[Congressional Record (Bound Edition), Volume 146 (2000), Part 10]
[Senate]
[Pages 14461-14485]
[From the U.S. Government Publishing Office, www.gpo.gov]



                          AMENDMENTS SUBMITTED

                                 ______
                                 

                    MARRIAGE PENALTY TAX RELIEF ACT

                                 ______
                                 

                   FEINGOLD AMENDMENTS NOS. 3845-3846

  Mr. FEINGOLD proposed two amendments to the bill (H.R. 4810) to 
provide for reconciliation pursuant to section 103(a)(1) of the 
concurrent resolution on the budget for fiscal year 2001; as follows:

                           Amendment No. 3845

       Beginning on page 2, line 5, strike all through page 5, 
     line 11, and insert:

     SEC. 2. ELIMINATION OF MARRIAGE PENALTY IN STANDARD 
                   DEDUCTION.

       (a) In General.--Paragraph (2) of section 63(c) of the 
     Internal Revenue Code of 1986 (relating to standard 
     deduction) is amended--
       (1) by striking ``$5,000'' in subparagraph (A) and 
     inserting ``200 percent of the dollar amount in effect under 
     subparagraph (C) for the taxable year'';
       (2) by striking ``$4,400'' in subparagraph (B) and 
     inserting ``$7,500'';
       (3) by adding ``or'' at the end of subparagraph (B);
       (4) by striking ``$3,000 in the case of'' and all that 
     follows in subparagraph (C) and inserting ``$4,750 in any 
     other case.''; and
       (5) by striking subparagraph (D).
       (b) Technical Amendments.--
       (1) Section 63(c)(4) of such Code is amended by adding at 
     the end the following flush sentence:

     ``The preceding sentence shall not apply to the amount 
     referred to in paragraph (2)(A).''.
       (2) Section 63(c)(4)(B) of such Code is amended--
       (A) by redesignating clause (ii) as clause (iii); and
       (B) by striking clause (i) and inserting:
       ``(i) `calendar year 2000' in the case of the dollar 
     amounts contained in paragraph (2),
       ``(ii) `calendar year 1987' in the case of the dollar 
     amounts contained in paragraph (5)(A) or subsection (f), 
     and''.
       (3) Subparagraph (B) of section 1(f )(6) of such Code is 
     amended by striking ``(other than with'' and all that follows 
     through ``shall be applied'' and inserting ``(other than with 
     respect to sections 63(c)(4) and 151(d)(4)(A)) shall be 
     applied''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.
                                  ____


                           Amendment No. 3846

       At the end of the bill, add the following:

                 TITLE II--COBRA CONTINUATION COVERAGE

               Subtitle A--Tax Credit for Insurance Costs

     SEC. 201. CREDIT FOR HEALTH INSURANCE COSTS OF INDIVIDUALS 
                   WITH COBRA COVERAGE.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     nonrefundable personal credits) is amended by inserting after 
     section 25A the following new section:

     ``SEC. 25B. HEALTH INSURANCE COSTS OF INDIVIDUALS WITH COBRA 
                   COVERAGE.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for the taxable year an amount equal to 25 percent of 
     the amount paid during the taxable year for coverage for the 
     taxpayer, his spouse, and dependents under qualified health 
     insurance.
       ``(b) Limitation on Coverage.--Amounts paid for coverage of 
     an individual for any month shall not be taken into account 
     under subsection (a) if, as of the first day of such month, 
     such individual is covered under any medical care program 
     described in--
       ``(1) title XVIII, XIX, or XXI of the Social Security Act,
       ``(2) chapter 55 of title 10, United States Code,
       ``(3) chapter 17 of title 38, United States Code,
       ``(4) chapter 89 of title 5, United States Code, or
       ``(5) the Indian Health Care Improvement Act.
       ``(c) Qualified Health Insurance.--For purposes of this 
     section, the term `qualified health insurance' means health 
     insurance coverage (as defined under section 9832(b)(1)(A)) 
     which constitutes continuation coverage under a group health 
     plan which is required to be provided by Federal law for an 
     individual during the period specified in section 
     4980B(f)(2)(B).
       ``(d) Special Rules.--
       ``(1) Coordination with other deductions.--No credit shall 
     be allowed under this section for the taxable year if any 
     amount paid for qualified health insurance is taken into 
     account in determining the deduction allowed for such year 
     under section 213 or 220.
       ``(2) Denial of credit to dependents.--No credit shall be 
     allowed under this section to any individual with respect to 
     whom a deduction under section 151 is allowable to another 
     taxpayer for a taxable year beginning in the calendar year in 
     which such individual's taxable year begins.''.
       (b) Regulations.--The Secretary of the Treasury shall 
     promulgate such regulations as necessary to carry out the 
     provisions of this section, including reporting requirements 
     for employers.
       (c) Clerical Amendment.--The table of sections for subpart 
     A part IV of subchapter A of chapter 1 of such Code is 
     amended by inserting after the item relating to section 25A 
     the following new item:

``Sec. 25B. Health insurance costs of individuals with COBRA 
              coverage.''

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

            Subtitle B--COBRA Protection for Early Retirees

CHAPTER 1--AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 
                                  1974

     SEC. 211. COBRA CONTINUATION BENEFITS FOR CERTAIN RETIRED 
                   WORKERS WHO LOSE RETIREE HEALTH COVERAGE.

       (a) Establishment of New Qualifying Event.--
       (1) In general.--Section 603 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1163) is amended by 
     inserting after paragraph (6) the following new paragraph:
       ``(7) The termination or substantial reduction in benefits 
     (as defined in section 607(7)) of group health plan coverage 
     as a result of

[[Page 14462]]

     plan changes or termination in the case of a covered employee 
     who is a qualified retiree.''.
       (2) Qualified retiree; qualified beneficiary; and 
     substantial reduction defined.--Section 607 of such Act (29 
     U.S.C. 1167) is amended--
       (A) in paragraph (3)--
       (i) in subparagraph (A), by inserting ``except as otherwise 
     provided in this paragraph,'' after ``means,''; and
       (ii) by adding at the end the following new subparagraph:
       ``(D) Special rule for qualifying retirees and 
     dependents.--In the case of a qualifying event described in 
     section 603(7), the term `qualified beneficiary' means a 
     qualified retiree and any other individual who, on the day 
     before such qualifying event, is a beneficiary under the plan 
     on the basis of the individual's relationship to such 
     qualified retiree.''; and
       (B) by adding at the end the following new paragraphs:
       ``(6) Qualified retiree.--The term `qualified retiree' 
     means, with respect to a qualifying event described in 
     section 603(7), a covered employee who, at the time of the 
     event--
       ``(A) has attained 55 years of age; and
       ``(B) was receiving group health coverage under the plan by 
     reason of the retirement of the covered employee.
       ``(7) Substantial reduction.--The term `substantial 
     reduction'--
       ``(A) means, as determined under regulations of the 
     Secretary and with respect to a qualified beneficiary, a 
     reduction in the average actuarial value of benefits under 
     the plan (through reduction or elimination of benefits, an 
     increase in premiums, deductibles, copayments, and 
     coinsurance, or any combination thereof), since the date of 
     commencement of coverage of the beneficiary by reason of the 
     retirement of the covered employee (or, if later, July 12, 
     2000), in an amount equal to at least 50 percent of the total 
     average actuarial value of the benefits under the plan as of 
     such date (taking into account an appropriate adjustment to 
     permit comparison of values over time); and
       ``(B) includes an increase in premiums required to an 
     amount that exceeds the premium level described in the fourth 
     sentence of section 602(3).''.
       (b) Duration of Coverage Through Age 65.--Section 602(2)(A) 
     of such Act (29 U.S.C. 1162(2)(A)) is amended--
       (1) in clause (ii), by inserting ``or 603(7)'' after 
     ``603(6)'';
       (2) in clause (iv), by striking ``or 603(6)'' and inserting 
     ``, 603(6), or 603(7)'';
       (3) by redesignating clause (iv) as clause (vi);
       (4) by redesignating clause (v) as clause (iv) and by 
     moving such clause to immediately follow clause (iii); and
       (5) by inserting after such clause (iv) the following new 
     clause:
       ``(v) Special rule for certain beneficiaries in case of 
     termination or substantial reduction of retiree health 
     coverage.--In the case of a qualifying event described in 
     section 603(7), in the case of a qualified beneficiary 
     described in section 607(3)(D) who is not the qualified 
     retiree or spouse of such retiree, the later of--

       ``(I) the date that is 36 months after the earlier of the 
     date the qualified retiree becomes entitled to benefits under 
     title XVIII of the Social Security Act, or the date of the 
     death of the qualified retiree; or

       ``(II) the date that is 36 months after the date of the 
     qualifying event.''.

       (c) Type of Coverage in Case of Termination or Substantial 
     Reduction of Retiree Health Coverage.--Section 602(1) of such 
     Act (29 U.S.C. 1162(1)) is amended--
       (1) by striking ``The coverage'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     the coverage''; and
       (2) by adding at the end the following:
       ``(B) Certain retirees.--In the case of a qualifying event 
     described in section 603(7), in applying the first sentence 
     of subparagraph (A) and the fourth sentence of paragraph (3), 
     the coverage offered that is the most prevalent coverage 
     option (as determined under regulations of the Secretary) 
     continued under the group health plan (or, if none, under the 
     most prevalent other plan offered by the same plan sponsor) 
     shall be treated as the coverage described in such sentence, 
     or (at the option of the plan and qualified beneficiary) such 
     other coverage option as may be offered and elected by the 
     qualified beneficiary involved.''.
       (d) Increased Level of Premiums Permitted.--Section 602(3) 
     of such Act (29 U.S.C. 1162(3)) is amended by adding at the 
     end the following new sentence: ``In the case of an 
     individual provided continuation coverage by reason of a 
     qualifying event described in section 603(7), any reference 
     in subparagraph (A) of this paragraph to `102 percent of the 
     applicable premium' is deemed a reference to `125 percent of 
     the applicable premium for employed individuals (and their 
     dependents, if applicable) for the coverage option referred 
     to in paragraph (1)(B)'.''.
       (e) Notice.--Section 606(a) of such Act (29 U.S.C. 1166) is 
     amended--
       (1) in paragraph (4)(A), by striking ``or (6)'' and 
     inserting ``(6), or (7)''; and
       (2) by adding at the end the following:
     ``The notice under paragraph (4) in the case of a qualifying 
     event described in section 603(7) shall be provided at least 
     90 days before the date of the qualifying event.''.
       (f) Effective Dates.--
       (1) In general.--The amendments made by this section (other 
     than subsection (e)(2)) shall apply to qualifying events 
     occurring on or after July 12, 2000. In the case of a 
     qualifying event occurring on or after such date and before 
     the date of the enactment of this Act, such event shall be 
     deemed (for purposes of such amendments) to have occurred on 
     the date of the enactment of this Act.
       (2) Advance notice of terminations and reductions.--The 
     amendment made by subsection (e)(2) shall apply to qualifying 
     events occurring after the date of the enactment of this Act, 
     except that in no case shall notice be required under such 
     amendment before such date.

         CHAPTER 2--AMENDMENTS TO THE PUBLIC HEALTH SERVICE ACT

     SEC. 221. COBRA CONTINUATION BENEFITS FOR CERTAIN RETIRED 
                   WORKERS WHO LOSE RETIREE HEALTH COVERAGE.

       (a) Establishment of New Qualifying Event.--
       (1) In general.--Section 2203 of the Public Health Service 
     Act (42 U.S.C. 300bb-3) is amended by inserting after 
     paragraph (5) the following new paragraph:
       ``(6) The termination or substantial reduction in benefits 
     (as defined in section 2208(6)) of group health plan coverage 
     as a result of plan changes or termination in the case of a 
     covered employee who is a qualified retiree.''.
       (2) Qualified retiree; qualified beneficiary; and 
     substantial reduction defined.--Section 2208 of such Act (42 
     U.S.C. 300bb-8) is amended--
       (A) in paragraph (3)--
       (i) in subparagraph (A), by inserting ``except as otherwise 
     provided in this paragraph,'' after ``means,''; and
       (ii) by adding at the end the following new subparagraph:
       ``(C) Special rule for qualifying retirees and 
     dependents.--In the case of a qualifying event described in 
     section 2203(6), the term `qualified beneficiary' means a 
     qualified retiree and any other individual who, on the day 
     before such qualifying event, is a beneficiary under the plan 
     on the basis of the individual's relationship to such 
     qualified retiree.''; and
       (B) by adding at the end the following new paragraphs:
       ``(5) Qualified retiree.--The term `qualified retiree' 
     means, with respect to a qualifying event described in 
     section 2203(6), a covered employee who, at the time of the 
     event--
       ``(A) has attained 55 years of age; and
       ``(B) was receiving group health coverage under the plan by 
     reason of the retirement of the covered employee.
       ``(6) Substantial reduction.--The term `substantial 
     reduction'--
       ``(A) means, as determined under regulations of the 
     Secretary of Labor and with respect to a qualified 
     beneficiary, a reduction in the average actuarial value of 
     benefits under the plan (through reduction or elimination of 
     benefits, an increase in premiums, deductibles, copayments, 
     and coinsurance, or any combination thereof), since the date 
     of commencement of coverage of the beneficiary by reason of 
     the retirement of the covered employee (or, if later, July 
     12, 2000), in an amount equal to at least 50 percent of the 
     total average actuarial value of the benefits under the plan 
     as of such date (taking into account an appropriate 
     adjustment to permit comparison of values over time); and
       ``(B) includes an increase in premiums required to an 
     amount that exceeds the premium level described in the fourth 
     sentence of section 2202(3).''.
       (b) Duration of Coverage Through Age 65.--Section 
     2202(2)(A) of such Act (42 U.S.C. 300bb-2(2)(A)) is amended--
       (1) by redesignating clause (iii) as clause (iv); and
       (2) by inserting after clause (ii) the following new 
     clause:
       ``(iii) Special rule for certain beneficiaries in case of 
     termination or substantial reduction of retiree health 
     coverage.--In the case of a qualifying event described in 
     section 2203(6), in the case of a qualified beneficiary 
     described in section 2208(3)(C) who is not the qualified 
     retiree or spouse of such retiree, the later of--

       ``(I) the date that is 36 months after the earlier of the 
     date the qualified retiree becomes entitled to benefits under 
     title XVIII of the Social Security Act, or the date of the 
     death of the qualified retiree; or
       ``(II) the date that is 36 months after the date of the 
     qualifying event.''.

       (c) Type of Coverage in Case of Termination or Substantial 
     Reduction of Retiree Health Coverage.--Section 2202(1) of 
     such Act (42 U.S.C. 300bb-2(1)) is amended--
       (1) by striking ``The coverage'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     the coverage''; and
       (2) by adding at the end the following:
       ``(B) Certain retirees.--In the case of a qualifying event 
     described in section 2203(6), in applying the first sentence 
     of subparagraph (A) and the fourth sentence of paragraph (3), 
     the coverage offered that is the

[[Page 14463]]

     most prevalent coverage option (as determined under 
     regulations of the Secretary of Labor) continued under the 
     group health plan (or, if none, under the most prevalent 
     other plan offered by the same plan sponsor) shall be treated 
     as the coverage described in such sentence, or (at the option 
     of the plan and qualified beneficiary) such other coverage 
     option as may be offered and elected by the qualified 
     beneficiary involved.''.
       (d) Increased Level of Premiums Permitted.--Section 2202(3) 
     of such Act (42 U.S.C. 300bb-2(3)) is amended by adding at 
     the end the following new sentence: ``In the case of an 
     individual provided continuation coverage by reason of a 
     qualifying event described in section 2203(6), any reference 
     in subparagraph (A) of this paragraph to `102 percent of the 
     applicable premium' is deemed a reference to `125 percent of 
     the applicable premium for employed individuals (and their 
     dependents, if applicable) for the coverage option referred 
     to in paragraph (1)(B)'.''.
       (e) Notice.--Section 2206(a) of such Act (42 U.S.C. 300bb-
     6(a)) is amended--
       (1) in paragraph (4)(A), by striking ``or (4)'' and 
     inserting ``(4), or (6)''; and
       (2) by adding at the end the following:
     ``The notice under paragraph (4) in the case of a qualifying 
     event described in section 2203(6) shall be provided at least 
     90 days before the date of the qualifying event.''.
       (f) Effective Dates.--
       (1) In general.--The amendments made by this section (other 
     than subsection (e)(2)) shall apply to qualifying events 
     occurring on or after July 12, 2000. In the case of a 
     qualifying event occurring on or after such date and before 
     the date of the enactment of this Act, such event shall be 
     deemed (for purposes of such amendments) to have occurred on 
     the date of the enactment of this Act.
       (2) Advance notice of terminations and reductions.--The 
     amendment made by subsection (e)(2) shall apply to qualifying 
     events occurring after the date of the enactment of this Act, 
     except that in no case shall notice be required under such 
     amendment before such date.

       CHAPTER 3--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

     SEC. 231. COBRA CONTINUATION BENEFITS FOR CERTAIN RETIRED 
                   WORKERS WHO LOSE RETIREE HEALTH COVERAGE.

       (a) Establishment of New Qualifying Event.--
       (1) In general.--Section 4980B(f)(3) of the Internal 
     Revenue Code of 1986 is amended by inserting after 
     subparagraph (F) the following new subparagraph:
       ``(G) The termination or substantial reduction in benefits 
     (as defined in subsection (g)(6)) of group health plan 
     coverage as a result of plan changes or termination in the 
     case of a covered employee who is a qualified retiree.''.
       (2) Qualified retiree; qualified beneficiary; and 
     substantial reduction defined.--Section 4980B(g) of such Code 
     is amended--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by inserting ``except as otherwise 
     provided in this paragraph,'' after ``means,''; and
       (ii) by adding at the end the following new subparagraph:
       ``(E) Special rule for qualifying retirees and 
     dependents.--In the case of a qualifying event described in 
     subsection (f)(3)(G), the term `qualified beneficiary' means 
     a qualified retiree and any other individual who, on the day 
     before such qualifying event, is a beneficiary under the plan 
     on the basis of the individual's relationship to such 
     qualified retiree.''; and
       (B) by adding at the end the following new paragraphs:
       ``(5) Qualified retiree.--The term `qualified retiree' 
     means, with respect to a qualifying event described in 
     subsection (f)(3)(G), a covered employee who, at the time of 
     the event--
       ``(A) has attained 55 years of age; and
       ``(B) was receiving group health coverage under the plan by 
     reason of the retirement of the covered employee.
       ``(6) Substantial reduction.--The term `substantial 
     reduction'--
       ``(A) means, as determined under regulations of the 
     Secretary of Labor and with respect to a qualified 
     beneficiary, a reduction in the average actuarial value of 
     benefits under the plan (through reduction or elimination of 
     benefits, an increase in premiums, deductibles, copayments, 
     and coinsurance, or any combination thereof), since the date 
     of commencement of coverage of the beneficiary by reason of 
     the retirement of the covered employee (or, if later, July 
     12, 2000), in an amount equal to at least 50 percent of the 
     total average actuarial value of the benefits under the plan 
     as of such date (taking into account an appropriate 
     adjustment to permit comparison of values over time); and
       ``(B) includes an increase in premiums required to an 
     amount that exceeds the premium level described in the fourth 
     sentence of subsection (f)(2)(C).''.
       (b) Duration of Coverage Through Age 65.--Section 
     4980B(f)(2)(B)(i) of such Code is amended--
       (1) in subclause (II), by inserting ``or (3)(G)'' after 
     ``(3)(F)'';
       (2) in subclause (IV), by striking ``or (3)(F)'' and 
     inserting ``, (3)(F), or (3)(G)'';
       (3) by redesignating subclause (IV) as subclause (VI);
       (4) by redesignating subclause (V) as subclause (IV) and by 
     moving such clause to immediately follow subclause (III); and
       (5) by inserting after such subclause (IV) the following 
     new subclause:

       ``(V) Special rule for certain beneficiaries in case of 
     termination or substantial reduction of retiree health 
     coverage.--In the case of a qualifying event described in 
     paragraph (3)(G), in the case of a qualified beneficiary 
     described in subsection (g)(1)(E) who is not the qualified 
     retiree or spouse of such retiree, the later of--

       ``(a) the date that is 36 months after the earlier of the 
     date the qualified retiree becomes entitled to benefits under 
     title XVIII of the Social Security Act, or the date of the 
     death of the qualified retiree; or
       ``(b) the date that is 36 months after the date of the 
     qualifying event.''.
       (c) Type of Coverage in Case of Termination or Substantial 
     Reduction of Retiree Health Coverage.--Section 4980B(f)(2)(A) 
     of such Code is amended--
       (1) by striking ``The coverage'' and inserting the 
     following:
       ``(i) In general.--Except as provided in clause (ii), the 
     coverage''; and
       (2) by adding at the end the following:
       ``(ii) Certain retirees.--In the case of a qualifying event 
     described in paragraph (3)(G), in applying the first sentence 
     of clause (i) and the fourth sentence of subparagraph (C), 
     the coverage offered that is the most prevalent coverage 
     option (as determined under regulations of the Secretary of 
     Labor) continued under the group health plan (or, if none, 
     under the most prevalent other plan offered by the same plan 
     sponsor) shall be treated as the coverage described in such 
     sentence, or (at the option of the plan and qualified 
     beneficiary) such other coverage option as may be offered and 
     elected by the qualified beneficiary involved.''.
       (d) Increased Level of Premiums Permitted.--Section 
     4980B(f)(2)(C) of such Code is amended by adding at the end 
     the following new sentence: ``In the case of an individual 
     provided continuation coverage by reason of a qualifying 
     event described in paragraph (3)(G), any reference in clause 
     (i) of this subparagraph to `102 percent of the applicable 
     premium' is deemed a reference to `125 percent of the 
     applicable premium for employed individuals (and their 
     dependents, if applicable) for the coverage option referred 
     to in subparagraph (A)(ii)'.''.
       (e) Notice.--Section 4980B(f)(6) of such Code is amended--
       (1) in subparagraph (D)(i), by striking ``or (F)'' and 
     inserting ``(F), or (G)''; and
       (2) by adding at the end the following:

     ``The notice under subparagraph (D)(i) in the case of a 
     qualifying event described in paragraph (3)(G) shall be 
     provided at least 90 days before the date of the qualifying 
     event.''.
       (f) Effective Dates.--
       (1) In general.--The amendments made by this section (other 
     than subsection (e)(2)) shall apply to qualifying events 
     occurring on or after July 12, 2000. In the case of a 
     qualifying event occurring on or after such date and before 
     the date of the enactment of this Act, such event shall be 
     deemed (for purposes of such amendments) to have occurred on 
     the date of the enactment of this Act.
       (2) Advance notice of terminations and reductions.--The 
     amendment made by subsection (e)(2) shall apply to qualifying 
     events occurring after the date of the enactment of this Act, 
     except that in no case shall notice be required under such 
     amendment before such date.
                                 ______
                                 

                 HARKIN (AND OTHERS) AMENDMENT NO. 3847

  Mr. HARKIN (for himself, Mr. Daschle, Mrs. Feinstein, Mr. Kennedy, 
and Mr. Reid) proposed an amendment to the bill, H.R. 4810, supra; as 
follows:

       At the end of the bill, add the following:

                      TITLE __--PAYCHECK FAIRNESS

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Paycheck Fairness Act''.

     SEC. __02. FINDINGS.

       Congress makes the following findings:
       (1) Women have entered the workforce in record numbers.
       (2) Even in the 1990's, women earn significantly lower pay 
     than men for work on jobs that require equal skill, effort, 
     and responsibility and that are performed under similar 
     working conditions. These pay disparities exist in both the 
     private and governmental sectors. In many instances, the pay 
     disparities can only be due to continued intentional 
     discrimination or the lingering effects of past 
     discrimination.
       (3) The existence of such pay disparities--
       (A) depresses the wages of working families who rely on the 
     wages of all members of the family to make ends meet;
       (B) prevents the optimum utilization of available labor 
     resources;
       (C) has been spread and perpetuated, through commerce and 
     the channels and instrumentalities of commerce, among the 
     workers of the several States;
       (D) burdens commerce and the free flow of goods in 
     commerce;
       (E) constitutes an unfair method of competition in 
     commerce;

[[Page 14464]]

       (F) leads to labor disputes burdening and obstructing 
     commerce and the free flow of goods in commerce;
       (G) interferes with the orderly and fair marketing of goods 
     in commerce; and
       (H) in many instances, may deprive workers of equal 
     protection on the basis of sex in violation of the 5th and 
     14th amendments.
       (4)(A) Artificial barriers to the elimination of 
     discrimination in the payment of wages on the basis of sex 
     continue to exist more than 3 decades after the enactment of 
     the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) 
     and the Civil Rights Act of 1964 (42 U.S.C. 2000a et seq.).
       (B) Elimination of such barriers would have positive 
     effects, including--
       (i) providing a solution to problems in the economy created 
     by unfair pay disparities;
       (ii) substantially reducing the number of working women 
     earning unfairly low wages, thereby reducing the dependence 
     on public assistance; and
       (iii) promoting stable families by enabling all family 
     members to earn a fair rate of pay;
       (iv) remedying the effects of past discrimination on the 
     basis of sex and ensuring that in the future workers are 
     afforded equal protection on the basis of sex; and
       (v) ensuring equal protection pursuant to Congress' power 
     to enforce the 5th and 14th amendments.
       (5) With increased information about the provisions added 
     by the Equal Pay Act of 1963 and wage data, along with more 
     effective remedies, women will be better able to recognize 
     and enforce their rights to equal pay for work on jobs that 
     require equal skill, effort, and responsibility and that are 
     performed under similar working conditions.
       (6) Certain employers have already made great strides in 
     eradicating unfair pay disparities in the workplace and their 
     achievements should be recognized.

     SEC. __03. ENHANCED ENFORCEMENT OF EQUAL PAY REQUIREMENTS.

       (a) Required Demonstration for Affirmative Defense.--
     Section 6(d)(1) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 206(d)(1)) is amended by striking ``(iv) a 
     differential'' and all that follows through the period and 
     inserting the following: ``(iv) a differential based on a 
     bona fide factor other than sex, such as education, training 
     or experience, except that this clause shall apply only if--
       ``(I) the employer demonstrates that--

       ``(aa) such factor--

       ``(AA) is job-related with respect to the position in 
     question; or
       ``(BB) furthers a legitimate business purpose, except that 
     this item shall not apply where the employee demonstrates 
     that an alternative employment practice exists that would 
     serve the same business purpose without producing such 
     differential and that the employer has refused to adopt such 
     alternative practice; and

       ``(bb) such factor was actually applied and used reasonably 
     in light of the asserted justification; and

       ``(II) upon the employer succeeding under subclause I, the 
     employee fails to demonstrate that the differential produced 
     by the reliance of the employer on such factor is itself the 
     result of discrimination on the basis of sex by the employer.

