is amended--
       (i) in subparagraph (B)--

       (I) by striking ``An event'' in clause (i) and inserting 
     ``A termination'', and
       (II) by striking ``the event'' in clause (i) and inserting 
     ``the termination'',

       (ii) by striking subparagraph (C), and
       (iii) by striking ``or disposition of assets or 
     subsidiary'' in the heading.
       (2) Section 403(b).--
       (A) Paragraphs (7)(A)(ii) and (11)(A) of section 403(b) are 
     each amended by striking ``separates from service'' and 
     inserting ``has a severance from employment''.
       (B) The heading for paragraph (11) of section 403(b) is 
     amended by striking ``separation from service'' and inserting 
     ``severance from employment''.
       (3) Section 457.--Clause (ii) of section 457(d)(1)(A) is 
     amended by striking ``is separated from service'' and 
     inserting ``has a severance from employment''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to distributions after December 31, 2000.

[[Page 28766]]



     SEC. __47. PURCHASE OF SERVICE CREDIT IN GOVERNMENTAL DEFINED 
                   BENEFIT PLANS.

       (a) 403(b) Plans.--Subsection (b) of section 403 is amended 
     by adding at the end the following new paragraph:
       ``(13) Trustee-to-trustee transfers to purchase permissive 
     service credit.--No amount shall be includible in gross 
     income by reason of a direct trustee-to-trustee transfer to a 
     defined benefit governmental plan (as defined in section 
     414(d)) if such transfer is--
       ``(A) for the purchase of permissive service credit (as 
     defined in section 415(n)(3)(A)) under such plan, or
       ``(B) a repayment to which section 415 does not apply by 
     reason of subsection (k)(3) thereof.''.
       (b) 457 Plans.--
       (1) Subsection (e) of section 457 is amended by adding 
     after paragraph (16) the following new paragraph:
       ``(17) Trustee-to-trustee transfers to purchase permissive 
     service credit.--No amount shall be includible in gross 
     income by reason of a direct trustee-to-trustee transfer to a 
     defined benefit governmental plan (as defined in section 
     414(d)) if such transfer is--
       ``(A) for the purchase of permissive service credit (as 
     defined in section 415(n)(3)(A)) under such plan, or
       ``(B) a repayment to which section 415 does not apply by 
     reason of subsection (k)(3) thereof.''.
       (2) Section 457(b)(2) is amended by striking ``(other than 
     rollover amounts)'' and inserting ``(other than rollover 
     amounts and amounts received in a transfer referred to in 
     subsection (e)(17))''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to trustee-to-trustee transfers after December 
     31, 2000.

     SEC. __48. EMPLOYERS MAY DISREGARD ROLLOVERS FOR PURPOSES OF 
                   CASH-OUT AMOUNTS.

       (a) Qualified Plans.--
       (1) Amendment to internal revenue code of 1986.--Section 
     411(a)(11) (relating to restrictions on certain mandatory 
     distributions) is amended by adding at the end the following:
       ``(D) Special rule for rollover contributions.--A plan 
     shall not fail to meet the requirements of this paragraph if, 
     under the terms of the plan, the present value of the 
     nonforfeitable accrued benefit is determined without regard 
     to that portion of such benefit which is attributable to 
     rollover contributions (and earnings allocable thereto). For 
     purposes of this subparagraph, the term `rollover 
     contributions' means any rollover contribution under sections 
     402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 
     457(e)(16).''.
       (2) Amendment to erisa.--Section 203(e) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1053(c)) is 
     amended by adding at the end the following:
       ``(4) A plan shall not fail to meet the requirements of 
     this subsection if, under the terms of the plan, the present 
     value of the nonforfeitable accrued benefit is determined 
     without regard to that portion of such benefit which is 
     attributable to rollover contributions (and earnings 
     allocable thereto). For purposes of this subparagraph, the 
     term `rollover contributions' means any rollover contribution 
     under sections 402(c), 403(a)(4), 403(b)(8), 
     408(d)(3)(A)(ii), and 457(e)(16) of the Internal Revenue Code 
     of 1986.''.
       (b) Eligible Deferred Compensation Plans.--Clause (i) of 
     section 457(e)(9)(A) is amended by striking ``such amount'' 
     and inserting ``the portion of such amount which is not 
     attributable to rollover contributions (as defined in section 
     411(a)(11)(D))''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions after December 31, 2000.

     SEC. __49. MINIMUM DISTRIBUTION AND INCLUSION REQUIREMENTS 
                   FOR SECTION 457 PLANS.

       (a) Minimum Distribution Requirements.--Paragraph (2) of 
     section 457(d) (relating to distribution requirements) is 
     amended to read as follows:
       ``(2) Minimum distribution requirements.--A plan meets the 
     minimum distribution requirements of this paragraph if such 
     plan meets the requirements of section 401(a)(9).''.
       (b) Inclusion in Gross Income.--
       (1) Year of inclusion.--Subsection (a) of section 457 
     (relating to year of inclusion in gross income) is amended to 
     read as follows:
       ``(a) Year of inclusion in gross income.--
       ``(1) In general.--Any amount of compensation deferred 
     under an eligible deferred compensation plan, and any income 
     attributable to the amounts so deferred, shall be includible 
     in gross income only for the taxable year in which such 
     compensation or other income--
       ``(A) is paid to the participant or other beneficiary, in 
     the case of a plan of an eligible employer described in 
     subsection (e)(1)(A), and
       ``(B) is paid or otherwise made available to the 
     participant or other beneficiary, in the case of a plan of an 
     eligible employer described in subsection (e)(1)(B).
       ``(2) Special rule for rollover amounts.--To the extent 
     provided in section 72(t)(9), section 72(t) shall apply to 
     any amount includible in gross income under this 
     subsection.''.
       (2) Conforming amendments.--
       (A) So much of paragraph (9) of section 457(e) as precedes 
     subparagraph (A) is amended to read as follows:
       ``(9) Benefits of tax exempt organization plans not treated 
     as made available by reason of certain elections, etc.--In 
     the case of an eligible deferred compensation plan of an 
     employer described in subsection (e)(1)(B)--''.
       (B) Section 457(d) is amended by adding at the end the 
     following new paragraph:
       ``(3) Special rule for government plan.--An eligible 
     deferred compensation plan of an employer described in 
     subsection (e)(1)(A) shall not be treated as failing to meet 
     the requirements of this subsection solely by reason of 
     making a distribution described in subsection (e)(9)(A).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions after December 31, 2000.

        PART IV--STRENGTHENING PENSION SECURITY AND ENFORCEMENT

     SEC. __51. REPEAL OF 150 PERCENT OF CURRENT LIABILITY FUNDING 
                   LIMIT.

       (a) Amendment to Internal Revenue Code of 1986.--Section 
     412(c)(7) (relating to full-funding limitation) is amended--
       (1) by striking ``the applicable percentage'' in 
     subparagraph (A)(i)(I) and inserting ``in the case of plan 
     years beginning before January 1, 2004, the applicable 
     percentage'', and
       (2) by amending subparagraph (F) to read as follows:
       ``(F) Applicable percentage.--For purposes of subparagraph 
     (A)(i)(I), the applicable percentage shall be determined in 
     accordance with the following table:

``In the case of any plan year beginning The applicable percentage is--
      2001.........................................................160 
      2002.........................................................165 
      2003......................................................170.''.

       (b) Amendment to ERISA.--Section 302(c)(7) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1082(c)(7)) 
     is amended--
       (1) by striking ``the applicable percentage'' in 
     subparagraph (A)(i)(I) and inserting ``in the case of plan 
     years beginning before January 1, 2004, the applicable 
     percentage'', and
       (2) by amending subparagraph (F) to read as follows:
       ``(F) Applicable percentage.--For purposes of subparagraph 
     (A)(i)(I), the applicable percentage shall be determined in 
     accordance with the following table:

``In the case of any plan year beginning The applicable percentage is--
      2001.........................................................160 
      2002.........................................................165 
      2003......................................................170.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2000.

     SEC. __52. MAXIMUM CONTRIBUTION DEDUCTION RULES MODIFIED AND 
                   APPLIED TO ALL DEFINED BENEFIT PLANS.

       (a) In General.--Subparagraph (D) of section 404(a)(1) 
     (relating to special rule in case of certain plans) is 
     amended to read as follows:
       ``(D) Special rule in case of certain plans.--
       ``(i) In general.--In the case of any defined benefit plan, 
     except as provided in regulations, the maximum amount 
     deductible under the limitations of this paragraph shall not 
     be less than the unfunded termination liability (determined 
     as if the proposed termination date referred to in section 
     4041(b)(2)(A)(i)(II) of the Employee Retirement Income 
     Security Act of 1974 were the last day of the plan year).
       ``(ii) Plans with less than 100 participants.--For purposes 
     of this subparagraph, in the case of a plan which has less 
     than 100 participants for the plan year, termination 
     liability shall not include the liability attributable to 
     benefit increases for highly compensated employees (as 
     defined in section 414(q)) resulting from a plan amendment 
     which is made or becomes effective, whichever is later, 
     within the last 2 years before the termination date.
       ``(iii) Rule for determining number of participants.--For 
     purposes of determining whether a plan has more than 100 
     participants, all defined benefit plans maintained by the 
     same employer (or any member of such employer's controlled 
     group (within the meaning of section 412(l)(8)(C))) shall be 
     treated as one plan, but only employees of such member or 
     employer shall be taken into account.
       ``(iv) Plans established and maintain by professional 
     service employers.--Clause (i) shall not apply to a plan 
     described in section 4021(b)(13) of the Employee Retirement 
     Income Security Act of 1974.''.
       (b) Conforming Amendment.--Paragraph (6) of section 4972(c) 
     is amended to read as follows:
       ``(6) Exceptions.--In determining the amount of 
     nondeductible contributions for any taxable year, there shall 
     not be taken into account so much of the contributions to one 
     or more defined contribution plans which are not deductible 
     when contributed solely because of section 404(a)(7) as does 
     not exceed the greater of--

[[Page 28767]]

       ``(A) the amount of contributions not in excess of 6 
     percent of compensation (within the meaning of section 
     404(a)) paid or accrued (during the taxable year for which 
     the contributions were made) to beneficiaries under the 
     plans, or
       ``(B) the sum of--
       ``(i) the amount of contributions described in section 
     401(m)(4)(A), plus
       ``(ii) the amount of contributions described in section 
     402(g)(3)(A).
     For purposes of this paragraph, the deductible limits under 
     section 404(a)(7) shall first be applied to amounts 
     contributed to a defined benefit plan and then to amounts 
     described in subparagraph (B).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2000.

     SEC. __53. EXCISE TAX RELIEF FOR SOUND PENSION FUNDING.

       (a) In General.--Subsection (c) of section 4972 (relating 
     to nondeductible contributions) is amended by adding at the 
     end the following new paragraph:
       ``(7) Defined benefit plan exception.--In determining the 
     amount of nondeductible contributions for any taxable year, 
     an employer may elect for such year not to take into account 
     any contributions to a defined benefit plan except to the 
     extent that such contributions exceed the full-funding 
     limitation (as defined in section 412(c)(7), determined 
     without regard to subparagraph (A)(i)(I) thereof). For 
     purposes of this paragraph, the deductible limits under 
     section 404(a)(7) shall first be applied to amounts 
     contributed to defined contribution plans and then to amounts 
     described in this paragraph. If an employer makes an election 
     under this paragraph for a taxable year, paragraph (6) shall 
     not apply to such employer for such taxable year.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. __54. EXCISE TAX ON FAILURE TO PROVIDE NOTICE BY DEFINED 
                   BENEFIT PLANS SIGNIFICANTLY REDUCING FUTURE 
                   BENEFIT ACCRUALS.

       (a) Amendment to 1986 Code.--Chapter 43 of subtitle D 
     (relating to qualified pension, etc., plans) is amended by 
     adding at the end the following new section:

     ``SEC. 4980F. FAILURE OF APPLICABLE PLANS REDUCING BENEFIT 
                   ACCRUALS TO SATISFY NOTICE REQUIREMENTS.

       ``(a) Imposition of Tax.--There is hereby imposed a tax on 
     the failure of any applicable pension plan to meet the 
     requirements of subsection (e) with respect to any applicable 
     individual.
       ``(b) Amount of Tax.--
       ``(1) In general.--The amount of the tax imposed by 
     subsection (a) on any failure with respect to any applicable 
     individual shall be $100 for each day in the noncompliance 
     period with respect to such failure.
       ``(2) Noncompliance period.--For purposes of this section, 
     the term `noncompliance period' means, with respect to any 
     failure, the period beginning on the date the failure first 
     occurs and ending on the date the failure is corrected.
       ``(c) Limitations on Amount of Tax.--
       ``(1) Overall limitation for unintentional failures.--In 
     the case of failures that are due to reasonable cause and not 
     to willful neglect, the tax imposed by subsection (a) for 
     failures during the taxable year of the employer (or, in the 
     case of a multiemployer plan, the taxable year of the trust 
     forming part of the plan) shall not exceed $500,000. For 
     purposes of the preceding sentence, all multiemployer plans 
     of which the same trust forms a part shall be treated as one 
     plan. For purposes of this paragraph, if not all persons who 
     are treated as a single employer for purposes of this section 
     have the same taxable year, the taxable years taken into 
     account shall be determined under principles similar to the 
     principles of section 1561.
       ``(2) Waiver by secretary.--In the case of a failure which 
     is due to reasonable cause and not to willful neglect, the 
     Secretary may waive part or all of the tax imposed by 
     subsection (a) to the extent that the payment of such tax 
     would be excessive relative to the failure involved.
       ``(d) Liability for Tax.--The following shall be liable for 
     the tax imposed by subsection (a):
       ``(1) In the case of a plan other than a multiemployer 
     plan, the employer.
       ``(2) In the case of a multiemployer plan, the plan.
       ``(e) Notice Requirements for Plans Significantly Reducing 
     Benefit Accruals.--
       ``(1) In general.--If an applicable pension plan is amended 
     to provide for a significant reduction in the rate of future 
     benefit accrual, the plan administrator shall provide written 
     notice to each applicable individual (and to each employee 
     organization representing applicable individuals).
       ``(2) Notice.--The notice required by paragraph (1) shall 
     be written in a manner calculated to be understood by the 
     average plan participant and shall provide sufficient 
     information (as determined in accordance with regulations 
     prescribed by the Secretary) to allow applicable individuals 
     to understand the effect of the plan amendment.
       ``(3) Timing of notice.--Except as provided in regulations, 
     the notice required by paragraph (1) shall be provided within 
     a reasonable time before the effective date of the plan 
     amendment.
       ``(4) Designees.--Any notice under paragraph (1) may be 
     provided to a person designated, in writing, by the person to 
     which it would otherwise be provided.
       ``(5) Notice before adoption of amendment.--A plan shall 
     not be treated as failing to meet the requirements of 
     paragraph (1) merely because notice is provided before the 
     adoption of the plan amendment if no material modification of 
     the amendment occurs before the amendment is adopted.
       ``(f ) Applicable Individual; Applicable Pension Plan.--For 
     purposes of this section--
       ``(1) Applicable individual.--The term `applicable 
     individual' means, with respect to any plan amendment--
       ``(A) any participant in the plan, and
       ``(B) any beneficiary who is an alternate payee (within the 
     meaning of section 414(p)(8)) under an applicable qualified 
     domestic relations order (within the meaning of section 
     414(p)(1)(A)),
     who may reasonably be expected to be affected by such plan 
     amendment.
       ``(2) Applicable pension plan.--The term `applicable 
     pension plan' means--
       ``(A) any defined benefit plan, or
       ``(B) an individual account plan which is subject to the 
     funding standards of section 412,

     which had 100 or more participants who had accrued a benefit, 
     or with respect to whom contributions were made, under the 
     plan (whether or not vested) as of the last day of the plan 
     year preceding the plan year in which the plan amendment 
     becomes effective. Such term shall not include a governmental 
     plan (within the meaning of section 414(d)) or a church plan 
     (within the meaning of section 414(e)) with respect to which 
     the election provided by section 410(d) has not been made.''.
       (b) Amendment to ERISA.--Section 204(h) of the Employee 
     Retirement Income Security Act or 1974 (29 U.S.C. 1054(h)) is 
     amended by adding at the end the following new paragraph:
       ``(3)(A) A plan to which paragraph (1) applies shall not be 
     treated as meeting the requirements of such paragraph unless, 
     in addition to any notice required to be provided to an 
     individual or organization under such paragraph, the plan 
     administrator provides the notice described in subparagraph 
     (B).
       ``(B) The notice required by subparagraph (A) shall be 
     written in a manner calculated to be understood by the 
     average plan participant and shall provide sufficient 
     information (as determined in accordance with regulations 
     prescribed by the Secretary of the Treasury) to allow 
     individuals to understand the effect of the plan amendment.
       ``(C) Except as provided in regulations prescribed by the 
     Secretary of the Treasury, the notice required by 
     subparagraph (A) shall be provided within a reasonable time 
     before the effective date of the plan amendment.
       ``(D) A plan shall not be treated as failing to meet the 
     requirements of subparagraph (A) merely because notice is 
     provided before the adoption of the plan amendment if no 
     material modification of the amendment occurs before the 
     amendment is adopted.''.
       (c) Clerical Amendment.--The table of sections for chapter 
     43 of subtitle D is amended by adding at the end the 
     following new item:

 ``Sec. 4980F. Failure of applicable plans reducing benefit accruals to 
              satisfy notice requirements.''.

       (d) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to plan amendments taking effect on or after the date 
     of the enactment of this Act.
       (2) Transition.--Until such time as the Secretary of the 
     Treasury issues regulations under sections 4980F(e)(2) and 
     (3) of the Internal Revenue Code of 1986 and section 
     204(h)(3) of the Employee Retirement Income Security Act of 
     1974 (as added by the amendments made by this section), a 
     plan shall be treated as meeting the requirements of such 
     sections if it makes a good faith effort to comply with such 
     requirements.
       (3) Special rule.--The period for providing any notice 
     required by the amendments made by this section shall not end 
     before the date which is 3 months after the date of the 
     enactment of this Act.

     SEC. __55. PROTECTION OF INVESTMENT OF EMPLOYEE CONTRIBUTIONS 
                   TO 401(K) PLANS.

       (a) In General.--Section 1524(b) of the Taxpayer Relief Act 
     of 1997 is amended to read as follows:
       ``(b) Effective Date.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to elective 
     deferrals for plan years beginning after December 31, 1998.
       ``(2) Nonapplication to previously acquired property.--The 
     amendments made by this section shall not apply to any 
     elective deferral which is invested in assets consisting of 
     qualifying employer securities, qualifying employer real 
     property, or both, if such assets were acquired before 
     January 1, 1999.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply as if included in the provision of the Taxpayer 
     Relief Act of 1997 to which it relates.

[[Page 28768]]



     SEC. __56. TREATMENT OF MULTIEMPLOYER PLANS UNDER SECTION 
                   415.

       (a) Compensation Limit.--Paragraph (11) of section 415(b) 
     (relating to limitation for defined benefit plans) is amended 
     to read as follows:
       ``(11) Special limitation rule for governmental and 
     multiemployer plans.--In the case of a governmental plan (as 
     defined in section 414(d)) or a multiemployer plan (as 
     defined in section 414(f )), subparagraph (B) of paragraph 
     (1) shall not apply.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning after December 31, 2000.

                  PART V--REDUCING REGULATORY BURDENS

     SEC. __61. MODIFICATION OF TIMING OF PLAN VALUATIONS.

       (a) In General.--Section 412(c)(9) (relating to annual 
     valuation) is amended--
       (1) by striking ``For purposes'' and inserting the 
     following:
       ``(A) In general.--For purposes'', and
       (2) by adding at the end the following:
       ``(B) Election to use prior year valuation.--
       ``(i) In general.--Except as provided in clause (ii), if, 
     for any plan year--

       ``(I) an election is in effect under this subparagraph with 
     respect to a plan, and
       ``(II) the assets of the plan are not less than 125 percent 
     of the plan's current liability (as defined in paragraph 
     (7)(B)), determined as of the valuation date for the 
     preceding plan year,

     then this section shall be applied using the information 
     available as of such valuation date.
       ``(ii) Exceptions.--

       ``(I) Actual valuation every 3 years.--Clause (i) shall not 
     apply for more than 2 consecutive plan years and valuation 
     shall be under subparagraph (A) with respect to any plan year 
     to which clause (i) does not apply by reason of this 
     subclause.
       ``(II) Regulations.--Clause (i) shall not apply to the 
     extent that more frequent valuations are required under the 
     regulations under subparagraph (A).

       ``(iii) Adjustments.--Information under clause (i) shall, 
     in accordance with regulations, be actuarially adjusted to 
     reflect significant differences in participants.
       ``(iv) Election.--An election under this subparagraph, once 
     made, shall be irrevocable without the consent of the 
     Secretary.''.
       (b) Amendments to ERISA.--Paragraph (9) of section 302(c) 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1053(c)) is amended--
       (1) by inserting ``(A)'' after ``(9)'', and
       (2) by adding at the end the following:
       ``(B)(i) Except as provided in clause (ii), if, for any 
     plan year--
       ``(I) an election is in effect under this subparagraph with 
     respect to a plan, and
       ``(II) the assets of the plan are not less than 125 percent 
     of the plan's current liability (as defined in paragraph 
     (7)(B)), determined as of the valuation date for the 
     preceding plan year,
     then this section shall be applied using the information 
     available as of such valuation date.
       ``(ii)(I) Clause (i) shall not apply for more than 2 
     consecutive plan years and valuation shall be under 
     subparagraph (A) with respect to any plan year to which 
     clause (i) does not apply by reason of this subclause.
       ``(II) Clause (i) shall not apply to the extent that more 
     frequent valuations are required under the regulations under 
     subparagraph (A).
       ``(iii) Information under clause (i) shall, in accordance 
     with regulations, be actuarially adjusted to reflect 
     significant differences in participants.
       ``(iv) An election under this subparagraph, once made, 
     shall be irrevocable without the consent of the Secretary of 
     the Treasury.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2000.

     SEC. __62. ESOP DIVIDENDS MAY BE REINVESTED WITHOUT LOSS OF 
                   DIVIDEND DEDUCTION.

       (a) In General.--Section 404(k)(2)(A) (defining applicable 
     dividends) is amended by striking ``or'' at the end of clause 
     (ii), by redesignating clause (iii) as clause (iv), and by 
     inserting after clause (ii) the following new clause:
       ``(iii) is, at the election of such participants or their 
     beneficiaries--

       ``(I) payable as provided in clause (i) or (ii), or
       ``(II) paid to the plan and reinvested in qualifying 
     employer securities, or''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. __63. REPEAL OF TRANSITION RULE RELATING TO CERTAIN 
                   HIGHLY COMPENSATED EMPLOYEES.

       (a) In General.--Paragraph (4) of section 1114(c) of the 
     Tax Reform Act of 1986 is hereby repealed.
       (b) Effective Date.--The repeal made by subsection (a) 
     shall apply to plan years beginning after December 31, 1999.

     SEC. __64. EMPLOYEES OF TAX-EXEMPT ENTITIES.

       (a) In General.--The Secretary of the Treasury shall modify 
     Treasury Regulations section 1.410(b)-6(g) to provide that 
     employees of an organization described in section 
     403(b)(1)(A)(i) of the Internal Revenue Code of 1986 who are 
     eligible to make contributions under section 403(b) of such 
     Code pursuant to a salary reduction agreement may be treated 
     as excludable with respect to a plan under section 401 (k) or 
     (m) of such Code that is provided under the same general 
     arrangement as a plan under such section 401(k), if--
       (1) no employee of an organization described in section 
     403(b)(1)(A)(i) of such Code is eligible to participate in 
     such section 401(k) plan or section 401(m) plan, and
       (2) 95 percent of the employees who are not employees of an 
     organization described in section 403(b)(1)(A)(i) of such 
     Code are eligible to participate in such plan under such 
     section 401 (k) or (m).
       (b) Effective Date.--The modification required by 
     subsection (a) shall apply as of the same date set forth in 
     section 1426(b) of the Small Business Job Protection Act of 
     1996.

     SEC. __65. CLARIFICATION OF TREATMENT OF EMPLOYER-PROVIDED 
                   RETIREMENT ADVICE.

       (a) In General.--Subsection (a) of section 132 (relating to 
     exclusion from gross income) is amended by striking ``or'' at 
     the end of paragraph (5), by striking the period at the end 
     of paragraph (6) and inserting ``, or'', and by adding at the 
     end the following new paragraph:
       ``(7) qualified retirement planning services.''.
       (b) Qualified Retirement Planning Services Defined.--
     Section 132 is amended by redesignating subsection (m) as 
     subsection (n) and by inserting after subsection (l) the 
     following:
       ``(m) Qualified Retirement Planning Services.--
       ``(1) In general.--For purposes of this section, the term 
     `qualified retirement planning services' means any retirement 
     planning service provided to an employee and his spouse by an 
     employer maintaining a qualified employer plan.
       ``(2) Nondiscrimination rule.--Subsection (a)(7) shall 
     apply in the case of highly compensated employees only if 
     such services are available on substantially the same terms 
     to each member of the group of employees normally provided 
     education and information regarding the employer's qualified 
     employer plan.
       ``(3) Qualified employer plan.--For purposes of this 
     subsection, the term `qualified employer plan' means a plan, 
     contract, pension, or account described in section 
     219(g)(5).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. __66. REPORTING SIMPLIFICATION.

       (a) Simplified Annual Filing Requirement for Owners and 
     Their Spouses.--
       (1) In general.--The Secretary of the Treasury shall modify 
     the requirements for filing annual returns with respect to 
     one-participant retirement plans to ensure that such plans 
     with assets of $250,000 or less as of the close of the plan 
     year need not file a return for that year.
       (2) One-participant retirement plan defined.--For purposes 
     of this subsection, the term ``one-participant retirement 
     plan'' means a retirement plan that--
       (A) on the first day of the plan year--
       (i) covered only the employer (and the employer's spouse) 
     and the employer owned the entire business (whether or not 
     incorporated), or
       (ii) covered only one or more partners (and their spouses) 
     in a business partnership (including partners in an S or C 
     corporation),
       (B) meets the minimum coverage requirements of section 
     410(b) of the Internal Revenue Code of 1986 without being 
     combined with any other plan of the business that covers the 
     employees of the business,
       (C) does not provide benefits to anyone except the employer 
     (and the employer's spouse) or the partners (and their 
     spouses),
       (D) does not cover a business that is a member of an 
     affiliated service group, a controlled group of corporations, 
     or a group of businesses under common control, and
       (E) does not cover a business that leases employees.
       (3) Other definitions.--Terms used in paragraph (2) which 
     are also used in section 414 of the Internal Revenue Code of 
     1986 shall have the respective meanings given such terms by 
     such section.
       (b) Simplified Annual Filing Requirement for Plans With 
     Fewer Than 25 Employees.--In the case of a retirement plan 
     which covers less than 25 employees on the first day of the 
     plan year and meets the requirements described in 
     subparagraphs (B), (D), and (E) of subsection (a)(2), the 
     Secretary of the Treasury shall provide for the filing of a 
     simplified annual return that is substantially similar to the 
     annual return required to be filed by a one-participant 
     retirement plan.
       (c) Effective Date.--The provisions of this section shall 
     take effect on January 1, 2001.

     SEC. __67. IMPROVEMENT OF EMPLOYEE PLANS COMPLIANCE 
                   RESOLUTION SYSTEM.

       The Secretary of the Treasury shall continue to update and 
     improve the Employee Plans Compliance Resolution System (or 
     any successor program) giving special attention to--

[[Page 28769]]

       (1) increasing the awareness and knowledge of small 
     employers concerning the availability and use of the program,
       (2) taking into account special concerns and circumstances 
     that small employers face with respect to compliance and 
     correction of compliance failures,
       (3) extending the duration of the self-correction period 
     under the Administrative Policy Regarding Self-Correction for 
     significant compliance failures,
       (4) expanding the availability to correct insignificant 
     compliance failures under the Administrative Policy Regarding 
     Self-Correction during audit, and
       (5) assuring that any tax, penalty, or sanction that is 
     imposed by reason of a compliance failure is not excessive 
     and bears a reasonable relationship to the nature, extent, 
     and severity of the failure.

     SEC. __68. MODIFICATION OF EXCLUSION FOR EMPLOYER PROVIDED 
                   TRANSIT PASSES.

       (a) In General.--Section 132(f )(3) (relating to cash 
     reimbursements) is amended by striking the last sentence.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1999.

     SEC. __69. REPEAL OF THE MULTIPLE USE TEST.

       (a) In General.--Paragraph (9) of section 401(m) is amended 
     to read as follows:
       ``(9) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out the purposes of 
     this subsection and subsection (k), including regulations 
     permitting appropriate aggregation of plans and 
     contributions.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. __70. FLEXIBILITY IN NONDISCRIMINATION, COVERAGE, AND 
                   LINE OF BUSINESS RULES.

       (a) Nondiscrimination.--
       (1) In general.--The Secretary of the Treasury shall, by 
     regulation, provide that a plan shall be deemed to satisfy 
     the requirements of section 401(a)(4) of the Internal Revenue 
     Code of 1986 if such plan satisfies the facts and 
     circumstances test under section 401(a)(4) of such Code, as 
     in effect before January 1, 1994, but only if--
       (A) the plan satisfies conditions prescribed by the 
     Secretary to appropriately limit the availability of such 
     test, and
       (B) the plan is submitted to the Secretary for a 
     determination of whether it satisfies such test.
     Subparagraph (B) shall only apply to the extent provided by 
     the Secretary.
       (2) Effective dates.--
       (A) Regulations.--The regulation required by paragraph (1) 
     shall apply to years beginning after December 31, 2000.
       (B) Conditions of availability.--Any condition of 
     availability prescribed by the Secretary under paragraph 
     (1)(A) shall not apply before the first year beginning not 
     less than 120 days after the date on which such condition is 
     prescribed.
       (b) Coverage Test.--
       (1) In general.--Section 410(b)(1) (relating to minimum 
     coverage requirements) is amended by adding at the end the 
     following:
       ``(D) In the case that the plan fails to meet the 
     requirements of subparagraphs (A), (B) and (C), the plan--
       ``(i) satisfies subparagraph (B), as in effect immediately 
     before the enactment of the Tax Reform Act of 1986,
       ``(ii) is submitted to the Secretary for a determination of 
     whether it satisfies the requirement described in clause (i), 
     and
       ``(iii) satisfies conditions prescribed by the Secretary by 
     regulation that appropriately limit the availability of this 
     subparagraph.

     Clause (ii) shall apply only to the extent provided by the 
     Secretary.''.
       (2) Effective dates.--
       (A) In general.--The amendment made by paragraph (1) shall 
     apply to years beginning after December 31, 2000.
       (B) Conditions of availability.--Any condition of 
     availability prescribed by the Secretary under regulations 
     prescribed by the Secretary under section 410(b)(1)(D) of the 
     Internal Revenue Code of 1986 shall not apply before the 
     first year beginning not less than 120 days after the date on 
     which such condition is prescribed.
       (c) Line of Business Rules.--The Secretary of the Treasury 
     shall, on or before December 31, 2000, modify the existing 
     regulations issued under section 414(r) of the Internal 
     Revenue Code of 1986 in order to expand (to the extent that 
     the Secretary determines appropriate) the ability of a 
     pension plan to demonstrate compliance with the line of 
     business requirements based upon the facts and circumstances 
     surrounding the design and operation of the plan, even though 
     the plan is unable to satisfy the mechanical tests currently 
     used to determine compliance.

     SEC. __71. EXTENSION TO INTERNATIONAL ORGANIZATIONS OF 
                   MORATORIUM ON APPLICATION OF CERTAIN 
                   NONDISCRIMINATION RULES APPLICABLE TO STATE AND 
                   LOCAL PLANS.

       (a) In General.--Subparagraph (G) of section 401(a)(5), 
     subparagraph (H) of section 401(a)(26), subparagraph (G) of 
     section 401(k)(3), and paragraph (2) of section 1505(d) of 
     the Taxpayer Relief Act of 1997 are each amended by inserting 
     ``or by an international organization which is described in 
     section 414(d)'' after ``or instrumentality thereof)''.
       (b) Conforming Amendments.--
       (1) The headings for subparagraph (G) of section 401(a)(5) 
     and subparagraph (H) of section 401(a)(26) are each amended 
     by inserting ``and international organization'' after 
     ``governmental''.
       (2) Subparagraph (G) of section 401(k)(3) is amended by 
     inserting ``State and local governmental and international 
     organization plans.--'' after ``(G)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.

                        PART VI--PLAN AMENDMENTS

     SEC. __81. PROVISIONS RELATING TO PLAN AMENDMENTS.

       (a) In General.--If this section applies to any plan or 
     contract amendment--
       (1) such plan or contract shall be treated as being 
     operated in accordance with the terms of the plan during the 
     period described in subsection (b)(2)(A), and
       (2) such plan shall not fail to meet the requirements of 
     section 411(d)(6) of the Internal Revenue Code of 1986 by 
     reason of such amendment.
       (b) Amendments to Which Section Applies.--
       (1) In general.--This section shall apply to any amendment 
     to any plan or annuity contract which is made--
       (A) pursuant to any amendment made by this title, or 
     pursuant to any regulation issued under this title, and
       (B) on or before the last day of the first plan year 
     beginning on or after January 1, 2003.
     In the case of a government plan (as defined in section 
     414(d) of the Internal Revenue Code of 1986), this paragraph 
     shall be applied by substituting ``2005'' for ``2003''.
       (2) Conditions.--This section shall not apply to any 
     amendment unless--
       (A) during the period--
       (i) beginning on the date the legislative or regulatory 
     amendment described in paragraph (1)(A) takes effect (or in 
     the case of a plan or contract amendment not required by such 
     legislative or regulatory amendment, the effective date 
     specified by the plan), and
       (ii) ending on the date described in paragraph (1)(B) (or, 
     if earlier, the date the plan or contract amendment is 
     adopted),

     the plan or contract is operated as if such plan or contract 
     amendment were in effect, and
       (B) such plan or contract amendment applies retroactively 
     for such period.
                     Subtitle D--Revenue Provisions

     SEC. __91. MODIFICATION OF INSTALLMENT METHOD AND REPEAL OF 
                   INSTALLMENT METHOD FOR ACCRUAL METHOD 
                   TAXPAYERS.

       (a) Repeal of Installment Method for Accrual Basis 
     Taxpayers.--
       (1) In general.--Subsection (a) of section 453 (relating to 
     installment method) is amended to read as follows:
       ``(a) Use of Installment Method.--
       ``(1) In general.--Except as otherwise provided in this 
     section, income from an installment sale shall be taken into 
     account for purposes of this title under the installment 
     method.
       ``(2) Accrual method taxpayer.--The installment method 
     shall not apply to income from an installment sale if such 
     income would be reported under an accrual method of 
     accounting without regard to this section. The preceding 
     sentence shall not apply to a disposition described in 
     subparagraph (A) or (B) of subsection (l)(2).''.
       (2) Conforming amendments.--Sections 453(d)(1), 453(i)(1), 
     and 453(k) of such Code are each amended by striking ``(a)'' 
     each place it appears and inserting ``(a)(1)''.
       (b) Modification of Pledge Rules.--Paragraph (4) of section 
     453A(d) (relating to pledges, etc., of installment 
     obligations) is amended by adding at the end the following: 
     ``A payment shall be treated as directly secured by an 
     interest in an installment obligation to the extent an 
     arrangement allows the taxpayer to satisfy all or a portion 
     of the indebtedness with the installment obligation.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales or other dispositions occurring on or 
     after the date of the enactment of this Act.

     SEC. __92. MODIFICATION OF ESTIMATED TAX RULES FOR CLOSELY 
                   HELD REAL ESTATE INVESTMENT TRUSTS.

       (a) In General.--Subsection (e) of section 6655 (relating 
     to estimated tax by corporations) is amended by adding at the 
     end the following new paragraph:
       ``(5) Treatment of certain reit dividends.--
       ``(A) In general.--Any dividend received from a closely 
     held real estate investment trust by any person which owns 
     (after application of subsections (d)(5) and (l)(3)(B) of 
     section 856) 10 percent or more (by vote or value) of the 
     stock or beneficial interests in the trust shall be taken 
     into account in computing annualized income installments 
     under paragraph (2) in a manner similar to the manner under 
     which partnership income inclusions are taken into account.
       ``(B) Closely held reit.--For purposes of subparagraph (A), 
     the term `closely held real estate investment trust' means a 
     real estate

[[Page 28770]]

     investment trust with respect to which 5 or fewer persons own 
     (after application of subsections (d)(5) and (l)(3)(B) of 
     section 856) 50 percent or more (by vote or value) of the 
     stock or beneficial interests in the trust.''
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to estimated tax payments due on or after 
     November 15, 1999.
                                 ______
                                 

          HUTCHISON (AND BROWNBACK) AMENDMENTS NOS. 2548-2549

  (Ordered to lie on the table.)
  Mrs. HUTCHISON (for herself and Mr. Brownback) submitted two 
amendments intended to be proposed by them to the bill, S. 625, supra; 
as follows:

                           Amendment No. 2548

       At the appropriate place in the bill, add the following:

     SEC.   . HOMESTEAD EXEMPTION OPT OUT.

       The provisions relating to a Federal homestead exemption 
     shall not apply to debtors if applicable State law provides 
     by statute that such provisions shall not apply to debtors 
     and shall not take effect in any State before the end of the 
     first regular session of the State legislature following the 
     date of enactment of this Act.
                                  ____


                           Amendment No. 2549

       At the end of the amendment add the following: ``The 
     preceding provisions relating to a limitation on State 
     homestead exemptions shall not apply to debtors if applicable 
     State law provides by statute that such provisions shall not 
     apply to debtors and shall not take effect in any State 
     before the end of the first regular session of the State 
     legislature following the date of enactment of this Act.''.
                                 ______
                                 

                      HUTCHISON AMENDMENT NO. 2550

  (Ordered to lie on the table.)
  Mrs. HUTCHISON submitted an amendment intended to be proposed by her 
to the bill, S. 625, supra; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC.   . STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 1 year after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                 ______
                                 

          HUTCHISON (AND BROWNBACK) AMENDMENTS NOS. 2551-2647

  (Ordered to lie on the table.)
  Mrs. HUTCHISON (for herself and Mr. Brownback) submitted 97 
amendments intended to be proposed by them to the bill, S. 625, supra; 
as follows:

                           Amendment No. 2551

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 330 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2552

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 320 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2553

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 310 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2554

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 300 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2555

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 370 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2556

       At the appropriate place in the bill, insert the following 
     new section:

[[Page 28771]]



     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 380 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2557

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 390 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2558

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 395 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2559

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 400 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2560

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 426 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2561

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 425 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2562

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 420 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2563

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 415 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).

[[Page 28772]]

     
                                  ____
                           Amendment No. 2564

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 410 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2565

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 405 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2566

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 200 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2567

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 201 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2568

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 202 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2569

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 203 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2570

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 204 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2571

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 205 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and

[[Page 28773]]

       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2572

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 206 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2573

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 207 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2574

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 208 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2575

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 209 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2576

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 210 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2577

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 211 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2578

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 212 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2579

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 213 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);

[[Page 28774]]

       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2580

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 214 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2581

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 215 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2582

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 216 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2583

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 217 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2584

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 218 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2585

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 220 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2586

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 221 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2587

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 222 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption

[[Page 28775]]

     in those States would be prohibited from doing so by the 
     provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2588

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 223 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2589

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 224 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2590

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 225 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2591

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 226 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2592

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 227 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2593

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 228 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2594

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 229 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2595

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 230 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors

[[Page 28776]]

     utilizing the homestead exemption in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2596

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 231 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2597

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 343 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2598

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 342 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2599

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 341 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2600

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 340 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2601

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 339 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2602

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 338 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2603

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 290 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in

[[Page 28777]]

     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2604

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 350 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2605

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 349 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2606

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 348 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2607

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 347 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2608

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 346 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2609

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 345 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2610

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 344 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2611

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any

[[Page 28778]]

     findings and recommendations not later than 243 days after 
     the date of enactment of this Act regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2612

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 244 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2613

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 245 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2614

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 246 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2615

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 247 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2616

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 248 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2617

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 249 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2618

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 250 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2619

       At the appropriate place in the bill, insert the following 
     new section:

[[Page 28779]]



     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 255 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2620

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 260 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2621

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 265 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2622

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 270 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2623

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 275 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2624

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 280 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2625

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 241 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2626

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 242 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).

[[Page 28780]]

     
                                  ____
                           Amendment No. 2627

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 237 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2628

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 238 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2629

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 239 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2630

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 240 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2631

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 236 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2632

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 362 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2633

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 363 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2634

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 232 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and

[[Page 28781]]

       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2635

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 234 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2636

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 235 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2637

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 364 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2638

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 361 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2639

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 352 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2640

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 353 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2641

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 354 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2642

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 356 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);

[[Page 28782]]

       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2643

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 357 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2644

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 359 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2645

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 360 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2646

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 358 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                  ____


                           Amendment No. 2647

       At the appropriate place in the bill, insert the following 
     new section:

     SEC. __. STUDY OF EFFECTS OF THE HOMESTEAD EXEMPTION.

       The Comptroller General shall conduct a nationwide study 
     and report to Congress any findings and recommendations not 
     later than 351 days after the date of enactment of this Act 
     regarding--
       (1) the utilization of State homestead exemption in States 
     where there is no limitation on the homestead exemption or in 
     States where the limitation exceeds $100,000 to determine the 
     income level of the debtors utilizing the homestead exemption 
     in those States;
       (2) the extent to which those individuals who have utilized 
     the homestead exemption in those States would be prohibited 
     from doing so by the provisions in this Act--
       (A) restricting utilization of the homestead exemption to 
     those who have resided in the State for at least 2 years 
     (section 303);
       (B) providing for enhanced judicial scrutiny of any asset 
     transfers to the homestead within 2 years of the date of 
     filing bankruptcy (section 303); and
       (C) the presumption against allowance of filing for chapter 
     7 (liquidation of assets) for certain high-income individuals 
     (section 102).
                                 ______
                                 

                      JEFFORDS AMENDMENT NO. 2648

  (Ordered to lie on the table.)
  Mr. JEFFORDS submitted an amendment intended to be proposed by him to 
the bill, S. 625, supra; as follows:

       At the end, add the following:
TITLE __--PROTECTION FROM THE IMPACT OF BANKRUPTCY OF CERTAIN ELECTRIC 
                               UTILITIES

     SECTION __01. SHORT TITLE.

       This title may be cited as the ``Emergency Imported 
     Electric Power Price Reduction Act of 1999''.

     SEC. __02. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) the protection of the public health and welfare, the 
     preservation of national security, and the regulation of 
     interstate and foreign commerce require that electric power 
     imported into the United States be priced fairly and 
     competitively;
       (2) the importation of electric power into the United 
     States is a matter vested with the public interest that--
       (A) involves an essential and extensively regulated 
     infrastructure industry; and
       (B) affects consumers, the cost of goods manufactured and 
     services rendered, and the economic well-being and livelihood 
     of individuals and society;
       (3) it is essential that imported electric power be 
     priced--
       (A) in a manner that is competitive with domestic electric 
     power and thereby contribute to robust and sound national and 
     regional economies; and
       (B) not at a rate that is so high as to result in the 
     imminent bankruptcy of electric utilities in a State; and
       (4) the purchase of imported electric power by the Vermont 
     Joint Owners under the Firm Power and Energy Contract with 
     Hydro-Quebec dated December 4, 1987--
       (A) is not consistent with the findings stated in 
     paragraphs (1), (2), and (3); and
       (B) threatens the economic well-being of the States and 
     regions in which the imported electric power is provided 
     contrary to the public policy of the United States as set 
     forth in the findings stated in paragraphs (1), (2), and (3).
       (b) Purposes.--The purposes of this title are--
       (1) to facilitate the public policy of the United States as 
     set forth in the findings stated in paragraphs (1), (2), and 
     (3) of subsection (a);
       (2) to remove a serious threat to the economic well-being 
     of the States and regions in which imported electric power is 
     provided under the contract referred to in section 
     __02(a)(4); and
       (3) to facilitate revisions to the price elements of the 
     contract referred to in section __02(a)(4) by declaring and 
     making unlawful, effective 180 days after the date of 
     enactment of this Act, the contract as it exists on the date 
     of enactment of this Act.

     SEC. __03. UNLAWFUL CONTRACT AND AMENDED CONTRACT.

       (a) In General.--Effective on the date that is 180 days 
     after the date of enactment of this Act, the contract 
     referred to in section __02(a)(4), as the contract exists on 
     the date of enactment of this Act, shall be void.
       (b) Amendment of Contract.--This title does not preclude 
     the parties to the contract referred to in section __02(a)(4) 
     from amending the contract or entering into a new contract 
     after the date of enactment of this Act in a manner that is 
     consistent with the findings and purposes of this title.

[[Page 28783]]



     SEC. __04. EXCLUSIVE ENFORCEMENT.

       (a) In General.--Only the Attorney General of a State in 
     which electric power is provided under the contract referred 
     to in section __02(a)(4), as the contract may be amended 
     after the date of enactment of this Act, may bring a civil 
     action in United States district court for an order that--
       (1) declares the amended contract not consistent with the 
     findings and purposes of this title and is therefore void;
       (2) enjoins performance of the amended contract; and
       (3) relieves the electric utilities that are party to the 
     amended contract of any liability under the contract.
       (b) Timing.--A civil action under subsection (a) shall be 
     brought not later than 1 year after the date of the amended 
     contract or new contract.
                                 ______
                                 

                        GRAMM AMENDMENT NO. 2649

  (Ordered to lie on the table.)
  Mr. GRAMM submitted an amendment intended to be proposed by him to 
the bill, S. 625, supra; as follows:

       At the end of the bill, add the following new title:

                  TITLE XX--CONSUMER CREDIT DISCLOSURE

     SEC. XX01. ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT 
                   PLAN.

       (a) Minimum Payment Disclosures.--Section 127(b) of the 
     Truth in Lending Act (15 U.S.C. 1637(b)) is amended by adding 
     at the end the following:
       ``(11)(A) In the case of an open end credit plan that 
     requires a minimum monthly payment of not more than 4 percent 
     of the balance on which finance charges are accruing, the 
     following statement, located on the front of the billing 
     statement, disclosed clearly and conspicuously, in typeface 
     no smaller than the largest typeface used to make other clear 
     and conspicuous disclosures under this subsection: ``Minimum 
     Payment Warning: Making only the minimum payment will 
     increase the interest you pay and the time it takes to repay 
     your balance. For example, making only a 2% minimum monthly 
     payment on a balance of $1,000 at an interest rate of 17% 
     would take 88 months to repay the balance in full. For an 
     estimate of the time it would take to repay your balance, 
     making only minimum payments, call this toll-free number: 
     XXXXXX. A creditor subject to this subparagraph (A) with 
     total assets not exceeding $250 million and that is an 
     insured depository institution as defined in Section 3(c)(2) 
     of the Federal Deposit Insurance Act or a depository 
     institution insured by the National Credit Union Share 
     Insurance Fund shall not be required to provide a toll-free 
     telephone number, but may instead recoup reasonable average 
     costs of providing telephone information access to 
     consumers.'.
       ``(B) In the case of an open end credit plan that requires 
     a minimum monthly payment of more than 4 percent of the 
     balance on which finance charges are accruing, the following 
     statement, in a prominent location on the front of the 
     billing statement, disclosed clearly and conspicuously, in 
     typeface no smaller than the largest typeface used to make 
     other clear and conspicuous disclosures under this 
     subsection: `Minimum Payment Warning: Making only the 
     required minimum payment will increase the interest you pay 
     and the time it takes to repay your balance. Making a 5% 
     minimum monthly payment on a balance of $300 at an interest 
     rate of 17% would take 24 months to repay the balance in 
     full. For an estimate of the time it would take to repay your 
     balance, making only minimum monthly payments, call this 
     toll-free number: XXXXXX. A creditor subject to this 
     subparagraph (B) with total assets not exceeding $250 million 
     and that is an insured depository institution as defined in 
     Section 3(c)(2) of the Federal Deposit Insurance Act or a 
     depository institution insured by the National Credit Union 
     Share Insurance Fund shall not be required to provide a toll-
     free telephone number, but may instead recoup reasonable 
     average costs of providing telephone information access to 
     consumers.'.
       ``(C) Notwithstanding subparagraphs (A) and (B), in the 
     case of a creditor with respect to which compliance with this 
     title is enforced by the Federal Trade Commission, the 
     following statement, in a prominent location on the front of 
     the billing statement, disclosed clearly and conspicuously, 
     in typeface no smaller than the largest typeface used to make 
     other clear and conspicuous disclosures under this 
     subsection: `Minimum Payment Warning: Making only the 
     required minimum payment will increase the interest you pay 
     and the time it takes to repay your balance. For example, 
     making only a 5% minimum monthly payment on a balance of $300 
     at an interest rate of 17% would take 24 months to repay the 
     balance in full. For an estimate of the time it would take to 
     repay your balance, making only minimum monthly payments, 
     call the Federal Trade Commission at this toll-free number: 
     XXXXXX'.
       ``(D) Notwithstanding subparagraph (B) or (C), in complying 
     with either such subparagraph, a creditor may substitute an 
     example based on an interest rate that is greater than 17 
     percent. Any creditor who is subject to subparagraph (B) may 
     elect to provide the disclosure required under subparagraph 
     (A) in lieu of the disclosure required under subparagraph 
     (B).
       ``(E) The Board shall, by rule, periodically recalculate, 
     as necessary, the interest rate and repayment period under 
     subparagraphs (A), (B), and (C).
       ``(F) The telephone number disclosed by a creditor or the 
     Federal Trade Commission under subparagraph (A) or (B) or 
     (G), as appropriate, may be a telephone number established 
     and maintained by the creditor or the Federal Trade 
     Commission, as appropriate, or may be a telephone number 
     established and maintained by a third party for use by the 
     creditor or multiple creditors, or the Federal Trade 
     Commission, as appropriate. The telephone number may connect 
     consumers to an automated device through which consumers may 
     obtain information described in subparagraph (A), (B) or (C) 
     by inputting information using a touch-tone telephone or 
     similar device, if consumers whose telephones are not 
     equipped to use such automated device are provided the 
     opportunity to be connected to an individual from whom the 
     information described in subparagraph (A), (B) or (C), as 
     applicable, may be obtained. A person that receives a request 
     for information described in subparagraph (A), (B) or (C) 
     from an obligor through the telephone number disclosed under 
     subparagraph (A), (B) or (C), as applicable, shall disclose 
     in response to such request only the information set forth in 
     the formula promulgated by the Board under subparagraph (H) 
     (i).
       ``(G) The Federal Trade Commission shall establish and 
     maintain a toll-free number for the purpose of providing to 
     consumers the information required to be disclosed under 
     subparagraph (C).
       ``(H) The Board shall--
       ``(i)(a) establish a formula for the computation of the 
     approximate number of months that it would take to repay an 
     outstanding balance and the approximate total cost to the 
     consumer, including interest and principal payments, of 
     paying that balance in full, if the consumer pays only the 
     required minimum monthly payments and if no other advances 
     are made; and (b) in establishing the formula required under 
     (i)(a), the Board may use such data and assumptions as it 
     deems necessary from time to time to carry out the purposes 
     of this section.
       ``(ii) establish the formula required under clause (i) by 
     assuming--
       ``(I) a significant number of different annual percentage 
     rates;
       ``(II) a significant number of different account balances;
       ``(III) a significant number of different minimum payment 
     amounts;
       ``(IV) that only minimum monthly payments are made and no 
     additional extensions of credit are obtained;
       ``(V) one or more balance computation methods or one or 
     more periods to be used as the number of days per billing 
     cycle; and
       ``(VI) such other facts or data as the Board shall deem 
     necessary to carry out the purposes of this section; and
       ``(iii) promulgate regulations that provide instructional 
     guidance regarding the manner in which the information 
     contained in the formula established under clause (i) should 
     be used in responding to the request of an obligor for any 
     information required to be disclosed under subparagraph (A), 
     (B), or (C).''.
       (b) Exception for Charge Card Accounts.--The disclosure 
     requirements under this section do not apply to a charge 
     account, the primary purpose of which is to require payment 
     of charges in full each month.
       (c) Exception for Actual Disclosure.--Creditors that 
     maintain a toll-free telephone number for the purpose of 
     providing customers with the actual number of months that it 
     would take to repay an outstanding balance are exempt from 
     the requirements of paragraphs (11) (A) and (B).
       (d) Regulatory Implementation.--The Board of Governors of 
     the Federal Reserve System (hereafter in this Act referred to 
     as the ``Board'') shall promulgate regulations implementing 
     the requirements of section 127(b)(11) of the Truth in 
     Lending Act, as added by subsection (a) of this section. 
     Section 127(b)(11) of the Truth in Lending Act, as added by 
     subsection (a) of this section, and the regulations issued 
     under this subsection shall not take effect until the later 
     of 18 months after the date of enactment of this Act or 12 
     months after the publication of such regulations by the 
     Board.
       (e) Study of Financial Disclosures.--
       (1) In general.--The Board may conduct a study to determine 
     the types of information available to potential borrowers 
     from consumer credit lending institutions regarding: factors 
     qualifying potential borrowers for credit, repayment 
     requirements, and the consequences of default.
       (2) Factors for consideration.--In conducting the study 
     under paragraph (1), the Board may, in consultation with the 
     other Federal banking agencies (as defined in Section 3 of 
     the Federal Deposit Insurance Act), the National Credit Union 
     Administration and the Federal Trade Commission, consider the 
     extent to which--
       (A) consumers, in establishing new credit arrangements, are 
     aware of their existing payment obligations, the need to 
     consider those obligations in deciding to take on new

[[Page 28784]]

     credit, and how taking on excessive credit can result in 
     financial difficulty;
       (B) minimum periodic payment features offered in connection 
     with open end credit plans impact consumer default rates;
       (C) consumers make only the minimum payment under open end 
     credit plans;
       (D) consumers are aware that making only minimum payments 
     will increase the cost and repayment period of an open end 
     credit obligation; and
       (E) the availability of low minimum payment options is a 
     cause of consumers experiencing financial difficulty.
       (3) Report to congress.--Before the end of the 2-year 
     period beginning on the date of enactment of this Act, 
     findings of the Board in connection with the study, if 
     conducted, shall be submitted to Congress. Such report also 
     shall include recommendations for legislative initiatives, if 
     any, of the Board based upon its findings.

     SEC. XX02. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED 
                   BY A DWELLING.

       (a) Open End Credit Extensions.--
       (1) Credit applications.--Section 127A(a)(13) of the Truth 
     in Lending Act (15 U.S.C. 1637a(a)(13)) is amended--
       (A) by striking ``consultation of tax advisor.--A statement 
     that the'' and inserting the following: ``tax 
     deductibility.--A statement that--
       ``(A) the''; and
       (B) by striking the period at the end and inserting the 
     following: ``; and
       ``(B) in any case in which the extension of credit exceeds 
     the fair market value (as defined by the Board) of the 
     dwelling, the interest on the portion of the credit extension 
     that is greater than the fair market value (as defined by the 
     Board) of the dwelling is not tax deductible for Federal 
     income tax purposes.''.
       (2) Credit advertisements.--Section 147(b) of the Truth in 
     Lending Act (15 U.S.C. 1665b(b)) is amended--
       (A) by striking ``If any'' and inserting the following:
       ``(1) In general.--If any''; and
       (B) by adding at the end the following:
       ``(2) Credit in excess of fair market value.--Each 
     advertisement described in subsection (a) that relates to an 
     extension of credit that may exceed the fair market value (as 
     defined by the Board) of the dwelling, and which 
     advertisement is disseminated in paper form to the public or 
     through the Internet, as opposed to by radio or television), 
     shall include a clear and conspicuous statement that--
       ``(A) the interest on the portion of the credit extension 
     that is greater than the fair market value of the dwelling is 
     not tax deductible for Federal income tax purposes; and
       ``(B) the consumer may want to consult a tax advisor for 
     further information regarding the deductibility of interest 
     and charges.''.
       (b) Non-Open End Credit Extensions.--
       (1) Credit applications.--Section 128 of the Truth in 
     Lending Act (15 U.S.C. 1638) is amended--
       (A) in subsection (a), by adding at the end the following:
       ``(15) In the case of a consumer credit transaction that is 
     secured by the principal dwelling of the consumer, in which 
     the extension of credit may exceed the fair market value (as 
     defined by the Board) of the dwelling, a clear and 
     conspicuous statement that--
       ``(A) the interest on the portion of the credit extension 
     that is greater than the fair market value of the dwelling is 
     not tax deductible for Federal income tax purposes; and
       ``(B) the consumer may want to consult a tax advisor for 
     further information regarding the deductibility of interest 
     and charges. ''; and
       (B) in subsection (b), by adding at the end the following:
       ``(3) In the case of a credit transaction described in 
     paragraph (15) of subsection (a), disclosures required by 
     that paragraph shall be made to the consumer at the time of 
     application for such extension of credit.''.
       (2) Credit Advertisements.--Section 144 of the Truth in 
     Lending Act (15 U.S.C. 1664) is amended by adding at the end 
     the following:
       ``(e) Each advertisement to which this section applies that 
     relates to a consumer credit transaction that is secured by 
     the principal dwelling of a consumer in which the extension 
     of credit may exceed the fair market value (as defined by the 
     Board) of the dwelling, and which advertisement is 
     disseminated in paper form to the public or through the 
     Internet, as opposed to by radio or television, shall clearly 
     and conspicuously state that--
       ``(1) the interest on the portion of the credit extension 
     that is greater than the fair market value of the dwelling is 
     not tax deductible for Federal income tax purposes; and
       ``(2) the consumer may want to consult a tax advisor for 
     further information regarding the deductibility of interest 
     and charges.''.
       (c) Effective Date.--This section and the amendments made 
     by this section shall become effective 12 months after the 
     date of enactment of this Act.

     SEC. __03. DISCLOSURES RELATED TO ``INTRODUCTORY RATES''.