     ``An employer that is not otherwise in compliance with this 
     paragraph may not reduce the wages of any employee in order 
     to achieve such compliance.''.
       (b) Application of Provisions.--Section 6(d)(1) of the Fair 
     Labor Standards Act of 1938 (29 U.S.C. 206(d)(1)) is amended 
     by adding at the end the following: ``The provisions of this 
     subsection shall apply to applicants for employment if such 
     applicants, upon employment by the employer, would be subject 
     to any provisions of this section.''.
       (c) Elimination of Establishment Requirement.--Section 6(d) 
     of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(d)) is 
     amended--
       (1) by striking ``, within any establishment in which such 
     employees are employed,''; and
       (2) by striking ``in such establishment'' each place it 
     appears.
       (d) Nonretaliation Provision.--Section 15(a)(3) of the Fair 
     Labor Standards Act of 1938 (29 U.S.C. 215(a)(3)) is 
     amended--
       (1) by striking ``or has'' each place it appears and 
     inserting ``has''; and
       (2) by inserting before the semicolon the following: ``, or 
     has inquired about, discussed, or otherwise disclosed the 
     wages of the employee or another employee, or because the 
     employee (or applicant) has made a charge, testified, 
     assisted, or participated in any manner in an investigation, 
     proceeding, hearing, or action under section 6(d)''.
       (e) Enhanced Penalties.--Section 16(b) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 216(b)) is amended--
       (1) by inserting after the first sentence the following: 
     ``Any employer who violates section 6(d) shall additionally 
     be liable for such compensatory or punitive damages as may be 
     appropriate, except that the United States shall not be 
     liable for punitive damages.'';
       (2) in the sentence beginning ``An action to'', by striking 
     ``either of the preceding sentences'' and inserting ``any of 
     the preceding sentences of this subsection'';
       (3) in the sentence beginning ``No employees shall'', by 
     striking ``No employees'' and inserting ``Except with respect 
     to class actions brought to enforce section 6(d), no 
     employee'';
       (4) by inserting after the sentence referred to in 
     paragraph (3), the following: ``Notwithstanding any other 
     provision of Federal law, any action brought to enforce 
     section 6(d) may be maintained as a class action as provided 
     by the Federal Rules of Civil Procedure.''; and
       (5) in the sentence beginning ``The court in''--
       (A) by striking ``in such action'' and inserting ``in any 
     action brought to recover the liability prescribed in any of 
     the preceding sentences of this subsection''; and
       (B) by inserting before the period the following: ``, 
     including expert fees''.
       (f) Action by Secretary.--Section 16(c) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 216(c)) is amended--
       (1) in the first sentence--
       (A) by inserting ``or, in the case of a violation of 
     section 6(d), additional compensatory or punitive damages,'' 
     before ``and the agreement''; and
       (B) by inserting before the period the following: ``, or 
     such compensatory or punitive damages, as appropriate'';
       (2) in the second sentence, by inserting before the period 
     the following: ``and, in the case of a violation of section 
     6(d), additional compensatory or punitive damages'';
       (3) in the third sentence, by striking ``the first 
     sentence'' and inserting ``the first or second sentence''; 
     and
       (4) in the last sentence--
       (A) by striking ``commenced in the case'' and inserting 
     ``commenced--
       ``(1) in the case'';
       (B) by striking the period and inserting 
     ``; or''; and
       (C) by adding at the end the following:
       ``(2) in the case of a class action brought to enforce 
     section 6(d), on the date on which the individual becomes a 
     party plaintiff to the class action''.

     SEC. __04. TRAINING.

       The Equal Employment Opportunity Commission and the Office 
     of Federal Contract Compliance Programs, subject to the 
     availability of funds appropriated under section __09(b), 
     shall provide training to Commission employees and affected 
     individuals and entities on matters involving discrimination 
     in the payment of wages.

     SEC. __05. RESEARCH, EDUCATION, AND OUTREACH.

       The Secretary of Labor shall conduct studies and provide 
     information to employers, labor organizations, and the 
     general public concerning the means available to eliminate 
     pay disparities between men and women, including--
       (1) conducting and promoting research to develop the means 
     to correct expeditiously the conditions leading to the pay 
     disparities;
       (2) publishing and otherwise making available to employers, 
     labor organizations, professional associations, educational 
     institutions, the media, and the general public the findings 
     resulting from studies and other materials, relating to 
     eliminating the pay disparities;
       (3) sponsoring and assisting State and community 
     informational and educational programs;
       (4) providing information to employers, labor 
     organizations, professional associations, and other 
     interested persons on the means of eliminating the pay 
     disparities;
       (5) recognizing and promoting the achievements of 
     employers, labor organizations, and professional associations 
     that have worked to eliminate the pay disparities; and
       (6) convening a national summit to discuss, and consider 
     approaches for rectifying, the pay disparities.

     SEC. __06. TECHNICAL ASSISTANCE AND EMPLOYER RECOGNITION 
                   PROGRAM.

       (a) Guidelines.--
       (1) In general.--The Secretary of Labor shall develop 
     guidelines to enable employers to evaluate job categories 
     based on objective criteria such as educational requirements, 
     skill requirements, independence, working conditions, and 
     responsibility, including decisionmaking responsibility and 
     de facto supervisory responsibility.
       (2) Use.--The guidelines developed under paragraph (1) 
     shall be designed to enable employers voluntarily to compare 
     wages paid for different jobs to determine if the pay scales 
     involved adequately and fairly reflect the educational 
     requirements, skill requirements, independence, working 
     conditions, and responsibility for each such job with the 
     goal of eliminating unfair pay disparities between 
     occupations traditionally dominated by men or women.
       (3) Publication.--The guidelines shall be developed under 
     paragraph (1) and published in the Federal Register not later 
     than 180 days after the date of enactment of this Act.
       (b) Employer Recognition.--
       (1) Purpose.--It is the purpose of this subsection to 
     emphasize the importance of, encourage the improvement of, 
     and recognize the excellence of employer efforts to pay wages 
     to women that reflect the real value of the contributions of 
     such women to the workplace.
       (2) In general.--To carry out the purpose of this 
     subsection, the Secretary of Labor shall establish a program 
     under which the Secretary shall provide for the recognition 
     of

[[Page 14465]]

     employers who, pursuant to a voluntary job evaluation 
     conducted by the employer, adjust their wage scales (such 
     adjustments shall not include the lowering of wages paid to 
     men) using the guidelines developed under subsection (a) to 
     ensure that women are paid fairly in comparison to men.
       (3) Technical assistance.--The Secretary of Labor may 
     provide technical assistance to assist an employer in 
     carrying out an evaluation under paragraph (2).
       (c) Regulations.--The Secretary of Labor shall promulgate 
     such rules and regulations as may be necessary to carry out 
     this section.

     SEC. __07. ESTABLISHMENT OF THE NATIONAL AWARD FOR PAY EQUITY 
                   IN THE WORKPLACE.

       (a) In General.--There is established the Robert Reich 
     National Award for Pay Equity in the Workplace, which shall 
     be evidenced by a medal bearing the inscription ``Robert 
     Reich National Award for Pay Equity in the Workplace''. The 
     medal shall be of such design and materials, and bear such 
     additional inscriptions, as the Secretary of Labor may 
     prescribe.
       (b) Criteria for Qualification.--To qualify to receive an 
     award under this section a business shall--
       (1) submit a written application to the Secretary of Labor, 
     at such time, in such manner, and containing such information 
     as the Secretary may require, including at a minimum 
     information that demonstrates that the business has made 
     substantial effort to eliminate pay disparities between men 
     and women, and deserves special recognition as a consequence; 
     and
       (2) meet such additional requirements and specifications as 
     the Secretary of Labor determines to be appropriate.
       (c) Making and Presentation of Award.--
       (1) Award.--After receiving recommendations from the 
     Secretary of Labor, the President or the designated 
     representative of the President shall annually present the 
     award described in subsection (a) to businesses that meet the 
     qualifications described in subsection (b).
       (2) Presentation.--The President or the designated 
     representative of the President shall present the award under 
     this section with such ceremonies as the President or the 
     designated representative of the President may determine to 
     be appropriate.
       (d) Business.--In this section, the term ``business'' 
     includes--
       (1)(A) a corporation, including a nonprofit corporation;
       (B) a partnership;
       (C) a professional association;
       (D) a labor organization; and
       (E) a business entity similar to an entity described in any 
     of subparagraphs (A) through (D);
       (2) an entity carrying out an education referral program, a 
     training program, such as an apprenticeship or management 
     training program, or a similar program; and
       (3) an entity carrying out a joint program, formed by a 
     combination of any entities described in paragraph (1) or 
     (2).

     SEC. __08. COLLECTION OF PAY INFORMATION BY THE EQUAL 
                   EMPLOYMENT OPPORTUNITY COMMISSION.

       Section 709 of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e-8) is amended by adding at the end the following:
       ``(f)(1) Not later than 18 months after the date of 
     enactment of this subsection, the Commission shall--
       ``(A) complete a survey of the data that is currently 
     available to the Federal Government relating to employee pay 
     information for use in the enforcement of Federal laws 
     prohibiting pay discrimination and, in consultation with 
     other relevant Federal agencies, identify additional data 
     collections that will enhance the enforcement of such laws; 
     and
       ``(B) based on the results of the survey and consultations 
     under subparagraph (A), issue regulations to provide for the 
     collection of pay information data from employers as 
     described by the sex, race, and national origin of employees.
       ``(2) In implementing paragraph (1), the Commission shall 
     have as its primary consideration the most effective and 
     efficient means for enhancing the enforcement of Federal laws 
     prohibiting pay discrimination. For this purpose, the 
     Commission shall consider factors including the imposition of 
     burdens on employers, the frequency of required reports 
     (including which employers should be required to prepare 
     reports), appropriate protections for maintaining data 
     confidentiality, and the most effective format for the data 
     collection reports.''.

     SEC. __09. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to carry out this title.
                                 ______
                                 

              KENNEDY (AND ROCKEFELLER) AMENDMENT NO. 3848

  Mr. KENNEDY (for himself and Mr. Rockefeller) proposed an amendment 
to the bill, H.R. 4810, supra; as follows:

       At the end of the bill, add the following:

DIVISION __--FAMILYCARE COVERAGE OF PARENTS UNDER THE MEDICAID PROGRAM 
                               AND SCHIP

     SEC. 1. FAMILYCARE COVERAGE OF PARENTS UNDER THE MEDICAID 
                   PROGRAM AND SCHIP.

       (a) Incentives to Implement FamilyCare Coverage.--
       (1) Under medicaid.--
       (A) Establishment of new optional eligibility category.--
     Section 1902(a)(10)(A)(ii) of the Social Security Act (42 
     U.S.C. 1396a(a)(10)(A)(ii)) is amended--
       (i) by striking ``or'' at the end of subclause (XVI);
       (ii) by adding ``or'' at the end of subclause (XVII); and
       (iii) by adding at the end the following new subclause:

       ``(XVIII) who are parents described in subsection (k)(1), 
     but only if the State meets the conditions described in 
     subsection (k)(2);''.

       (B) Conditions for coverage.--Section 1902 of such Act is 
     further amended by inserting after subsection (j) the 
     following new subsection:
       ``(k)(1)(A) Parents described in this paragraph are the 
     parents of an individual who is under 19 years of age (or 
     such higher age as the State may have elected under section 
     1902(l)(1)(D)) and who is eligible for medical assistance 
     under subsection (a)(10)(A), if--
       ``(i) such parents are not otherwise eligible for such 
     assistance under such subsection; and
       ``(ii) the income of a family that includes such parents 
     does not exceed an income level specified by the State 
     consistent with paragraph (2)(B).
       ``(B) In this subsection, the term `parent' has the meaning 
     given the term `caretaker' for purposes of carrying out 
     section 1931.
       ``(2) The conditions for a State to provide medical 
     assistance under subsection (a)(10)(A)(ii)(XVIII) are as 
     follows:
       ``(A) The State has a State child health plan under title 
     XXI which (whether implemented under such title or under this 
     title)--
       ``(i) has an income standard that is at least 200 percent 
     of the poverty line for children; and
       ``(ii) does not limit the acceptance of applications, does 
     not use a waiting list for children who meet eligibility 
     standards to qualify for assistance, and provides benefits to 
     all children in the State who apply for and meet eligibility 
     standards.
       ``(B) The income level specified under paragraph (1)(A)(ii) 
     for parents in a family may not be less than the income level 
     provided under section 1931 and may not exceed the highest 
     income level applicable to a child in the family under this 
     title. A State may not cover such parents with higher family 
     income without covering parents with a lower family income.
       ``(3) In the case of a parent described in paragraph (1) 
     who is also the parent of a child who is eligible for child 
     health assistance under title XXI, the State may elect (on a 
     uniform basis) to cover all such parents under section 2111 
     or under subsection (a)(10)(A).''.
       (C) Enhanced matching funds available.--Section 1905 of 
     such Act (42 U.S.C. 1396d) is amended--
       (i) in the fourth sentence of subsection (b), by striking 
     ``or subsection (u)(3)'' and inserting ``, (u)(3), or 
     (u)(4)''; and
       (ii) in subsection (u)--

       (I) by redesignating paragraph (4) as paragraph (5), and
       (II) by inserting after paragraph (3) the following new 
     paragraph:

       ``(4) For purposes of subsection (b), the expenditures 
     described in this paragraph are expenditures for medical 
     assistance made available under section 
     1902(a)(10)(A)(ii)(XVIII) for parents described in section 
     1902(k)(1) in a family the income of which exceeds the income 
     level applicable under section 1931 to a family of the size 
     involved as of January 1, 2000.''.
       (2) Under schip.--
       (A) Familycare coverage.--Title XXI of such Act is amended 
     by adding at the end the following new section:

     ``SEC. 2111. OPTIONAL FAMILYCARE COVERAGE OF PARENTS OF 
                   TARGETED LOW-INCOME CHILDREN.

       ``(a) Optional Coverage.--Notwithstanding any other 
     provision of this title, a State child health plan may 
     provide for coverage, through an amendment to its State child 
     health plan under section 2102, of FamilyCare assistance for 
     targeted low-income parents in accordance with this section, 
     but only if the State meets the conditions described in 
     section 1902(k)(2).
       ``(b) Definitions.--For purposes of this section:
       ``(1) FamilyCare assistance.--The term `FamilyCare 
     assistance' has the meaning given the term child health 
     assistance in section 2110(a) as if any reference to targeted 
     low-income children were a reference to targeted low-income 
     parents.
       ``(2) Targeted low-income parent.--The term `targeted low-
     income parent' has the meaning given the term targeted low-
     income child in section 2110(b) as if any reference to a 
     child were deemed a reference to a parent (as defined in 
     paragraph (3)) of the child; except that in applying such 
     section--
       ``(A) there shall be substituted for the income limit 
     described in paragraph (1)(B)(ii)(I) the applicable income 
     limit in effect for a targeted low-income child;
       ``(B) in paragraph (1)(B)(ii)(II), January 1, 2000, shall 
     be substituted for June 1, 1997; and

[[Page 14466]]

       ``(C) in paragraph (3), January 1, 2000, shall be 
     substituted for July 1, 1997.
       ``(3) Parent.--The term `parent' has the meaning given the 
     term `caretaker' for purposes of carrying out section 1931.
       ``(c) References to Terms and Special Rules.--In the case 
     of, and with respect to, a State providing for coverage of 
     FamilyCare assistance to targeted low-income parents under 
     subsection (a), the following special rules apply:
       ``(1) Any reference in this title (other than subsection 
     (b)) to a targeted low-income child is deemed to include a 
     reference to a targeted low-income parent.
       ``(2) Any such reference to child health assistance with 
     respect to such parents is deemed a reference to FamilyCare 
     assistance.
       ``(3) In applying section 2103(e)(3)(B) in the case of a 
     family provided coverage under this section, the limitation 
     on total annual aggregate cost-sharing shall be applied to 
     the entire family.
       ``(4) In applying section 2110(b)(4), any reference to 
     `section 1902(l)(2) or 1905(n)(2) (as selected by a State)' 
     is deemed a reference to the income level applicable to 
     parents under section 1931.''.
       (B) Addition of familycare allotment.--
       (i) In general.--Section 2104 of such Act (42 U.S.C. 
     1397dd) is amended--

       (I) by redesignating subsections (e) and (f) as subsections 
     (f) and (g), respectively, and by striking ``subsection (e)'' 
     and ``subsection (f)'' each place it appears in such 
     subsections and inserting ``subsection (f)'' and ``subsection 
     (g)'', respectively; and
       (II) by inserting after subsection (d) the following new 
     subsection:

       ``(d) Additional FamilyCare Allotments.--
       ``(1) Appropriation; total allotment.--For the purpose of 
     providing FamilyCare allotments to States under this 
     subsection, there is appropriated, out of any money in the 
     Treasury not otherwise appropriated--
       ``(A) for fiscal year 2002, $2,000,000,000;
       ``(B) for fiscal year 2003, $2,000,000,000;
       ``(C) for fiscal year 2004, $3,000,000,000;
       ``(D) for fiscal year 2005, $3,000,000,000;
       ``(E) for fiscal year 2006, $6,000,000,000;
       ``(F) for fiscal year 2007, $7,000,000,000;
       ``(G) for fiscal year 2008, $8,000,000,000;
       ``(H) for fiscal year 2009, $9,000,000,000;
       ``(I) for fiscal year 2010, $10,000,000,000; and
       ``(J) for fiscal year 2011 and each fiscal year thereafter, 
     the amount of the allotment provided under this paragraph for 
     the preceding fiscal year increased by the same percentage as 
     the percentage increase in the medical care expenditure 
     category of the Consumer Price Index for All Urban Consumers 
     (United States city average) for such preceding fiscal 
     year.''.
       ``(2) State allotments.--
       ``(A) In general.--In addition to the allotments otherwise 
     provided under subsections (b) and (c), subject to paragraph 
     (4), of the amount available for the FamilyCare allotment 
     under paragraph (1) for a fiscal year, reduced by the amount 
     of allotments made under paragraph (3) for the fiscal year, 
     the Secretary shall allot to each State (other than a State 
     described in such paragraph) with a State child health plan 
     approved under this title and which has elected to provide 
     coverage under this section the same proportion as the 
     proportion of the State's allotment under section 2104(b) 
     (determined without regard to section 2104(f)) to the total 
     amount of the allotments under such section.
       ``(B) Unused allotments.--Any unused allotments under 
     subparagraph (A) shall be subject to redistribution in the 
     same manner as that provided under section 2104(f)).
       ``(3) Allotments to territories.--Of the amount available 
     for the FamilyCare allotment under paragraph (1) for a fiscal 
     year, subject to paragraph (4), the Secretary shall consult 
     with members of Congress, representatives of commonwealths 
     and territories, experts, and others, to determine 
     appropriate allotments for each of the commonwealths and 
     territories described in section 2104(c)(3) with a State 
     child health plan approved under this title that has elected 
     to provide coverage under this section.
       ``(4) Certain medicaid expenditures counted against 
     individual state familycare allotments.--The amount of the 
     allotment otherwise provided to a State under paragraph (2) 
     or (3) for a fiscal year (before fiscal year 2006) shall be 
     reduced by the amount (if any) of the payments made to that 
     State under section 1903(a) for expenditures claimed by the 
     State during such fiscal year that is attributable to the 
     provision of medical assistance to a parent described in 
     section 1902(k)(1) for which payment is made under section 
     1903(a)(1) on the basis of an enhanced FMAP under the fourth 
     sentence of section 1905(b).''.
       (ii) Conforming amendments.--Such section is further 
     amended--

       (I) in subsection (a), by inserting ``subject to subsection 
     (e),'' after ``under this section,''; and
       (II) in subsection (b)(1), by striking ``subsection (d)'' 
     and inserting ``subsections (d) and (e)''.

       (3) Effective date.--The amendments made by this subsection 
     apply to items and services furnished on or after October 1, 
     2000.
       (b) Rules for Implementation Beginning with Fiscal Year 
     2006.--
       (1) Fail-safe eligibility under medicaid.--Section 
     1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C. 
     1396a(a)(10)(A)(i)) is amended--
       (A) by striking ``or'' at the end of subclause (VI);
       (B) by adding ``or'' at the end of subclause (VII); and
       (C) by adding at the end the following new subclause:

       ``(VIII) an individual who would be a parent described in 
     subsection (k)(1) if the income level specified in subsection 
     (k)(2)(B) were equal to at least 100 percent of the poverty 
     line referred to in such subsection,''.

       (2) Expansion of availability of enhanced match under 
     medicaid.--Paragraph (4) of section 1905(u) of such Act (42 
     U.S.C. 1396d(u)), as inserted by subsection 
     (a)(1)(C)(ii)(II), is amended--
       (A) by inserting before the period at the end the 
     following: ``or in a family the income of which exceeds 100 
     percent of the poverty line applicable to a family of the 
     size involved or made available under section 
     1902(a)(10)(A)(i)(VIII)''; and
       (B) by designating the matter beginning ``made available'' 
     as subparagraph (A) with an appropriate indentation, by 
     striking the period at the end and inserting ``; and'', and 
     by adding at the end the following new subparagraph:
       ``(B) made available to any child who is eligible for 
     assistance under section 1902(a)(10)(A) and the income of 
     whose family exceeds the minimum income level required under 
     subsection 1902(l)(2) for a child of the age involved.''.
       (3) Elimination of schip allotment offset for familycare 
     assistance provided to parents below poverty.--Section 
     2104(d) of such Act (42 U.S.C. 1397dd(d)) is amended by 
     inserting before the period at the end the following: ``, 
     except that no such reduction shall be made with respect to 
     medical assistance provided under section 
     1902(a)(10)(A)(ii)(XVIII) or 1902(a)(10)(A)(i)(VIII) with 
     respect to a parent whose family income does not exceed 100 
     percent of the poverty line''.
       (4) Effective date.--The amendments made by this subsection 
     apply as of October 1, 2005, to fiscal years beginning on or 
     after such date and to expenditures under the State plan on 
     and after such date.
       (c) Making SCHIP Base Allotments Permanent.--Section 
     2104(a) of such Act (42 U.S.C. 1397dd(a)) is amended--
       (1) by striking ``and'' at the end of paragraph (9);
       (2) by striking the period at the end of paragraph (10) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(11) for fiscal year 2008 and each fiscal year 
     thereafter, the amount of the allotment provided under this 
     subsection for the preceding fiscal year increased by the 
     same percentage as the percentage increase in the medical 
     care expenditure category of the Consumer Price Index for All 
     Urban Consumers (United States city average) for such 
     preceding fiscal year.''.
       (d) Conforming Amendments.--
       (1) Eligibility categories.-- Section 1905(a) of such Act 
     (42 U.S.C. 1396d(a)) is amended, in the matter before 
     paragraph (1)--
       (A) by striking ``or'' at the end of clause (xi);
       (B) by inserting ``or'' at the end of clause (xii); and
       (C) by inserting after clause (xii) the following new 
     clause:
       ``(xiii) who are parents described (or treated as if 
     described) in section 1902(k)(1),''.
       (2) Income limitations.--Section 1903(f)(4) of such Act (42 
     U.S.C. 1396b(f)(4)) is amended--
       (A) by inserting ``1902(a)(10)(A)(i)(VIII),'' after 
     ``1902(a)(10)(A)(i)(VII),''; and
       (B) by inserting ``1902(a)(10)(A)(ii)(XVII), 
     1902(a)(10)(A)(ii)(XVIII),'' before ``or 1905(p)(1)''.

     SEC. 2. AUTOMATIC ENROLLMENT OF CHILDREN BORN TO SCHIP 
                   PARENTS.

       Section 2102(b)(1) of the Social Security Act (42 U.S.C. 
     1397bb(b)(1)) is amended by adding at the end the following 
     new subparagraph:
       ``(C) Automatic eligibility of children born to a parent 
     being provided familycare.--Such eligibility standards shall 
     provide for automatic coverage of a child born to a parent 
     who is provided familycare assistance under section 2111 in 
     the same manner as medical assistance would be provided under 
     section 1902(e)(4) to a child described in such section.''.

     SEC. 3. OPTIONAL COVERAGE OF CHILDREN THROUGH AGE 20 UNDER 
                   THE MEDICAID PROGRAM AND SCHIP.

       (a) Medicaid.--
       (1) In general.--Section 1902(l)(1)(D) of the Social 
     Security Act (42 U.S.C. 1396a(l)(1)(D)) is amended by 
     inserting ``(or, at the election of a State, 20 or 21 years 
     of age)'' after ``19 years of age''.
       (2) Conforming amendments.--
       (A) Section 1902(e)(3)(A) of such Act (42 U.S.C. 
     1396a(e)(3)(A)) is amended by inserting ``(or 1 year less 
     than the age the State has elected under subsection 
     (l)(1)(D))'' after ``18 years of age''.
       (B) Section 1902(e)(12) of such Act (42 U.S.C. 
     1396a(e)(12)) is amended by inserting

[[Page 14467]]

     ``or such higher age as the State has elected under 
     subsection (l)(1)(D)'' after ``19 years of age''.
       (C) Section 1902(l)(5) of such Act (42 U.S.C. 1396a(l)(5)), 
     as added by section 4(a), is amended by inserting ``(or such 
     higher age as the State has elected under paragraph (1)(D))'' 
     after ``19 years of age''.
       (D) Section 1920A(b)(1) of such Act (42 U.S.C. 1396r-
     1a(b)(1)) is amended by inserting ``or such higher age as the 
     State has elected under section 1902(l)(1)(D)'' after ``19 
     years of age''.
       (E) Section 1928(h)(1) of such Act (42 U.S.C. 1396s(h)(1)) 
     is amended by inserting ``or 1 year less than the age the 
     State has elected under section 1902(l)(1)(D)'' before the 
     period at the end.
       (F) Section 1932(a)(2)(A) of such Act (42 U.S.C. 1396u-
     2(a)(2)(A)) is amended by inserting ``(or such higher age as 
     the State has elected under section 1902(l)(1)(D))'' after 
     ``19 years of age''.
       (b) SCHIP.--Section 2110(c)(1) of such Act (42 U.S.C. 
     1397jj(c)(1)) is amended by inserting ``(or such higher age 
     as the State has elected under section 1902(l)(1)(D))''.
       (c) Effective Date.--The amendments made by this section 
     take effect on October 1, 2000, and apply to medical 
     assistance and child health assistance provided on or after 
     such date.

     SEC. 4. APPLICATION OF SIMPLIFIED SCHIP PROCEDURES UNDER THE 
                   MEDICAID PROGRAM.

       (a) In General.--Section 1902(l) of the Social Security Act 
     (42 U.S.C. 1396a(l)) is amended--
       (1) in paragraph (3), by inserting ``subject to paragraph 
     (5)'', after ``Notwithstanding subsection (a)(17),''; and
       (2) by adding at the end the following new paragraph:
       ``(5) With respect to determining the eligibility of 
     individuals under 19 years of age for medical assistance 
     under subsection (a)(10)(A), notwithstanding any other 
     provision of this title, if the State has established a State 
     child health plan under title XXI--
       ``(A) the State may not apply a resource standard if the 
     State does not apply such a standard under such child health 
     plan;
       ``(B) the State shall use same simplified eligibility form 
     (including, if applicable, permitting application other than 
     in person) as the State uses under such State child health 
     plan; and
       ``(C) the State shall provide for redeterminations of 
     eligibility using the same forms and frequency as the State 
     uses for redeterminations of eligibility under such State 
     child health plan.''.
       (b) Use of Uniform Application and Coordinated Enrollment 
     Process.--
       (1) SCHIP program.--Section 2102 (42 U.S.C. 1397bb) is 
     amended by adding at the end the following new subsection:
       ``(d) Development and Use of Uniform Application Forms and 
     Coordinated Enrollment Process.--A State child health plan 
     shall provide, by not later than the first day of the first 
     month that begins more than 6 months after the date of the 
     enactment of this subsection, for--
       ``(1) the development and use of a uniform, simplified 
     application form which is used both for purposes of 
     establishing eligibility for benefits under this title and 
     also under title XIX; and
       ``(2) an enrollment process that is coordinated with that 
     under title XIX so that a family need only interact with a 
     single agency in order to determine whether a child is 
     eligible for benefits under this title or title XIX.''.
       (2) Medicaid conforming amendment.--
       (A) In general.--Section 1902(a) (42 U.S.C. 1396a(a)) is 
     amended--
       (i) in paragraph (64), by striking ``and'' at the end;
       (ii) by striking the period at the end of paragraph (65) 
     and inserting ``; and'', and
       (iii) by inserting after paragraph (65) the following new 
     paragraph:
       ``(66) provide, by not later than the first day of the 
     first month that begins more than 6 months after the date of 
     the enactment of this paragraph, in the case of a State with 
     a State child health plan under title XXI for--
       ``(A) the development and use of a uniform, simplified 
     application form which is used both for purposes of 
     establishing eligibility for benefits under this title and 
     also under title XXI; and
       ``(B) establishment and operation of an enrollment process 
     that is coordinated with that under title XXI so that a 
     family need only interact with a single agency in order to 
     determine whether a child is eligible for benefits under this 
     title or title XXI.''.
       (B) Effective date.--The amendments made by subparagraph 
     (A) apply to calendar quarters beginning more than 6 months 
     after the date of the enactment of this Act.
       (b) Additional Entities Qualified to Determine Medicaid 
     Presumptive Eligibility for Low-income Children.--
       (1) In general.--Section 1920A(b)(3)(A)(i) of such Act (42 
     U.S.C. 1396r-1a(b)(3)(A)(i)) is amended--
       (A) by striking ``or (II)'' and inserting ``, (II)''; and
       (B) by inserting ``eligibility of a child for medical 
     assistance under the State plan under this title, or 
     eligibility of a child for child health assistance under the 
     program funded under title XXI, (III) is an elementary school 
     or secondary school, as such terms are defined in section 
     14101 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 8801), an elementary or secondary school operated 
     or supported by the Bureau of Indian Affairs, a State child 
     support enforcement agency, a child care resource and 
     referral agency, an organization that is providing emergency 
     food and shelter under a grant under the Stewart B. McKinney 
     Homeless Assistance Act, or a State office or entity involved 
     in enrollment in the program under this title, under part A 
     of title IV, under title XXI, or that determines eligibility 
     for any assistance or benefits provided under any program of 
     public or assisted housing that receives Federal funds, 
     including the program under section 8 or any other section of 
     the United States Housing Act of 1937 (42 U.S.C. 1437 et 
     seq.), or (IV) any other entity the State so deems, as 
     approved by the Secretary'' before the semicolon.
       (2) Technical amendments.--Section 1920A of such Act (42 
     U.S.C. 1396r-1a) is amended--
       (A) in subsection (b)(3)(A)(ii), by striking ``paragraph 
     (1)(A)'' and inserting ``paragraph (2)(A)''; and
       (B) in subsection (c)(2), in the matter preceding 
     subparagraph (A), by striking ``subsection (b)(1)(A)'' and 
     inserting ``subsection (b)(2)(A)''.
       (c) Elimination of Funding Offset for Exercise of 
     Presumptive Eligibility Option.--
       (1) In general.--Section 2104(d) of such Act (42 U.S.C. 
     1397dd(d)) is amended by striking ``the sum of--'' and all 
     that follows through ``(2)'' and conforming the margins of 
     all that remains accordingly.
       (2) Effective date.--The amendment made by paragraph (1) is 
     effective as if included in the enactment of the Balanced 
     Budget Act of 1997.
       (d) Use of School Lunch Information in Eligibility 
     Determinations.--Section 9(b)(2)(C)(iii) of the National 
     School Lunch Act (42 U.S.C. 1758(b)(2)(C)(iii)) is amended--
       (1) in subclause (II), by striking ``and'' at the end;
       (2) in subclause (III), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(IV) the agency administering a State plan under title 
     XIX of the Social Security Act (42 U.S.C. 1396 et seq.) or a 
     State child health plan under title XXI of that Act (42 
     U.S.C. 1397aa et seq.) solely for the purpose of identifying 
     children eligible for benefits under, and enrolling children 
     in, any such plan, except that this subclause shall apply 
     with respect to the agency from which the information would 
     be obtained only if the State and the agency so elect.''.
       (e) Automatic Reassessment of Eligibility for SCHIP and 
     Medicaid Benefits for Children Losing Medicaid or SCHIP 
     Eligibility.--
       (1) Loss of medicaid eligibility.--Section 1902(a)(66) (42 
     U.S.C. 1396a(a)(66)), as inserted by subsection (b)(2), is 
     amended--
       (A) by striking ``and'' at the end of subparagraph (B),
       (B) by striking the period at the end of subparagraph (C) 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(D) the automatic assessment, in the case of a child who 
     loses eligibility for medical assistance under this title on 
     the basis of changes in income, assets, or age, of whether 
     the child is eligible for benefits under title XXI and, if so 
     eligible, automatic enrollment under such title without the 
     need for a new application.''.
       (2) Loss of schip eligibility.--Section 2102(b)(3) (42 
     U.S.C. 1397bb(b)(3)) is amended by redesignating 
     subparagraphs (D) and (E) as subparagraphs (E) and (F), 
     respectively, and by inserting after subparagraph (C) the 
     following new subparagraph:
       ``(D) that there is an automatic assessment, in the case of 
     a child who loses eligibility for child health assistance 
     under this title on the basis of changes in income, assets, 
     or age, of whether the child is eligible for medical 
     assistance under title XIX and, if so eligible, there is 
     automatic enrollment under such title without the need for a 
     new application;''.
       (3) Effective date.--The amendments made by paragraphs (1) 
     and (2) apply to children who lose eligibility under the 
     medicaid program under title XIX, or under a State child 
     health insurance plan under title XXI, respectively, of the 
     Social Security Act on or after the date that is 30 days 
     after the date of enactment of this Act.

     SEC. 5. MAKING WELFARE-TO-WORK TRANSITION UNDER THE MEDICAID 
                   PROGRAM PERMANENT.

       Subsection (f) of section 1925 of the Social Security Act 
     (42 U.S.C. 1396r-6) is repealed.

     SEC. 6. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE 
                   MEDICAID PROGRAM AND SCHIP.

       (a) Medicaid Program.--Section 1903(v) of the Social 
     Security Act (42 U.S.C. 1396b(v)) is amended--
       (1) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (4)''; and
       (2) by adding at the end the following new paragraph:
       ``(4)(A) A State may elect (in a plan amendment under this 
     title and notwithstanding any provision of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 to the contrary) to

[[Page 14468]]

     waive the application of sections 401(a), 402(b), 403, and 
     421 of such Act with respect to eligibility for medical 
     assistance under this title of aliens who are lawfully 
     present in the United States (as defined by the Secretary and 
     including battered aliens described in section 431(c) of such 
     Act), within any or all (or any combination) of eligibility 
     categories, other than the category of aliens described in 
     subparagraph (C).
       ``(B) For purposes of applying section 213A of the 
     Immigration and Nationality Act, the term `means-tested 
     public benefits' does not include medical assistance provided 
     to a category of aliens pursuant to a State election and 
     waiver described in subparagraph (A).
       ``(C) The category of aliens described in this subparagraph 
     is disabled or blind aliens who became disabled or blind 
     before the date of entry into the United States.
       ``(D) If a State makes an election and waiver under 
     subparagraph (A) with respect to the category of children, 
     the State is deemed to have made such an election and waiver 
     with respect to such category for purposes of its State child 
     health plan under title XXI.''.
       (b) SCHIP.--Section 2107(e)(1) of such Act (42 U.S.C. 
     1397gg(e)(1)) is amended by adding at the end the following 
     new subparagraph:
       ``(D) Section 1903(v)(4)(D) (relating to optional coverage 
     of categories of permanent resident alien children).''.
       (c) Effective Date.--The amendments made by this section 
     take effect on October 1, 2000, and apply to medical 
     assistance and child health assistance furnished on or after 
     such date.

     SEC. 7. FUNDING.

       Notwithstanding any other provision of law, the Federal 
     outlays necessary to carry out this division and the 
     amendments made by this division to titles XIX and XXI of the 
     Social Security Act (42 U.S.C. 1396 et seq,; 1397aa et seq.) 
     shall not cause an on-budget deficit.
                                 ______
                                 

                      BROWNBACK AMENDMENT NO. 3849

  Mr. BROWNBACK proposed an amendment to the bill, H.R. 4810, supra; as 
follows:

       At the end of the bill, add the following:

                    TITLE VI--TAX RELIEF FOR FARMERS

     SEC. 601. FARM, FISHING, AND RANCH RISK MANAGEMENT ACCOUNTS.

       (a) In General.--Subpart C of part II of subchapter E of 
     chapter 1 (relating to taxable year for which deductions 
     taken) is amended by inserting after section 468B the 
     following:

     ``SEC. 468C. FARM, FISHING, AND RANCH RISK MANAGEMENT 
                   ACCOUNTS.

       ``(a) Deduction Allowed.--In the case of an individual 
     engaged in an eligible farming business or commercial 
     fishing, there shall be allowed as a deduction for any 
     taxable year the amount paid in cash by the taxpayer during 
     the taxable year to a Farm, Fishing, and Ranch Risk 
     Management Account (hereinafter referred to as the `FFARRM 
     Account').
       ``(b) Limitation.--
       ``(1) Contributions.--The amount which a taxpayer may pay 
     into the FFARRM Account for any taxable year shall not exceed 
     20 percent of so much of the taxable income of the taxpayer 
     (determined without regard to this section) which is 
     attributable (determined in the manner applicable under 
     section 1301) to any eligible farming business or commercial 
     fishing.
       ``(2) Distributions.--Distributions from a FFARRM Account 
     may not be used to purchase, lease, or finance any new 
     fishing vessel, add capacity to any fishery, or otherwise 
     contribute to the overcapitalization of any fishery. The 
     Secretary of Commerce shall implement regulations to enforce 
     this paragraph.
       ``(c) Eligible Businesses.--For purposes of this section--
       ``(1) Eligible farming business.--The term `eligible 
     farming business' means any farming business (as defined in 
     section 263A(e)(4)) which is not a passive activity (within 
     the meaning of section 469(c)) of the taxpayer.
       ``(2) Commercial fishing.--The term `commercial fishing' 
     has the meaning given such term by section (3) of the 
     Magnuson-Stevens Fishery Conservation and Management Act (16 
     U.S.C. 1802) but only if such fishing is not a passive 
     activity (within the meaning of section 469(c)) of the 
     taxpayer.
       ``(d) FFARRM Account.--For purposes of this section--
       ``(1) In general.--The term `FFARRM Account' means a trust 
     created or organized in the United States for the exclusive 
     benefit of the taxpayer, but only if the written governing 
     instrument creating the trust meets the following 
     requirements:
       ``(A) No contribution will be accepted for any taxable year 
     in excess of the amount allowed as a deduction under 
     subsection (a) for such year.
       ``(B) The trustee is a bank (as defined in section 408(n)) 
     or another person who demonstrates to the satisfaction of the 
     Secretary that the manner in which such person will 
     administer the trust will be consistent with the requirements 
     of this section.
       ``(C) The assets of the trust consist entirely of cash or 
     of obligations which have adequate stated interest (as 
     defined in section 1274(c)(2)) and which pay such interest 
     not less often than annually.
       ``(D) All income of the trust is distributed currently to 
     the grantor.
       ``(E) The assets of the trust will not be commingled with 
     other property except in a common trust fund or common 
     investment fund.
       ``(2) Account taxed as grantor trust.--The grantor of a 
     FFARRM Account shall be treated for purposes of this title as 
     the owner of such Account and shall be subject to tax thereon 
     in accordance with subpart E of part I of subchapter J of 
     this chapter (relating to grantors and others treated as 
     substantial owners).
       ``(e) Inclusion of Amounts Distributed.--
       ``(1) In general.--Except as provided in paragraph (2), 
     there shall be includible in the gross income of the taxpayer 
     for any taxable year--
       ``(A) any amount distributed from a FFARRM Account of the 
     taxpayer during such taxable year, and
       ``(B) any deemed distribution under--
       ``(i) subsection (f )(1) (relating to deposits not 
     distributed within 5 years),
       ``(ii) subsection (f )(2) (relating to cessation in 
     eligible farming business), and
       ``(iii) subparagraph (A) or (B) of subsection (f )(3) 
     (relating to prohibited transactions and pledging account as 
     security).
       ``(2) Exceptions.--Paragraph (1)(A) shall not apply to--
       ``(A) any distribution to the extent attributable to income 
     of the Account, and
       ``(B) the distribution of any contribution paid during a 
     taxable year to a FFARRM Account to the extent that such 
     contribution exceeds the limitation applicable under 
     subsection (b) if requirements similar to the requirements of 
     section 408(d)(4) are met.

     For purposes of subparagraph (A), distributions shall be 
     treated as first attributable to income and then to other 
     amounts.
       ``(f ) Special Rules.--
       ``(1) Tax on deposits in account which are not distributed 
     within 5 years.--
       ``(A) In general.--If, at the close of any taxable year, 
     there is a nonqualified balance in any FFARRM Account--
       ``(i) there shall be deemed distributed from such Account 
     during such taxable year an amount equal to such balance, and
       ``(ii) the taxpayer's tax imposed by this chapter for such 
     taxable year shall be increased by 10 percent of such deemed 
     distribution.

     The preceding sentence shall not apply if an amount equal to 
     such nonqualified balance is distributed from such Account to 
     the taxpayer before the due date (including extensions) for 
     filing the return of tax imposed by this chapter for such 
     year (or, if earlier, the date the taxpayer files such return 
     for such year).
       ``(B) Nonqualified balance.--For purposes of subparagraph 
     (A), the term `nonqualified balance' means any balance in the 
     Account on the last day of the taxable year which is 
     attributable to amounts deposited in such Account before the 
     4th preceding taxable year.
       ``(C) Ordering rule.--For purposes of this paragraph, 
     distributions from a FFARRM Account (other than distributions 
     of current income) shall be treated as made from deposits in 
     the order in which such deposits were made, beginning with 
     the earliest deposits.
       ``(2) Cessation in eligible business.--At the close of the 
     first disqualification period after a period for which the 
     taxpayer was engaged in an eligible farming business or 
     commercial fishing, there shall be deemed distributed from 
     the FFARRM Account of the taxpayer an amount equal to the 
     balance in such Account (if any) at the close of such 
     disqualification period. For purposes of the preceding 
     sentence, the term `disqualification period' means any period 
     of 2 consecutive taxable years for which the taxpayer is not 
     engaged in an eligible farming business or commercial 
     fishing.
       ``(3) Certain rules to apply.--Rules similar to the 
     following rules shall apply for purposes of this section:
       ``(A) Section 220(f )(8) (relating to treatment on death).
       ``(B) Section 408(e)(2) (relating to loss of exemption of 
     account where individual engages in prohibited transaction).
       ``(C) Section 408(e)(4) (relating to effect of pledging 
     account as security).
       ``(D) Section 408(g) (relating to community property laws).
       ``(E) Section 408(h) (relating to custodial accounts).
       ``(4) Time when payments deemed made.--For purposes of this 
     section, a taxpayer shall be deemed to have made a payment to 
     a FFARRM Account on the last day of a taxable year if such 
     payment is made on account of such taxable year and is made 
     on or before the due date (without regard to extensions) for 
     filing the return of tax for such taxable year.
       ``(5) Individual.--For purposes of this section, the term 
     `individual' shall not include an estate or trust.
       ``(6) Deduction not allowed for self-employment tax.--The 
     deduction allowable by reason of subsection (a) shall not be 
     taken into account in determining an individual's net 
     earnings from self-employment (within the meaning of section 
     1402(a)) for purposes of chapter 2.

[[Page 14469]]

       ``(g) Reports.--The trustee of a FFARRM Account shall make 
     such reports regarding such Account to the Secretary and to 
     the person for whose benefit the Account is maintained with 
     respect to contributions, distributions, and such other 
     matters as the Secretary may require under regulations. The 
     reports required by this subsection shall be filed at such 
     time and in such manner and furnished to such persons at such 
     time and in such manner as may be required by such 
     regulations.''.
       (b) Tax on Excess Contributions.--
       (1) Subsection (a) of section 4973 (relating to tax on 
     excess contributions to certain tax-favored accounts and 
     annuities) is amended by striking ``or'' at the end of 
     paragraph (3), by redesignating paragraph (4) as paragraph 
     (5), and by inserting after paragraph (3) the following:
       ``(4) a FFARRM Account (within the meaning of section 
     468C(d)), or''.
       (2) Section 4973 is amended by adding at the end the 
     following:
       ``(g) Excess Contributions to FFARRM Accounts.--For 
     purposes of this section, in the case of a FFARRM Account 
     (within the meaning of section 468C(d)), the term `excess 
     contributions' means the amount by which the amount 
     contributed for the taxable year to the Account exceeds the 
     amount which may be contributed to the Account under section 
     468C(b) for such taxable year. For purposes of this 
     subsection, any contribution which is distributed out of the 
     FFARRM Account in a distribution to which section 
     468C(e)(2)(B) applies shall be treated as an amount not 
     contributed.''.
       (3) The section heading for section 4973 is amended to read 
     as follows:

     ``SEC. 4973. EXCESS CONTRIBUTIONS TO CERTAIN ACCOUNTS, 
                   ANNUITIES, ETC.''.

       (4) The table of sections for chapter 43 is amended by 
     striking the item relating to section 4973 and inserting the 
     following:

``Sec. 4973. Excess contributions to certain accounts, annuities, 
              etc.''.

       (c) Tax on Prohibited Transactions.--
       (1) Subsection (c) of section 4975 (relating to tax on 
     prohibited transactions) is amended by adding at the end the 
     following:
       ``(6) Special rule for ffarrm accounts.--A person for whose 
     benefit a FFARRM Account (within the meaning of section 
     468C(d)) is established shall be exempt from the tax imposed 
     by this section with respect to any transaction concerning 
     such account (which would otherwise be taxable under this 
     section) if, with respect to such transaction, the account 
     ceases to be a FFARRM Account by reason of the application of 
     section 468C(f )(3)(A) to such account.''.
       (2) Paragraph (1) of section 4975(e) is amended by 
     redesignating subparagraphs (E) and (F) as subparagraphs (F) 
     and (G), respectively, and by inserting after subparagraph 
     (D) the following:
       ``(E) a FFARRM Account described in section 468C(d),''.
       (d) Failure To Provide Reports on FFARRM Accounts.--
     Paragraph (2) of section 6693(a) (relating to failure to 
     provide reports on certain tax-favored accounts or annuities) 
     is amended by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively, and by inserting 
     after subparagraph (B) the following:
       ``(C) section 468C(g) (relating to FFARRM Accounts),''.
       (e) Clerical Amendment.--The table of sections for subpart 
     C of part II of subchapter E of chapter 1 is amended by 
     inserting after the item relating to section 468B the 
     following:

``Sec. 468C. Farm, Fishing and Ranch Risk Management Accounts.''.

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

     SEC. 602. WRITTEN AGREEMENT RELATING TO EXCLUSION OF CERTAIN 
                   FARM RENTAL INCOME FROM NET EARNINGS FROM SELF-
                   EMPLOYMENT.

       (a) Internal Revenue Code.--Section 1402(a)(1)(A) (relating 
     to net earnings from self-employment) is amended by striking 
     ``an arrangement'' and inserting ``a lease agreement''.
       (b) Social Security Act.--Section 211(a)(1)(A) of the 
     Social Security Act is amended by striking ``an arrangement'' 
     and inserting ``a lease agreement''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 603. TREATMENT OF CONSERVATION RESERVE PROGRAM PAYMENTS 
                   AS RENTALS FROM REAL ESTATE.

       (a) In General.--Section 1402(a)(1) (defining net earnings 
     from self-employment) is amended by inserting ``and including 
     payments under section 1233(2) of the Food Security Act of 
     1985 (16 U.S.C. 3833(2))'' after ``crop shares''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made before, on, or after the date of 
     the enactment of this Act.

     SEC. 604. EXEMPTION OF AGRICULTURAL BONDS FROM STATE VOLUME 
                   CAP.

       (a) In General.--Section 146(g) (relating to exception for 
     certain bonds) is amended by striking ``and'' at the end of 
     paragraph (3), by striking the period at the end of paragraph 
     (4) and inserting ``, and'', and by inserting after paragraph 
     (4) the following:
       ``(5) any qualified small issue bond described in section 
     144(a)(12)(B)(ii).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of enactment of 
     this Act.

     SEC. 605. MODIFICATIONS TO SECTION 512(B)(13).

       (a) In General.--Paragraph (13) of section 512(b) is 
     amended by redesignating subparagraph (E) as subparagraph (F) 
     and by inserting after subparagraph (D) the following new 
     paragraph:
       ``(E) Paragraph to apply only to excess payments.--
       ``(i) In general.--Subparagraph (A) shall apply only to the 
     portion of a specified payment received by the controlling 
     organization that exceeds the amount which would have been 
     paid if such payment met the requirements prescribed under 
     section 482.
       ``(ii) Addition to tax for valuation misstatements.--The 
     tax imposed by this chapter on the controlling organization 
     shall be increased by an amount equal to 20 percent of such 
     excess.''.
       (b) Effective Date.--
       (1) In general.--The amendment made by this section shall 
     apply to payments received or accrued after December 31, 
     2000.
       (2) Payments subject to binding contract transition rule.--
     If the amendments made by section 1041 of the Taxpayer Relief 
     Act of 1997 do not apply to any amount received or accrued 
     after the date of the enactment of this Act under any 
     contract described in subsection (b)(2) of such section, such 
     amendments also shall not apply to amounts received or 
     accrued under such contract before January 1, 2001.

     SEC. 606. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD 
                   INVENTORY.

       (a) In General.--Subsection (e) of section 170 (relating to 
     certain contributions of ordinary income and capital gain 
     property) is amended by adding at the end the following new 
     paragraph:
       ``(7) Special rule for contributions of food inventory.--
     For purposes of this section--
       ``(A) Contributions by non-corporate taxpayers.--In the 
     case of a charitable contribution of food, paragraph (3)(A) 
     shall be applied without regard to whether or not the 
     contribution is made by a corporation.
       ``(B) Limit on reduction.--In the case of a charitable 
     contribution of food which is a qualified contribution 
     (within the meaning of paragraph (3)(A), as modified by 
     subparagraph (A) of this paragraph)--
       ``(i) paragraph (3)(B) shall not apply, and
       ``(ii) the reduction under paragraph (1)(A) for such 
     contribution shall be no greater than the amount (if any) by 
     which the amount of such contribution exceeds twice the basis 
     of such food.
       ``(C) Determination of basis.--For purposes of this 
     paragraph, if a taxpayer uses the cash method of accounting, 
     the basis of any qualified contribution of such taxpayer 
     shall be deemed to be 50 percent of the fair market value of 
     such contribution.
       ``(D) Determination of fair market value.--In the case of a 
     charitable contribution of food which is a qualified 
     contribution (within the meaning of paragraph (3), as 
     modified by subparagraphs (A) and (B) of this paragraph) and 
     which, solely by reason of internal standards of the 
     taxpayer, lack of market, or similar circumstances, or which 
     is produced by the taxpayer exclusively for the purposes of 
     transferring the food to an organization described in 
     paragraph (3)(A), cannot or will not be sold, the fair market 
     value of such contribution shall be determined--
       ``(i) without regard to such internal standards, such lack 
     of market, such circumstances, or such exclusive purpose, and
       ``(ii) if applicable, by taking into account the price at 
     which the same or similar food items are sold by the taxpayer 
     at the time of the contribution (or, if not so sold at such 
     time, in the recent past).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 607. INCOME AVERAGING FOR FARMERS AND FISHERMEN 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 and 
     fishermen.--Solely for purposes of this section, section 1301 
     (relating to averaging of farm and fishing income) shall not 
     apply in computing the regular tax.''.
       (b) Allowing Income Averaging for Fishermen.--
       (1) In general.--Section 1301(a) is amended by striking 
     ``farming business'' and inserting ``farming business or 
     fishing business,''.
       (2) Definition of elected farm income.--
       (A) In general.--Clause (i) of section 1301(b)(1)(A) is 
     amended by inserting ``or fishing business'' before the 
     semicolon.
       (B) Conforming amendment.--Subparagraph (B) of section 
     1301(b)(1) is amended by inserting ``or fishing business'' 
     after ``farming business'' both places it occurs.
       (3) Definition of fishing business.--Section 1301(b) is 
     amended by adding at the end the following new paragraph:
       ``(4) Fishing business.--The term `fishing business' means 
     the conduct of commercial

[[Page 14470]]

     fishing as defined in section 3 of the Magnuson-Stevens 
     Fishery Conservation and Management Act (16 U.S.C. 1802).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 608. REPEAL OF MODIFICATION OF INSTALLMENT METHOD.