       (a) Section 127(c) of the Truth in Lending Act (15 U.S.C. 
     16379c)) is amended by adding at the end the following:
       ``(6) Additional notice concerning `introductory rates'.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an application or solicitation to open a credit card account 
     and all promotional materials accompanying such application 
     or solicitation, for which a disclosure is required under 
     paragraph (1), and that offers a temporary annual percentage 
     rate, shall--
       ``(i) use the term `introductory' in immediate proximity to 
     each listing of the temporary annual percentage rate 
     applicable to such account, which term shall appear clearly 
     and conspicuously;
       ``(ii) if the annual percentage rate that will apply after 
     the end of the temporary rate period will be a fixed rate, 
     state the following clearly and conspicuously in a prominent 
     location closely proximate to the first listing of the 
     temporary annual percentage rate; or if the first listing is 
     not the most prominent listing, then immediately proximate to 
     the most prominent listing of the temporary annual percentage 
     rate (other than a listing of the temporary annual percentage 
     rate in the tabular format described in section 122(c)): the 
     time period in which the introductory period will end and the 
     annual percentage rate that will apply after the end of the 
     introductory period;
       ``(iii) if the annual percentage rate that will apply after 
     the end of the temporary rate period will vary in accordance 
     with an index, state the following clearly and conspicuously 
     in a prominent location closely proximate to the first 
     listing of the temporary annual percentage rate; or if the 
     first listing is not the most prominent listing, then closely 
     proximate to the most prominent listing of the temporary 
     annual percentage rate (other than a listing in the tabular 
     format prescribed by section 122(c)): The period in which the 
     introductory period will end and an annual percentage rate 
     that was in effect within 60 days before mailing the 
     application or solicitation.
       ``(B) Exception.--Clauses (ii) and (iii) of subparagraph 
     (A) do not apply with respect to any listing of a temporary 
     annual percentage rate on an envelope or other enclosure in 
     which an application or solicitation to open a credit card 
     account is mailed
       ``(C) Conditions for introductory rates.--An application or 
     solicitation to open a credit card account for which a 
     disclosure is required under paragraph (1), and that offers a 
     temporary annual percentage rate shall, if that rate is 
     revocable under any circumstance or upon any event, clearly 
     and conspicuously disclose, in a prominent manner on or with 
     such application or solicitation--
       ``(i) a general description of the circumstances or events 
     that may result in the revocation of the temporary annual 
     percentage rate, including representative examples; and
       ``(ii) if the annual percentage rate that will apply upon 
     the revocation of the temporary annual percentage rate--
       ``(I) will be a fixed rate, the annual percentage rate that 
     will apply upon the revocation of the temporary annual 
     percentage rate; or
       ``(II) will vary in accordance with an index, an annual 
     percentage rate that was in effect within 60 days before 
     mailing the application or solicitation.
       ``(D) Definitions.--In this paragraph--
       ``(i) the terms `temporary annual percentage rate' and 
     `temporary annual percentage rate' mean any rate of interest 
     applicable to a credit card account for an introductory 
     period of less than 1 year, if that rate is less than an 
     annual percentage rate that was in effect within 60 days 
     before mailing the application or solicitation; and
       ``(ii) the term `introductory period' means the maximum 
     time period for which the temporary annual percentage rate 
     may be applicable.
       ``(E) Relation to other disclosure requirements.--Nothing 
     in this paragraph may be construed to supersede subsection 
     (a) of Section 122, or any disclosure required by paragraph 
     (1) or any other provision of this subsection.''.
       (b) Regulatory Implementation.--The Board of Governors of 
     the Federal Reserve System (hereafter in this Act referred to 
     as the ``Board'') shall promulgate regulations implementing 
     the requirements of section 127 of the Truth in Lending Act, 
     as amended by subsection (a) of this section. Any provision 
     set forth in subsection (a) and such regulations shall not 
     take effect until the later of 18 months after the date of 
     enactment of this Act or 12 months after the publication of 
     such regulations by the Board.

     SEC. XX04. INTERNET-BASED CREDIT CARD SOLICITATIONS.

       (a) Section 127(c) of the Truth in Lending Act (15 U.S.C. 
     1637(c)) is amended by adding at the end the following:
       ``(7) Internet-based applications and solicitations.--
       ``(A) In general.--In any solicitation to open a credit 
     card account for any person under an open end consumer credit 
     plan using the Internet or other interactive computer 
     service, the person making the solicitation shall clearly and 
     conspicuously disclose--

[[Page 28785]]

       ``(i) the information described in subparagraphs (A) and 
     (B) of paragraph (1); and
       ``(ii) the disclosures described in paragraph (6).
       ``(B) Form of disclosure.--The disclosures required by 
     subparagraph (A) shall be--
       ``(i) readily accessible to consumers in close proximity to 
     the solicitation to open a credit card account; and
       ``(ii) updated regularly to reflect the current policies, 
     terms, and fee amounts applicable to the credit card account.
       ``(C) Definitions.--For purposes of this paragraph--
       ``(i) the term `Internet' means the international computer 
     network of both Federal and non-Federal interoperable packet 
     switched data networks; and
       ``(ii) the term `interactive computer service' means any 
     information service, system, or access software provider that 
     provides or enables computer access by multiple users to a 
     computer server, including specifically a service or system 
     that provides access to the Internet and such systems 
     operated or services offered by libraries or educational 
     institutions.''.
       (b) Regulatory Implementation.--The Board of Governors of 
     the Federal Reserve System (hereafter in this Act referred to 
     as the ``Board'') shall promulgate regulations implementing 
     the requirements of section 127 of the Truth in Lending Act, 
     as amended by subsection (a) of this section. Any provision 
     set forth in subsection (a) and such regulations shall not 
     take effect until the later of 18 months after the date of 
     enactment of this Act or 12 months after the publication of 
     such regulations by the Board.

     SEC. XX05. DISCLOSURES RELATED TO LATE PAYMENT DEADLINES AND 
                   PENALTIES.

       (a) Section 127(b) of the Truth in Lending Act (15 U.S.C. 
     1637(b)) is amended by adding at the end the following:
       ``(12) If a late payment fee is to be imposed due to the 
     failure of the obligor to make payment on or before a 
     required payment due date the following shall be started 
     clearly and conspicuously on the billing statement:
       ``(A) The date that payment is due or, if different, the 
     earliest date on which a late payment fee may be charged.
       ``(B) The amount of the late payment fee to be imposed if 
     payment is made after such date.''.
       (b) Regulatory Implementation.--The Board of Governors of 
     the Federal Reserve System (hereafter in this Act referred to 
     as the ``Board'') shall promulgate regulations implementing 
     the requirements of section 127 of the Truth in Lending Act, 
     as amended by subsection (a) of this section. Any provision 
     set forth in subsection (a) and such regulations shall not 
     take effect until the later of 18 months after the date of 
     enactment of this Act or 12 months after the publication of 
     such regulations by the Board.

     SEC. XX06. TERMINATION OF OPEN-END CONSUMER CREDIT ACCOUNTS 
                   FOR FAILURE TO INCUR FINANCE CHARGES.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is 
     amended by adding at the end the following:
       ``(h) Termination of Open-End Consumer Credit Accounts for 
     Failure to Incur Finance Charges.--The Board may conduct or 
     supervise surveys to determine whether and to what extent 
     open-end consumer credit accounts may be terminated by 
     creditors solely based upon the accountholder's failure to 
     incur finance charges on the account. If the results of such 
     surveys produce results that in any significant manner, as 
     determined by the Board, establish materially adverse impacts 
     upon open-end consumer credit accountholders arising from 
     terminations based solely upon their failure to incur finance 
     charges, the Board shall present such findings to the 
     Congress and recommendations for legislative initiatives, if 
     any, based upon such findings. The Board also may promulgate 
     regulations pursuant to its authority under the Truth in 
     Lending Act. Any such regulations shall not take effect until 
     12 months after publication of such regulations by the 
     Board.''.

     SEC. XX07. DUAL USE DEBIT CARD.

       (a) Report Required.--The Board may conduct a study of and 
     present to Congress a report containing its analysis of 
     consumer protections under existing law to limit the 
     liability of consumers for unauthorized use of a debit card 
     or similar access device. Such report shall include 
     recommendations for legislative initiatives, if any, of the 
     Board based upon its findings.
       (b) Considerations.--In preparing the report under 
     subsection (a), the Board may include--
       (1) the extent to which section 909 of the Electronic Fund 
     Transfer Act (15 U.S.C. 1693g), as in effect at the time of 
     the report, and the implementing regulations promulgated by 
     the Board to carry out that section provide unauthorized use 
     liability protection for consumers;
       (2) the extent to which any voluntary industry rules have 
     or may enhance the level of protection afforded consumers in 
     connection with such unauthorized use liability; and
       (3) whether amendments to the Electronic Fund Transfer Act 
     (15 U.S.C. 1693 et seq.), or revisions to regulations 
     promulgated by the Board to carry out that Act, are necessary 
     to provide to further address protection for consumers 
     concerning unauthorized use liability.

     SEC. XX08. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO 
                   DEPENDENT STUDENTS.

       (A) Study--
       (1) In General.--The Board, in consultation with such other 
     departments, agencies, or other public or quasi-public 
     entities, as it may deem necessary, may conduct a study 
     regarding the significance of the impact, if any, of the 
     extension of credit described in paragraph (2) on the rate of 
     personal bankruptcy cases filed and closed under title 11, 
     United States Code excluding those cases in which the 
     discharges have been revoked by a court of competent 
     jurisdiction.
       (2) Extension of Credit.--The extension of credit referred 
     to in paragraph (1) is the extension of credit to individuals 
     who are--
       (A) claimed as dependents for purposes of the Internal 
     Revenue Code of 1986; and
       (B) enrolled within one year of successfully completing all 
     required secondary education requirements and on a full-time 
     basis in postsecondary educational institutions.
       (3) Personal Bankruptcy Cases.--Personal bankruptcy cases 
     referred to in paragraph (1) are those cases filed and 
     resolved and not overturned by a court of competent 
     jurisdiction within the 5-year period ending on the date of 
     enactment of this Act.
       (b) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Board shall submit to the Congress 
     a report summarizing the results of the study conducted under 
     subsection (a), if conducted.
                                 ______
                                 

                        REED AMENDMENT NO. 2650

  (Ordered to lie on the table.)
  Mr. REED submitted an amendment intended to be proposed by him to the 
bill, S. 625, supra; as follows:

       Strike section 204 and insert the following:

     SEC. 204. DISCOURAGING ABUSE OF REAFFIRMATION PRACTICES.

       (a) Reaffirmations.--Section 524 of title 11, United States 
     Code, is amended--
       (1) in subsection (c)--
       (A) in paragraph (3)--
       (i) in subparagraph (B), by striking ``and'' at the end:
       (ii) in subparagraph (C), by adding ``and'' at the end; and
       (iii) by adding at the end the following: ``(D) such 
     agreement is not an agreement that the debtor entered into as 
     a result of a threat by the creditor to take an action that 
     the creditor could not legally take;'';
       (B) in paragraph (6)(A)--
       (i) in the matter preceding clause (i), by inserting after 
     ``an agreement under this subsection,'' the following: ``and 
     the consideration for such agreement is not based on a wholly 
     unsecured consumer debt or on a consumer debt secured in 
     whole or in part by an item (or items generally sold as a 
     unit) of personalty, with respect to which, at point of 
     purchase, the cost of the item or unit was $500 or less,'';
       (ii) in clause (i), by striking ``and'' at the end;
       (iii) in clause (ii), by striking the period and inserting 
     ``; and''; and
       (iv) by adding at the end the following:
       ``(iii) not an agreement that the debtor entered into as a 
     result of a threat by a creditor to take an action that the 
     creditor could not legally take.''; and
       (C) by adding at the end the following:
       ``(7)(A)(i) In the case of an agreement that is based on a 
     wholly unsecured consumer debt or on a consumer debt secured 
     in whole or in part by an item (or items generally sold as a 
     unit) of personalty with respect to which, at point of 
     purchase, the cost of the item or unit was $500 or less, the 
     parties shall execute a statement accompanying each such 
     agreement under an appropriate form prescribed by the 
     Judicial Conference of the United States that--
       ``(I) fully discloses the financial terms of the reaffirmed 
     debt, including--
       ``(aa) the amount reaffirmed (including, if practicable, an 
     itemization of the portions of such debt that constitute 
     principal and interest);
       ``(bb) any attorney's fees or other fees for costs 
     associated with the collection of the debt;
       ``(cc) a schedule of payments;
       ``(dd) any financial terms that differ from the financial 
     terms in effect at the time of filing of the petition;
       ``(ee) the extent and nature of any security interest; and
       ``(ff) if the agreement includes an extension or renewal of 
     a credit line, basic financial information on the credit 
     terms, such as would be required under applicable federal 
     nonbankruptcy law; and
       ``(II) demonstrates whether the debtor's net monthly income 
     is not less than the monthly payment required by the 
     agreement, or, if the debtor is proposing more than one such 
     agreement, the aggregation of such agreements.
       ``(ii) For purposes of this subparagraph, the debtor's net 
     monthly income is the debtor's monthly income less monthly 
     expenses and monthly payments on nondischargeable debt and 
     all other reaffirmed debt. Monthly income, expenses, and 
     payments on debts shall be calculated in the same manner as 
     required by section 707(b).

[[Page 28786]]

       ``(iii) This subparagraph shall not apply if the debtor was 
     represented by counsel during the course of negotiating the 
     agreement under this subparagraph and--
       ``(I) the amount of the debt to be reaffirmed in any single 
     such agreement under clause (i) is less than $500, except 
     that if the debtor is proposing more than 1 such agreement, 
     and the aggregate amount of such debts to be reaffirmed to 
     all creditors is more than $750, this subparagraph shall 
     apply to any such agreement that has not been approved by the 
     court and any such subsequent agreement; or
       ``(II) if the amount of the debt to be reaffirmed in any 
     single such agreement is secured by more than one item or 
     unit of collateral and over 50 percent of the total value of 
     all said items or units is attributable to items or units 
     which cost more than $500 at point of purchase. For purposes 
     of this subclause, the value of any item or unit of 
     collateral shall be measured as the cost at point of 
     purchase.
       ``(iv) Any agreement described under subsection (i) of this 
     subparagraph is enforceable only if filed with the court 
     within 50 days after the first date set for the meeting of 
     creditors under section 341(a), or within such additional 
     time as the court fixes, for cause, within such 50-day 
     period. An agreement that has been filed as prescribed may be 
     amended as a matter of course before the case is closed.
       ``(B) If the debtor was represented by counsel during the 
     course of negotiating the agreement, the attorney must file 
     the declaration or affidavit as required under paragraph (3).
       ``(C)(i) The court may consider any such agreement, and 
     shall consider any such agreement that is not an agreement 
     under subparagraph (A)(iii). No agreement shall be 
     disapproved without a notice and hearing to the debtor and 
     creditor, and such hearing must be concluded before the entry 
     of the debtor's discharge. Any agreement under subparagraph 
     (A)(i) not disapproved by the court at the time of discharge 
     shall be deemed approved.
       ``(ii) The court's consideration under clause (i) shall 
     include whether the agreement--
       ``(I) imposes no undue hardship on the debtor or a 
     dependent of the debtor;
       ``(II) is in the best interest of the debtor; and
       ``(III) is not an agreement that the debtor entered into as 
     a result of a threat by the creditor to take an action that 
     the creditor could not legally take.
       ``(D) If the debtor was not represented by counsel during 
     the course of negotiating the agreement and the debtor's net 
     monthly income as defined in subparagraph (A)(ii) is less 
     than the monthly payments required by the agreement, or if 
     applicable, aggregation of agreements, there shall be a 
     presumption that the agreement imposes an undue hardship. The 
     court shall hold a hearing at which the debtor may rebut the 
     presumption by demonstrating the existence of financial 
     circumstances that would enable the debtor to undertake the 
     agreement without undue hardship.''; and
       (2) in subsection (d), in the third sentence of the matter 
     preceding paragraph (1), by inserting after ``subsection (c) 
     of this section'' the following:
       ``that is not a debt described in subsection (c)(7)''.
       (B) Judicial education.--The Director of the Administrative 
     Office of the United States Courts, in consultation with the 
     Director of the Executive Office for United States Trustees, 
     shall develop materials and conduct such training as may be 
     useful to courts in implementing the amended requirements for 
     reaffirmations, and, in particular, in considering the 
     information contained in the forms required by subparagraph 
     (C).
       (C) Model forms.--
       (1) In general.--Not later than 60 days after the date of 
     enactment of this Act, the Judicial Conference of the United 
     States, in consultation with the Board of Governors of the 
     Federal Reserve System, the Federal Trade Commission, and 
     interested parties, shall issue a model form for use in 
     making the disclosure and calculations required by the 
     amendments made by subsection (a).
       (2) Requirements for model form.--Such model form shall--
       (A) be easily understandable to the individuals who use the 
     form;
       (B) be suitable for use by debtors under chapter 7 of title 
     11, United States Code, with a range of educational 
     backgrounds;
       (C) provide an opportunity for any debtor to provide--
       (i) financial information that is sufficient to demonstrate 
     the existence of financial circumstances that would enable 
     the debtor to undertake an agreement described in section 
     524(c) of title 11, United States Code, without hardship; and
       (ii) a statement as to why an agreement referred to in 
     clause (i) is in the debtor's best interest; and
       (D) not require parties to supply information that--
       (i) is not readily available; or
       (ii) cannot be reasonably acquired.
                                 ______
                                 

                        GRAIG AMENDMENT NO. 2651

  (Ordered to lie on the table.)
  Mr. GRAIG submitted an amendment intended to be proposed by him to 
the bil, S. 625, supra, as follows:

       At the appropriate place in the bill, insert the following 
     new section:

     SEC.   . PROPERTY NO LONGER SUBJECT TO REDEMPTION.

       Section 541(b) of title 11, United States Code, is amended 
     by adding at the end the following--
       ``(6) Any interest of the debtor in property where the 
     debtor has pledged or sold tangible personal property or 
     other valuable things (other than securities or written or 
     printed evidences of indebtedness of title) as collateral for 
     a loan or advance of money, where--
       (i) the debtor has no obligation to repay the money, redeem 
     the collateral, or buy back the property at a stipulated 
     price, and
       (ii) neither the debtor nor the trustee have exercised any 
     right to redeem provided under the contract or state law, in 
     a timely manner as provided under state law and Section 
     108(b) of this title.''.
                                 ______
                                 

                   KENNEDY AMENDMENTS NOS. 2652-2653

  (Ordered to lie on the table.)
  Mr. KENNEDY submitted two amendments intended to be proposed by him 
to the bill S. 625, supra; as follows:

                           Amendment No. 2652

       On page 11, line 2, insert before the first semicolon ``, 
     but excludes benefits received under the Social Security 
     Act;''.

                           Amendment No. 2653

       On page 135, strike lines 16 through 18 and insert the 
     following:
       ``(B)(i) The court may extend the period determined under 
     subparagraph (A) for 120 days, upon motion of the trustee or 
     the lessor for cause.
       ``(ii) If the court grants an extension under clause (i), 
     the court may grant a subsequent extension only upon prior 
     written consent of the lessor.''.
       On page 139, strike lines 11 through 16 and insert the 
     following:
       ``(2)(A) The 120-day period specified in paragraph (1) may 
     be extended beyond the date that is 18 months after the date 
     of the order for relief under this chapter if compelling 
     circumstances are demonstrated.
       ``(B) The 180-day period specified in paragraph (1) may be 
     extended beyond the date that is 20 months after the date of 
     the order for relief under this chapter in conjunction with 
     an extension granted under subparagraph (A).''.
       On page 147, line 19, strike ``$4,000,000'' and insert 
     ``$2,000,000''.
       On page 155, lines 16, 19, and 24, strike ``90'' each place 
     it appears and insert ``120''.
       On page 156, lines 19 and 20, strike ``150'' each place it 
     appears and insert ``175''.
       On page 161, line 2, insert ``or'' after the semicolon.
       On page 161, line 6, strike ``; or'' and all that follows 
     through line 10 and insert a period.
       On page 161, beginning on line 19, strike ``, but not a 
     liquidating plan,''.
       On page 163, line 1, strike ``(I)''.
       On page 163, line 3, strike ``, but not'' and all that 
     follows through line 8 and insert a period.
       On page 163, line 22, insert ``that poses a risk to the 
     public'' before the semicolon.
       On page 164, line 3, insert ``repeated'' before 
     ``failure''.
       On page 164, strike lines 13 through 15.
       On page 164, line 16, strike ``(J)'' and insert ``(I)''.
       On page 164, line 19, strike ``(K)'' and insert ``(J)''.
       On page 164, line 21, strike ``(L)'' and insert ``(K)''.
       On page 164, line 23, strike ``(M)'' and insert ``(L)''.
       On page 165, line 1, strike ``(N)'' and insert ``(M)''.
       On page 165, line 3, strike ``(O)'' and insert ``(N)''.
       On page 165, between lines 4 and 5, insert the following:
       ``(5) The court may grant relief under this subsection for 
     cause, as defined in subparagraphs (C), (F), (G), (H), or (J) 
     of paragraph (4), only upon motion of the United States 
     Trustee or bankruptcy administrator, or upon the court's own 
     motion.
       On page 165, line 5, strike ``5'' and insert ``6''.
       On page 165, line 23, insert ``or an examiner'' after 
     ``trustee''.
       On page 263, line 16, insert ``in a case where the debtor 
     is engaged in the business of financial services,'' before 
     ``any''.
       On page 264, line 9, strike the period at the end and 
     insert ``, and the transaction exceeds $25,000,000.''.
       On page 278, line 8, strike the dash at the end and all 
     that follows through line 14 and insert ``by inserting `who 
     is not a family farmer' after `debtor' the first place it 
     appears;''.
                                 ______
                                 

                       JOHNSON AMENDMENT NO. 2654

  (Ordered to lie on the table.)
  Mr. JOHNSON submitted an amendment intended to be proposed by him to 
the bill, S. 625, supra; as follows:


[[Page 28787]]

       At the appropriate place, insert the following:

     SEC. __. COMPENSATING TRUSTEES.

       Title 11, United States Code, is amended--
       (1) in section 104(b)(1) in the matter preceding 
     subparagraph (A) by--
       (A) striking ``and 523(a)(2)(C)''; and
       (B) inserting ``523(a)(2)(C), and 1326(b)(3)'' before 
     ``immediately'';
       (2) in section 326, by inserting at the end the following:
       ``(e) Notwithstanding any other provision of this section, 
     if a trustee in a chapter 7 case commences a motion to 
     dismiss or convert under section 707(b) and such motion is 
     granted, the court shall allow reasonable compensation under 
     section 330(a) of this title for the services and expenses of 
     the trustee and the trustee's counsel in preparing and 
     presenting such motion and any related appeals.''; and
       (3) in section 1326(b)--
       (A) in paragraph (1), by striking ``and'';
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) if a chapter 7 trustee has been allowed compensation 
     under section 326(e) in a case converted to this chapter or 
     in a case dismissed under section 707(b) in which the debtor 
     in this case was a debtor--
       ``(A) the amount of such unpaid compensation which shall be 
     paid monthly by prorating such amount over the remaining 
     duration of the plan, but a monthly payment shall not exceed 
     the greater of--
       ``(i) $25; or
       ``(ii) the amount payable to unsecured nonpriority 
     creditors as provided by the plan multiplied by 5 percent, 
     and the result divided by the number of months in the plan; 
     and
       ``(B) notwithstanding any other provision of this title--
       ``(i) such compensation is payable and may be collected by 
     the trustee under this paragraph even if such amount has been 
     discharged in a prior proceeding under this title; and
       ``(ii) such compensation is payable in a case under this 
     chapter only to the extent permitted by this paragraph.''.
                                 ______
                                 

               TORRICELLI (AND OTHERS) AMENDMENT NO. 2655

  (Ordered to lie on the table.)
  Mr. TORRICELLI (for himself, Mr. Grassley, Mr. Biden, and Mr. Leahy) 
submitted an amendment intended to be proposed by them to the bill, S. 
625, supra; as follows:

       At the end of the bill, add the following new title:

                  TITLE __--CONSUMER CREDIT DISCLOSURE

     SEC. __01. ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT 
                   PLAN.

       (a) Minimum Payment Disclosures.--Section 127(b) of the 
     Truth in Lending Act (15 U.S.C. 1637(b)) is amended by adding 
     at the end the following:
       ``(11)(A) In the case of an open end credit plan that 
     requires a minimum monthly payment of not more than 4 percent 
     of the balance on which finance charges are accruing, the 
     following statement, located on the front of the billing 
     statement, disclosed clearly and conspicuously, in typeface 
     no smaller than the largest typeface used to make other clear 
     and conspicuous disclosures under this subsection: `Minimum 
     Payment Warning: Making only the minimum payment will 
     increase the interest you pay and the time it takes to repay 
     your balance. For example, making only the typical 2% minimum 
     monthly payment on a balance of $1,000 at an interest rate of 
     17% would take 88 months to repay the balance in full. For an 
     estimate of the time it would take to repay your balance, 
     making only minimum payments, call this toll-free number: 
     ______.'.
       ``(B) In the case of an open end credit plan that requires 
     a minimum monthly payment of more than 4 percent of the 
     balance on which finance charges are accruing, the following 
     statement, in a prominent location on the front of the 
     billing statement, disclosed clearly and conspicuously, in 
     typeface no smaller than the largest typeface used to make 
     other clear and conspicuous disclosures under this 
     subsection: `Minimum Payment Warning: Making only the 
     required minimum payment will increase the interest you pay 
     and the time it takes to repay your balance. Making a typical 
     5% minimum monthly payment on a balance of $300 at an 
     interest rate of 17% would take 24 months to repay the 
     balance in full. For an estimate of the time it would take to 
     repay your balance, making only minimum monthly payments, 
     call this toll-free number: ______.'.
       ``(C) Notwithstanding subparagraphs (A) and (B), in the 
     case of a creditor with respect to which compliance with this 
     title is enforced by the Federal Trade Commission, the 
     following statement, in a prominent location on the front of 
     the billing statement, disclosed clearly and conspicuously, 
     in typeface no smaller than the largest typeface used to make 
     other clear and conspicuous disclosures under this 
     subsection: `Minimum Payment Warning: Making only the 
     required minimum payment will increase the interest you pay 
     and the time it takes to repay your balance. For example, 
     making only the typical 5% minimum monthly payment on a 
     balance of $300 at an interest rate of 17% would take 24 
     months to repay the balance in full. For an estimate of the 
     time it would take to repay your balance, making only minimum 
     monthly payments, call the Federal Trade Commission at this 
     toll-free number: ______.' A creditor who is subject to this 
     subparagraph shall not be subject to subparagraph (A) or (B).
       ``(D) Notwithstanding subparagraph (A), (B), or (C), in 
     complying with any such subparagraph, a creditor may 
     substitute an example based on an interest rate that is 
     greater than 17 percent. Any creditor who is subject to 
     subparagraph (B) may elect to provide the disclosure required 
     under subparagraph (A) in lieu of the disclosure required 
     under subparagraph (B).
       ``(E) The Board shall, by rule, periodically recalculate, 
     as necessary, the interest rate and repayment period under 
     subparagraphs (A), (B), and (C).
       ``(F) The toll-free telephone number disclosed by a 
     creditor or the Federal Trade Commission under subparagraph 
     (A), (B), or (G), as appropriate, may be a toll-free 
     telephone number established and maintained by the creditor 
     or the Federal Trade Commission, as appropriate, or may be a 
     toll-free telephone number established and maintained by a 
     third party for use by the creditor or multiple creditors or 
     the Federal Trade Commission, as appropriate. The toll-free 
     telephone number may connect consumers to an automated device 
     through which consumers may obtain information described in 
     subparagraph (A), (B), or (C), by inputting information using 
     a touch-tone telephone or similar device, if consumers whose 
     telephones are not equipped to use such automated device are 
     provided the opportunity to be connected to an individual 
     from whom the information described in subparagraph (A), (B), 
     or (C), as applicable, may be obtained. A person that 
     receives a request for information described in subparagraph 
     (A), (B), or (C) from an obligor through the toll-free 
     telephone number disclosed under subparagraph (A), (B), or 
     (C), as applicable, shall disclose in response to such 
     request only the information set forth in the table 
     promulgated by the Board under subparagraph (H)(i).
       ``(G) The Federal Trade Commission shall establish and 
     maintain a toll-free number for the purpose of providing to 
     consumers the information required to be disclosed under 
     subparagraph (C).
       ``(H) The Board shall--
       ``(i) establish a detailed table illustrating the 
     approximate number of months that it would take to repay an 
     outstanding balance if the consumer pays only the required 
     minimum monthly payments and if no other advances are made, 
     which table shall clearly present standardized information to 
     be used to disclose the information required to be disclosed 
     under subparagraph (A), (B), or (C), as applicable;
       ``(ii) establish the table required under clause (i) by 
     assuming--
       ``(I) a significant number of different annual percentage 
     rates;
       ``(II) a significant number of different account balances;
       ``(III) a significant number of different minimum payment 
     amounts; and
       ``(IV) that only minimum monthly payments are made and no 
     additional extensions of credit are obtained; and
       ``(iii) promulgate regulations that provide instructional 
     guidance regarding the manner in which the information 
     contained in the table established under clause (i) should be 
     used in responding to the request of an obligor for any 
     information required to be disclosed under subparagraph (A), 
     (B), or (C).
       ``(I) The disclosure requirements of this paragraph do not 
     apply to any charge card account, the primary purpose of 
     which is to require payment of charges in full each month.
       ``(J) A creditor that maintains a toll-free telephone 
     number for the purpose of providing customers with the actual 
     number of months that it will take to repay an outstanding 
     balance--
       ``(i) is not subject to the requirements of subparagraphs 
     (A) and (B); and
       ``(ii) shall include the following statement on each 
     billing statement: `Making only the minimum payment will 
     increase the interest you pay and the time it takes to repay 
     your balance. For more information, call this toll-free 
     number: ____.'. ''.
       (b) Regulatory Implementation.--The Board of Governors of 
     the Federal Reserve System (hereafter in this Act referred to 
     as the ``Board'') shall promulgate regulations implementing 
     the requirements of section 127(b)(11) of the Truth in 
     Lending Act, as added by subsection (a) of this section. 
     Section 127(b)(11) of the Truth in Lending Act, as added by 
     subsection (a) of this section, and the regulations issued 
     under this subsection shall not take effect until the later 
     of 18 months after the date of enactment of this Act or 12 
     months after the publication of such regulations by the 
     Board.
       (c) Study of Financial Disclosures.--
       (1) In general.--The Board may conduct a study to determine 
     whether consumers have

[[Page 28788]]

     adequate information about borrowing activities that may 
     result in financial problems.
       (2) Factors for consideration.--In conducting a study under 
     paragraph (1), the Board shall, in consultation with the 
     other Federal banking agencies (as defined in section 3 of 
     the Federal Deposit Insurance Act), the National Credit Union 
     Administration, and the Federal Trade Commission, consider 
     the extent to which--
       (A) consumers, in establishing new credit arrangements, are 
     aware of their existing payment obligations, the need to 
     consider those obligations in deciding to take on new credit, 
     and how taking on excessive credit can result in financial 
     difficulty;
       (B) minimum periodic payment features offered in connection 
     with open end credit plans impact consumer default rates;
       (C) consumers make only the minimum payment under open end 
     credit plans;
       (D) consumers are aware that making only minimum payments 
     will increase the cost and repayment period of an open end 
     credit obligation; and
       (E) the availability of low minimum payment options is a 
     cause of consumers experiencing financial difficulty.
       (3) Report to congress.--Findings of the Board in 
     connection with any study conducted under this subsection 
     shall be submitted to Congress. Such report shall also 
     include recommendations for legislative initiatives, if any, 
     of the Board, based on its findings.

     SEC. __02. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED 
                   BY A DWELLING.

       (a) Open End Credit Extensions.--
       (1) Credit applications.--Section 127A(a)(13) of the Truth 
     in Lending Act (15 U.S.C. 1637a(a)(13)) is amended--
       (A) by striking ``consultation of tax advisor.--A statement 
     that the'' and inserting the following: ``tax 
     deductibility.--A statement that--
       ``(A) the''; and
       (B) by striking the period at the end and inserting the 
     following: ``; and
       ``(B) in any case in which the extension of credit exceeds 
     the fair market value (as defined by the Board) of the 
     dwelling, the interest on the portion of the credit extension 
     that is greater than the fair market value (as defined by the 
     Board) of the dwelling is not tax deductible for Federal 
     income tax purposes.''.
       (2) Credit advertisements.--Section 147(b) of the Truth in 
     Lending Act (15   U.S.C. 1665b(b)) is amended--
       (A) by striking ``If any'' and inserting the following:
       ``(1) In general.--If any''; and
       (B) by adding at the end the following:
       ``(2) Credit in excess of fair market value.--Each 
     advertisement described in subsection (a) that relates to an 
     extension of credit that may exceed the fair market value (as 
     defined by the Board) of the dwelling, and which 
     advertisement is disseminated in paper form to the public or 
     through the Internet, as opposed to by radio or television, 
     shall include a clear and conspicuous statement that--
       ``(A) the interest on the portion of the credit extension 
     that is greater than the fair market value of the dwelling is 
     not tax deductible for Federal income tax purposes; and
       ``(B) the consumer may want to consult a tax advisor for 
     further information regarding the deductibility of interest 
     and charges.''.
       (b) Non-Open End Credit Extensions.--
       (1) Credit applications.--Section 128 of the Truth in 
     Lending Act (15 U.S.C. 1638) is amended--
       (A) in subsection (a), by adding at the end the following:
       ``(15) In the case of a consumer credit transaction that is 
     secured by the principal dwelling of the consumer, in which 
     the extension of credit may exceed the fair market value (as 
     defined by the Board) of the dwelling, a clear and 
     conspicuous statement that--
       ``(A) the interest on the portion of the credit extension 
     that is greater than the fair market value of the dwelling is 
     not tax deductible for Federal income tax purposes; and
       ``(B) the consumer may want to consult a tax advisor for 
     further information regarding the deductibility of interest 
     and charges.''; and
       (B) in subsection (b), by adding at the end the following:
       ``(3) In the case of a credit transaction described in 
     paragraph (15) of subsection (a), disclosures required by 
     that paragraph shall be made to the consumer at the time of 
     application for such extension of credit.''.
       (2) Credit advertisements.--Section 144 of the Truth in 
     Lending Act (15 U.S.C. 1664) is amended by adding at the end 
     the following:
       ``(e) Each advertisement to which this section applies that 
     relates to a consumer credit transaction that is secured by 
     the principal dwelling of a consumer in which the extension 
     of credit may exceed the fair market value (as defined by the 
     Board) of the dwelling, and which advertisement is 
     disseminated in paper form to the public or through the 
     Internet, as opposed to by radio or television, shall clearly 
     and conspicuously state that--
       ``(1) the interest on the portion of the credit extension 
     that is greater than the fair market value of the dwelling is 
     not tax deductible for Federal income tax purposes; and
       ``(2) the consumer may want to consult a tax advisor for 
     further information regarding the deductibility of interest 
     and charges.''.
       (c) Effective Date.--This section and the amendments made 
     by this section shall become effective 12 months after the 
     date of enactment of this Act.

     SEC. __03. DISCLOSURES RELATED TO ``INTRODUCTORY RATES''.

       Section 127(c) of the Truth in Lending Act (15 U.S.C. 
     1637(c)) is amended by adding at the end the following:
       ``(6) Additional notice concerning `introductory rates'.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an application or solicitation to open a credit card account 
     and all promotional materials accompanying such application 
     or solicitation, for which a disclosure is required under 
     paragraph (1), and that offers a temporary annual percentage 
     rate of interest, shall--
       ``(i) use the term `introductory' in immediate proximity to 
     each listing of the temporary annual percentage rate 
     applicable to such account, which term shall appear clearly 
     and conspicuously;
       ``(ii) if the annual percentage rate of interest that will 
     apply after the end of the temporary rate period will be a 
     fixed rate, state the following in a clear and conspicuous 
     manner in a prominent location closely proximate to the first 
     listing of the temporary annual percentage rate (other than a 
     listing of the temporary annual percentage rate in the 
     tabular format described in section 122(c)) or, if the first 
     listing is not the most prominent listing, then closely 
     proximate to the most prominent listing of the temporary 
     annual percentage rate, in each document and in no smaller 
     type size than the smaller of the type size in which the 
     proximate temporary annual percentage rate appears or a 12-
     point type size, the time period in which the introductory 
     period will end and the annual percentage rate that will 
     apply after the end of the introductory period; and
       ``(iii) if the annual percentage rate that will apply after 
     the end of the temporary rate period will vary in accordance 
     with an index, state the following in a clear and conspicuous 
     manner in a prominent location closely proximate to the first 
     listing of the temporary annual percentage rate (other than a 
     listing in the tabular format prescribed by section 122(c)) 
     or, if the first listing is not the most prominent listing, 
     then closely proximate to the most prominent listing of the 
     temporary annual percentage rate, in each document and in no 
     smaller type size than the smaller of the type size in which 
     the proximate temporary annual percentage rate appears or a 
     12-point type size, the time period in which the introductory 
     period will end and an annual percentage rate that was in 
     effect within 60 days before the date of mailing the 
     application or solicitation.
       ``(B) Exception.--Clauses (ii) and (iii) of subparagraph 
     (A) do not apply with respect to any listing of a temporary 
     annual percentage rate on an envelope or other enclosure in 
     which an application or solicitation to open a credit card 
     account is mailed.
       ``(C) Conditions for introductory rates.--An application or 
     solicitation to open a credit card account for which a 
     disclosure is required under paragraph (1), and that offers a 
     temporary annual percentage rate of interest shall, if that 
     rate of interest is revocable under any circumstance or upon 
     any event, clearly and conspicuously disclose, in a prominent 
     manner on or with such application or solicitation--
       ``(i) a general description of the circumstances that may 
     result in the revocation of the temporary annual percentage 
     rate, including representative examples; and
       ``(ii) if the annual percentage rate that will apply upon 
     the revocation of the temporary annual percentage rate--

       ``(I) will be a fixed rate, the annual percentage rate that 
     will apply upon the revocation of the temporary annual 
     percentage rate; or
       ``(II) will vary in accordance with an index, an annual 
     percentage rate that was in effect within 60 days before the 
     date of mailing the application or solicitation.

       ``(D) Definitions.--In this paragraph--
       ``(i) the terms `temporary annual percentage rate of 
     interest' and `temporary annual percentage rate' mean any 
     rate of interest applicable to a credit card account for an 
     introductory period of less than 1 year, if that rate is less 
     than an annual percentage rate that was in effect within 60 
     days before the date of mailing the application or 
     solicitation; and
       ``(ii) the term `introductory period' means the maximum 
     time period for which the temporary annual percentage rate 
     may be applicable.
       ``(E) Relation to other disclosure requirements.--Nothing 
     in this paragraph may be construed to supersede subsection 
     (a) of section 122, or any disclosure required by paragraph 
     (1) or any other provision of this subsection.''.

[[Page 28789]]



     SEC. __04. INTERNET-BASED CREDIT CARD SOLICITATIONS.

       Section 127(c) of the Truth in Lending Act (15 U.S.C. 
     1637(c)) is amended by adding at the end the following:
       ``(7) Internet-based applications and solicitations.--
       ``(A) In general.--In any solicitation to open a credit 
     card account for any person under an open end consumer credit 
     plan using the Internet or other interactive computer 
     service, the person making the solicitation shall clearly and 
     conspicuously disclose--
       ``(i) the information described in subparagraphs (A) and 
     (B) of paragraph (1); and
       ``(ii) the disclosures described in paragraph (6).
       ``(B) Form of disclosure.--The disclosures required by 
     subparagraph (A) shall be--
       ``(i) readily accessible to consumers in close proximity to 
     the solicitation to open a credit card account; and
       ``(ii) updated regularly to reflect the current policies, 
     terms, and fee amounts applicable to the credit card account.
       ``(C) Definitions.--For purposes of this paragraph--
       ``(i) the term `Internet' means the international computer 
     network of both Federal and non-Federal interoperable packet 
     switched data networks; and
       ``(ii) the term `interactive computer service' means any 
     information service, system, or access software provider that 
     provides or enables computer access by multiple users to a 
     computer server, including specifically a service or system 
     that provides access to the Internet and such systems 
     operated or services offered by libraries or educational 
     institutions.''.

     SEC. __05. DISCLOSURES RELATED TO LATE PAYMENT DEADLINES AND 
                   PENALTIES.

       Section 127(b) of the Truth in Lending Act (15 U.S.C. 
     1637(b)) is amended by adding at the end the following:
       ``(12) If a late payment fee is to be imposed due to the 
     failure of the obligor to make payment on or before a 
     required payment due date the following shall be stated 
     clearly and conspicuously on the billing statement:
       ``(A) The date on which that payment is due or, if 
     different, the earliest date on which a late payment fee may 
     be charged.
       ``(B) The amount of the late payment fee to be imposed if 
     payment is made after such date.''.

     SEC. __06. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE TO 
                   INCUR FINANCE CHARGES.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is 
     amended by adding at the end the following:
       ``(h) Prohibition on Certain Actions for Failure To Incur 
     Finance Charges.--A creditor of an account under an open end 
     consumer credit plan may not terminate an account prior to 
     its expiration date solely because the consumer has not 
     incurred finance charges on the account. Nothing in this 
     subsection shall prohibit a creditor from terminating an 
     account for inactivity in 3 or more consecutive months.''.

     SEC. __07. DUAL USE DEBIT CARD.

       (a) Report.--The Board may conduct a study of, and present 
     to Congress a report containing its analysis of, consumer 
     protections under existing law to limit the liability of 
     consumers for unauthorized use of a debit card or similar 
     access device. Such report, if submitted, shall include 
     recommendations for legislative initiatives, if any, of the 
     Board, based on its findings.
       (b) Considerations.--In preparing a report under subsection 
     (a), the Board may include--
       (1) the extent to which section 909 of the Electronic Fund 
     Transfer Act (15 U.S.C. 1693g), as in effect at the time of 
     the report, and the implementing regulations promulgated by 
     the Board to carry out that section provide adequate 
     unauthorized use liability protection for consumers;
       (2) the extent to which any voluntary industry rules have 
     enhanced or may enhance the level of protection afforded 
     consumers in connection with such unauthorized use liability; 
     and
       (3) whether amendments to the Electronic Fund Transfer Act 
     (15 U.S.C. 1693 et seq.), or revisions to regulations 
     promulgated by the Board to carry out that Act, are necessary 
     to provide to further address adequate protection for 
     consumers concerning unauthorized use liability.

     SEC. __08. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO 
                   DEPENDENT STUDENTS.

       (a) Study.--
       (1) In general.--The Comptroller General of the United 
     States shall conduct a study regarding the impact that the 
     extension of credit described in paragraph (2) has on the 
     rate of bankruptcy cases filed under title 11, United States 
     Code.
       (2) Extension of credit.--The extension of credit referred 
     to in paragraph (1) is the extension of credit to individuals 
     who are--
       (A) claimed as dependents for purposes of the Internal 
     Revenue Code of 1986; and
       (B) enrolled in postsecondary educational institutions.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to the Senate and the House of 
     Representatives a report summarizing the results of the study 
     conducted under subsection (a).
                                 ______
                                 

                  TORRICELLI AMENDMENTS NOS. 2656-2657

  (Ordered to lie on the table.)
  Mr. TORRICELLI submitted two amendments intended to be proposed by 
him to the bill, S. 625, supra; as follows:

                           Amendment No. 2656

       On page 124, strike lines 10 through 14, and insert the 
     following:
       Section 541(a) of title 11, United States Code, is 
     amended--
       (1) in paragraph (6), by inserting ``(other than an 
     individual debtor who, in accordance with section 301, files 
     a petition to commence a voluntary case under chapter 11)'' 
     after ``individual debtor''; and
       (2) by adding at the end the following:
       ``(8) Any interest of the debtor in a lease or a license, 
     whether issued by a governmental unit or a person.''.
       On page 250, line 24, strike the quotation marks and the 
     final period.
       On page 250, after line 24, insert the following:
       ``(m) Regulatory Powers Exception.--`Police or regulatory 
     power' excludes any act, action, or proceeding that affects 
     property of or from the estate used in whole or in part to 
     secure or satisfy a debt.''.
                                  ____


                           Amendment No. 2657

       On page 124, strike lines 10 through 14, and insert the 
     following:
       Section 541(a) of title 11, United States Code, is 
     amended--
       (1) in paragraph (6), by inserting ``(other than an 
     individual debtor who, in accordance with section 301, files 
     a petition to commence a voluntary case under chapter 11)'' 
     after ``individual debtor''; and
       (2) by adding at the end the following:
       ``(8) Any interest of the debtor in a lease or a license, 
     whether issued by a governmental unit or a person.''.
       On page 250, line 24, strike the quotation marks and the 
     final period.
       On page 250, after line 24, insert the following:
       ``(m) Regulatory Powers Exception.--`Police or regulatory 
     power' excludes any act, action, or proceeding that affects 
     property of or from the estate used in whole or in part to 
     secure or satisfy a debt.''.
                                 ______
                                 

                 LEVIN (AND OTHERS) AMENDMENT NO. 2658

  (Ordered to lie on the table.)
  Mr. LEVIN (for himself, Mr. Durbin, Mr. Wyden, Mr. Kennedy, Mrs. 
Feinstein, Mr. Lautenberg, and Mr. Schumer) submitted an amendment 
intended to be proposed by them to the bill, S. 625, supra; as follows:

       On page 124, between lines 14 and 15, insert the following:

     SEC. __. CHAPTER 11 NONDISCHARGEABILITY OF DEBTS ARISING FROM 
                   FIREARM-RELATED DEBTS.

       (a) In General.--Section 1141(d) of title 11, United States 
     Code, as amended by section 708 of this Act, is amended by 
     adding at the end the following:
       ``(6) Notwithstanding paragraph (1), the confirmation of a 
     plan does not discharge a debtor that is a corporation from 
     any debt that is--
       ``(A) related to the use or transfer of a firearm (as 
     defined in section 921(3) of title 18 or section 5845(a) of 
     the Internal Revenue Code of 1986); and
       ``(B) based in whole or in part on fraud, recklessness, 
     misrepresentation, nuisance, negligence, or product 
     liability.''.
       (b) Automatic Stay.--Section 362(b) of title 11, United 
     States Code, as amended by section 901(d) of this Act, is 
     amended--
       (1) in paragraph (27), by striking ``or'' at the end;
       (2) in paragraph (28), by striking the period at the end 
     and inserting ``; or''; and
       (3) by inserting after paragraph (28) the following:
       ``(29) under subsection (a) of this section, of--
       ``(A) the commencement or continuation, and conclusion to 
     the entry of final judgment or order, of a judicial, 
     administrative, or other action or proceeding for debts that 
     are nondischargeable under section 1141(d)(6); or
       ``(B) the perfection or enforcement of a judgment or order 
     referred to in subparagraph (A) against property of the 
     estate or property of the debtor.''.
                                 ______
                                 

                    DURBIN AMENDMENTS NOS. 2659-2660

  (Ordered to lie on the table.)
  Mr. DURBIN submitted two amendments intended to be proposed by him to 
the bill, S. 625, supra; as follows:

                           Amendment No. 2659

       On page 18, line 5 insert ``(including a briefing conducted 
     by telephone or on the Internet)'' after ``briefing''.

[[Page 28790]]

       On page 19, line 15, strike ``petition'' and insert 
     ``petition without court approval.''
                                  ____


                           Amendment No. 2660

       On page 26, strike line 3 and all that follows through page 
     27, line 24, and insert the following:
       ``(C) such agreement contains a clear and conspicuous 
     statement that advises the debtor which portion of the debt 
     to be reaffirmed is attributable to--
       ``(i) principal;
       ``(ii) interest;
       ``(iii) late fees;
       ``(iv) attorney's fees of the creditor; or
       ``(v) expenses or other costs relating to the collection of 
     the debt;
       (B) in paragraph (5), by striking ``and'' at the end;
       (C) in paragraph (6)--
       (i) in subparagraph (A)(ii), by striking the period at the 
     end and inserting ``; except that''; and
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) to the extent that the debt is a consumer debt 
     secured by real property or is a debt described in paragraph 
     (7), subparagraph (A) shall not apply; and''; and
       (D) by adding at the end the following:
       ``(7) in a case concerning an individual--
       ``(A)(i) the consideration for such agreement is based, in 
     whole or in part, on--
       ``(I) an unsecured consumer debt; or
       ``(II) a debt for an item of personalty with a value of 
     $250 or less at the time of purchase; or
       ``(ii) the creditor asserts a purchase money security 
     interest; and
       ``(B) the court approves of such agreement as--
       ``(i) in the best interest of the debtor, in light of the 
     income and expenses of the debtor;
       ``(ii) not imposing an undue hardship on the future ability 
     of the debtor to pay for the needs of children and other 
     dependents (including court ordered support);
       ``(iii) not requiring the debtor to pay the attorney's 
     fees, expenses, or other costs of the creditor relating to 
     the collection of the debt;
       ``(iv) not executed to protect property that is necessary 
     for the care and maintenance of children or other dependents 
     that would have nominal value on repossession;
       ``(v) not executed after coercive threats or actions by the 
     creditor in the course of dealings between the creditor and 
     the debtor; and
       ``(vi) not excessive in amount based upon the value of the 
     collateral.''; and
       (2) in subsection (d)(2), by striking ``requirements'' and 
     all that follows through the period and inserting 
     ``applicable requirements of paragraphs (6) and (7).''.
                                 ______
                                 

             DURBIN (AND OTHERS) AMENDMENTS NOS. 2661-2662

  (Ordered to lie on the table.)
  Mr. DURBIN (for himself, Mr. Schumer, and Mr. Kennedy) submitted two 
amendments intended to be proposed by them to the bill, S. 625, supra; 
as follows:

                           Amendment No. 2661

       On page 7, between line 14 and 15, insert the following:

     ``unless the conditions described in clause (iA) apply with 
     respect to the debtor.
       ``(iA) the product of the debtor's current monthly income 
     multiplied by 12--
       ``(I)(aa) exceeds 100 percent, but does not exceed 150 
     percent of the national or applicable State median household 
     income reported for a household of equal size, whichever is 
     greater; or
       ``(bb) in the case of a household of 1 person, exceeds 100 
     percent but does not exceed 150 percent of the national or 
     applicable State median household income reported for 1 
     earner, whichever is greater; and
       ``(II) the product of the debtor's current monthly income 
     (reduced by the amounts determined under clause (ii) (except 
     for the amount calculated under the other necessary expenses 
     standard issued by the Internal Revenue Service and clauses 
     (iii) and (iv) multiplied by 60 is less than the greater of--
       ``(aa) 25 percent of the debtor's nonpriority unsecured 
     claims in the case; or
       ``(bb) $15,000.
                                  ____


                           Amendment No. 2662

       On page 7, between line 14 and 15, insert the following:

     ``unless the conditions described in clause (iA) or (iB) 
     apply with respect to the debtor.
       ``(iA) The product of the debtor's current monthly income 
     multiplied by 12 does not exceed
       ``(I) 100 percent of the national or applicable State 
     median household income reported for a household of equal 
     size, whichever is greater; or
       ``(II) in the case of a household of 1 person, 100 percent 
     of the national or applicable State median household income 
     for 1 earner, whichever is greater.
       ``(iB) the product of the debtor's current monthly income 
     multiplied by 12--
       ``(I)(aa) exceeds 100 percent, but does not exceed 150 
     percent of the national or applicable State median household 
     income reported for a household of equal size, whichever is 
     greater; or
       ``(bb) in the case of a household of 1 person, exceeds 100 
     percent but does not exceed 150 percent of the national or 
     applicable State median household income reported for 1 
     earner, whichever is greater; and
       ``(II) the product of the debtor's current monthly income 
     (reduced by the amounts determined under clause (ii) (except 
     for the amount calculated under the other necessary expenses 
     standard issued by the Internal Revenue Service and clauses 
     (iii) and (iv) multiplied by 60 is less than the greater of--
       ``(aa) 25 percent of the debtor's nonpriority unsecured 
     claims in the case;
       ``(bb) $15,000.
                                 ______
                                 

                      MOYNIHAN AMENDMENT NO. 2663

  (Ordered to lie on the table.)
  Mr. MOYNIHAN submitted an amendment intended to be proposed by him to 
the bill, S. 625, supra; as follows:

       On page 107, line 7, strike ``(C)(i) for purposes of 
     subparagraph (A)--'' and insert the following:
       ``(C) for purposes of subparagraph (A)--
       ``(i) if the debtor, and the spouse of the debtor in a 
     joint case, as of the date of the order for relief, have a 
     total current monthly income greater than the national or 
     applicable State median family monthly income calculated on a 
     monthly basis for a family of equal size, or in the case of a 
     household of one person, the national median household income 
     for one earner (except that for a household of more than 4 
     individuals, the median income shall be that of a household 
     of 4 individuals, plus $583 for each additional member of 
     that household)--''.

       On page 107, lines 8 and 14, move the margins 2 ems to the 
     right.

       On page 107, line 19, strike ``and'' and all that follows 
     through line 20 and insert the following:
       ``(ii) if the debtor and the debtor's spouse combined, as 
     of the date of the order for relief, have a total current 
     monthly income that does not satisfy the conditions of clause 
     (i)--
       ``(I) consumer debts owed to a single creditor and 
     aggregating more than $1,075 for luxury goods or services 
     incurred by an individual debtor on or within 60 days before 
     the order for relief under this title are presumed to be 
     nondischargeable; and
       ``(II) cash advances aggregating more than $1,075 that are 
     extensions of consumer credit under an open end credit plan 
     obtained by an individual debtor on or within 60 days before 
     the order for relief under this title are presumed to be 
     nondischargeable; and
       ``(iii) for purposes of this subparagraph--''.

       On page 111, line 20, strike ``(14A)(A) incurred to pay a 
     debt that is'' and insert the following:
       ``(14A) if the debtor, and the spouse of the debtor in a 
     joint case, as of the date of the order for relief, have a 
     total current monthly income greater than the national or 
     applicable State median family monthly income, calculated on 
     a monthly basis for a family of equal size, or in the case of 
     a household of one person, the national median household 
     income for one earner (except that for a household of more 
     than 4 individuals, the median income shall be that of a 
     household of 4 individuals, plus $583 for each additional 
     member of that household)--
       ``(A) incurred to pay a debt that is''.

       On page 112, line 2, insert ``, with respect to debtors 
     with income above the amount stated,'' after ``that''.
                                 ______
                                 

                     KOHL AMENDMENTS NOS. 2664-2666

  (Ordered to lie on the table.)
  Mr. KOHL submitted three amendments intended to be proposed by him to 
the bill, S. 625, supra; as follows:

                           Amendment No. 2664

       On page 124, insert between lines 14 and 15 the following:

     SEC. 322. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICIPANT 
                   CONTRIBUTIONS AND OTHER PROPERTY FROM THE 
                   ESTATE.

       (a) In General.--Section 541(b) of title 11, United States 
     Code, as amended by section 903 of this Act, is amended--
       (1) by striking ``or'' at the end of paragraph (5);
       (2) by redesignating paragraph (6) as paragraph (7); and
       (3) by inserting after paragraph (5) the following:
       ``(6) any amount--
       ``(A) withheld by an employer from the wages of employees 
     for payment as contributions to--
       ``(i) an employee benefit plan subject to title I of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1001 et seq.); or
       ``(ii) a health insurance plan regulated by State law 
     whether or not subject to such title; or
       ``(B) received by the employer from employees for payment 
     as contributions to--
       ``(i) an employee benefit plan subject to title I of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1001 et seq.); or

[[Page 28791]]

       ``(ii) a health insurance plan regulated by State law 
     whether or not subject to such title;''.
       (b) Application of Amendment.--The amendment made by this 
     section shall not apply to cases commenced under title 11, 
     United States Code, before the expiration of the 180-day 
     period beginning on the date of the enactment of this Act.
                                  ____


                           Amendment No. 2665

       On page 124, insert between lines 14 and 15 the following:

     SEC. 322. CLARIFICATION OF POSTPETITION WAGES AND BENEFITS.

       Section 503(b)(1)(A) of title 11, United States Code, is 
     amended to read as follows:
       ``(A) the actual, necessary costs and expenses of 
     preserving the estate, including wages, salaries, or 
     commissions for services rendered after the commencement of 
     the case, and wages and benefits awarded as back pay 
     attributable to any period of time after commencement of the 
     case as a result of the debtor's violation of Federal or 
     State law, without regard to when the original unlawful act 
     occurred or to whether any services were rendered;''.
                                  ____


                           Amendment No. 2666

       On page 96, line 23 strike all through page 97, line 11 and 
     insert the following:
       (b) Restoring the Foundation for Secured Credit.--Section 
     506 of title 11, United States Code, is amended by adding at 
     the end the following:
       ``(e) In an individual case under chapter 7, 11, 12, or 
     13--
       ``(1) except for the purpose of applying paragraph (3) of 
     this subsection, subsection (a) shall not apply to an allowed 
     claim that is attributable to the purchase price of personal 
     property if--
       ``(A) the holder of the claim has a security interest in 
     that property; and
       ``(B) the property was purchased by the debtor within 180 
     days before the filing of the petition;
       ``(2) if an allowed claim referred to in paragraph (1) is 
     secured only by the personal property acquired, the value of 
     the personal property described in that paragraph and the 
     amount of the allowed secured claim shall be the sum of--
       ``(A) the unpaid principal balance of the purchase price; 
     and
       ``(B) the accrued and unpaid interest and charges at the 
     applicable contract rate attributable to such property;
       ``(3) if an allowed claim referred to in paragraph (1) is 
     secured by the personal property described in that paragraph 
     and other property, the value of the security may be 
     determined under subsection (a), except that the value of the 
     security and the amount of the allowed secured claim shall 
     not be less than--
       ``(A) the unpaid principal balance of the purchase price of 
     the personal property described in paragraph (1); and
       ``(B) any unpaid interest and charges at the contract rate 
     attributable to the property acquired; and
       ``(4) in any case under this title that is filed 
     subsequently by or against the debtor in the original case, 
     the value of the personal property described in paragraph (1) 
     and the amount of the allowed secured claim with respect to 
     that property shall be deemed to be not less than an amount 
     determined in the same manner as the original under paragraph 
     (2) or (3).''.
                                 ______
                                 

                      FEINGOLD AMENDMENT NO. 2667

  (Ordered to lie on the table.)
  Mr. FEINGOLD submitted an amendment intended to be proposed by him to 
the bill, S. 625, supra; as follows:

       At the appropriate place in the bill, insert the following:

          TITLE __--EAST TIMOR SELF-DETERMINATION ACT OF 1999

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``East Timor Self-
     Determination Act of 1999''.

     SEC. __02. FINDINGS; PURPOSE; SENSE OF SENATE.

       (a) Congressional Findings.--
       (1) On August 30, 1999, in accordance with the May 5, 1999, 
     agreement between Indonesia and Portugal brokered by the 
     United Nations, and subsequent agreements between the United 
     Nations and the governments of Indonesia and Portugal, a 
     popular consultation took place, in which 78.5 percent of 
     East Timorese rejected integration with Indonesia, setting 
     the stage for a transition to independence pursuant to the 
     terms of the May 5, 1999, agreement.
       (2) On October 19, 1999, the Indonesian People's 
     Consultative Assembly agreed to ratify the August 30, 1999, 
     vote results, leading the United Nations Security Council, on 
     October 25, 1999, to authorize a United Nations Transitional 
     Administration in East Timor (UNTAET), which was to include 
     deployment of an international police and military force with 
     up to 1,640 officers and 8,950 troops.
       (3) The United Nations Commission on Human Rights, in a 
     special session meeting on September 27, 1999, called on the 
     United Nations Secretary General to establish an 
     international commission of inquiry to investigate violations 
     of human rights in East Timor, and urged the cooperation of 
     the Indonesian government and military.
       (4) The Secretary General subsequently directed Mary 
     Robinson, the United Nations High Commissioner on Human 
     Rights, to appoint a United Nations commission on October 15, 
     1999, which is due to report its conclusion to the Secretary 
     General by December 31, 1999.
       (5) The Indonesian People's Consultative Assembly on 
     October 20, 1999, chose Abdurrahman Wahid as President of the 
     Republic of Indonesia and the next day also chose as Vice 
     President, Megawati Soekarnoputri
       (6) President Wahid has invited Xanana Gusmao to meet and 
     has written to the United Nations Secretary General 
     officially informing him of the decision to end Indonesia's 
     administration of East Timor, and of East Timor's 
     independence, and expressing his hope ``that East Timor will 
     become an independent state''.
       (7) As of late October 1999, according to United Nations 
     officials and other independent observers, more than 200,000 
     East Timorese remain displaced in camps in West Timor and 
     elsewhere in Indonesia, under constant threat by civilian 
     militia and in some cases denied access to assistance by the 
     United Nations humanitarian agencies.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) the United States should congratulate the people of 
     Indonesia on its democratic transition and welcome the 
     efforts of the new Indonesian government to bring a peaceful 
     end to the crisis in East and West Timor;
       (2) the results of the August 30, 1999, vote on East 
     Timor's political status, which expressed the will of a 
     majority of the Timorese people, should be fully implemented;
       (3) economic recovery in Indonesia is essential to 
     political and economic stability in the region; and
       (4) the President, the Secretary of State, the Secretary of 
     the Treasury, and Congress should work with the people of 
     Indonesia to restore Indonesia's economic vitality.
       (c) Purpose.--The purpose of this Act is to encourage the 
     government of Indonesia and the armed forces of Indonesia to 
     take such additional steps as are necessary to create a 
     peaceful environment in which the United Nations Assistance 
     Mission to East Timor (UNAMET), the International Force for 
     East Timor (INTERFET), and the United Nations Transitional 
     Administration in East Timor (UNTAET) can fulfill their 
     mandates and implement the results of the August 30, 1999, 
     vote on East Timor's political status.

     SEC. __03. SUSPENSION OF SECURITY ASSISTANCE.

       (a) Suspension and Support.--
       (1) Assistance.--None of the funds appropriated or 
     otherwise made available under the following provisions of 
     law (including unexpended balances of prior year 
     appropriations) may be available for Indonesia:
       (A) The Foreign Military Financing Program under section 23 
     of the Arms Export Control Act.
       (B) Chapter 2 of part II of the Foreign Assistance Act of 
     1961 (relating to military assistance).
       (C) Chapter 5 of part II of the Foreign Assistance Act of 
     1961 (relating to international military education and 
     training assistance).
       (D) Section 2011 of title 10, United States Code.
       (2) Licensing.--None of the funds appropriated or otherwise 
     made available under any provision of law (including 
     unexpended balances of prior year appropriations) may be 
     available for licensing exports of defense articles or 
     defense services to Indonesia under section 38 of the Arms 
     Export Control Act.
       (3) Exportation.--No defense article or defense service may 
     be exported or delivered to Indonesia or East Timor by any 
     United States person (as defined in section 16 of the Export 
     Administration Act of 1979 (50 U.S.C. App. 2415)) or any 
     other person subject to the jurisdiction of the United States 
     except as may be necessary to support the operations of an 
     international peacekeeping force in East Timor or in 
     connection with the provision of humanitarian assistance.
       (4) Prohibition on participation in asia-pacific center for 
     security studies.--Programs of the Asia-Pacific Center for 
     Security Studies may not include participants who are members 
     of the armed forces of Indonesia or any representatives of 
     the armed forces of Indonesia.
       (5) Prohibition on assistance through military-to-military 
     contacts.--The authority for military-to-military contacts 
     and comparable activities under section 168 of title 10, 
     United States Code, may not be exercised in a manner that 
     provides any assistance to the government or armed forces of 
     Indonesia.
       (b) Inapplicability to Certain Items and Services on the 
     United States Munitions List.--Paragraphs (2) and (3) of 
     subsection (a) do not apply to the export, delivery, or 
     servicing of any item or service that, while on the Commerce 
     Control List of dual-use items in the Export Administration 
     Regulations, was licensed by the Department of Commerce for 
     export to Indonesia but is in a category of items or services 
     that, within two years before the date of the enactment

[[Page 28792]]

     of this Act, was transferred by law to the United States 
     Munitions List for control under section 38 of the Arms 
     Export Control Act (22 U.S.C. 2778).
       (c) Conditions for Termination.--Subject to subsection (b), 
     the measures described in subsection (a) shall apply with 
     respect to the government and armed forces of Indonesia until 
     the President determines and certifies to the appropriate 
     congressional committees that the Indonesian government and 
     the Indonesian armed forces are--
       (1) taking effective measures to bring to justice members 
     of the Indonesian armed forces and militia groups against 
     whom there is credible evidence of human rights violations;
       (2) demonstrating a commitment to accountability by 
     cooperating with investigations and prosecutions of members 
     of the Indonesian armed forces and militia groups responsible 
     for human rights violations in Indonesia and East Timor;
       (3) taking effective measures to bring to justice members 
     of the Indonesian armed forces against whom there is credible 
     evidence of aiding or abetting militia groups;
       (4) allowing displaced persons and refugees to return home 
     to East Timor, including providing safe passage for refugees 
     returning from West Timor;
       (5) not impeding the activities of the International Force 
     in East Timor (INTERFET) or its successor, the United Nations 
     Transitional Administration in East Timor (UNTAET);
       (6) ensuring freedom of movement in West Timor, including 
     by humanitarian organizations; and
       (7) demonstrating a commitment to preventing incursions 
     into East Timor by members of militia groups in West Timor.

     SEC. __04. MULTILATERAL EFFORTS.

       The President should continue to coordinate with other 
     countries, particularly member states of the Asia-Pacific 
     Economic Cooperation (APEC) Forum, to develop a 
     comprehensive, multilateral strategy to further the purposes 
     of this Act, including urging other countries to take 
     measures similar to those described in this title.

     SEC. __05. REPORT.

       Not later than 30 days after the date of enactment of this 
     Act, and every 6 months thereafter until the end of the 
     UNTAET mandate, the Secretary of State shall submit a report 
     to the appropriate congressional committees on the progress 
     of the Indonesian government toward the meeting the 
     conditions contained in paragraphs (1) through (7) of section 
     __03(c) and on the progress of East Timor toward becoming an 
     independent nation.

     SEC. __06. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

       In this title, the term ``appropriate congressional 
     committees'' means the Committee on Foreign Relations and the 
     Committee on Appropriations of the Senate and the Committee 
     on International Relations and the Committee on 
     Appropriations of the House of Representatives.
                                 ______
                                 

          HUTCHISON (AND BROWNBACK) AMENDMENTS NOS. 2668-2669

  (Ordered to lie on the table.)
  Mrs. HUTCHISON (for herself and Mr. Brownback) submitted 2 amendments 
intended to be proposed by them to the bill, S. 625, supra; as follows:

                           Amendment No. 2668

       At the appropriate place in the bill, add the following:

     SEC. 1. HOMESTEAD EXEMPTION OPT OUT.

       The provisions relating to a Federal homestead exemption 
     shall not apply to debtors if applicable State law provides 
     by statute that such provisions shall not apply to debtors 
     and shall not take effect in any State before the end of the 
     first regular session of the State legislature following the 
     date of enactment of this Act.

     SEC. 2. SENIOR CITIZEN EXEMPTION

       The provisions relating to a Federal homestead exemption 
     shall not apply to debtors who are 65 years of age or older.
                                  ____


                           Amendment No. 2669

       At the appropriate place in the bill, add the following:

     SEC. __. HOMESTEAD EXEMPTION OPT OUT.

       The provisions relating to a Federal homestead exemption 
     shall not apply to debtors if applicable State law provides 
     by statute that such provisions shall not apply to debtors 
     and shall not take effect in any State before the end of the 
     first regular session of the State legislature following the 
     date of enactment of this Act. This paragraph shall not apply 
     to the status of Alabama and Wisconsin.
                                 ______
                                 

                  BROWNBACK AMENDMENTS NOS. 2670-2741

  (Ordered to lie on the table.)
  Mr. BROWNBACK submitted 72 amendments intended to be proposed by him 
to the bill, S. 625, supra; as follows:

                           Amendment No. 2670

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``34 
     percent''.
                                  ____


                           Amendment No. 2671

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``45 
     percent''.
                                  ____


                           Amendment No. 2672

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``46 
     percent''.
                                  ____


                           Amendment No. 2673

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``47 
     percent''.
                                  ____


                           Amendment No. 2674

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``48 
     percent''.
                                  ____


                           Amendment No. 2675

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``29 
     percent''.
                                  ____


                           Amendment No. 2676

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``30 
     percent''.
                                  ____


                           Amendment No. 2677

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``31 
     percent''.
                                  ____


                           Amendment No. 2678

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``32 
     percent''.
                                  ____


                           Amendment No. 2679

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``33 
     percent''.
                                  ____


                           Amendment No. 2680

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``49 
     percent''.
                                  ____


                           Amendment No. 2681

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``41 
     percent''.
                                  ____


                           Amendment No. 2682

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``42 
     percent''.
                                  ____


                           Amendment No. 2683

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``43 
     percent''.
                                  ____


                           Amendment No. 2684

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``44 
     percent''.
                                  ____


                           Amendment No. 2685

       On page 268, after line 16, insert the following:

[[Page 28793]]



     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``46 
     percent''.
                                  ____


                           Amendment No. 2686

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``79 
     percent''.
                                  ____


                           Amendment No. 2687

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``39 
     percent''.
                                  ____


                           Amendment No. 2688

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``45 
     percent''.
                                  ____


                           Amendment No. 2689

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``44 
     percent''.
                                  ____


                           Amendment No. 2690

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``64 
     percent''.
                                  ____


                           Amendment No. 2691

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``65 
     percent''.
                                  ____


                           Amendment No. 2692

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``66 
     percent''.
                                  ____


                           Amendment No. 2693

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``67 
     percent''.
                                  ____


                           Amendment No. 2694

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``68 
     percent''.
                                  ____


                           Amendment No. 2695

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``69 
     percent''.
                                  ____


                           Amendment No. 2696

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``70 
     percent''.
                                  ____


                           Amendment No. 2697

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``71 
     percent''.
                                  ____


                           Amendment No. 2698

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``72 
     percent''.
                                  ____


                           Amendment No. 2699

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``73 
     percent''.
                                  ____


                           Amendment No. 2700

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``74 
     percent''.
                                  ____


                           Amendment No. 2701

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``75 
     percent''.
                                  ____


                           Amendment No. 2702

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``76 
     percent''.
                                  ____


                           Amendment No. 2703

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``77 
     percent''.
                                  ____


                           Amendment No. 2704

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``78 
     percent''.
                                  ____


                           Amendment No. 2705

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``29 
     percent''.
                                  ____


                           Amendment No. 2706

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``30 
     percent''.
                                  ____


                           Amendment No. 2707

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``31 
     percent''.
                                  ____


                           Amendment No. 2708

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``32 
     percent''.
                                  ____


                           Amendment No. 2709

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``33 
     percent''.
                                  ____


                           Amendment No. 2710

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``34 
     percent''.
                                  ____


                           Amendment No. 2711

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``35 
     percent''.
                                  ____


                           Amendment No. 2712

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``36 
     percent''.
                                  ____


                           Amendment No. 2713

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``37 
     percent''.
                                  ____


                           Amendment No. 2714

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``40 
     percent''.
                                  ____


                           Amendment No. 2715

       On page 268, after line 16, insert the following:

[[Page 28794]]



     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``41 
     percent''.
                                  ____


                           Amendment No. 2716

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``38 
     percent''.
                                  ____


                           Amendment No. 2717

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``56 
     percent''.
                                  ____


                           Amendment No. 2718

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``57 
     percent''.
                                  ____


                           Amendment No. 2719

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``58 
     percent''.
                                  ____


                           Amendment No. 2720

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``59 
     percent''.
                                  ____


                           Amendment No. 2721

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``60 
     percent''.
                                  ____


                           Amendment No. 2722

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``61 
     percent''.
                                  ____


                           Amendment No. 2723

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``42 
     percent''.
                                  ____


                           Amendment No. 2724

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``43 
     percent''.
                                  ____


                           Amendment No. 2725

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``47 
     percent''.
                                  ____


                           Amendment No. 2726

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``48 
     percent''.
                                  ____


                           Amendment No. 2727

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``49 
     percent''.
                                  ____


                           Amendment No. 2728

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``50 
     percent''.
                                  ____


                           Amendment No. 2729

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``51 
     percent''.
                                  ____


                           Amendment No. 2730

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``52 
     percent''.
                                  ____


                           Amendment No. 2731

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``53 
     percent''.
                                  ____


                           Amendment No. 2732

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``54 
     percent''.
                                  ____


                           Amendment No. 2733

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``55 
     percent''.
                                  ____


                           Amendment No. 2734

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``62 
     percent''.
                                  ____


                           Amendment No. 2735

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER AGGREGATE DEBT.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``80 percent'' and inserting ``63 
     percent''.
                                  ____


                           Amendment No. 2736

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``35 
     percent''.
                                  ____


                           Amendment No. 2737

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``36 
     percent''.
                                  ____


                           Amendment No. 2738

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``37 
     percent''.
                                  ____


                           Amendment No. 2739

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``38 
     percent''.
                                  ____


                           Amendment No. 2740

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``39 
     percent''.
                                  ____


                           Amendment No. 2741

       On page 268, after line 16, insert the following:

     SEC. 1005. FAMILY FARMER FARMING INCOME.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``50 percent'' and inserting ``40 
     percent''.
                                 ______
                                 

                 GREGG (AND OTHERS) AMENDMENT NO. 2742

  (Ordered to lie on the table.)
  Mr. GREGG (for himself, Ms. Collins, Mr. Abraham, Mr. Coverdell, Mr. 
Frist, Mr. Brownback, and Mr. Hutchinson) submitted an amendment 
intended to be proposed by them to the bill, S. 625, supra; as follows:

       At the appropriate place, insert the following new titles:

                      TITLE__--TEACHER EMPOWERMENT

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Teacher Empowerment Act''.

     SEC. __02. TEACHER EMPOWERMENT.

       (a) In General.--Title II of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6601 et seq.) is amended--
       (1) by striking the heading for title II and inserting the 
     following:

                     ``TITLE II--TEACHER QUALITY'';

       (2) by repealing sections 2001 through 2003; and
       (3) by amending part A to read as follows:

[[Page 28795]]



                     ``PART A--TEACHER EMPOWERMENT

     ``SEC. 2001. PURPOSE.

       ``The purpose of this part is to provide grants to States 
     and local educational agencies, in order to assist their 
     efforts to increase student academic achievement through such 
     strategies as improving teacher quality.

                     ``Subpart 1--Grants to States

     ``SEC. 2011. FORMULA GRANTS TO STATES.

       ``(a) In General.--In the case of each State that, in 
     accordance with section 2014, submits to the Secretary and 
     obtains approval of an application for a fiscal year, the 
     Secretary shall make a grant for the year to the State for 
     the uses specified in section 2012. The grant shall consist 
     of the allotment determined for the State under subsection 
     (b).
       ``(b) Determination of Amount of Allotment.--
       ``(1) Reservation of funds.--
       ``(A) In general.--From the total amount made available to 
     carry out this subpart for any fiscal year, the Secretary 
     shall reserve--
       ``(i) \1/2\ of 1 percent for allotments for the United 
     States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands, to be 
     distributed among those outlying areas on the basis of their 
     relative need, as determined by the Secretary in accordance 
     with the purpose of this part; and
       ``(ii) \1/2\ of 1 percent for the Secretary of the Interior 
     for programs under this part for professional development 
     activities for teachers, other staff, and administrators in 
     schools operated or funded by the Bureau of Indian Affairs.
       ``(B) Limitation.--In reserving an amount for the purposes 
     described in clauses (i) and (ii) of subparagraph (A) for a 
     fiscal year, the Secretary shall not reserve more than the 
     total amount the outlying areas and the schools operated or 
     funded by the Bureau of Indian Affairs received under the 
     authorities described in paragraph (2)(A)(i) for fiscal year 
     1999.
       ``(2) State allotments.--
       ``(A) Hold harmless.--
       ``(i) In general.--Subject to subparagraph (B), from the 
     total amount made available to carry out this subpart for any 
     fiscal year and not reserved under paragraph (1), the 
     Secretary shall allot to each of the 50 States, the District 
     of Columbia, and the Commonwealth of Puerto Rico an amount 
     equal to the total amount that such State received for fiscal 
     year 1999 under--

       ``(I) section 2202(b) of this Act (as in effect on the day 
     before the date of enactment of the Teacher Empowerment Act); 
     and
       ``(II) section 307 of the Department of Education 
     Appropriations Act, 1999.

       ``(ii) Ratable reduction.--If the total amount made 
     available to carry out this subpart for any fiscal year and 
     not reserved under paragraph (1) is insufficient to pay the 
     full amounts that all States are eligible to receive under 
     clause (i) for any fiscal year, the Secretary shall ratably 
     reduce such amounts for such fiscal year.
       ``(B) Allotment of additional funds.--
       ``(i) In general.--Subject to clause (ii), for any fiscal 
     year for which the total amount made available to carry out 
     this subpart and not reserved under paragraph (1) exceeds the 
     total amount made available to the 50 States, the District of 
     Columbia, and the Commonwealth of Puerto Rico for fiscal year 
     1999 under the authorities described in subparagraph (A)(i), 
     the Secretary shall allot to each of those States the sum 
     of--

       ``(I) an amount that bears the same relationship to 50 
     percent of the excess amount as the number of individuals age 
     5 through 17 in the State, as determined by the Secretary on 
     the basis of the most recent satisfactory data, bears to the 
     number of those individuals in all such States, as so 
     determined; and
       ``(II) an amount that bears the same relationship to 50 
     percent of the excess amount as the number of individuals age 
     5 through 17 from families with incomes below the poverty 
     line in the State, as determined by the Secretary on the 
     basis of the most recent satisfactory data, bears to the 
     number of those individuals in all such States, as so 
     determined.

       ``(ii) Exception.--No State receiving an allotment under 
     clause (i) may receive less than \1/2\ of 1 percent of the 
     total excess amount allotted under clause (i) for a fiscal 
     year.
       ``(3) Reallotment.--If any State does not apply for an 
     allotment under this subsection for any fiscal year, the 
     Secretary shall reallot such amount to the remaining States 
     in accordance with this subsection.

     ``SEC. 2012. ALLOCATIONS WITHIN STATES.

       ``(a) Use of Funds.--Each State receiving a grant under 
     this subpart shall use the funds provided under the grant in 
     accordance with this section to carry out activities for the 
     improvement of teaching and learning.
       ``(b) Required and Authorized Expenditures.--
       ``(1) Required expenditures.--The Secretary may make a 
     grant to a State under this subpart only if the State agrees 
     to expend not less than 90 percent of the amount of the funds 
     provided under the grant for the purpose of making subgrants 
     to local educational agencies and eligible partnerships (as 
     defined in section 2021(d)), in accordance with subsection 
     (c).
       ``(2) Authorized expenditures.--A State that receives a 
     grant under this subpart may expend a portion equal to not 
     more than 10 percent of the amount of the funds provided 
     under the grant for 1 or more of the authorized State 
     activities described in section 2013 or to make grants to 
     eligible partnerships to enable the partnerships to carry out 
     subpart 2 (but not more than 5 percent of such portion may be 
     used for planning and administration related to carrying out 
     such purpose).
       ``(c) Distribution of Subgrants to Local Educational 
     Agencies and Eligible Partnerships.--
       ``(1) Allocations to local educational agencies.--
       ``(A) In general.--Subject to subparagraph (B), a State 
     receiving a grant under this subpart shall distribute a 
     portion equal to 80 percent of the amount described in 
     subsection (b)(1) by allocating to each eligible local 
     educational agency the sum of--
       ``(i) an amount that bears the same relationship to 50 
     percent of the portion as the number of individuals enrolled 
     in public and private nonprofit elementary schools and 
     secondary schools in the geographic area served by the agency 
     bears to the number of those individuals in the geographic 
     areas served by all the local educational agencies in the 
     State; and
       ``(ii) an amount that bears the same relationship to 50 
     percent of the portion as the number of individuals age 5 
     through 17 from families with incomes below the poverty line, 
     in the geographic area served by the agency, as determined by 
     the Secretary on the basis of the most recent satisfactory 
     data, bears to the number of those individuals in the 
     geographic areas served by all the local educational agencies 
     in the State, as so determined.
       ``(B) Alternative formula.--A State may increase the 
     percentage described in subparagraph (A)(ii) (and 
     commensurately decrease the percentage described in 
     subparagraph (A)(i)).
       ``(C) Use of funds.--The State shall make subgrants to 
     local educational agencies from allocations made under this 
     paragraph to enable the agencies to carry out subpart 3.
       ``(2) Competitive subgrants to local educational agencies 
     and eligible partnerships.--
       ``(A) Competitive process.--A State receiving a grant under 
     this subpart shall distribute a portion equal to 20 percent 
     of the amount described in subsection (b)(1) through a 
     competitive process.
       ``(B) Participants.--The competitive process carried out 
     under subparagraph (A) shall be open to local educational 
     agencies and eligible partnerships (as defined in section 
     2021(d)). In carrying out the process, the State shall give 
     priority to high-need local educational agencies that focus 
     on math, science, or reading professional development 
     programs.
       ``(C) Subgrants to eligible partnerships.--A State 
     receiving a grant under this subpart shall distribute at 
     least 3 percent of the portion described in subparagraph (A) 
     to the eligible partnerships through the competitive process.
       ``(D) Use of funds.--In distributing funds under this 
     paragraph, the State shall make subgrants--
       ``(i) to local educational agencies to enable the agencies 
     to carry out subpart 3; and
       ``(ii) to the eligible partnerships to enable the 
     partnerships to carry out subpart 2 (but not more than 5 
     percent of the funds made available to the eligible 
     partnerships through the subgrants may be used for planning 
     and administration related to carrying out such purpose).

     ``SEC. 2013. STATE USE OF FUNDS.

       ``(a) Authorized State Activities.--The authorized State 
     activities referred to in section 2012(b)(2) are the 
     following:
       ``(1) Reforming teacher certification (including 
     recertification) or licensure requirements to ensure that--
       ``(A) teachers have the necessary teaching skills and 
     academic content knowledge in the academic subjects in which 
     the teachers are assigned to teach;
       ``(B) the requirements are aligned with the State's 
     challenging State content standards; and
       ``(C) teachers have the knowledge and skills necessary to 
     help students meet challenging State student performance 
     standards.
       ``(2) Carrying out programs that--
       ``(A) include support during the initial teaching 
     experience, such as mentoring programs; and
       ``(B) establish, expand, or improve alternative routes to 
     State certification of teachers for highly qualified 
     individuals with a baccalaureate degree, including mid-career 
     professionals from other occupations, paraprofessionals, 
     former military personnel, and recent college or university 
     graduates with records of academic distinction who 
     demonstrate the potential to become highly effective 
     teachers.
       ``(3) Developing and implementing effective mechanisms to 
     assist local educational agencies and schools in effectively 
     recruiting and retaining highly qualified and effective 
     teachers and principals.
       ``(4) Reforming tenure systems and implementing teacher 
     testing and other procedures to remove expeditiously 
     incompetent and ineffective teachers from the classroom.

[[Page 28796]]

       ``(5) Developing or improving systems of performance 
     measures to evaluate the effectiveness of professional 
     development programs and activities in improving teacher 
     quality, skills, and content knowledge, and increasing 
     student achievement.
       ``(6) Developing or improving systems to evaluate the 
     impact of teachers on student achievement.
       ``(7) Providing technical assistance to local educational 
     agencies consistent with this part.
       ``(8) Funding projects to promote reciprocity of teacher 
     certification or licensure between or among States, except 
     that no reciprocity agreement developed under this paragraph 
     or developed using funds provided under this part may lead to 
     the weakening of any State teaching certification or 
     licensing requirement.
       ``(9) Developing or assisting local educational agencies or 
     eligible partnerships (as defined in section 2021(d)) in the 
     development and utilization of proven, innovative strategies 
     to deliver intensive professional development programs and 
     activities that are both cost-effective and easily 
     accessible, such as through the use of technology and 
     distance learning.
       ``(b) Coordination.--A State that receives a grant to carry 
     out this subpart and a grant under section 202 of the Higher 
     Education Act of 1965 (20 U.S.C. 1022) shall coordinate the 
     activities carried out under this section and the activities 
     carried out under that section 202.
       ``(c) Public Accountability.--
       ``(1) In general.--A State that receives a grant under this 
     subpart--
       ``(A) in the event the State provides public State report 
     cards on education, shall include in such report cards 
     information on the State's progress with respect to--
       ``(i) subject to paragraph (2), improving student academic 
     achievement, as defined by the State;
       ``(ii) closing academic achievement gaps, as defined by the 
     State, between groups described in paragraph (2)(A)(i); and
       ``(iii) increasing the percentage of classes in core 
     academic subjects that are taught by highly qualified 
     teachers; or
       ``(B) in the event the State provides no such report card, 
     shall publicly report the information described in 
     subparagraph (A) through other means.
       ``(2) Disaggregated data.--The information described in 
     clauses (i) and (ii) of paragraph (1)(A) and clauses (i) and 
     (ii) of section 2014(b)(2)(A) shall be--
       ``(A) disaggregated--
       ``(i) by minority and non-minority group and by low-income 
     and non-low-income group; and
       ``(ii) using assessments under section 1111(b)(3); and
       ``(B) publicly reported in the form of disaggregated data 
     only when such data are statistically sound.
       ``(3) Public availability.--Such information shall be made 
     widely available to the public, including parents and 
     students, through major print and broadcast media outlets 
     throughout the State.

     ``SEC. 2014. APPLICATIONS BY STATES.

       ``(a) In General.--To be eligible to receive a grant under 
     this subpart, a State shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may reasonably require.
       ``(b) Contents.--Each application submitted under this 
     section shall include the following:
       ``(1) A description of how the State will ensure that a 
     local educational agency receiving a subgrant to carry out 
     subpart 3 will comply with the requirements of such subpart.
       ``(2)(A) A description of the performance indicators that 
     the State will use to measure the annual progress of the 
     local educational agencies and schools in the State with 
     respect to--
       ``(i) subject to section 2013(c)(2), improving student 
     academic achievement, as defined by the State;
       ``(ii) closing academic achievement gaps, as defined by the 
     State, between groups described in section 2013(c)(2)(A)(i); 
     and
       ``(iii) increasing the percentage of classes in core 
     academic subjects that are taught by highly qualified 
     teachers.
       ``(B) An assurance that the State will require each local 
     educational agency and school in the State receiving funds 
     under this part to publicly report information on the 
     agency's or school's annual progress, as measured by the 
     performance indicators.
       ``(3) A description of how the State will hold the local 
     educational agencies and schools accountable for making 
     annual gains toward meeting the performance indicators 
     described in paragraph (2).
       ``(4)(A) A description of how the State will coordinate 
     professional development activities authorized under this 
     part with professional development activities provided under 
     other Federal, State, and local programs, including those 
     authorized under title I, title III, title IV, part A of 
     title VII, and (where applicable) the Individuals with 
     Disabilities Education Act (20 U.S.C. 1400 et seq.) and the 
     Carl D. Perkins Vocational and Technical Education Act of 
     1998 (20 U.S.C. 2301 et seq.).
       ``(B) A description of the comprehensive strategy that the 
     State will use as part of the effort to carry out the 
     coordination, to ensure that teachers are trained in the 
     utilization of technology so that technology and technology 
     applications are effectively used in the classroom to improve 
     teaching and learning in all curriculum areas and academic 
     subjects, as appropriate.
       ``(5) A description of how the State will encourage the 
     development of proven, innovative strategies to deliver 
     intensive professional development programs that are both 
     cost-effective and easily accessible, such as through the use 
     of technology and distance learning.
       ``(c) Application Submission.--A State application 
     submitted to the Secretary under this section shall be 
     approved by the Secretary unless the Secretary makes a 
     written determination, within 90 days after receiving the 
     application, that the application is in violation of the 
     provisions of this Act.

            ``Subpart 2--Subgrants to Eligible Partnerships

     ``SEC. 2021. PARTNERSHIP GRANTS.

       ``(a) In General.--From the amount described in section 
     2012(c)(2)(C), the State agency for higher education, working 
     in conjunction with the State educational agency (if such 
     agencies are separate), shall award subgrants on a 
     competitive basis under section 2012(c) to eligible 
     partnerships to enable such partnerships to carry out 
     activities described in subsection (b). Such subgrants shall 
     be equitably distributed by geographic area within the State.
       ``(b) Use of Funds.--An eligible partnership that receives 
     funds under section 2012 shall use the funds for--
       ``(1) professional development activities in core academic 
     subjects to ensure that teachers have content knowledge in 
     the academic subjects that the teachers teach; and
       ``(2) developing and providing assistance to local 
     educational agencies and the teachers, principals, and 
     administrators of public and private schools served by each 
     such agency, for sustained, high-quality professional 
     development activities that--
       ``(A) ensure the agencies and individuals are able to use 
     State content standards, performance standards, and 
     assessments to improve instructional practices and improve 
     student achievement; and
       ``(B) may include intensive programs designed to prepare 
     teachers who will return to a school to provide such 
     instruction to other teachers within such school.
       ``(c) Special Rule.--No single participant in an eligible 
     partnership may use more than 50 percent of the funds made 
     available to the partnership under section 2012.
       ``(d) Coordination.--An eligible partnership that receives 
     a grant to carry out this subpart and a grant under section 
     203 of the Higher Education Act of 1965 (20 U.S.C. 1023) 
     shall coordinate the activities carried out under this 
     section and the activities carried out under that section 
     203.
       ``(e) Eligible Partnership.--In this section, the term 
     `eligible partnership' means an entity that--
       ``(1) shall include--
       ``(A) a high-need local educational agency;
       ``(B) a school of arts and sciences; and
       ``(C) an institution that prepares teachers; and
       ``(2) may include other local educational agencies, a 
     public charter school, a public or private elementary school 
     or secondary school, an educational service agency, a public 
     or private nonprofit educational organization, or a business.

          ``Subpart 3--Subgrants to Local Educational Agencies

     ``SEC. 2031. LOCAL USE OF FUNDS.

       ``(a) Required Activities.--
       ``(1) In general.--Each local educational agency that 
     receives a subgrant to carry out this subpart shall use the 
     subgrant to carry out the activities described in this 
     subsection.
       ``(2) Required professional development activities.--
       ``(A) Mathematics and science.--
       ``(i) In general.--Each local educational agency that 
     receives a subgrant to carry out this subpart shall use a 
     portion of the funds made available through the subgrant for 
     professional development activities in mathematics and 
     science in accordance with section 2032.
       ``(ii) Grandfather of old waivers.--A waiver provided to a 
     local educational agency under part D of title XIV prior to 
     the date of enactment of the Teacher Empowerment Act shall be 
     deemed to be in effect until such time as the waiver 
     otherwise would have ceased to be effective.
       ``(B) Professional development activities.--Each local 
     educational agency that receives a subgrant to carry out this 
     subpart shall use a portion of the funds made available 
     through the subgrant for professional development activities 
     that give teachers, principals, and administrators the 
     knowledge and skills to provide students with the opportunity 
     to meet challenging State or local content standards and 
     student performance standards. Such activities shall be 
     consistent with section 2032.
       ``(b) Allowable Activities.--Each local educational agency 
     that receives a subgrant to carry out this subpart may use 
     the funds made available through the subgrant to carry out 
     the following activities:
       ``(1) Recruiting and hiring certified or licensed teachers, 
     including teachers certified

[[Page 28797]]

     through State and local alternative routes, in order to 
     reduce class size, or hiring special education teachers.
       ``(2) Initiatives to assist in recruitment of highly 
     qualified teachers who will be assigned teaching positions 
     within their fields, including--
       ``(A) providing signing bonuses or other financial 
     incentives, such as differential pay, for teachers to teach 
     in academic subjects in which there exists a shortage of such 
     teachers within a school or the area served by the local 
     educational agency;
       ``(B) establishing programs that--
       ``(i) recruit professionals from other fields and provide 
     such professionals with alternative routes to teacher 
     certification; and
       ``(ii) provide increased opportunities for minorities, 
     individuals with disabilities, and other individuals 
     underrepresented in the teaching profession; and
       ``(C) implementing hiring policies that ensure 
     comprehensive recruitment efforts as a way to expand the 
     applicant pool of teachers, such as identifying teachers 
     certified through alternative routes, and by implementing a 
     system of intensive screening designed to hire the most 
     qualified applicants.
       ``(3) Initiatives to promote retention of highly qualified 
     teachers and principals, including--
       ``(A) programs that provide mentoring to newly hired 
     teachers, such as mentoring from master teachers, and to 
     newly hired principals; and
       ``(B) programs that provide other incentives, including 
     financial incentives, to retain teachers who have a record of 
     success in helping low-achieving students improve their 
     academic success.
       ``(4) Programs and activities that are designed to improve 
     the quality of the teacher force, such as--
       ``(A) innovative professional development programs (which 
     may be through partnerships including institutions of higher 
     education), including programs that train teachers to utilize 
     technology to improve teaching and learning, that are 
     consistent with the requirements of section 2032;
       ``(B) development and utilization of proven, cost-effective 
     strategies for the implementation of professional development 
     activities, such as through the utilization of technology and 
     distance learning;
       ``(C) professional development programs that provide 
     instruction in how to teach children with different learning 
     styles, particularly children with disabilities and children 
     with special learning needs (including children who are 
     gifted and talented); and
       ``(D) professional development programs that provide 
     instruction in how best to discipline children in the 
     classroom and identify early and appropriate interventions to 
     help children described in subparagraph (C) to learn.
       ``(5) Programs and activities related to--
       ``(A) tenure reform;
       ``(B) provision of merit pay; and
       ``(C) testing of elementary school and secondary school 
     teachers in the academic subjects taught by such teachers.
       ``(6) Activities that provide teacher opportunity payments, 
     consistent with section 2033.

     ``SEC. 2032. PROFESSIONAL DEVELOPMENT FOR TEACHERS.

       ``(a) Limitation Relating to Curriculum and Academic 
     Subjects.--
       ``(1) In general.--Except as provided in paragraph (2), 
     funds made available to carry out this subpart may not be 
     provided for a teacher and a professional development 
     activity if the activity is not--
       ``(A) directly related to the curriculum and academic 
     subjects in which the teacher provides instruction; or
       ``(B) designed to enhance the ability of the teacher to 
     understand and use State standards for the academic subjects 
     in which the teacher provides instruction.
       ``(2) Exception.--Paragraph (1) shall not be construed to 
     prohibit the use of the funds for professional development 
     activities that provide instruction described in 
     subparagraphs (C) and (D) of section 2031(b)(4).
       ``(b) Other Requirements.--Professional development 
     activities provided under this subpart--
       ``(1) shall be measured, in terms of progress, using the 
     specific performance indicators established by the State 
     involved in accordance with section 2014(b)(2);
       ``(2) shall be tied to challenging State or local content 
     standards and student performance standards;
       ``(3) shall be tied to scientifically based research 
     demonstrating the effectiveness of the activities in 
     increasing student achievement or substantially increasing 
     the knowledge and teaching skills of the teachers 
     participating in the activities;
       ``(4) shall be of sufficient intensity and duration to have 
     a positive and lasting impact on the performance of a teacher 
     in the classroom (which shall not include 1-day or short-term 
     workshops and conferences), except that this paragraph shall 
     not apply to an activity if such activity is 1 component 
     described in a long-term comprehensive professional 
     development plan established by the teacher and the teacher's 
     supervisor based upon an assessment of the needs of the 
     teacher, the students of the teacher, and the local 
     educational agency involved; and
       ``(5) shall be developed with extensive participation of 
     teachers, principals, and administrators of schools to be 
     served under this part.
       ``(c) Accountability and Required Payments.--
       ``(1) In general.--A State shall notify a local educational 
     agency that the agency may be subject to the requirement of 
     paragraph (3) if, after any fiscal year, the State determines 
     that the professional development activities funded by the 
     agency under this subpart fail to meet the requirements of 
     subsections (a) and (b).
       ``(2) Technical assistance.--A local educational agency 
     that has received notification pursuant to paragraph (1) may 
     request technical assistance from the State in order to 
     provide the opportunity for such local educational agency to 
     comply with the requirements of subsections (a) and (b).
       ``(3) Requirement to provide teacher opportunity 
     payments.--
       ``(A) In general.--A local educational agency that has 
     received notification from the State pursuant to paragraph 
     (1) during any 2 consecutive fiscal years shall expend under 
     section 2033 for the succeeding fiscal year a proportion of 
     the funds made available to the agency to carry out this 
     subpart equal to the proportion of such funds expended by the 
     agency for professional development activities for the second 
     fiscal year in which the agency received the notification.
       ``(B) Requests.--On request by a group of teachers in 
     schools served by the local educational agency, the agency 
     shall use a portion of the funds provided to the agency to 
     carry out this subpart, to provide payments in accordance 
     with section 2033.
       ``(d) Definition.--In this section, the term `professional 
     development activity' means an activity described in 
     subsection (a)(2) or (b)(4) of section 2031.

     ``SEC. 2033. TEACHER OPPORTUNITY PAYMENTS.

       ``(a) In General.--A local educational agency receiving 
     funds to carry out this subpart may (or in the case of 
     section 2032(c)(3), shall) provide payments directly to a 
     teacher or a group of teachers seeking opportunities to 
     participate in a professional development activity of their 
     choice.
       ``(b) Notice to Teachers.--Each local educational agency 
     distributing payments under this section--
       ``(1) shall establish and implement a timely process 
     through which proper notice of availability of the payments 
     will be given to all teachers in schools served by the 
     agency; and
       ``(2) shall develop a process through which teachers will 
     be specifically recommended by principals to participate in 
     such opportunities by virtue of--
       ``(A) the teachers' lack of full certification or licensing 
     to teach the academic subjects in which the teachers teach; 
     or
       ``(B) the teachers' need for additional assistance to 
     ensure that their students make progress toward meeting 
     challenging State content standards and student performance 
     standards.
       ``(c) Selection of Teachers.--In the event adequate funding 
     is not available to provide payments under this section to 
     all teachers seeking such payments, or recommended under 
     subsection (b)(2), a local educational agency shall establish 
     procedures for selecting teachers for the payments, which 
     shall provide priority for those teachers recommended under 
     subsection (b)(2).
       ``(d) Eligible Activity.--A teacher receiving a payment 
     under this section shall have the choice of attending any 
     professional development activity that meets the criteria set 
     forth in subsections (a) and (b) of section 2032.

     ``SEC. 2034. LOCAL APPLICATIONS.

       ``(a) In General.--A local educational agency seeking to 
     receive a subgrant from a State to carry out this subpart 
     shall submit an application to the State--
       ``(1) at such time as the State shall require; and
       ``(2) that is coordinated with other programs carried out 
     under this Act (other than programs carried out under this 
     subpart).
       ``(b) Local Application Contents.--The local application 
     described in subsection (a) shall include, at a minimum, the 
     following:
       ``(1) A description of how the local educational agency 
     intends to use funds provided to carry out this subpart.
       ``(2) An assurance that the local educational agency will 
     target funds to schools served by the local educational 
     agency that--
       ``(A) have the lowest proportions of highly qualified 
     teachers; or
       ``(B) are identified for school improvement under section 
     1116(c).
       ``(3) A description of how the local educational agency 
     will coordinate professional development activities 
     authorized under this subpart with professional development 
     activities provided through other Federal, State, and local 
     programs, including those authorized under title I, title 
     III, title IV, part A of title VII, and (where applicable) 
     the Individuals with Disabilities Education Act (20 U.S.C. 
     1400 et seq.) and the Carl D. Perkins Vocational and 
     Technical Education Act of 1998 (20 U.S.C. 2301 et seq.).
       ``(4) A description of how the local educational agency 
     will integrate funds received to carry out this subpart with 
     funds received

[[Page 28798]]

     under title III that are used for professional development to 
     train teachers in how to use technology to improve learning 
     and teaching.
       ``(5) A description of how the local educational agency has 
     collaborated with teachers, principals, parents, and 
     administrators in the preparation of the application.
       ``(c) Parents' Right-To-Know.--A local educational agency 
     that receives funds to carry out this subpart shall provide, 
     upon request and in an understandable and uniform format, to 
     any parent of a student attending any school receiving funds 
     under this subpart from the agency, information regarding the 
     professional qualifications of the student's classroom 
     teachers, including, at a minimum, whether the teachers are 
     highly qualified.

                    ``Subpart 4--National Activities

     ``SEC. 2041. ALTERNATIVE ROUTES TO TEACHING.

       ``(a) Teacher Excellence Academies.--The Secretary may 
     award grants on a competitive basis to eligible consortia to 
     carry out activities described in this section.
       ``(b) Use of Funds.--
       ``(1) In general.--An eligible consortium receiving funds 
     under this section shall use the funds to pay the costs 
     associated with the establishment or expansion of a teacher 
     academy, in an elementary school or secondary school 
     facility, that carries out--
       ``(A) the activities promoting alternative routes to State 
     teacher certification specified in paragraph (2); or
       ``(B) the model professional development activities 
     specified in paragraph (3).
       ``(2) Promoting alternative routes to teacher 
     certification.--The activities promoting alternative routes 
     to State teacher certification specified in this paragraph 
     are the design and implementation of a course of study and 
     activities providing an alternative route to State teacher 
     certification that--
       ``(A) provide opportunities to highly qualified individuals 
     with a baccalaureate degree, including mid-career 
     professionals from other occupations, paraprofessionals, 
     former military personnel, and recent college or university 
     graduates with records of academic distinction;
       ``(B) provide stipends, for not more than 2 years, to 
     permit individuals described in subparagraph (A) to 
     participate as student teachers able to fill teaching needs 
     in academic subjects in which there is a demonstrated 
     shortage of teachers;
       ``(C) provide for the recruitment and hiring of master 
     teachers to mentor and train student teachers within such 
     academies; and
       ``(D) include a reasonable service requirement for 
     individuals completing the course of study and alternative 
     certification activities established by the eligible 
     consortium.
       ``(3) Model professional development.--The model 
     professional development activities specified in this 
     paragraph are activities providing ongoing professional 
     development opportunities for teachers, such as--
       ``(A) innovative programs and model curricula in the area 
     of professional development, which may serve as models to be 
     disseminated to other schools and local educational agencies; 
     and
       ``(B) the development of innovative techniques for 
     evaluating the effectiveness of professional development 
     programs.
       ``(c) Grant for Special Consortium.--In making grants under 
     this section, the Secretary shall award not less than 1 grant 
     to an eligible consortium that--
       ``(1) includes a high-need local educational agency located 
     in a rural area; and
       ``(2) proposes activities that involve the extensive use of 
     distance learning in order to provide the applicable course 
     work to student teachers.
       ``(d) Special Rule.--No single participant in an eligible 
     consortium may use more than 50 percent of the funds made 
     available to the consortium under this section.
       ``(e) Application.--To be eligible to receive a grant under 
     this section, an eligible consortium shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may 
     reasonably require.
       ``(f) Eligible Consortium.--In this section, the term 
     `eligible consortium' means a consortium for a State that--
       ``(1) shall include--
       ``(A) the State agency responsible for certifying or 
     licensing teachers;
       ``(B) not less than 1 high-need local educational agency;
       ``(C) a school of arts and sciences; and
       ``(D) an institution that prepares teachers; and
       ``(2) may include local educational agencies, public 
     charter schools, public or private elementary schools or 
     secondary schools, educational service agencies, public or 
     private nonprofit educational organizations, museums, or 
     businesses.

     ``SEC. 2042. EISENHOWER NATIONAL CLEARINGHOUSE FOR 
                   MATHEMATICS AND SCIENCE EDUCATION.

       ``The Secretary may award a grant or contract, in 
     consultation with the Director of the National Science 
     Foundation, to an entity to continue the Eisenhower National 
     Clearinghouse for Mathematics and Science Education.

                          ``Subpart 5--Funding

     ``SEC. 2051. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Fiscal Year 2000.--There are authorized to be 
     appropriated to carry out this part $1,558,000,000 for fiscal 
     year 2000, of which $15,000,000 shall be available to carry 
     out subpart 4.
       ``(b) Other Fiscal Years.--There are authorized to be 
     appropriated to carry out this part such sums as may be 
     necessary for fiscal years 2001 through 2004.

                    ``Subpart 6--General Provisions

     ``SEC. 2061. DEFINITIONS.

       ``In this part:
       ``(1) Arts and sciences.--The term `arts and sciences' has 
     the meaning given the term in section 201(b) of the Higher 
     Education Act of 1965 (20 U.S.C. 1021(b)).
       ``(2) Highly qualified.--The term `highly qualified' 
     means--
       ``(A) with respect to an elementary school teacher, a 
     teacher--
       ``(i) with an academic major in the arts and sciences; or
       ``(ii) who can demonstrate competence through a high level 
     of performance in core academic subjects; and
       ``(B) with respect to a secondary school teacher, a 
     teacher--
       ``(i) with an academic major in the academic subject in 
     which the teacher teaches or in a related field;
       ``(ii) who can demonstrate a high level of competence 
     through rigorous academic subject tests; or
       ``(iii) who can demonstrate competence through a high level 
     of performance in relevant content areas.
       ``(3) High-need local educational agency.--The term `high-
     need local educational agency' means a local educational 
     agency that serves an elementary school or secondary school 
     located in an area in which there is--
       ``(A) a high percentage of individuals from families with 
     incomes below the poverty line;
       ``(B) a high percentage of secondary school teachers not 
     teaching in the academic subject in which the teachers were 
     trained to teach; or
       ``(C) a high teacher turnover rate.
       ``(4) Out-of-field teacher.--The term `out-of-field 
     teacher' means a teacher--
       ``(A) teaching an academic subject for which the teacher is 
     not highly qualified, as determined by the State involved; or
       ``(B) who did not receive a degree from an institution of 
     higher education with a major or minor in the field in which 
     the teacher teaches.
       ``(5) Poverty line.--The term `poverty line' means the 
     poverty line (as defined by the Office of Management and 
     Budget and revised annually in accordance with section 673(2) 
     of the Community Services Block Grant Act (42 U.S.C. 
     9902(2))) applicable to a family of the size involved.
       ``(6) Scientifically based research.--The term 
     `scientifically based research'--
       ``(A) means the application of rigorous, systematic, and 
     objective procedures to obtain valid knowledge relevant to 
     professional development of teachers; and
       ``(B) includes research that--
       ``(i) employs systematic, empirical methods that draw on 
     observation or experiment;
       ``(ii) involves rigorous data analyses that are adequate to 
     test the stated hypotheses and justify the general 
     conclusions drawn;
       ``(iii) relies on measurements or observational methods 
     that provide valid data across evaluators and observers and 
     across multiple measurements and observations; and
       ``(iv) has been accepted by a peer-reviewed journal or 
     approved by a panel of independent experts through a 
     comparably rigorous, objective, and scientific review.''.
       (b) Conforming Amendment.--Section 13302(1) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8672(1)) is amended by striking ``2102(b)'' and inserting 
     ``2042''.

     SEC. __03. GENERAL PROVISIONS.

       (a) In General.--Title II of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6601 et seq.) is amended--
       (1) by repealing part D;
       (2) by redesignating part E as part C; and
       (3) by repealing sections 2401 and 2402 and inserting the 
     following:

     ``SEC. 2401. PROHIBITION ON MANDATORY NATIONAL CERTIFICATION 
                   OR LICENSING OF TEACHERS.

       ``(a) Prohibition on Mandatory Testing, Certification, or 
     Licensing.--Notwithstanding any other provision of law, the 
     Secretary may not use Federal funds to plan, develop, 
     implement, or administer any mandatory national teacher test 
     or method of certification or licensing.
       ``(b) Prohibition on Withholding Funds.--The Secretary may 
     not withhold funds from any State or local educational agency 
     if such State or local educational agency fails to adopt a 
     specific method of teacher certification or licensing.

     ``SEC. 2402. PROVISIONS RELATED TO PRIVATE SCHOOLS.

       ``The provisions of sections 14503 through 14506 apply to 
     programs carried out under this title.

     ``SEC. 2403. HOME SCHOOLS.

       ``Nothing in this title shall be construed to permit, 
     allow, encourage, or authorize any Federal control over any 
     aspect of any private, religious, or home school, whether a

[[Page 28799]]

     home school is treated as a private school or home school 
     under the law of the State involved, except that the 
     Secretary may require that funds provided to a school under 
     this title be used for the purposes described in this title. 
     This section shall not be construed to bar private, 
     religious, or home schools from participating in or receiving 
     programs or services under this title.''.
       (b) Conforming Amendments.--
       (1) Coordination.--Section 1202(c)(2)(C) of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6362(c)(2)(C)) 
     is amended, in the subparagraph heading, by striking ``part 
     c'' and inserting ``part b''.
       (2) Definition of covered program.--Section 14101(10)(C) of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8801(10)(C)) is amended by striking ``(other than section 
     2103 and part D)''.
       (3) Private school participation.--Section 14503(b)(1)(B) 
     (20 U.S.C. 8893(b)(1)(B)) of such Act is amended by striking 
     ``(other than section 2103 and part D of such title)''.

                 TITLE __--TEACHER LIABILITY PROTECTION

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Teacher Liability 
     Protection Act of 1999''.

     SEC. __02. FINDINGS AND PURPOSE.

       (a) Findings.--Congress makes the following findings:
       (1) The ability of teachers, principals and other school 
     professionals to teach, inspire and shape the intellect of 
     our Nation's elementary and secondary school students is 
     deterred and hindered by frivolous lawsuits and litigation.
       (2) Each year more and more teachers, principals and other 
     school professionals face lawsuits for actions undertaken as 
     part of their duties to provide millions of school children 
     quality educational opportunities.
       (3) Too many teachers, principals and other school 
     professionals face increasingly severe and random acts of 
     violence in the classroom and in schools.
       (4) Providing teachers, principals and other school 
     professionals a safe and secure environment is an important 
     part of the effort to improve and expand educational 
     opportunities.
       (5) Clarifying and limiting the liability of teachers, 
     principals and other school professionals who undertake 
     reasonable actions to maintain order, discipline and an 
     appropriate educational environment is an appropriate subject 
     of Federal legislation because--
       (A) the national scope of the problems created by the 
     legitimate fears of teachers, principals and other school 
     professionals about frivolous, arbitrary or capricious 
     lawsuits against teachers; and
       (B) millions of children and their families across the 
     Nation depend on teachers, principals and other school 
     professionals for the intellectual development of the 
     children.
       (b) Purpose.--The purpose of this title is to provide 
     teachers, principals and other school professionals the tools 
     they need to undertake reasonable actions to maintain order, 
     discipline and an appropriate educational environment.

     SEC. __03. PREEMPTION AND ELECTION OF STATE NONAPPLICABILITY.

       (a) Preemption.--This title preempts the laws of any State 
     to the extent that such laws are inconsistent with this 
     title, except that this title shall not preempt any State law 
     that provides additional protection from liability relating 
     to teachers.
       (b) Election of State Regarding Nonapplicability.--This 
     title shall not apply to any civil action in a State court 
     against a teacher in which all parties are citizens of the 
     State if such State enacts a statute in accordance with State 
     requirements for enacting legislation--
       (1) citing the authority of this subsection;
       (2) declaring the election of such State that this title 
     shall not apply, as of a date certain, to such civil action 
     in the State; and
       (3) containing no other provisions.

     SEC. __04. LIMITATION ON LIABILITY FOR TEACHERS.

       (a) Liability Protection for Teachers.--Except as provided 
     in subsections (b) and (c), no teacher in a school shall be 
     liable for harm caused by an act or omission of the teacher 
     on behalf of the school if--
       (1) the teacher was acting within the scope of the 
     teacher's employment or responsibilities related to providing 
     educational services;
       (2) the actions of the teacher were carried out in 
     conformity with State or Federal laws rules or regulations in 
     furtherance of efforts to control, discipline, expel, or 
     suspend a student or maintain order or control in the 
     classroom or school;
       (3) if appropriate or required, the teacher was properly 
     licensed, certified, or authorized by the appropriate 
     authorities for the activities or practice in the State in 
     which the harm occurred, where the activities were or 
     practice was undertaken within the scope of the teacher's 
     responsibilities;
       (4) the harm was not caused by willful or criminal 
     misconduct, gross negligence, reckless misconduct, or a 
     conscious, flagrant indifference to the rights or safety of 
     the individual harmed by the teacher; and
       (5) the harm was not caused by the teacher operating a 
     motor vehicle, vessel, aircraft, or other vehicle for which 
     the State requires the operator or the owner of the vehicle, 
     craft, or vessel to--
       (A) possess an operator's license; or
       (B) maintain insurance.
       (b) Concerning Responsibility of Teachers to Schools and 
     Governmental Entities.--Nothing in this section shall be 
     construed to affect any civil action brought by any school or 
     any governmental entity against any teacher of such school.
       (c) Exceptions to Teacher Liability Protection.--If the 
     laws of a State limit teacher liability subject to one or 
     more of the following conditions, such conditions shall not 
     be construed as inconsistent with this section:
       (1) A State law that requires a school or governmental 
     entity to adhere to risk management procedures, including 
     mandatory training of teachers.
       (2) A State law that makes the school or governmental 
     entity liable for the acts or omissions of its teachers to 
     the same extent as an employer is liable for the acts or 
     omissions of its employees.
       (3) A State law that makes a limitation of liability 
     inapplicable if the civil action was brought by an officer of 
     a State or local government pursuant to State or local law.
       (d) Limitation on Punitive Damages Based on the Actions of 
     Teachers.--
       (1) General rule.--Punitive damages may not be awarded 
     against a teacher in an action brought for harm based on the 
     action of a teacher acting within the scope of the teacher's 
     responsibilities to a school or governmental entity unless 
     the claimant establishes by clear and convincing evidence 
     that the harm was proximately caused by an action of such 
     teacher which constitutes willful or criminal misconduct, or 
     a conscious, flagrant indifference to the rights or safety of 
     the individual harmed.
       (2) Construction.--Paragraph (1) does not create a cause of 
     action for punitive damages and does not preempt or supersede 
     any Federal or State law to the extent that such law would 
     further limit the award of punitive damages.
       (e) Exceptions to Limitations on Liability.--
       (1) In general.--The limitations on the liability of a 
     teacher under this title shall not apply to any misconduct 
     that--
       (A) constitutes a crime of violence (as that term is 
     defined in section 16 of title 18, United States Code) or act 
     of international terrorism (as that term is defined in 
     section 2331 of title 18, United States Code) for which the 
     defendant has been convicted in any court;
       (B) involves a sexual offense as defined by applicable 
     State law, for which the defendant had been convicted in any 
     court;
       (C) involves misconduct for which the defendant has been 
     found to have violated a Federal or State Civil rights law; 
     or
       (D) where the defendant was under the influence (as 
     determined pursuant to applicable State law) of intoxicating 
     alcohol or any drug at the time of the misconduct.
       (2) Rule of construction.--Nothing in this subsection shall 
     be construed to affect subsection (a)(3) or (d).

     SEC. __05. LIABILITY FOR NONECONOMIC LOSS.

       (a) General Rule.--In any civil action against a teacher, 
     based on an action of a teacher acting within the scope of 
     the teacher's responsibilities to a school or governmental 
     entity, the liability of the teacher for noneconomic loss 
     shall be determined in accordance with subsection (b).
       (b) Amount of Liability.--
       (1) In general.--Each defendant who is a teacher, shall be 
     liable only for the amount of noneconomic loss allocated to 
     that defendant in direct proportion to the percentage of 
     responsibility of that defendant (determined in accordance 
     with paragraph (2)) for the harm to the claimant with respect 
     to which that defendant is liable. The court shall render a 
     separate judgment against each defendant in an amount 
     determined pursuant to the preceding sentence.
       (2) Percentage of responsibility.--For purposes of 
     determining the amount of noneconomic loss allocated to a 
     defendant who is a teacher under this section, the trier of 
     fact shall determine the percentage of responsibility of that 
     defendant for the claimant's harm.

     SEC. __06. DEFINITIONS.

       For purposes of this title:
       (1) Economic loss.--The term ``economic loss'' means any 
     pecuniary loss resulting from harm (including the loss of 
     earnings or other benefits related to employment, medical 
     expense loss, replacement services loss, loss due to death, 
     burial costs, and loss of business or employment 
     opportunities) to the extent recovery for such loss is 
     allowed under applicable State law.
       (2) Harm.--The term ``harm'' includes physical, 
     nonphysical, economic, and noneconomic losses.
       (3) Noneconomic losses.--The term ``noneconomic losses'' 
     means losses for physical and emotional pain, suffering, 
     inconvenience, physical impairment, mental anguish, 
     disfigurement, loss of enjoyment of life, loss of society and 
     companionship, loss of consortium (other than loss of 
     domestic service), hedonic damages, injury to reputation and 
     all other nonpecuniary losses of any kind or nature.
       (4) School.--The term ``school'' means a public or private 
     kindergarten, a public or

[[Page 28800]]

     private elementary school or secondary school (as defined in 
     section 14101 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 8801)), or a home school.
       (5) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the United States Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, any other territory or possession 
     of the United States, or any political subdivision of any 
     such State, territory, or possession.
       (6) Teacher.--The term ``teacher'' means a teacher, 
     instructor, principal, administrator, or other educational 
     professional, that works in a school.