       (a) In General.--Subsection (a) of section 536 of the 
     Ticket to Work and Work Incentives Improvement Act of 1999 
     (relating to modification of installment method and repeal of 
     installment method for accrual method taxpayers) is repealed 
     effective with respect to sales and other dispositions 
     occurring on or after the date of the enactment of such Act.
       (b) Applicability.--The Internal Revenue Code of 1986 shall 
     be applied and administered as if such subsection (and the 
     amendments made by such subsection) had not been enacted.

     SEC. 609. COOPERATIVE MARKETING INCLUDES VALUE-ADDED 
                   PROCESSING THROUGH ANIMALS.

       (a) In General.--Section 1388 (relating to definitions and 
     special rules) is amended by adding at the end the following:
       ``(k) Cooperative Marketing Includes Value-Added Processing 
     Through Animals.--For purposes of section 521 and this 
     subchapter, `marketing the products of members or other 
     producers' includes feeding the products of members or other 
     producers to cattle, hogs, fish, chickens, or other animals 
     and selling the resulting animals or animal products.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 610. SMALL ETHANOL PRODUCER CREDIT.

       (a) Allocation of Alcohol Fuels Credit to Patrons of a 
     Cooperative.--Section 40(g) (relating to alcohol used as 
     fuel) is amended by adding at the end the following:
       ``(6) Allocation of small ethanol producer credit to 
     patrons of cooperative.--
       ``(A) Election to allocate.--
       ``(i) In general.--In the case of a cooperative 
     organization described in section 1381(a), any portion of the 
     credit determined under subsection (a)(3) for the taxable 
     year may, at the election of the organization, be apportioned 
     pro rata among patrons of the organization on the basis of 
     the quantity or value of business done with or for such 
     patrons for the taxable year.
       ``(ii) Form and effect of election.--An election under 
     clause (i) for any taxable year shall be made on a timely 
     filed return for such year. Such election, once made, shall 
     be irrevocable for such taxable year.
       ``(iii) Special rule for 1998 and 1999.--Notwithstanding 
     clause (ii), an election for any taxable year ending prior to 
     the date of the enactment of the Death Tax Elimination Act of 
     2000 may be made at any time before the expiration of the 3-
     year period beginning on the last date prescribed by law for 
     filing the return of the taxpayer for such taxable year 
     (determined without regard to extensions) by filing an 
     amended return for such year.
       ``(B) Treatment of organizations and patrons.--The amount 
     of the credit apportioned to patrons under subparagraph (A)--
       ``(i) shall not be included in the amount determined under 
     subsection (a) with respect to the organization for the 
     taxable year,
       ``(ii) shall be included in the amount determined under 
     subsection (a) for the taxable year of each patron for which 
     the patronage dividends for the taxable year described in 
     subparagraph (A) are included in gross income, and
       ``(iii) shall be included in gross income of such patrons 
     for the taxable year in the manner and to the extent provided 
     in section 87.
       ``(C) Special rules for decrease in credits for taxable 
     year.--If the amount of the credit of a cooperative 
     organization determined under subsection (a)(3) for a taxable 
     year is less than the amount of such credit shown on the 
     return of the cooperative organization for such year, an 
     amount equal to the excess of--
       ``(i) such reduction, over
       ``(ii) the amount not apportioned to such patrons under 
     subparagraph (A) for the taxable year,

     shall be treated as an increase in tax imposed by this 
     chapter on the organization. Such increase shall not be 
     treated as tax imposed by this chapter for purposes of 
     determining the amount of any credit under this subpart or 
     subpart A, B, E, or G.''.
       (b) Improvements to Small Ethanol Producer Credit.--
       (1) Small ethanol producer credit not a passive activity 
     credit.--Clause (i) of section 469(d)(2)(A) is amended by 
     striking ``subpart D'' and inserting ``subpart D, other than 
     section 40(a)(3),''.
       (2) Allowing credit against minimum tax.--
       (A) In general.--Subsection (c) of section 38 (relating to 
     limitation based on amount of tax) is amended by 
     redesignating paragraph (3) as paragraph (4) and by inserting 
     after paragraph (2) the following new paragraph:
       ``(3) Special rules for small ethanol producer credit.--
       ``(A) In general.--In the case of the small ethanol 
     producer credit--
       ``(i) this section and section 39 shall be applied 
     separately with respect to the credit, and
       ``(ii) in applying paragraph (1) to the credit--

       ``(I) subparagraphs (A) and (B) thereof shall not apply, 
     and
       ``(II) the limitation under paragraph (1) (as modified by 
     subclause (I)) shall be reduced by the credit allowed under 
     subsection (a) for the taxable year (other than the small 
     ethanol producer credit).

       ``(B) Small ethanol producer credit.--For purposes of this 
     subsection, the term `small ethanol producer credit' means 
     the credit allowable under subsection (a) by reason of 
     section 40(a)(3).''.
       (B) Conforming amendment.--Subclause (II) of section 
     38(c)(2)(A)(ii) is amended by inserting ``or the small 
     ethanol producer credit'' after ``employment credit''.
       (3) Small ethanol producer credit not added back to income 
     under section 87.--Section 87 (relating to income inclusion 
     of alcohol fuel credit) is amended to read as follows:

     ``SEC. 87. ALCOHOL FUEL CREDIT.

       ``Gross income includes an amount equal to the sum of--
       ``(1) the amount of the alcohol mixture credit determined 
     with respect to the taxpayer for the taxable year under 
     section 40(a)(1), and
       ``(2) the alcohol credit determined with respect to the 
     taxpayer for the taxable year under section 40(a)(2).''.
       (c) Conforming Amendment.--Section 1388 (relating to 
     definitions and special rules for cooperative organizations) 
     is amended by adding at the end the following:
       ``(k) Cross Reference.--For provisions relating to the 
     apportionment of the alcohol fuels credit between cooperative 
     organizations and their patrons, see section 40(d) (6).''
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by subsection (b) of this section shall apply 
     to taxable years ending after the date of enactment.
       (2) Provisions affecting cooperatives and their patrons.--
     The amendments made by subsections (a) and (c), and the 
     amendments made by paragraphs (2) and (3) of subsection (b), 
     shall apply to taxable years beginning after December 31, 
     1997.
                                 ______
                                 

                       DURBIN AMENDMENT NO. 3850

  Mr. REID (for Mr. Durbin) proposed an amendment to the bill, H.R. 
4810, supra; as follows:

       At the end, add the following:

     SEC. __. DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-
                   EMPLOYED INDIVIDUALS INCREASED.

       (a) In General.--Section 162(l)(1) of the Internal Revenue 
     Code of 1986 (relating to special rules for health insurance 
     costs of self-employed individuals) 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, 
     the taxpayer's spouse, and dependents.''.
       (c) Effective Date.--The amendment made by this section 
     applies to taxable years beginning after December 31, 2000.
                                 ______
                                 

                        BOND AMENDMENT NO. 3851

       Mr. ROTH (for Mr. Bond) proposed an amendment to amendment 
     No. 3850 previously proposed by Mr. Reid (for Mr. Durbin) to 
     the bill, H.R. 4810, supra; as follows:

       Strike all after the first word, and insert the following:

             1. SHORT TITLE.

       This Act may be cited as the ``Self-Employed Health 
     Insurance Fairness Act of 1999''.

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

       (a) In General.--Section 162(l)(1) of the Internal Revenue 
     Code of 1986 (relating to special rules for health insurance 
     costs of self-employed individuals) 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, 
     the taxpayer's spouse, and dependents.''
       (b) Clarification of Limitations on Other Coverage.--The 
     first sentence of section 162(l)(2)(B) of the Internal 
     Revenue Code of 1986 is amended to read as follows: 
     ``Paragraph (1) shall not apply to any taxpayer for any 
     calendar month for which the taxpayer participates in any 
     subsidized health plan maintained by any employer (other than 
     an employer described in section 401(c)(4)) of the taxpayer 
     or the spouse of the taxpayer.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1999.
                                 ______
                                 

                       DURBIN AMENDMENT NO. 3852

  Mr. REID (for Mr. Durbin) proposed an amendment to the bill, H.R. 
4810, supra; as follows:


[[Page 14471]]

       At the end, add the following:

     SEC. __. CREDIT FOR EMPLOYEE HEALTH INSURANCE EXPENSES.

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

     ``SEC. 45D. EMPLOYEE HEALTH INSURANCE EXPENSES.

       ``(a) General Rule.--For purposes of section 38, in the 
     case of a small employer, the employee health insurance 
     expenses credit determined under this section is an amount 
     equal to the applicable percentage of the amount paid by the 
     taxpayer during the taxable year for qualified employee 
     health insurance expenses.
       ``(b) Applicable Percentage.--For purposes of subsection 
     (a)--
       ``(1) In general.--Except as provided in paragraph (2), the 
     applicable percentage is equal to--
       ``(A) 25 percent in the case of self-only coverage, and
       ``(B) 35 percent in the case of family coverage (as defined 
     in section 220(c)(5)).
       ``(2) First year coverage.--
       ``(A) In general.--In the case of first year coverage, 
     paragraph (1) shall be applied by substituting `60 percent' 
     for `25 percent' and `70 percent' for `35 percent'.
       ``(B) First year coverage.--For purposes of subparagraph 
     (A), the term `first year coverage' means the first taxable 
     year in which the small employer pays qualified employee 
     health insurance expenses but only if such small employer did 
     not provide health insurance coverage for any qualified 
     employee during the 2 taxable years immediately preceding the 
     taxable year.
       ``(c) Per Employee Dollar Limitation.--The amount of 
     qualified employee health insurance expenses taken into 
     account under subsection (a) with respect to any qualified 
     employee for any taxable year shall not exceed--
       ``(1) $1,800 in the case of self-only coverage, and
       ``(2) $4,000 in the case of family coverage (as so 
     defined).
       ``(d) Definitions.--For purposes of this section--
       ``(1) Small employer.--
       ``(A) In general.--The term `small employer' means, with 
     respect to any calendar year, any employer if such employer 
     employed an average of 9 or fewer employees on business days 
     during either of the 2 preceding calendar years. For purposes 
     of the preceding sentence, a preceding calendar year may be 
     taken into account only if the employer was in existence 
     throughout such year.
       ``(B) Employers not in existence in preceding year.--In the 
     case of an employer which was not in existence throughout the 
     1st preceding calendar year, the determination under 
     subparagraph (A) shall be based on the average number of 
     employees that it is reasonably expected such employer will 
     employ on business days in the current calendar year.
       ``(2) Qualified employee health insurance expenses.--
       ``(A) In general.--The term `qualified employee health 
     insurance expenses' means any amount paid by an employer for 
     health insurance coverage to the extent such amount is 
     attributable to coverage provided to any employee while such 
     employee is a qualified employee.
       ``(B) Exception for amounts paid under salary reduction 
     arrangements.--No amount paid or incurred for health 
     insurance coverage pursuant to a salary reduction arrangement 
     shall be taken into account under subparagraph (A).
       ``(C) Health insurance coverage.--The term `health 
     insurance coverage' has the meaning given such term by 
     section 9832(b)(1).
       ``(3) Qualified employee.--
       ``(A) In general.--The term `qualified employee' means, 
     with respect to any period, an employee of an employer if the 
     total amount of wages paid or incurred by such employer to 
     such employee at an annual rate during the taxable year 
     exceeds $5,000 but does not exceed $16,000.
       ``(B) Treatment of certain employees.--For purposes of 
     subparagraph (A), the term `employee'--
       ``(i) shall not include an employee within the meaning of 
     section 401(c)(1), and
       ``(ii) shall include a leased employee within the meaning 
     of section 414(n).
       ``(C) Wages.--The term `wages' has the meaning given such 
     term by section 3121(a) (determined without regard to any 
     dollar limitation contained in such section).
       ``(D) Inflation adjustment.--
       ``(i) In general.--In the case of any taxable year 
     beginning in a calendar year after 2000, the $16,000 amount 
     contained in subparagraph (A) shall be increased by an amount 
     equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment under section 1(f)(3) 
     for the calendar year in which the taxable year begins, 
     determined by substituting `calendar year 1999' for `calendar 
     year 1992' in subparagraph (B) thereof.

       ``(ii) Rounding.--If any increase determined under clause 
     (i) is not a multiple of $100, such amount shall be rounded 
     to the nearest multiple of $100.
       ``(e) Certain rules made applicable.--For purposes of this 
     section, rules similar to the rules of section 52 shall 
     apply.
       ``(f) Denial of Double Benefit.--No deduction or credit 
     under any other provision of this chapter shall be allowed 
     with respect to qualified employee health insurance expenses 
     taken into account under subsection (a).''
       (b) Credit To Be Part of General Business Credit.--Section 
     38(b) of the Internal Revenue Code of 1986 (relating to 
     current year business credit) is amended by striking ``plus'' 
     at the end of paragraph (11), by striking the period at the 
     end of paragraph (12) and inserting ``, plus'', and by adding 
     at the end the following:
       ``(13) the employee health insurance expenses credit 
     determined under section 45D.''
       (c) No Carrybacks.--Subsection (d) of section 39 of the 
     Internal Revenue Code of 1986 (relating to carryback and 
     carryforward of unused credits) is amended by adding at the 
     end the following:
       ``(9) No carryback of section 45D credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the employee health 
     insurance expenses credit determined under section 45D may be 
     carried back to a taxable year ending before the date of the 
     enactment of section 45D.''
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following:

``Sec. 45D. Employee health insurance expenses.''

       (e) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after the date of the enactment of this Act.
                                 ______
                                 

                  ROBB (AND OTHERS) AMENDMENT NO. 3853

  Mr. REID (for Mr. Robb (for himself, Mr. Graham, and Mr. Kennedy) 
proposed an amendment to the bill, H.R. 4810, supra; as follows:

       At the end of the bill, insert the following:

     SEC. __. EFFECTIVE DATE.

       Notwithstanding any other provision of this Act or 
     amendment made by this Act, no such provision or amendment 
     shall take effect until legislation has been enacted that 
     provides a voluntary, affordable outpatient Medicare 
     prescription drug benefit to all Medicare beneficiaries that 
     guarantees meaningful, stable coverage, including stop-loss 
     and low-income protections.
                                 ______
                                 

                TORRICELLI (AND REED) AMENDMENT NO. 3854

  Mr. REED (for Mr. Torricelli and Mr. Reed) proposed an amendment to 
the bill, H.R. 4810, supra; as follows:

       At the end of the bill, add the following:

     SEC. 7. INCREASED LEAD POISONING SCREENINGS AND TREATMENTS 
                   UNDER THE MEDICAID PROGRAM.

       (a) Reporting Requirement.--Section 1902(a)(43)(D) of the 
     Social Security Act (42 U.S.C. 1396a(a)(43)(D)) is amended--
       (1) in clause (iii), by striking ``and'' at the end;
       (2) in clause (iv), by striking the semicolon and inserting 
     ``, and''; and
       (3) by adding at the end the following:
       ``(v) the number of children who are under the age of 3 and 
     enrolled in the State plan and the number of those children 
     who have received a blood lead screening test;''.
       (b) Mandatory Screening Requirements.--Section 1902(a) of 
     the Social Security Act (42 U.S.C. 1396a(a)) is amended--
       (1) in paragraph (64), by striking ``and'' at the end;
       (2) in paragraph (65), by striking the period and inserting 
     ``; and''; and
       (3) by inserting after paragraph (65) the following:
       ``(66) provide that each contract entered into between the 
     State and an entity (including a health insuring organization 
     and a medicaid managed care organization) that is responsible 
     for the provision (directly or through arrangements with 
     providers of services) of medical assistance under the State 
     plan shall provide for--
       ``(A) compliance with mandatory blood lead screening 
     requirements that are consistent with prevailing guidelines 
     of the Centers for Disease Control and Prevention for such 
     screening; and
       ``(B) coverage of qualified lead treatment services 
     described in section 1905(x) including diagnosis, treatment, 
     and follow-up furnished for children with elevated blood lead 
     levels in accordance with prevailing guidelines of the 
     Centers for Disease Control and Prevention.''.
       (c) Reimbursement for Treatment of Children With Elevated 
     Blood Lead Levels.--Section 1905 of the Social Security Act 
     (42 U.S.C. 1396d) is amended--
       (1) in subsection (a)--
       (A) in paragraph (26), by striking ``and'' at the end;
       (B) by redesignating paragraph (27) as paragraph (28); and
       (C) by inserting after paragraph (26) the following:

[[Page 14472]]

       ``(27) qualified lead treatment services (as defined in 
     subsection (x)); and''; and
       (2) by adding at the end the following:
       ``(x)(1) In this subsection:
       ``(A) The term `qualified lead treatment services' means 
     the following:
       ``(i) Lead-related medical management, as defined in 
     subparagraph (B).
       ``(ii) Lead-related case management, as defined in 
     subparagraph (C), for a child described in paragraph (2).
       ``(iii) Lead-related anticipatory guidance, as defined in 
     subparagraph (D), provided as part of--
       ``(I) prenatal services;
       ``(II) early and periodic screening, diagnostic, and 
     treatment services (EPSDT) services described in subsection 
     (r) and available under subsection (a)(4)(B) (including as 
     described and available under implementing regulations and 
     guidelines) to individuals enrolled in the State plan under 
     this title who have not attained age 21; and
       ``(III) routine pediatric preventive services.
       ``(B) The term `lead-related medical management' means the 
     provision and coordination of the diagnostic, treatment, and 
     follow-up services provided for a child diagnosed with an 
     elevated blood lead level (EBLL) that includes--
       ``(i) a clinical assessment, including a physical 
     examination and medically indicated tests (in addition to 
     diagnostic blood lead level tests) and other diagnostic 
     procedures to determine the child's developmental, 
     neurological, nutritional, and hearing status, and the 
     extent, duration, and possible source of the child's exposure 
     to lead;
       ``(ii) repeat blood lead level tests furnished when 
     medically indicated for purposes of monitoring the blood lead 
     concentrations in the child;
       ``(iii) pharmaceutical services, including chelation agents 
     and other drugs, vitamins, and minerals prescribed for 
     treatment of an EBLL;
       ``(iv) medically indicated inpatient services including 
     pediatric intensive care and emergency services;
       ``(v) medical nutrition therapy when medically indicated by 
     a nutritional assessment, that shall be furnished by a 
     dietitian or other nutrition specialist who is authorized to 
     provide such services under State law;
       ``(vi) referral--
       ``(I) when indicated by a nutritional assessment, to the 
     State agency or contractor administering the program of 
     assistance under the special supplemental food program for 
     women, infants and children (WIC) under section 17 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786) and coordination 
     of clinical management with that program; and
       ``(II) when indicated by a clinical or developmental 
     assessment, to the State agency responsible for early 
     intervention and special education programs under the 
     Individuals with Disabilities Education Act (20 U.S.C. 1400 
     et seq.); and
       ``(vii) environmental investigation, as defined in 
     subparagraph (E).
       ``(C) The term `lead-related case management' means the 
     coordination, provision, and oversight of the nonmedical 
     services for a child with an EBLL necessary to achieve 
     reductions in the child's blood lead levels, improve the 
     child's nutrition, and secure needed resources and services 
     to protect the child by a case manager trained to develop and 
     oversee a multi-disciplinary plan for a child with an EBLL or 
     by a childhood lead poisoning prevention program, as defined 
     by the Secretary. Such services include--
       ``(i) assessing the child's environmental, nutritional, 
     housing, family, and insurance status and identifying the 
     family's immediate needs to reduce lead exposure through an 
     initial home visit;
       ``(ii) developing a multidisciplinary case management plan 
     of action that addresses the provision and coordination of 
     each of the following classes of services as appropriate--
       ``(I) whether or not such services are covered under the 
     State plan under this title;
       ``(II) lead-related medical management of an EBLL 
     (including environmental investigation);
       ``(III) nutrition services;
       ``(IV) family lead education;
       ``(V) housing;
       ``(VI) early intervention services;
       ``(VII) social services; and
       ``(VIII) other services or programs that are indicated by 
     the child's clinical status and environmental, social, 
     educational, housing, and other needs;
       ``(iii) assisting the child (and the child's family) in 
     gaining access to covered and non-covered services in the 
     case management plan developed under clause (ii);
       ``(iv) providing technical assistance to the provider that 
     is furnishing lead-related medical management for the child; 
     and
       ``(v) implementation and coordination of the case 
     management plan developed under clause (ii) through home 
     visits, family lead education, and referrals.
       ``(D) The term `lead-related anticipatory guidance' means 
     education and information for families of children and 
     pregnant women enrolled in the State plan under this title 
     about prevention of childhood lead poisoning that addresses 
     the following topics:
       ``(i) The importance of lead screening tests and where and 
     how to obtain such tests.
       ``(ii) Identifying lead hazards in the home.
       ``(iii) Specialized cleaning, home maintenance, 
     nutritional, and other measures to minimize the risk of 
     childhood lead poisoning.
       ``(iv) The rights of families under the Residential Lead-
     Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851 et 
     seq.).
       ``(E) The term `environmental investigation' means the 
     process of determining the source of a child's exposure to 
     lead by an individual that is certified or registered to 
     perform such investigations under State or local law, 
     including the collection and analysis of information and 
     environmental samples from a child's living environment. For 
     purposes of this subparagraph, a child's living environment 
     includes the child's residence or residences, residences of 
     frequently visited caretakers, relatives, and playmates, and 
     the child's day care site. Such investigations shall be 
     conducted in accordance with the standards of the Department 
     of Housing and Urban Development for the evaluation and 
     control of lead-based paint hazards in housing and in 
     compliance with State and local health agency standards for 
     environmental investigation and reporting.
       ``(2) For purposes of paragraph (1)(A)(ii), a child 
     described in this paragraph is a child who--
       ``(A) has attained 6 months but has not attained 6 years of 
     age; and
       ``(B) has been identified as having a blood lead level that 
     equals or exceeds 20 micrograms per deciliter (or after 2 
     consecutive tests, equals or exceeds 15 micrograms per 
     deciliter, or the applicable number of micrograms designated 
     for such tests under prevailing guidelines of the Centers for 
     Disease Control and Prevention).''.
       (d) Enhanced Match for Data Communications System.--Section 
     1903(a)(3) of the Social Security Act (42 U.S.C. 1396b(a)(3)) 
     is amended--
       (1) in subparagraph (D), by striking ``plus'' at the end 
     and inserting ``and''; and
       (2) by inserting after subparagraph (D), the following:
       ``(E)(i) 90 percent of so much of the sums expended during 
     such quarter as are attributable to the design, development, 
     or installation of an information retrieval system that may 
     be easily accessed and used by other federally-funded means-
     tested public benefit programs to determine whether a child 
     is enrolled in the State plan under this title and whether an 
     enrolled child has received mandatory early and periodic 
     screening, diagnostic, and treatment services, as described 
     in section 1905(r); and
       ``(ii) 75 percent of so much of the sums expended during 
     such quarter as are attributable to the operation of a system 
     (whether such system is operated directly by the State or by 
     another person under a contract with the State) of the type 
     described in clause (i); plus''.
       (e) Report.--The Secretary of Health and Human Services, 
     acting through the Administrator of the Health Care Financing 
     Administration, annually shall report to Congress on the 
     number of children enrolled in the medicaid program under 
     title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) 
     who have received a blood lead screening test during the 
     prior fiscal year, noting the percentage that such children 
     represent as compared to all children enrolled in that 
     program.
       (f) Rule of Construction.--Nothing in this section or in 
     any amendment made by this section shall be construed as 
     prohibiting the Secretary of Health and Human Services or the 
     State agency administering the State plan under title XIX of 
     the Social Security Act (42 U.S.C. 1396 et seq.) from using 
     funds provided under title XIX of that Act to reimburse a 
     State or entity for expenditures for medically necessary 
     activities in the home of a lead-poisoned child to prevent 
     additional exposure to lead, including specialized cleaning 
     of lead-contaminated dust, emergency relocation, safe repair 
     of peeling paint, dust control, and other activities that 
     reduce lead exposure.
                                 ______
                                 

                  TORRICELLI AMENDMENTS NOS. 3855-3857

  Mr. REED (for Mr. Torricelli) proposed three amendments to the bill, 
H.R. 4810, supra; as follows:

                           Amendment No. 3855

       At the end of the bill, add the following:

     SEC. 7. WAIVER OF 24-MONTH WAITING PERIOD FOR MEDICARE 
                   COVERAGE OF INDIVIDUALS DISABLED WITH 
                   AMYOTROPHIC LATERAL SCLEROSIS (ALS).

       (a) In General.--Section 226 of the Social Security Act (42 
     U.S.C. 426) is amended--
       (1) by redesignating subsection (h) as subsection (j) and 
     by moving such subsection to the end of the section; and
       (2) by inserting after subsection (g) the following:
       ``(h) For purposes of applying this section in the case of 
     an individual medically determined to have amyotrophic 
     lateral sclerosis (ALS), the following special rules apply:
       ``(1) Subsection (b) shall be applied as if there were no 
     requirement for any entitlement to benefits, or status, for a 
     period longer than 1 month.
       ``(2) The entitlement under such subsection shall begin 
     with the first month (rather than twenty-fifth month) of 
     entitlement or status.

[[Page 14473]]

       ``(3) Subsection (f) shall not be applied.''.
       (b) Conforming Amendment.--Section 1837 of such Act (42 
     U.S.C. 1395p) is amended by adding at the end the following:
       ``(j) In applying this section in the case of an individual 
     who is entitled to benefits under part A pursuant to the 
     operation of section 226(h), the following special rules 
     apply:
       ``(1) The initial enrollment period under subsection (d) 
     shall begin on the first day of the first month in which the 
     individual satisfies the requirement of section 1836(1).
       ``(2) In applying subsection (g)(1), the initial enrollment 
     period shall begin on the first day of the first month of 
     entitlement to disability insurance benefits referred to in 
     such subsection.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to benefits for months beginning after the date 
     of the enactment of this Act.
                                  ____


                           Amendment No. 3856

       At the end, add the following:

     SEC. __. MODIFICATIONS TO DISASTER CASUALTY LOSS DEDUCTION.

       (a) Lower Adjusted Gross Income Threshold.--Paragraph (2) 
     of section 165(h) of the Internal Revenue Code of 1986 
     (relating to treatment of casualty gains and losses) is 
     amended--
       (1) by striking subparagraph (A) and inserting the 
     following:
       ``(A) In general.--If the personal casualty losses for any 
     taxable year exceed the personal casualty gains for such 
     taxable year, such losses shall be allowed for the taxable 
     year only to the extent of the sum of--
       ``(i) the amount of the personal casualty gains for the 
     taxable year, plus
       ``(ii) so much of such excess attributable to losses 
     described in subsection (i) as exceeds 5 percent of the 
     adjusted gross income of the individual (determined without 
     regard to any deduction allowable under subsection (c)(3))'', 
     plus
       ``(iii) so much of such excess attributable to losses not 
     described in subsection (i) as exceeds 10 percent of the 
     adjusted gross income of the individual.

     For purposes of this subparagraph, personal casualty losses 
     attributable to losses not described in subsection (i) shall 
     be considered before such losses attributable to losses 
     described in subsection (i).'', and
       (2) by striking ``10 percent'' in the heading and inserting 
     ``percentage''.
       (b) Above-The-Line Deduction.--Section 62(a) of the 
     Internal Revenue Code of 1986 (defining adjusted gross 
     income) is amended by inserting after paragraph (17) the 
     following:
       ``(18) Certain disaster losses.--The deduction allowed by 
     section 165(c)(3) to the extent attributable to losses 
     described in section 165(i).''
       (c) Election To Take Disaster Loss Deduction for Preceding 
     or Succeeding 2 Years.--Paragraph (1) of section 165(i) of 
     the Internal Revenue Code of 1986 (relating to disaster 
     losses) is amended--
       (1) by inserting ``or succeeding'' after ``preceding'', and
       (2) by inserting ``or succeeding'' after ``preceding'' in 
     the heading.
       (d) Elimination of Marriage Penalty for Individuals 
     Suffering Casualty Losses.--Subparagraph (B) of section 
     165(h)(4) of the Internal Revenue Code of 1986 (relating to 
     special rules) is amended to read as follows:
       ``(B) Joint returns.--For purposes of this subsection--
       ``(i) In general.--Except as provided in clause (ii), a 
     husband and wife making a joint return for the taxable year 
     shall be treated as 1 individual.
       ``(ii) Election.--A husband and wife may elect to have each 
     be treated as a single individual for purposes of applying 
     this section. If an election is made under this clause, the 
     adjusted gross income of each individual shall be determined 
     on the basis of the items of income and deduction properly 
     allocable to the individual, as determined under rules 
     prescribed by the Secretary.''
       (e) Effective Date.--The amendments made by this section 
     shall apply to losses sustained in taxable years beginning 
     after December 31, 1998.
                                  ____


                           Amendment No. 3857

       At the end, add the following:

     SEC. __. ELIMINATION OF MARRIAGE PENALTY FOR INDIVIDUALS 
                   SUFFERING CASUALTY LOSSES.

       (a) In General.--Subparagraph (B) of section 165(h)(4) of 
     the Internal Revenue Code of 1986 (relating to special rules) 
     is amended to read as follows:
       ``(B) Joint returns.--For purposes of this subsection--
       ``(i) In general.--Except as provided in clause (ii), a 
     husband and wife making a joint return for the taxable year 
     shall be treated as 1 individual.
       ``(ii) Election.--A husband and wife may elect to have each 
     be treated as a single individual for purposes of applying 
     this section. If an election is made under this clause, the 
     adjusted gross income of each individual shall be determined 
     on the basis of the items of income and deduction properly 
     allocable to the individual, as determined under rules 
     prescribed by the Secretary.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to losses sustained in taxable years beginning 
     after December 31, 1998.
                                 ______
                                 

                     LAUTENBERG AMENDMENT NO. 3858

  Mr. REID (for Mr. lautenberg) proposed an amendment to the bill, H.R. 
4810, supra; as follows:

       At the end, add the following:

     SEC. 7. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.

       (a) In General.--Part IV of subchapter A of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to credits 
     against tax) is amended by adding at the end the following 
     new subpart:

``Subpart H--Nonrefundable Credit for Holders of Qualified Amtrak Bonds

``Sec. 54. Credit to holders of qualified Amtrak bonds.

     ``SEC. 54. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.

       ``(a) Allowance of Credit.--In the case of a taxpayer who 
     holds a qualified Amtrak bond on a credit allowance date of 
     such bond which occurs during the taxable year, there shall 
     be allowed as a credit against the tax imposed by this 
     chapter for such taxable year the amount determined under 
     subsection (b).
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any credit allowance 
     date for a qualified Amtrak bond is 25 percent of the annual 
     credit determined with respect to such bond.
       ``(2) Annual credit.--The annual credit determined with 
     respect to any qualified Amtrak bond is the product of--
       ``(A) the applicable credit rate, multiplied by
       ``(B) the outstanding face amount of the bond.
       ``(3) Applicable credit rate.--For purposes of paragraph 
     (2), the applicable credit rate with respect to an issue is 
     the rate equal to an average market yield (as of the day 
     before the date of issuance of the issue) on outstanding 
     long-term corporate debt obligations (determined under 
     regulations prescribed by the Secretary).
       ``(4) Special rule for issuance and redemption.--In the 
     case of a bond which is issued during the 3-month period 
     ending on a credit allowance date, the amount of the credit 
     determined under this subsection with respect to such credit 
     allowance date shall be a ratable portion of the credit 
     otherwise determined based on the portion of the 3-month 
     period during which the bond is outstanding. A similar rule 
     shall apply when the bond is redeemed.
       ``(c) Limitation Based on Amount of Tax.--
       ``(1) In general.--The credit allowed under subsection (a) 
     for any taxable year shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this part 
     (other than this subpart and subpart C).
       ``(2) Carryover of unused credit.--If the credit allowable 
     under subsection (a) exceeds the limitation imposed by 
     paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such taxable year.
       ``(d) Qualified Amtrak Bond.--For purposes of this part--
       ``(1) In general.--The term `qualified Amtrak bond' means 
     any bond issued as part of an issue if--
       ``(A) 95 percent or more of the proceeds of such issue 
     are--
       ``(i) to be used for any qualified project, or
       ``(ii) to be pledged to secure payments and other 
     obligations incurred by the National Railroad Passenger 
     Corporation in connection with any qualified project,
       ``(B) the bond is issued by the National Railroad Passenger 
     Corporation,
       ``(C) the issuer--
       ``(i) designates such bond for purposes of this section,
       ``(ii) certifies that it meets the State contribution 
     requirement of paragraph (2) with respect to such project, 
     and
       ``(iii) certifies that it has obtained the written approval 
     of the Secretary of Transportation for such project,
       ``(D) the term of each bond which is part of such issue 
     does not exceed 20 years, and
       ``(E) the payment of principal with respect to such bond is 
     guaranteed by the National Railroad Passenger Corporation.
       ``(2) State contribution requirement.--
       ``(A) In general.--For purposes of paragraph (1)(C)(ii), 
     the State contribution requirement of this paragraph is met 
     with respect to any qualified project if the National 
     Railroad Passenger Corporation has a written binding 
     commitment from 1 or more States to make matching 
     contributions not later than the date of issuance of the 
     issue of not less than 20 percent of the cost of the 
     qualified project.
       ``(B) Use of state matching contributions.--The matching 
     contributions described in subparagraph (A) with respect to 
     each qualified project shall be used--

[[Page 14474]]

       ``(i) in the case of an amount equal to 20 percent of the 
     cost of such project, to redeem bonds which are a part of the 
     issue with respect to such project, and
       ``(ii) in the case of any remaining amount, at the election 
     of the National Railroad Passenger Corporation and the 
     contributing State--

       ``(I) to fund the qualified project, or
       ``(II) to redeem such bonds, or
       ``(III) for the purposes of subclauses (I) and (II).

       ``(3) Qualified project.--The term `qualified project' 
     means--
       ``(A) the acquisition, financing, or refinancing of 
     equipment, rolling stock, and other capital improvements for 
     the northeast rail corridor between Washington, D.C. and 
     Boston, Massachusetts,
       ``(B) the acquisition, financing, or refinancing of 
     equipment, rolling stock, and other capital improvements for 
     the improvement of train speeds or safety (or both) on the 
     high-speed rail corridors designated under section 104(d)(2) 
     of title 23, United States Code, and
       ``(C) with respect to not more than 10 percent of the net 
     proceeds of an issue, the acquisition, financing, or 
     refinancing of equipment, rolling stock, and other capital 
     improvements for non-designated high-speed rail corridors, 
     including station rehabilitation, track or signal 
     improvements, or the elimination of grade crossings.
       ``(4) Temporary period exception.--A bond shall not be 
     treated as failing to meet the requirement of paragraph 
     (1)(A) solely by reason of the fact that the proceeds of the 
     issue of which such bond is a part are invested for a 
     reasonable temporary period (but not more than 36 months) 
     until such proceeds are needed for the purpose for which such 
     issue was issued.
       ``(e) Limitations on Amount of Bonds Designated.--
       ``(1) In general.--There is a qualified Amtrak bond 
     limitation for each fiscal year. Such limitation is--
       ``(A) $1,000,000,000 for each of the fiscal years 2001 
     through 2010, and
       ``(B) zero after 2010.
       ``(2) Carryover of unused limitation.--If for any fiscal 
     year--
       ``(A) the limitation amount under paragraph (1), exceeds
       ``(B) the amount of bonds issued during such year which are 
     designated under subsection (d)(1)(C)(i),

     the limitation amount under paragraph (1) for the following 
     fiscal year shall be increased by the amount of such excess.
       ``(f) Other Definitions.--For purposes of this subpart--
       ``(1) Bond.--The term `bond' includes any obligation.
       ``(2) Credit allowance date.--The term `credit allowance 
     date' means--
       ``(A) March 15,
       ``(B) June 15,
       ``(C) September 15, and
       ``(D) December 15.

     Such term includes the last day on which the bond is 
     outstanding.
       ``(3) State.--The term `State' includes the District of 
     Columbia.
       ``(g) Partnership; S Corporation; and Other Pass-Thru 
     Entities.--Under regulations prescribed by the Secretary, in 
     the case of a partnership, trust, S corporation, or other 
     pass-thru entity, rules similar to the rules of section 41(g) 
     shall apply with respect to the credit allowable under 
     subsection (a).
       ``(h) Bonds Held by Regulated Investment Companies.--If any 
     qualified Amtrak bond is held by a regulated investment 
     company, the credit determined under subsection (a) shall be 
     allowed to shareholders of such company under procedures 
     prescribed by the Secretary.
       ``(i) Use of Trust Account.--
       ``(1) In general.--The amount of any matching contribution 
     with respect to a qualified project described in subsection 
     (d)(2)(B)(i) or (d)(2)(B)(ii)(II) and the temporary period 
     investment earnings on proceeds of the issue with respect to 
     such project described in subsection (d)(4), and any earnings 
     thereon, shall be held in a trust account by a trustee 
     independent of the National Railroad Passenger Corporation to 
     be used to redeem bonds which are part of such issue.
       ``(2) Use of remaining funds in trust account.--Upon the 
     repayment of the principal of all qualified Amtrak bonds 
     issued under this section, any remaining funds in the trust 
     account described in paragraph (1) shall be available to the 
     trustee described in paragraph (1) to meet any remaining 
     obligations under any guaranteed investment contract used to 
     secure earnings sufficient to repay the principal of such 
     bonds. Any remaining balance in such trust account shall be 
     paid to the United States to be used to redeem public-debt 
     obligations.
       ``(j) Credit Included in Gross Income.--Gross income 
     includes the amount of the credit allowed to the taxpayer 
     under this section (determined without regard to subsection 
     (c)) and the amount so included shall be treated as interest 
     income.
       ``(k) Credits May Be Stripped.--Under regulations 
     prescribed by the Secretary--
       ``(1) In general.--There may be a separation (including at 
     issuance) of the ownership of a qualified Amtrak bond and the 
     entitlement to the credit under this section with respect to 
     such bond. In case of any such separation, the credit under 
     this section shall be allowed to the person who on the credit 
     allowance date holds the instrument evidencing the 
     entitlement to the credit and not to the holder of the bond.
       ``(2) Certain rules to apply.--In the case of a separation 
     described in paragraph (1), the rules of section 1286 shall 
     apply to the qualified Amtrak bond as if it were a stripped 
     bond and to the credit under this section as if it were a 
     stripped coupon.
       ``(l) Treatment for Estimated Tax Purposes.--Solely for 
     purposes of sections 6654 and 6655, the credit allowed by 
     this section to a taxpayer by reason of holding a qualified 
     Amtrak bond on a credit allowance date shall be treated as if 
     it were a payment of estimated tax made by the taxpayer on 
     such date.
       ``(m) Credit May Be Transferred.--Nothing in any law or 
     rule of law shall be construed to limit the transferability 
     of the credit allowed by this section through sale and 
     repurchase agreements.
       ``(n) Reporting.--Issuers of qualified Amtrak bonds shall 
     submit reports similar to the reports required under section 
     149(e).''
       (b) Reporting.--Subsection (d) of section 6049 of the 
     Internal Revenue Code of 1986 (relating to returns regarding 
     payments of interest) is amended by adding at the end the 
     following:
       ``(8) Reporting of credit on qualified amtrak bonds.--
       ``(A) In general.--For purposes of subsection (a), the term 
     `interest' includes amounts includible in gross income under 
     section 54(j) and such amounts shall be treated as paid on 
     the credit allowance date (as defined in section 54(f)(2)).
       ``(B) Reporting to corporations, etc.--Except as otherwise 
     provided in regulations, in the case of any interest 
     described in subparagraph (A) of this paragraph, subsection 
     (b)(4) of this section shall be applied without regard to 
     subparagraphs (A), (H), (I), (J), (K), and (L)(i).
       ``(C) Regulatory authority.--The Secretary may prescribe 
     such regulations as are necessary or appropriate to carry out 
     the purposes of this paragraph, including regulations which 
     require more frequent or more detailed reporting.''
       (c) Clerical Amendments.--
       (1) The table of subparts for part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following:

``Subpart H. Nonrefundable Credit for Holders of Qualified Amtrak 
              Bonds.''

       (2) Section 6401(b)(1) of such Code is amended by striking 
     ``and G'' and inserting ``G, and H''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after September 30, 2000.
                                 ______
                                 

                   CLELAND AMENDMENTS NOS. 3859-3860

  Mr. REID (for Mr. Cleland) proposed two amendments to the bill, H.R. 
4810, supra; as follows:

                           Amendment No. 3859

       At the end, add the following:

     SEC. __. EXCLUSION OF UNITED STATES SAVINGS BOND INCOME FROM 
                   GROSS INCOME IF USED TO PAY LONG-TERM CARE 
                   EXPENSES.

       (a) In General.--Subsection (a) of section 135 of the 
     Internal Revenue Code of 1986 (relating to income from United 
     States savings bonds used to pay higher education tuition and 
     fees) is amended to read as follows:
       ``(a) Exclusion.--
       ``(1) General rule.--In the case of an individual who pays 
     qualified expenses during the taxable year, no amount shall 
     be includible in gross income by reason of the redemption 
     during such year of any qualified United States savings bond.
       ``(2) Qualified expenses.--For purposes of this section, 
     the term `qualified expenses' means--
       ``(A) qualified higher education expenses, and
       ``(B) eligible long-term care expenses.''.
       (b) Limitation Where Redemption Proceeds Exceed Qualified 
     Expenses.--Section 135(b)(1) of the Internal Revenue Code of 
     1986 (relating to limitation where redemption proceeds exceed 
     higher education expenses) is amended--
       (1) by striking ``higher education'' in subparagraph 
     (A)(ii), and
       (2) by striking ``higher education'' in the heading 
     thereof.
       (c) Eligible Long-Term Care Expenses.--Section 135(c) of 
     the Internal Revenue Code of 1986 (relating to definitions) 
     is amended by redesignating paragraph (4) as paragraph (5) 
     and by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Eligible long-term care expenses.--The term `eligible 
     long-term care expenses' means qualified long-term care 
     expenses (as defined in section 7702B(c)) and eligible long-
     term care premiums (as defined in section 213(d)(10)) of--
       ``(A) the taxpayer,
       ``(B) the taxpayer's spouse, or

[[Page 14475]]

       ``(C) any dependent of the taxpayer with respect to whom 
     the taxpayer is allowed a deduction under section 151.''.
       (d) Adjustments.--Section 135(d) of the Internal Revenue 
     Code of 1986 (relating to special rules) is amended by 
     redesignating paragraphs (3) and (4) as paragraphs (4) and 
     (5), respectively, and by inserting after paragraph (2) the 
     following new paragraph:
       ``(3) Eligible long-term care expense adjustments.--The 
     amount of eligible long-term care expenses otherwise taken 
     into account under subsection (a) with respect to an 
     individual shall be reduced (before the application of 
     subsection (b)) by the sum of--
       ``(A) any amount paid for qualified long-term care services 
     (as defined in section 7702B(c)) provided to such individual 
     and described in section 213(d)(11), plus
       ``(B) any amount received by the taxpayer or the taxpayer's 
     spouse or dependents for the payment of eligible long-term 
     care expenses which is excludable from gross income.''.
       (e) Coordination With Deductions.--
       (1) Section 213 of the Internal Revenue Code of 1986 
     (relating to medical, dental, etc., expenses) is amended by 
     adding at the end the following new subsection:
       ``(f) Coordination With Savings Bond Income Used for 
     Expenses.--Any expense taken into account in determining the 
     exclusion under section 135 shall not be treated as an 
     expense paid for medical care.''.
       (2) Section 162(l) of such Code (relating to special rules 
     for health insurance costs of self-employed individuals) is 
     amended by adding at the end the following new paragraph:
       ``(6) Coordination with savings bond income used for 
     expenses.--Any expense taken into account in determining the 
     exclusion under section 135 shall not be treated as an 
     expense paid for medical care.''.
       (f) Clerical Amendments.--
       (1) The heading for section 135 of the Internal Revenue 
     Code of 1986 is amended by inserting ``and long-term care 
     expenses'' after ``fees''.
       (2) The item relating to section 135 in the table of 
     sections for part III of subchapter B of chapter 1 of such 
     Code is amended by inserting ``and long-term care expenses'' 
     after ``fees''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.
                                  ____


                           Amendment No. 3860

       At the end, add the following:

     SEC. __. ENHANCED DEDUCTION FOR CORPORATE DONATIONS OF 
                   COMPUTER TECHNOLOGY TO PUBLIC LIBRARIES AND 
                   COMMUNITY CENTERS.

       (a) Expansion of Computer Technology Donations to Public 
     Libraries and Community Centers.--
       (1) In general.--Paragraph (6) of section 170(e) of the 
     Internal Revenue Code of 1986 (relating to special rule for 
     contributions of computer technology and equipment for 
     elementary or secondary school purposes) is amended by 
     striking ``qualified elementary or secondary educational 
     contribution'' each place it occurs in the headings and text 
     and inserting ``qualified computer contribution''.
       (2) Expansion of eligible donees.--Subclause (II) of 
     section 170(e)(6)(B)(i) of such Code (relating to qualified 
     elementary or secondary educational contribution) is amended 
     by striking ``or'' at the end of subclause (I) and by 
     inserting after subclause (II) the following new subclauses:

       ``(III) a public library (within the meaning of section 
     213(2)(A) of the Library Services and Technology Act (20 
     U.S.C. 9122(2)(A)), as in effect on the date of the enactment 
     of the Community Technology Assistance Act, established and 
     maintained by an entity described in subsection (c)(1), or
       ``(IV) a nonprofit or governmental community center, 
     including any center within which an after-school or 
     employment training program is operated,''.

       (b) Conforming Amendments.--
       (1) Section 170(e)(6)((B)(iv) of the Internal Revenue Code 
     of 1986 is amended by striking ``in any grades K-12''.
       (2) The heading of paragraph (6) of section 170(e) of such 
     Code is amended by striking ``elementary or secondary school 
     purposes'' and inserting ``educational purposes''.
       (c) Extension of Deduction.--Section 170(e)(6)(F) of the 
     Internal Revenue Code of 1986 (relating to termination) is 
     amended by striking ``December 31, 2000'' and inserting 
     ``December 31, 2005''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to contributions made after December 31, 2000.
                                 ______
                                 

                        GRAMS AMENDMENT NO. 3861

  Mr. ROTH (for Mr. Grams) proposed an amendment to the bill, H.R. 
4810, supra; as follows:

       At the end of the bill, add the following:

                   TITLE VI--MISCELLANEOUS PROVISIONS

     SEC. 601. REPEAL OF INCREASE IN TAX ON SOCIAL SECURITY 
                   BENEFITS.

       (a) Repeal of Increase in Tax on Social Security 
     Benefits.--
       (1) In general.--Paragraph (2) of section 86(a) (relating 
     to social security and tier 1 railroad retirement benefits) 
     is amended by adding at the end the following new flush 
     sentence:
     ``This paragraph shall not apply to any taxable year 
     beginning after December 31, 2000.''
       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2000.
       (b) Revenue Offset.--The Secretary of the Treasury shall 
     transfer, for each fiscal year, from the general fund in the 
     Treasury to the Federal Hospital Insurance Trust Fund 
     established under section 1817 of the Social Security Act (42 
     U.S.C. 1395i) an amount equal to the decrease in revenues to 
     the Treasury for such fiscal year by reason of the amendment 
     made by this section.
                                 ______
                                 

                       ABRAHAM AMENDMENT NO. 3862

  Mr. ROTH (for Mr. Abraham) proposed an amendment to the bill, H.R. 
4810, supra; as follows:

       At the end of the Act, add the following:

                        TITLE VI--MISCELLANEOUS

     SEC. 601. SENSE OF THE SENATE REGARDING COVERAGE OF 
                   PRESCRIPTION DRUGS UNDER THE MEDICARE PROGRAM.

       (a) Findings.--The Senate makes the following findings:
       (1) Projected on-budget surpluses for the next 10 years 
     total $1,900,000,000,000, according to the President's mid-
     session review.
       (2) Eliminating the death tax would reduce revenues by 
     $104,000,000,000 over 10 years, leaving on-budget surpluses 
     of $1,800,000,000,000.
       (3) The medicare program established under title XVIII of 
     the Social Security Act (42 U.S.C. 1395 et seq.) faces the 
     dual problem of inadequate coverage of prescription drugs and 
     rapid escalation of program costs with the retirement of the 
     baby boom generation.
       (4) The concurrent resolution on the budget for fiscal year 
     2001 provides $40,000,000,000 for prescription drug coverage 
     in the context of a reform plan that improves the long-term 
     outlook for the medicare program.
       (5) The Committee on Finance of the Senate currently is 
     working in a bipartisan manner on reporting legislation that 
     will reform the medicare program and provide a prescription 
     drug benefit.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) on-budget surpluses are sufficient to both repeal the 
     death tax and improve coverage of prescription drugs under 
     the medicare program and Congress should do both this year; 
     and
       (2) the Senate should pass adequately funded legislation 
     that can effectively--
       (A) expand access to outpatient prescription drugs;
       (B) modernize the medicare benefit package;
       (C) make structural improvements to improve the long term 
     solvency of the medicare program;
       (D) reduce medicare beneficiaries' out-of-pocket 
     prescription drug costs, placing the highest priority on 
     helping the elderly with the greatest need; and
       (E) give the elderly access to the same discounted rates on 
     prescription drugs as those available to Americans enrolled 
     in private insurance plans.
                                 ______
                                 

                      MOYNIHAN AMENDMENT NO. 3863

  Mr. MOYNIHAN proposed an amendment to the bill, H.R. 4810, supra; as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. COMBINED RETURN TO WHICH UNMARRIED RATES APPLY.

       (a) In General.--Subpart B of part II of subchapter A of 
     chapter 61 of the Internal Revenue Code of 1986 (relating to 
     income tax returns) is amended by inserting after section 
     6013 the following new section:

     ``SEC. 6013A. COMBINED RETURN WITH SEPARATE RATES.

       ``(a) General Rule.--A husband and wife may make a combined 
     return of income taxes under subtitle A under which--
       ``(1) a separate taxable income is determined for each 
     spouse by applying the rules provided in this section, and
       ``(2) the tax imposed by section 1 is the aggregate amount 
     resulting from applying the separate rates set forth in 
     section 1(c) to each such taxable income.
       ``(b) Treatment of Income.--For purposes of this section--
       ``(1) earned income (within the meaning of section 911(d)), 
     and any income received as a pension or annuity which arises 
     from an employer-employee relationship, shall be treated as 
     the income of the spouse who rendered the services,
       ``(2) income from property shall be divided between the 
     spouses in accordance with their respective ownership rights 
     in such property (equally in the case of property held 
     jointly by the spouses), and
       ``(3) any exclusion from income shall be allowable to the 
     spouse with respect to whom the income would be otherwise 
     includible.
       ``(c) Treatment of Deductions.--For purposes of this 
     section--
       ``(1) except as otherwise provided in this subsection, the 
     deductions described in section 62(a) shall be allowed to the 
     spouse treated as having the income to which such deductions 
     relate,

[[Page 14476]]

       ``(2) the deductions allowable by section 151(b) (relating 
     to personal exemptions for taxpayer and spouse) shall be 
     determined by allocating 1 personal exemption to each spouse,
       ``(3) section 63 shall be applied as if such spouses were 
     not married, except that the election whether or not to 
     itemize deductions shall be made jointly by both spouses and 
     apply to each, and
       ``(4) each spouse's share of all other deductions shall be 
     determined by multiplying the aggregate amount thereof by the 
     fraction--
       ``(A) the numerator of which is such spouse's gross income, 
     and
       ``(B) the denominator of which is the combined gross 
     incomes of the 2 spouses.