     SEC. __07. EFFECTIVE DATE.

       (a) In General.--This title shall take effect 90 days after 
     the date of enactment of this Act.
       (b) Application.--This title applies to any claim for harm 
     caused by an act or omission of a teacher where that claim is 
     filed on or after the effective date of this Act, without 
     regard to whether the harm that is the subject of the claim 
     or the conduct that caused the harm occurred before such 
     effective date.

     TITLE __--FULL TAX DEDUCTION FOR CERTAIN PROFESSIONAL EXPENSES

     SEC. __01. 2-PERCENT FLOOR ON MISCELLANEOUS ITEMIZED 
                   DEDUCTIONS NOT TO APPLY TO QUALIFIED 
                   PROFESSIONAL DEVELOPMENT EXPENSES AND QUALIFIED 
                   INCIDENTAL EXPENSES OF ELEMENTARY AND SECONDARY 
                   SCHOOL TEACHERS.

       (a) Qualified Professional Development Expenses 
     Deduction.--
       (1) In general.--Section 67(b) of the Internal Revenue Code 
     of 1986 (defining miscellaneous itemized deductions) is 
     amended by striking ``and'' at the end of paragraph (11), by 
     striking the period at the end of paragraph (12) and 
     inserting ``, and'', and by adding at the end the following 
     new paragraph:
       ``(13) any deduction allowable for the qualified 
     professional development expenses of an eligible teacher.''.
       (2) Definitions.--Section 67 of such Code (relating to 2-
     percent floor on miscellaneous itemized deductions) is 
     amended by adding at the end the following new subsection:
       ``(g) Qualified Professional Development Expenses of 
     Eligible Teachers.--For purposes of subsection (b)(13)--
       ``(1) Qualified professional development expenses.--
       ``(A) In general.--The term `qualified professional 
     development expenses' means expenses--
       ``(i) for tuition, fees, books, supplies, equipment, and 
     transportation required for the enrollment or attendance of 
     an individual in a qualified course of instruction, and
       ``(ii) with respect to which a deduction is allowable under 
     section 162 (determined without regard to this section).
       ``(B) Qualified course of instruction.--The term `qualified 
     course of instruction' means a course of instruction which--
       ``(i) is--

       ``(I) at an institution of higher education (as defined in 
     section 481 of the Higher Education Act of 1965 (20 U.S.C. 
     1088), as in effect on the date of the enactment of this 
     subsection), or
       ``(II) a professional conference, and

       ``(ii) is part of a program of professional development 
     which is approved and certified by the appropriate local 
     educational agency as furthering the individual's teaching 
     skills.
       ``(C) Local educational agency.--The term `local 
     educational agency' has the meaning given such term by 
     section 14101 of the Elementary and Secondary Education Act 
     of 1965, as so in effect.
       ``(2) Eligible teacher.--
       ``(A) In general.--The term `eligible teacher' means an 
     individual who is a kindergarten through grade 12 classroom 
     teacher, instructor, counselor, aide, or principal in an 
     elementary or secondary school.
       ``(B) Elementary or secondary school.--The terms 
     `elementary school' and `secondary school' have the meanings 
     given such terms by section 14101 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8801), as so in 
     effect.''.
       (3) Effective date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.
       (b) Qualified Incidental Expenses.--
       (1) In general.--Section 67(g)(1)(A) of the Internal 
     Revenue Code of 1986, as added by subsection (a)(2), is 
     amended by striking ``and'' at the end of clause (i), by 
     redesignating clause (ii) as clause (iii), and by inserting 
     after clause (i) the following new clause:
       ``(ii) for qualified incidental expenses, and''.
       (2) Definition.--Section 67(g) of such Code, as added by 
     subsection (a)(2), is amended by adding at the end the 
     following new paragraph:
       ``(3) Qualified incidental expenses.--
       ``(A) In general.--The term `qualified incidental expenses' 
     means expenses paid or incurred by an eligible teacher in an 
     amount not to exceed $125 for any taxable year for books, 
     supplies, and equipment related to instruction, teaching, or 
     other educational job-related activities of such eligible 
     teacher.
       ``(B) Special rule for homeschooling.--Such term shall 
     include expenses described in subparagraph (A) in connection 
     with education provided by homeschooling if the requirements 
     of any applicable State or local law are met with respect to 
     such education.''.
       (3) Effective date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.
                                 ______
                                 

            FEINGOLD (AND SPECTER) AMENDMENTS NOS. 2743-2744

  (Ordered to lie on the table.)
  Mr. FEINGOLD (for himself and Mr. Specter) submitted two amendments 
intended to be proposed by them to the bill, S. 625, supra; as follows:

                           Amendment No. 2743

       On page 12, strike line 22 and insert ``frivolous.''.
                                  ____


                           Amendment No. 2744

       On page 145, between lines 15 and 16, insert the following:

     SEC. 420. BANKRUPTCY FEES.

       Section 1930 of title 28, United States Code, is amended--
       (1) in subsection (a), by striking ``Notwithstanding 
     section 1915 of this title, the parties'' and inserting 
     ``Subject to subsection (f), the parties''; and
       (2) by adding at the end the following:
       ``(f)(1) The Judicial Conference of the United States shall 
     prescribe procedures for waiving fees under this subsection.
       ``(2) Under the procedures described in paragraph (1), the 
     district court or the bankruptcy court may waive a filing fee 
     described in paragraph (3) for a case commenced under chapter 
     7 of title 11 if the court determines that an individual 
     debtor whose income is less than 125 percent of the income 
     official poverty line (as defined by the Office of Management 
     and Budget, and revised annually in accordance with section 
     673(2) of the Omnibus Budget Reconciliation Act of 1981) 
     applicable to a family of the size involved is unable to pay 
     that fee in installments.
       ``(3) A filing fee referred to in paragraph (2) is--
       ``(A) a filing fee under subsection (a)(1); or
       ``(B) any other fee prescribed by the Judicial Conference 
     of the United States under subsection (b) that is payable to 
     the clerk of the district court or the clerk of the 
     bankruptcy court upon the commencement of a case under 
     chapter 7 of title 11.
       ``(4) In addition to waiving a fee under paragraph (2), the 
     district court or the bankruptcy court may waive any other 
     fee prescribed under subsection (b) or (c) if the court 
     determines that the individual with an income at a level 
     described in paragraph (2) is unable to pay that fee in 
     installments.''.
                                 ______
                                 

                   FEINGOLD AMENDMENTS NOS. 2745-2750

  (Ordered to lie on the table.)
  Mr. FEINGOLD submitted six amendments intended to be proposed by him 
to the bill, S. 625, supra; as follows:

                           Amendment No. 2745

       At the end of title X, insert the following:

     SEC. __. PROHIBITION OF RETROACTIVE ASSESSMENT OF DISPOSABLE 
                   INCOME.

       (a) In General.--Section 1225(b) of title 11, United States 
     Code, is amended by adding at the end the following:
       ``(3) If the plan provides for specific amounts of property 
     to be distributed on account of allowed unsecured claims as 
     required by paragraph (1)(B), those amounts equal or exceed 
     the debtor's projected disposable income for that period, and 
     the plan meets the requirements for confirmation other than 
     those of this subsection, the plan shall be confirmed.''.
       (b) Modification.--Section 1229 of title 11, United States 
     Code, is amended by adding at the end the following:
       ``(d)(1) A modification of the plan under this section may 
     not increase the amount of payments that were due prior to 
     the date of the order modifying the plan.
       ``(2) A modification of the plan under this section to 
     increase payments based on an increase in the debtor's 
     disposable income may not require payments to unsecured 
     creditors in any particular month greater than the debtor's 
     disposable income for that month unless the debtor proposes 
     such a modification.
       ``(3) A modification of the plan in the last year of the 
     plan shall not require payments that would leave the debtor 
     with insufficient funds to carry on the farming operation 
     after the plan is completed unless the debtor proposes such a 
     modification.''.
                                  ____


                           Amendment No. 2746

       At the appropriate place in the bill, insert the following:

     SEC. __. DEFINITION OF FAMILY FARMER.

       Section 101(18) of title 11, United States Code, is 
     amended--
       (1) in subparagraph (A) by--
       (A) striking ``$1,500,000'' and inserting ``$3,000,000''; 
     and
       (B) striking ``80'' and inserting ``50''; and
       (2) in subparagraph (B)(ii) by--
       (A) striking ``$1,500,000'' and inserting ``$3,000,000''; 
     and
       (B) striking ``80'' and inserting ``50''.

[[Page 28801]]

     
                                  ____
                           Amendment No. 2747

       At the appropriate place in title XI, insert the following:

     SEC. 11__. CONSUMER CREDIT TRANSACTIONS.

       (a) Definition.--Section 1 of title 9, United States Code, 
     is amended--
       (1) in the section heading, by striking ``and `commerce' 
     defined'' and inserting ``, `commerce', `consumer credit 
     transaction', and `consumer credit contract' defined''; and
       (2) by inserting before the period at the end the 
     following: ``; `consumer credit transaction', as herein 
     defined, means the right granted to a natural person to incur 
     debt and defer its payment, where the credit is intended 
     primarily for personal, family, or household purposes; and 
     `consumer credit contract', as herein defined, means any 
     contract between the parties to a consumer credit 
     transaction.''.
       (b) Agreements To Arbitrate.--Section 2 of title 9, United 
     States Code, is amended by adding at the end the following: 
     ``Notwithstanding the preceding sentence, a written provision 
     in any consumer credit contract evidencing a transaction 
     involving commerce to settle by arbitration a controversy 
     thereafter arising out of the contract, or the refusal to 
     perform the whole or any part thereof, shall not be valid or 
     enforceable. Nothing in this section shall prohibit the 
     enforcement of any written agreement to settle by arbitration 
     a controversy arising out of a consumer credit contract, if 
     such written agreement has been entered into by the parties 
     to the consumer credit contract after the controversy has 
     arisen.''.
                                  ____


                           Amendment No. 2748

       On page 108, line 15, strike ``; and'' and insert a 
     semicolon.
       Beginning on page 108, strike line 18 and all that follows 
     through page 109, line 7, and insert the following:
       ``(23) under subsection (a)(3), of the commencement or 
     continuation of any eviction, unlawful detainer action, or 
     similar proceeding by a lessor against a debtor involving 
     residential real property--
       ``(A) on which the debtor resides as a tenant under a 
     rental agreement; and
       ``(B) with respect to which--
       ``(i) the debtor fails to make a rent payment that 
     initially becomes due under the rental agreement or 
     applicable State law after the date of filing of the 
     petition, if the lessor files with the court a certification 
     that the debtor has not made a payment for rent and serves a 
     copy of the certification to the debtor; or
       ``(ii) the debtor's lease has expired according to its 
     terms and the lessor intends to personally occupy that 
     property, if the lessor files with the court a certification 
     of such facts and serves a copy of the certification to the 
     debtor;
       ``(24) under subsection (a)(3), of the commencement or 
     continuation of any eviction, unlawful detainer action, or 
     similar proceeding by a lessor against a debtor involving 
     residential real property, if during the 1-year period 
     preceding the filing of the petition, the debtor--
       ``(A) commenced another case under this title; and
       ``(B) failed to make a rent payment that initially became 
     due under an applicable rental agreement or State law after 
     the date of filing of the petition for that other case; or
       ``(25) under subsection (a)(3), of an eviction action based 
     on endangerment of property or the use of an illegal drug, if 
     the lessor files with the court a certification that the 
     debtor has endangered property or used an illegal drug and 
     serves a copy of the certification to the debtor.''; and
       (4) by adding at the end of the flush material at the end 
     of the subsection the following: ``With respect to the 
     applicability of paragraph (23) or (25) to a debtor with 
     respect to the commencement or continuation of a proceeding 
     described in that paragraph, the exception to the automatic 
     stay shall become effective on the 15th day after the lessor 
     meets the filing and notification requirements under that 
     paragraph, unless the debtor takes such action as may be 
     necessary to address the subject of the certification or the 
     court orders that the exception to the automatic stay shall 
     not become effective or provides for a later date of 
     applicability.''.
                                  ____


                           Amendment No. 2749

       At the appropriate place, insert the following:

     SEC. __. NO BANKRUPTCY FOR INSOLVENT POLITICAL COMMITTEES.

       Section 105 of title 11, United States Code, is amended by 
     inserting at the end the following:
       ``(e) A political committee subject to the jurisdiction of 
     the Federal Election Commission under Federal election laws 
     may not file for bankruptcy under this title.''.
                                  ____


                           Amendment No. 2750

       At the appropriate place, insert the following:

     SEC. __. FEDERAL ELECTION LAW FINES AND PENALTIES AS 
                   NONDISCHARGEABLE DEBT.

       Section 523(a) of title 11, United States Code, is amended 
     by inserting after paragraph (14A) the following:
       ``(14B) fines or penalties imposed under Federal election 
     law;''.
                                 ______
                                 

                       KENNEDY AMENDMENT NO. 2751

  (Ordered to lie on the table.)
  Mr. KENNEDY submitted an amendment intended to be proposed by him to 
the bill, S. 625, supra; as follows:

       On page 294 of the bill, line 24, strike ``Act.'' and 
     insert the following: ``Act.

             TITLE __--INCREASE IN THE FEDERAL MINIMUM WAGE

     SEC. __01. FAIR MINIMUM WAGE.

       (a) Short Title.--This section may be cited as the ``Fair 
     Minimum Wage Act of 1999''.
       (b) Minimum Wage Increase.--
       (1) Wage.--Paragraph (1) of section 6(a) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to 
     read as follows:
       ``(1) except as otherwise provided in this section, not 
     less than--
       ``(A) $5.65 an hour during the year beginning on January 1, 
     2000; and
       ``(B) $6.15 an hour beginning on January 1, 2001;''.
       (2) Effective date.--The amendment made by paragraph (1) 
     takes effect on January 1, 2000.
       (c) Applicability of Minimum Wage to the Commonwealth of 
     the Northern Mariana Islands.--The provisions of section 6 of 
     the Fair Labor Standards Act of 1938 (29 U.S.C. 206) shall 
     apply to the Commonwealth of the Northern Mariana Islands.

     SEC. __02. LIMITATION ON LOCATION OF PROVISION OF SERVICES.

       (a) In General.--Section 1861(ff)(2) of the Social Security 
     Act (42 U.S.C. 1395x(ff)(2)) is amended in the matter 
     following subparagraph (I)--
       (1) by striking ``and furnished'' and inserting 
     ``furnished''; and
       (2) by inserting before the period the following: ``, and 
     furnished other than in a skilled nursing facility, 
     residential treatment facility or other residential setting 
     (as determined by the Secretary)''.
       (b) Effective Date.--The amendments made by subsection (a) 
     apply with respect to partial hospitalization services 
     furnished on or after the first day of the third month 
     beginning after the date of the enactment of this Act.

     SEC. __03. QUALIFICATIONS FOR COMMUNITY MENTAL HEALTH 
                   CENTERS.

       (a) In General.--Section 1861(ff)(3)(B) of the Social 
     Security Act (42 U.S.C. 1395x(ff)(3)(B)) is amended by 
     striking ``entity'' and all that follows and inserting the 
     following: ``entity that--
       ``(i)(I) provides the mental health services described in 
     section 1913(c)(1) of the Public Health Service Act; or
       ``(II) in the case of an entity operating in a State that 
     by law precludes the entity from providing a service 
     described in such section itself, provides for such service 
     by contract with an approved organization or entity (as 
     determined by the Secretary);
       ``(ii) meets applicable licensing or certification 
     requirements for community mental health centers in the State 
     in which it is located; and
       ``(iii) meets such additional conditions as the Secretary 
     shall specify to ensure (I) the health and safety of 
     individuals being furnished such services, (II) the effective 
     and efficient furnishing of such services, and (III) the 
     compliance of such entity with the criteria described in such 
     section.''.
       (b) Clarification of Criteria for Community Mental Health 
     Centers.--Section 1913(c)(1)(E) of the Public Health Service 
     Act (42 U.S.C. 300x-3(c)(1)(E)) is amended to read as 
     follows:
       ``(E) Determining the clinical appropriateness of 
     admissions to inpatient psychiatric hospitals by engaging a 
     full-time mental health professional who is licensed or 
     certified to make such a determination by the State 
     involved.''.
       (c) Effective Date.--The amendments made by this section 
     apply with respect to community mental health centers 
     furnishing services under the medicare program on or after 
     the first day of the third month beginning after the date of 
     the enactment of this Act.

     SEC. __04. GUIDELINES FOR ITEMS AND SERVICES COMPRISING 
                   PARTIAL HOSPITALIZATION SERVICES.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary shall first adopt national coverage 
     and administrative policies for partial hospitalization 
     services furnished under title XVIII of the Social Security 
     Act, using a negotiated rulemaking process under subchapter 
     III of chapter 5 of title 5, United States Code.

     SEC. __05. REFINEMENT OF PERIODICITY OF REVIEW OF PLAN FOR 
                   PARTIAL HOSPITALIZATION SERVICES.

       (a) In General.--Section 1835(a)(2)(F)(ii) of the Social 
     Security Act (42 U.S.C. 1395n(a)(2)(F)(ii)) is amended by 
     inserting ``at a reasonable rate (as determined by the 
     Secretary)'' after ``is reviewed periodically''.
       (b) Effective Date.--The amendment made by subsection (a) 
     applies with respect to plans for furnishing partial 
     hospitalization services established on or after the first 
     day of the third month beginning after the date of the 
     enactment of this Act.

[[Page 28802]]



     SEC. __06. RECERTIFICATION OF PROVIDERS OF PARTIAL 
                   HOSPITALIZATION SERVICES.

       (a) In General.--With respect to each community mental 
     health center that furnishes partial hospitalization services 
     for which payment is made under title XVIII of the Social 
     Security Act, the Secretary of Health and Human Services 
     shall provide for periodic recertification to ensure that the 
     provision of such services complies with applicable 
     requirements of such title.
       (b) Deadline for First Recertification.--The first 
     recertification under subsection (a) shall be completed not 
     later than one year after the date of the enactment of this 
     Act.

     SEC. __07. CIVIL MONETARY PENALTIES FOR FALSE CERTIFICATION 
                   OF ELIGIBILITY FOR HOSPICE CARE OR PARTIAL 
                   HOSPITALIZATION SERVICES.

       (a) In General.--Section 1128A(b)(3) of the Social Security 
     Act (42 U.S.C. 1320a-7a(b)(3)) is amended--
       (1) in subparagraph (A)(ii), by inserting ``, hospice care, 
     or partial hospitalization services'' after ``home health 
     services''; and
       (2) in subparagraph (B), by inserting ``, section 
     1814(a)(7) in the case of hospice care, or section 
     1835(a)(2)(F) in the case of partial hospitalization 
     services'' after ``in the case of home health services''.
       (b) Effective Date.--The amendments made by subsection (a) 
     apply with respect to certifications of eligibility for 
     hospice care or partial hospitalization services under the 
     medicare program made on or after the first day of the third 
     month beginning after the date of the enactment of this Act.

                TITLE __--SMALL BUSINESS TAX PROVISIONS

     SEC. __00. SHORT TITLE; ETC.

       (a) Short Title.--This title may be cited as the ``Small 
     Business Tax Reduction Act of 1999''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this title an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

Subtitle A--Enabling Small Business to Provide Child Care, Health, and 
                          Retirement Benefits

     SEC. __01. FULL DEDUCTION OF HEALTH INSURANCE COSTS FOR SELF-
                   EMPLOYED INDIVIDUALS.

       (a) In General.--Section 162(l)(1) (relating to allowance 
     of deductions) is amended to read as follows:
       ``(1) Allowance of deduction.--In the case of an individual 
     who is an employee within the meaning of section 401(c)(1), 
     there shall be allowed as a deduction under this section an 
     amount equal to the amount paid during the taxable year for 
     insurance which constitutes medical care for the taxpayer and 
     the taxpayer's spouse and dependents.''
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1999.

     SEC. __02. ALLOWANCE OF CREDIT FOR EMPLOYER EXPENSES FOR 
                   CHILD CARE ASSISTANCE.

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

     ``SEC. 45D. EMPLOYER-PROVIDED CHILD CARE CREDIT.

       ``(a) In General.--For purposes of section 38, the 
     employer-provided child care credit determined under this 
     section for the taxable year is an amount equal to 25 percent 
     of the qualified child care expenditures of the taxpayer for 
     such taxable year.
       ``(b) Dollar Limitation.--The credit allowable under 
     subsection (a) for any taxable year shall not exceed $90,000.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualified child care expenditure.--The term 
     `qualified child care expenditure' means any amount paid or 
     incurred--
       ``(A) to acquire, construct, rehabilitate, or expand 
     property--
       ``(i) which is to be used as part of a qualified child care 
     facility of the taxpayer,
       ``(ii) with respect to which a deduction for depreciation 
     (or amortization in lieu of depreciation) is allowable, and
       ``(iii) which does not constitute part of the principal 
     residence (within the meaning of section 121) of the taxpayer 
     or any employee of the taxpayer,
       ``(B) for the operating costs of a qualified child care 
     facility of the taxpayer, including costs related to the 
     training of employees, to scholarship programs, and to the 
     providing of increased compensation to employees with higher 
     levels of child care training, or
       ``(C) under a contract with a qualified child care facility 
     to provide child care services to employees of the taxpayer.
       ``(2) Qualified child care facility.--
       ``(A) In general.--The term `qualified child care facility' 
     means a facility--
       ``(i) the principal use of which is to provide child care 
     assistance, and
       ``(ii) which meets the requirements of all applicable laws 
     and regulations of the State or local government in which it 
     is located, including, but not limited to, the licensing of 
     the facility as a child care facility.

     Clause (i) shall not apply to a facility which is the 
     principal residence (within the meaning of section 121) of 
     the operator of the facility.
       ``(B) Special rules with respect to a taxpayer.--A facility 
     shall not be treated as a qualified child care facility with 
     respect to a taxpayer unless--
       ``(i) enrollment in the facility is open to employees of 
     the taxpayer during the taxable year,
       ``(ii) the facility is not the principal trade or business 
     of the taxpayer unless at least 30 percent of the enrollees 
     of such facility are dependents of employees of the taxpayer, 
     and
       ``(iii) the use of such facility (or the eligibility to use 
     such facility) does not discriminate in favor of employees of 
     the taxpayer who are highly compensated employees (within the 
     meaning of section 414(q)).
       ``(d) Recapture of Acquisition and Construction Credit.--
       ``(1) In general.--If, as of the close of any taxable year, 
     there is a recapture event with respect to any qualified 
     child care facility of the taxpayer, then the tax of the 
     taxpayer under this chapter for such taxable year shall be 
     increased by an amount equal to the product of--
       ``(A) the applicable recapture percentage, and
       ``(B) the aggregate decrease in the credits allowed under 
     section 38 for all prior taxable years which would have 
     resulted if the qualified child care expenditures of the 
     taxpayer described in subsection (c)(1)(A) with respect to 
     such facility had been zero.
       ``(2) Applicable recapture percentage.--
       ``(A) In general.--For purposes of this subsection, the 
     applicable recapture percentage shall be determined from the 
     following table:

                                                         The applicable
                                                              recapture
                                    ``If the recapture evpercentage is:
    Years 1-3....................................................100   
    Year 4........................................................85   
    Year 5........................................................70   
    Year 6........................................................55   
    Year 7........................................................40   
    Year 8........................................................25   
    Years 9 and 10................................................10   
    Years 11 and thereafter........................................0.  

       ``(B) Years.--For purposes of subparagraph (A), year 1 
     shall begin on the first day of the taxable year in which the 
     qualified child care facility is placed in service by the 
     taxpayer.
       ``(3) Recapture event defined.--For purposes of this 
     subsection, the term `recapture event' means--
       ``(A) Cessation of operation.--The cessation of the 
     operation of the facility as a qualified child care facility.
       ``(B) Change in ownership.--
       ``(i) In general.--Except as provided in clause (ii), the 
     disposition of a taxpayer's interest in a qualified child 
     care facility with respect to which the credit described in 
     subsection (a) was allowable.
       ``(ii) Agreement to assume recapture liability.--Clause (i) 
     shall not apply if the person acquiring such interest in the 
     facility agrees in writing to assume the recapture liability 
     of the person disposing of such interest in effect 
     immediately before such disposition. In the event of such an 
     assumption, the person acquiring the interest in the facility 
     shall be treated as the taxpayer for purposes of assessing 
     any recapture liability (computed as if there had been no 
     change in ownership).
       ``(4) Special rules.--
       ``(A) Tax benefit rule.--The tax for the taxable year shall 
     be increased under paragraph (1) only with respect to credits 
     allowed by reason of this section which were used to reduce 
     tax liability. In the case of credits not so used to reduce 
     tax liability, the carryforwards and carrybacks under section 
     39 shall be appropriately adjusted.
       ``(B) No credits against tax.--Any increase in tax under 
     this subsection shall not be treated as a tax imposed by this 
     chapter for purposes of determining the amount of any credit 
     under subpart A, B, or D of this part.
       ``(C) No recapture by reason of casualty loss.--The 
     increase in tax under this subsection shall not apply to a 
     cessation of operation of the facility as a qualified child 
     care facility by reason of a casualty loss to the extent such 
     loss is restored by reconstruction or replacement within a 
     reasonable period established by the Secretary.
       ``(e) Special Rules.--For purposes of this section--
       ``(1) Aggregation rules.--All persons which are treated as 
     a single employer under subsections (a) and (b) of section 52 
     shall be treated as a single taxpayer.
       ``(2) Pass-thru in the case of estates and trusts.--Under 
     regulations prescribed by the Secretary, rules similar to the 
     rules of subsection (d) of section 52 shall apply.
       ``(3) Allocation in the case of partnerships.--In the case 
     of partnerships, the credit shall be allocated among partners 
     under regulations prescribed by the Secretary.
       ``(f) No Double Benefit.--
       ``(1) Reduction in basis.--For purposes of this subtitle--
       ``(A) In general.--If a credit is determined under this 
     section with respect to any property by reason of 
     expenditures described in

[[Page 28803]]

     subsection (c)(1)(A), the basis of such property shall be 
     reduced by the amount of the credit so determined.
       ``(B) Certain dispositions.--If during any taxable year 
     there is a recapture amount determined with respect to any 
     property the basis of which was reduced under subparagraph 
     (A), the basis of such property (immediately before the event 
     resulting in such recapture) shall be increased by an amount 
     equal to such recapture amount. For purposes of the preceding 
     sentence, the term `recapture amount' means any increase in 
     tax (or adjustment in carrybacks or carryovers) determined 
     under subsection (d).
       ``(2) Other deductions and credits.--No deduction or credit 
     shall be allowed under any other provision of this chapter 
     with respect to the amount of the credit determined under 
     this section.''
       (b) Conforming Amendments.--
       (1) Section 38(b) is amended--
       (A) by striking ``plus'' at the end of paragraph (11),
       (B) by striking the period at the end of paragraph (12), 
     and inserting a comma and ``plus'', and
       (C) by adding at the end the following:
       ``(13) the employer-provided child care credit determined 
     under section 45D.''
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following:

``Sec. 45D. Employer-provided child care credit.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. __03. PLAN LOANS FOR SUBCHAPTER S OWNERS, PARTNERS, AND 
                   SOLE PROPRIETORS.

       (a) Amendment to 1986 Code.--Subparagraph (B) of section 
     4975(f )(6) (relating to exemptions not to apply to certain 
     transactions) is amended by adding at the end the following 
     new clause:
       ``(iii) Loan exception.--Solely for purposes of 
     subparagraph (A)(i), in determining whether an individual 
     is--

       ``(I) an owner-employee under section 401(c)(3), 
     subparagraph (B) thereof shall be applied by substituting `25 
     percent' for `10 percent', and
       ``(II) a shareholder-employee under subparagraph (C), such 
     subparagraph shall be applied by substituting `25 percent' 
     for `5 percent'.''

       (b) Amendment to ERISA.--Section 408(d)(2) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1108(d)(2)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(C) Solely for purposes of paragraph (1)(A), in 
     determining whether an individual is--
       ``(i) an owner-employee under section 401(c)(3) of the 
     Internal Revenue Code of 1986, subparagraph (B) thereof shall 
     be applied by substituting `25 percent' for `10 percent', and
       ``(ii) a shareholder-employee under paragraph (3), such 
     paragraph shall be applied by substituting `25 percent' for 
     `5 percent'.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to loans made after December 31, 2000.

     SEC. __04. CONTRIBUTIONS TO IRAS THROUGH PAYROLL DEDUCTIONS.

       (a) Definitions.--For purposes of this section--
       (1) Contribution certificate.--The term ``contribution 
     certificate'' means a certificate submitted by an employee to 
     the employee's employer which--
       (A) identifies the employee by name, address, and social 
     security number,
       (B) identifies the individual retirement plan to which the 
     employee wishes to make contributions through payroll 
     deductions, and
       (C) identifies the amount of such contributions, not to 
     exceed the amount allowed under section 408 of the Internal 
     Revenue Code of 1986 to an individual retirement plan for 
     such year.
       (2) Employee.--The term ``employee'' does not include an 
     employee as defined in section 401(c)(1) of such Code.
       (3) Individual retirement plans.--The term ``individual 
     retirement plan'' has the meaning given the term by section 
     7701(a)(37) of the Internal Revenue Code of 1986.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (b) Establishment of Payroll Deduction System.--An employer 
     may establish a system under which employees, through 
     employer payroll deductions, may make contributions to 
     individual retirement plans. An employer shall not incur any 
     liability under title I of the Employee Retirement Income 
     Security Act of 1974 in providing for such a system.
       (c) Contributions to Individual Retirement Plans.--
       (1) In general.--The system established under subsection 
     (b) shall provide that contributions made to an individual 
     retirement plan for any taxable year are--
       (A) contributions through employer payroll deductions, and
       (B) if the employer so elects, additional contributions by 
     the employee which, when added to contributions under 
     subparagraph (A), do not exceed the amount allowed under 
     section 408 of the Internal Revenue Code of 1986 for the 
     taxable year.
       (2) Employer payroll deductions.--
       (A) In general.--The system established under subsection 
     (b) shall provide that an employee may establish and maintain 
     an individual retirement plan simply by--
       (i) completing a contribution certificate, and
       (ii) submitting such certificate to the employee's employer 
     in the manner provided under subparagraph (D).
       (B) Change of amounts.--An employee establishing and 
     maintaining an individual retirement plan under subparagraph 
     (A) may change the amount of an employer payroll deduction in 
     the same manner as under subparagraph (A).
       (C) Simplified forms.--
       (i) Contribution certificate.--The Secretary shall develop 
     a model contribution certificate for purposes of this 
     paragraph--

       (I) which is written in a clear and easily understandable 
     manner, and
       (II) the completion of which by an employee will constitute 
     the establishment of an individual retirement plan and the 
     request for employer payroll deductions or changes in such 
     deductions.

       (ii) Availability.--The Secretary shall make available to 
     all employees and employers the forms developed under this 
     subparagraph, and shall include with such forms easy to 
     understand explanatory materials.
       (D) Use of certificate.--Each employer electing to adopt a 
     system under subsection (b) shall, upon receipt of a 
     contribution certificate from an employee, deduct the 
     appropriate contribution as determined by such certificate 
     from the employee's wages in equal amounts during the 
     remaining payroll periods for the taxable year and shall 
     remit such amounts for investment in the employee's 
     individual retirement plan not later than the close of the 
     30-day period following the last day of the month in which 
     such payroll period occurs.
       (E) Failure to remit payroll deductions.--For purposes of 
     the Internal Revenue Code of 1986, any amount which an 
     employer fails to remit on behalf of an employee pursuant to 
     a contribution certificate of such employee shall not be 
     allowed as a deduction to the employer under such Code.
       (d) Additional Information.--
       (1) In general.--The system established under subsection 
     (b) shall provide for the furnishing of information to 
     employees of the opportunity of establishing individual 
     retirement plans and of transferring amounts to such plans.
       (2) Investment information.--The employer shall also make 
     available to employees information on how to make informed 
     investment decisions and how to achieve retirement 
     objectives.
       (3) Information not investment advice.--Information 
     provided under this subsection shall not be treated as 
     investment advice for purposes of any Federal or State law.

     SEC. __05. MODIFICATION OF TOP-HEAVY RULES.

       (a) Simplification of Definition of Key Employee.--
       (1) In general.--Section 416(i)(1)(A) (defining key 
     employee) is amended--
       (A) by striking ``or any of the 4 preceding plan years'' in 
     the matter preceding clause (i),
       (B) by striking clause (i) and inserting the following:
       ``(i) an officer of the employer having an annual 
     compensation greater than $80,000,'',
       (C) by striking clause (ii) and redesignating clauses (iii) 
     and (iv) as clauses (ii) and (iii), respectively, and
       (D) by striking the second sentence in the matter following 
     clause (iii), as redesignated by subparagraph (C).
       (2) Conforming amendment.--Section 416(i)(1)(B)(iii) is 
     amended by striking ``and subparagraph (A)(ii)''.
       (b) Distributions During Last Year Before Determination 
     Date Taken Into Account.--Section 416(g) is amended--
       (1) in paragraph (3)--
       (A) by striking ``last 5 years'' in the heading and 
     inserting ``last year before determination date'', and
       (B) in the matter following subparagraph (B), by striking 
     ``5-year period'' and inserting ``1-year period'', and
       (2) in paragraph (4)(E)--
       (A) by striking ``last 5 years'' in the heading and 
     inserting ``last year before determination date'', and
       (B) by striking ``5-year period'' and inserting ``1-year 
     period''.
       (c) Requirements for Qualifications.--Clause (ii) of 
     section 401(a)(10)(B) (relating to requirements for 
     qualifications for top-heavy plans) is amended by adding at 
     the end the following new flush sentence:

     ``The preceding sentence shall not apply to a plan if the 
     plan is not top-heavy and if it is not reasonable to expect 
     that the plan will become a top-heavy plan.''.
       (d) Frozen Plan Exempt From Minimum Benefit Requirement.--
       (1) In general.--Subparagraph (C) of section 416(c)(1) 
     (relating to defined benefit plans) is amended--
       (A) in clause (i), by striking ``clause (ii)'' and 
     inserting ``clause (ii) or (iii)'', and
       (B) by adding at the end the following:
       ``(iii) Exception for frozen plan.--For purposes of 
     determining an employee's years

[[Page 28804]]

     of service with the employer, any service with the employer 
     shall be disregarded to the extent that such service occurs 
     during a plan year when the plan benefits (within the meaning 
     of section 410(b)) no employee or former employee.''.
       (2) Conforming amendment.--Subparagraph (A) of section 
     415(b)(5) is amended by adding at the end the following: ``An 
     employee shall not be credited with a year of participation 
     in a defined benefit plan for any year in which the plan does 
     not benefit (within the meaning of section 410(b)) such 
     employee.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 1999.

     SEC. __06. CREDIT FOR SMALL EMPLOYER PENSION PLAN 
                   CONTRIBUTIONS AND START-UP COSTS.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits), as amended 
     by section __02, is amended by adding at the end the 
     following new section:

     ``SEC. 45E. SMALL EMPLOYER PENSION PLAN CREDIT.

       ``(a) General Rule.--For purposes of section 38, in the 
     case of an eligible employer, the small employer pension plan 
     credit determined under this section for any taxable year is 
     an amount equal to the sum of--
       ``(1) 50 percent of the qualified employer contributions of 
     the taxpayer for the taxable year, and
       ``(2) 50 percent of the qualified start-up costs paid or 
     incurred by the taxpayer during the taxable year.
       ``(b) Limitations.--
       ``(1) Limits on contributions.--For purposes of subsection 
     (a)(1)--
       ``(A) qualified employer contributions may only be taken 
     into account for each of the first 5 taxable years ending 
     after the date the employer establishes the qualified 
     employer plan to which the contribution is made, and
       ``(B) the amount of the qualified employer contributions 
     taken into account with respect to any qualified employee for 
     any such taxable year shall not exceed 3 percent of the 
     compensation (as defined in section 414(s)) of the qualified 
     employee for such taxable year.
       ``(2) Limits on start-up costs.--The amount of the credit 
     determined under subsection (a)(2) for any taxable year shall 
     not exceed--
       ``(A) $2,000 for the first taxable year ending after the 
     date the employer established the qualified employer plan to 
     which such costs relate,
       ``(B) $1,000 for each of the second and third such taxable 
     years, and
       ``(C) zero for each taxable year thereafter.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Eligible employer.--
       ``(A) In general.--The term `eligible employer' means, with 
     respect to any year, an employer which has no more than--
       ``(i) for purposes of subsection (a)(1), 25 employees, and
       ``(ii) for purposes of subsection (a)(2), 100 employees,
     who received at least $5,000 of compensation from the 
     employer for the preceding year.
       ``(B) 2-year grace period.--An eligible employer who 
     establishes and maintains a qualified employer plan for 1 or 
     more years and who fails to be an eligible employer for any 
     subsequent year shall be treated as an eligible employer for 
     the 2 years following the last year the employer was an 
     eligible employer.
       ``(C) Requirement for new qualified employer plans.--Such 
     term shall not include an employer if, during the 3-taxable 
     year period immediately preceding the 1st taxable year for 
     which the credit under this section is otherwise allowable 
     for a qualified employer plan of the employer, the employer 
     and each member of any controlled group including the 
     employer (or any predecessor of either) established or 
     maintained a qualified employer plan with respect to which 
     contributions were made, or benefits were accrued, for 
     substantially the same employees as are in the qualified 
     employer plan.
       ``(2) Qualified employer contributions.--
       ``(A) In general.--The term `qualified employer 
     contributions' means, with respect to any taxable year, any 
     employer contributions made on behalf of a qualified employee 
     to a qualified employer plan for a plan year ending with or 
     within the taxable year.
       ``(B) Employer contributions.--The term `employer 
     contributions' shall not include any elective deferral 
     (within the meaning of section 402(g)(3)).
       ``(3) Qualified employee.--The term `qualified employee' 
     means an individual who--
       ``(A) is eligible to participate in the qualified employer 
     plan to which the employer contributions are made, and
       ``(B) is not a highly compensated employee (within the 
     meaning of section 414(q)) for the year for which the 
     contribution is made.
       ``(4) Qualified start-up costs.--The term `qualified start-
     up costs' means any ordinary and necessary expenses of an 
     eligible employer which are paid or incurred in connection 
     with--
       ``(A) the establishment or maintenance of a qualified 
     employer plan in which qualified employees are eligible to 
     participate, and
       ``(B) providing educational information to employees 
     regarding participation in such plan and the benefits of 
     establishing an investment plan.
       ``(5) Qualified employer plan.--The term `qualified 
     employer plan' has the meaning given such term in section 
     4972(d).
       ``(d) Special Rules.--
       ``(1) Aggregation rules.--All persons treated as a single 
     employer under subsection (a) or (b) of section 52, or 
     subsection (n) or (o) of section 414, shall be treated as one 
     person. All qualified employer plans of an employer shall be 
     treated as a single qualified employer plan.
       ``(2) Disallowance of deduction.--No deduction shall be 
     allowable under this chapter for any qualified start-up costs 
     or qualified contributions for which a credit is determined 
     under subsection (a).
       ``(3) Election not to claim credit.--This section shall not 
     apply to a taxpayer for any taxable year if such taxpayer 
     elects to have this section not apply for such taxable 
     year.''.
       (b) Credit Allowed as Part of General Business Credit.--
     Section 38(b) (defining current year business credit), as 
     amended by section __02, is amended by striking ``plus'' at 
     the end of paragraph (12), by striking the period at the end 
     of paragraph (13) and inserting ``, plus'', and by adding at 
     the end the following new paragraph:
       ``(14) in the case of an eligible employer (as defined in 
     section 45E(c)), the small employer pension plan credit 
     determined under section 45E(a).''.
       (c) Portion of Credit Refundable.--Section 38(c) (relating 
     to limitation based on amount of tax) is amended by adding at 
     the end the following new paragraph:
       ``(4) Portion of small employer pension plan credit 
     refundable.--
       ``(A) In general.--In the case of the small employer 
     pension plan credit under subsection (b)(14), the aggregate 
     credits allowed under subpart C shall be increased by the 
     lesser of--
       ``(i) the credit which would be allowed without regard to 
     this paragraph and the limitation under paragraph (1), or
       ``(ii) the amount by which the aggregate amount of credits 
     allowed by this section (without regard to this paragraph) 
     would increase if the limitation under paragraph (1) were 
     increased by the taxpayer's applicable payroll taxes for the 
     taxable year.
       ``(B) Treatment of credit.--The amount of the credit 
     allowed under this paragraph shall not be treated as a credit 
     allowed under this subpart and shall reduce the amount of the 
     credit allowed under this section for the taxable year.
       ``(C) Applicable payroll taxes.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `applicable payroll taxes' 
     means, with respect to any taxpayer for any taxable year--

       ``(I) the amount of the taxes imposed by sections 3111 and 
     3221(a) on compensation paid by the taxpayer during the 
     taxable year,
       ``(II) 50 percent of the taxes imposed by section 1401 on 
     the self-employment income of the taxpayer during the taxable 
     year, and
       ``(III) 50 percent of the taxes imposed by section 
     3211(a)(1) on amounts received by the taxpayer during the 
     calendar year in which the taxable year begins.

       ``(ii) Agreements regarding foreign affiliates.--Section 
     24(d)(5)(C) shall apply for purposes of clause (i).''.
       (d) Conforming Amendment.--The table of sections for 
     subpart D of part IV of subchapter A of chapter 1, as amended 
     by section __02, is amended by adding at the end the 
     following new item:

``Sec. 45E. Small employer pension plan credit.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to costs paid or incurred or contributions made 
     in connection with qualified employer plans established after 
     December 31, 2000.

     SEC. __07. ELECTIVE DEFERRALS NOT TAKEN INTO ACCOUNT FOR 
                   PURPOSES OF DEDUCTION LIMITS.

       (a) In General.--Section 404 (relating to deduction for 
     contributions of an employer to an employees' trust or 
     annuity plan and compensation under a deferred payment plan) 
     is amended by adding at the end the following new subsection:
       ``(n) Elective Deferrals Not Taken Into Account for 
     Purposes of Deduction Limits.--Elective deferrals (as defined 
     in section 402(g)(3)) shall not be subject to any limitation 
     contained in paragraph (3), (7), or (9) of subsection (a), 
     and such elective deferrals shall not be taken into account 
     in applying any such limitation to any other 
     contributions.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. __08. FASTER VESTING OF CERTAIN EMPLOYER MATCHING 
                   CONTRIBUTIONS.

       (a) Amendments to 1986 Code.--Section 411(a) (relating to 
     minimum vesting standards) is amended--
       (1) in paragraph (2), by striking ``A plan'' and inserting 
     ``Except as provided in paragraph (12), a plan'', and
       (2) by adding at the end the following:

[[Page 28805]]

       ``(12) Faster vesting for matching contributions.--In the 
     case of matching contributions (as defined in section 
     401(m)(4)(A)), paragraph (2) shall be applied--
       ``(A) by substituting `3 years' for `5 years' in 
     subparagraph (A), and
       ``(B) by substituting the following table for the table 
     contained in subparagraph (B):

                                                     The nonforfeitable
``Years of service:                                      percentage is:
  2.............................................................20 ....

  3.............................................................40 ....

  4.............................................................60 ....

  5.............................................................80 ....

  6.........................................................100.''.....

       (b) Amendments to ERISA.--Section 203(a) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1053(a)) is 
     amended--
       (1) in paragraph (2), by striking ``A plan'' and inserting 
     ``Except as provided in paragraph (4), a plan'', and
       (2) by adding at the end the following:
       ``(4) Faster vesting for matching contributions.--In the 
     case of matching contributions (as defined in section 
     401(m)(4)(A) of the Internal Revenue Code of 1986), paragraph 
     (2) shall be applied--
       ``(A) by substituting `3 years' for `5 years' in 
     subparagraph (A), and
       ``(B) by substituting the following table for the table 
     contained in subparagraph (B):

                                                     The nonforfeitable
``Years of service:                                      percentage is:
  2.............................................................20 ....

  3.............................................................40 ....

  4.............................................................60 ....

  5.............................................................80 ....

  6.........................................................100.''.....

       (c) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to contributions 
     for plan years beginning after December 31, 1999.
       (2) Collective bargaining agreements.--In the case of a 
     plan maintained pursuant to 1 or more collective bargaining 
     agreements between employee representatives and 1 or more 
     employers ratified by the date of enactment of this Act, the 
     amendments made by this section shall not apply to 
     contributions on behalf of employees covered by any such 
     agreement for plan years beginning before the earlier of--
       (A) the later of--
       (i) the date on which the last of such collective 
     bargaining agreements terminates (determined without regard 
     to any extension thereof on or after such date of enactment), 
     or
       (ii) January 1, 2000, or
       (B) January 1, 2004.
       (3) Service required.--With respect to any plan, the 
     amendments made by this section shall not apply to any 
     employee before the date that such employee has 1 hour of 
     service under such plan in any plan year to which the 
     amendments made by this section apply.

     SEC. __09. REDUCED PBGC PREMIUM FOR NEW PLANS OF SMALL 
                   EMPLOYERS.

       (a) In General.--Subparagraph (A) of section 4006(a)(3) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1306(a)(3)) is amended--
       (1) in clause (i), by inserting ``other than a new single-
     employer plan (as defined in subparagraph (F)),'' after 
     ``single-employer plan,'',
       (2) in clause (iii), by striking the period at the end and 
     inserting ``, and'', and
       (3) by adding at the end the following new clause:
       ``(iv) in the case of a new single-employer plan (as 
     defined in subparagraph (F)) maintained by a small employer 
     (as so defined) for the plan year, $5 for each individual who 
     is a participant in such plan during the plan year.''.
       (b) Definition of New Single-Employer Plan.--Section 
     4006(a)(3) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1306(a)(3)) is amended by adding at the end 
     the following new subparagraph:
       ``(F)(i) For purposes of this paragraph, a single-employer 
     plan maintained by an employer shall be treated as a new 
     single-employer plan for each of its first 5 plan years if, 
     during the 36-month period ending on the date of the adoption 
     of such plan, the employer or any member of such employer's 
     controlled group (or any predecessor of either) had not 
     established or maintained a plan to which this title applies 
     with respect to which contributions were made, or benefits 
     were accrued, for substantially the same employees as are in 
     the new single-employer plan.
       ``(ii)(I) For purposes of this paragraph, the term `small 
     employer' means an employer which on the first day of any 
     plan year has, in aggregation with all members of the 
     controlled group of such employer, 100 or fewer employees.
       ``(II) In the case of a plan maintained by 2 or more 
     contributing sponsors that are not part of the same 
     controlled group, the employees of all contributing sponsors 
     and controlled groups of such sponsor shall be aggregated for 
     purposes of determining whether the sponsor is a small 
     employer.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 1999.

     SEC. __10. PHASE-IN OF ADDITIONAL PBGC PREMIUM FOR NEW PLANS.

       (a) Amendments to ERISA.--Subparagraph (E) of section 
     4006(a)(3) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1306(a)(3)(E)) is amended by adding at the 
     end the following new clause:
       ``(v) In the case of a new defined benefit plan, the amount 
     determined under clause (ii) for any plan year shall be an 
     amount equal to the product derived by multiplying the amount 
     determined under clause (ii) by the applicable percentage. 
     For purposes of this clause, the term `applicable percentage' 
     means--
       ``(I) 0 percent, for the first plan year.
       ``(II) 20 percent, for the second plan year.
       ``(III) 40 percent, for the third plan year.
       ``(IV) 60 percent, for the fourth plan year.
       ``(V) 80 percent, for the fifth plan year.
       ``(VI) 100 percent, for the sixth plan year, and for each 
     succeeding plan year.
     For purposes of this clause, a defined benefit plan (as 
     defined in section 3(35)) maintained by an employer shall be 
     treated as a new defined benefit plan if, during the 36-month 
     period ending on the date of the adoption of the plan, the 
     employer and each member of any controlled group including 
     the employer (or any predecessor of either) did not establish 
     or maintain a plan to which this title applies with respect 
     to which contributions were made, or benefits were accrued, 
     for substantially the same employees as are in the new 
     plan.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 1999.

     SEC. __11. ELIMINATION OF USER FEE FOR REQUESTS TO IRS 
                   REGARDING NEW PENSION PLANS.

       (a) Elimination of Certain User Fees.--The Secretary of the 
     Treasury or the Secretary's delegate shall not require 
     payment of user fees under the program established under 
     section 10511 of the Revenue Act of 1987 for requests to the 
     Internal Revenue Service for ruling letters, opinion letters, 
     and determination letters or similar requests with respect to 
     the qualified status of a new pension benefit plan or any 
     trust which is part of the plan.
       (b) New Pension Benefit Plan.--For purposes of this 
     section--
       (1) In general.--The term ``new pension benefit plan'' 
     means a pension, profit-sharing, stock bonus, annuity, or 
     employee stock ownership plan which is maintained by one or 
     more eligible employers if such employer (or any predecessor 
     employer) has not made a prior request described in 
     subsection (a) for such plan (or any predecessor plan).
       (2) Eligible employer.--The term ``eligible employer'' 
     means an employer (or any predecessor employer) which has not 
     established or maintained a qualified employer plan with 
     respect to which contributions were made, or benefits were 
     accrued for service, in the 3 most recent taxable years 
     ending prior to the first taxable year in which the request 
     is made.
       (c) Effective Date.--The provisions of this section shall 
     apply with respect to requests made after December 31, 1999.

     SEC. __12. DEDUCTION LIMITS.

       (a) In General.--Section 404(a) (relating to general rule) 
     is amended by adding at the end the following:
       ``(12) Definition of compensation.--For purposes of 
     paragraphs (3), (7), (8), and (9), the term `compensation' 
     shall include amounts treated as participant's compensation 
     under subparagraph (C) or (D) of section 415(c)(3).''.
       (b) Conforming Amendment.--Subparagraph (B) of section 
     404(a)(3) is amended by striking the last sentence thereof.
       (c) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. __13. TREATMENT OF MULTIEMPLOYER PLANS UNDER SECTION 
                   415.

       (a) Compensation Limit.--Paragraph (11) of section 415(b) 
     (relating to limitation for defined benefit plans) is amended 
     to read as follows:
       ``(11) Special limitation rule for governmental and 
     multiemployer plans.--In the case of a governmental plan (as 
     defined in section 414(d)) or a multiemployer plan (as 
     defined in section 414(f)), subparagraph (B) of paragraph (1) 
     shall not apply.''.
       (b) Combining and Aggregation of Plans.--
       (1) Combining of plans.--Subsection (f) of section 415 
     (relating to combining of plans) is amended by adding at the 
     end the following:
       ``(3) Exception for multiemployer plans.--Notwithstanding 
     paragraph (1) and subsection (g), a multiemployer plan (as 
     defined in section 414(f)) shall not be combined or 
     aggregated with any other plan maintained by an employer for 
     purposes of applying the limitations established in this 
     section, except that such plan shall be combined or 
     aggregated with another plan solely for purposes of 
     determining whether such other plan meets the requirements of 
     subsection (b)(1)(A).''.
       (2) Conforming amendment for aggregation of plans.--
     Subsection (g) of section 415 (relating to aggregation of 
     plans) is amended by striking ``The Secretary'' and inserting 
     ``Except as provided in subsection (f)(3), the Secretary''.
       (c) Early Retirement Limits for Certain Plans.--Section 
     415(b)(2)(F) is amended to read as follows:

[[Page 28806]]

       ``(F) Multiemployer plans and plans maintained by 
     governments and tax exempt organizations.--In the case of a 
     governmental plan (within the meaning of section 414(d)), a 
     plan maintained by an organization (other than a governmental 
     unit) exempt from tax under this subtitle, a multiemployer 
     plan (as defined in section 414(f)), or a qualified merchant 
     marine plan--
       ``(i) subparagraph (C) shall be applied--

       ``(I) by substituting `age 62' for `social security 
     retirement age' each place it appears, and
       ``(II) as if the last sentence thereof read as follows: 
     `The reduction under this subparagraph shall not reduce the 
     ,imitation of paragraph (1)(A) below (i) 80 percent of such 
     limitation as in effect for the year, or (ii) if the benefit 
     begins before age 55, the equivalent for such 80 percent 
     amount for age 55.'', and

       ``(ii) subparagraph (D) shall be applied by substituting 
     `age 65' for `social security retirement age' each place it 
     appears.

     For purposes of this subparagraph, the term `qualified 
     merchant marine plan' means a plan in existence on January 1, 
     1986, the participants in which are merchant marine officers 
     holding licenses issued by the Secretary of Transportation 
     under title 46, United States Code.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 1999.

     SEC. __14. PENSION REDUCTION DISCLOSURE.

       (a) Notice Required for Certain Plan Amendments Reducing 
     Future Benefit Accruals.--
       (1) General notice requirements.--Section 204(h) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1054(h)) is amended to read as follows:
       ``(h) Notice Requirements for Pension Plan Amendments 
     Reducing Accruals.--
       ``(1) In general.--If an applicable pension plan is amended 
     so as to provide for a significant reduction in the rate of 
     future benefit accrual of 1 or more applicable individuals, 
     the plan administrator shall--
       ``(A) not later than the 45th day before the effective date 
     of the amendment, provide the written notice described in 
     paragraph (2) to each applicable individual (and to each 
     employee organization representing applicable individuals), 
     and
       ``(B) in the case of a large applicable pension plan--
       ``(i) include in the notice under paragraph (2) the 
     additional information described in paragraph (3),
       ``(ii) make available the information described in 
     paragraph (4) in accordance with such paragraph, and
       ``(iii) provide individual benefit statements in accordance 
     with section 105(e).
       ``(2) Basic written notice.--The notice under paragraph (1) 
     shall include a summary of the important terms of the 
     amendment, including--
       ``(A) the effective date of the amendment,
       ``(B) a statement that the amendment is expected to 
     significantly reduce the rate of future benefit accrual,
       ``(C) a description of the classes of applicable 
     individuals to whom the amendment applies, and
       ``(D) a description of how the amendment significantly 
     reduces the rate of future benefit accrual.
       ``(3) Additional information to be provided by large 
     applicable pension plans.--
       ``(A) In general.--The information described in this 
     paragraph is--
       ``(i) a description of the plan's benefit formulas 
     (including formulas for determining early retirement 
     benefits) both before and after the amendment and an 
     explanation of the effect of the different formulas on 
     applicable individuals,
       ``(ii) an explanation of the circumstances (if any) under 
     which (for appropriate categories of applicable individuals) 
     the amendment is reasonably expected to result in a temporary 
     period after the effective date of the amendment during which 
     there are no or minimal accruals,
       ``(iii) illustrative examples of normal or early retirement 
     benefits meeting the requirements of subparagraph (B), and
       ``(iv) notice of each applicable individual's right to 
     request, and of the procedures for requesting, the 
     information required to be provided under paragraph (4) and 
     under section 105(e).
       ``(B) Illustrative examples.--Illustrative examples meet 
     the requirements of this subparagraph if such examples 
     illustrate the adverse effects of the plan amendment. Such 
     examples shall be prepared by the plan administrator in 
     accordance with regulations prescribed by the Secretary of 
     the Treasury, and such regulations shall require that the 
     examples--
       ``(i) reflect fairly the different categories of applicable 
     individuals who are similarly affected by the plan amendment 
     after consideration of all relevant factors,
       ``(ii) show a comparison of benefits for each such category 
     of applicable individuals under the plan (as in effect before 
     and after the effective date) at appropriate future dates, 
     and
       ``(iii) illustrate any temporary period described in 
     subparagraph (A)(ii).

     Such comparison shall be based on benefits in the form of a 
     life annuity and on actuarial assumptions each of which is 
     reasonable (and is so certified by an enrolled actuary) when 
     applied to all participants in the plan.
       ``(4) Supporting information relating to calculation of 
     benefits.--
       ``(A) In general.--Each individual who receives or who is 
     entitled to receive the information described in paragraph 
     (3) may (after so receiving or becoming so entitled) request 
     the plan administrator to provide the information described 
     in subparagraph (B).
       ``(B) Information.--The plan administrator shall, within 15 
     days after the date on which a request under subparagraph (A) 
     is made, provide to the individual information (including 
     benefit formulas and actuarial factors) which is sufficient--
       ``(i) to confirm the benefit comparisons in the 
     illustrative examples described in paragraph (3)(B), and
       ``(ii) to enable the individual to use the individual's own 
     personal information to make calculations of the individual's 
     own benefits which are similar to the calculations made in 
     such examples.