     Any fraction determined under paragraph (4) shall be rounded 
     to the nearest percentage point.
       ``(d) Treatment of Credits.--For purposes of this section--
       ``(1) In general.--Except as provided in paragraph (2), 
     each spouse's share of credits allowed to both spouses shall 
     be determined by multiplying the aggregate amount of the 
     credits by the fraction determined under subsection (c)(4).
       ``(2) Earned income credit.--The earned income credit under 
     section 32 shall be determined as if each spouse were a 
     separate taxpayer, except that--
       ``(A) the earned income and the modified adjusted gross 
     income of each spouse shall be determined under the rules of 
     subsections (b), (c), and (e), and
       ``(B) qualifying children shall be allocated between 
     spouses proportionate to the earned income of each spouse 
     (rounded to the nearest whole number).
       ``(e) Special Rules Regarding Income Limitations.--
       ``(1) Exclusions and deductions.--For purposes of making a 
     determination under subsection (b) or (c), any eligibility 
     limitation with respect to each spouse shall be determined by 
     taking into account the limitation applicable to a single 
     individual.
       ``(2) Credits.--For purposes of making a determination 
     under subsection (d)(1), in no event shall an eligibility 
     limitation for any credit allowable to both spouses be less 
     than twice such limitation applicable to a single individual.
       ``(f) Special Rules for Alternative Minimum Tax.--If a 
     husband and wife elect the application of this section--
       ``(1) the tax imposed by section 55 shall be computed 
     separately for each spouse, and
       ``(2) for purposes of applying section 55--
       ``(A) the rules under this section for allocating items of 
     income, deduction, and credit shall apply, and
       ``(B) the exemption amount for each spouse shall be the 
     amount determined under section 55(d)(1)(B).
       ``(g) Treatment as Joint Return.--Except as otherwise 
     provided in this section or in the regulations prescribed 
     hereunder, for purposes of this title (other than sections 1 
     and 63(c)) a combined return under this section shall be 
     treated as a joint return.
       ``(h) Limitations.--
       ``(1) Phase-in of benefit.--
       ``(A) In general.--In the case of any taxable year 
     beginning before January 1, 2004, the tax imposed by section 
     1 or 55 shall in no event be less than the sum of--
       ``(i) the tax determined after the application of this 
     section, plus
       ``(ii) the applicable percentage of the excess of--

       ``(I) the tax determined without the application of this 
     section, over
       ``(II) the amount determined under clause (i).

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

                                                         The applicable
``For taxable years beginning in:                        percentage is:
  2002..........................................................50 ....

  2003..........................................................10.....

       ``(2) Limitation of benefit based on combined adjusted 
     gross income.--With respect to spouses electing the treatment 
     of this section for any taxable year, the tax under section 1 
     or 55 shall be increased by an amount which bears the same 
     ratio to the excess of the tax determined without the 
     application of this section over the tax determined after the 
     application of this section as the ratio (but not over 100 
     percent) of the excess of the combined adjusted gross income 
     of the spouses over $100,000 bears to $50,000.
       ``(i) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     this section.''.
       (b) Unmarried Rate Made Applicable.--So much of subsection 
     (c) of section 1 of the Internal Revenue Code of 1986 as 
     precedes the table is amended to read as follows:
       ``(c) Separate or Unmarried Return Rate.--There is hereby 
     imposed on the taxable income of every individual (other than 
     a married individual (as defined in section 7703) filing a 
     return which is not a combined return under section 6013A, a 
     surviving spouse as defined in section 2(a), or a head of 
     household as defined in section 2(b)) a tax determined in 
     accordance with the following table:''.
       (c) Penalty for Substantial Understatement of Income From 
     Property.--Section 6662 of the Internal Revenue Code of 1986 
     (relating to imposition of accuracy-related penalty) is 
     amended--
       (1) by adding at the end of subsection (b) the following:
       ``(6) Any substantial understatement of income from 
     property under section 6013A.'', and
       (2) by adding at the end the following new subsection:
       ``(i) Substantial Understatement of Income From Property 
     Under Section 6013A.--For purposes of this section, there is 
     a substantial understatement of income from property under 
     section 6013A if--
       ``(1) the spouses electing the treatment of such section 
     for any taxable year transfer property from 1 spouse to the 
     other spouse in such year,
       ``(2) such transfer results in reduced tax liability under 
     such section, and
       ``(3) the significant purpose of such transfer is the 
     avoidance or evasion of Federal income tax.''.
       (d) Protection of Social Security and Medicare Trust 
     Funds.--
       (1) In general.--Nothing in this section shall be construed 
     to alter or amend the Social Security Act (or any regulation 
     promulgated under that Act).
       (2) Transfers.--
       (A) Estimate of secretary.--The Secretary of the Treasury 
     shall annually estimate the impact that the enactment of this 
     section has on the income and balances of the trust funds 
     established under sections 201 and 1817 of the Social 
     Security Act (42 U.S.C. 401 and 1395i).
       (B) Transfer of funds.--If, under subparagraph (A), the 
     Secretary of the Treasury estimates that the enactment of 
     this section has a negative impact on the income and balances 
     of such trust funds, the Secretary shall transfer, not less 
     frequently than quarterly, from the general revenues of the 
     Federal Government an amount sufficient so as to ensure that 
     the income and balances of such trust funds are not reduced 
     as a result of the enactment of this section.
       (e) Clerical Amendment.--The table of sections for subpart 
     B of part II of subchapter A of chapter 61 of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 6013 the following:

``Sec. 6013A. Combined return with separate rates.''.

       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.
       (g) Sunset Provision.--The amendments made by this Act 
     shall not apply to any taxable year beginning after December 
     31, 2004.
                                 ______
                                 

                     ROTH AMENDMENTS NO. 3864-3865

  Mr. ROTH proposed two amendments to the bill, H.R. 4810, supra; as 
follows:

                           Amendment No. 3864

       On page 8, strike lines 6 through 14.
                                  ____


                           Amendment No. 3865

       On page 9, strike lines 23 through 25.
                                 ______
                                 

                        REID AMENDMENT NO. 3866

  Mr. REID proposed an amendment to amendment No. 3861 previously 
proposed by Mr. Roth (for Mr. Grams) to the bill, H.R. 4810, supra; as 
follows:

                           Amendment No. 3866

       At the end of the amendment add the following:


                                findings

       The Grams Social Security amendment includes a general fund 
     transfer to the Medicare HI Trust Fund of $113 billion over 
     the next 10 years.
       Without a general fund transfer to the HI trust fund, the 
     Grams Amendment would cause Medicare to become insolvent 5 
     years earlier than is expected today.
       It is appropriate to protect the Medicare program and 
     ensure its quality and viability by transferring monies from 
     the general fund to the Medicare HI trust fund.
       The adoption of the Grams Social Security amendment has put 
     a majority of the Senate on record in favor of a general fund 
     transfer to the HI trust fund.
       Today, the Medicare HI Trust Fund is expected to become 
     insolvent in 2025.
       The $113 billion the Grams amendment transfers to the HI 
     trust fund to maintain Medicare's solvency is the same amount 
     that the President has proposed to extend its solvency to 
     2030.


                          sense of the senate

       It is the sense of the Senate that the general fund 
     transfer mechanism included in the Grams Social Security 
     amendment should be used to extend the life the Medicare 
     trust fund through 2030, to ensure that Medicare remains a 
     strong health insurance program for our nation's seniors and 
     that its payments to health providers remain adequate.
                                 ______
                                 

                        GRAMS AMENDMENT NO. 3867

  Mr. ROTH (for Mr. Grams) proposed an amendment to amendment No. 3861

[[Page 14477]]

previously proposed by Mr. Roth (for Mr. Grams) to the bill, H.R. 4810, 
supra; as follows:

       Strike all after the first word and add the following:

                   TITLE VI--MISCELLANEOUS PROVISIONS

     SEC. 601. REPEAL OF INCREASE IN TAX ON SOCIAL SECURITY 
                   BENEFITS.

       (a) Repeal of Increase in Tax on Social Security 
     Benefits.--
       (1) In general.--Paragraph (2) of section 86(a) (relating 
     to social security and tier 1 railroad retirement benefits) 
     is amended by adding at the end the following new flush 
     sentence:
     ``This paragraph shall not apply to any taxable year 
     beginning after December 31, 2000.''
       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2000.
       (b) Revenue Offset.--The Secretary of the Treasury shall 
     transfer, for each fiscal year, from the general fund in the 
     Treasury to the Federal Hospital Insurance Trust Fund 
     established under section 1817 of the Social Security Act (42 
     U.S.C. 1395i) an amount equal to the decrease in revenues to 
     the Treasury for such fiscal year by reason of the amendment 
     made by this section.
       This section shall become effective 1 day after enactment 
     of this Act.
                                 ______
                                 

                   STEVENS AMENDMENTS NOS. 3868-3873

  Mr. ROTH (for Mr. Stevens) proposed six amendments to bill, H.R. 
4810, supra; as follows:

                           Amendment No. 3868

       At the appropriate place insert the following new section:

     SEC.  . ALASKA EXEMPTION FROM DYEING REQUIREMENTS.

       (a) Except to Dyeing Requirements for ion Exempt Diesel 
     Fuel and Kerosene.--Paragraph (1) section 4082(c) (relating 
     to exception to dyeing requirements) is amended to read as 
     follows:
       ``(1) removed, entered, or sold in the State of Alaska for 
     ultimate sale or use in such State, and''.
       (b) Effective Date.--The amendment made by this section 
     applies with respect to fuel removed, entered, or sold on or 
     after the date of the enactment of this Act.
                                  ____


                           Amendment No. 3869

       At the appropriate place insert the following new section:

     SEC.  . 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) Speciality 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. The preceding sentence shall not apply for purposes 
     of applying subsection (b)(1)(A) to a plan which is not a 
     multiemployee plan.''
       (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) Application of Special Early Retirement Rules.--Section 
     415(b)(2)(F) (relating to plans maintained by governments and 
     tax-exempt organizations) is amended--
       (1) by inserting ``a multiemployer plan (within the meaning 
     of section 414(f)),'' after ``section 414(d),'', and
       (2) by striking the heading and inserting:
       ``(F) Special early retirement rules for certain plans--''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.'.
                                  ____


                           Amendment No. 3870

       At the appropriate place insert the following new section:

     SEC.   . CHARITABLE CONTRIBUTION DEDUCTION FOR CERTAIN 
                   EXPENSES INCURRED IN SUPPORT OF NATIVE ALASKAN 
                   SUBSISTENCE WHALING.

       (a) In General.--Section 170 (relating to charitable, etc., 
     contributions and gifts) is amended by redesignating 
     subsection (m) as subsection (n) and by inserting after 
     subsection (l) the following new subsection:
       ``(m) Expenses Paid by Certain Whaling Captains in Support 
     of Native Alaskan Subsistence Whaling.--
       ``(1) In general.--In the case of an individual who is 
     recognized by the Alaska Eskimo Whaling Commission as a 
     whaling captain charged with the responsibility of 
     maintaining and carrying out sanctioned whaling activities 
     and who engages in such activities during the taxable year, 
     the amount described in paragraph (2) (to the extent such 
     amount does not exceed $7,500 for the taxable year) shall be 
     treated for purposes of this section as a charitable 
     contribution.
       ``(2) Amount described.--
       ``(A) In general.--The amount described in this paragraph 
     is the aggregate of the reasonable and necessary whaling 
     expenses paid by the taxpayer during the taxable year in 
     carrying out sanctioned whaling activities.
       ``(B) Whaling expenses.--For purposes of subparagraph (A), 
     the term `whaling expenses' includes expenses for--
       ``(i) the acquisition and maintenance of whaling boats, 
     weapons, and gear used in sanctioned whaling activities,
       ``(ii) the supplying of food for the crew and other 
     provisions for carrying out such activities, and
       ``(iii) storage and distribution of the catch from such 
     activities.
       ``(3) Sanctioned whaling activities.--For purposes of this 
     subsection, the term `sanctioned whaling activities' means 
     subsistence bowhead whale hunting activities conducted 
     pursuant to the management plan of the Alaska Eskimo Whaling 
     Commission.''
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2000.
                                  ____


                           Amendment No. 3871

       At the appropriate place insert the following new sections:

     SEC.   . TAX TREATMENT OF ALASKA NATIVE SETTLEMENT TRUSTS.

       (a) Modification of Tax Rate.--Section 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new subsection:
       ``(i) In lieu of the tax imposed by subsection (c), there 
     is hereby imposed on any electing Settlement Trust (as 
     defined in section 646(e)(2)) a tax at the rate of 15% on its 
     taxable income (as defined in section 646(d)), except that if 
     such trust has a net capital gain for any taxable year, a tax 
     shall be imposed on such net capital gain at the rate of tax 
     that would apply to such net capital gain if the taxpayer 
     were an individual subject to a tax on ordinary income at a 
     rate of 15%.''
       (b) Special Rules Relating to Taxation of Alaska Native 
     Settlement Trusts.--Subpart A of Part I of subchapter J of 
     Chapter 1 (relating to general rules for taxation of trusts 
     and estates) is amended by adding at the end the following

     ``SEC. 646. TAX TREATMENT OF ALASKA NATIVE SETTLEMENT TRUSTS.

       ``(a) In General.--Except as otherwise provided in this 
     section, the provisions of this subchapter and section 1(c) 
     shall apply to all settlement trusts organized under the 
     Alaska Native Claims Settlement Act (``Claims Act'')).
       ``(b) One-Time Election. 
       ``(1) Effect.--In the case of an electing Settlement Trust, 
     then except as set forth in this section--
       ``(A) section 1(i), and not section 1(e), shall apply to 
     such trust;
       ``(B) no amount shall be includible in the gross income of 
     any person by reason of a contribution to such trust; and
       ``(C) the beneficiaries of such trust shall be subject to 
     tax on the distributions by such trust only as set forth in 
     paragraph (2).
       ``(2) Tax treatment of distributions to beneficiaries by 
     electing settlement trusts.--
       ``(A) distributions by an electing Settlement Trust shall 
     be taxed as follows:
       ``(i) Any distributions by such trust, up to the amount for 
     such taxable year of such trust's taxable income plus any 
     amount of income excluded from the income of the trust by 
     section 103, shall be excluded from the gross income of the 
     recipient beneficiaries;
       ``(ii) Next, any distributions by such trust during the 
     taxable year that are not excluded from the recipient 
     beneficiaries' income pursuant to clause (i) shall 
     nonetheless be excluded from the gross income of the 
     recipient beneficiaries. The maximum exclusion under this 
     clause shall be equal to the amount during all years in which 
     an election under this subsection has been in effect of such 
     trust's taxable income plus any amount of income excluded 
     from the income of the trust by section 103, reduced by any 
     amounts which have previously been excluded from the 
     recipient beneficiaries's income under this clause or clause 
     (i);
       ``(iii) The remaining distributions by the Trust during the 
     taxable year which are not excluded from the beneficiaries' 
     income pursuant to clause (i) or (ii) shall be deemed for all 
     purposes of this title to be treated as distributions by the 
     sponsoring Native Corporation during such taxable year upon 
     its stock and taxable to the recipient beneficiaries to the 
     extend provided in Subchapter C of Subtitle A.
       ``(3) Time and Method of Election.--An election under this 
     subsection shall be made--
       ``(A) before the due date (including extensions) for filing 
     the Settlement Trust's return of tax for the first taxable 
     year of such trust ending after the date of enactment of this 
     subsection, and

[[Page 14478]]

       ``(B) by attaching to such return of tax a statement 
     specifically providing for such election.
       ``(4) Period election in effect.--Except as provided in 
     subsection (c), an election under this subsection--
       ``(A) shall apply to the 1st taxable year described in 
     subparagraph (3)(A) and all subsequent taxable years, and
       ``(B) may not be revoked once it is made.
       ``(c) Special Rules Where Transfer Restrictions Modified.--
       ``(1) Transfer of beneficial interests.--If the beneficial 
     interests in an electing Settlement Trust may at any time be 
     disposed of in a manner which would not be permitted by 
     section 7(h) of the Claims Act (43 U.S.C. 1606(h)) if such 
     beneficial interest were Settlement Common Stock.--
       ``(A) no election may be made under subsection (b) with 
     respect to such trust, and
       ``(B) if an election under subsection (b) is in effect as 
     of such time.--
       ``(i) such election is revoked as of the 1st day of the 
     taxable year following the taxable year in which such 
     disposition is first permitted, and
       ``(ii) there is hereby imposed on such Alaska Native 
     Settlement Trust in lieu of any other taxes for such taxable 
     year a tax equal to the product of the fair market value of 
     the assets held by such trust as of the close of the taxable 
     year in which such disposition is first permitted and the 
     highest rate of tax under section 1(e) for such taxable year.
       ``(2) Stock in corporation.--If--
       ``(A) the Settlement Common Stock in the sponsoring Native 
     Corporation may be disposed of in any manner not permitted by 
     section 7(h) of the Claims Act, and
       ``(B) at any time such disposition is first permitted, the 
     sponsoring Native Corporation transfers assets to such 
     Settlement Trust,

     subparagraph (1)(B) shall be applied to such trust in the 
     same manner as if the trust permitted dispositions of 
     beneficial interests in the trust other than would be 
     permitted under section 7(h) of the Claims Act if such 
     beneficial interests were Settlement Common Stock.
       ``(3) Administrative programs.--For purposes of Subtitle F, 
     the tax imposed by clause (ii) of subparagraph (1)(B) shall 
     be treated as an excise tax with respect to which the 
     deficiency procedures of such subtitle apply.
       ``(d) Taxable Income.--For purposes of this Title, the 
     taxable income of an electing Settlement Trust shall be 
     determined under section 641(b) without regard to any 
     deduction under section 651 or 661.
       ``(e) Definitions.--For purposes of this section, section 
     1(i) and section 6041,--
       ``(1) Native corporation.--The term `Native Corporation' 
     has the meaning given such term by section 3(m) of the Claims 
     Act (43 U.S.C. 1602(m)).
       ``(2) Sponsoring native corporation.--The term `sponsoring 
     Native Corporation' means the respective Native Corporation 
     that transferred assets to an electing Settlement Trust.
       ``(3) Settlement trust.--The term `Settlement Trust' means 
     a trust which constitutes a settlement trust under section 39 
     of the Claims Act (43 U.S.C. 1629e).
       ``(4) Electing settlement trust.--The term `electing 
     Settlement Trust' means a Settlement Trust that has made the 
     election described in subsection (b).
       ``(5) Settlement common stock.--The term `Settlement Common 
     Stock' has the meaning given such term by section 3(p) of the 
     Claims Act (43 U.S.C. 1602(p)).''
       (c) Reporting.--Section 6041 of such Code is amended by 
     adding at the end the following new subsection:
       ``(f) Application to Certain Alaska Native Settlement 
     Trusts.--In lieu of all other rules (whether imposed by 
     statute, regulation or otherwise) that require a trust to 
     report to its beneficiaries and the Commissioner concerning 
     distributable share information, the rules of this subsection 
     shall apply to an electing Settlement Trust (as defined in 
     section 646(e)(4)). An electing Settlement Trust is not 
     required to include with its return of income or send to its 
     beneficiaries statements that identify the amounts 
     distributed to specific beneficiaries. An electing Settlement 
     Trust shall instead include with its own return of income a 
     statement as to the total amount of its distributions during 
     such taxable year, the amount of such distributions which are 
     excludable from the recipient beneficiaries' gross income 
     pursuant to section 646, and the amount, if any, of its 
     distributions during such year which were deemed to have been 
     made by the sponsoring Native Corporation (as such term is 
     defined in section 646(e)(2)).''
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years of electing Settlement Trusts, 
     their beneficiaries, and sponsoring Native Corporations 
     ending after the date of the enactment of this Act and to 
     contributions made to electing Settlement Trusts during such 
     year and thereafter.
                                  ____


                           Amendment No. 3872

       At the appropriate place insert the following new section:

     SEC.  .  TAX TREATMENT OF PASSENGERS FILLING EMPTY SEATS ON 
                   NONCOMMERCIAL AIRPLANES.

       (a) Subsection (j) of section 132 of the Internal Revenue 
     Code of 1986 (relating to certain fringe benefits) is amended 
     by adding at the end thereof the following new paragraph:
       ``(9) Special rule for certain noncommercial air 
     transportation.--Notwithstanding any other provision of this 
     section, the term `no-additional-cost service' includes the 
     value of transportation provided to any person on a 
     noncommercially operated aircraft if--
       ``(A) such transportation is provided on a flight made in 
     the ordinary course of the trade or business of the taxpayer 
     owning or leasing such aircraft for use in such trade or 
     business,
       ``(B) the flight on which the transportation is provided 
     would have been made whether or not such person was 
     transported on the flight, and
       ``(C) no substantial additional cost is incurred in 
     providing such transportation to such person.

     For purposes of this paragraph, an aircraft is 
     noncommercially operated if transportation thereon is not 
     provided or made available to the general public by purchase 
     of a ticket or other fare.''
       (b) Effective Date.--The amendment made by Section 1 shall 
     take effect on January 1, 2001.
                                  ____


                           Amendment No. 3873

       At the appropriate place insert the following new section:

     SEC.   . INCOME AVERAGING FOR FISHERMEN WITHOUT INCREASING 
                   ALTERNATIVE MINIMUM TAX LIABILITY AND FISHERMEN 
                   RISK MANAGEMENT ACCOUNTS.

       (a)(1) Income Averaging for Fishermen Without Increasing 
     Alternative Minimum Tax Liability.--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 fishermen.--
     Solely for purposes of this section, section 1301 (relating 
     to averaging of fishing income) shall not apply in computing 
     the regular tax.''.
       (2) Allowing income averaging for fishermen.--
       (A) In general.--Section 1301(a) is amended by striking 
     ``farming business'' and inserting ``farming business or 
     fishing business,''.
       (B) Definition of elected farm income.--
       (i) In general.--Clause (i) of section 1301(b)(1)(A) is 
     amended by inserting ``or fishing business'' before the 
     semicolon.
       (ii) Conforming amendment.--Subparagraph (B) of section 
     1301(b)(1) is amended by inserting ``or fishing business' 
     after ``farming business'' both places it occurs.
       (C) Definition of fishing business.--Section 1301(b) is 
     amended by adding at the end the following new paragraph:
       ``(4) Fishing business.--The term `fishing business' means 
     the conduct of commercial fishing (as defined in section 3 of 
     the Magnuson-Stevens Fisher Conservation and Management Act 
     (16 U.S.C. 1802, P.L. 94-265 as amended).)''.
       (b) Fishermen Risk Management Accounts.--Subpart C of part 
     II of subchapter E of chapter 1 (relating to taxable year for 
     which deductions taken) is amended by inserting after section 
     468B the following:

     ``SEC. 468C. FISHING RISK MANAGEMENT ACCOUNTS.

       ``(a) Deduction Allowed.--In the case of an individual 
     engaged in an eligible commercial fishing activity, there 
     shall be allowed as a deduction for any taxable year the 
     amount paid in cash by the taxpayer during the taxable year 
     Fishing Risk Management Account (hereinafter referred to as 
     the `FisheRMen Account').
       ``(b) Limitation.--
       ``(1) Contributions.--The amount which a taxpayer may pay 
     into the FisheRMen Account for any taxable year shall not 
     exceed 20 percent of so much of the taxable income of the 
     taxpayer (determined without regard to this section) which is 
     attributable (determined in the manner applicable under 
     section 1301) to any eligible commercial fishing activity.
       ``(2) Distributions.--Distributions from a FisheRMen 
     Account may not be used to purchase, lease, or finance any 
     new fishing vessel, add capacity to any fishery, or otherwise 
     contribute to the overcapitalization of any fishery. The 
     Secretary of Commerce shall implement regulations to enforce 
     this paragraph.
       ``(c) Eligible Businesses.--For purposes of this section--
       ``(1) Commercial fishing activity.--The term `commercial 
     fishing activity' has the meaning given the term `commercial 
     fishing' by section (3) of the Magnuson-Stevens Fishery 
     Conservation and Management Act (16 U.S.C. 1802, P.L. 94-265 
     as amended) but only if such fishing is not a passive 
     activity (within the meaning of section 469(c)) of the 
     taxpayer.
       ``(d) Fishermen Account.--For purposes of this section--
       ``(1) In general.--The term `FisheRMen Account' means a 
     trust created or organized in the United States for the 
     exclusive benefit of the taxpayer, but only if the written 
     governing instrument creating the trust meets the following 
     requirements:

[[Page 14479]]

       ``(A) No contribution will be accepted for any taxable year 
     in excess of the amount allowed as a deduction under 
     subsection (a) for such year.
       ``(B) The trustee is a bank (as defined in section 408(n)) 
     or another person who demonstrates to the satisfaction of the 
     Secretary that the manner in which such person will 
     administer the trust will be consistent with the requirements 
     of this section.
       ``(C) The assets of the trust consist entirely of cash or 
     of obligations which have adequate stated interest (as 
     defined in section 1274(c)(2)) and which pay such interest 
     not less often than annually.
       ``(D) All income of the trust is distributed currently to 
     the grantor.
       ``(E) The assets of the trust will not be commingled with 
     other property except in a common trust fund or common 
     investment fund.
       ``(2) Account Taxed as Grantor Trust.--The grantor of a 
     FisheRMen Account shall be treated for purposes of this title 
     as the owner of such Account and shall be subject to tax 
     thereon in accordance with subpart E of part I of subchapter 
     J of this chapter (relating to grantors and others treated as 
     substantial owners).
       ``(e) Inclusion of Amounts Distributed.--
       ``(1) In general.--Except as provided in paragraph (2), 
     there shall be includible in the gross income of the taxpayer 
     for any taxable year--
       ``(A) Any amount distributed from a FisheRMen Account of 
     the taxpayer during such taxable year, and
       ``(B) any deemed distribution under
       ``(i) subsection (f)(1) (relating to deposits not 
     distributed within 5 years),
       ``(ii) subsection (f)(2) (relating to cessation in eligible 
     commercial fishing activities), and
       ``(iii) subparagraph (A) or (B) of subsection (f)(3) 
     (relating to prohibited transactions and pledging account as 
     security).
       ``(2) Exceptions.--Paragraph (1)(A) shall not apply to--
       ``(A) any distribution to the extent attributable to income 
     of the Account, and
       ``(B) the distribution of any contribution paid during a 
     taxable year to a FisheRMen Account to the extent that such 
     contribution exceeds the limitation applicable under 
     subsection (b) if requirements similar to the requirements of 
     section 408(d)(4) are met.
       For purposes of subparagraph (A), distributions shall be 
     treated as first attributable to income and then to other 
     amounts.
       ``(f) Special Rules.--
       ``(1) Tax on deposits in account which are not distributed 
     within 5 years.--
       ``(A) In general.--If, at the close of any taxable year, 
     there is a nonqualaified balance in any FisheRMen Account--
       ``(i) there shall be deemed distributed from such Account 
     during such taxable year an amount equal to such balance, and
       ``(ii) the taxpayer's tax imposed by this chapter for such 
     taxable year shall be increased by 10 percent of such deemed 
     distribution.