     Nothing in this subsection shall be construed to require the 
     plan administrator to provide to an individual such 
     individual's personal information for purposes of clause 
     (ii).
       ``(C) Time limitation on requests.--This paragraph shall 
     apply only to requests made during the 12-month period that 
     begins on the later of the effective date of the amendment to 
     which it relates or the date the notice described in 
     paragraph (2) is provided.
       ``(5) Sanctions.--
       ``(A) In general.--In the case of any egregious failure to 
     meet any requirement of this subsection with respect to any 
     plan amendment, the provisions of the applicable pension plan 
     shall be applied as if such plan amendment entitled all 
     applicable individuals to the greater of--
       ``(i) the benefits to which they would have been entitled 
     without regard to such amendment, or
       ``(ii) the benefits under the plan with regard to such 
     amendment.
       ``(B) Egregious failure.--For purposes of subparagraph (A), 
     there is an egregious failure to meet the requirements of 
     this subsection if such failure is--
       ``(i) an intentional failure (including any failure to 
     promptly provide the required notice or information after the 
     plan administrator discovers an unintentional failure to meet 
     the requirements of this subsection),
       ``(ii) a failure to provide most of the individuals with 
     most of the information they are entitled to receive under 
     this subsection, or
       ``(iii) a failure which is determined to be egregious under 
     regulations prescribed by the Secretary of the Treasury.
       ``(C) Excise tax.--For excise tax on failure to meet 
     requirements, see section 4980F of the Internal Revenue Code 
     of 1986.
       ``(6) Special rules.--
       ``(A) Plain language.--The notice required under paragraph 
     (1) shall be written in a manner calculated to be understood 
     by the average plan participant who is an applicable 
     individual.
       ``(B) Notice to designees.--The notice and information 
     required to be provided under this subsection may be provided 
     to a person designated, in writing, by the person to which it 
     would otherwise be provided.
       ``(7) Alternative methods of compliance with enhanced 
     disclosure requirements in certain cases.--The Secretary of 
     the Treasury shall prescribe such regulations as may be 
     necessary to carry out this subsection. The Secretary of the 
     Treasury may--
       ``(A) prescribe alternative or simplified methods of 
     complying with paragraphs (3) and (4) in situations where--
       ``(i) there is no fundamental change in the manner in which 
     the accrued benefit of an applicable individual is determined 
     under the plan, and
       ``(ii) such other methods are adequate to reasonably inform 
     plan participants who are applicable individuals of the 
     impact of the reductions,
       ``(B) reduce the advance notice period in paragraph (1)(A) 
     from 45 days to 15 days before the effective date of the 
     amendment for cases in which compliance with the 45-day 
     advance notice requirement would be unduly burdensome because 
     the amendment is contingent on a merger, acquisition, 
     disposition, or other similar transaction involving plan 
     participants who are applicable individuals or because 45 
     days advance notice is otherwise impracticable,
       ``(C) permit the comparison of benefits under paragraph 
     (3)(B)(i) to be based on a form of payment other than a life 
     annuity, or
       ``(D) specify actuarial assumptions that are deemed to be 
     reasonable for purposes of the benefit comparisons under 
     paragraph (3)(B)(i).
       ``(8) Applicable individual.--For purposes of this 
     subsection, the term `applicable individual' means, with 
     respect to any plan amendment--
       ``(A) each participant in the plan, and
       ``(B) each beneficiary who is an alternate payee (within 
     the meaning of section 206(d)(3)(K)) under a qualified 
     domestic relations order (within the meaning of section 
     206(d)(3)(B)(i)),

[[Page 28807]]

     whose future benefit accruals under the plan may reasonably 
     be expected to be reduced by such plan amendment.
       ``(9) Terms relating to plans.--For purposes of this 
     subsection--
       ``(A) Applicable pension plan.--The term `applicable 
     pension plan' means--
       ``(i) a defined benefit plan, or
       ``(ii) an individual account plan which is subject to the 
     funding standards of section 302.
       ``(B) Large applicable pension plan.--The term `large 
     applicable pension plan' means an applicable pension plan 
     which had 100 or more active participants as of the last day 
     of the plan year preceding the plan year in which the plan 
     amendment becomes effective.''
       (2) Individual statements.--Section 105 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1025) is 
     amended by adding at the end the following new subsection:
       ``(e)(1) The plan administrator of a large applicable 
     pension plan shall furnish an individual statement described 
     in paragraph (2) to each individual--
       ``(A) who receives, or is entitled to receive, under 
     section 204(h) the information described in paragraph (3) 
     thereof from such administrator, and
       ``(B) who requests in writing such a statement from such 
     administrator.
       ``(2) The statement described in this paragraph is a 
     statement which provides information which is substantially 
     the same as the information in the illustrative examples 
     described in section 204(h)(3)(B) but which is based on data 
     specific to the requesting individual and, if the individual 
     so requests, information as of 1 other future date not 
     included in such examples.
       ``(3) Paragraph (1) shall apply only to requests made 
     during the 12-month period that begins on the later of the 
     effective date of the amendment to which it relates or the 
     date the notice described in section 204(h)(2) is provided. 
     In no case shall an individual be entitled under this 
     subsection to receive more than one such statement with 
     respect to an amendment.
       ``(4) Notwithstanding section 502(c)(1), the statement 
     required by paragraph (1) shall be treated as timely 
     furnished if furnished on or before--
       ``(A) the date which is 90 days after the effective date of 
     the plan amendment to which is relates, or
       ``(B) such later date as may be permitted by the Secretary 
     of Labor.
       ``(5) Any term used in this subsection which is used in 
     section 204(h) shall have the meaning given such term by such 
     section.
       ``(6) A statement under this subsection shall not be taken 
     into account for purposes of subsection (b).''
       (b) Excise Tax on Failure to Provide Notice by Defined 
     Benefit Plans Significantly Reducing Future Benefit 
     Accruals.--
       (1) In general.--Chapter 43 (relating to qualified pension, 
     etc., plans) is amended by adding at the end the following 
     new section:

     ``SEC. 4980F. FAILURE OF DEFINED BENEFIT PLANS REDUCING 
                   BENEFIT ACCRUALS TO SATISFY NOTICE 
                   REQUIREMENTS.

       ``(a) Imposition of Tax.--There is hereby imposed a tax on 
     the failure of a plan administrator of an applicable pension 
     plan to meet the requirements of subsection (e) with respect 
     to any applicable individual.
       ``(b) Amount of Tax.--
       ``(1) In general.--The amount of the tax imposed by 
     subsection (a) on any failure with respect to any applicable 
     individual shall be $100 for each day in the noncompliance 
     period with respect to such failure.
       ``(2) Noncompliance period.--For purposes of this section, 
     the term `noncompliance period' means, with respect to any 
     failure, the period beginning on the date the failure first 
     occurs and ending on the date the failure is corrected.
       ``(c) Limitations on Amount of Tax.--
       ``(1) Overall limitation for unintentional failures.--
       ``(A) In general.--In the case of failures that are due to 
     reasonable cause and not to willful neglect, the tax imposed 
     by subsection (a) for failures during the taxable year of the 
     employer (or, in the case of a multiemployer plan, the 
     taxable year of the trust forming part of the plan) shall not 
     exceed $500,000 ($1,000,000 in the case of a large applicable 
     pension plan).
       ``(B) Taxable years in the case of certain controlled 
     groups.--For purposes of this paragraph, if all persons who 
     are treated as a single employer for purposes of this section 
     do not have the same taxable year, the taxable years taken 
     into account shall be determined under principles similar to 
     the principles of section 1561.
       ``(2) Waiver by secretary.--In the case of a failure which 
     is due to reasonable cause and not to willful neglect, the 
     Secretary may waive part or all of the tax imposed by 
     subsection (a) to the extent that the payment of such tax 
     would be excessive relative to the failure involved.
       ``(d) Liability for Tax.--The following shall be liable for 
     the tax imposed by subsection (a):
       ``(1) In the case of a plan other than a multiemployer 
     plan, the employer.
       ``(2) In the case of a multiemployer plan, the plan.
       ``(e) Notice Requirements for Pension Plan Amendments 
     Reducing Accruals.--
       ``(1) In general.--If an applicable pension plan is amended 
     so as to provide for a significant reduction in the rate of 
     future benefit accrual of 1 or more applicable individuals, 
     the plan administrator shall--
       ``(A) not later than the 45th day before the effective date 
     of the amendment, provide the written notice described in 
     paragraph (2) to each applicable individual (and to each 
     employee organization (as defined in section 3(4) of the 
     Employee Retirement Income Security Act of 1974) representing 
     applicable individuals), and
       ``(B) in the case of a large applicable pension plan--
       ``(i) include in the notice under paragraph (2) the 
     additional information described in paragraph (3), and
       ``(ii) make available the information described in 
     paragraph (4) in accordance with such paragraph.
       ``(2) Basic written notice.--The notice under paragraph (1) 
     shall include a summary of the important terms of the 
     amendment, including--
       ``(A) the effective date of the amendment,
       ``(B) a statement that the amendment is expected to 
     significantly reduce the rate of future benefit accrual,
       ``(C) a description of the classes of applicable 
     individuals to whom the amendment applies, and
       ``(D) a description of how the amendment significantly 
     reduces the rate of future benefit accrual.
       ``(3) Additional information to be provided by large 
     applicable pension plans.--
       ``(A) In general.--The information described in this 
     paragraph is--
       ``(i) a description of the plan's benefit formulas 
     (including formulas for determining early retirement 
     benefits) both before and after the amendment and an 
     explanation of the effect of the different formulas on 
     applicable individuals,
       ``(ii) an explanation of the circumstances (if any) under 
     which (for appropriate categories of applicable individuals) 
     the amendment is reasonably expected to result in a temporary 
     period after the effective date of the amendment during which 
     there are no or minimal accruals,
       ``(iii) illustrative examples of normal or early retirement 
     benefits meeting the requirements of subparagraph (B), and
       ``(iv) notice of each applicable individual's right to 
     request, and of the procedures for requesting, the 
     information required to be provided under paragraph (4) and 
     under section 105(e) of Employee Retirement Income Security 
     Act of 1974.
       ``(B) Illustrative examples.--Illustrative examples meet 
     the requirements of this subparagraph if such examples 
     illustrate the adverse effects of the plan amendment. Such 
     examples shall be prepared by the plan administrator in 
     accordance with regulations prescribed by the Secretary, and 
     such regulations shall require that the examples--
       ``(i) reflect fairly the different categories of applicable 
     individuals who are similarly affected by the plan amendment 
     after consideration of all relevant factors,
       ``(ii) show a comparison of benefits for each such category 
     of applicable individuals under the plan (as in effect before 
     and after the effective date) at appropriate future dates, 
     and
       ``(iii) illustrate any temporary period described in 
     subparagraph (A)(ii).

     Such comparison shall be based on benefits in the form of a 
     life annuity and on actuarial assumptions each of which is 
     reasonable (and is so certified by an enrolled actuary) when 
     applied to all participants in the plan.
       ``(4) Supporting information relating to calculation of 
     benefits.--
       ``(A) In general.--Each individual who receives or who is 
     entitled to receive the information described in paragraph 
     (3) may (after so receiving or becoming so entitled) request 
     the plan administrator to provide the information described 
     in subparagraph (B).
       ``(B) Information.--The plan administrator shall, within 15 
     days after the date on which a request under subparagraph (A) 
     is made, provide to the individual information (including 
     benefit formulas and actuarial factors) which is sufficient--
       ``(i) to confirm the benefit comparisons in the 
     illustrative examples described in paragraph (3)(B), and
       ``(ii) to enable the individual to use the individual's own 
     personal information to make calculations of the individual's 
     own benefits which are similar to the calculations made in 
     such examples.

     Nothing in this subsection shall be construed to require the 
     plan administrator to provide to an individual such 
     individual's personal information for purposes of clause 
     (ii).
       ``(C) Time limitation on requests.--This paragraph shall 
     apply only to requests made during the 12-month period that 
     begins on the later of the effective date of the amendment to 
     which it relates or the date the notice described in 
     paragraph (2) is provided.
       ``(5) Special rules.--
       ``(A) Plain language.--The notice required under paragraph 
     (1) shall be written in a manner calculated to be understood 
     by the average plan participant who is an applicable 
     individual.
       ``(B) Notice to designees.--The notice or information 
     required to be provided under this subsection may be provided 
     to a person

[[Page 28808]]

     designated, in writing, by the person to which it would 
     otherwise be provided.
       ``(6) Alternative methods of compliance with enhanced 
     disclosure requirements in certain cases.--The Secretary 
     shall prescribe such regulations as may be necessary to carry 
     out this subsection. The Secretary may--
       ``(A) prescribe alternative or simplified methods of 
     complying with paragraphs (3) and (4) in situations where--
       ``(i) there is no fundamental change in the manner in which 
     the accrued benefit of an applicable individual is determined 
     under the plan, and
       ``(ii) such other methods are adequate to reasonably inform 
     plan participants who are applicable individuals of the 
     impact of the reductions,
       ``(B) reduce the advance notice period in paragraph (1)(A) 
     from 45 days to 15 days before the effective date of the 
     amendment for cases in which compliance with the 45-day 
     advance notice requirement would be unduly burdensome because 
     the amendment is contingent on a merger, acquisition, 
     disposition, or other similar transaction involving plan 
     participants who are applicable individuals or because 45 
     days advance notice is otherwise impracticable,
       ``(C) permit the comparison of benefits under paragraph 
     (3)(B)(i) to be based on a form of payment other than a life 
     annuity, or
       ``(D) specify actuarial assumptions that are deemed to be 
     reasonable for purposes of the benefit comparisons under 
     paragraph (3)(B)(i).
       ``(7) Applicable individual.--For purposes of this 
     subsection, the term `applicable individual' means, with 
     respect to any plan amendment--
       ``(A) each participant in the plan, and
       ``(B) each beneficiary who is an alternate payee (within 
     the meaning of section 414(p)(8)) under a qualified domestic 
     relations order (within the meaning of section 414(p)(1)),
     whose future benefit accruals under the plan may reasonably 
     be expected to be reduced by such plan amendment.
       ``(8) Terms relating to plans.--For purposes of this 
     subsection--
       ``(A) Applicable pension plan.--The term `applicable 
     pension plan' means--
       ``(i) a defined benefit plan, or
       ``(ii) an individual account plan which is subject to the 
     funding standards of section 412.

     Such term shall not include any governmental plan (within the 
     meaning of section 414(d)) or any church plan (within the 
     meaning of section 414(e)) with respect to which the election 
     provided by section 410(d) has not been made.
       ``(B) Large applicable pension plan.--The term `large 
     applicable pension plan' means an applicable pension plan 
     which had 100 or more active participants as of the last day 
     of the plan year preceding the plan year in which the plan 
     amendment becomes effective.''
       (2) Conforming amendment.--The table of sections for 
     chapter 43 is amended by adding at the end the following new 
     item:

``Sec. 4980F. Failure of defined benefit plans reducing benefit 
              accruals to satisfy notice requirements.''

       (c) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to plan amendments taking effect after the date of the 
     enactment of this Act.
       (2) Special rules.--
       (A) In general.--The amendments made by this section shall 
     not apply to any plan amendment for which there was written 
     notice before July 12, 1999, which was reasonably expected to 
     notify substantially all of the plan participants or their 
     representatives.
       (B) Transition.--Until such time as the Secretary of the 
     Treasury issues regulations under section 4980F(e) (3) and 
     (4) of the Internal Revenue Code of 1986 and section 204(h) 
     (3) and (4) of the Employee Retirement Income Security Act of 
     1974 (as added by the amendments made by this section), a 
     plan shall be treated as meeting the requirements of such 
     sections if it makes a good faith effort to comply with such 
     requirements.
       (C) Notice and information not required to be furnished 
     before 120th day after enactment.--The period for providing 
     any notice or information required by the amendments made by 
     this section shall not end before the date which is 120 days 
     after the date of the enactment of this Act.

     SEC. __15. PREVENTION OF WEARING AWAY OF EMPLOYEE'S ACCRUED 
                   BENEFIT.

       (a) Amendment to Internal Revenue Code.--Section 411(d)(6) 
     (relating to accrued benefit may not be decreased by 
     amendment) is amended by adding at the end the following new 
     subparagraph:
       ``(D) Treatment of plan amendments wearing away accrued 
     benefit.--
       ``(i) In general.--For purposes of subparagraph (A), a plan 
     amendment adopted by a large defined benefit plan shall be 
     treated as reducing accrued benefits of a participant if, 
     under the terms of the plan after the adoption of the 
     amendment, the accrued benefit of the participant may at any 
     time be less than the sum of--

       ``(I) the participant's accrued benefit for years of 
     service before the effective date of the amendment, 
     determined under the terms of the plan as in effect 
     immediately before the effective date, plus
       ``(II) the participant's accrued benefit determined under 
     the formula applicable to benefit accruals under the current 
     plan as applied to years of service after such effective 
     date.

       ``(ii) Large defined benefit plan.--For purposes of this 
     subparagraph, the term `large defined benefit plan' means any 
     defined benefit plan which had 100 or more participants who 
     had accrued a benefit under the plan (whether or not vested) 
     as of the last day of the plan year preceding the plan year 
     in which the plan amendment becomes effective.
       ``(iii) Protected accrued benefit.--For purposes of this 
     subparagraph, an accrued benefit shall include any early 
     retirement benefit or retirement-type subsidy (within the 
     meaning of subparagraph (B)(i)), but only with respect to a 
     participant who satisfies (either before or after the 
     effective date of the amendment) the conditions for the 
     benefit or subsidy under the terms of the plan as in effect 
     immediately before such date.''
       (b) Amendment of ERISA.--Section 204(g) of the Employee 
     Retirement Income Security Act of 1974 is amended by adding 
     at the end the following new paragraph:
       ``(4)(A) For purposes of paragraph (1), a plan amendment 
     adopted by a large defined benefit plan shall be treated as 
     reducing accrued benefits of a participant if, under the 
     terms of the plan after the adoption of the amendment, the 
     accrued benefit of the participant may at any time be less 
     than the sum of--
       ``(i) the participant's accrued benefit for years of 
     service before the effective date of the amendment, 
     determined under the terms of the plan as in effect 
     immediately before the effective date, plus
       ``(ii) the participant's accrued benefit determined under 
     the formula applicable to benefit accruals under the current 
     plan as applied to years of service after such effective 
     date.
       ``(B) For purposes of this paragraph, the term `large 
     defined benefit plan' means any defined benefit plan which 
     had 100 or more participants who had accrued a benefit under 
     the plan (whether or not vested) as of the last day of the 
     plan year preceding the plan year in which the plan amendment 
     becomes effective.
       ``(C) For purposes of this paragraph, an accrued benefit 
     shall include any early retirement benefit or retirement-type 
     subsidy (within the meaning of paragraph (2)(A)), but only 
     with respect to a participant who satisfies (either before or 
     after the effective date of the amendment) the conditions for 
     the benefit or subsidy under the terms of the plan as in 
     effect immediately before such date.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan amendments adopted after June 29, 1999.

      Subtitle B--Promoting Technological and Economic Development

     SEC. __21. INCREASE IN EXPENSING LIMITATION TO $25,000.

       (a) In General.--Paragraph (1) of section 179(b) of the 
     Internal Revenue Code of 1986 (relating to limitations) is 
     amended to read as follows:
       ``(1) Dollar limitation.--The aggregate cost which may be 
     taken into account under subsection (a) for any taxable year 
     shall not exceed $25,000.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1999.

     SEC. __22. NEW MARKETS TAX CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits), as amended 
     by section __06, is amended by adding at the end the 
     following new section:

     ``SEC. 45F. NEW MARKETS TAX CREDIT.

     ``(a) Allowance of Credit.--
       ``(1) In general.--For purposes of section 38, in the case 
     of a taxpayer who holds a qualified equity investment on a 
     credit allowance date of such investment which occurs during 
     the taxable year, the new markets tax credit determined under 
     this section for such taxable year is an amount equal to 6 
     percent of the amount paid to the qualified community 
     development entity for such investment at its original issue.
       ``(2) Credit allowance date.--The term `credit allowance 
     date' means, with respect to any qualified equity 
     investment--
       ``(A) the date on which such investment is initially made, 
     and
       ``(B) each of the 4 anniversary dates of such date 
     thereafter.
       ``(b) Qualified Equity Investment.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified equity investment' 
     means any equity investment in a qualified community 
     development entity if--
       ``(A) such investment is acquired by the taxpayer at its 
     original issue (directly or through an underwriter) solely in 
     exchange for cash,
       ``(B) substantially all of such cash is used by the 
     qualified community development entity to make qualified low-
     income community investments, and

[[Page 28809]]

       ``(C) such investment is designated for purposes of this 
     section by the qualified community development entity.

     Such term shall not include any equity investment issued by a 
     qualified community development entity more than 5 years 
     after the date that such entity receives an allocation under 
     subsection (f). Any allocation not used within such 5-year 
     period may be reallocated by the Secretary under subsection 
     (f).
       ``(2) Limitation.--The maximum amount of equity investments 
     issued by a qualified community development entity which may 
     be designated under paragraph (1)(C) by such entity shall not 
     exceed the portion of the limitation amount allocated under 
     subsection (f) to such entity.
       ``(3) Safe harbor for determining use of cash.--The 
     requirement of paragraph (1)(B) shall be treated as met if at 
     least 85 percent of the aggregate gross assets of the 
     qualified community development entity are invested in 
     qualified low-income community investments.
       ``(4) Treatment of subsequent purchasers.--The term 
     `qualified equity investment' includes any equity investment 
     which would (but for paragraph (1)(A)) be a qualified equity 
     investment in the hands of the taxpayer if such investment 
     was a qualified equity investment in the hands of a prior 
     holder.
       ``(5) Redemptions.--A rule similar to the rule of section 
     1202(c)(3) shall apply for purposes of this subsection.
       ``(6) Equity investment.--The term `equity investment' 
     means--
       ``(A) any stock in a qualified community development entity 
     which is a corporation, and
       ``(B) any capital interest in a qualified community 
     development entity which is a partnership.
       ``(c) Qualified Community Development Entity.--For purposes 
     of this section--
       ``(1) In general.--The term `qualified community 
     development entity' means any domestic corporation or 
     partnership if--
       ``(A) the primary mission of the entity is serving, or 
     providing investment capital for, low-income communities or 
     low-income persons,
       ``(B) the entity maintains accountability to residents of 
     low-income communities through representation on governing or 
     advisory boards or otherwise, and
       ``(C) the entity is certified by the Secretary for purposes 
     of this section as being a qualified community development 
     entity.
       ``(2) Special rules for certain organizations.--The 
     requirements of paragraph (1) shall be treated as met by--
       ``(A) any specialized small business investment company (as 
     defined in section 1044(c)(3)), and
       ``(B) any community development financial institution (as 
     defined in section 103 of the Community Development Banking 
     and Financial Institutions Act of 1994 (12 U.S.C. 4702)).
       ``(d) Qualified Low-Income Community Investments.--For 
     purposes of this section--
       ``(1) In general.--The term `qualified low-income community 
     investment' means--
       ``(A) any equity investment in, or loan to, any qualified 
     active low-income community business,
       ``(B) the purchase from another community development 
     entity of any loan made by such entity which is a qualified 
     low-income community investment if the amount received by 
     such other entity from such purchase is used by such other 
     entity to make qualified low-income community investments,
       ``(C) financial counseling and other services specified in 
     regulations prescribed by the Secretary to businesses located 
     in, and residents of, low-income communities, and
       ``(D) any equity investment in, or loan to, any qualified 
     community development entity if substantially all of the 
     investment or loan is used by such entity to make qualified 
     low-income community investments described in subparagraphs 
     (A), (B), and (C).
       ``(2) Qualified active low-income community business.--
       ``(A) In general.--For purposes of paragraph (1), the term 
     `qualified active low-income community business' means, with 
     respect to any taxable year, any corporation or partnership 
     if for such year--
       ``(i) at least 50 percent of the total gross income of such 
     entity is derived from the active conduct of a qualified 
     business within any low-income community,
       ``(ii) a substantial portion of the use of the tangible 
     property of such entity (whether owned or leased) is within 
     any low-income community,
       ``(iii) a substantial portion of the services performed for 
     such entity by its employees are performed in any low-income 
     community,
       ``(iv) less than 5 percent of the average of the aggregate 
     unadjusted bases of the property of such entity is 
     attributable to collectibles (as defined in section 
     408(m)(2)) other than collectibles that are held primarily 
     for sale to customers in the ordinary course of such 
     business, and
       ``(v) less than 5 percent of the average of the aggregate 
     unadjusted bases of the property of such entity is 
     attributable to nonqualified financial property (as defined 
     in section 1397B(e)).
       ``(B) Proprietorship.--Such term shall include any business 
     carried on by an individual as a proprietor if such business 
     would meet the requirements of subparagraph (A) were it 
     incorporated.
       ``(C) Portions of business may be qualified active low-
     income community business.--The term `qualified active low-
     income community business' includes any trades or businesses 
     which would qualify as a qualified active low-income 
     community business if such trades or businesses were 
     separately incorporated.
       ``(3) Qualified business.--For purposes of this subsection, 
     the term `qualified business' has the meaning given to such 
     term by section 1397B(d); except that--
       ``(A) in lieu of applying paragraph (2)(B) thereof, the 
     rental to others of real property located in any low-income 
     community shall be treated as a qualified business if there 
     are substantial improvements located on such property,
       ``(B) paragraph (3) thereof shall not apply, and
       ``(C) such term shall not include any business if a 
     significant portion of the equity interests in such business 
     are held by any person who holds a significant portion of the 
     equity investments in the community development entity.
       ``(e) Low-Income Community.--For purposes of this section--
       ``(1) In general.--The term `low-income community' means 
     any population census tract if--
       ``(A) the poverty rate for such tract is at least 20 
     percent, or
       ``(B)(i) in the case of a tract not located within a 
     metropolitan area, the median family income for such tract 
     does not exceed 80 percent of statewide median family income, 
     or
       ``(ii) in the case of a tract located within a metropolitan 
     area, the median family income for such tract does not exceed 
     80 percent of the greater of statewide median family income 
     or the metropolitan area median family income.
       ``(2) Areas not within census tracts.--In the case of an 
     area which is not tracted for population census tracts, the 
     equivalent county divisions (as defined by the Bureau of the 
     Census for purposes of defining poverty areas) shall be used 
     for purposes of determining poverty rates and median family 
     income.
       ``(3) Targeted population.--The Secretary may prescribe 
     regulations under which 1 or more targeted populations 
     (within the meaning of section 3(20) of the Riegle Community 
     Development and Regulatory Improvement Act of 1974 (12 U.S.C. 
     4702(20))) may be treated as low-income communities. Such 
     regulations shall include procedures for identifying the area 
     covered by any such community for purposes of determining 
     entities which are qualified active low-income community 
     businesses with respect to such community.
       ``(f) National Limitation on Amount of Investments 
     Designated.--
       ``(1) In general.--There is a new markets tax credit 
     limitation of $750,000,000 for each of calendar years 2001 
     through 2005 and zero for any succeeding calendar year.
       ``(2) Allocation of limitation.--The limitation under 
     paragraph (1) shall be allocated by the Secretary among 
     qualified community development entities selected by the 
     Secretary. In making allocations under the preceding 
     sentence, the Secretary shall give priority to entities with 
     records of having successfully provided capital or technical 
     assistance to disadvantaged businesses or communities.
       ``(3) Carryover of unused limitation.--If the new markets 
     tax credit limitation for any calendar year exceeds the 
     aggregate amount allocated under paragraph (2) for such year, 
     such limitation for the succeeding calendar year shall be 
     increased by the amount of such excess.
       ``(g) Recapture of Credit In Certain Cases.--
       ``(1) In general.--If, at any time during the 5-year period 
     beginning on the date of the original issue of a qualified 
     equity investment in a qualified community development 
     entity, there is a recapture event with respect to such 
     investment, then the tax imposed by this chapter for the 
     taxable year in which such event occurs shall be increased by 
     the credit recapture amount.
       ``(2) Credit recapture amount.--For purposes of paragraph 
     (1), the credit recapture amount is an amount equal to the 
     sum of--
       ``(A) the aggregate decrease in the credits allowed to the 
     taxpayer under section 38 for all prior taxable years which 
     would have resulted if no credit had been determined under 
     this section with respect to such investment, plus
       ``(B) interest at the overpayment rate established under 
     section 6621 on the amount determined under subparagraph (A) 
     for each prior taxable year for the period beginning on the 
     due date for filing the return for the prior taxable year 
     involved.
     No deduction shall be allowed under this chapter for interest 
     described in subparagraph (B).
       ``(3) Recapture event.--For purposes of paragraph (1), 
     there is a recapture event with respect to an equity 
     investment in a qualified community development entity if--
       ``(A) such entity ceases to be a qualified community 
     development entity,

[[Page 28810]]

       ``(B) the proceeds of the investment cease to be used as 
     required of subsection (b)(1)(B), or
       ``(C) such investment is redeemed by such entity.
       ``(4) Special rules.--
       ``(A) Tax benefit rule.--The tax for the taxable year shall 
     be increased under paragraph (1) only with respect to credits 
     allowed by reason of this section which were used to reduce 
     tax liability. In the case of credits not so used to reduce 
     tax liability, the carryforwards and carrybacks under section 
     39 shall be appropriately adjusted.
       ``(B) No credits against tax.--Any increase in tax under 
     this subsection shall not be treated as a tax imposed by this 
     chapter for purposes of determining the amount of any credit 
     under this chapter or for purposes of section 55.
       ``(h) Basis Reduction.--The basis of any qualified equity 
     investment shall be reduced by the amount of any credit 
     determined under this section with respect to such 
     investment.
       ``(i) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to carry out this section, 
     including regulations--
       ``(1) which limit the credit for investments which are 
     directly or indirectly subsidized by other Federal benefits 
     (including the credit under section 42 and the exclusion from 
     gross income under section 103),
       ``(2) which prevent the abuse of the provisions of this 
     section through the use of related parties,
       ``(3) which impose appropriate reporting requirements
       ``(4) which apply the provisions of this section to newly 
     formed entities.''
       (b) Credit Made Part of General Business Credit.--
       (1) In general.--Subsection (b) of section 38, as amended 
     by section __06, is amended by striking ``plus'' at the end 
     of paragraph (13), by striking the period at the end of 
     paragraph (14) and inserting ``, plus'', and by adding at the 
     end the following new paragraph:
       ``(15) the new markets tax credit determined under section 
     45F(a).''
       (2) Limitation on carryback.--Subsection (d) of section 39 
     is amended by adding at the end the following new paragraph:
       ``(11) No carryback of new markets tax credit before 
     january 1, 2000.--No portion of the unused business credit 
     for any taxable year which is attributable to the credit 
     under section 45E may be carried back to a taxable year 
     ending before January 1, 2000.''
       (c) Deduction for Unused Credit.--Subsection (c) of section 
     196 is amended by striking ``and'' at the end of paragraph 
     (7), by striking the period at the end of paragraph (8) and 
     inserting ``, and'', and by adding at the end the following 
     new paragraph:
       ``(9) the new markets tax credit determined under section 
     45F(a).''
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1, as amended by 
     section __06, is amended by adding at the end the following 
     new item:

``Sec. 45F. New markets tax credit.''

       (e) Effective Date.--The amendments made by this section 
     shall apply to investments made after December 31, 2000.

     SEC. __23. WAGE CREDITS FOR ROUND 2 EMPOWERMENT ZONES.

       (a) In General.--Section 1396(b)(2) (relating to special 
     rule) is amended by inserting ``or pursuant to section 
     1391(g)'' after ``section 1391(b)(2)''.
       (b) Conforming Amendment.--Section 1396 is amended by 
     striking subsection (e).
       (c) Effective Date.--The amendments made by this section 
     shall take effect of the date of the enactment of this Act.

     SEC. __24. CREDIT FOR INFORMATION TECHNOLOGY TRAINING PROGRAM 
                   EXPENSES.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business-related credits), as amended 
     by section __22, is amended by adding at the end the 
     following:

     ``SEC. 45G. INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES.

       ``(a) General Rule.--For purposes of section 38, in the 
     case of an employer, the information technology training 
     program credit determined under this section is an amount 
     equal to 20 percent of information technology training 
     program expenses paid or incurred by the taxpayer during the 
     taxable year.
       ``(b) Additional Credit Percentage for Certain Programs.--
     The percentage under subsection (a) shall be increased by 5 
     percentage points for information technology training program 
     expenses paid or incurred--
       ``(1) by the taxpayer with respect to a program operated 
     in--
       ``(A) an empowerment zone or enterprise community 
     designated under part I of subchapter U,
       ``(B) a school district in which at least 50 percent of the 
     students attending schools in such district are eligible for 
     free or reduced-cost lunches under the school lunch program 
     established under the National School Lunch Act,
       ``(C) an area designated as a disaster area by the 
     Secretary of Agriculture or by the President under the 
     Disaster Relief and Emergency Assistance Act in the taxable 
     year or the 4 preceding taxable years,
       ``(D) a rural enterprise community designated under section 
     766 of the Agriculture, Rural Development, Food and Drug 
     Administration, and Related Agencies Appropriations Act, 
     1999,
       ``(E) an area designated by the Secretary of Agriculture as 
     a Rural Economic Area Partnership Zone, or
       ``(F) an area designated by the Secretary of Agriculture as 
     a Champion Community, or
       ``(2) by a small employer.
       ``(c) Limitation.--The amount of information technology 
     training program expenses with respect to an individual which 
     may be taken into account under subsection (a) for the 
     taxable year shall not exceed $6,000.
       ``(d) Information Technology Training Program Expenses.--
     For purposes of this section--
       ``(1) In general.--The term `information technology 
     training program expenses' means expenses paid or incurred by 
     reason of the participation of the employer in any 
     information technology training program.
       ``(2) Information technology training program.--The term 
     `information technology training program' means a program--
       ``(A) for the training of--
       ``(i) computer programmers, systems analysts, and computer 
     scientists or engineers (as such occupations are defined by 
     the Bureau of Labor Statistics), and
       ``(ii) such other occupations as determined by the 
     Secretary, after consultation with a working group broadly 
     solicited by the Secretary and open to all interested 
     information technology entities and trade and professional 
     associations,
       ``(B) involving a partnership of--
       ``(i) employers, and
       ``(ii) State training programs, school districts, 
     university systems, tribal colleges, or certified commercial 
     information technology training providers, and
       ``(C) at least 50 percent of the costs of which is paid or 
     incurred by the employers.
       ``(3) Certified commercial information technology training 
     provider.--The term `certified commercial information 
     technology training providers' means a private sector 
     provider of educational products and services utilized for 
     training in information technology which is certified with 
     respect to--
       ``(A) the curriculum that is used for the training, or
       ``(B) the technical knowledge of the instructors of such 
     provider,

     by 1 or more software publishers or hardware manufacturers 
     the products of which are a subject of the training.
       ``(e) Small Employer.--For purposes of this section, the 
     term `small employer' means, with respect to any calendar 
     year, any employer if such employer employed 200 or fewer 
     employees on each business day in each of 20 or more calendar 
     weeks in such year or the preceding calendar year.
       ``(f) Denial of Double Benefit.--No deduction or credit 
     under any other provision of this chapter shall be allowed 
     with respect to information technology training program 
     expenses (determined without regard to the limitation under 
     subsection (c)).
       ``(g) Certain rules made applicable.--For purposes of this 
     section, rules similar to the rules of section 45A(e)(2) and 
     subsections (c), (d), and (e) of section 52 shall apply.''
       (b) Credit To Be Part of General Business Credit.--Section 
     38(b) (relating to current year business credit), as amended 
     by section __22, is amended by striking ``plus'' at the end 
     of paragraph (14), by striking the period at the end of 
     paragraph (15) and inserting ``, plus'', and by adding at the 
     end the following:
       ``(16) the information technology training program credit 
     determined under section 45G.''
       (c) No Carrybacks.--Subsection (d) of section 39 (relating 
     to carryback and carryforward of unused credits), as amended 
     by section __22, is amended by adding at the end the 
     following:
       ``(12) No carryback of section 45G credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the information 
     technology training program credit determined under section 
     45G may be carried back to a taxable year ending before the 
     date of the enactment of section 45G.''
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1, as amended by 
     section __22, is amended by adding at the end the following:

``Sec. 45G. Information technology training program expenses.''

       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. __25. RESTORATION OF STANDARDS FOR DETERMINING WHETHER 
                   TECHNICAL WORKERS ARE NOT EMPLOYEES.

       (a) Repeal of Section 530(d) of the Revenue Act of 1978.--
     Section 530(d) of the Revenue Act of 1978 (as added by 
     section 1706 of the Tax Reform Act of 1986) is repealed.
       (b) Effective Date.--The amendment made by subsection (c) 
     shall apply to periods ending after the date of enactment of 
     this Act.

[[Page 28811]]



     SEC. __26. CERTAIN POST-SECONDARY EDUCATIONAL BENEFITS 
                   PROVIDED BY AN EMPLOYER TO CHILDREN OF 
                   EMPLOYEES EXCLUDABLE FROM GROSS INCOME AS A 
                   SCHOLARSHIP.

       (a) In General.--Section 117 (relating to qualified 
     scholarships) is amended by adding at the end the following:
       ``(e) Employer-Provided Post-Secondary Educational Benefits 
     Provided to Children of Employees.--
       ``(1) In general.--In determining whether any amount is a 
     qualified scholarship for purposes of subsection (a), the 
     fact that such amount is provided in connection with an 
     employment relationship shall be disregarded if--
       ``(A) such amount is provided by the employer to a child 
     (as defined in section 161(c)(3)) of an employee of such 
     employer,
       ``(B) such amount is provided pursuant to a plan which 
     meets the nondiscrimination requirements of subsection 
     (d)(3), and
       ``(C) amounts provided under such plan are in addition to 
     any other compensation payable to employees and such plan 
     does not provide employees with a choice between such amounts 
     and any other benefit.

     For purposes of subparagraph (C), the business practices of 
     the employer (as well as such plan) shall be taken into 
     account.
       ``(2) Dollar limitations.--
       ``(A) Per child.--The amount excluded from the gross income 
     of the employee by reason of paragraph (1) for a taxable year 
     with respect to amounts provided to each child of such 
     employee shall not exceed $2,000.
       ``(B) Aggregate limit.--The amount excluded from the gross 
     income of the employee by reason of paragraph (1) for a 
     taxable year (after the application of subparagraph (A)) 
     shall not exceed the excess of the dollar amount contained in 
     section 127(a)(2) over the amount excluded from the 
     employee's gross income under section 127 for such year.
       ``(3) Principal shareholders and owners.--Paragraph (1) 
     shall not apply to any amount provided to any child of any 
     individual if such individual (or such individual's spouse) 
     owns (on any day of the year) more than 5 percent of the 
     stock or of the capital or profits interest in the employer.
       ``(4) Special rules of application.--In the case of an 
     amount which is treated as a qualified scholarship by reason 
     of this subsection--
       ``(A) subsection (a) shall be applied without regard to the 
     requirement that the recipient be a candidate for a degree, 
     and
       ``(B) subsection (b)(2)(A) shall be applied by substituting 
     `section 529(e)(5)' for `section 170(b)(1)(A)(ii)'.
       ``(5) Certain other rules to apply.--Rules similar to the 
     rules of paragraphs (4), (5), and (7) of section 127(c) shall 
     apply for purposes of this subsection.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of 
     enactment of this Act.

     SEC. __27. INCREASE IN STATE CEILING ON LOW-INCOME HOUSING 
                   CREDIT.

       (a) In General.--Clause (i) of section 42(h)(3)(C) 
     (relating to State housing credit ceiling) is amended to read 
     as follows:
       ``(i) the applicable amount under subparagraph (H) 
     multiplied by the State population,''.
       (b) Applicable Amount.--Paragraph (3) of section 42(h) 
     (relating to housing credit dollar amount for agencies) is 
     amended by adding at the end the following new subparagraph:
       ``(H) Applicable amount of state ceiling.--For purposes of 
     subparagraph (C)(i), the applicable amount shall be 
     determined under the following table:

  
``For calendar year--                                    The applicable
                                                            amount is--
      2000.......................................................$1.30 
      2001......................................................  1.35 
      2002......................................................  1.40 
      2003......................................................  1.45 
      2004......................................................  1.50 
      2005......................................................  1.55 
      2006......................................................  1.60 
      2007......................................................  1.65 
      2008......................................................  1.70 
      2009 and thereafter.....................................  1.75.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to calendar years after 1999.

              Subtitle C--Expanding Economic Opportunities

     SEC. __31. WORK OPPORTUNITY CREDIT AND WELFARE-TO-WORK 
                   CREDIT.

       (a) Temporary Extension.--Sections 51(c)(4)(B) and 51A(f ) 
     (relating to termination) are each amended by striking 
     ``December 31, 2000'' and inserting ``December 31, 2004''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to individuals who begin work for the employer 
     after December 31, 2000.

     SEC. __32. EXTENSION OF CREDIT FOR HOLDERS OF QUALIFIED ZONE 
                   ACADEMY BONDS.

       Section 1397E(e)(1) (relating to national limitation) is 
     amended by striking ``and 1999'' and inserting ``, 1999, and 
     2000''.

        Subtitle D--Promoting Family-Owned Farms and Businesses

     SEC. __41. INCREASE IN ESTATE TAX DEDUCTION FOR FAMILY-OWNED 
                   BUSINESS INTEREST.

       (a) In General.--Section 2057(a)(2) (relating to maximum 
     deduction) is amended by striking ``$675,000'' and inserting 
     ``$1,125,000''.
       (b) Conforming Amendments.--Section 2057(a)(3)(B) (relating 
     to coordination with unified credit) is amended by striking 
     ``$675,000'' each place it appears in the text and heading 
     and inserting ``$1,125,000''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to estates of decedents dying after December 31, 
     2002.

     SEC. __42. INCOME AVERAGING FOR FARMERS NOT TO INCREASE 
                   ALTERNATIVE MINIMUM TAX LIABILITY.

       (a) In General.--Section 55(c) (defining regular tax) is 
     amended by redesignating paragraph (2) as paragraph (3) and 
     by inserting after paragraph (1) the following:
       ``(2) Coordination with income averaging for farmers.--
     Solely for purposes of this section, section 1301 (relating 
     to averaging of farm income) shall not apply in computing the 
     regular tax.''
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. __43. NET OPERATING LOSS OF FARMERS.

       (a) Increase in Carryback Years.--Paragraph (1) of section 
     172(b) (relating to net operating loss carrybacks and 
     carryforwards) is amended by adding at the end the following 
     new subparagraph:
       ``(G) Farming losses.--Subparagraph (A) shall be applied--
       ``(i) in the matter preceding clause (i), by substituting 
     `any taxable year beginning with the 3rd taxable year after 
     the taxable year of such loss' for `any taxable year', and
       ``(ii) in clause (i), by substituting `10 years' for `2 
     years',

     with respect to the portion of the net operating loss of an 
     eligible taxpayer (as defined in subsection (i)) for any 
     taxable year beginning after December 31, 2000, and ending 
     before January 1, 2003, which is a farming loss (as so 
     defined) with respect to the taxpayer.''
       (b) Definitions and Rules Relating to Farming Losses.--
     Section 172 is amended by redesignating subsection (i) as 
     subsection (j) and inserting after subsection (h) the 
     following new subsection:
       ``(i) Definitions and Rules Relating to Farming Losses.--
     For purposes of this section--
       ``(1) Farming loss.--
       ``(A) In general.--The term `farming loss' means the lesser 
     of--
       ``(i) the net operating loss of the taxpayer for the 
     taxable year, or
       ``(ii) the net operating loss of the taxpayer for the 
     taxable year determined by only taking into account items of 
     income and deduction attributable to 1 or more qualified 
     farming business of the taxpayer.
       ``(B) Dollar limitation.--
       ``(i) In general.--The farming loss of taxpayer for any 
     taxable year shall not exceed $200,000.
       ``(ii) Aggregation rules.--

       ``(I) In general.--All persons treated as 1 employer under 
     subsections (a) or (b) of section 52 shall be treated as 1 
     person.
       ``(II) Pass-thru entity.--In the case of a partnership, 
     trust, or other pass-thru entity, the limitation shall be 
     applied at both the entity and the owner level.
       ``(III) Owner.--The limitation shall be reduced by the 
     amount of farming loss determined for a corporation for which 
     the taxpayer is a 50 percent owner in the taxable year of the 
     corporation ending in the taxable year of the taxpayer owner.

       ``(2) Eligible taxpayer.--
       ``(A) In general.--The term `eligible taxpayer' means a 
     taxpayer which derives more than 50 percent of its gross 
     income for the 3-year period beginning 2 years prior to the 
     current taxable year from qualified farming businesses.
       ``(B) Qualified farming business.--The term `qualified 
     farming business' means a trade or business of farming 
     (within the meaning of section 2032A)--
       ``(i) with respect to which--

       ``(I) the taxpayer or a member of the family of the 
     taxpayer materially participates (within the meaning of 
     section 2032A(e)(6)), or
       ``(II) in the case of a taxpayer other than an individual, 
     a 20 percent owner of the taxpayer or a member of the owner's 
     family materially participates (as so defined), and

       ``(ii) which does not receive in excess of $7,000,000 for 
     sales in a taxable year.

     For purposes of clause (i)(II), owners which are members of a 
     single family shall be treated as a single owner.
       ``(3) Owner.--
       ``(A) 20 percent owner.--The term `20 percent owner' means 
     any person who would be described in section 416(i)(1)(B)(i) 
     if `20 percent' were substituted for `5 percent' each place 
     it appears in such section.
       ``(B) 50 percent owner.--The term `50 percent owner' means 
     any person who would be described in section 416(i)(1)(B)(i) 
     if `50 percent' were substituted for `5 percent' each place 
     it appears in such section.
       ``(4) Coordination with subsection (b)(2).--For purposes of 
     applying subsection (b)(2), a farming loss for any taxable 
     year shall be treated as a separate net operating loss for 
     such taxable year to be taken into account for the remaining 
     portion of the net operating loss for such taxable year.

[[Page 28812]]

       ``(5) Election.--Any taxpayer entitled to a 10-year 
     carryback under subsection (b)(1)(G) from any loss year may 
     elect to have the carryback period with respect to such loss 
     year, and any portion of the farming loss for such year, 
     determined without regard to subsection (b)(1)(G). Such 
     election shall be made in such manner as may be prescribed by 
     the Secretary and shall be made by the due date (including 
     extensions of time) for filing the taxpayer's return for the 
     taxable year of the net operating loss. Such election, once 
     made for any taxable year, shall be irrevocable for the 
     taxable year.''

     SEC. __44. SMALL BUSINESSES ALLOWED INCREASED DEDUCTION FOR 
                   MEAL EXPENSES.

       (a) In General.--Subsection (n) of section 274 (relating to 
     only 50 percent of meal and entertainment expenses allowed as 
     deduction) is amended by adding at the end the following new 
     paragraph:
       ``(4) Special rule for small businesses.--
       ``(A) In general.--In the case of any taxpayer which is a 
     small business, paragraph (1) shall be applied by 
     substituting for `50 percent' with respect to expenses for 
     food or beverages--
       ``(i) `55 percent' in the case of taxable years beginning 
     in 2001, and
       ``(ii) `60 percent' in the case of taxable years beginning 
     after 2001.
       ``(B) Small business.--For purposes of this paragraph, the 
     term `small business' means, with respect to expenses paid or 
     incurred during any taxable year--
       ``(i) any C corporation which meets the requirements of 
     section 55(e)(1) for such year, and
       ``(ii) any S corporation, partnership, or sole 
     proprietorship which would meet such requirements if it were 
     a C corporation.''
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. __45. TAX EXCLUSION FOR COST-SHARING PAYMENTS UNDER 
                   PARTNERS FOR WILDLIFE PROGRAM.

       (a) In General.--Section 126(a) (relating to certain cost-
     sharing payments) is amended by redesignating paragraph (10) 
     as paragraph (11) and by inserting after paragraph (9) the 
     following:
       ``(10) The Partners for Wildlife Program authorized by the 
     Fish and Wildlife Act of 1956 (16 U.S.C. 742a et seq.).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

              Subtitle E--Providing Administrative Relief

     SEC. __51. DISCLOSURE OF TAX INFORMATION TO FACILITATE 
                   COMBINED EMPLOYMENT TAX REPORTING.

       Section 6103(d)(5) is amended to read as follows:
       ``(5) Disclosure for combined employment tax reporting.--
     The Secretary may disclose taxpayer identity information and 
     signatures to any agency, body, or commission of any State 
     for the purpose of carrying out with such agency, body, or 
     commission a combined Federal and State employment tax 
     reporting program approved by the Secretary. Subsections 
     (a)(2) and (p)(4) and sections 7213 and 7213A shall not apply 
     with respect to disclosures or inspections made pursuant to 
     this paragraph.''

     SEC. __52. ENROLLED AGENTS.

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

     ``SEC. 7527. ENROLLED AGENTS.

       ``(a) In General.--The Secretary may prescribe such 
     regulations as may be necessary to regulate the conduct of 
     enrolled agents in regards to their practice before the 
     Internal Revenue Service.
       ``(b) Use of Credentials.--
       ``(1) In general.--Any enrolled agent properly licensed to 
     practice before the Internal Revenue Service under subsection 
     (a) shall be allowed to use the credentials `Enrolled Agent', 
     `EA', or `E.A.'.
       ``(2) Prohibition on interference.--No state, municipality 
     or locality, or agency thereof, shall interfere with the 
     right of enrolled agents to use such credentials as described 
     in paragraph (b)(1).''
       (b) Clerical Amendment.--The table of sections for chapter 
     77 is amended by adding at the end the following new item:

``Sec. 7527. Enrolled agents.''
       (c) Prior Regulations.--Nothing in the amendments made by 
     this section shall be construed to have any effect on part 10 
     of title 31, Code of Federal Regulations, or any other 
     Federal rule or regulation issued before the date of the 
     enactment of this Act.

                      Subtitle F--Revenue Offsets

     SEC. __61. RESTORATION OF PHASE-OUT OF UNIFIED CREDIT.

       (a) In General.--Paragraph (2) of section 2001(c) is 
     amended by striking ``$10,000,000'' and all that follows and 
     inserting ``$10,000,000. The amount of the increase under the 
     preceding sentence shall not exceed the sum of the applicable 
     credit amount under section 2010(c) (determined without 
     regard to section 2057(a)(3)) and $359,200.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to estates of decedents dying after the date of 
     enactment of this Act.

     SEC. __62. REPEAL OF LOWER-OF-COST-OR-MARKET METHOD OF 
                   ACCOUNTING FOR INVENTORIES.

       (a) In General.--Section 471 (relating to general rule for 
     inventories) is amended by redesignating subsection (b) as 
     subsection (c) and by inserting after subsection (a) the 
     following new subsection:
       ``(b) Certain Write-Downs Not Permitted; Use of Mark-Downs 
     Required Under Retail Method.--
       ``(1) In general.--A taxpayer--
       ``(A) may not use the lower-of-cost-or-market method of 
     accounting for inventories, and
       ``(B) may not write-down items by reason of being unsalable 
     at normal prices or unusable in the normal way because of 
     damage, imperfections, shop wear, changes of style, odd or 
     broken lots, or other similar causes.

     Subparagraph (B) shall not apply to a taxpayer using a mark-
     to-market method of accounting for both gains and losses in 
     inventory values.
       ``(2) Mark-downs required to be taken into account under 
     retail method.--The retail method of accounting for 
     inventories shall be applied by taking into account mark-
     downs in determining the approximate cost of the inventories.
       ``(3) Exception for certain small businesses.--Paragraph 
     (1) shall not apply to any taxpayer for any taxable year if, 
     for all prior taxable years ending on or after the date of 
     the enactment of this subsection, the taxpayer (or any 
     predecessor) met the $5,000,000 gross receipts test of 
     section 448(c).
       ``(4) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to carry out the purposes 
     of this subsection, including regulations relating to wash-
     sale-type transactions.''
       (b) Conforming Amendments.--
       (1) Clause (iii) of section 312(n)(4)(C) is amended to read 
     as follows:
       ``(iii) Inventory amount.--The inventory amount of assets 
     under the first-in, first-out method authorized by section 
     471 shall be determined using the method authorized to be 
     used by the taxpayer under such section.''
       (2) Subparagraph (C) of section 1363(d)(4) is amended to 
     read as follows:
       ``(C) Inventory amount.--The inventory amount of assets 
     under a method authorized by section 471 shall be determined 
     using the method authorized to be used by the corporation 
     under such section.''
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after the date of the 
     enactment of this subsection.
       (2) Change in method of accounting.--In the case of any 
     taxpayer required by this section to change its method of 
     accounting for its first taxable year beginning after the 
     date of the enactment of this subsection--
       (A) such change shall be treated as initiated by the 
     taxpayer,
       (B) such change shall be treated as made with the consent 
     of the Secretary of the Treasury, and
       (C) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account 
     ratably over the 4-taxable year period beginning with the 
     first taxable year beginning after such date.

     SEC. __63. CONSISTENT AMORTIZATION PERIODS FOR INTANGIBLES.

       (a) Start-Up Expenditures.--
       (1) Allowance of deduction.--Subsection (b) of section 195 
     (relating to start-up expenditures) is amended by striking 
     paragraph (1), by redesignating paragraph (2) as paragraph 
     (3), and by inserting before paragraph (3), as so 
     redesignated, the following new paragraphs:
       ``(1) Allowance of Deduction.--If a taxpayer elects the 
     application of this subsection with respect to any start-up 
     expenditures--
       ``(A) the taxpayer shall be allowed a deduction for the 
     taxable year in which the active trade or business begins in 
     an amount equal to the lesser of--
       ``(i) the amount of start-up expenditures with respect to 
     the active trade or business, or
       ``(ii) $5,000, reduced (but not below zero) by the amount 
     by which such start-up expenditures exceed $50,000, and
       ``(B) the remainder of such start-up expenditures shall be 
     allowed as a deduction ratably over the 180-month period 
     beginning with the month in which the active trade or 
     business begins.
       ``(2) Aggregation rule.--For purposes of paragraph (1), all 
     persons which are treated as a single employer under 
     subsections (a) and (b) of section 52 shall be treated as a 
     single person.''
       (2) Conforming amendment.--Subsection (b) of section 195 is 
     amended by striking ``Amortize'' and inserting ``Deduct'' in 
     the heading.
       (b) Organizational Expenditures.--Subsection (a) of section 
     248 (relating to organizational expenditures) is amended to 
     read as follows:
       ``(a) Election to Deduct.--
       ``(1) In general.--If a corporation elects the application 
     of this subsection (in accordance with regulations prescribed 
     by the Secretary) with respect to any organizational 
     expenditures--
       ``(A) the corporation shall be allowed a deduction for the 
     taxable year in which the

[[Page 28813]]

     corporation begins business in an amount equal to the lesser 
     of--
       ``(i) the amount of organizational expenditures with 
     respect to the taxpayer, or
       ``(ii) $5,000, reduced (but not below zero) by the amount 
     by which such organizational expenditures exceed $50,000, and
       ``(B) the remainder of such organizational expenditures 
     shall be allowed as a deduction ratably over the 180-month 
     period beginning with the month in which the corporation 
     begins business.
       ``(2) Aggregation rule.--For purposes of paragraph (1), all 
     persons which are treated as a single employer under 
     subsection (a) or (b) of section 52 shall be treated as a 
     single person.''
       (c) Treatment of Organizational and Syndication Fees or 
     Partnerships.--Section 709(b) (relating to amortization of 
     organization fees) is amended by redesignating paragraph (2) 
     as paragraph (4) and by amending paragraph (1) to read as 
     follows:
       ``(1) Allowance of deduction.--If a taxpayer elects the 
     application of this subsection (in accordance with 
     regulations prescribed by the Secretary) with respect to any 
     organizational expenses--
       ``(A) the taxpayer shall be allowed a deduction for the 
     taxable year in which the partnership begins business in an 
     amount equal to the lesser of--
       ``(i) the amount of organizational expenses with respect to 
     the partnership, or
       ``(ii) $5,000, reduced (but not below zero) by the amount 
     by which such organizational expenses exceed $50,000, and
       ``(B) the remainder of such organizational expenses shall 
     be allowed as a deduction ratably over the 180-month period 
     beginning with the month in which the partnership begins 
     business.
       ``(2) Dispositions before close of amortization period.--In 
     any case in which a partnership is liquidated before the end 
     of the period to which paragraph (1)(B) applies, any deferred 
     expenses attributable to the partnership which were not 
     allowed as a deduction by reason of this section may be 
     deducted to the extent allowable under section 165.
       ``(3) Aggregation rule.--For purposes of paragraph (1), all 
     persons which are treated as a single employer under 
     subsection (a) or (b) of section 52 shall be treated as a 
     single person.''
       (d) Conforming Amendment.--Subsection (b) of section 709 is 
     amended by striking ``Amortization'' and inserting 
     ``Deduction'' in the heading.
       (e) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.

     SEC. __64. EXTENSION OF HAZARDOUS SUBSTANCE SUPERFUND TAXES.

       (a) Extension of Taxes.--
       (1) Environmental tax.--Section 59A(e) is amended to read 
     as follows:
       ``(e) Application of Tax.--The tax imposed by this section 
     shall apply to taxable years beginning after December 31, 
     1986, and before January 1, 1996, and to taxable years 
     beginning after December 31, 1999, and before January 1, 
     2010.''
       (2) Excise taxes.--Section 4611(e) is amended to read as 
     follows:
       ``(e) Application of Hazardous Substance Superfund 
     Financing Rate.--The Hazardous Substance Superfund Financing 
     rate under this section shall apply after December 31, 1986, 
     and before January 1, 1996, and after the date of the 
     enactment of the Tax Extenders Act of 1999, and before 
     October 1, 2009.''
       (b) Effective Dates.--
       (1) Income tax.--The amendment made by subsection (a)(1) 
     shall apply to taxable years beginning after December 31, 
     1999.
       (2) Excise tax.--The amendment made by subsection (a)(2) 
     shall take effect on the date of the enactment of this Act.

     SEC. __65. DISALLOWANCE OF NONECONOMIC TAX ATTRIBUTES.

       (a) In General.--Section 7701 is amended by redesignating 
     subsection (m) as subsection (n) and by inserting after 
     subsection (l) the following new subsection:
       ``(m) Disallowance of Noneconomic Tax Attributes.--
       ``(1) In general.--In determining liability for any tax 
     under subtitle A, noneconomic tax attributes shall not be 
     allowed.
       ``(2) Noneconomic tax attribute.--For purposes of this 
     subsection, a noneconomic tax attribute is any deduction, 
     loss, or credit claimed to result from any transaction 
     unless--
       ``(A) the transaction changes in a meaningful way (apart 
     from Federal income tax consequences) the taxpayer's economic 
     position, and
       ``(B)(i) the present value of the reasonably expected 
     potential income from the transaction (and the taxpayer's 
     risk of loss from the transaction) are substantial in 
     relationship to the present value of the tax benefits 
     claimed, or
       ``(ii) in the case of a transaction which is in substance 
     the borrowing of money or the acquisition of financial 
     capital, the deductions claimed with respect to the 
     transaction for any period are not significantly in excess of 
     the economic return for such period realized by the person 
     lending the money or providing the financial capital.
       ``(3) Presumption of noneconomic tax attributes.--For 
     purposes of paragraph (2), the following factors shall give 
     rise to a presumption that a transaction fails to meet the 
     requirements of paragraph (2):
       ``(A) The fact that the payments, liabilities, or assets 
     that purport to create a loss (or other benefit) for tax 
     purposes are not reflected to any meaningful extent on the 
     taxpayer's books and records for financial reporting 
     purposes.
       ``(B) The fact that the transaction results in an 
     allocation of income or gain to a tax-indifferent party which 
     is substantially in excess of such party's economic income or 
     gain from the transaction.
       ``(4) Treatment of built-in loss.--The determination of 
     whether a transaction results in the realization of a built-
     in loss shall be made under subtitle A as if this subsection 
     had not been enacted. For purposes of the preceding sentence, 
     the term `built-in loss' means any loss or deduction to the 
     extent that such loss or deduction had economically been 
     incurred before such transaction is entered into and to the 
     extent that the loss or deduction was economically borne by 
     the taxpayer.
       ``(5) Definition and special rules.--For purposes of this 
     subsection--
       ``(A) Tax-indifferent party.--The term `tax-indifferent 
     party' means any person or entity exempt from tax under 
     subtitle A. A person shall be treated as a tax-indifferent 
     party with respect to a transaction if, by reason of such 
     person's method of accounting, the items taken into account 
     with respect to the transaction have no substantial impact on 
     such person's liability under subtitle A.
       ``(B) Series of related transaction.--A transaction which 
     is part of a series of related transactions shall be treated 
     as meeting the requirements of paragraph (2) only if--
       ``(i) such transaction meets such requirements without 
     regard to the other transactions, and
       ``(ii) such transactions, if treated as 1 transaction, 
     would meet such requirements.
     A similar rule shall apply to a multiple step transaction 
     with each step being treated as a separate related 
     transaction.
       ``(C) Normal business transactions.--In the case of a 
     transaction which is an integral part of a taxpayer's trade 
     or business and which is entered into in the normal course of 
     such trade or business, the determination of the potential 
     income from such transaction shall be made by taking into 
     account its relationship to the overall trade or business of 
     the taxpayer.
       ``(D) Treatment of fees.--In determining whether there is 
     risk of loss from a transaction (and the amount thereof), 
     potential loss of fees and other transaction expenses shall 
     be disregarded.
       ``(E) Treatment of economic return enhancements.--The 
     following shall be treated as economic returns and not tax 
     benefits:
       ``(i) The credit under section 29 (relating to credit for 
     producing fuel from a nonconventional source).
       ``(ii) The credit under section 42 (relating to low-income 
     housing credit).
       ``(iii) The credit under section 45 (relating to 
     electricity produced from certain renewable resources).
       ``(iv) The credit under section 1397E (relating to credit 
     to holders of qualified zone academy bonds) or any similar 
     program hereafter enacted.
       ``(v) Any other tax benefit specified in regulations.
       ``(F) Exceptions for nonbusiness transactions.--
       ``(i) Individuals.--In the case of an individual, this 
     subsection shall only apply to transactions entered into in 
     connection with a trade or business or activity engaged in 
     for profit.
       ``(ii) Charitable transfers.--This subsection shall not 
     apply in determining the amount allowable as a deduction 
     under section 170, 545(b)(2), 556(b)(2), or 642(c).
       ``(6) Economic substance doctrine, etc., not affected.--The 
     provisions of this subsection shall not be construed as 
     altering or supplanting any rule of law referred to in 
     section 6662(i)(2)(B) and the requirements of this subsection 
     shall be construed as being in addition to any such rule of 
     law.''
       (b) Increase in Substantial Underpayment Penalty With 
     Respect to Disallowed Noneconomic Tax Attributes.--Section 
     6662 (relating to imposition of accuracy-related penalty) is 
     amended by adding at the end the following new subsection:
       ``(i) Increase in Penalty in Case of Disallowed Noneconomic 
     Tax Attributes.--
       ``(1) In general.--In the case of the portion of the 
     underpayment to which this subsection applies--
       ``(A) subsection (a) shall be applied with respect to such 
     portion by substituting `40 percent' for `20 percent', and
       ``(B) subsection (d)(2)(B) and section 6664(c) shall not 
     apply.
       ``(2) Underpayments to which subsection applies.--This 
     subsection shall apply to an underpayment to which this 
     section applies by reason of paragraph (1) or (2) of 
     subsection (b) to the extent that such underpayment is 
     attributable to--
       ``(A) the disallowance of any noneconomic tax attribute 
     (determined under section 7701(m)), or

[[Page 28814]]

       ``(B) the disallowance of any other benefit--
       ``(i) because of a lack of economic substance or business 
     purpose for the transaction giving rise to the claimed 
     benefit,
       ``(ii) because the form of the transaction did not reflect 
     its substance, or
       ``(iii) because of any other similar rule of law.
       ``(3) Increase in penalty not to apply if compliance with 
     disclosure requirements.--Paragraph (1)(A) shall not apply if 
     the taxpayer--
       ``(A) discloses to the Secretary within 30 days after the 
     closing of the transaction appropriate documents describing 
     the transaction, and
       ``(B) files with the taxpayer's return of tax imposed by 
     subtitle A--
       ``(i) a statement verifying that such disclosure has been 
     made,
       ``(ii) a detailed description of the facts, assumptions of 
     facts, and factual conclusions with respect to the business 
     or economic purposes or objectives of the transaction that 
     are relied upon to support the manner in which it is reported 
     on the return,
       ``(iii) a description of the due diligence performed to 
     ascertain the accuracy of such facts, assumptions, and 
     factual conclusions,
       ``(iv)(I) a statement (signed by the senior financial 
     officer of the corporation under penalty of perjury) that the 
     facts, assumptions, or factual conclusions relied upon in 
     reporting the transaction are true and correct as of the date 
     the return is filed, to the best of such officer's knowledge 
     and belief, and
       ``(II) if the actual facts varied materially from the 
     facts, assumptions, or factual conclusions relied upon, a 
     statement describing such variances,
       ``(v) copies of any written material provided in connection 
     with the offer of the transaction to the taxpayer by a third 
     party,
       ``(vi) a full description of any express or implied 
     agreement or arrangement with any advisor, or with any 
     offeror, that the fee payable to such person would be 
     contingent or subject to possible reimbursement, and
       ``(vii) a full description of any express or implied 
     warranty from any person with respect to the anticipated tax 
     results from the transaction.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to transactions after the date of the enactment 
     of this Act.
                                 ______
                                 

               WELLSTONE (AND OTHERS) AMENDMENT NO. 2752

  (Ordered to lie on the table.)
  Mr. WELLSTONE (for himself, Mr. Daschle, Mr. Dorgan, and Mr. Harkin) 
submitted an amendment intended to be proposed by them to the bill, S. 
625, supra; as follows:

       At the end insert the following:

DIVISION 2--AGRIBUSINESS MERGER MORATORIUM AND ANTITRUST REVIEW ACT OF 
                                  1999

     SEC. __1. SHORT TITLE.

       This division may be cited as the ``Agribusiness Merger 
     Moratorium and Antitrust Review Act of 1999''.

     SEC. __2. FINDINGS.

       Congress finds the following:
       (1) Concentration in the agricultural economy including 
     mergers, acquisitions, and other combinations and alliances 
     among suppliers, producers, packers, other food processors, 
     and distributors has been accelerating at a rapid pace in the 
     1990's.
       (2) The trend toward greater concentration in agriculture 
     has important and far-reaching implications not only for 
     family-based farmers, but also for the food we eat, the 
     communities we live in, and the integrity of the natural 
     environment upon which we all depend.
       (3) In the past decade and a half, the top 4 largest pork 
     packers have seized control of some 57 percent of the market, 
     up from 36 percent. Over the same period, the top 4 beef 
     packers have expanded their market share from 32 percent to 
     80 percent, the top 4 flour millers have increased their 
     market share from 40 percent to 62 percent, and the market 
     share of the top 4 soybean crushers has jumped from 54 
     percent to 80 percent.
       (4) Today the top 4 sheep, poultry, wet corn, and dry corn 
     processors now control 73 percent, 55 percent, 74 percent, 
     and 57 percent of the market, respectively.
       (5) A handful of firms dominate the processing of every 
     major commodity. Many of them are vertically integrated, 
     which means that they control successive stages of the food 
     chain, from inputs to production to distribution.
       (6) Growing concentration of the agricultural sector has 
     restricted choices for farmers trying to sell their products. 
     As the bargaining power of agribusiness firms over farmers 
     increases, agricultural commodity markets are becoming 
     stacked against the farmer.
       (7) The farmer's share of every retail dollar has plummeted 
     from around 50 percent in 1952, to less than 25 percent 
     today, while the profit share for farm input, marketing, and 
     processing companies has risen.
       (8) While agribusiness conglomerates are posting record 
     earnings, farmers are facing desperate times. The commodity 
     price index is the lowest since 1987. Hog prices are at their 
     lowest since 1972. Cotton and soybean prices are the lowest 
     they have been since the early 1970's.
       (9) The benefits of low commodity prices are not being 
     passed on to American consumers. The gap between what 
     shoppers pay for food and what farmers are paid is growing 
     wider. From 1984 to 1998, prices paid to farmers fell 36 
     percent, while consumer food prices actually increased by 3 
     percent.
       (10) Concentration, low prices, anticompetitive practices, 
     and other manipulations and abuses of the agricultural 
     economy are driving family-based farmers out of business. 
     Farmers are going bankrupt or giving up, and few are taking 
     their places; more farm families are having to rely on other 
     jobs to stay afloat; and the number of farmers leaving the 
     land will continue to increase unless and until these trends 
     are reversed.
       (11) The decline of family-based agriculture undermines the 
     economies of rural communities across America; it has pushed 
     Main Street businesses, from equipment suppliers to insurance 
     sales people, out of business or to the brink of insolvency.
       (12) Increased concentration in the agribusiness sector has 
     a harmful effect on the environment; corporate hog farming, 
     for example, threatens the integrity of local water supplies 
     and creates noxious odors in neighboring communities. 
     Concentration also can increase the risks to food safety and 
     limit the biodiversity of plants and animals.
       (13) The decline of family-based farming poses a direct 
     threat to American families and family values, by subjecting 
     farm families to turmoil and stress.
       (14) The decline of family-based farming causes the demise 
     of rural communities, as stores lose customers, churches lose 
     congregations, schools and clinics become under-used, career 
     opportunities for young people dry up, and local inequalities 
     of wealth and income grow wider.
       (15) These developments are not the result of inevitable 
     market forces. They are the consequence of policies made in 
     Washington, including farm, antitrust, and trade policies.
       (16) To restore competition in the agricultural economy, 
     and to increase the bargaining power and enhance economic 
     prospects for family-based farmers, the trend toward 
     concentration must be reversed.

     SEC. __3. DEFINITIONS.

       In this division:
       (1) Agricultural input supplier.--The term ``agricultural 
     input supplier'' means any person (excluding agricultural 
     cooperatives) engaged in the business of selling, in 
     interstate or foreign commerce, any product to be used as an 
     input (including seed, germ plasm, hormones, antibiotics, 
     fertilizer, and chemicals, but excluding farm machinery) for 
     the production of any agricultural commodity, except that no 
     person shall be considered an agricultural input supplier if 
     sales of such products are for a value less than $10,000,000 
     per year.
       (2) Broker.--The term ``broker'' means any person 
     (excluding agricultural cooperatives) engaged in the business 
     of negotiating sales and purchases of any agricultural 
     commodity in interstate or foreign commerce for or on behalf 
     of the vendor or the purchaser, except that no person shall 
     be considered a broker if the only sales of such commodities 
     are for a value less than $10,000,000 per year.
       (3) Commission merchant.--The term ``commission merchant'' 
     means any person (excluding agricultural cooperatives) 
     engaged in the business of receiving in interstate or foreign 
     commerce any agricultural commodity for sale, on commission, 
     or for or on behalf of another, except that no person shall 
     be considered a commission merchant if the only sales of such 
     commodities are for a value less than $10,000,000 per year.
       (4) Dealer.--The term ``dealer'' means any person 
     (excluding agricultural cooperatives) engaged in the business 
     of buying, selling, or marketing agricultural commodities in 
     interstate or foreign commerce, except that--
       (A) no person shall be considered a dealer with respect to 
     sales or marketing of any agricultural commodity of that 
     person's own raising; and
       (B) no person shall be considered a dealer if the only 
     sales of such commodities are for a value less than 
     $10,000,000 per year.
       (5) Processor.--The term ``processor'' means any person 
     (excluding agricultural cooperatives) engaged in the business 
     of handling, preparing, or manufacturing (including 
     slaughtering) of an agricultural commodity, or the products 
     of such agricultural commodity, for sale or marketing for 
     human consumption, except that no person shall be considered 
     a processor if the only sales of such products are for a 
     value less than $10,000,000 per year.

           TITLE I--MORATORIUM ON LARGE AGRIBUSINESS MERGERS

     SEC. 101. MORATORIUM ON LARGE AGRIBUSINESS MERGERS.

       (a) In General.--
       (1) Moratorium.--Until the date referred to in paragraph 
     (2) and except as provided in subsection (b)--
       (A) no dealer, processor, commission merchant, agricultural 
     input supplier, broker, or operator of a warehouse of 
     agricultural commodities with annual net sales or total 
     assets of more than $100,000,000 shall merge or

[[Page 28815]]

     acquire, directly or indirectly, any voting securities or 
     assets of any other dealer, processor, commission merchant, 
     agricultural input supplier, broker, or operator of a 
     warehouse of agricultural commodities with annual net sales 
     or total assets of more than $10,000,000; and
       (B) no dealer, processor, commission merchant, agricultural 
     input supplier, broker, or operator of a warehouse of 
     agricultural commodities with annual net sales or total 
     assets of more than $10,000,000 shall merge or acquire, 
     directly or indirectly, any voting securities or assets of 
     any other dealer, processor, commission merchant, 
     agricultural input supplier, broker, or operator of a 
     warehouse of agricultural commodities with annual net sales 
     or total assets of more than $100,000,000 if the acquiring 
     person would hold--
       (i) 15 percent or more of the voting securities or assets 
     of the acquired person; or
       (ii) an aggregate total amount of the voting securities and 
     assets of the acquired person in excess of $15,000,000.
       (2) Date.--The date referred to in this paragraph is the 
     earlier of--
       (A) the effective date of comprehensive legislation--
       (i) addressing the problem of market concentration in the 
     agricultural sector; and
       (ii) containing a section stating that the legislation is 
     comprehensive legislation as provided in section 101 of the 
     Agribusiness Merger Moratorium and Antitrust Review Act of 
     1999; or
       (B) the date that is 18 months after the date of enactment 
     of this division.
       (3) Exemptions.--The following classes of transactions are 
     exempt from the requirements of this section--
       (1) acquisitions of goods or realty transferred in the 
     ordinary course of business;
       (2) acquisitions of bonds, mortgages, deeds of trust, or 
     other obligations which are not voting securities;
       (3) acquisitions of voting securities of an issuer at least 
     50 per centum of the voting securities of which are owned by 
     the acquiring person prior to such acquisition;
       (4) transfers to or from a Federal agency or a State or 
     political subdivision thereof; and
       (5) acquisitions of voting securities, if, as a result of 
     such acquisition, the voting securities acquired do not 
     increase, directly or indirectly, the acquiring person's per 
     centum share of outstanding voting securities of the issuer.
       (b) Waiver Authority.--The Attorney General shall have 
     authority to waive the moratorium imposed by subsection (a) 
     only under extraordinary circumstances, such as insolvency or 
     similar financial distress of 1 of the affected parties.

 TITLE II--AGRICULTURE CONCENTRATION AND MARKET POWER REVIEW COMMISSION

     SEC. 201. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is established a commission to be 
     known as the Agriculture Concentration and Market Power 
     Review Commission (hereafter in this title referred to as the 
     ``Commission'').
       (b) Purposes.--The purpose of the Commission is to--
       (1) study the nature and consequences of concentration in 
     America's agricultural economy; and
       (2) make recommendations on how to change underlying 
     antitrust laws and other Federal laws and regulations to keep 
     a fair and competitive agriculture marketplace for family 
     farmers, other small and medium sized agriculture producers, 
     generally, and the communities of which they are a part.
       (c) Membership of Commission.--
       (1) Composition.--The Commission shall be composed of 12 
     members as follows:
       (A) Three persons, one of whom shall be a person currently 
     engaged in farming or ranching, shall be appointed by the 
     President pro tempore of the Senate upon the recommendation 
     of the Majority Leader of the Senate, after consultation with 
     the Chairman of the Committee on Agriculture, Nutrition, and 
     Forestry.
       (B) Three persons, one of whom shall be a person currently 
     engaged in farming or ranching, shall be appointed by the 
     President pro tempore of the Senate upon the recommendation 
     of the Minority Leader of the Senate, after consultation with 
     the ranking minority member of the Committee on Agriculture, 
     Nutrition, and Forestry.
       (C) Three persons, one of whom shall be a person currently 
     engaged in farming or ranching, shall be appointed by the 
     Speaker of the House of Representatives, after consultation 
     with the Chairman of the Committee on Agriculture.
       (D) Three persons, one of whom shall be a person currently 
     engaged in farming or ranching, shall be appointed by the 
     Minority Leader of the House of Representatives, after 
     consultation with the ranking minority member of the 
     Committee on Agriculture.
       (2) Qualifications of members.--
       (A) Appointments.--Persons who are appointed under 
     paragraph (1) shall be persons who--
       (i) have experience in farming or ranching, expertise in 
     agricultural economics and antitrust, or have other pertinent 
     qualifications or experience relating to agriculture and 
     agriculture industries; and
       (ii) are not officers or employees of the United States.
       (B) Other consideration.--In appointing Commission members, 
     every effort shall be made to ensure that the members--
       (i) are representative of a broad cross sector of 
     agriculture and antitrust perspectives within the United 
     States; and
       (ii) provide fresh insights to analyzing the causes and 
     impacts of concentration in agriculture industries and 
     sectors.
       (d) Period of Appointment; Vacancies.--
       (1) In general.--Members shall be appointed not later than 
     60 days after the date of enactment of this division and the 
     appointment shall be for the life of the Commission.
       (2) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (e) Initial Meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold its first meeting.
       (f) Meetings.--The Commission shall meet at the call of the 
     Chairperson.
       (g) Chairperson and Vice Chairperson.--The members of the 
     Commission shall elect a chairperson and vice chairperson 
     from among the members of the Commission.
       (h) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum for the transaction of business.
       (i) Voting.--Each member of the Commission shall be 
     entitled to 1 vote, which shall be equal to the vote of every 
     other member of the Commission.

     SEC. 202. DUTIES OF THE COMMISSION.

       (a) In General.--The Commission shall be responsible for 
     examining the nature, the causes, and consequences 
     concentration in America's agricultural economy in the 
     broadest possible terms.
       (b) Issues To Be Addressed.--The study shall include an 
     examination of the following matters:
       (1) The nature and extent of concentration in the 
     agricultural sector, including food production, 
     transportation, processing, distribution and marketing, and 
     farm inputs such as machinery, fertilizer, and seeds.
       (2) Current trends in concentration of the agricultural 
     sector and what this sector is likely to look like in the 
     near and longer term future.
       (3) The effect of this concentration on farmer income.
       (4) The impacts of this concentration upon rural 
     communities, rural economic development, and the natural 
     environment.
       (5) The impacts of this concentration upon food shoppers, 
     including the reasons that Depression-level farm prices have 
     not resulted in corresponding drops in supermarket prices.
       (6) The productivity of family-based farm units, compared 
     with corporate based agriculture, and whether farming is 
     approaching a scale that is larger than necessary from the 
     standpoint of productivity.
       (7) The effect of current laws and administrative practices 
     in supporting and encouraging this concentration.
       (8) Whether the existing antitrust laws provide adequate 
     safeguards against, and remedies for, the impacts of 
     concentration upon family-based agriculture, the communities 
     they comprise, and the food shoppers of this Nation.
       (9) Accurate and reliable data on the national and 
     international markets shares of multinational agribusinesses, 
     and the portion of their sales attributable to exports.
       (10) Barriers that inhibit entry of new competitors into 
     markets for the processing of agricultural commodities, such 
     as the meat packing industry.
       (11) The extent to which developments, such as formula 
     pricing, marketing agreements, and forward contracting tend 
     to give processors, agribusinesses, and other buyers of 
     agricultural commodities additional market power over 
     producers and suppliers in local markets.
       (12) Such related matters as the Commission determines to 
     be important.

     SEC. 203. FINAL REPORT.

       (a) In General.--Not later than 12 months after the date of 
     the initial meeting of the Commission, the Commission shall 
     submit to the President and Congress a final report which 
     contains--
       (1) the findings and conclusions of the Commission 
     described in section 202; and
       (2) recommendations for addressing the problems identified 
     as part of the Commission's analysis.
       (b) Separate Views.--Any member of the Commission may 
     submit additional findings and recommendations as part of the 
     final report.

     SEC. 204. POWERS OF COMMISSION.

       (a) Hearings.--The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission may find advisable to 
     fulfill the requirements of this title. The Commission shall 
     hold at least 1 or more hearings in Washington, D.C., and 4 
     in different agriculture regions of the United States.
       (b) Information From Federal Agencies.--The Commission may 
     secure directly from any Federal department or agency such 
     information as the Commission considers

[[Page 28816]]

     necessary to carry out the provisions of this title. Upon 
     request of the Chairperson of the Commission, the head of 
     such department or agency shall furnish such information to 
     the Commission.
       (c)  Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.

     SEC. 205. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the Commission 
     shall be compensated at a rate equal to the daily equivalent 
     of the annual rate of basic pay prescribed for level IV of 
     the Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in the performance of the duties 
     of the Commission.
       (b) Travel Expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (c) Staff.--
       (1) In general.--The Chairperson of the Commission may, 
     without regard to the civil service laws and regulations, 
     appoint and terminate an executive director and such other 
     additional personnel as may be necessary to enable the 
     Commission to perform its duties. The employment of an 
     executive director shall be subject to confirmation by the 
     Commission.
       (2) Compensation.--The Chairperson of the Commission may 
     fix the compensation of the executive director and other 
     personnel without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of title 5, United States Code, 
     relating to classification of positions and General Schedule 
     pay rates, except that the rate of pay for the executive 
     director and other personnel may not exceed the rate payable 
     for level V of the Executive Schedule under section 5316 of 
     such title.
       (d) Detail of Government Employees.--Any Federal Government 
     employee shall be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (e) Procurement of Temporary and Intermittent Services.--
     The Chairperson of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.

     SEC. 206. SUPPORT SERVICES.

       The Administrator of the General Services Administration 
     shall provide to the Commission on a reimbursable basis such 
     administrative support services as the Commission may 
     request.

     SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated $2,000,000 to the 
     Commission as required by this title to carry out the 
     provisions of this title.
                                 ______
                                 

                        DODD AMENDMENT NO. 2753

  (Ordered to lie on the table.)
  Mr. DODD submitted an amendment intended to be proposed by him to the 
bill, S. 625, supra; as follows:

       At the appropriate place, insert the following:

     SEC. __. CONSUMER CREDIT.

       (a) Enhanced Disclosures Under an Open End Consumer Credit 
     Plan.--Section 127(b) of the Truth in Lending Act (15 U.S.C. 
     1637(b)) is amended by adding at the end the following:
       ``(11)(A) Repayment information that would apply to the 
     outstanding balance of the consumer under the credit plan, 
     including--
       ``(i) the required minimum monthly payment on that balance, 
     represented as both a dollar figure and as a percentage of 
     that balance;
       ``(ii) the number of months (rounded to the nearest month) 
     that it would take to pay the entire amount of that balance, 
     if the consumer pays only the required minimum monthly 
     payments and if no further advances are made;
       ``(iii) the total cost to the consumer, including interest 
     and principal payments, of paying that balance in full, if 
     the consumer pays only the required minimum monthly payments 
     and if no further advances are made; and
       ``(iv) the monthly payment amount that would be required 
     for the consumer to eliminate the outstanding balance in 36 
     months if no further advances are made.
       ``(B)(i) Subject to clause (ii), in making the disclosures 
     under subparagraph (A) the creditor shall apply the interest 
     rate in effect on the date on which the disclosure is made 
     until the date on which the balance would be paid in full.
       ``(ii) If the interest rate in effect on the date on which 
     the disclosure is made is a temporary rate that will change 
     under a contractual provision applying an index or formula 
     for subsequent interest rate adjustment, the creditor shall 
     apply the interest rate in effect on the date on which the 
     disclosure is made for as long as that interest rate will 
     apply under that contractual provision, and then apply an 
     interest rate based on the index or formula in effect on the 
     applicable billing date.''.
       (b) Civil Liability.--Section 130(a) of the Truth in 
     Lending Act (15 U.S.C. 1640(a)) is amended, in the 
     undesignated paragraph following paragraph (4), by striking 
     the second sentence and inserting the following: ``In 
     connection with the disclosures referred to in subsections 
     (a) and (b) of section 127, a creditor shall have a liability 
     determined under paragraph (2) only for failing to comply 
     with the requirements of section 125, 127(a), or paragraph 
     (4), (5), (6), (7), (8), (9), (10), or (11) of section 
     127(b), or for failing to comply with disclosure requirements 
     under State law for any term or item that the Board has 
     determined to be substantially the same in meaning under 
     section 111(a)(2) as any of the terms or items referred to in 
     section 127(a), or paragraph (4), (5), (6), (7), (8), (9), 
     (10), or (11) of section 127(b).''.
                                 ______
                                 

                 DODD (AND KENNEDY) AMENDMENT NO. 2754

  (Ordered to lie on the table.)
  Mr. DODD (for himself and Mr. Kennedy) submitted an amendment 
intended to be proposed by them to the bill, S. 625, supra; as follows:

       At the appropriate place, insert the following:

     SEC. __. EXTENSIONS OF CREDIT TO UNDERAGE CONSUMERS.

       (a) In General.--Section 127(c) of the Truth in Lending Act 
     (15 U.S.C. 1637(c)) is amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following:
       ``(5) Applications from underage consumers.--
       ``(A) Prohibition on issuance.--No credit card may be 
     issued to, or open end credit plan established on behalf of, 
     a consumer who has not attained the age of 21 unless the 
     consumer has submitted a written application to the card 
     issuer that meets the requirements of subparagraph (B).
       ``(B) Application requirements.--An application to open a 
     credit card account by an individual who has not attained the 
     age of 21 as of the date of submission of the application 
     shall require--
       ``(i) the signature of the parent, legal guardian, or 
     spouse of the consumer, or any other individual having a 
     means to repay debts incurred by the consumer in connection 
     with the account, indicating joint liability for debts 
     incurred by the consumer in connection with the account 
     before the consumer has attained the age of 21; or
       ``(ii) submission by the consumer of financial information 
     indicating an independent means of repaying any obligation 
     arising from the proposed extension of credit in connection 
     with the account.''.
       (b) Regulatory Authority.--The Board of Governors of the 
     Federal Reserve System may issue such rules or publish such 
     model forms as it considers necessary to carry out section 
     127(c)(5) of the Truth in Lending Act, as amended by this 
     section.
                                 ______
                                 

                  FEINSTEIN AMENDMENTS NOS. 2755-2756

  (Ordered to lie on the table.)
  Mrs. FEINSTEIN submitted two amendments intended to be proposed by 
her to the bill, S. 625, supra; as follows:

                           Amendment No. 2755

       At the appropriate place, insert the following:

     SEC. __. ENCOURAGING CREDITWORTHINESS.

       (a) Sense of the Congress.--It is the sense of the Congress 
     that--
       (1) certain lenders may sometimes offer credit to consumers 
     indiscriminately, without taking steps to ensure that 
     consumers are capable of repaying the resulting debt, and in 
     a manner which may encourage certain consumers to accumulate 
     additional debt; and
       (2) resulting consumer debt may increasingly be a major 
     contributing factor to consumer insolvency.
       (b) Study Required.--The Board of Governors of the Federal 
     Reserve System (hereafter in this section referred to as the 
     ``Board'') shall conduct a study of--
       (1) consumer credit industry practices of soliciting and 
     extending credit--
       (A) indiscriminately;
       (B) without taking steps to ensure that consumers are 
     capable of repaying the resulting debt; and
       (C) in a manner that encourages consumers to accumulate 
     additional debt; and
       (2) the effects of such practices on consumer debt and 
     insolvency.
       (c) Report and Regulations.--Not later than 12 months after 
     the date of enactment of this Act, the Board--
       (1) shall make public a report on its findings with respect 
     to the indiscriminate solicitation and extension of credit by 
     the credit industry;

[[Page 28817]]

       (2) may issue regulations that would require additional 
     disclosures to consumers; and
       (3) may take any other actions, consistent with its 
     existing statutory authority, that the Board finds necessary 
     to ensure responsible industrywide practices and to prevent 
     resulting consumer debt and insolvency.
                                  ____


                           Amendment No. 2756

       At the appropriate place, insert the following:

     SEC. __. ENCOURAGING CREDITWORTHINESS.

       (a) Sense of the Congress.--It is the sense of the Congress 
     that--
       (1) certain lenders may sometimes offer credit to consumers 
     indiscriminately, without taking steps to ensure that 
     consumers are capable of repaying the resulting debt, and in 
     a manner which may encourage certain consumers to accumulate 
     additional debt; and
       (2) resulting consumer debt may increasingly be a major 
     contributing factor to consumer insolvency.
       (b) Study Required.--The Board of Governors of the Federal 
     Reserve System (hereafter in this section referred to as the 
     ``Board'') shall conduct a study of--
       (1) consumer credit industry practices of soliciting and 
     extending credit--
       (A) indiscriminately;
       (B) without taking steps to ensure that consumers are 
     capable of repaying the resulting debt; and
       (C) in a manner that encourages consumers to accumulate 
     additional debt; and
       (2) the effects of such practices on consumer debt and 
     insolvency.
       (c) Report and Regulations.--Not later than 12 months after 
     the date of enactment of this Act, the Board--
       (1) shall make public a report on its findings with respect 
     to the indiscriminate solicitation and extension of credit by 
     the credit industry;
       (2) may issue regulations that would require additional 
     disclosures to consumers; and
       (3) may take any other actions, consistent with its 
     existing statutory authority, that the Board finds necessary 
     to ensure responsible industrywide practices and to prevent 
     resulting consumer debt and insolvency.
                                 ______
                                 

              BROWNBACK (AND HUTCHISON) AMENDMENT NO. 2757

  (Ordered to lie on the table.)
  Mr. BROWNBACK (for himself and Mrs. Hutchison) submitted an amendment 
intended to be proposed by them to the bill, S. 625, supra; as follows:

       At the appropriate place in the bill, add the following:

     SEC. __. HOMESTEAD EXEMPTION OPT OUT AND PERSONS 65 OR OLDER.

       The provisions relating to a Federal homestead exemption 
     shall not apply to debtors if applicable State law provides 
     by statute that such provisions shall not apply to debtors 
     and shall not take effect in any State before the end of the 
     first regular session of the State legislature following the 
     date of enactment of this Act. The federal homestead 
     exemption shall not apply to debtors who are 65 years or 
     older.
                                 ______
                                 

                 ROTH (AND MOYNIHAN) AMENDMENT NO. 2758

  (Ordered to lie on the table.)
  Mr. ROTH (for himself and Mr. Moynihan) submitted an amendment 
intended to be proposed by them to the bill, S. 625, supra; as follows:

       Beginning on page 181, strike line 20 and all that follows 
     through page 203, line 17, and insert the following:

                  TITLE VII--BANKRUPTCY TAX PROVISIONS

     SEC. 701. TREATMENT OF CERTAIN LIENS.

       (a) Treatment of Certain Liens.--Section 724 of title 11, 
     United States Code, is amended--
       (1) in subsection (b), in the matter preceding paragraph 
     (1), by inserting ``(other than to the extent that there is a 
     properly perfected unavoidable tax lien arising in connection 
     with an ad valorem tax on real or personal property of the 
     estate)'' after ``under this title'';
       (2) in subsection (b)(2), by inserting ``(except that such 
     expenses, other than claims for wages, salaries, or 
     commissions which arise after the filing of a petition, shall 
     be limited to expenses incurred under chapter 7 of this title 
     and shall not include expenses incurred under chapter 11 of 
     this title)'' after ``507(a)(1)''; and
       (3) by adding at the end the following:
       ``(e) Before subordinating a tax lien on real or personal 
     property of the estate, the trustee shall--
       ``(1) exhaust the unencumbered assets of the estate; and
       ``(2) in a manner consistent with section 506(c), recover 
     from property securing an allowed secured claim the 
     reasonable, necessary costs and expenses of preserving or 
     disposing of that property.
       ``(f) Notwithstanding the exclusion of ad valorem tax liens 
     under this section and subject to the requirements of 
     subsection (e), the following may be paid from property of 
     the estate which secures a tax lien, or the proceeds of such 
     property:
       ``(1) Claims for wages, salaries, and commissions that are 
     entitled to priority under section 507(a)(4).
       ``(2) Claims for contributions to an employee benefit plan 
     entitled to priority under section 507(a)(5).''.
       (b) Determination of Tax Liability.--Section 505(a)(2) of 
     title 11, United States Code, is amended--
       (1) in subparagraph (A), by striking ``or'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(C) the amount or legality of any amount arising in 
     connection with an ad valorem tax on real or personal 
     property of the estate, if the applicable period for 
     contesting or redetermining that amount under any law (other 
     than a bankruptcy law) has expired.''.

     SEC. 702. TREATMENT OF FUEL TAX CLAIMS.

       Section 501 of title 11, United States Code, is amended by 
     adding at the end the following:
       ``(e) A claim arising from the liability of a debtor for 
     fuel use tax assessed consistent with the requirements of 
     section 31705 of title 49 may be filed by the base 
     jurisdiction designated pursuant to the International Fuel 
     Tax Agreement and, if so filed, shall be allowed as a single 
     claim.''.

     SEC. 703. NOTICE OF REQUEST FOR A DETERMINATION OF TAXES.

       Section 505(b) of title 11, United States Code, is 
     amended--
       (1) in the first sentence, by inserting ``at the address 
     and in the manner designated in paragraph (1)'' after 
     ``determination of such tax'';
       (2) by striking ``(1) upon payment'' and inserting ``(2)(A) 
     upon payment'';
       (3) by striking ``(A) such governmental unit'' and 
     inserting ``(i) such governmental unit'';
       (4) by striking ``(B) such governmental unit'' and 
     inserting ``(ii) such governmental unit'';
       (5) by striking ``(2) upon payment'' and inserting ``(B) 
     upon payment'';
       (6) by striking ``(3) upon payment'' and inserting ``(C) 
     upon payment'';
       (7) by striking ``(b)'' and inserting ``(2)''; and
       (8) by inserting before paragraph (2), as so designated, 
     the following:
       ``(b)(1)(A) The clerk of each district shall maintain a 
     listing under which a Federal, State, or local governmental 
     unit responsible for the collection of taxes within the 
     district may--
       ``(i) designate an address for service of requests under 
     this subsection; and
       ``(ii) describe where further information concerning 
     additional requirements for filing such requests may be 
     found.
       ``(B) If a governmental unit referred to in subparagraph 
     (A) does not designate an address and provide that address to 
     the clerk under that subparagraph, any request made under 
     this subsection may be served at the address for the filing 
     of a tax return or protest with the appropriate taxing 
     authority of that governmental unit.''.

     SEC. 704. RATE OF INTEREST ON TAX CLAIMS.

       (a) In General.--Subchapter I of chapter 5 of title 11, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 511. Rate of interest on tax claims

       ``(a) If any provision of this title requires the payment 
     of interest on a tax claim or the payment of interest to 
     enable a creditor to receive the present value of the allowed 
     amount of a tax claim, the rate of interest shall be the rate 
     shall be determined under applicable nonbankruptcy law.
       ``(b) In the case of taxes paid under a confirmed plan 
     under this title, the rate of interest shall be determined as 
     of the calendar month in which the plan is confirmed.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     5 of title 11, United States Code, is amended by inserting 
     after the item relating to section 510 the following:

``511. Rate of interest on tax claims.''.

     SEC. 705. PRIORITY OF TAX CLAIMS.

       Section 507(a)(8) of title 11, United States Code, is 
     amended--
       (1) in subparagraph (A)--
       (A) in the matter preceding clause (i), by inserting ``for 
     a taxable year ending on or before the date of filing of the 
     petition'' after ``gross receipts'';
       (B) in clause (i)--
       (i) by striking ``for a taxable year ending on or before 
     the date of filing of the petition''; and
       (ii) by inserting before the semicolon at the end, the 
     following: ``, plus any time during which the stay of 
     proceedings was in effect in a prior case under this title or 
     during which collection was precluded by the existence of 1 
     or more confirmed plans under this title, plus 90 days''; and
       (C) by striking clause (ii) and inserting the following:
       ``(ii) assessed within 240 days before the date of the 
     filing of the petition, exclusive of--

       ``(I) any time during which an offer in compromise with 
     respect to that tax was pending or in effect during that 240-
     day period, plus 30 days; and
       ``(II) any time during which a stay of proceedings against 
     collections was in effect in

[[Page 28818]]

     a prior case under this title during that 240-day period; 
     plus 90 days.''; and

       (2) by adding at the end the following:
       ``(H) An otherwise applicable time period specified in this 
     paragraph shall be suspended for--
       ``(i) any period during which a governmental unit is 
     prohibited under applicable nonbankruptcy law from collecting 
     a tax as a result of a request by the debtor for a hearing 
     and an appeal of any collection action taken or proposed 
     against the debtor; plus
       ``(ii) 90 days.''.

     SEC. 706. PRIORITY PROPERTY TAXES INCURRED.

       Section 507(a)(9)(B) of title 11, United States Code, is 
     amended by striking ``assessed'' and inserting ``incurred''.

     SEC. 707. NO DISCHARGE OF FRAUDULENT TAXES IN CHAPTER 13.

       Section 1328(a)(2) of title 11, United States Code, as 
     amended by sections 105, 213, and 314 of this Act, is amended 
     by inserting ``(1)(B), (1)(C),'' after ``paragraph''.

     SEC. 708. NO DISCHARGE OF FRAUDULENT TAXES IN CHAPTER 11.

       Section 1141(d) of title 11, United States Code, is amended 
     by adding at the end the following:
       ``(5) Notwithstanding paragraph (1), the confirmation of a 
     plan does not discharge a debtor that is a corporation from 
     any debt for a tax or customs duty with respect to which the 
     debtor--
       ``(A) made a fraudulent return; or
       ``(B) willfully attempted in any manner to evade or defeat 
     that tax or duty.''.

     SEC. 709. STAY OF TAX PROCEEDINGS LIMITED TO PREPETITION 
                   TAXES.

       Section 362(a)(8) of title 11, United States Code, is 
     amended by inserting ``, with respect to a tax liability for 
     a taxable period ending before the order for relief under 
     this title'' before the semicolon at the end.

     SEC. 710. PERIODIC PAYMENT OF TAXES IN CHAPTER 11 CASES.

       Section 1129(a)(9) of title 11, United States Code, is 
     amended--
       (1) in subparagraph (B), by striking ``and'' at the end;
       (2) in subparagraph (C), by striking ``deferred cash 
     payments, over a period not exceeding six years after the 
     date of assessment of such claim,'' and all that follows 
     through the end of the subparagraph, and inserting ``regular 
     installment payments in cash--
       ``(i) of a total value, as of the effective date of the 
     plan, equal to the allowed amount of such claim;
       ``(ii) with interest thereon calculated at the rate 
     provided in section 6621(a)(2) of the Internal Revenue Code 
     of 1986;
       ``(iii) over a period ending not later than 5 years after 
     the date of the entry of the order for relief under section 
     301, 302, or 303; and
       ``(iv) in a manner not less favorable than the most favored 
     nonpriority unsecured claim provided for in the plan (other 
     than cash payments made to a class of creditors under section 
     1122(b)); and''; and
       (3) by adding at the end the following:
       ``(D) with respect to a secured claim which would otherwise 
     meet the description of an unsecured claim of a governmental 
     unit under section 507(a)(8), but for the secured status of 
     that claim, the holder of that claim will receive on account 
     of that claim, cash payments, in the same manner and over the 
     same period, as prescribed in subparagraph (C).''.

     SEC. 711. AVOIDANCE OF STATUTORY TAX LIENS PROHIBITED.

       Section 545(2) of title 11, United States Code, is amended 
     by striking the semicolon at the end and inserting ``, except 
     in any case in which a purchaser is a purchaser described in 
     section 6323 of the Internal Revenue Code of 1986, or in any 
     other similar provision of State or local law;''.

     SEC. 712. PAYMENT OF TAXES IN THE CONDUCT OF BUSINESS.

       (a) Payment of Taxes Required.--Section 960 of title 28, 
     United States Code, is amended--
       (1) by inserting ``(a)'' before ``Any''; and
       (2) by adding at the end the following:
       ``(b) A tax under subsection (a) shall be paid on or before 
     the due date of the tax under applicable nonbankruptcy law, 
     unless--
       ``(1) the tax is a property tax secured by a lien against 
     property that is abandoned within a reasonable period of time 
     after the lien attaches by the trustee of a bankruptcy estate 
     under section 554 of title 11; or
       ``(2) payment of the tax is excused under a specific 
     provision of title 11.
       ``(c) In a case pending under chapter 7 of title 11, 
     payment of a tax may be deferred until final distribution is 
     made under section 726 of title 11, if--
       ``(1) the tax was not incurred by a trustee duly appointed 
     under chapter 7 of title 11; or
       ``(2) before the due date of the tax, an order of the court 
     makes a finding of probable insufficiency of funds of the 
     estate to pay in full the administrative expenses allowed 
     under section 503(b) of title 11 that have the same priority 
     in distribution under section 726(b) of title 11 as the 
     priority of that tax.''.
       (b) Payment of Ad Valorem Taxes Required.--Section 
     503(b)(1)(B)(i) of title 11, United States Code, is amended 
     by inserting ``whether secured or unsecured, including 
     property taxes for which liability is in rem, in personam, or 
     both,'' before ``except''.
       (c) Request for Payment of Administrative Expense Taxes 
     Eliminated.--Section 503(b)(1) of title 11, United States 
     Code, is amended--
       (1) in subparagraph (B), by striking ``and'' at the end;
       (2) in subparagraph (C), by adding ``and'' at the end; and
       (3) by adding at the end the following:
       ``(D) notwithstanding the requirements of subsection (a), a 
     governmental unit shall not be required to file a request for 
     the payment of an expense described in subparagraph (B) or 
     (C), as a condition of its being an allowed administrative 
     expense;''.
       (d) Payment of Taxes and Fees as Secured Claims.--Section 
     506 of title 11, United States Code, is amended--
       (1) in subsection (b), by inserting ``or State statute'' 
     after ``agreement''; and
       (2) in subsection (c), by inserting ``, including the 
     payment of all ad valorem property taxes with respect to the 
     property'' before the period at the end.

     SEC. 713. TARDILY FILED PRIORITY TAX CLAIMS.

       Section 726(a)(1) of title 11, United States Code, is 
     amended by striking ``before the date on which the trustee 
     commences distribution under this section;'' and inserting 
     the following: ``on or before the earlier of--
       ``(A) the date that is 10 days after the mailing to 
     creditors of the summary of the trustee's final report; or
       ``(B) the date on which the trustee commences final 
     distribution under this section;''.

     SEC. 714. INCOME TAX RETURNS PREPARED BY TAX AUTHORITIES.

       Section 523(a) of title 11, United States Code, is 
     amended--
       (1) in paragraph (1)(B)--
       (A) in the matter preceding clause (i), by inserting ``or 
     equivalent report or notice,'' after ``a return,'';
       (B) in clause (i)--
       (i) by inserting ``or given'' after ``filed''; and
       (ii) by striking ``or'' at the end; and
       (C) in clause (ii)--
       (i) by inserting ``or given'' after ``filed''; and
       (ii) by inserting ``, report, or notice'' after ``return''; 
     and
       (2) by adding at the end the following flush sentences: 
     ``For purposes of this subsection, the term `return' means a 
     return that satisfies the requirements of applicable 
     nonbankruptcy law (including applicable filing requirements). 
     Such term includes a return prepared pursuant to section 
     6020(a) of the Internal Revenue Code of 1986, or similar 
     State or local law, or a written stipulation to a judgment or 
     a final order entered by a nonbankruptcy tribunal, but does 
     not include a return made pursuant to section 6020(b) of the 
     Internal Revenue Code of 1986, or a similar State or local 
     law.''.

     SEC. 715. DISCHARGE OF THE ESTATE'S LIABILITY FOR UNPAID 
                   TAXES.

       The second sentence of section 505(b) of title 11, United 
     States Code, as amended by section 703 of this Act, is 
     amended by inserting ``the estate,'' after 
     ``misrepresentation,''.

     SEC. 716. REQUIREMENT TO FILE TAX RETURNS TO CONFIRM CHAPTER 
                   13 PLANS.

       (a) Filing of Prepetition Tax Returns Required for Plan 
     Confirmation.--Section 1325(a) of title 11, United States 
     Code, as amended by section 213 of this Act, is amended--
       (1) in paragraph (6), by striking ``and'' at the end;
       (2) in paragraph (7), by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after paragraph (7) the following:
       ``(8) if the debtor has filed all applicable Federal, 
     State, and local tax returns as required by section 1308.''.
       (b) Additional Time Permitted for Filing Tax Returns.--
       (1) In general.--Chapter 13 of title 11, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1308. Filing of prepetition tax returns

       ``(a) Not later than the day before the date on which the 
     meeting of the creditors is first scheduled to be held under 
     section 341(a), the debtor shall file with appropriate tax 
     authorities all tax returns for all taxable periods ending 
     during the 6-year period ending on the date of the filing of 
     the petition.
       ``(b)(1) Subject to paragraph (2), if the tax returns 
     required by subsection (a) have not been filed by the date on 
     which the meeting of creditors is first scheduled to be held 
     under section 341(a), the trustee may hold open that meeting 
     for a reasonable period of time to allow the debtor an 
     additional period of time to file any unfiled returns, but 
     such additional period of time shall not extend beyond--
       ``(A) for any return that is past due as of the date of the 
     filing of the petition, the date that is 120 days after the 
     date of that meeting; or
       ``(B) for any return that is not past due as of the date of 
     the filing of the petition, the later of--
       ``(i) the date that is 120 days after the date of that 
     meeting; or
       ``(ii) the date on which the return is due under the last 
     automatic extension of time for filing that return to which 
     the debtor is entitled, and for which request is timely

[[Page 28819]]

     made, in accordance with applicable nonbankruptcy law.
       ``(2) Upon notice and hearing, and order entered before the 
     tolling of any applicable filing period determined under this 
     subsection, if the debtor demonstrates by clear and 
     convincing evidence that the failure to file a return as 
     required under this subsection is attributable to 
     circumstances beyond the control of the debtor, the court may 
     extend the filing period established by the trustee under 
     this subsection for--
       ``(A) a period of not more than 30 days for returns 
     described in paragraph (1); and
       ``(B) a period not to extend after the applicable extended 
     due date for a return described in paragraph (2).
       ``(c) For purposes of this section, the term `return' 
     includes a return prepared pursuant to section 6020 (a) or 
     (b) of the Internal Revenue Code of 1986, or a similar State 
     or local law, or a written stipulation to a judgment or a 
     final order entered by a nonbankruptcy tribunal.''.
       (2) Conforming amendment.--The table of sections for 
     chapter 13 of title 11, United States Code, is amended by 
     inserting after the item relating to section 1307 the 
     following:

``1308. Filing of prepetition tax returns.''.

       (c) Dismissal or Conversion on Failure To Comply.--Section 
     1307 of title 11, United States Code, is amended--
       (1) by redesignating subsections (e) and (f) as subsections 
     (f) and (g), respectively; and
       (2) by inserting after subsection (d), the following:
       ``(e) Upon the failure of the debtor to file a tax return 
     under section 1308, on request of a party in interest or the 
     United States trustee and after notice and a hearing, the 
     court shall dismiss a case or convert a case under this 
     chapter to a case under chapter 7 of this title, whichever is 
     in the best interest of the creditors and the estate.''.
       (d) Timely Filed Claims.--Section 502(b)(9) of title 11, 
     United States Code, is amended by inserting before the period 
     at the end the following ``, and except that in a case under 
     chapter 13, a claim of a governmental unit for a tax with 
     respect to a return filed under section 1308 shall be timely 
     if the claim is filed on or before the date that is 60 days 
     after the date on which such return was filed as required''.
       (e) Rules for Objections to Claims and to Confirmation.--It 
     is the sense of Congress that the Advisory Committee on 
     Bankruptcy Rules of the Judicial Conference should, as soon 
     as practicable after the date of enactment of this Act, 
     propose for adoption amended Federal Rules of Bankruptcy 
     Procedure which provide that--
       (1) notwithstanding the provisions of Rule 3015(f), in 
     cases under chapter 13 of title 11, United States Code, an 
     objection to the confirmation of a plan filed by a 
     governmental unit on or before the date that is 60 days after 
     the date on which the debtor files all tax returns required 
     under sections 1308 and 1325(a)(7) of title 11, United States 
     Code; and
       (2) in addition to the provisions of Rule 3007, in a case 
     under chapter 13 of title 11, United States Code, no 
     objection to a tax with respect to which a return is required 
     to be filed under section 1308 of title 11, United States 
     Code, shall be filed until such return has been filed as 
     required.

     SEC. 717. STANDARDS FOR TAX DISCLOSURE.

       Section 1125(a)(1) of title 11, United States Code, is 
     amended--
       (1) by inserting ``including a discussion of the potential 
     material Federal tax consequences of the plan to the debtor, 
     any successor to the debtor, and a hypothetical investor 
     typical of the holders of claims or interests in the case,'' 
     after ``records''; and
       (2) by striking ``a hypothetical reasonable investor 
     typical of holders of claims or interests'' and inserting 
     ``such a hypothetical investor''.

     SEC. 718. SETOFF OF TAX REFUNDS.

       Section 362(b) of title 11, United States Code, as amended 
     by section 402 of this Act, is amended--
       (1) in paragraph (25), by striking ``or'' at the end;
       (2) in paragraph (26), by striking the period at the end 
     and inserting ``; or''; and
       (3) by inserting after paragraph (26) the following:
       ``(27) under subsection (a), of the setoff under applicable 
     nonbankruptcy law of an income tax refund, by a governmental 
     unit, with respect to a taxable period that ended before the 
     order for relief against an income tax liability for a 
     taxable period that also ended before the order for relief, 
     except that in any case in which the setoff of an income tax 
     refund is not permitted under applicable nonbankruptcy law 
     because of a pending action to determine the amount or 
     legality of a tax liability, the governmental unit may hold 
     the refund pending the resolution of the action, unless the 
     court, upon motion of the trustee and after notice and 
     hearing, grants the taxing authority adequate protection 
     (within the meaning of section 361) for the secured claim of 
     that authority in the setoff under section 506(a).''.

     SEC. 719. SPECIAL PROVISIONS RELATED TO THE TREATMENT OF 
                   STATE AND LOCAL TAXES.

       (a) In General.--Section 346 of title 11, United States 
     Code, is amended to read as follows:

     ``SEC. 346. SPECIAL PROVISIONS RELATED TO THE TREATMENT OF 
                   STATE AND LOCAL TAXES.

       ``(a) Whenever the Internal Revenue Code of 1986 provides 
     that a separate taxable estate or entity is created in a case 
     concerning a debtor under this title, and the income, gain, 
     loss, deductions, and credits of such estate shall be taxed 
     to or claimed by the estate, a separate taxable estate is 
     also created for purposes of any State and local law imposing 
     a tax on or measured by income and such income, gain, loss, 
     deductions, and credits shall be taxed to or claimed by the 
     estate and may not be taxed to or claimed by the debtor. The 
     preceding sentence shall not apply if the case is dismissed. 
     The trustee shall make tax returns of income required under 
     any such State or local law.
       ``(b) Whenever the Internal Revenue Code of 1986 provides 
     that no separate taxable estate shall be created in a case 
     concerning a debtor under this title, and the income, gain, 
     loss, deductions, and credits of an estate shall be taxed to 
     or claimed by the debtor, such income, gain, loss, 
     deductions, and credits shall be taxed to or claimed by the 
     debtor under a State or local law imposing a tax on or 
     measured by income and may not be taxed to or claimed by the 
     estate. The trustee shall make such tax returns of income of 
     corporations and of partnerships as are required under any 
     State or local law, but with respect to partnerships, shall 
     make said returns only to the extent such returns are also 
     required to be made under such Code. The estate shall be 
     liable for any tax imposed on such corporation or 
     partnership, but not for any tax imposed on partners or 
     members.
       ``(c) With respect to a partnership or any entity treated 
     as a partnership under a State or local law imposing a tax on 
     or measured by income that is a debtor in a case under this 
     title, any gain or loss resulting from a distribution of 
     property from such partnership, or any distributive share of 
     any income, gain, loss, deduction, or credit of a partner or 
     member that is distributed, or considered distributed, from 
     such partnership, after the commencement of the case, is 
     gain, loss, income, deduction, or credit, as the case may be, 
     of the partner or member, and if such partner or member is a 
     debtor in a case under this title, shall be subject to tax in 
     accordance with subsection (a) or (b).
       ``(d) For purposes of any State or local law imposing a tax 
     on or measured by income, the taxable period of a debtor in a 
     case under this title shall terminate only if and to the 
     extent that the taxable period of such debtor terminates 
     under the Internal Revenue Code of 1986.
       ``(e) The estate in any case described in subsection (a) 
     shall use the same accounting method as the debtor used 
     immediately before the commencement of the case, if such 
     method of accounting complies with applicable nonbankruptcy 
     tax law.
       ``(f) For purposes of any State or local law imposing a tax 
     on or measured by income, a transfer of property from the 
     debtor to the estate or from the estate to the debtor shall 
     not be treated as a disposition for purposes of any provision 
     assigning tax consequences to a disposition, except to the 
     extent that such transfer is treated as a disposition under 
     the Internal Revenue Code of 1986.
       ``(g) Whenever a tax is imposed pursuant to a State or 
     local law imposing a tax on or measured by income pursuant to 
     subsection (a) or (b), such tax shall be imposed at rates 
     generally applicable to the same types of entities under such 
     State or local law.
       ``(h) The trustee shall withhold from any payment of claims 
     for wages, salaries, commissions, dividends, interest, or 
     other payments, or collect, any amount required to be 
     withheld or collected under applicable State or local tax 
     law, and shall pay such withheld or collected amount to the 
     appropriate governmental unit at the time and in the manner 
     required by such tax law, and with the same priority as the 
     claim from which such amount was withheld or collected was 
     paid.
       ``(i)(1) To the extent that any State or local law imposing 
     a tax on or measured by income provides for the carryover of 
     any tax attribute from one taxable period to a subsequent 
     taxable period, the estate shall succeed to such tax 
     attribute in any case in which such estate is subject to tax 
     under subsection (a).
       ``(2) After such a case is closed or dismissed, the debtor 
     shall succeed to any tax attribute to which the estate 
     succeeded under paragraph (1) to the extent consistent with 
     the Internal Revenue Code of 1986.
       ``(3) The estate may carry back any loss or tax attribute 
     to a taxable period of the debtor that ended before the order 
     for relief under this title to the extent that--
       ``(A) applicable State or local tax law provides for a 
     carryback in the case of the debtor; and
       ``(B) the same or a similar tax attribute may be carried 
     back by the estate to such a taxable period of the debtor 
     under the Internal Revenue Code of 1986.
       ``(j)(1) For purposes of any State or local law imposing a 
     tax on or measured by income, income is not realized by the 
     estate, the debtor, or a successor to the debtor by reason of 
     discharge of indebtedness in a case under this title, except 
     to the extent, if any, that such income is subject to tax 
     under the Internal Revenue Code of 1986.

[[Page 28820]]

       ``(2) Whenever the Internal Revenue Code of 1986 provides 
     that the amount excluded from gross income in respect of the 
     discharge of indebtedness in a case under this title shall be 
     applied to reduce the tax attributes of the debtor or the 
     estate, a similar reduction shall be made under any State or 
     local law imposing a tax on or measured by income to the 
     extent such State or local law recognizes such attributes. 
     Such State or local law may also provide for the reduction of 
     other attributes to the extent that the full amount of income 
     from the discharge of indebtedness has not been applied.
       ``(k)(1) Except as provided in this section and section 
     505, the time and manner of filing tax returns and the items 
     of income, gain, loss, deduction, and credit of any taxpayer 
     shall be determined under applicable nonbankruptcy law.
       ``(2) For Federal tax purposes, the provisions of this 
     section are subject to the Internal Revenue Code of 1986 and 
     other applicable Federal nonbankruptcy law.''.
       (b) Conforming Amendments.--
       (1) Section 728 of title 11, United States Code, is 
     repealed.
       (2) Section 1146 of title 11, United States Code, is 
     amended by striking subsections (a) and (b) and by 
     redesignating subsections (c) and (d) as subsections (a) and 
     (b), respectively.
       (3) Section 1231 of title 11, United States Code, is 
     amended by striking subsections (a) and (b) and by 
     redesignating subsections (c) and (d) as subsections (a) and 
     (b), respectively.

     SEC. 720. DISMISSAL FOR FAILURE TO TIMELY FILE TAX RETURNS.