     The preceding sentence shall not apply if an amount equal to 
     such nonqualified balance is distributed from such Account to 
     the taxpayer before the due date (including extensions) for 
     filing the return of tax imposed by this chapter for such 
     year (or, if earlier, the date the taxpayer files such return 
     for such year).
       ``(B) Nonqualified balance.--For purposes of subparagraph 
     (A), the term `nonqualified balance' means any balance in the 
     Account on the last day of the taxable year which is 
     attributable to amounts deposited in such Account before the 
     4th preceding taxable year.
       ``(C) Ordering rule.--For purposes of this paragraph, 
     distributions from a FisheRMen Account (other than 
     distributions of current income) shall be treated as made 
     from deposits in the order in which such deposits were made, 
     beginning with the earliest deposits.
       ``(2) Cessation in eligible business.--At the close of the 
     first disqualification period after a period for which the 
     taxpayer was engaged in an eligible commercial fishing 
     activity, there shall be deemed distribued from the FisheRMen 
     Account of the taxpayer an amount equal to the balance in 
     such Account (if any) at the close of such disqualification 
     period. For purposes of the preceding sentence, the term 
     `disqualaification period' means any period of 2 consecutive 
     taxable years for which the taxpayer is not engaged in an 
     eligible commercial fishing activity.
       ``(3) Certain rules to apply.--Rules similar to the 
     following rules shall apply for purposes of this section:
       ``(A) Section 220(f)(8) (relating to treatment on death).
       ``(B) Section 408(e)(2) (relating to loss of exemption of 
     account where individual engages in prohibited transaction).
       ``(C) Section 408(e)(4) (relating to effect of pledging 
     account as security).
       ``(D) Section 408(g) (relating to community property laws).
       ``(E) Section 408(h) (relating to custodial accounts).
       ``(4) Time when payments deemed made.--For purposes of this 
     section, a taxpayer shall be deemed to have made a payment to 
     a FisheRMen Account on the last day of a taxable year if such 
     payment is made on account of such taxable year and is made 
     on or before the due date (without regard to extensions) for 
     filing the return of tax for such taxable year.
       ``(5) Individual--For purposes of this section, the term 
     `individual' shall not include an estate or trust
       ``(6) Deduction not allowed for self-employment tax.--The 
     deduction allowable by reason of subsection (a) shall not be 
     taken into account in determining an individual's net 
     earnings from self-employment (within the meaning of section 
     1402(a)) for purposes of chapter 2.
       ``(g) Reports.--The trustee of a FisheRMen Account shall 
     make such reports regarding such Account to the Secretary and 
     to the person for whose benefit the Account is maintained 
     with respect to contributions, distributions, and such other 
     matters as the Secretary may require under regulations. The 
     reports required by this subsection shall be filed at such 
     time and in such manner and furnished to such persons at such 
     time and in such manner as may be required by such 
     regulations.'.
       ``(c) Conformity With Existing Provisions And Clerical 
     Amendment.--
       (1) Subsection (a) of section 4973 (relating to tax on 
     excess contributions to certain tax-favored accounts and 
     annuities) is amended by striking `or' at the end of 
     paragraph (3), by redesignating paragraph (4) as paragraph 
     (5), and by inserting after paragraph (3) the following:
       ``(4) a FisheRMen Account (within the meaning of section 
     468C(d)), or''.
       ``(2) Section 4973 is amended by adding at the end the 
     following:
       ``(g) Excess Contributions to Fishermen Accounts.--For 
     purposes of this section, in the case of a FisheRMen Account 
     (within the meaning of section 468C(d)), the term excess 
     contributions' means the amount by which the amount 
     contributed for the taxable year to the Account exceeds the 
     amount which may be contributed to the Account under section 
     468C(b) for such taxable year. For purposes of this 
     subsection, any contribution which is distributed out of the 
     FisheRMen Account in a distribution to which section 
     468C(e)(2)(B) applies shall be treated as an amount not 
     contributed.'.
       ``(3) The section heading for section 4973 is amended to 
     read as follows:

     ``SEC. 4973. EXCESS CONTRIBUTIONS TO CERTAIN ACCOUNTS, 
                   ANNUITIES, ETC.''.

       ``(4) The table of sections for chapter 43, is amended by 
     striking the item relating to section 4973 and inserting the 
     following:

       ``Sec, 4973. Excess contributions to certain accounts, 
     annuities, etc.''.

       (5) Tax on prohibited transactions.--Subsection (c) of 
     section 4975 (relating to tax on prohibited transactions) is 
     amended by adding at the end the following:
       ``(6) Special rule for fishermen accounts.--A person for 
     whose benefit a FisheRMen Account (within the meaning of 
     section 468C(d)) is established shall be exempt from the tax 
     imposed by this section with respect to any transaction 
     concerning such account (which would otherwise be taxable 
     under this section), if, with respect to such transaction, 
     the account ceases to be a FisheRMen Account by reason of the 
     application of section 469C(f)(3)(A) to such account.'. (2) 
     Paragraph (1) of section 4975(e) is amended by redesignating 
     subparagraphs (E) and (F) and (G), respectively, and by 
     inserting after subparagraph (D) the following:
       ``(E) a FisheRMen Account described in section 468C(d),''.
       (6) Failure to provide reports on fishermen accounts.--
     Paragraph (2) of section 6693(a) (relating to failure to 
     provide reports on certain tax-favored accounts or annuities) 
     is amended by redesignating subparagraphs (C) and (D) as 
     subparagraph (D) and (E), respectively,and by inserting after 
     subparagraph (B) the following:
       ``(C) section 468C(g) (relating to FisheRMen Accounts),''.
       (7) Clerical amendment.--The table of sections for subpart 
     C of part II of subchapter E of chapter 1 is amended by 
     inserting after the item relating to section 468B the 
     following:

     ``SEC. 468C. FISHING RISK MANAGEMENT ACCOUNTS.''.

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

                 BURNS (AND OTHERS) AMENDMENT NO. 3874

  Mr. BURNS (for himself, Mr. Abraham, Mr. Hatch, Mr. Craig, Mr. Kyl, 
Mr. Bennett, Mr. Frist, and Mr. Gramm) proposed an amendment to the 
bill, H.R. 4810, supra; as follows:

       At the appropriate place, insert the following:

     SEC.   . REPEAL OF MODIFICATION OF INSTALLMENT METHOD.

       (a) In General.--Subsection (a) of section 536 of the 
     Ticket to Work and Work Incentives Improvement Act of 1999 
     (relating to modification of installment method and repeal of 
     installment method for accrual method taxpayers) is repealed 
     effective with respect to sales and other dispositions 
     occurring on or after the date of enactment of such Act.

[[Page 14480]]

       (b) Applicability.--The Internal Revenue Code of 1986 
     should be applied and administered as if such subsection (and 
     the amendments made by such subsection) had not been enacted.
                                 ______
                                 

                      HOLLINGS AMENDMENT NO. 3875

  Mr. REID (for Mr. Hollings) proposed an amendment to the bill, H.R. 
4810, supra; as follows:

       Strike beginning with ``Marriage Tax Relief Reconciliation 
     Act of 2000'' through the end of the bill.
                                 ______
                                 

                        DODD AMENDMENT NO. 3876

  Mr. REID (for Mr. Dodd) proposed an amendment to the bill, H.R. 4810, 
supra; as follows:

   At the end, add the following:

                  TITLE II--DEPENDENT CARE TAX CREDIT

     SEC. 201. EXPANSION OF DEPENDENT CARE TAX CREDIT.

       (a) In General.--Paragraph (2) of section 21(a) (relating 
     to expenses for household and dependent care services 
     necessary for gainful employment) is amended to read as 
     follows:
       ``(2) Applicable percentage defined.--For purposes of 
     paragraph (1), the term `applicable percentage' means 50 
     percent (40 percent for taxable years beginning after 
     December 31, 2002, and before January 1, 2005) reduced (but 
     not below 20 percent) by 1 percentage point for each $1,000 
     (or fraction thereof) by which the taxpayer's adjusted gross 
     income for the taxable year exceeds $30,000.''
       (b) Minimum Credit Allowed for Stay-At-Home Parents.--
     Section 21(e) (relating to special rules) is amended by 
     adding at the end the following:
       ``(11) Minimum credit allowed for stay-at-home parents.--
     Notwithstanding subsection (d), in the case of any taxpayer 
     with one or more qualifying individuals described in 
     subsection (b)(1)(A) under the age of 1 at any time during 
     the taxable year, such taxpayer shall be deemed to have 
     employment-related expenses with respect to not more than 2 
     of such qualifying individuals in an amount equal to the 
     greater of--
       ``(A) the amount of employment-related expenses incurred 
     for such qualifying individuals for the taxable year 
     (determined under this section without regard to this 
     paragraph), or
       ``(B) $41.67 for each month in such taxable year during 
     which each such qualifying individual is under the age of 
     1.''.
       (c) Inflation Adjustment of Dollar Amounts.--
       (1) Section 21 is amended by redesignating subsection (f) 
     as subsection (g) and by inserting after subsection (e) the 
     following new subsection:
       ``(f) Inflation Adjustment.--In the case of any taxable 
     year beginning in a calendar year after 2001, the $30,000 
     amount contained in subsection (a), the $2,400 amount in 
     subsection (c), and the $41.67 amount in subsection (e)(11) 
     shall be increased by an amount equal to--
       ``(1) such dollar amount, multiplied by
       ``(2) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2000' for `calendar year 1992' in subparagraph 
     (B) thereof.

     If the increase determined under the preceding sentence is 
     not a multiple of $50 ($5 in the case of the amount in 
     subsection (e)(11)), such amount shall be rounded to the next 
     lowest multiple thereof.''
       (2) Paragraph (2) of section 21(c) is amended by striking 
     ``$4,800'' and inserting ``twice the dollar amount applicable 
     under paragraph (1)''.
       (3) Paragraph (2) of section 21(d) is amended by striking 
     ``less than--'' and all that follows through the end of the 
     first sentence and inserting ``less than \1/12\ of the amount 
     which applies under subsection (c) to the taxpayer for the 
     taxable year.''
       (d) Credit Allowed Based on Residency in Certain Cases.--
     Subsection (e) of section 21 is amended by adding at the end 
     the following new paragraph:
       ``(12) Credit allowed based on residency in certain 
     cases.--In the case of a taxpayer--
       ``(A) who does not satisfy the household maintenance test 
     of subsection (a) for any period, but
       ``(B) whose principal place of abode for such period is 
     also the principal place of abode of any qualifying 
     individual,

     then such taxpayer shall be treated as satisfying such test 
     for such period but the amount of credit allowable under this 
     section with respect to such individual shall be determined 
     by allowing only \1/12\ of the limitation under subsection 
     (c) for each full month that the requirement of subparagraph 
     (B) is met.''
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

                TITLE III--EXPANSION OF ADOPTION CREDIT

     SEC. 301. EXPANSION OF ADOPTION CREDIT.

       (a) Special Needs Adoption.--
       (1) Credit amount.--Paragraph (1) of section 23(a) 
     (relating to allowance of credit) is amended to read as 
     follows:
       ``(1) In general.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter--
       ``(A) in the case of a special needs adoption, $10,000, or
       ``(B) in the case of any other adoption, the amount of the 
     qualified adoption expenses paid or incurred by the 
     taxpayer.''.
       (2) Year credit allowed.--Section 23(a)(2) (relating to 
     year credit allowed) is amended by adding at the end the 
     following new flush sentence:

     ``In the case of a special needs adoption, the credit allowed 
     under paragraph (1) shall be allowed for the taxable year in 
     which the adoption becomes final.''.
       (3) Dollar limitation.--Section 23(b)(1) is amended--
       (A) by striking ``subsection (a)'' and inserting 
     ``subsection (a)(1)(B)'', and
       (B) by striking ``($6,000, in the case of a child with 
     special needs)''.
       (4) Definition of special needs adoption.--Section 23(d) 
     (relating to definitions) is amended by adding at the end the 
     following new paragraph:
       ``(4) Special needs adoption.--The term `special needs 
     adoption' means the final adoption of an individual during 
     the taxable year who is an eligible child and who is a child 
     with special needs.''.
       (5) Definition of child with special needs.--Section 
     23(d)(3) (defining child with special needs) is amended to 
     read as follows:
       ``(3) Child with special needs.--The term `child with 
     special needs' means any child if a State has determined that 
     the child's ethnic background, age, membership in a minority 
     or sibling groups, medical condition or physical impairment, 
     or emotional handicap makes some form of adoption assistance 
     necessary.''.
       (b) Increase in Income Limitations.--Section 23(b)(2) 
     (relating to income limitation) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``$75,000'' and inserting ``$63,550 
     ($105,950 in the case of a joint return)'', and
       (B) by striking ``$40,000'' and inserting ``the applicable 
     amount'', and
       (2) by adding at the end the following new subparagraph:
       ``(C) Applicable amount.--For purposes of subparagraph (A), 
     the applicable amount, with respect to any taxpayer, for the 
     taxable year shall be an amount equal to the excess of--
       ``(i) the maximum taxable income amount for the 31 percent 
     bracket under the table contained in section 1 relating to 
     such taxpayer and in effect for the taxable year, over
       ``(ii) the dollar amount in effect with respect to the 
     taxpayer for the taxable year under subparagraph (A)(i).
       ``(D) Cost-of-living adjustment.--
       ``(i) In general.--In the case of a taxable year beginning 
     after 2001, each dollar amount under subparagraph (A)(i) 
     shall be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f )(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2000' 
     for `calendar year 1992' in subparagraph (B) thereof.

       ``(ii) Rounding rules.--If any amount after adjustment 
     under clause (i) is not a multiple of $1,000, such amount 
     shall be rounded to the next lower multiple of $1,000.''.
       (c) Adoption Credit Made Permanent.--Subclauses (A) and (B) 
     of section 23(d)(2) (defining eligible child) are amended to 
     read as follows:
       ``(A) who has not attained age 18, or
       ``(B) who is physically or mentally incapable of caring for 
     himself.''.
       (d) Conforming Amendments.--
       (1) Section 23(a)(2) is amended by striking ``(1)'' and 
     inserting ``(1)(B)''.
       (2) Section 23(b)(3) is amended by striking ``(a)'' each 
     place it appears and inserting ``(a)(1)(B)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

         TITLE IV--INCENTIVES FOR EMPLOYER-PROVIDED CHILD CARE

     SEC. 401. 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 new section:

     ``SEC. 45D. EMPLOYER-PROVIDED CHILD CARE CREDIT.

       ``(a) Allowance of Credit.--For purposes of section 38, the 
     employer-provided child care credit determined under this 
     section for the taxable year is an amount equal to the sum 
     of--
       ``(1) 25 percent of the qualified child care expenditures, 
     and
       ``(2) 10 percent of the qualified child care resource and 
     referral expenditures,

     of the taxpayer for such taxable year.
       ``(b) Dollar Limitation.--The credit allowable under 
     subsection (a) for any taxable year shall not exceed 
     $150,000.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualified child care expenditure.--
       ``(A) In general.--The term `qualified child care 
     expenditure' means any amount paid or incurred--

[[Page 14481]]

       ``(i) to acquire, construct, rehabilitate, or expand 
     property--

       ``(I) which is to be used as part of an eligible 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,

       ``(ii) for the operating costs of an eligible qualified 
     child care facility of the taxpayer, including costs related 
     to the training of employees of the child care facility, to 
     scholarship programs, to the providing of differential 
     compensation to employees based on level of child care 
     training, and to expenses associated with achieving 
     accreditation, or
       ``(iii) under a contract with a qualified child care 
     facility to provide child care services to employees of the 
     taxpayer.
       ``(B) Exclusion for amounts funded by grants, etc.--The 
     term `qualified child care expenditure' shall not include any 
     amount to the extent such amount is funded by any grant, 
     contract, or otherwise by another person (or any governmental 
     entity).
       ``(C) Nondiscrimination.--The term `qualified child care 
     expenditure' shall not include any amount expended in 
     relation to any child care services unless the providing of 
     such services to employees of the taxpayer does not 
     discriminate in favor of highly compensated employees (within 
     the meaning of section 404(q)).
       ``(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) Eligible qualified child care facility.--A qualified 
     child care facility shall be treated as an eligible qualified 
     child care facility with respect to the taxpayer if--
       ``(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, and
       ``(iii) at least 30 percent of the enrollees of such 
     facility are dependents of employees of the taxpayer.
       ``(C) Application of subparagraph (b).--In the case of a 
     new facility, the facility shall be treated as meeting the 
     requirement of subparagraph (B)(iii) if not later than 2 
     years after placing such facility in service at least 30 
     percent of the enrollees of such facility are dependents of 
     employees of the taxpayer.
       ``(3) Qualified child care resource and referral 
     expenditure.--
       ``(A) In general.--The term `qualified child care resource 
     and referral expenditure' means any amount paid or incurred 
     under a contract to provide child care resource and referral 
     services to employees of the taxpayer.
       ``(B) Exclusion for amounts funded by grants, etc.--The 
     term `qualified child care resource and referral expenditure' 
     shall not include any amount to the extent such amount is 
     funded by any grant, contract, or otherwise by another person 
     (or any governmental entity).
       ``(C) Nondiscrimination.--The term `qualified child care 
     resource and referral expenditure' shall not include any 
     amount expended in relation to any child care resource and 
     referral services unless the providing of such services to 
     employees of the taxpayer does not discriminate in favor of 
     highly compensated employees (within the meaning of section 
     404(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 eligible 
     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:

  
  ``If the recapture event occurThe applicable recapture percentage is:
    Year 1.......................................................100   
    Year 2........................................................80   
    Year 3........................................................60   
    Year 4........................................................40   
    Year 5........................................................20   
    Years 6 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 
     eligible 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 an eligible 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 an eligible 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 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 out ``plus'' at the end of paragraph (11),
       (B) by striking out the period at the end of paragraph 
     (12), and inserting a comma and ``plus'', and
       (C) by adding at the end the following new paragraph:
       ``(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 new item:

``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.
                                 ______
                                 

                       DORGAN AMENDMENT NO. 3877

  Mr. Dorgan proposed an amendment to the bill, H.R. 4810, supra; as 
follows:

       At the end, add the following:

     SEC. 7. TREATMENT OF CONSERVATION RESERVE PROGRAM PAYMENTS AS 
                   RENTALS FROM REAL ESTATE.

       (a) In General.--Section 1402(a)(1) of the Internal Revenue 
     Code of 1986 (defining net earnings from self-employment) is 
     amended by inserting ``and including payments under

[[Page 14482]]

     section 1233(2) of the Food Security Act of 1985 (16 U.S.C. 
     3833(2))'' after ``crop shares''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made before, on, or after the date of 
     the enactment of this Act.

     SEC. 8. EXPANSION OF EXPENSING TREATMENT FOR SMALL 
                   BUSINESSES.

       (a) Acceleration of Increase in Dollar Limit.--Section 
     179(b)(1) of the Internal Revenue Code of 1986 (relating to 
     dollar limits on expensing treatment) 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) Expensing Available for All Tangible Depreciable 
     Property.--Section 179(d)(1) of the Internal Revenue Code of 
     1986 (defining section 179 property) is amended by striking 
     ``which is section 1245 property (as defined in section 
     1245(a)(3)) and''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 9. EXCLUSION OF GAIN FROM SALE OF CERTAIN FARMLAND.

       (a) In General.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to items 
     specifically excluded from gross income) is amended by adding 
     after section 121 the following new section:

     ``SEC. 121A. EXCLUSION OF GAIN FROM SALE OF QUALIFIED FARM 
                   PROPERTY.

       ``(a) Exclusion.--In the case of a natural person, gross 
     income shall not include gain from the sale or exchange of 
     qualified farm property.
       ``(b) Limitation on Amount of Exclusion.--
       ``(1) In general.--The amount of gain excluded from gross 
     income under subsection (a) with respect to any taxable year 
     shall not exceed $500,000 ($250,000 in the case of a married 
     individual filing a separate return), reduced by the 
     aggregate amount of gain excluded under subsection (a) for 
     all preceding taxable years.
       ``(2) Special rule for joint returns.--The amount of the 
     exclusion under subsection (a) on a joint return for any 
     taxable year shall be allocated equally between the spouses 
     for purposes of applying the limitation under paragraph (1) 
     for any succeeding taxable year.
       ``(c) Qualified Farm Property.--
       ``(1) Qualified farm property.--For purposes of this 
     section, the term `qualified farm property' means real 
     property located in the United States if, during periods 
     aggregating 3 years or more of the 5-year period ending on 
     the date of the sale or exchange of such real property--
       ``(A) such real property was used as a farm for farming 
     purposes by the taxpayer or a member of the family of the 
     taxpayer, and
       ``(B) there was material participation by the taxpayer (or 
     such a member) in the operation of the farm.
       ``(2) Definitions.--For purposes of this subsection, the 
     terms `member of the family', `farm', and `farming purposes' 
     have the respective meanings given such terms by paragraphs 
     (2), (4), and (5) of section 2032A(e).
       ``(3) Special rules.--For purposes of this section, rules 
     similar to the rules of paragraphs (4) and (5) of section 
     2032A(b) and paragraphs (3) and (6) of section 2032A(e) shall 
     apply.
       ``(d) Other Rules.--For purposes of this section, rules 
     similar to the rules of subsection (e) and subsection (f) of 
     section 121 shall apply.''
       (b) Conforming Amendment.--The table of sections for part 
     III of subchapter B of chapter 1 of the Internal Revenue Code 
     of 1986 is amended by adding after the item relating to 
     section 121 the following new item:

``Sec. 121A. Exclusion of gain from sale of qualified farm property.''

       (c) Effective Date.--The amendment made by this section 
     shall apply to any sale or exchange on or after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 10. FULL DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-
                   EMPLOYED INDIVIDUALS.

       (a) In General.--Section 162(l)(1) of the Internal Revenue 
     Code of 1986 (relating to special rules for health insurance 
     costs of self-employed individuals) 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, 
     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.
                                 ______
                                 

                   COMPETITIVE MARKET SUPERVISION ACT

                                 ______
                                 

                       COLLINS AMENDMENT NO. 3878

  (Ordered to be referred to the Committee on Banking, Housing, and 
Urban Affairs.)
  Ms. COLLINS submitted an amendment intended to be proposed by her to 
the bill (S. 2107) to amend the Securities Act of 1933 and the 
Securities Exchange Act of 1934 to reduce securities fees in excess of 
those required to fund the operations of the Securities and Exchange 
Commission, to adjust compensation provisions for employees of the 
Commission, and for other purposes; as follows:

       At the appropriate place, insert the following (and amend 
     the table of contents accordingly):

     SEC. __. MICROCAP FRAUD PREVENTION.

       (a) Amendments to the Securities Exchange Act of 1934.--
     Section 15(b)(4) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78o(b)(4)) is amended--
       (1) by striking subparagraph (F) and inserting the 
     following:
       ``(F) is subject to any order of the Commission barring or 
     suspending the right of the person to be associated with a 
     broker or dealer;'';
       (2) in subparagraph (G)--
       (A) in clause (i), by striking ``has omitted'' and all that 
     follows through the semicolon and inserting ``omitted to 
     state in any such application, report, or proceeding any 
     material fact that is required to be stated therein;'';
       (B) in clause (ii)--
       (i) by striking ``transactions in securities,'' and 
     inserting ``securities, banking, insurance,''; and
       (ii) by adding ``or'' at the end; and
       (C) in clause (iii)--
       (i) by inserting ``other'' after ``violation by any'';
       (ii) by striking ``empowering a foreign financial 
     regulatory authority regarding transactions in securities,'' 
     and inserting ``regarding securities, banking, insurance,'';
       (iii) by striking ``has been found, by a foreign financial 
     regulatory authority,''; and
       (iv) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(H) is subject to any order of a State securities 
     commission (or any agency or office performing like 
     functions), State authority that supervises or examines 
     financial institutions, State insurance commission (or any 
     agency or office performing like functions), or an 
     appropriate Federal banking agency (as defined in section 3 
     of the Federal Deposit Insurance Act) that--
       ``(i) bars such person from association with an entity 
     regulated by such commission, authority, agency, or officer, 
     or from engaging in the business of securities, insurance, or 
     banking; or
       ``(ii) constitutes a final order based on violations of any 
     laws or regulations that prohibit fraudulent, manipulative, 
     or deceptive conduct.''.
       (b) Amendments to the Investment Advisers Act of 1940.--
     Section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 
     80b-3) is amended--
       (1) in subsection (e), by striking paragraphs (7) and (8) 
     and inserting the following:
       ``(7) is subject to any order of the Commission barring or 
     suspending the right of the person to be associated with an 
     investment adviser;
       ``(8) has been found by a foreign financial regulatory 
     authority to have--
       ``(A) made or caused to be made in any application for 
     registration or report required to be filed with, or in any 
     proceeding before, that foreign financial regulatory 
     authority, any statement that was, at the time and in light 
     of the circumstances under which it was made, false or 
     misleading with respect to any material fact, or omitted to 
     state in any application or report filed with, or in any 
     proceeding before, that foreign financial regulatory 
     authority any material fact that is required to be stated in 
     the application, report, or proceeding;
       ``(B) violated any foreign statute or regulation regarding 
     securities, banking, insurance, or contracts of sale of a 
     commodity for future delivery traded on or subject to the 
     rules of a contract market or any board of trade; or
       ``(C) aided, abetted, counseled, commanded, induced, or 
     procured the violation by any other person of any foreign 
     statute or regulation regarding securities, banking, 
     insurance, or contracts of sale of a commodity for future 
     delivery traded on or subject to the rules of a contract 
     market or any board of trade, or failed reasonably to 
     supervise, with a view to preventing violations of any such 
     statute or regulation, another person who commits such a 
     violation, if the other person is subject to its supervision; 
     or
       ``(9) is subject to any order of a State securities 
     commission (or any agency or office performing like 
     functions), State authority that supervises or examines 
     financial institutions, State insurance commission (or any 
     agency or office performing like functions), or an 
     appropriate Federal banking agency (as defined in section 3 
     of the Federal Deposit Insurance Act) that--
       ``(A) bars such investment adviser or person from 
     association with an entity regulated by such commission, 
     authority, agency, or officer, or from engaging in the 
     business of securities, insurance, or banking; or

[[Page 14483]]