       Section 521 of title 11, United States Code, as amended by 
     this Act, is amended by adding at the end the following:
       ``(k)(1) Notwithstanding any other provision of this title, 
     if the debtor fails to file a tax return that becomes due 
     after the commencement of the case or to properly obtain an 
     extension of the due date for filing such return, the taxing 
     authority may request that the court enter an order 
     converting or dismissing the case.
       ``(2) If the debtor does not file the required return or 
     obtain the extension referred to in paragraph (1) within 90 
     days after a request is filed by the taxing authority under 
     that paragraph, the court shall convert or dismiss the case, 
     whichever is in the best interests of creditors and the 
     estate.''.
       On page 268, line 13, strike ``1231(d)'' and insert 
     ``1231(b)''.
       On page 280, strike lines 16 through 19.
                                 ______
                                 

             SCHUMER (AND DURBIN) AMENDMENTS NOS. 2759-2760

  (Ordered to lie on the table.)
  Mr. SCHUMER (for himself and Mr. Durbin) submitted two amendments 
intended to be proposed by them to the bill, S. 625, supra; as follows:

                           Amendment No. 2759

       On page 7, line 15, strike ``(ii) The debtor's'' and insert 
     the following:
       ``(ii)(I) Subject to subclause (II), the debtor's''.
       On page 7, line 21, strike the period and insert the 
     following: ``, until such time as the Director of the 
     Executive Office for the United States Trustees issues 
     standards under section 586(f) of title 28, at which time the 
     debtor's monthly expenses shall be the applicable monthly 
     expenses under standards issued by the Director under section 
     586(f) of title 28, and the applicable monthly (excluding 
     payments for debts) expenses under standards (excluding the 
     national standards) issued by the Internal Revenue Service 
     for the area in which the debtor resides, as in effect on the 
     date of the entry of the order for relief, for the debtor, 
     the dependents of the debtor, and the spouse of the debtor in 
     a joint case, if the spouse is not otherwise a dependent.
       ``(II) In the case of a debtor who owns the debtor's 
     primary residence, the debtor's monthly expenses shall 
     include reasonably necessary costs of maintaining such 
     primary residence not included in subclause (I) of this 
     clause or clause (iii), including the reasonably necessary 
     costs of utilities, maintenance and repair, homeowners 
     insurance, and property taxes, until such time as the 
     Director of the Executive Office for the United States 
     Trustees issues standards under section 586(f) of title 28.
       On page 14, after the matter between lines 18 and 19, 
     insert the following:
       (d) Standards for Assessing Certain Expenses.--Section 586 
     of title 28, United States Code, is amended by adding at the 
     end the following:
       ``(f)(1) Not later than 1 year after the date of enactment 
     of this subsection, the Director of the Executive Office for 
     the United States Trustees, in consultation with the 
     Secretary of the Treasury, shall issue standards, specific 
     and appropriate to bankruptcy, for assessing the monthly 
     expenses of the debtor under section 707(b)(2) of title 11, 
     for--
       ``(A) the categories of expenses included under the 
     national standards issued by the Internal Revenue Service; 
     and
       ``(B) the categories of expenses related to maintaining a 
     primary residence not included in clause (ii)(I) or (iii) of 
     section 707(b)(2)(A) of title 11, including expenses for 
     utilities, maintenance and repair, homeowners insurance, and 
     property taxes, for a debtor who owns the debtor's primary 
     residence.
       ``(2) In issuing standards under paragraph (1), the 
     Director shall--
       ``(A) establish set expense amounts at levels that afford 
     debtors adequate and not excessive means to provide for basic 
     living expenses for the categories of expenses described in 
     paragraph (1); and
       ``(B) ensure that such set expense amounts account for, at 
     a minimum, regional variations in the cost of living and for 
     variations in family size.''.
       On page 169, line 11, strike ``(f)'' and insert ``(g)''.
       On page 169, line 13, strike ``(f)'' and insert ``(g)''.
       On page 172, line 7, strike ``(f)'' and insert ``(g)''.
       On page 172, line 13, strike ``(f)'' and insert ``(g)''.

                           Amendment No. 2760

       On page 7, line 15, strike ``(ii) The debtor's'' and insert 
     the following:
       ``(ii)(I) Subject to subclause (II), the debtor's''.
       On page 7, line 21, strike the period and insert the 
     following: ``, until such time as the Director of the 
     Executive Office for the United States Trustees issues 
     standards under section 586(f) of title 28, at which time the 
     debtor's monthly expenses shall be the applicable monthly 
     expenses under standards issued by the Director under section 
     586(f) of title 28, and the applicable monthly (excluding 
     payments for debts) expenses under standards (excluding the 
     national standards) issued by the Internal Revenue Service 
     for the area in which the debtor resides, as in effect on the 
     date of the entry of the order for relief, for the debtor, 
     the dependents of the debtor, and the spouse of the debtor in 
     a joint case, if the spouse is not otherwise a dependent.
       ``(II) In the case of a debtor who owns the debtor's 
     primary residence, the debtor's monthly expenses shall 
     include reasonably necessary costs of maintaining such 
     primary residence not included in subclause (I) of this 
     clause or clause (iii), including the reasonably necessary 
     costs of utilities, maintenance and repair, homeowners 
     insurance, and property taxes, until such time as the 
     Director of the Executive Office for the United States 
     Trustees issues standards under section 586(f) of title 28.
       On page 14, after the matter between lines 18 and 19, 
     insert the following:
       (d) Standards for Assessing Certain Expenses.--Section 586 
     of title 28, United States Code, is amended by adding at the 
     end the following:
       ``(f)(1) Not later than 1 year after the date of enactment 
     of this subsection, the Director of the Executive Office for 
     the United States Trustees, in consultation with the 
     Secretary of the Treasury, shall issue standards, specific 
     and appropriate to bankruptcy, for assessing the monthly 
     expenses of the debtor under section 707(b)(2) of title 11, 
     for--
       ``(A) the categories of expenses included under the 
     national standards issued by the Internal Revenue Service; 
     and
       ``(B) the categories of expenses related to maintaining a 
     primary residence not included in clause (ii)(I) or (iii) of 
     section 707(b)(2)(A) of title 11, including expenses for 
     utilities, maintenance and repair, homeowners insurance, and 
     property taxes, for a debtor who owns the debtor's primary 
     residence.
       ``(2) In issuing standards under paragraph (1), the 
     Director shall--
       ``(A) establish set expense amounts at levels that afford 
     debtors adequate and not excessive means to provide for basic 
     living expenses for the categories of expenses described in 
     paragraph (1); and
       ``(B) ensure that such set expense amounts account for, at 
     a minimum, regional variations in the cost of living and for 
     variations in family size.''.
       On page 169, line 11, strike ``(f)'' and insert ``(g)''.
       On page 169, line 13, strike ``(f)'' and insert ``(g)''.
       On page 172, line 7, strike ``(f)'' and insert ``(g)''.
       On page 172, line 13, strike ``(f)'' and insert ``(g)''.
                                 ______
                                 

                       SCHUMER AMENDMENT NO. 2761

  (Ordered to lie on the table.)
  Mr. SCHUMER submitted an amendment intended to be proposed by him to 
the bill, S. 625, supra; as follows:

       At the appropriate place, insert the following new section:

     SEC.  . TRUTH IN LENDING DISCLOSURES.

       Section 122(c) of the Truth in Lending Act (15 U.S.C. 
     1632(c)) is amended--
       (1) in paragraph (1), by striking the current text and 
     inserting the following:
       ``(1) In general.--The information described in paragraphs 
     (1), (3)(B)(i)(I), (4)(A), and (4)(C)(i)(I) of section 
     1637(c) of this title and the long-term annual percentage 
     rate for purchases shall--
       ``(A) subject to paragraphs (2) and (3) of this subsection, 
     be disclosed in the form and manner which the Board shall 
     prescribe by regulations; and
       ``(B) be placed in a conspicuous and prominent location on 
     or with any written application, solicitation, or other 
     document or

[[Page 28821]]

     paper with respect to which such disclosure is required.''

     For purposes of this subsection, the term ``long-term annual 
     percentage rate for purchases'' means the highest nondefault 
     annual percentage rate for purchases applicable to the credit 
     card account offered, solicited or advertised, calculated at 
     the time of mailing (in the case of an application or 
     solicitation described in paragraph (1) of section 1637(c) of 
     this title) or printing (in the case of an application or 
     solicitation described in paragraphs (3)(B) of section 
     1637(c) of this title), except that in the case of a credit 
     card account to which an introductory or temporary discounted 
     rate applies, the term ``long-term annual percentage rate for 
     purchases'' means the highest nondefault annual percentage 
     rate for purchases applicable to the credit card account to 
     which an introductory or temporary discounted rate applies, 
     the term ``long-term annual percentage rate for purchases'' 
     means the highest nondefeault annual percentage rate for 
     purchases applicable to the credit card account offered, 
     solicited or advertised that will apply after the expiration 
     of the introductory or temporary discounted rate, calculated 
     at the time of mailing (in the case of an application or 
     solicitation described in paragraph (1) of section 1637(c) of 
     this title) or printing (in the case of an application or 
     solicitation described in paragraphs (3)(B) of section 
     1637(c) of this title).''
       (2) in paragraph (2), by striking the current text and 
     inserting the following:
       ``(2) Tabular formats for credit card disclosures.--
       ``(A) The long-term annual percentage rate for purchases 
     shall be disclosed on or with a written application or 
     solicitation described in paragraphs (1) or (3)(B) of section 
     1637(c) of this title in 24-point or larger type and in the 
     form of a table which--
       ``(i) shall contain a clear and concise heading set forth 
     in the same type size as the long-term annual percentage rate 
     for purchases clearly and concisely;
       ``(ii) shall state the long-term annual percentage rate for 
     purchases clearly and concisely;
       ``(iii) where the long-term annual percentage rate for 
     purchases is based on a variable rate, shall use the term 
     `currently' to describe the long-term annual percentage rate 
     for purchases;
       ``(iv) where the long-term annual percentage rate for 
     purchases is not the only annual percentage rate applicable 
     to the credit card account offered, solicited or advertised, 
     shall include an asterisk placed immediately following the 
     long-term annual percentage rate for purchases; and
       ``(v) shall contain no other item of information.
       ``(B) The information described in paragraphs (1)(A)(ii), 
     (1)(A)(iii), (1)(A)(iv), (1)(B) and (3)(B)(i)(I) of section 
     1637(c) of this title shall be disclosed on or with a written 
     application or solicitation described in paragraph (1) of 
     section 1637(c) of this title or a written application or 
     solicitation as large as or larger than 8.5 inches in width 
     and 11 inches in length described in paragraph (3)(B) of 
     section 1637(c) of this title in 12-point type and in the 
     form of a table which--
       ``(i) shall appear separately from and immediately beneath 
     the table described in subparagraph (A) of this paragraph;
       ``(ii) shall contain clear and concise headings set forth 
     in 12-point type;
       ``(iii) shall provide a clear and concise form for stating 
     each item of information required to be disclosed under each 
     such heading; and
       ``(iv) may list the items required to be included in this 
     table in a different order than the order set forth in 
     paragraph (1) of section 1637 of this title, subject to the 
     approval of the Board.''
       ``(C) The information described in paragraphs (1)(A)(ii), 
     1(A)(iii), (1)(A)(iv), 1(B) and (3)(B)(i)(I) of section 
     1637(c) of this title shall be disclosed on or with a written 
     application or solicitation smaller than 8.5 inches in width 
     and 11 inches in length described in paragraph (3)(B) of 
     section 1637(c) of this title in 12-point type and shall--
       ``(i) be set forth separately from and immediately beneath 
     the table described in subparagraph (A) of this paragraph; 
     and
       ``(ii) not be disclosed in the form of a table.
       ``(D) Notwithstanding the inclusion of any of the 
     information described in paragraph (1)(A)(i) of section 
     1637(c) of this title in the table described in subparagraph 
     (A) of this paragraph, the information described in paragraph 
     (1)(A)(i) of section 1637(c) of this title shall be disclosed 
     on or with a written application or solicitation described in 
     paragraphs (1) or (3)(B) of section 1637(c) of this title and 
     shall--
       ``(i) be set forth in 12-point boldface type;
       ``(ii) be set forth separately from and immediately beneath 
     the table described in subparagraph (B) of this paragraph or 
     the information described in subparagraph (C) of this 
     paragraph, whichever is applicable;
       ``(iii) not be disclosed in the form of a table; and
       ``(iv) where the long-term annual percentage rate for 
     purchase is not the only annual percentage rate applicable to 
     the credit account offered, solicited or advertised, be 
     preceded by an asterisk set forth in 12-point boldface 
     type.''
       (3) by adding at the end the following:
       ``(3) Tabular format for charge card disclosures.--
       ``(A) In the regulations prescribed under paragraph (1)(A) 
     of this subsection, the Board shall require that the 
     disclosure of the information described in paragraphs (4)(A) 
     and (4)(C)(i)(I) of section 1637(c) of this title shall, to 
     the extent the Board determines to be practicable and 
     appropriate, be in the form of a table which--
       ``(i) contains clear and concise headings for each item of 
     such information; and
       ``(ii) provides a clear and concise form for stating each 
     item of information required to be disclosed under each such 
     heading.''
       ``(B) In prescribing the form of the table under 
     subparagraph (A) of this paragraph, the Board may--
       ``(i) list the items required to be included in the table 
     in a different order than the order set forth in paragraph 
     (4)(A) of section 1637(c) of this title; and
       ``(ii) employ terminology which is different than the 
     terminology which is employed in section 1637(c) of this 
     title if such terminology conveys substantially the same 
     meaning.''
                                 ______
                                 

                SCHUMER (AND DURBIN) AMENDMENT NO. 2762

  (Ordered to lie on the table.)
  Mr. SCHUMER (for himself and Mr. Dunkin) submitted an amendment 
intended to be proposed by them to the bill, S. 625, supra; as follows:

       On page 9, line 12, strike ``As part'' and insert ``Except 
     as provided under clause (ii), as part''.
       On page 9, insert between lines 17 and 18 the following:
       ``(ii) A debtor against whom a judge, United States 
     trustee, panel trustee, bankruptcy administrator, or other 
     party in interest may not, for the reason specified in 
     subparagraph (D), bring a motion alleging abuse of this 
     chapter based upon the presumption established by this 
     paragraph, shall not be required to include calculations that 
     determine whether a presumption arises under this paragraph 
     as part of the schedule of current income and expenditures 
     required under section 521.
       On page 9, line 18, strike ``(ii)'' and insert ``(iii)''.
       On page 9, insert between lines 21 and 22 the following:
       ``(D)(i) No judge, United States trustee, panel trustee, 
     bankruptcy administrator, or other party in interest shall 
     bring a motion alleging abuse of this chapter based upon the 
     presumption established by this paragraph, if the debtor and 
     the debtor's spouse combined, as of the date of the order for 
     relief, have current monthly total income equal to or less 
     than the national or applicable State median household 
     monthly income calculated (subject to clause (ii)) on a 
     semiannual basis for a household of equal size.
       ``(ii) For a household of more than 4 individuals, the 
     national or applicable State median household monthly income 
     shall be that of a household of 4 individuals, plus $583 for 
     each additional member of that household.
       On page 11, line 9, strike ``(A)'' and insert ``(A)(i) 
     except as provided under clause (ii),''.
       On page 11, insert between lines 14 and 15 the following:
       ``(ii) with respect to an individual debtor under this 
     chapter against whom a judge, United States trustee, panel 
     trustee, bankruptcy administrator, or other party in interest 
     may not, for the reason specified in section 707(b)(2)(D), 
     bring a motion alleging abuse of this chapter based upon the 
     presumption established by section 707(b)(2), the United 
     States trustee or bankruptcy administrator shall not be 
     required to file with the court a statement as to whether the 
     debtor's case would be presumed to be an abuse under section 
     707(b)(2); and
       On page 11, line 19, strike ``receiving'' and insert 
     ``filing''.
       On page 11, line 20, strike ``filed''.
       On page 14, strike lines 8 through 14 and insert the 
     following:
       ``(5)(A) Only the judge, United States trustee, bankruptcy 
     administrator, or panel trustee may bring a motion under 
     section 707(b), if the current monthly income of the debtor 
     and the debtor's spouse combined, as of the date of the order 
     for relief, when multiplied by 12, is equal to or less than--
       ``(i) the national or applicable State median household 
     income last reported by the Bureau of the Census for a 
     household of equal size, whichever is greater; or
       ``(ii) in the case of a household of 1 person, the national 
     or applicable State median household income last reported by 
     the Bureau of the Census for 1 earner, whichever is greater.
       ``(B) Notwithstanding subparagraph (A), the national or 
     applicable State median household income for a household of 
     more than 4 individuals shall be the national or applicable 
     State median household income last reported by the Bureau of 
     the Census for a household of 4 individuals, whichever is 
     greater, plus $6,996 for each additional member of that 
     household.''.
                                 ______
                                 

                SCHUMER (AND OTHERS) AMENDMENT NO. 2763

  (Ordered to lie on the table.)
  Mr. SCHUMER (for himself, Mrs. Feinstein, Mr. Leahy, Mrs. Murray,

[[Page 28822]]

Mr. Lautenberg, and Mr. Durbin) submitted an amendment intended to be 
proposed by them to the bill, S. 625, supra; as follows:

       On page 124, between lines 14 and 15, insert the following:

     SEC. 322. NONDISCHARGEABILITY OF DEBTS INCURRED THROUGH THE 
                   COMMISSION OF VIOLENCE AT CLINICS.

       Section 523(a) of title 11, United States Code, as amended 
     by section 224 of this Act, is amended--
       (1) in paragraph (18), by striking ``or'' at the end;
       (2) in paragraph (19)(B), by striking the period and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(20) that results from any judgment, order, consent 
     order, or decree entered in any Federal or State court, or 
     contained in any settlement agreement entered into by the 
     debtor, including any damages, fine, penalty, citation, or 
     attorney fee or cost owed by the debtor, arising from--
       ``(A) an actual or potential action under section 248 of 
     title 18;
       ``(B) an actual or potential action under any Federal, 
     State, or local law, the purpose of which is to protect--
       ``(i) access to a health care facility, including a 
     facility providing reproductive health services, as defined 
     in section 248(e) of title 18 (referred to in this paragraph 
     as a `health care facility'); or
       ``(ii) the provision of health services, including 
     reproductive health services (referred to in this paragraph 
     as `health services');
       ``(C) an actual or potential action alleging the violation 
     of any Federal, State, or local statutory or common law, 
     including chapter 96 of title 18 and the Federal civil rights 
     laws (including sections 1977 through 1980 of the Revised 
     Statutes) that results from the debtor's actual, attempted, 
     or alleged--
       ``(i) harassment of, intimidation of, interference with, 
     obstruction of, injury to, threat to, or violence against any 
     person--

       ``(I) because that person provides or has provided health 
     services;
       ``(II) because that person is or has been obtaining health 
     services; or
       ``(III) to deter that person, any other person, or a class 
     of persons from obtaining or providing health services; or

       ``(ii) damage or destruction of property of a health care 
     facility; or
       ``(D) an actual or alleged violation of a court order or 
     injunction that protects access to a health care facility or 
     the provision of health services.''.
                                 ______
                                 

                   SCHUMER AMENDMENTS NOS. 2764-2767

  (Ordered to lie on the table.)
  Mr. SCHUMER submitted four amendments intended to be proposed by him 
to the bill, S. 625, supra; as follows:

                           Amendment No. 2764

       On page 7, line 9, after ``reduced by'' insert ``estimated 
     administrative expenses and reasonable attorneys' fees, 
     and''.
       On page 7, strike line 24 through page 8, line 3, and 
     insert the following:

       ``(I) the sum of--

       ``(aa) the total of all amounts scheduled as contractually 
     due to secured creditors in each month of the 60 months 
     following the date of the petition; and
       ``(bb) any additional payments to secured creditors 
     necessary for the debtor, in filing a plan under chapter 13 
     of this title, to maintain possession of the debtor's 
     property that serves as collateral for secured debts; divided 
     by

       ``(II) 60.

       On page 9, line 6, after ``reduced by'' insert ``estimated 
     administrative expenses and reasonable attorneys' fees, 
     and''.
       On page 10, strike lines 12 and 13 and insert the 
     following:
       (1) in section 101--
       (A) by inserting after paragraph (10) the following:
       On page 11, insert between lines 2 and 3 the following:
       (B) by inserting after paragraph (17) the following:
       ``(17A) `estimated administrative expenses and reasonable 
     attorneys' fees' means 10 percent of projected payments under 
     a chapter 13 plan;'' and
                                  ____


                           Amendment No. 2765

       On page 7, line 15, strike ``(ii)'' and insert ``(ii)(I)''.
       On page 7, between lines 21 and 22, insert the following:
       ``(II) In addition, the debtor's monthly expenses shall 
     include the reasonably necessary monthly expenses incurred by 
     a debtor who is eligible to receive or is receiving payments 
     under State unemployment insurance laws, the Federal 
     dislocated workers assistance programs under title III of the 
     Job Training Partnership Act (29 U.S.C. 1501 et seq.) or the 
     successor Workforce Investment Act of 1998 (20 U.S.C. 9201 et 
     seq.), the trade adjustment assistance programs provided for 
     under title II of the Trade Act of 1974 (19 U.S.C. 2251 et 
     seq.), or State assistance programs for displaced or 
     dislocated workers and incurred for the purpose of obtaining 
     and maintaining employment.
                                  ____


                           Amendment No. 2766

       At the appropriate place, insert the following:

     SEC. __. DISCLOSURES RELATED TO ``INTRODUCTORY RATES''.

       Section 127(c) of the Truth in Lending Act (15 U.S.C. 
     1637(c)) is amended by adding at the end the following:
       ``(6) Additional notice concerning `introductory rates'.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an application or solicitation to open a credit card account 
     that offers a temporary annual percentage rate of interest, 
     either for which a disclosure is required under paragraph 
     (1), or which contains the items described in paragraph (1) 
     and is made available to the public or contained in catalogs, 
     magazines, or other publications, shall, along with all 
     promotional materials accompanying such application or 
     solicitation--
       ``(i) use the term `introductory' in immediate proximity to 
     each listing of the temporary annual percentage rate 
     applicable to such account, which term shall appear in the 
     same type size and type style used to state the temporary 
     annual percentage rate;
       ``(ii) if the annual percentage rate of interest that will 
     apply after the end of the temporary rate period will be a 
     fixed rate, state the following in a prominent location 
     immediately proximate to the most prominent listing of the 
     temporary annual percentage rate (other than a listing of the 
     temporary annual percentage rate in the tabular format 
     described in section 122(c)) on a document and in the same 
     type size and type style used to state the proximate 
     temporary annual percentage rate: the date on which the 
     introductory period will end and the annual percentage rate 
     that will apply after the end of the introductory period; and
       ``(iii) if the annual percentage rate that will apply after 
     the end of the temporary rate period will vary in accordance 
     with an index, state the following in a prominent location 
     immediately proximate to the most prominent listing of the 
     temporary annual percentage rate (other than a listing in the 
     tabular format prescribed by section 122(c)) on a document 
     and in the same type size and type style used to state the 
     proximate temporary annual percentage rate: the date on which 
     the introductory period will end and the annual percentage 
     rate that would apply if the introductory period ended on the 
     date on which the application or solicitation was printed.
       ``(B) Exception.--Clauses (ii) and (iii) of subparagraph 
     (A) do not apply with respect to any listing of a temporary 
     annual percentage rate on an envelope or other enclosure in 
     which an application or solicitation to open a credit card 
     account is mailed.
       ``(C) Conditions for introductory rates.--An application or 
     solicitation to open a credit card account for which a 
     disclosure is required under paragraph (1), and that offers a 
     temporary annual percentage rate of interest shall, if that 
     rate of interest is revocable under any circumstance or upon 
     any event, clearly and conspicuously disclose, in a prominent 
     manner on or with such application or solicitation--
       ``(i) any and all circumstances or events that may result 
     in the revocation of the temporary annual percentage rate; 
     and
       ``(ii) if the annual percentage rate that will apply upon 
     the revocation of the temporary annual percentage rate--

       ``(I) will be a fixed rate, the annual percentage rate that 
     will apply upon the revocation of the temporary annual 
     percentage rate; or
       ``(II) will vary in accordance with an index, the annual 
     percentage rate that would apply if the temporary annual 
     percentage rate was revoked on the date on which the 
     application or solicitation was printed.

       ``(D) Definitions.--In this paragraph--
       ``(i) the terms `temporary annual percentage rate of 
     interest' and `temporary annual percentage rate' mean any 
     rate of interest applicable to a credit card account for an 
     introductory period of less than 1 year, if that rate is less 
     than the annual percentage rate of interest that will apply 
     if the introductory period ended on the date on which the 
     application was printed; and
       ``(ii) the term `introductory period' means the maximum 
     time period for which the temporary annual percentage rate 
     may be applicable.
       ``(E) Relation to other disclosure requirements.--Nothing 
     in this paragraph may be construed to supersede any 
     disclosure required by paragraph (1) or any other provision 
     of this subsection.''.
                                  ____


                           Amendment No. 2767

       At the appropriate place, insert the following new section:

     SEC.   . TRUTH IN LENDING DISCLOSURES.

       Section 122(c) of the Truth in Lending Act (15 U.S.C. 
     1632(c)) is amended--
       (1) in paragraph (1), by striking the current text and 
     inserting the following:
       ``(1) In general.--The information described in paragraphs 
     (1), (3)(B)(i)(I), (4)(A), and (4)(C)(i)(I) of section 
     1637(c) of this title and the long-term annual percentage 
     rate for purchases shall--
       ``(A) subject to paragraph (2) and (3) of this subsection, 
     be disclosed in the form and

[[Page 28823]]

     manner which the Board shall prescribe by regulations; and
       ``(B) be placed in a conspicuous and prominent location on 
     or with any written application, solicitation, or other 
     document or paper with respect to which such disclosure is 
     required.''
       For purposes of this subsection, the term ``long-term 
     annual percentage rate for purchases'' means the highest 
     nondefault annual percentage rate for purchases applicable to 
     the credit card account offered, solicited or advertised, 
     calculated at the time of mailing (in the case of an 
     application or solicitation described in paragraph (1) of 
     section 1637(c) of this title) or printing (in the case of an 
     application or solicitation described in paragraphs (3)(B) of 
     section 1637(c) of this title), except that in the case of a 
     credit card account to which an introductory or temporary 
     discounted rate applies, the term ``long-term annual 
     percentage rate for purchases'' means the highest nondefault 
     annual percentage rate for purchases applicable to the credit 
     card account offered, solicited or advertised that will apply 
     after the expiration of the introductory or temporary 
     discounted rate, calculated at the time of mailing (in the 
     case of an application or solicitation described in paragraph 
     (1) of section 1637(c) of this title) or printing (in the 
     case of an application or solicitation described in 
     paragraphs (3)(B) of section 1637(c) of this title).''
       (2) in paragraph (2), by striking the current text and 
     inserting the following:
       ``(2) Tabular formats for credit card disclosures.--
       ``(A) The long-term annual percentage rate for purchases 
     shall be disclosed on or with a written application or 
     solitiation described in paragraphs (1) or (3)(B) of section 
     1637(c) of title in 24-point or larger type and in the form 
     of a table which--
       ``(i) shall contain a clear and concise heading set forth 
     in the same type size as the long-term annual percentage rate 
     for purchases;
       ``(i) shall state the long-term annual percentage rate for 
     purchases clearly and concisely;
       ``(iii) where the long-term annual percentage rate for 
     purchases is based on a variable rate, shall use the term 
     `currently' to describe the long-term annual percentage rate 
     for purchases;
       ``(iv) where the long-term annual percentage rate for 
     purchases is not the only annual percentage rate applicable 
     to the credit card account offered, solicited or advertised, 
     shall include an asterisk placed immediately following the 
     long-term annual percentage rate for purchases; and
       ``(v) shall contain no other item of information.
       ``(B) The information described in paragraphs (1)(A)(ii), 
     1(A)(iii), (1)(A)(iv), 1(B) and (3)(B)(i)(I) of section 
     1637(c) of this title shall be disclosed on or with a written 
     application or solicitation described in paragraphs (1) or 
     (3)(B) of section 1637(c) of this title in 12-point type and 
     in the form of a table which--
       ``(i) shall appear separately from and immediately beneath 
     the table described in subparagraph (A) of this paragraph;
       ``(ii) shall contain clear and concise headings set forth 
     in 12-point type;
       ``(iii) shall provide a clear and concise form for stating 
     each item of information required to be disclosed under each 
     such heading; and
       ``(iv) may list the items required to be included in this 
     table in a different order than the order set forth in 
     paragraph (1) of section 1637 of this title, subject to the 
     approval of the Board.''
       ``(C) Notwithstanding the inclusion of any of the 
     information described in paragraph (1)(A)(i) of section 
     1637(c) of this title in the table described in subparagraph 
     (A) of this paragraph, the information described in paragraph 
     (1)(A)(i) of section 1637(c) of this title shall be disclosed 
     on or with a written application or solicitation described in 
     paragraphs (1) or (3)(B) of section 1637(c) of this title and 
     shall--
       ``(i) be set forth in 12-point boldface type;
       ``(ii) be set forth separately from and immediately beneath 
     the table described in subparagraph (B) of this paragraph;
       ``(iii) not be disclosed in the form of a table; and
       ``(iv) where the long-term annual percentage rate for 
     purchases is not the only annual percentage rate applicable 
     to the credit card account offered, solicited or advertised, 
     be preceded by an asterisk set forth in 12-point boldface 
     type.''
       (3) by adding at the end the following:
       ``(3) Tabular format for charge card disclosures.--
       ``(A) In the regulations prescribed under paragraph (1)(A) 
     of this subsection, the Board shall require that the 
     disclosure of the information described in paragraphs (4)(A) 
     and (4)(C)(i)(I) of section 1637(c) of this title shall, to 
     the extent the Board determines to be practicable and 
     appropriate, be in the form of a table which--
       ``(i) contains clear and concise headings for each item of 
     such information; and
       ``(ii) provides a clear and concise form for stating each 
     item of information required to be disclosed under each such 
     heading.''
       ``(B) In prescribing the form of the table under 
     subparagraph (A) of this paragraph, the Board may--
       ``(i) list the items required to be included in the table 
     in a different order than the order set forth in paragraph 
     (4)(A) of section 1637(c) of this title; and
       ``(ii) employ terminology which is different than the 
     terminology which is employed in section 1637(c) of this 
     title if such terminology conveys substantially the same 
     meaning.''
                                 ______
                                 

                        LEVIN AMENDMENT NO. 2768

  (Ordered to lie on the table.)
  Mr. LEVIN submitted an amendment intended to be proposed by him to 
the bill, S. 625, supra; as follows:

       At the appropriate place, insert the following:

     SEC. __. PROHIBITION ON CERTAIN RETROACTIVE FINANCE CHARGES.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is 
     amended by adding at the end the following:
       ``(h) Prohibition on Retroactive Finance Charges.--
       ``(1) In general.--In the case of any credit card account 
     under an open end credit plan, if the creditor provides a 
     grace period applicable to any new extension of credit under 
     the account, no finance charge may be imposed subsequent to 
     the grace period with regard to any amount that was paid on 
     or before the end of that grace period.
       ``(2) Definition.--For purposes of this subsection, the 
     term `grace period' means a period during which the extension 
     of credit may be repaid, in whole or in part, without 
     incurring a finance charge for the extension of credit.''.
                                 ______
                                 

                        DODD AMENDMENT NO. 2769

  (Ordered to lie on the table.)
  Mr. DODD submitted an amendment intended to be proposed by him to the 
bill, S. 625, supra; as follows:

       On page 83, between lines 4 and 5, insert the following:

     SEC. 2__. PROTECTION OF EDUCATION SAVINGS.

       (a) Exclusions.--Section 541 of title 11, United States 
     Code, as amended by section 903, is amended--
       (1) in subsection (b)--
       (A) in paragraph (5), by striking ``or'' at the end;
       (B) by redesignating paragraph (6) as paragraph (8); and
       (C) by inserting after paragraph (5) the following:
       ``(6) funds placed in an education individual retirement 
     account (as defined in section 530(b)(1) of the Internal 
     Revenue code of 1986) not later than 365 days before the date 
     of filing of the petition, but--
       ``(A) only if the designated beneficiary of such account 
     was a son, daughter, stepson, stepdaughter, grandchild, or 
     step-grandchild of the debtor for the taxable year for which 
     funds were placed in such account;
       ``(B) only to the extent that such funds--
       ``(i) are not pledged or promised to any entity in 
     connection with any extension of credit; and
       ``(ii) are not excess contributions (as described in 
     section 4973(e) of the Internal Revenue Code of 1986); and
       ``(C) in the case of funds placed in all such accounts 
     having the same designated beneficiary not earlier than 720 
     days nor later than 365 days before such date, only so much 
     of such funds as does not exceed $5,000;
       ``(7) funds used to purchase a tuition credit or 
     certificate or contributed to an account in accordance with 
     section 529(b)(1)(A) of the Internal Revenue Code of 1986 
     under a qualified State tuition program (as defined in 
     section 529(b)(1) of such Code) not later than 365 days 
     before the date of filing of the petition, but--
       ``(A) only if the designated beneficiary of the amounts 
     paid or contributed to such tuition program was a son, 
     daughter, stepson, stepdaughter, grandchild, or step-
     grandchild of the debtor for the taxable year for which funds 
     were paid or contributed;
       ``(B) with respect to the aggregate amount paid or 
     contributed to such program having the same designated 
     beneficiary, only so much of such amount as does not exceed 
     the total contributions permitted under section 529(b)(7) of 
     such Code with respect to such beneficiary, as adjusted 
     beginning on the date of the filing of the petition by the 
     annual increase or decrease (rounded to the nearest tenth of 
     1 percent) in the education expenditure category of the 
     Consumer Price Index prepared by the Department of Labor; and
       ``(C) in the case of funds paid or contributed to such 
     program having the same designated beneficiary not earlier 
     than 720 days nor later than 365 days before such date, only 
     so much of such funds as does not exceed $5,000; or''; and
       (2) by adding at the end the following:
       ``(f) In determining whether any of the relationships 
     specified in paragraph (6)(A) or (7)(A) of subsection (b) 
     exists, a legally adopted child of an individual (and a child 
     who is a member of an individual's household, if placed with 
     such individual by an authorized placement agency for legal 
     adoption by such individual), or a foster child of an 
     individual (if such child has as the child's principal place 
     of abode the home of the debtor and is a member of the 
     debtor's household)

[[Page 28824]]

     shall be treated as a child of such individual by blood.''.
       (b) Debtor's Duties.-Section 521 of title 11, United States 
     Code, as amended by sections 105(d), 304(c)(1), 305(2), 
     315(b), and 316 of this Act, is amended by adding at the end 
     the following:
       ``(k) In addition to meeting the requirements under 
     subsection (a), a debtor shall file with the court a record 
     of any interest that a debtor has in an education individual 
     retirement account (as defined in section 530(b)(1) of the 
     Internal Revenue Code of 1986) or under a qualified State 
     tuition program (as defined in section 529(b)(1) of such 
     Code).''.
                                 ______
                                 

                       HARKIN AMENDMENT NO. 2270

  (Ordered to lie on the table.)
  Mr. HARKIN submitted an amendment intended to be proposed by him to 
the bill, S. 625, supra; as follows:

       At the appropriate place in the bill, add the following 
     section:

     SEC.    . (A) INVALIDATING HIDDEN SECURITY INTERESTS AND 
                   NEARLY VALUELESS HOUSEHOLD LIENS.

       (1) Exempt property.--Section 522(f) of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(4) A lien held by a creditor on an interest of the 
     debtor in any item of household furnishings, household goods, 
     wearing apparel, appliances, books, animals, crops, musical 
     instruments, or jewelry held primarily for the personal, 
     family, or household use of the debtor or a dependent of the 
     debtor shall be void unless--
       ``(A) the holder of the lien files with the court and 
     serves on the debtor, within 30 days after the meeting of 
     creditors or before the hearing on confirmation of a plan, 
     whichever occurs first, a sworn declaration that the purchase 
     price for the particular item that is subject to such lien 
     exceeded $1,000 or that the item was purchased within 180 
     days prior to the filing of the bankruptcy petition, and
       ``(B)(i) the debtor does not timely object to such 
     declaration; or
       ``(ii)(I) the debtor objects to such declaration; and
       ``(II) the court finds that the purchase price of the item 
     exceeded $1,000 or that the item was purchased within 180 
     days prior to the filing of the bankruptcy petition and that 
     such lien is not avoidable under paragraph (f)(1) of this 
     section.''.
       (2) Conforming amendment.--Section 104(b)(1) of title 11, 
     United States Code, is amended by inserting ``552(f),'' after 
     ``552(d)''.
                                 ______
                                 

                 HATCH (AND OTHERS) AMENDMENT NO. 2771

  (Ordered to lie on the table.)
  Mr. HATCH (for himself, Mr. Ashcroft, and Mr. Abraham) submitted an 
amendment intended to be proposed by them to the bill, S. 625, supra; 
as follows:

       At the appropriate place, insert the following new title:

       TITLE __--METHAMPHETAMINE AND OTHER CONTROLLED SUBSTANCES

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Methamphetamine Anti-
     Proliferation Act of 1999''.

     Subtitle A--Methamphetamine Production, Trafficking, and Abuse

                     CHAPTER 1--CRIMINAL PENALTIES

     SEC. __11. ENHANCED PUNISHMENT OF AMPHETAMINE LABORATORY 
                   OPERATORS.

       (a) Amendment to Federal Sentencing Guidelines.--Pursuant 
     to its authority under section 994(p) of title 28, United 
     States Code, the United States Sentencing Commission shall 
     amend the Federal sentencing guidelines in accordance with 
     this section with respect to any offense relating to the 
     manufacture, importation, exportation, or trafficking in 
     amphetamine (including an attempt or conspiracy to do any of 
     the foregoing) in violation of--
       (1) the Controlled Substances Act (21 U.S.C. 801 et seq.);
       (2) the Controlled Substances Import and Export Act (21 
     U.S.C. 951 et seq.); or
       (3) the Maritime Drug Law Enforcement Act (46 U.S.C. App. 
     1901 et seq.).
       (b) General Requirement.--In carrying out this section, the 
     United States Sentencing Commission shall, with respect to 
     each offense described in subsection (a) relating to 
     amphetamine--
       (1) review and amend its guidelines to provide for 
     increased penalties such that those penalties are comparable 
     to the base offense level for methamphetamine; and
       (2) take any other action the Commission considers 
     necessary to carry out this subsection.
       (c) Additional Requirements.--In carrying out this section, 
     the United States Sentencing Commission shall ensure that the 
     sentencing guidelines for offenders convicted of offenses 
     described in subsection (a) reflect the heinous nature of 
     such offenses, the need for aggressive law enforcement action 
     to fight such offenses, and the extreme dangers associated 
     with unlawful activity involving amphetamines, including--
       (1) the rapidly growing incidence of amphetamine abuse and 
     the threat to public safety that such abuse poses;
       (2) the high risk of amphetamine addiction;
       (3) the increased risk of violence associated with 
     amphetamine trafficking and abuse; and
       (4) the recent increase in the illegal importation of 
     amphetamine and precursor chemicals.
       (d) Emergency Authority to Sentencing Commission.--The 
     United States Sentencing Commission shall promulgate 
     amendments pursuant to this section as soon as practicable 
     after the date of the enactment of this Act in accordance 
     with the procedure set forth in section 21(a) of the 
     Sentencing Act of 1987 (Public Law 100-182), as though the 
     authority under that Act had not expired.

     SEC. __12. ENHANCED PUNISHMENT OF AMPHETAMINE OR 
                   METHAMPHETAMINE LABORATORY OPERATORS.

       (a) Federal Sentencing Guidelines.--
       (1) In general.--Pursuant to its authority under section 
     994(p) of title 28, United States Code, the United States 
     Sentencing Commission shall amend the Federal sentencing 
     guidelines in accordance with paragraph (2) with respect to 
     any offense relating to the manufacture, attempt to 
     manufacture, or conspiracy to manufacture amphetamine or 
     methamphetamine in violation of--
       (A) the Controlled Substances Act (21 U.S.C. 801 et seq.);
       (B) the Controlled Substances Import and Export Act (21 
     U.S.C. 951 et seq.); or
       (C) the Maritime Drug Law Enforcement Act (46 U.S.C. App. 
     1901 et seq.).
       (2) Requirements.--In carrying out this paragraph, the 
     United States Sentencing Commission shall--
       (A) if the offense created a substantial risk of harm to 
     human life (other than a life described in subparagraph (B)) 
     or the environment, increase the base offense level for the 
     offense--
       (i) by not less than 3 offense levels above the applicable 
     level in effect on the date of the enactment of this Act; or
       (ii) if the resulting base offense level after an increase 
     under clause (i) would be less than level 27, to not less 
     than level 27; or
       (B) if the offense created a substantial risk of harm to 
     the life of a minor or incompetent, increase the base offense 
     level for the offense--
       (i) by not less than 6 offense levels above the applicable 
     level in effect on the date of the enactment of this Act; or
       (ii) if the resulting base offense level after an increase 
     under clause (i) would be less than level 30, to not less 
     than level 30.
       (3) Emergency authority to sentencing commission.--The 
     United States Sentencing Commission shall promulgate 
     amendments pursuant to this subsection as soon as practicable 
     after the date of enactment of this Act in accordance with 
     the procedure set forth in section 21(a) of the Sentencing 
     Act of 1987 (Public Law 100-182), as though the authority 
     under that Act had not expired.
       (b) Effective Date.--The amendments made pursuant to this 
     section shall apply with respect to any offense occurring on 
     or after the date that is 60 days after the date of enactment 
     of this Act.

     SEC. __13. MANDATORY RESTITUTION FOR VIOLATIONS OF CONTROLLED 
                   SUBSTANCES ACT AND CONTROLLED SUBSTANCES IMPORT 
                   AND EXPORT ACT RELATING TO AMPHETAMINE AND 
                   METHAMPHETAMINE.

       (a) Mandatory Restitution.--Section 413(q) of the 
     Controlled Substances Act (21 U.S.C. 853(q)) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``may'' and inserting ``shall'';
       (2) by inserting ``amphetamine or'' before 
     ``methamphetamine'' each place it appears;
       (3) in paragraph (2)--
       (A) by inserting ``, the State or local government 
     concerned, or both the United States and the State or local 
     government concerned'' after ``United States'' the first 
     place it appears; and
       (B) by inserting ``or the State or local government 
     concerned, as the case may be,'' after ``United States'' the 
     second place it appears; and
       (4) in paragraph (3), by striking ``section 3663 of title 
     18, United States Code'' and inserting ``section 3663A of 
     title 18, United States Code''.
       (b) Deposit of Amounts in Department of Justice Assets 
     Forfeiture Fund.--Section 524(c)(4) of title 28, United 
     States Code, is amended--
       (1) by striking ``and'' at the end of subparagraph (B);
       (2) by striking the period at the end of subparagraph (C) 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(D) all amounts collected--
       ``(i) by the United States pursuant to a reimbursement 
     order under paragraph (2) of section 413(q) of the Controlled 
     Substances Act (21 U.S.C. 853(q)); and
       ``(ii) pursuant to a restitution order under paragraph (1) 
     or (3) of section 413(q) of the Controlled Substances Act for 
     injuries to the United States.''.
       (c) Clarification of Certain Orders of Restitution.--
     Section 3663(c)(2)(B) of title

[[Page 28825]]

     18, United States Code, is amended by inserting ``which may 
     be'' after ``the fine''.
       (d) Expansion of Applicability of Mandatory Restitution.--
     Section 3663A(c)(1)(A)(ii) of title 18, United States Code, 
     is amended by inserting ``or under section 416(a) of the 
     Controlled Substances Act (21 U.S.C. 856(a)),'' after ``under 
     this title,''.
       (e) Treatment of Illicit Substance Manufacturing Operations 
     as Crimes Against Property.--Section 416 of the Controlled 
     Substances Act (21 U.S.C. 856) is amended by adding at the 
     end the following new subsection:
       ``(c) A violation of subsection (a) shall be considered an 
     offense against property for purposes of section 
     3663A(c)(1)(A)(ii) of title 18, United States Code.''.

     SEC.__14. METHAMPHETAMINE PARAPHERNALIA.

       Section 422(d) of the Controlled Substances Act (21 U.S.C. 
     863(d)) is amended in the matter preceding paragraph (1) by 
     inserting ``methamphetamine,'' after ``PCP,''.

                  CHAPTER 2--ENHANCED LAW ENFORCEMENT

     SEC. __21. ENVIRONMENTAL HAZARDS ASSOCIATED WITH ILLEGAL 
                   MANUFACTURE OF AMPHETAMINE AND METHAMPHETAMINE.

       (a) Use of Amounts or Department of Justice Assets 
     Forfeiture Fund.--Section 524(c)(1)(E) of title 28, United 
     States Code, is amended--
       (1) by inserting ``(i) for'' before ``disbursements'';
       (2) by inserting ``and'' after the semicolon; and
       (3) by adding at the end the following:
       ``(ii) for payment for--
       ``(I) costs incurred by or on behalf of the Department of 
     Justice in connection with the removal, for purposes of 
     Federal forfeiture and disposition, of any hazardous 
     substance or pollutant or contaminant associated with the 
     illegal manufacture of amphetamine or methamphetamine; and
       ``(II) costs incurred by or on behalf of a State or local 
     government in connection with such removal in any case in 
     which such State or local government has assisted in a 
     Federal prosecution relating to amphetamine or 
     methamphetamine, to the extent such costs exceed equitable 
     sharing payments made to such State or local government in 
     such case;''.
       (b) Grants Under Drug Control and System Improvement Grant 
     Program.--Section 501(b)(3) of the Omnibus Crime Control and 
     Safe Streets Act of 1968 is amended by inserting before the 
     semicolon the following: ``and to remove any hazardous 
     substance or pollutant or contaminant associated with the 
     illegal manufacture of amphetamine or methamphetamine''.
       (c) Amounts Supplement and Not Supplant.--
       (1) Assets forfeiture fund.--Any amounts made available 
     from the Department of Justice Assets Forfeiture Fund in a 
     fiscal year by reason of the amendment made by subsection (a) 
     shall supplement, and not supplant, any other amounts made 
     available to the Department of Justice in such fiscal year 
     from other sources for payment of costs described in section 
     524(c)(1)(E)(ii) of title 28, United States Code, as so 
     amended.
       (2) Grant program.--Any amounts made available in a fiscal 
     year under the grant program under section 501(b)(3) of the 
     Omnibus Crime Control and Safe Streets Act of 1968 for the 
     removal of hazardous substances or pollutants or contaminants 
     associated with the illegal manufacture of amphetamine or 
     methamphetamine by reason of the amendment made by subsection 
     (b) shall supplement, and not supplant, any other amounts 
     made available in such fiscal year from other sources for 
     such removal.

     SEC. __22. REDUCTION IN RETAIL SALES TRANSACTION THRESHOLD 
                   FOR NON-SAFE HARBOR PRODUCTS CONTAINING 
                   PSEUDOEPHEDRINE OR PHENLYPROPANOLAMINE.

       (a) Reduction in Transaction Threshold.--Section 
     102(39)(A)(iv)(II) of the Controlled Substances Act (21 
     U.S.C. 802(39)(A)(iv)(II) is amended--
       (1) by striking ``24 grams'' both places it appears and 
     inserting ``9 grams''; and
       (2) by inserting before the semicolon at the end the 
     following: ``and sold in package sizes of not more than 3 
     grams of pseudoephedrine base or 3 grams of 
     phenylpropanolamine base''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect one year after the date of the enactment of 
     this Act.

     SEC. __23. TRAINING FOR DRUG ENFORCEMENT ADMINISTRATION AND 
                   STATE AND LOCAL LAW ENFORCEMENT PERSONNEL 
                   RELATING TO CLANDESTINE LABORATORIES.

       (a) In General.--
       (1) Requirement.--The Administrator of the Drug Enforcement 
     Administration shall carry out the programs described in 
     subsection (b) with respect to the law enforcement personnel 
     of States and localities determined by the Administrator to 
     have significant levels of methamphetamine-related or 
     amphetamine-related crime or projected by the Administrator 
     to have the potential for such levels of crime in the future.
       (2) Duration.--The duration of any program under that 
     subsection may not exceed 3 years.
       (b) Covered Programs.--The programs described in this 
     subsection are as follows:
       (1) Advanced mobile clandestine laboratory training 
     teams.--A program of advanced mobile clandestine laboratory 
     training teams, which shall provide information and training 
     to State and local law enforcement personnel in techniques 
     utilized in conducting undercover investigations and 
     conspiracy cases, and other information designed to assist in 
     the investigation of the illegal manufacturing and 
     trafficking of amphetamine and methamphetamine.
       (2) Basic clandestine laboratory certification training.--A 
     program of basic clandestine laboratory certification 
     training, which shall provide information and training--
       (A) to Drug Enforcement Administration personnel and State 
     and local law enforcement personnel for purposes of enabling 
     such personnel to meet any certification requirements under 
     law with respect to the handling of wastes created by illegal 
     amphetamine and methamphetamine laboratories; and
       (B) to State and local law enforcement personnel for 
     purposes of enabling such personnel to provide the 
     information and training covered by subparagraph (A) to other 
     State and local law enforcement personnel.
       (3) Clandestine laboratory recertification and awareness 
     training.--A program of clandestine laboratory 
     recertification and awareness training, which shall provide 
     information and training to State and local law enforcement 
     personnel for purposes of enabling such personnel to provide 
     recertification and awareness training relating to 
     clandestine laboratories to additional State and local law 
     enforcement personnel.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated for each of fiscal years 2000, 2001, and 
     2002 amounts as follows:
       (1) $1,500,000 to carry out the program described in 
     subsection (b)(1).
       (2) $3,000,000 to carry out the program described in 
     subsection (b)(2).
       (3) $1,000,000 to carry out the program described in 
     subsection (b)(3).

     SEC. __24. COMBATING METHAMPHETAMINE AND AMPHETAMINE IN HIGH 
                   INTENSITY DRUG TRAFFICKING AREAS.

       (a) In General.--
       (1) In general.--The Director of National Drug Control 
     Policy shall use amounts available under this section to 
     combat the trafficking of methamphetamine and amphetamine in 
     areas designated by the Director as high intensity drug 
     trafficking areas.
       (2) Activities.--In meeting the requirement in paragraph 
     (1), the Director shall provide funds for--
       (A) employing additional Federal law enforcement personnel, 
     or facilitating the employment of additional State and local 
     law enforcement personnel, including agents, investigators, 
     prosecutors, laboratory technicians, chemists, investigative 
     assistants, and drug-prevention specialists; and
       (B) such other activities as the Director considers 
     appropriate.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section--
       (1) $15,000,000 for fiscal year 2000; and
       (2) such sums as may be necessary for each of fiscal years 
     2001 through 2004.
       (c) Apportionment of Funds.--
       (1) Factors in apportionment.--The Director shall apportion 
     amounts appropriated for a fiscal year pursuant to the 
     authorization of appropriations in subsection (b) for 
     activities under subsection (a) among and within areas 
     designated by the Director as high intensity drug trafficking 
     areas based on the following factors:
       (A) The number of methamphetamine manufacturing facilities 
     and amphetamine manufacturing facilities discovered by 
     Federal, State, or local law enforcement officials in the 
     previous fiscal year.
       (B) The number of methamphetamine prosecutions and 
     amphetamine prosecutions in Federal, State, or local courts 
     in the previous fiscal year.
       (C) The number of methamphetamine arrests and amphetamine 
     arrests by Federal, State, or local law enforcement officials 
     in the previous fiscal year.
       (D) The amounts of methamphetamine, amphetamine, or listed 
     chemicals (as that term is defined in section 102(33) of the 
     Controlled Substances Act (21 U.S.C. 802(33)) seized by 
     Federal, State, or local law enforcement officials in the 
     previous fiscal year.
       (E) Intelligence and predictive data from the Drug 
     Enforcement Administration and the Department of Health and 
     Human Services showing patterns and trends in abuse, 
     trafficking, and transportation in methamphetamine, 
     amphetamine, and listed chemicals (as that term is so 
     defined).
       (2) Certification.--Before the Director apportions any 
     funds under this subsection to a high intensity drug 
     trafficking area, the Director shall certify that the law 
     enforcement entities responsible for clandestine 
     methamphetamine and amphetamine laboratory seizures in that 
     area are providing laboratory seizure data to the national 
     clandestine laboratory database at the El Paso Intelligence 
     Center.

[[Page 28826]]

       (d) Limitation on Administrative Costs.--Not more than 5 
     percent of the amount appropriated in a fiscal year pursuant 
     to the authorization of appropriations for that fiscal year 
     in subsection (b) may be available in that fiscal year for 
     administrative costs associated with activities under 
     subsection (a).

     SEC. __25. COMBATING AMPHETAMINE AND METHAMPHETAMINE 
                   MANUFACTURING AND TRAFFICKING.

       (a) Activities.--In order to combat the illegal 
     manufacturing and trafficking in amphetamine and 
     methamphetamine, the Administrator of the Drug Enforcement 
     Administration may--
       (1) assist State and local law enforcement in small and 
     mid-sized communities in all phases of investigations related 
     to such manufacturing and trafficking, including assistance 
     with foreign-language interpretation;
       (2) staff additional regional enforcement and mobile 
     enforcement teams related to such manufacturing and 
     trafficking;
       (3) establish additional resident offices and posts of duty 
     to assist State and local law enforcement in rural areas in 
     combating such manufacturing and trafficking;
       (4) provide the Special Operations Division of the 
     Administration with additional agents and staff to collect, 
     evaluate, interpret, and disseminate critical intelligence 
     targeting the command and control operations of major 
     amphetamine and methamphetamine manufacturing and trafficking 
     organizations;
       (5) enhance the investigative and related functions of the 
     Chemical Control Program of the Administration to implement 
     more fully the provisions of the Comprehensive 
     Methamphetamine Control Act of 1996 (Public Law 104-237);
       (6) design an effective means of requiring an accurate 
     accounting of the import and export of list I chemicals, and 
     coordinate investigations relating to the diversion of such 
     chemicals;
       (7) develop a computer infrastructure sufficient to 
     receive, process, analyze, and redistribute time-sensitive 
     enforcement information from suspicious order reporting to 
     field offices of the Administration and other law enforcement 
     and regulatory agencies, including the continuing development 
     of the Suspicious Order Reporting and Tracking System (SORTS) 
     and the Chemical Transaction Database (CTRANS) of the 
     Administration;
       (8) establish an education, training, and communication 
     process in order to alert the industry to current trends and 
     emerging patterns in the illegal manufacturing of amphetamine 
     and methamphetamine; and
       (9) carry out such other activities as the Administrator 
     considers appropriate.
       (b) Additional Positions and Personnel.--
       (1) In general.--In carrying out activities under 
     subsection (a), the Administrator may establish in the 
     Administration not more than 50 full-time positions, 
     including not more than 31 special-agent positions, and may 
     appoint personnel to such positions.
       (2) Particular positions.--In carrying out activities under 
     paragraphs (5) through (8) of subsection (a), the 
     Administrator may establish in the Administration not more 
     than 15 full-time positions, including not more than 10 
     diversion investigator positions, and may appoint personnel 
     to such positions. Any positions established under this 
     paragraph are in addition to any positions established under 
     paragraph (1).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated for the Drug Enforcement Administration 
     for each fiscal year after fiscal year 1999, $9,500,000 for 
     purposes of carrying out the activities authorized by 
     subsection (a) and employing personnel in positions 
     established under subsection (b), of which $3,000,000 shall 
     be available for activities under paragraphs (5) through (8) 
     of subsection (a) and employing personnel in positions 
     established under subsection (b)(2).

               CHAPTER 3--ABUSE PREVENTION AND TREATMENT

     SEC. __31. EXPANSION OF METHAMPHETAMINE RESEARCH.

       Section 464N of the Public Health Service Act (42 U.S.C. 
     285o-2) is amended by adding at the end the following:
       ``(c) Methamphetamine Research.--
       ``(1) Grants or cooperative agreements.--The Director of 
     the Institute may make grants or enter into cooperative 
     agreements to expand the current and on-going 
     interdisciplinary research and clinical trials with treatment 
     centers of the National Drug Abuse Treatment Clinical Trials 
     Network relating to methamphetamine abuse and addiction and 
     other biomedical, behavioral, and social issues related to 
     methamphetamine abuse and addiction.
       ``(2) Use of funds.--Amounts made available under a grant 
     or cooperative agreement under paragraph (1) for 
     methamphetamine abuse and addiction may be used for research 
     and clinical trials relating to--
       ``(A) the effects of methamphetamine abuse on the human 
     body, including the brain;
       ``(B) the addictive nature of methamphetamine and how such 
     effects differ with respect to different individuals;
       ``(C) the connection between methamphetamine abuse and 
     mental health;
       ``(D) the identification and evaluation of the most 
     effective methods of prevention of methamphetamine abuse and 
     addiction;
       ``(E) the identification and development of the most 
     effective methods of treatment of methamphetamine addiction, 
     including pharmacological treatments;
       ``(F) risk factors for methamphetamine abuse;
       ``(G) effects of methamphetamine abuse and addiction on 
     pregnant women and their fetuses; and
       ``(H) cultural, social, behavioral, neurological and 
     psychological reasons that individuals abuse methamphetamine, 
     or refrain from abusing methamphetamine.
       ``(3) Research results.--The Director shall promptly 
     disseminate research results under this subsection to 
     Federal, State and local entities involved in combating 
     methamphetamine abuse and addiction.
       ``(4) Authorization of appropriations.--
       ``(A) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out paragraph (1), such sums as 
     may be necessary for each fiscal year.
       ``(B) Supplement not supplant.--Amounts appropriated 
     pursuant to the authorization of appropriations in 
     subparagraph (A) for a fiscal year shall supplement and not 
     supplant any other amounts appropriated in such fiscal year 
     for research on methamphetamine abuse and addiction.''.

     SEC. __32. METHAMPHETAMINE AND AMPHETAMINE TREATMENT 
                   INITIATIVE BY CENTER FOR SUBSTANCE ABUSE 
                   TREATMENT.

       Subpart 1 of part B of title V of the Public Health Service 
     Act (42 U.S.C. 290bb et seq.) is amended by adding at the end 
     the following new section:


         ``methamphetamine and amphetamine treatment initiative

       ``Sec. 514. (a) Grants.--
       ``(1) Authority to make grants.--The Director of the Center 
     for Substance Abuse Treatment may make grants to States and 
     Indian tribes recognized by the United States that have a 
     high rate, or have had a rapid increase, in methamphetamine 
     or amphetamine abuse or addiction in order to permit such 
     States and Indian tribes to expand activities in connection 
     with the treatment of methamphetamine or amphetamine abuser 
     or addiction in the specific geographical areas of such 
     States or Indian tribes, as the case may be, where there is 
     such a rate or has been such an increase.
       ``(2) Recipients.--Any grants under paragraph (1) shall be 
     directed to the substance abuse directors of the States, and 
     of the appropriate tribal government authorities of the 
     Indian tribes, selected by the Director to receive such 
     grants.
       ``(3) Nature of activities.--Any activities under a grant 
     under paragraph (1) shall be based on reliable scientific 
     evidence of their efficacy in the treatment of 
     methamphetamine or amphetamine abuse or addiction.
       ``(b) Geographic Distribution.--The Director shall ensure 
     that grants under subsection (a) are distributed equitably 
     among the various regions of the country and among rural, 
     urban, and suburban areas that are affected by 
     methamphetamine or amphetamine abuse or addiction.
       ``(c) Additional Activities.--The Director shall--
       ``(1) evaluate the activities supported by grants under 
     subsection (a);
       ``(2) disseminate widely such significant information 
     derived from the evaluation as the Director considers 
     appropriate to assist States, Indian tribes, and private 
     providers of treatment services for methamphetamine or 
     amphetamine abuser or addiction in the treatment of 
     methamphetamine or amphetamine abuse or addiction; and
       ``(3) provide States, Indian tribes, and such providers 
     with technical assistance in connection with the provision of 
     such treatment.
       ``(d) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section $10,000,000 for fiscal year 2000 
     and such sums as may be necessary for each of fiscal years 
     2001 and 2002.
       ``(2) Use of certain funds.--Of the funds appropriated to 
     carry out this section in any fiscal year, the lesser of 5 
     percent of such funds or $1,000,000 shall be available to the 
     Director for purposes of carrying out subsection (c).''.

     SEC. __33. EXPANSION OF METHAMPHETAMINE ABUSE PREVENTION 
                   EFFORTS.

       (a) Expansion of Efforts.--Section 515 of the Public Health 
     Service Act (42 U.S.C. 290bb-21) is amended by adding at the 
     end the following:
       ``(e)(1) The Administrator may make grants to and enter 
     into contracts and cooperative agreements with public and 
     nonprofit private entities to enable such entities--
       ``(A) to carry out school-based programs concerning the 
     dangers of abuse of and addiction to methamphetamine and 
     other illicit drugs, using methods that are effective and 
     science-based, including initiatives that give students the 
     responsibility to create their own anti-drug abuse education 
     programs for their schools; and
       ``(B) to carry out community-based abuse and addiction 
     prevention programs relating to methamphetamine and other 
     illicit drugs that are effective and science-based.
       ``(2) Amounts made available under a grant, contract or 
     cooperative agreement

[[Page 28827]]

     under paragraph (1) shall be used for planning, establishing, 
     or administering prevention programs relating to 
     methamphetamine and other illicit drugs in accordance with 
     paragraph (3).
       ``(3)(A) Amounts provided under this subsection may be 
     used--
       ``(i) to carry out school-based programs that are focused 
     on those districts with high or increasing rates of 
     methamphetamine abuse and addiction and targeted at 
     populations which are most at risk to start abuse of 
     methamphetamine and other illicit drugs;
       ``(ii) to carry out community-based prevention programs 
     that are focused on those populations within the community 
     that are most at-risk for abuse of and addiction to 
     methamphetamine and other illicit drugs;
       ``(iii) to assist local government entities to conduct 
     appropriate prevention activities relating to methamphetamine 
     and other illicit drugs;
       ``(iv) to train and educate State and local law enforcement 
     officials, prevention and education officials, members of 
     community anti-drug coalitions and parents on the signs of 
     abuse of and addiction to methamphetamine and other illicit 
     drugs, and the options for treatment and prevention;
       ``(v) for planning, administration, and educational 
     activities related to the prevention of abuse of and 
     addiction to methamphetamine and other illicit drugs;
       ``(vi) for the monitoring and evaluation of prevention 
     activities relating to methamphetamine and other illicit 
     drugs, and reporting and disseminating resulting information 
     to the public; and
       ``(vii) for targeted pilot programs with evaluation 
     components to encourage innovation and experimentation with 
     new methodologies.
       ``(B) The Administrator shall give priority in making 
     grants under this subsection to rural and urban areas that 
     are experiencing a high rate or rapid increases in 
     methamphetamine abuse and addiction.
       ``(4)(A) Not less than $500,000 of the amount available in 
     each fiscal year to carry out this subsection shall be made 
     available to the Administrator, acting in consultation with 
     other Federal agencies, to support and conduct periodic 
     analyses and evaluations of effective prevention programs for 
     abuse of and addiction to methamphetamine and other illicit 
     drugs and the development of appropriate strategies for 
     disseminating information about and implementing these 
     programs.
       ``(B) The Administrator shall submit to the committees of 
     Congress referred to in subparagraph (C) an annual report 
     with the results of the analyses and evaluation under 
     subparagraph (A).
       ``(C) The committees of Congress referred to in this 
     subparagraph are the following:
       ``(i) The Committees on Health, Education, Labor, and 
     Pensions, the Judiciary, and Appropriations of the Senate.
       ``(ii) The Committees on Commerce, the Judiciary, and 
     Appropriations of the House of Representatives.''.
       (b) Authorization of Appropriations for Expansion of Abuse 
     Prevention Efforts and Practitioner Registration 
     Requirements.--There is authorized to be appropriated to 
     carry out section 515(e) of the Public Health Service Act (as 
     added by subsection (a)) and section 303(g)(2) of the 
     Controlled Substances Act (as added by section 18(a) of this 
     Act), $15,000,000 for fiscal year 2000, and such sums as may 
     be necessary for each succeeding fiscal year.

     SEC. __34. STUDY OF METHAMPHETAMINE TREATMENT.

       (a) Study.--
       (1) Requirement.--The Secretary of Health and Human 
     Services shall, in consultation with the Institute of 
     Medicine of the National Academy of Sciences, conduct a study 
     on the development of medications for the treatment of 
     addiction to amphetamine and methamphetamine.
       (2) Report.--Not later than nine months after the date of 
     the enactment of this Act, the Secretary shall submit to the 
     Committees on the Judiciary of the Senate and House of 
     Representatives a report on the results of the study 
     conducted under paragraph (1).
       (b) Authorization of Appropriations.--There are hereby 
     authorized to be appropriated for the Department of Health 
     and Human Services for fiscal year 2000 such sums as may be 
     necessary to meet the requirements of subsection (a).

                           CHAPTER 4--REPORTS

     SEC. __41. REPORTS ON CONSUMPTION OF METHAMPHETAMINE AND 
                   OTHER ILLICIT DRUGS IN RURAL AREAS, 
                   METROPOLITAN AREAS, AND CONSOLIDATED 
                   METROPOLITAN AREAS.

       The Secretary of Health and Human Services shall include in 
     each National Household Survey on Drug Abuse appropriate 
     prevalence data and information on the consumption of 
     methamphetamine and other illicit drugs in rural areas, 
     metropolitan areas, and consolidated metropolitan areas.

     SEC. __42. REPORT ON DIVERSION OF ORDINARY OVER-THE-COUNTER 
                   PSEUDOEPHEDRINE AND PHENYLPROPANOLAMINE 
                   PRODUCTS.

       (a) Study.--The Attorney General shall conduct a study of 
     the use of ordinary over-the-counter pseudoephedrine and 
     phenylpropanolamine products in the clandestine production of 
     illicit drugs. Sources of data for the study shall include 
     the following:
       (1) Information from Federal, State, and local clandestine 
     laboratory seizures and related investigations identifying 
     the source, type, or brand of drug products being utilized 
     and how they were obtained for the illicit production of 
     methamphetamine and amphetamine.
       (2) Information submitted voluntarily from the 
     pharmaceutical and retail industries involved in the 
     manufacture, distribution, and sale of drug products 
     containing ephedrine, pseudoephedrine, and 
     phenylpropanolamine, including information on changes in the 
     pattern, volume, or both, of sales of ordinary over-the-
     counter pseudoephedrine and phenylpropanolamine products.
       (b) Report.--
       (1) Requirement.--Not later than April 1, 2001, the 
     Attorney General shall submit to Congress a report on the 
     study conducted under subsection (a).
       (2) Elements.--The report shall include--
       (A) the findings of the Attorney General as a result of the 
     study; and
       (B) such recommendations on the need to establish 
     additional measures to prevent diversion of ordinary over-
     the-counter pseudoephedrine and phenylpropanolamine (such as 
     a threshold on ordinary over-the-counter pseudoephedrine and 
     phenylpropanolamine products) as the Attorney General 
     considers appropriate.
       (3) Matters considered.--In preparing the report, the 
     Attorney General shall consider the comments and 
     recommendations of State and local law enforcement and 
     regulatory officials and of representatives of the industry 
     described in subsection (a)(2).

              Subtitle B--Controlled Substances Generally

                      CHAPTER 1--CRIMINAL MATTERS

     SEC. __51. ENHANCED PUNISHMENT FOR TRAFFICKING IN LIST I 
                   CHEMICALS.

       (a) Amendments to Federal Sentencing Guidelines.--Pursuant 
     to its authority under section 994(p) of title 28, United 
     States, the United States Sentencing Commission shall amend 
     the Federal sentencing guidelines in accordance with this 
     section with respect to any violation of paragraph (1) or (2) 
     of section 401(d) of the Controlled Substances Act (21 U.S.C. 
     841(d)) involving a list I chemical and any violation of 
     paragraph (1) or (3) of section 1010(d) of the Controlled 
     Substance Import and Export Act (21 U.S.C. 960(d)) involving 
     a list I chemical.
       (b) Ephedrine, Phenylpropanolamine, and Pseudoephedrine.--
       (1) In general.--In carrying this section, the United 
     States Sentencing Commission shall, with respect to each 
     offense described in subsection (a) involving ephedrine, 
     phenylpropanolamine, or pseudoephedrine (including their 
     salts, optical isomers, and salts of optical isomers), review 
     and amend its guidelines to provide for increased penalties 
     such that those penalties corresponded to the quantity of 
     controlled substance that could reasonably have been 
     manufactured using the quantity of ephedrine, 
     phenylpropanolamine, or pseudoephedrine possessed or 
     distributed.
       (2) Conversion ratios.--For the purposes of the amendments 
     made by this subsection, the quantity of controlled substance 
     that could reasonably have been manufactured shall be 
     determined by using a table of manufacturing conversion 
     ratios for ephedrine, phenylpropanolamine, and 
     pseudoephedrine, which table shall be established by the 
     Sentencing Commission based on scientific, law enforcement, 
     and other data the Sentencing Commission considers 
     appropriate.
       (c) Other List I Chemicals.--In carrying this section, the 
     United States Sentencing Commission shall, with respect to 
     each offense described in subsection (a) involving any list I 
     chemical other than ephedrine, phenylpropanolamine, or 
     pseudoephedrine, review and amend its guidelines to provide 
     for increased penalties such that those penalties reflect the 
     dangerous nature of such offenses, the need for aggressive 
     law enforcement action to fight such offenses, and the 
     extreme dangers associated with unlawful activity involving 
     methamphetamine and amphetamine, including--
       (1) the rapidly growing incidence of controlled substance 
     manufacturing;
       (2) the extreme danger inherent in manufacturing controlled 
     substances;
       (3) the threat to public safety posed by manufacturing 
     controlled substances; and
       (4) the recent increase in the importation, possession, and 
     distribution of list I chemicals for the purpose of 
     manufacturing controlled substances.
       (d) Emergency Authority to Sentencing Commission.--The 
     United States Sentencing Commission shall promulgate 
     amendments pursuant to this section as soon as practicable 
     after the date of the enactment of this Act in accordance 
     with the procedure set forth in section 21(a) of the 
     Sentencing Act of 1987 (Public Law 100-182), as though the 
     authority under that Act had not expired.

     SEC. __52. MAIL ORDER REQUIREMENTS.

       Section 310(b)(3) of the Controlled Substances Act (21 
     U.S.C. 830(b)(3)) is amended--
       (1) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively;

[[Page 28828]]

       (2) by inserting before subparagraph (B), as so 
     redesignated, the following new subparagraph (A):
       ``(A) As used in this paragraph:
       ``(i) The term `drug product' means an active ingredient in 
     dosage form that has been approved or otherwise may be 
     lawfully marketed under the Food, Drug, and Cosmetic Act for 
     distribution in the United States.
       ``(ii) The term `valid prescription' means a prescription 
     which is issued for a legitimate medical purpose by an 
     individual practitioner licensed by law to administer and 
     prescribe the drugs concerned and acting in the usual course 
     of the practitioner's professional practice.'';
       (3) in subparagraph (B), as so redesignated, by inserting 
     ``or who engages in an export transaction'' after 
     ``nonregulated person''; and
       (4) adding at the end the following:
       ``(D) Except as provided in subparagraph (E), the following 
     distributions to a nonregulated person, and the following 
     export transactions, shall not be subject to the reporting 
     requirement in subparagraph (B):
       ``(i) Distributions of sample packages of drug products 
     when such packages contain not more than 2 solid dosage units 
     or the equivalent of 2 dosage units in liquid form, not to 
     exceed 10 milliliters of liquid per package, and not more 
     than one package is distributed to an individual or 
     residential address in any 30-day period.
       ``(ii) Distributions of drug products by retail 
     distributors that may not include face-to-face transactions 
     to the extent that such distributions are consistent with the 
     activities authorized for a retail distributor as specified 
     in section 102(46).
       ``(iii) Distributions of drug products to a resident of a 
     long term care facility (as that term is defined in 
     regulations prescribed by the Attorney General) or 
     distributions of drug products to a long term care facility 
     for dispensing to or for use by a resident of that facility.
       ``(iv) Distributions of drug products pursuant to a valid 
     prescription.
       ``(v) Exports which have been reported to the Attorney 
     General pursuant to section 1004 or 1018 or which are subject 
     to a waiver granted under section 1018(e)(2).
       ``(vi) Any quantity, method, or type of distribution or any 
     quantity, method, or type of distribution of a specific 
     listed chemical (including specific formulations or drug 
     products) or of a group of listed chemicals (including 
     specific formulations or drug products) which the Attorney 
     General has excluded by regulation from such reporting 
     requirement on the basis that such reporting is not necessary 
     for the enforcement of this title or title III.
       ``(E) The Attorney General may revoke any or all of the 
     exemptions listed in subparagraph (D) for an individual 
     regulated person if he finds that drug products distributed 
     by the regulated person are being used in violation of this 
     title or title III. The regulated person shall be notified of 
     the revocation, which will be effective upon receipt by the 
     person of such notice, as provided in section 1018(c)(1), and 
     shall have the right to an expedited hearing as provided in 
     section 1018(c)(2).''.

     SEC. __53. INCREASED PENALTIES FOR DISTRIBUTING DRUGS TO 
                   MINORS.

       Section 418 of the Controlled Substances Act (21 U.S.C. 
     859) is amended--
       (1) in subsection (a), by striking ``one year'' and 
     inserting ``3 years''; and
       (2) in subsection (b), by striking ``one year'' and 
     inserting ``5 years''.

     SEC. __54. INCREASED PENALTY FOR DRUG TRAFFICKING IN OR NEAR 
                   A SCHOOL OR OTHER PROTECTED LOCATION.

       Section 419 of the Controlled Substances Act (21 U.S.C. 
     860) is amended--
       (1) in subsection (a), by striking ``one year'' and 
     inserting ``3 years''; and
       (2) in subsection (b), by striking ``three years'' each 
     place that term appears and inserting ``5 years''.

     SEC. __55. ADVERTISEMENTS FOR DRUG PARAPHERNALIA AND SCHEDULE 
                   I CONTROLLED SUBSTANCES.

       (a) Drug Paraphernalia.--Subsection (a)(1) of section 422 
     of the Controlled Substances Act (21 U.S.C. 863) is amended 
     by inserting ``, directly or indirectly advertise for sale,'' 
     after ``sell''.
       (b) Directly or Indirectly Advertise for Sale Defined.--
     Such section 422 is further amended by adding at the end the 
     following new subsection:
       ``(g) In this section, the term `directly or indirectly 
     advertise for sale' means the use of any communication 
     facility (as that term is defined in section 403(b)) to post, 
     publicize, transmit, publish, link to, broadcast, or 
     otherwise advertise any matter (including a telephone number 
     or electronic or mail address) with the intent to facilitate 
     or promote a transaction in.''.
       (c) Schedule I Controlled Substances.--Section 403(c) of 
     such Act (21 U.S.C. 843(c)) is amended--
       (1) by inserting ``(1)'' after ``(c)''; and
       (2) in paragraph (1), as so designated--
       (A) in the first sentence, by inserting before the period 
     the following: ``, or to directly or indirectly advertise for 
     sale (as that term is defined in section 422(g)) any Schedule 
     I controlled substance''; and
       (B) in the second sentence, by striking ``term 
     `advertisement' '' and inserting ``term `written 
     advertisement' ''.

     SEC. __56. THEFT AND TRANSPORTATION OF ANHYDROUS AMMONIA FOR 
                   PURPOSES OF ILLICIT PRODUCTION OF CONTROLLED 
                   SUBSTANCES.

       (a) In General.--Part D of the Controlled Substances Act 
     (21 U.S.C. 841 et seq.) is amended by adding at the end the 
     following:


                          ``anhydrous ammonia

       ``Sec. 423. (a) It is unlawful for any person--
       ``(1) to steal anhydrous ammonia, or
       ``(2) to transport stolen anhydrous ammonia across State 
     lines,
     knowing, intending, or having reasonable cause to believe 
     that such anhydrous ammonia will be used to manufacture a 
     controlled substance in violation of this part.
       ``(b) Any person who violates subsection (a) shall be 
     imprisoned or fined, or both, in accordance with section 
     403(d) as if such violation were a violation of a provision 
     of section 403.''.
       (b) Clerical Amendment.--The table of contents for that Act 
     is amended by inserting after the item relating to section 
     421 the following new items:

``Sec. 422. Drug paraphernalia.
``Sec. 423. Anhydrous ammonia.''.
       (c) Assistance for Certain Research.--
       (1) Agreement.--The Administrator of the Drug Enforcement 
     Administration shall seek to enter into an agreement with 
     Iowa State University in order to permit the University to 
     continue and expand its current research into the development 
     of inert agents that, when added to anhydrous ammonia, 
     eliminate the usefulness of anhydrous ammonia as an 
     ingredient in the production of methamphetamine.
       (2) Reimbursable provision of funds.--The agreement under 
     paragraph (1) may provide for the provision to Iowa State 
     University, on a reimbursable basis, of $500,000 for purposes 
     the activities specified in that paragraph.
       (3) Authorization of appropriations.--There is hereby 
     authorized to be appropriated for the Drug Enforcement 
     Administration for fiscal year 2000, $500,000 for purposes of 
     carrying out the agreement under this subsection.

     SEC. __57. CRIMINAL PROHIBITION ON DISTRIBUTION OF CERTAIN 
                   INFORMATION RELATING TO THE MANUFACTURE OF 
                   CONTROLLED SUBSTANCES.

       (a) In General.--Part I of title 18, United States Code, is 
     amended by inserting after chapter 21 the following new 
     chapter:

                  ``CHAPTER 22--CONTROLLED SUBSTANCES

``Sec.
``421. Distribution of information relating to manufacture of 
              controlled substances.

     ``Sec. 421. Distribution of information relating to 
       manufacture of controlled substances

       ``(a) Prohibition on Distribution of Information Relating 
     to Manufacture of Controlled Substances.--
       ``(1) Controlled substance defined.--In this subsection, 
     the term `controlled substance' has the meaning given that 
     term in section 102(6) of the Controlled Substances Act (21 
     U.S.C. 802(6)).
       ``(2) Prohibition.--It shall be unlawful for any person--
       ``(A) to teach or demonstrate the manufacture of a 
     controlled substance, or to distribute by any means 
     information pertaining to, in whole or in part, the 
     manufacture of a controlled substance, with the intent that 
     the teaching, demonstration, or information be used for, or 
     in furtherance of, an activity that constitutes a Federal 
     crime; or
       ``(B) to teach or demonstrate to any person the manufacture 
     of a controlled substance, or to distribute to any person, by 
     any means, information pertaining to, in whole or in part, 
     the manufacture of a controlled substance, knowing that such 
     person intends to use the teaching, demonstration, or 
     information for, or in furtherance of, an activity that 
     constitutes a Federal crime.
       ``(b) Penalty.--Any person who violates subsection (a) 
     shall be fined under this title, imprisoned not more than 10 
     years, or both.''.
       (b) Clerical Amendment.--The table of chapters at the 
     beginning of part I of title 18, United States Code, is 
     amended by inserting after the item relating to chapter 21 
     the following new item:

``22. Controlled Substances..................................421''.....

                        CHAPTER 2--OTHER MATTERS

     SEC. __61. WAIVER AUTHORITY FOR PHYSICIANS WHO DISPENSE OR 
                   PRESCRIBE CERTAIN NARCOTIC DRUGS FOR 
                   MAINTENANCE TREATMENT OR DETOXIFICATION 
                   TREATMENT.

       (a) Requirements.--Section 303(g) of the Controlled 
     Substances Act (21 U.S.C. 823(g)) is amended--
       (1) in paragraph (2), by striking ``(A) security'' and 
     inserting ``(i) security'', and by striking ``(B) the 
     maintenance'' and inserting ``(ii) the maintenance'';
       (2) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively;
       (3) by inserting ``(1)'' after ``(g)'';
       (4) by striking ``Practitioners who dispense'' and 
     inserting ``Except as provided in

[[Page 28829]]

     paragraph (2), practitioners who dispense and prescribe''; 
     and
       (5) by adding at the end the following:
       ``(2)(A) Subject to subparagraphs (D), the requirements of 
     paragraph (1) are waived in the case of the dispensing or 
     prescribing, by a physician, of narcotic drugs in schedule 
     III, IV, or V, or combinations of such drugs, if the 
     physician meets the conditions specified in subparagraph (B) 
     and the narcotic drugs or combinations of such drugs meet the 
     conditions specified in subparagraph (C).
       ``(B)(i) For purposes of subparagraph (A), the conditions 
     specified in this subparagraph with respect to a physician 
     are that, before dispensing or prescribing narcotic drugs in 
     schedule III, IV, or V, or combinations of such drugs, to 
     patients for maintenance or detoxification treatment, the 
     physician submit to the Secretary and the Attorney General a 
     notification of the intent of the physician to begin 
     dispensing or prescribing the drugs or combinations for such 
     purpose, and that the notification to the Secretary also 
     contain the following certifications by the physician:
       ``(I) The physician--
       ``(aa) is a physician licensed under State law; and
       ``(bb) has training or experience and the ability to treat 
     and manage opiate-dependent patients.
       ``(II) With respect to patients to whom the physician will 
     provide such drugs or combinations of drugs, the physician 
     has the capacity to refer the patients for appropriate 
     counseling and other appropriate ancillary services.
       ``(III) In any case in which the physician is not in a 
     group practice, the total number of such patients of the 
     physician at any one time will not exceed the applicable 
     number. For purposes of this subclause, the applicable number 
     is 20, except that the Secretary may by regulation change 
     such total number.
       ``(IV) In any case in which the physician is in a group 
     practice, the total number of such patients of the group 
     practice at any one time will not exceed the applicable 
     number. For purposes of this subclause, the applicable number 
     is 20, except that the Secretary may by regulation change 
     such total number, and the Secretary for such purposes may by 
     regulation establish different categories on the basis of the 
     number of physicians in a group practice and establish for 
     the various categories different numerical limitations on the 
     number of such patients that the group practice may have.
       ``(ii)(I) The Secretary may, in consultation with the 
     Administrator of the Drug Enforcement Administration, the 
     Administrator of the Substance Abuse and Mental Health 
     Services Administration, the Director of the Center for 
     Substance Abuse Treatment, the Director of the National 
     Institute on Drug Abuse, and the Commissioner of Food and 
     Drugs, issue regulations through notice and comment 
     rulemaking or practice guidelines to implement this 
     paragraph. The regulations or practice guidelines shall 
     address the following:
       ``(aa) Approval of additional credentialing bodies and the 
     responsibilities of credentialing bodies.
       ``(bb) Additional exemptions from the requirements of this 
     paragraph and any regulations under this paragraph.
       ``(II) Nothing in the regulations or practice guidelines 
     under this clause may authorize any Federal official or 
     employee to exercise supervision or control over the practice 
     of medicine or the manner in which medical services are 
     provided.
       ``(III)(aa) The Secretary shall issue a Treatment 
     Improvement Protocol containing best practice guidelines for 
     the treatment and maintenance of opiate-dependent patients. 
     The Secretary shall develop the protocol in consultation with 
     the Director of the National Institute on Drug Abuse, the 
     Director of the Center for Substance Abuse Treatment, the 
     Administrator of the Drug Enforcement Administration, the 
     Commissioner of Food and Drugs, the Administrator of the 
     Substance Abuse and Mental Health Services Administration, 
     and other substance abuse disorder professionals. The 
     protocol shall be guided by science.
       ``(bb) The protocol shall be issued not later than 120 days 
     after the date of the enactment of the Methamphetamine Anti-
     Proliferation Act of 1999.
       ``(IV) For purposes of the regulations or practice 
     guidelines under subclause (I), a physician shall have 
     training or experience under clause (i)(I)(bb) if the 
     physician meets one or more of the following conditions:
       ``(aa) The physician is certified in addiction treatment by 
     the American Society of Addiction Medicine, the American 
     Board of Medical Specialties, the American Osteopathic 
     Academy of Addiction Medicine, or any other certified body 
     accredited by the Secretary.
       ``(bb) The physician has been a clinical investigator in a 
     clinical trial conducted for purposes of securing approval 
     under section 505 of the Federal Food, Drug, and Cosmetic Act 
     (21 U.S.C. 355) or section 351 of the Public Health Service 
     Act (42 U.S.C. 262) of a narcotic drug in schedule III, IV, 
     or V for the treatment of addiction, if such approval was 
     granted.
       ``(cc) The physician has completed training (through 
     classroom situations, seminars, professional society 
     meetings, electronic communications, or otherwise) provided 
     by the American Society of Addiction Medicine, the American 
     Academy of Addiction Psychiatry, the American Osteopathic 
     Academy of Addiction Medicine, the American Medical 
     Association, the American Osteopathic Association, the 
     American Psychiatric Association, or any other organization 
     that the Secretary determines appropriate for purposes of 
     this item. The curricula may include training in patient need 
     for counseling regarding HIV, Hepatitis C, and other 
     infectious diseases, substance abuse counseling, random drug 
     testing, medical evaluation, annual assessment, prenatal 
     care, diagnosis of addiction, rehabilitation services, 
     confidentiality, and other appropriate topics.
       ``(dd) The physician has training or experience in the 
     treatment and management of opiate-dependent, which training 
     or experience shall meet such criteria as the Secretary may 
     prescribe. Any such criteria shall be effective for a period 
     of three years after the effective date of such criteria, but 
     the Secretary may extend the effective period of such 
     criteria by additional periods of three years for each 
     extension if the Secretary determines that such extension is 
     appropriate for purposes of this item. Any such extension 
     shall go into effect only if the Secretary publishes a notice 
     of such extension in the Federal Register during the 30-day 
     period ending on the date of the end of the three-year 
     effective period of such criteria to which such extension 
     will apply.
       ``(ee) The physician is certified in addiction treatment by 
     a State medical licensing board, or an entity accredited by 
     such board, unless the Secretary determines (after an 
     opportunity for a hearing) that the training provided by such 
     board or entity was inadequate for the treatment and 
     management of opiate-dependent patients.
       ``(C) For purposes of subparagraph (A), the conditions 
     specified in this subparagraph with respect to narcotic drugs 
     in schedule III, IV, or V, or combinations of such drugs, are 
     as follows:
       ``(i) The drugs or combinations of drugs have, under the 
     Federal Food, Drug and Cosmetic Act or section 351 of the 
     Public Health Service Act, been approved for use in 
     maintenance or detoxification treatment.
       ``(ii) The drugs or combinations of drugs have not been the 
     subject of an adverse determination. For purposes of this 
     clause, an adverse determination is a determination published 
     in the Federal Register and made by the Secretary, after 
     consultation with the Attorney General, that experience since 
     the approval of the drug or combinations of drugs has shown 
     that the use of the drugs or combinations of drugs for 
     maintenance or detoxification treatment requires additional 
     standards respecting the qualifications of physicians to 
     provide such treatment, or requires standards respecting the 
     quantities of the drugs that may be provided for unsupervised 
     use.
       ``(D)(i) A waiver under subparagraph (A) with respect to a 
     physician is not in effect unless (in addition to conditions 
     under subparagraphs (B) and (C)) the following conditions are 
     met:
       ``(I) The notification under subparagraph (B) is in writing 
     and states the name of the physician.
       ``(II) The notification identifies the registration issued 
     for the physician pursuant to subsection (f).
       ``(III) If the physician is a member of a group practice, 
     the notification states the names of the other physicians in 
     the practice and identifies the registrations issued for the 
     other physicians pursuant to subsection (f).
       ``(IV) A period of 45 days has elapsed after the date on 
     which the notification was submitted, and during such period 
     the physician does not receive from the Secretary a written 
     notice that one or more of the conditions specified in 
     subparagraph (B), subparagraph (C), or this subparagraph, 
     have not been met.
       ``(ii) The Secretary shall provide to the Attorney General 
     such information contained in notifications under 
     subparagraph (B) as the Attorney General may request.
       ``(E) If in violation of subparagraph (A) a physician 
     dispenses or prescribes narcotic drugs in schedule III, IV, 
     or V, or combinations of such drugs, for maintenance 
     treatment or detoxification treatment, the Attorney General 
     may, for purposes of section 304(a)(4), consider the 
     physician to have committed an act that renders the 
     registration of the physician pursuant to subsection (f) to 
     be inconsistent with the public interest.
       ``(F)(i) Upon determining that a physician meets the 
     conditions specified in subparagraph (B), the Secretary shall 
     notify the physician and the Attorney General.
       ``(ii) Upon receiving notice with respect to a physician 
     under clause (i), the Attorney General shall assign the 
     physician an identification number under this paragraph for 
     inclusion with the physician's current registration to 
     prescribe narcotics. An identification number assigned a 
     physician under this clause shall be appropriate to preserve 
     the confidentiality of a patient prescribed narcotic drugs 
     covered by this paragraph by the physician.
       ``(iii) If the Secretary fails to make a determination 
     described in clause (i) by the end of the 45-day period 
     beginning on the date of the receipt by the Secretary of a 
     notification from a physician under subparagraph (B), the 
     Attorney General shall assign

[[Page 28830]]

     the physician an identification number described in clause 
     (ii) at the end of such period.
       ``(G) In this paragraph:
       ``(i) The term `group practice' has the meaning given such 
     term in section 1877(h)(4) of the Social Security Act.
       ``(ii) The term `physician' has the meaning given such term 
     in section 1861(r) of the Social Security Act.
       ``(H)(i) This paragraph takes effect on the date of the 
     enactment of the Methamphetamine Anti-Proliferation Act of 
     1999, and remains in effect thereafter except as provided in 
     clause (iii) (relating to a decision by the Secretary or the 
     Attorney General that this paragraph should not remain in 
     effect).
       ``(ii) For the purposes relating to clause (iii), the 
     Secretary and the Attorney General shall, during the 3-year 
     period beginning on the date of the enactment of the 
     Methamphetamine Anti-Proliferation Act of 1999, make 
     determinations in accordance with the following:
       ``(I)(aa) The Secretary shall--
       ``(aaa) make a determination of whether treatments provided 
     under waivers under subparagraph (A) have been effective 
     forms of maintenance treatment and detoxification treatment 
     in clinical settings;
       ``(bbb) make a determination regarding whether such waivers 
     have significantly increased (relative to the beginning of 
     such period) the availability of maintenance treatment and 
     detoxification treatment; and
       ``(ccc) make a determination regarding whether such waivers 
     have adverse consequences for the public health.
       ``(bb) In making determinations under this subclause, the 
     Secretary--
       ``(aaa) may collect data from the practitioners for whom 
     waivers under subparagraph (A) are in effect;
       ``(bbb) shall issue appropriate guidelines or regulations 
     (in accordance with procedures for substantive rules under 
     section 553 of title 5, United States Code) specifying the 
     scope of the data that will be required to be provided under 
     this subclause and the means through which the data will be 
     collected; and
       ``(ccc) shall, with respect to collecting such data, comply 
     with applicable provisions of chapter 6 of title 5, United 
     States Code (relating to a regulatory flexibility analysis), 
     and of chapter 8 of such title (relating to congressional 
     review of agency rulemaking).
       ``(II) The Attorney General shall--
       ``(aa) make a determination of the extent to which there 
     have been violations of the numerical limitations established 
     under subparagraph (B) for the number of individuals to whom 
     a practitioner may provide treatment; and
       ``(bb) make a determination regarding whether waivers under 
     subparagraph (A) have increased (relative to the beginning of 
     such period) the extent to which narcotic drugs in schedule 
     III, IV, or V, or combinations of such drugs, are being 
     dispensed or prescribed, or possessed, in violation of this 
     Act.
       ``(iii) If, before the expiration of the period specified 
     in clause (ii), the Secretary or the Attorney General 
     publishes in the Federal Register a decision, made on the 
     basis of determinations under such clause, that this 
     paragraph should not remain in effect, this paragraph ceases 
     to be in effect 60 days after the date on which the decision 
     is so published. The Secretary shall, in making any such 
     decision, consult with the Attorney General, and shall, in 
     publishing the decision in the Federal Register, include any 
     comments received from the Attorney General for inclusion in 
     the publication. The Attorney General shall, in making any 
     such decision, consult with the Secretary, and shall, in 
     publishing the decision in the Federal Register, include any 
     comments received from the Secretary for inclusion in the 
     publication.
       ``(I) During the 3-year period beginning on the date of the 
     enactment of the Methamphetamine Anti-Proliferation Act of 
     1999, a State may not preclude a practitioner from dispensing 
     or prescribing narcotic drugs in schedule III, IV, or V, or 
     combinations of such drugs, to patients for maintenance or 
     detoxification treatment in accordance with this paragraph, 
     or the other amendments made by section 22 of that Act, 
     unless, before the expiration of that 3-year period, the 
     State enacts a law prohibiting a practitioner from dispensing 
     or prescribing such drugs or combination of drugs.''.
       (b) Conforming Amendments.--Section 304 of the Controlled 
     Substances Act (21 U.S.C. 824) is amended--
       (1) in subsection (a), in the matter following paragraph 
     (5), by striking ``section 303(g)'' each place the term 
     appears and inserting ``section 303(g)(1)''; and
       (2) in subsection (d), by striking ``section 303(g)'' and 
     inserting ``section 303(g)(1)''.
       (c) Authorization of Appropriations.--There is hereby 
     authorized to be appropriated for purposes of activities 
     under section 303(g)(2) of the Controlled Substances Act, as 
     added by subsection (a), amounts as follows:
       (1) For fiscal year 2000, $3,000,000.
       (2) For each fiscal year after fiscal year 2000, such sums 
     as may be necessary for such fiscal year.

                       Subtitle C--Cocaine Powder

     SEC. __71. SHORT TITLE.

       This subtitle may be cited as the ``Powder Cocaine 
     Sentencing Act of 1999''.

     SEC. __72. SENTENCING FOR VIOLATIONS INVOLVING COCAINE 
                   POWDER.

       (a) Amendment of Controlled Substances Act.--
       (1) Large quantities.--Section 401(b)(1)(A)(ii) of the 
     Controlled Substances Act (21 U.S.C. 841(b)(1)(A)(ii)) is 
     amended by striking ``5 kilograms'' and inserting ``500 
     grams''.
       (2) Small quantities.--Section 401(b)(1)(B)(ii) of the 
     Controlled Substances Act (21 U.S.C. 841(b)(1)(B)(ii)) is 
     amended by striking ``500 grams'' and inserting ``50 grams''.
       (b) Amendment of Controlled Substances Import and Export 
     Act.--
       (1) Large quantities.--Section 1010(b)(1)(B) of the 
     Controlled Substances Import and Export Act (21 U.S.C. 
     960(b)(1)(B)) is amended by striking ``5 kilograms'' and 
     inserting ``500 grams''.
       (2) Small quantities.--Section 1010(b)(2)(B) of the 
     Controlled Substances Import and Export Act (21 U.S.C. 
     960(b)(2)(B)) is amended by striking ``500 grams'' and 
     inserting ``50 grams''.
       (c) Amendment of Sentencing Guidelines.--Pursuant to 
     section 994 of title 28, United States Code, the United 
     States Sentencing Commission shall amend the Federal 
     sentencing guidelines to reflect the amendments made by this 
     section.

                     Subtitle D--Education Matters

     SEC. __81. SAFE SCHOOLS.

       (a) Amendments.--Part F of title XIV of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8921 et seq.) is 
     amended as follows:
       (1) Short title.--Section 14601(a) is amended by replacing 
     ``Gun-Free'' with ``Safe'', and ``1994'' with ``1999''.
       (2) Requirements.--Section 14601(b)(1) is amended by 
     inserting after ``determined'' the following: ``to be in 
     possession of felonious quantities of an illegal drug, on 
     school property under the jurisdiction of, or in a vehicle 
     operated by an employee or agent of, a local educational 
     agency in that State, or''.
       (3) Definitions.--Section 14601(b)(4) is amended by 
     replacing ``Definition'' with ``Definitions'' in the 
     catchline, by replacing ``section'' in the matter under the 
     catchline with ``part'', by redesignating the matter under 
     the catchline after the comma as subparagraph (A), by 
     replacing the period with a semicolon, and by adding new 
     subparagraphs (B), (C), and (D) as follows:
       ``(B) the term `illegal drug' means a controlled substance, 
     as defined in section 102(6) of the Controlled Substances Act 
     (21 U.S.C. 802(6)), the possession of which is unlawful under 
     the Act (21 U.S.C. 801 et seq.) or under the Controlled 
     Substances Import and Export Act (21 U.S.C. 951 et seq.), but 
     does not mean a controlled substance used pursuant to a valid 
     prescription or as authorized by law; and
       ``(C) the term `illegal drug paraphernalia' means drug 
     paraphernalia, as defined in section 422(d) of the Controlled 
     Substances Act (21 U.S.C. 863(d)), except that the first 
     sentence of that section shall be applied by inserting `or 
     under the Controlled Substances Import and Export Act (21 
     U.S.C. 951 et seq.)', before the period.
       ``(D) the term `felonious quantities of an illegal drug' 
     means any quantity of an illegal drug--
       ``(i) possession of which quantity would, under Federal, 
     State, or local law, either constitute a felony or indicate 
     an intent to distribute; or
       ``(ii) that is possessed with an intent to distribute.''.
       (4) Report to state.--Section 14601(d)(2)(C) is amended by 
     inserting ``illegal drugs or'' before ``weapons''.
       (5) Repealer.--Section 14601 is amended by striking 
     subsection (f).
       (6) Policy regarding criminal justice system referral.--
     Section 14602(a) is amended by replacing ``served by'' with 
     ``under the jurisdiction of'', and by inserting after ``who'' 
     the following: ``is in possession of an illegal drug, or 
     illegal drug paraphernalia, on school property under the 
     jurisdiction of, or in a vehicle operated by an employee or 
     agent of, such agency, or who''.
       (7) Data and policy dissemination under idea.--Section 
     14603 is amended by inserting ``current'' before ``policy'', 
     by striking ``in effect on October 20, 1994'', by striking 
     all the matter after ``schools'' and inserting a period 
     thereafter, and by inserting before ``engaging'' the 
     following: ``possessing illegal drugs, or illegal drug 
     paraphernalia, on school property, or in vehicles operated by 
     employees or agents of, schools or local educational 
     agencies, or''.
       (b) Compliance Date; Reporting.--(1) States shall have 2 
     years from the date of the enactment of this Act to comply 
     with the requirements established in the amendments made by 
     subsection (a).
       (2) Not later than 3 years after the date of the enactment 
     of this Act, the Secretary of Education shall submit to 
     Congress a report on any State that is not in compliance with 
     the requirements of this section.
       (3) Not later than 2 years after the date of the enactment 
     of this Act, the Secretary of Education shall submit to 
     Congress a report analyzing the strengths and weaknesses of 
     approaches regarding the disciplining of children with 
     disabilities.

[[Page 28831]]



     SEC. __82. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.

       Subpart 1 of part A of title I of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) is 
     amended by inserting after section 1115A of such Act (20 
     U.S.C. 6316) the following:

     ``SEC. 1115B. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.

       ``(a) In General.--Notwithstanding any other provision of 
     law, if a student is eligible to be served under section 
     1115(b), or attends a school eligible for a schoolwide 
     program under section 1114, and becomes a victim of a violent 
     criminal offense, including drug-related violence, while in 
     or on the grounds of a public elementary school or secondary 
     school that the student attends and that receives assistance 
     under this part, then the local educational agency may use 
     funds provided under this part or under any other Federal 
     education program to pay the supplementary costs for such 
     student to attend another school. The agency may use the 
     funds to pay for the supplementary costs of such student to 
     attend any other public or private elementary school or 
     secondary school, including a religious school, in the same 
     State as the school where the criminal offense occurred, that 
     is selected by the student's parent. The State educational 
     agency shall determine what actions constitute a violent 
     criminal offense for purposes of this section.
       ``(b) Supplementary Costs.--The supplementary costs 
     referred to in subsection (a) shall not exceed--
       ``(1) in the case of a student for whom funds under this 
     section are used to enable the student to attend a public 
     elementary school or secondary school served by a local 
     educational agency that also serves the school where the 
     violent criminal offense occurred, the costs of supplementary 
     educational services and activities described in section 
     1114(b) or 1115(c) that are provided to the student;
       ``(2) in the case of a student for whom funds under this 
     section are used to enable the student to attend a public 
     elementary school or secondary school served by a local 
     educational agency that does not serve the school where the 
     violent criminal offense occurred but is located in the same 
     State--
       ``(A) the costs of supplementary educational services and 
     activities described in section 1114(b) or 1115(c) that are 
     provided to the student; and
       ``(B) the reasonable costs of transportation for the 
     student to attend the school selected by the student's 
     parent; and
       ``(3) in the case of a student for whom funds under this 
     section are used to enable the student to attend a private 
     elementary school or secondary school, including a religious 
     school, the costs of tuition, required fees, and the 
     reasonable costs of such transportation.
       ``(c) Construction.--Nothing in this Act or any other 
     Federal law shall be construed to prevent a parent assisted 
     under this section from selecting the public or private, 
     including religious, elementary school or secondary school 
     that a child of the parent will attend within the State.
       ``(d) Consideration of Assistance.--Subject to subsection 
     (h), assistance made available under this section that is 
     used to pay the costs for a student to attend a private or 
     religious school shall not be considered to be Federal aid to 
     the school, and the Federal Government shall have no 
     authority to influence or regulate the operations of a 
     private or religious school as a result of assistance 
     received under this section.
       ``(e) Continuing Eligibility.--A student assisted under 
     this section shall remain eligible to continue receiving 
     assistance under this section for at least 3 academic years 
     without regard to whether the student is eligible for 
     assistance under section 1114 or 1115(b).
       ``(f) Tuition Charges.--Assistance under this section may 
     not be used to pay tuition or required fees at a private 
     elementary school or secondary school in an amount that is 
     greater than the tuition and required fees paid by students 
     not assisted under this section at such school.
       ``(g) Special Rule.--Any school receiving assistance 
     provided under this section shall comply with title VI of the 
     Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and not 
     discriminate on the basis race, color, or national origin.
       ``(h) Assistance; Taxes and Other Federal Programs.--
       ``(1) Assistance to families, not schools.--Assistance 
     provided under this section shall be considered to be aid to 
     families, not schools. Use of such assistance at a school 
     shall not be construed to be Federal financial aid or 
     assistance to that school.
       ``(2) Taxes and determinations of eligibility for other 
     federal programs.--Assistance provided under this section to 
     a student shall not be considered to be income of the student 
     or the parent of such student for Federal, State, or local 
     tax purposes or for determining eligibility for any other 
     Federal program.
       ``(i) Part B of the Individuals With Disabilities Education 
     Act.--Nothing in this section shall be construed to affect 
     the requirements of part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.).
       ``(j) Maximum Amount.--Notwithstanding any other provision 
     of this section, the amount of assistance provided under this 
     part for a student shall not exceed the per pupil expenditure 
     for elementary or secondary education, as appropriate, by the 
     local educational agency that serves the school where the 
     criminal offense occurred for the fiscal year preceding the 
     fiscal year for which the determination is made.''.

     SEC. __83. TRANSFER OF REVENUES.

       (a) In General.--Notwithstanding any other provision of 
     Federal law, a State, a State educational agency, or a local 
     educational agency may transfer any non-Federal public funds 
     associated with the education of a student who is a victim of 
     a violent criminal offense while in or on the grounds of a 
     public elementary school or secondary school served by a 
     local educational agency to another local educational agency 
     or to a private elementary school or secondary school, 
     including a religious school.
       (b) Definitions.--For the purpose of subsection (a), the 
     terms ``elementary school'', ``secondary school'', ``local 
     educational agency'', and ``State educational agency'' have 
     the meanings given such terms in section 14101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8801).

                       Subtitle E--Miscellaneous

     SEC. __91. NOTICE; CLARIFICATION.

       (a) Notice of Issuance.--Section 3103a of title 18, United 
     States Code, is amended by adding at the end the following 
     new sentence: ``With respect to any issuance under this 
     section or any other provision of law (including section 3117 
     and any rule), any notice required, or that may be required, 
     to be given may be delayed pursuant to the standards, terms, 
     and conditions set forth in section 2705, unless otherwise 
     expressly provided by statute.''.
       (b) Clarification.--(1) Section 2(e) of Public Law 95-78 
     (91 Stat. 320) is amended by adding at the end the following:
     ``Subdivision (d) of such rule, as in effect on this date, is 
     amended by inserting `tangible' before `property' each place 
     it occurs.''.
       (2) The amendment made by paragraph (1) shall take effect 
     on the date of the enactment of this Act.

     SEC. __92. DOMESTIC TERRORISM ASSESSMENT AND RECOVERY.

       (a) In General.--The Federal Bureau of Investigation shall 
     prepare a study assessing--
       (1) the threat posed by the Fuerzas Armadas de Liberacion 
     Nacional Puertorriquena (FALN) and Los Macheteros terrorist 
     organizations to the United States and its territories as of 
     July 31, 1999; and
       (2) what effect the President's offer of clemency to 16 
     FALN and Los Macheteros members on August 11, 1999, and the 
     subsequent release of 11 of those members, will have on the 
     threat posed by those terrorist organizations to the United 
     States and its territories.
       (b) Issues Examined.--In conducting and preparing the study 
     under subsection (a), the Federal Bureau of Investigation 
     shall address--
       (1) the threat posed by the FALN and Los Macheteros 
     organizations to law enforcement officers, prosecutors, 
     defense attorneys, witnesses, and judges involved in the 
     prosecution of members of the FALN and Los Macheteros, both 
     in the United States and its territories;
       (2) the roles played by each the 16 members offered 
     clemency by the President on August 11, 1999, in the FALN and 
     Los Macheteros organizations;
       (3) the extent to which the FALN and Los Macheteros 
     organizations are associated with other known terrorist 
     organizations or countries suspected of sponsoring terrorism;
       (4) the threat posed to the national security interests of 
     the United States by the FALN and Los Macheteros 
     organizations;
       (5) whether the offer of clemency to, or release of, any of 
     the 16 FALN or Los Macheteros members would violate, or be 
     inconsistent with, the United States' obligations under 
     international treaties and agreements governing terrorist 
     activity; and
       (6) the effect on law enforcement's ability to solve open 
     cases and apprehend fugitives resulting from the offer of 
     clemency to the 16 FALN and Los Macheteros members, without 
     first requiring each of them to provide the government all 
     truthful information and evidence he or she has concerning 
     open investigations and fugitives associated with the FALN 
     and Los Macheteros organizations.
       (c) Report.--Not later than 30 days after the date of the 
     enactment of this Act, the Federal Bureau of Investigation 
     shall submit to Congress a report on the study conducted 
     under subsection (a).

     SEC. __93. ANTIDRUG MESSAGES ON FEDERAL GOVERNMENT INTERNET 
                   WEBSITES.

       Not later than 90 days after the date of the enactment of 
     this Act, the head of each department, agency, and 
     establishment of the Federal Government shall, in 
     consultation with the Director of the Office of National Drug 
     Control Policy, place antidrug messages on appropriate 
     Internet websites controlled by such department, agency, or 
     establishment which messages shall, where appropriate, 
     contain an electronic hyperlink to the Internet website, if 
     any, of the Office.

     SEC. __94. SEVERABILITY.

       Any provision of this title held to be invalid or 
     unenforceable by its terms, or as applied to any person or 
     circumstance, shall be

[[Page 28832]]

     construed as to give the maximum effect permitted by law, 
     unless such provision is held to be utterly invalid or 
     unenforceable, in which event such provision shall be severed 
     from this title and shall not affect the applicability of the 
     remainder of this title, or of such provision, to other 
     persons not similarly situated or to other, dissimilar 
     circumstances.

     SEC.   . SAFE SCHOOLS.

       (a) Amendments.--Part F of title XIV of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8921 et seq.) is 
     amended as follows:
       (1) Short title.--Section 14601(a) is amended by replacing 
     ``Gun-Free'' with ``Safe'', and ``1994'' with ``1999''.
       (2) Requirements.--Section 14601(b)(1) is amended by 
     inserting after ``determined'' the following: ``to be in 
     possession of felonious quantities of an illegal drug, on 
     school property under the jurisdiction of, or in a vehicle 
     operated by an employee or agent of, a local educational 
     agency in that State, or''.
       (3) Definitions.--Section 14601(b)(4) is amended by 
     replacing ``Definition'' with ``Definitions'' in the 
     catchline, by replacing ``section'' in the matter under the 
     catchline with ``part'', by redesignating the matter under 
     the catchline after the comma as subparagraph (A), by 
     replacing the period with a semicolon, and by adding new 
     subparagraphs (B), (C), and (D) as follows:
       ``(B) the term `illegal drug' means a controlled substance, 
     as defined in section 102(6) of the Controlled Substances Act 
     (21 U.S.C. 802(6)), the possession of which is unlawful under 
     the Act (21 U.S.C. 801 et seq.) or under the Controlled 
     Substances Import and Export Act (21 U.S.C. 951 et seq.), but 
     does not mean a controlled substance used pursuant to a valid 
     prescription or as authorized by law; and
       ``(C) the term `illegal drug paraphernalia' means drug 
     paraphernalia, as defined in section 422(d) of the Controlled 
     Substances Act (21 U.S.C. 863(d)), except that the first 
     sentence of that section shall be applied by inserting `or 
     under the Controlled Substances Import and Export Act (21 
     U.S.C. 951 et seq.)'. before the period.
       ``(D) the term `felonious quantities of an illegal drug' 
     means any quantity of an illegal drug--
       ``(i) possession of which quantity would, under Federal, 
     State, or local law, either constitute a felony or indicate 
     an intent to distribute; or
       ``(ii) that is possessed with an intent to distribute.''.
       (4) Report to state.--Section 14601(d)(2)(C) is amended by 
     inserting ``illegal drugs or'' before ``weapons''.
       (5) Repealer.--Section 14601 is amended by striking 
     subsection (f).
       (6) Policy regarding criminal justice system referral.--
     Section 14602(a) is amended by replacing ``served by'' with 
     ``under the jurisdiction of'', and by inserting after ``who'' 
     the following: ``is in possession of an illegal drug, or 
     illegal drug paraphernalia, on school property under the 
     jurisdiction of, or in a vehicle operated by an employee or 
     agent of, such agency, or who''.
       (7) Data and policy dissemination under idea.--Section 
     14603 is amended by inserting ``current'' before ``policy'', 
     by striking ``in effect on October 20, 1994'', by striking 
     all the matter after ``schools'' and inserting a period 
     thereafter, and by inserting before ``engaging'' the 
     following: ``possessing illegal drugs, or illegal drug 
     paraphernalia, on school property, or in vehicles operated by 
     employees or agents of, schools or local educational 
     agencies, or''.
       (b) Compliance Date; Reporting.--(1) States shall have 2 
     years from the date of enactment of this Act to comply with 
     the requirements established in the amendments made by 
     subsection (a).
       (2) Not later than 3 years after the date of enactment of 
     this Act, the Secretary of Education shall submit to Congress 
     a report on any State that is not in compliance with the 
     requirements of this part.
       (3) Not later than 2 years after the date of enactment of 
     this Act, the Secretary of Education shall submit to Congress 
     a report analyzing the strengths and weaknesses of approaches 
     regarding the disciplining of children with disabilities.

     SEC  STUDENT SAFETY AND FAMILY SCHOOL CHOICE.

       (a) In General.--Subpart 1 of part A of title I of the 
     Elementary and Secondary Education of 1965 (20 U.S.C. 6311 et 
     seq.) is amended by inserting after section 1115A of such Act 
     (20 U.S.C. 6316) the following:

     ``SEC. 1115B. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.

       ``(A) In General.--Notwithstanding any other provision of 
     law. if a student is eligible to be served under section 
     1115(b), or attends a school eligible for a schoolwide 
     program under section 1114, and becomes a victim of a violent 
     criminal offense, including drug-related violence, while in 
     or on the grounds of a public elementary school or secondary 
     school that the student attends and that receives assistance 
     under this part, then the local educational agency may use 
     funds provided under this part or under any other Federal 
     education program to pay the supplementary costs for such 
     student to attend another school. The agency may use the 
     funds to pay for the supplementary costs of such student to 
     attend any other public or private elementary school or 
     secondary school, including a religious school. In the same 
     State as the school where the criminal offense occurred, that 
     is selected by the students parent. The State educational 
     agency shall determine what actions constitute a violent 
     criminal offense for purposes of this section.
       (b) Supplementary Costs.--The supplementary costs referred 
     to in subsection (a) shall not exceed--
       ``(1) in the case of a student for whom funds under this 
     section are used to enable the student to attend a public 
     elementary school or secondary school served by a local 
     educational agency that also serves the school where the 
     violent criminal offense occurred, the costs of supplementary 
     educational services and activities described in section 
     1114(b) or 1115(c) that are provided to the student;
       ``(2) in the case of a student for whom funds under this 
     section are used to enable the student to attend a public 
     elementary school or secondary school served by a local 
     educational agency that does not serve the school where the 
     violent criminal offense occurred but is located in the same 
     State--
       ``(A) the costs of supplementary educational services and 
     activities described in section 1114(b) or 1115(c) that are 
     provided to the student; and
       ``(B) the reasonable costs of transportation for the 
     student to attend the school selected by the student's 
     parent; and
       ``(3) in the case of a student for whom funds under this 
     section are used to enable the student to attend a private 
     elementary school or secondary school, including a religious 
     school, the costs of tuition, required fees, and the 
     reasonable costs of such transportation.
       ``(c) Construction.--Nothing in this Act or any other 
     Federal law shall be construed to prevent a parent assisted 
     under this section from selecting the public or private, 
     including religious, elementary school or secondary school 
     that a child of the parent will attend within the State.
       ``(d) Consideration of Assistance.--Subject to subsection 
     (h), assistance made available under this section that is 
     used to pay the costs for a student to attend a private or 
     religious school shall not be considered to be Federal aid to 
     the school, and the Federal Government shall have no 
     authority to influence or regulate the operations of a 
     private or religious school as a result of assistance 
     received under this section.
       ``(e) Continuing Eligibility.--A student assisted under 
     this section shall remain eligible to continue receiving 
     assistance under this section for at least 3 academic years 
     without regard to whether the student is eligible for 
     assistance under section 1114 or 1115(b).
       ``(f) Tuition Charges.--Assistance under this section may 
     not be used to pay tuition or required fees at a private 
     elementary school or secondary school in an amount that is 
     greater than the tuition and required fees paid by students 
     not assisted under this section at such school.
       ``(g) Special Rule.--Any school receiving assistance 
     provided under this section shall comply with title VI of the 
     Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and not 
     discriminate on the basis of race, color, or national origin.
       ``(h) Assistance: Taxes and Other Federal Programs.--
       ``(1) Assistance to families, not schools.--Assistance 
     provided under this section shall be considered to be aid to 
     families, not schools. Use of such assistance at a school 
     shall not be construed to be Federal financial aid or 
     assistance to that school.
       ``(2) Taxes and determinations of eligibility for other 
     federal programs.--Assistance provided under this section to 
     a student shall not be considered to be income of the student 
     or the parent of such student for Federal, State, or local 
     tax purposes or for determining eligibility for any other 
     Federal program.
       ``(i) Part B of the Individuals With Disabilities Education 
     Act.--Nothing in this section shall be construed to affect 
     the requirements of part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.).
       ``(j) Maximum Amount.--Notwithstanding any other provision 
     of this section, the amount of assistance provided under this 
     part for a student shall not exceed the per pupil expenditure 
     for elementary or secondary education, as appropriate, by the 
     local educational agency that serves the school where the 
     criminal offense occurred for the fiscal year preceding the 
     fiscal year for which the determination is made.''.

     SEC.   . TRANSFER OF REVENUES.

       (a) In General.--Notwithstanding any other provision of 
     Federal law, a State, a State educational agency, or a local 
     educational agency may transfer any non-Federal public funds 
     associated with the education of a student who is a victim of 
     a violent criminal offense while in or on the grounds of a 
     public elementary school or secondary school served by a 
     local educational agency to another local educational agency 
     or to a private elementary school or secondary school, 
     including a religious school
       (b) Definitions.--For the purpose of subsection (a), the 
     terms ``elementary school'',

[[Page 28833]]

     ``secondary school'', ``local educational agency'', and 
     ``State educational agency'' have the meanings given such 
     terms in section 14101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8801).

     SEC.   . INCREASED PENALTIES FOR DISTRIBUTING DRUGS TO 
                   MINORS.

       Section 418 of the Controlled Substances Act (21 U.S.C. 
     859) is amended--
       (1) in subsection (a), by striking ``one year'' and 
     inserting ``3 years''; and
       (2) in subsection (b), by striking ``one year'' and 
     inserting ``5 years.''

     SEC.   . INCREASED PENALTY FOR DRUG TRAFFICKING IN OR NEAR A 
                   SCHOOL OR OTHER PROTECTED LOCATION.

       Section 419 of the Controlled Substances Act (21 U.S.C. 
     860) is amended--
       (1) in subsection (a), by striking ``one year'' and 
     inserting ``3 years''; and
       (2) in subsection (b), by striking ``three years'' each 
     place that term appears and inserting ``5 years''.
                                 ______
                                 

                        LEVIN AMENDMENT NO. 2772

  (Ordered to lie on the table.)
  Mr. LEVIN submitted an amendment intended to be proposed by him to 
the bill, S. 625, supra; as follows:

       At the appropriate place, insert the following:
       The Federal Trade Commission shall report to the Banking 
     Committee of Congress within 6 months of enactment of this 
     act as to whether and how the location of the resident of an 
     applicant for a credit card is considered by financial 
     institutions in deciding whether an applicant should be 
     granted such credit card.

                          ____________________