       ``(B) constitutes a final order based on violations of any 
     laws or regulations that prohibit fraudulent, manipulative, 
     or deceptive conduct.''; and
       (2) in subsection (f)--
       (A) by striking ``(6), or (8)'' and inserting ``(6), (8), 
     or (9)''; and
       (B) by striking ``paragraph (2)'' and inserting ``paragraph 
     (2) or (3)''.
       (c) Amendments to the Investment Company Act of 1940.--
     Section 9(b) of the Investment Company Act of 1940 (15 U.S.C. 
     80a-9(b)) is amended--
       (1) in paragraph (4), by striking subparagraphs (A) through 
     (C) and inserting the following:
       ``(A) made or caused to be made in any application for 
     registration or report required to be filed with, or in any 
     proceeding before, that foreign financial regulatory 
     authority, any statement that was, at the time and in light 
     of the circumstances under which it was made, false or 
     misleading with respect to any material fact, or omitted to 
     state in any application or report filed with, or in any 
     proceeding before, that foreign financial regulatory 
     authority any material fact that is required to be stated in 
     the application, report, or proceeding;
       ``(B) violated any foreign statute or regulation regarding 
     securities, banking, insurance, or contracts of sale of a 
     commodity for future delivery traded on or subject to the 
     rules of a contract market or any board of trade; or
       ``(C) aided, abetted, counseled, commanded, induced, or 
     procured the violation by any other person of any foreign 
     statute or regulation regarding securities, banking, 
     insurance, or contracts of sale of a commodity for future 
     delivery traded on or subject to the rules of a contract 
     market or any board of trade;'';
       (2) in paragraph (5), by striking ``or'' at the end; and
       (3) in paragraph (6), by striking the period at the end and 
     inserting the following: ``; or
       ``(7) is subject to any order of a State securities 
     commission (or any agency or office performing like 
     functions), State authority that supervises or examines 
     financial institutions, State insurance commission (or any 
     agency or office performing like functions), or an 
     appropriate Federal banking agency (as defined in section 3 
     of the Federal Deposit Insurance Act) that--
       ``(A) bars such person from association with an entity 
     regulated by such commission, authority, agency, or officer, 
     or from engaging in the business of securities, insurance, or 
     banking; or
       ``(B) constitutes a final order based on violations of any 
     laws or regulations that prohibit fraudulent, manipulative, 
     or deceptive conduct.''.
       (d) Conforming Amendments.--
       (1) Municipal securities dealers.--Section 15B(c) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78o-4(c)) is 
     amended--
       (A) in paragraph (2), by striking ``act or omission'' and 
     all that follows through the period and inserting ``act, or 
     is subject to an order or finding, enumerated in subparagraph 
     (A), (D), (E), (G), or (H) of section 15(b)(4), has been 
     convicted of any offense specified in section 15(b)(4)(B) 
     within 10 years of the commencement of the proceedings under 
     this paragraph, or is enjoined from any action, conduct, or 
     practice specified in section 15(b)(4)(C).''; and
       (B) in paragraph (4), in the first sentence, by striking 
     ``any act or omission'' and all that follows through the 
     period and inserting ``or omitted any act, or is subject to 
     an order or finding, enumerated in subparagraph (A), (D), 
     (E), (G), or (H) of section 15(b)(4), has been convicted of 
     any offense specified in section 15(b)(4)(B) within 10 years 
     of the commencement of the proceedings under this paragraph, 
     or is enjoined from any action, conduct, or practice 
     specified in section 15(b)(4)(C).''.
       (2) Government securities brokers and dealers.--Section 
     15C(c)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78o-5(c)(1)) is amended--
       (A) in subparagraph (A), by striking ``or omission 
     enumerated in subparagraph (A), (D), (E), or (G) of paragraph 
     (4) of section 15(b) of this title'' and inserting ``, or is 
     subject to an order or finding, enumerated in subparagraph 
     (A), (D), (E), (G), or (H) of section 15(b)(4)''; and
       (B) in subparagraph (C), by striking ``or omission 
     enumerated in subparagraph (A), (D), (E), or (G) of paragraph 
     (4) of section 15(b) of this title'' and inserting ``, or is 
     subject to an order or finding, enumerated in subparagraph 
     (A), (D), (E), (G), or (H) of section 15(b)(4)''.
       (3) Clearing agencies.--Section 17A(c) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78q-1(c)) is amended--
       (A) in paragraph (3)(A), by striking ``any act enumerated 
     in subparagraph (A), (D), (E), or (G) of paragraph (4) of 
     section 15(b) of this title'' and inserting ``any act, or is 
     subject to an order or finding, enumerated in subparagraph 
     (A), (D), (E), (G), or (H) of section 15(b)(4)''; and
       (B) in paragraph (4)(C), in the first sentence, by striking 
     ``any act enumerated in subparagraph (A), (D), (E), or (G) of 
     paragraph (4) of section 15(b) of this title'' and inserting 
     ``any act, or is subject to an order or finding, enumerated 
     in subparagraph (A), (D), (E), (G), or (H) of section 
     15(b)(4)''.
       (4) Statutory disqualifications.--Section 3(a)(39) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(39)) is 
     amended--
       (A) in subparagraph (B)(i), by striking ``order to'' and 
     inserting ``order of''; and
       (B) in subparagraph (F)--
       (i) by striking ``any act enumerated in subparagraph (D), 
     (E), or (G) of paragraph (4) of section 15(b) of this title'' 
     and inserting ``any act, or is subject to an order or 
     finding, enumerated in subparagraph (D), (E), (G), or (H) of 
     section 15(b)(4)'';
       (ii) by striking ``subparagraph (B) of such paragraph (4)'' 
     and inserting ``section 15(b)(4)(B)''; and
       (iii) by striking ``subparagraph (C) of such paragraph 
     (4)'' and inserting ``section 15(b)(4)(C)''.
       (e) Broadening of Penny Stock Bar.--Section 15(b)(6) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78o(b)(6)) is 
     amended--
       (1) in subparagraph (A)--
       (A) by striking ``of any penny stock'' and inserting ``of 
     any noncovered security'';
       (B) by striking ``of penny stock'' and inserting ``of any 
     noncovered security''; and
       (C) in clause (i), by striking ``or omission enumerated in 
     subparagraph (A), (D), (E), or (G) of paragraph (4) of this 
     subsection'' and inserting ``, or is subject to an order or 
     finding, enumerated in subparagraph (A), (D), (E), (G), or 
     (H) of paragraph (4)'';
       (2) in subparagraph (B)--
       (A) by striking ``an offering of penny stock'' each place 
     it appears and inserting ``any securities offering''; and
       (B) in clause (iii), by striking ``such a person'' and 
     inserting ``a person as to whom an order under section 
     21(d)(5) or subparagraph (A) of this paragraph is in 
     effect''; and
       (3) by striking subparagraph (C) and inserting the 
     following:
       ``(C) For purposes of this paragraph--
       ``(i) the term `noncovered security' means any security 
     other than those described in paragraphs (1) and (2) of 
     section 18(b) of the Securities Act of 1933; and
       ``(ii) the term `participation in an offering of noncovered 
     securities'--
       ``(I) means acting as a promoter, finder, consultant, or 
     agent, or engaging in activities with a broker, dealer, or 
     issuer for purposes of the issuance of or trading in any 
     noncovered security, or inducing or attempting to induce the 
     purchase or sale of any noncovered security;
       ``(II) includes other activities that the Commission 
     specifies by rule or regulation; and
       ``(III) excludes any person or class of persons, in whole 
     or in part, conditionally or unconditionally, that the 
     Commission, by rule, regulation, or order, may exclude.''.
       (f) Court Authority To Prohibit Offerings of Noncovered 
     Securities.--Section 21(d) of the Securities Exchange Act of 
     1934 (15 U.S.C. 78u(d)) is amended by adding at the end the 
     following:
       ``(5) Court authority to prohibit persons from 
     participating in offering of noncovered securities.--
       ``(A) In general.--In any proceeding under paragraph (1), 
     the court may prohibit, conditionally or unconditionally, and 
     permanently or for such period of time as it shall determine, 
     any person that violated section 10(b) or the rules or 
     regulations issued thereunder in connection with any 
     transaction in any noncovered security from participating in 
     an offering of a noncovered security.
       ``(B) Definitions.--For purposes of this paragraph--
       ``(i) the term `noncovered security' means any security 
     other than those described in paragraphs (1) and (2) of 
     section 18(b) of the Securities Act of 1933; and
       ``(ii) the term `participation in an offering of noncovered 
     securities'--

       ``(I) means acting as a promoter, finder, consultant, or 
     agent, or engaging in activities with a broker, dealer, or 
     issuer for purposes of the issuance of or trading in any 
     noncovered security, or inducing or attempting to induce the 
     purchase or sale of any noncovered security;
       ``(II) includes other activities that the Commission 
     specifies by rule or regulation; and
       ``(III) excludes any person or class of persons, in whole 
     or in part, conditionally or unconditionally, that the 
     Commission, by rule, regulation, or order, may exempt.''.

       (g) Broadening of Officer and Director Bar.--Section 
     21(d)(2) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78u(d)(2)) is amended--
       (1) by striking ``of this title or that'' and inserting ``, 
     that''; and
       (2) by striking ``of this title if'' and inserting ``, or 
     the securities of which are quoted in any quotation medium, 
     if''.
       (h) Violations of Court Ordered Bars.--
       (1) In general.--Section 21 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78u) is amended by adding at the end the 
     following:
       ``(i) Bar on Participation.--It shall be unlawful for any 
     person, against which an order under paragraph (2) or (5) of 
     subsection (d) is in effect, to serve as officer, director, 
     or participant in any offering involving a noncovered 
     security (as defined in subsection (d)(5)(B)) in 
     contravention of such order.''.
       (2) Conforming amendment.--Section 21(d)(3)(D) of the 
     Securities Exchange Act of

[[Page 14484]]

     1934 (15 U.S.C. 78u(d)(3)(D)) is amended by inserting ``or 
     relating to a violation of subsection (i) of this section,'' 
     before ``each separate''.
                                 ______
                                 

                    MARRIAGE PENALTY TAX RELIEF ACT

                                 ______
                                 

                  WELLSTONE AMENDMENTS NOS. 3879-3880

  Mr. REID (for Mr. Wellstone) proposed two amendments to the bill, 
H.R. 4810, supra; as follows:

                           Amendment No. 3879

       At the end, add the following:

     SEC. __. SENSE OF THE SENATE REGARDING REDUCTIONS IN MEDICARE 
                   PAYMENTS RESULTING FROM THE BALANCED BUDGET 
                   ACT.

       (a) Findings.--The Senate finds the following:
       (1) Since its passage, the Balanced Budget Act of 1997 
     (Public Law 105-133; 111 Stat. 251) has drastically cut 
     payments under the medicare program under title XVIII of the 
     Social Security Act (42 U.S.C. 1395 et seq.) in the areas of 
     hospital services, home health sevices, skilled nursing 
     facility services, and other services.
       (2) While the reductions were originally estimated at 
     around $100,000,000,000 over 5 years, recent figures put the 
     actual cuts in payments under the medicare program at over 
     $200,000,000,000.
       (3) These cuts are not without consequence, and have caused 
     medicare beneficiaries with medically complex needs to face 
     increased difficulty in accessing skilled nursing care. 
     Furthermore, in a recent study on home health care, nearly 70 
     percent of hospital discharge planners surveyed reported a 
     greater difficulty obtaining home health services for 
     medicare beneficiaries as a result of the Balanced Budget Act 
     of 1997.
       (4) In the area of hospital care, a 4 percentage point drop 
     in rural hospitals' inpatient margins continues a dangerous 
     trend that threatens access to health care in rural America.
       (5) With passage of the Medicare, Medicaid, and SCHIP 
     Balanced Budget Refinement Act of 1999 (113 Stat. 1501A-372), 
     as enacted into law by section 1000(a)(6) of Public Law 106-
     113, Congress and the President took positive steps toward 
     fixing some of the Balanced Budget Act of 1997's unintended 
     consequences, but this relief was limited to just 10 percent 
     of the actual cuts in payments to provider caused by the 
     Balanced Budget Act of 1997.
       (6) Expeditious action is required to provide relief to 
     medicare beneficiaries and health care providers.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) by the end of the 106th Congress, Congress should 
     revisit and restore a substantial portion of the reductions 
     in payments under the medicare program under title XVIII of 
     the Social Security Act (42 U.S.C. 1395 et seq.) to providers 
     caused by enactment of the Balanced Budget Act of 1997 
     (Public Law 105-133; 111 Stat. 251); and
       (2) if Congress fails to restore a substantial portion of 
     the reductions in payments under the medicare program to 
     health care providers caused by enactment of the Balanced 
     Budget Act of 1997, then Congress should pass legislation 
     that directs the Secretary of Health and Human Services to 
     administer title XVIII of the Social Security Act as if a 1-
     year moratorium for fiscal year 2001 were placed on all 
     reductions in payments to health care providers that were a 
     result of the Balanced Budget Act of 1997.
                                  ____


                           Amendment No. 3880

       At the end, add the following:

     SEC. __. SENSE OF THE SENATE REGARDING REDUCTIONS IN MEDICARE 
                   PAYMENTS RESULTING FROM THE BALANCED BUDGET ACT 
                   OF 1997.

       (a) Findings.--The Senate finds the following:
       (1) Since its passage, the Balanced Budget Act of 1997 
     (Public Law 105-133; 111 Stat. 251) has drastically cut 
     payments under the medicare program under title XVIII of the 
     Social Security Act (42 U.S.C. 1395 et seq.) in the areas of 
     hospital services, home health sevices, skilled nursing 
     facility services, and other services.
       (2) While the reductions were originally estimated at 
     around $100,000,000,000 over 5 years, recent figures put the 
     actual cuts in payments under the medicare program at over 
     $200,000,000,000.
       (3) These cuts are not without consequence, and have caused 
     medicare beneficiaries with medically complex needs to face 
     increased difficulty in accessing skilled nursing care. 
     Furthermore, in a recent study on home health care, nearly 70 
     percent of hospital discharge planners surveyed reported a 
     greater difficulty obtaining home health services for 
     medicare beneficiaries as a result of the Balanced Budget Act 
     of 1997.
       (4) In the area of hospital care, a 4 percentage point drop 
     in rural hospitals' inpatient margins continues a dangerous 
     trend that threatens access to health care in rural America.
       (5) With passage of the Medicare, Medicaid, and SCHIP 
     Balanced Budget Refinement Act of 1999 (113 Stat. 1501A-372), 
     as enacted into law by section 1000(a)(6) of Public Law 106-
     113, Congress and the President took positive steps toward 
     fixing some of the Balanced Budget Act of 1997's unintended 
     consequences, but this relief was limited to just 10 percent 
     of the actual cuts in payments to provider caused by the 
     Balanced Budget Act of 1997.
       (6) Expeditious action is required to provide relief to 
     medicare beneficiaries and health care providers.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that by the end of the 106th Congress, Congress should 
     revisit and restore a substantial portion of the reductions 
     in payments under the medicare program under title XVIII of 
     the Social Security Act (42 U.S.C. 1395 et seq.) to providers 
     caused by enactment of the Balanced Budget Act of 1997 
     (Public Law 105-133; 111 Stat. 251).
                                 ______
                                 

                     LOTT AMENDMENTS NOS. 3881-3882

  Mr. NICKLES (for Mr. Lott) proposed two amendments to the bill, H.R. 
4810, supra; as follows:

                           Amendment No. 3881

       Strike all after the first word and insert:

              1. SHORT TITLE.

       (a) Short Title.--This Act may be cited as the ``Marriage 
     Tax Relief Reconciliation Act of 2000''.
       (b) Section 15 Not To Apply.--No amendment made by this Act 
     shall be treated as a change in a rate of tax for purposes of 
     section 15 of the Internal Revenue Code of 1986.

     SEC. 2. ELIMINATION OF MARRIAGE PENALTY IN STANDARD 
                   DEDUCTION.

       (a) In General.--Paragraph (2) of section 63(c) of the 
     Internal Revenue Code of 1986 (relating to standard 
     deduction) is amended--
       (1) by striking ``$5,000'' in subparagraph (A) and 
     inserting ``200 percent of the dollar amount in effect under 
     subparagraph (C) for the taxable year'';
       (2) by adding ``or'' at the end of subparagraph (B);
       (3) by striking ``in the case of'' and all that follows in 
     subparagraph (C) and inserting ``in any other case.''; and
       (4) by striking subparagraph (D).
       (b) Technical Amendments.--
       (1) Subparagraph (B) of section 1(f )(6) of such Code is 
     amended by striking ``(other than with'' and all that follows 
     through ``shall be applied'' and inserting ``(other than with 
     respect to sections 63(c)(4) and 151(d)(4)(A)) shall be 
     applied''.
       (2) Paragraph (4) of section 63(c) of such Code is amended 
     by adding at the end the following flush sentence:

     ``The preceding sentence shall not apply to the amount 
     referred to in paragraph (2)(A).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 3. PHASEOUT OF MARRIAGE PENALTY IN 15-PERCENT AND 28-
                   PERCENT RATE BRACKETS.

       (a) In General.--Subsection (f ) of section 1 of the 
     Internal Revenue Code of 1986 (relating to adjustments in tax 
     tables so that inflation will not result in tax increases) is 
     amended by adding at the end the following new paragraph:
       ``(8) Phaseout of marriage penalty in 15-percent and 28-
     percent rate brackets.--
       ``(A) In general.--With respect to taxable years beginning 
     after December 31, 2001, in prescribing the tables under 
     paragraph (1)--
       ``(i) the maximum taxable income amount in the 15-percent 
     rate bracket, the minimum and maximum taxable income amounts 
     in the 28-percent rate bracket, and the minimum taxable 
     income amount in the 31-percent rate bracket in the table 
     contained in subsection (a) shall be the applicable 
     percentage of the comparable taxable income amounts in the 
     table contained in subsection (c) (after any other adjustment 
     under this subsection), and
       ``(ii) the comparable taxable income amounts in the table 
     contained in subsection (d) shall be \1/2\ of the amounts 
     determined under clause (i).
       ``(B) Applicable percentage.--For purposes of subparagraph 
     (A), the applicable percentage shall be determined in 
     accordance with the following table:

``For taxable years beginning in calendarThe applicable percentage is--
      2002.......................................................170.3 
      2003.......................................................173.8 
      2004.......................................................180.0 
      2005.......................................................183.2 
      2006.......................................................185.0 
      2007 and thereafter........................................200.0.

       ``(C) Rounding.--If any amount determined under 
     subparagraph (A)(i) is not a multiple of $50, such amount 
     shall be rounded to the next lowest multiple of $50.''.
       (b) Technical Amendments.--
       (1) Subparagraph (A) of section 1(f )(2) of such Code is 
     amended by inserting ``except as provided in paragraph (8),'' 
     before ``by increasing''.
       (2) The heading for subsection (f ) of section 1 of such 
     Code is amended by inserting ``Phaseout of Marriage Penalty 
     in 15-Percent and 28-Percent Rate Brackets;'' before 
     ``Adjustments''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

[[Page 14485]]



     SEC. 4. MARRIAGE PENALTY RELIEF FOR EARNED INCOME CREDIT.

       (a) In General.--Paragraph (2) of section 32(b) of the 
     Internal Revenue Code of 1986 (relating to percentages and 
     amounts) is amended--
       (1) by striking ``Amounts.--The earned'' and inserting 
     ``Amounts.--
       ``(A) In general.--Subject to subparagraph (B), the 
     earned''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) Joint returns.--In the case of a joint return, the 
     phaseout amount determined under subparagraph (A) shall be 
     increased by $2,500.''.
       (b) Inflation Adjustment.--Paragraph (1)(B) of section 32( 
     j) of such Code (relating to inflation adjustments) is 
     amended to read as follows:
       ``(B) the cost-of-living adjustment determined under 
     section 1(f )(3) for the calendar year in which the taxable 
     year begins, determined--
       ``(i) in the case of amounts in subsections (b)(2)(A) and 
     (i)(1), by substituting `calendar year 1995' for `calendar 
     year 1992' in subparagraph (B) thereof, and
       ``(ii) in the case of the $2,500 amount in subsection 
     (b)(2)(B), by substituting `calendar year 2000' for `calendar 
     year 1992' in subparagraph (B) of such section 1.''.
       (c) Rounding.--Section 32( j)(2)(A) of such Code (relating 
     to rounding) is amended by striking ``subsection (b)(2)'' and 
     inserting ``subsection (b)(2)(A) (after being increased under 
     subparagraph (B) thereof)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 5. PRESERVE FAMILY TAX CREDITS FROM THE ALTERNATIVE 
                   MINIMUM TAX.

       (a) In General.--Subsection (a) of section 26 of the 
     Internal Revenue Code of 1986 (relating to limitation based 
     on tax liability; definition of tax liability) is amended to 
     read as follows:
       ``(a) Limitation Based on Amount of Tax.--The aggregate 
     amount of credits allowed by this subpart for the taxable 
     year shall not exceed the sum of--
       ``(1) the taxpayer's regular tax liability for the taxable 
     year reduced by the foreign tax credit allowable under 
     section 27(a), and
       ``(2) the tax imposed for the taxable year by section 
     55(a).''.
       (b) Conforming Amendments.--
       (1) Subsection (d) of section 24 of such Code is amended by 
     striking paragraph (2) and by redesignating paragraph (3) as 
     paragraph (2).
       (2) Section 32 of such Code is amended by striking 
     subsection (h).
       (3) Section 904 of such Code is amended by striking 
     subsection (h) and by redesignating subsections (i), (j), and 
     (k) as subsections (h), (i), and (j), respectively.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 6. COMPLIANCE WITH BUDGET ACT.

       (a) In General.--Except as provided in subsection (b), all 
     amendments made by this Act which are in effect on September 
     30, 2005, shall cease to apply as of the close of September 
     30, 2005.
       (b) Sunset for Certain Provisions Absent Subsequent 
     Legislation.--The amendments made by sections 2, 3, 4, and 5 
     of this Act shall not apply to any taxable year beginning 
     after December 31, 2004.
                                  ____


                           Amendment No. 3882

       Strike all after the first word and insert:

              1. SHORT TITLE.

       (a) Short Title.--This Act may be cited as the ``Marriage 
     Tax Relief Reconciliation Act of 2000''.
       (b) Section 15 Not To Apply.--No amendment made by this Act 
     shall be treated as a change in a rate of tax for purposes of 
     section 15 of the Internal Revenue Code of 1986.

     SEC. 2. ELIMINATION OF MARRIAGE PENALTY IN STANDARD 
                   DEDUCTION.

       (a) In General.--Paragraph (2) of section 63(c) of the 
     Internal Revenue Code of 1986 (relating to standard 
     deduction) is amended--
       (1) by striking ``$5,000'' in subparagraph (A) and 
     inserting ``200 percent of the dollar amount in effect under 
     subparagraph (C) for the taxable year'';
       (2) by adding ``or'' at the end of subparagraph (B);
       (3) by striking ``in the case of'' and all that follows in 
     subparagraph (C) and inserting ``in any other case.''; and
       (4) by striking subparagraph (D).
       (b) Technical Amendments.--
       (1) Subparagraph (B) of section 1(f )(6) of such Code is 
     amended by striking ``(other than with'' and all that follows 
     through ``shall be applied'' and inserting ``(other than with 
     respect to sections 63(c)(4) and 151(d)(4)(A)) shall be 
     applied''.
       (2) Paragraph (4) of section 63(c) of such Code is amended 
     by adding at the end the following flush sentence:

     ``The preceding sentence shall not apply to the amount 
     referred to in paragraph (2)(A).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 3. PHASEOUT OF MARRIAGE PENALTY IN 15-PERCENT AND 28-
                   PERCENT RATE BRACKETS.

       (a) In General.--Subsection (f ) of section 1 of the 
     Internal Revenue Code of 1986 (relating to adjustments in tax 
     tables so that inflation will not result in tax increases) is 
     amended by adding at the end the following new paragraph:
       ``(8) Phaseout of marriage penalty in 15-percent and 28-
     percent rate brackets.--
       ``(A) In general.--With respect to taxable years beginning 
     after December 31, 2001, in prescribing the tables under 
     paragraph (1)--
       ``(i) the maximum taxable income amount in the 15-percent 
     rate bracket, the minimum and maximum taxable income amounts 
     in the 28-percent rate bracket, and the minimum taxable 
     income amount in the 31-percent rate bracket in the table 
     contained in subsection (a) shall be the applicable 
     percentage of the comparable taxable income amounts in the 
     table contained in subsection (c) (after any other adjustment 
     under this subsection), and
       ``(ii) the comparable taxable income amounts in the table 
     contained in subsection (d) shall be \1/2\ of the amounts 
     determined under clause (i).
       ``(B) Applicable percentage.--For purposes of subparagraph 
     (A), the applicable percentage shall be determined in 
     accordance with the following table:

``For taxable years beginning in calendarThe applicable percentage is--
      2002.......................................................170.3 
      2003.......................................................173.8 
      2004.......................................................180.0 
      2005.......................................................183.2 
      2006.......................................................185.0 
      2007 and thereafter........................................200.0.

       ``(C) Rounding.--If any amount determined under 
     subparagraph (A)(i) is not a multiple of $50, such amount 
     shall be rounded to the next lowest multiple of $50.''.
       (b) Technical Amendments.--
       (1) Subparagraph (A) of section 1(f )(2) of such Code is 
     amended by inserting ``except as provided in paragraph (8),'' 
     before ``by increasing''.
       (2) The heading for subsection (f ) of section 1 of such 
     Code is amended by inserting ``Phaseout of Marriage Penalty 
     in 15-Percent and 28-Percent Rate Brackets;'' before 
     ``Adjustments''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 4. PRESERVE FAMILY TAX CREDITS FROM THE ALTERNATIVE 
                   MINIMUM TAX.

       (a) In General.--Subsection (a) of section 26 of the 
     Internal Revenue Code of 1986 (relating to limitation based 
     on tax liability; definition of tax liability) is amended to 
     read as follows:
       ``(a) Limitation Based on Amount of Tax.--The aggregate 
     amount of credits allowed by this subpart for the taxable 
     year shall not exceed the sum of--
       ``(1) the taxpayer's regular tax liability for the taxable 
     year reduced by the foreign tax credit allowable under 
     section 27(a), and
       ``(2) the tax imposed for the taxable year by section 
     55(a).''.
       (b) Conforming Amendments.--
       (1) Subsection (d) of section 24 of such Code is amended by 
     striking paragraph (2) and by redesignating paragraph (3) as 
     paragraph (2).
       (2) Section 32 of such Code is amended by striking 
     subsection (h).
       (3) Section 904 of such Code is amended by striking 
     subsection (h) and by redesignating subsections (i), (j), and 
     (k) as subsections (h), (i), and (j), respectively.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 5. COMPLIANCE WITH BUDGET ACT.

       (a) In General.--Except as provided in subsection (b), all 
     amendments made by this Act which are in effect on September 
     30, 2005, shall cease to apply as of the close of September 
     30, 2005.
       (b) Sunset for Certain Provisions Absent Subsequent 
     Legislation.--The amendments made by sections 2, 3, and 4 of 
     this Act shall not apply to any taxable year beginning after 
     December 31, 2004.

                          ____________________