[Congressional Record (Bound Edition), Volume 146 (2000), Part 18]
[House]
[Pages 26670-27019]
[From the U.S. Government Publishing Office, www.gpo.gov]



CONFERENCE REPORT ON H.R. 4577, DEPARTMENTS OF LABOR, HEALTH AND HUMAN 
 SERVICES, AND EDUCATION, AND RELATED AGENCIES APPROPRIATIONS ACT, 2001

  Mr. YOUNG of Florida submitted the following conference report and 
statement on the bill (H.R. 4577) making appropriations for the 
Departments of Labor, Health and Human Services, and Education, and 
Related Agencies for the fiscal year ending September 30, 2001, and for 
other purposes:

                 Conference Report (H. Rept. 106-1033)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     4577) ``making appropriations for the Departments of Labor, 
     Health and Human Services, and Education, and related 
     agencies for the fiscal year ending September 30, 2001, and 
     for other purposes'', having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with 
     amendments, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:
       Section 1. (a) The provisions of the following bills of the 
     106th Congress are hereby enacted into law:
       (1) H.R. 5656, as introduced on December 14, 2000.
       (2) H.R. 5657, as introduced on December 14, 2000.
       (3) H.R. 5658, as introduced on December 14, 2000.
       (4) H.R. 5666, as introduced on December 15, 2000.
       (5) H.R. 5660, as introduced on December 14, 2000.
       (6) H.R. 5661, as introduced on December 14, 2000.
       (7) H.R. 5662, as introduced on December 14, 2000.
       (8) H.R. 5663, as introduced on December 14, 2000.
       (9) H.R. 5667, as introduced on December 15, 2000.
       (b) In publishing this Act in slip form and in the United 
     States Statutes at Large pursuant to section 112 of title 1, 
     United States Code, the Archivist of the United States shall 
     include after the date of approval at the end appendixes 
     setting forth the texts of the bills referred to in 
     subsection (a) of this section and the text of any other bill 
     enacted into law by reference by reason of the enactment of 
     this Act.
       Sec. 2. (a) Notwithstanding Rule 3 of the Budget 
     Scorekeeping Guidelines set forth in the joint explanatory 
     statement of the committee of conference accompanying 
     Conference Report 105-217, legislation enacted in section 505 
     of the Department of Transportation and Related Agencies 
     Appropriations Act, 2001, section 312 of the Legislative 
     Branch Appropriations Act, 2001, titles X and XI of H.R. 5548 
     (106th Congress) as enacted by H.R. 4942 (106th Congress), 
     Division B of H.R. 5666 (106th Congress) as enacted by this 
     Act, and sections 1(a)(5) through 1(a)(9) of this Act that 
     would have been estimated by the Office of Management and 
     Budget as changing direct spending or receipts under section 
     252 of the Balanced Budget and Emergency Deficit Control Act 
     of 1985 were it included in an Act other than an 
     appropriations Act shall be treated as direct spending or 
     receipts legislation, as appropriate, under section 252 of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985.
       (b) In preparing the final sequestration report required by 
     section 254(f)(3) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 for fiscal year 2001, in addition 
     to the information required by that section, the Director of 
     the Office of Management and Budget shall change any balance 
     of direct spending and receipts legislation for fiscal year 
     2001 under section 252 of that Act to zero.
       This Act may be cited as the ``Consolidated Appropriations 
     Act, 2001''.
       Amend the title of the bill so as to read:
       ``An Act making consolidated appropriations for the fiscal 
     year ending September 30, 2001, and for other purposes.''.
     And the Senate agree to the same.
     John Edward Porter,
     C.W. Bill Young,
     Henry Bonilla,
     Ernest J. Istook, Jr.,
     Dan Miller,
     Jay Dickey,
     Roger F. Wicker,
     Anne M. Northup,
     Randy ``Duke'' Cunningham,
     David R. Obey,
     Steny H. Hoyer,
     Nancy Pelosi,
     Nita M. Lowey,
     Rosa L. DeLauro,
     Jesse L. Jackson, Jr.
       (Except elimination of LIHEAP and CCDBG advanced funding; 
     immigration and charitable choice provisions.)
                                Managers on the Part of the House.

     Arlen Specter,
     Thad Cochran,
     Slade Gorton,
     Judd Gregg,
     Kay Bailey Hutchison,
     Ted Stevens,
     Pete V. Domenici,
     Tom Harkin,
     Ernest F. Hollings,
     Daniel K. Inouye,
     Harry Reid,
     Herb Kohl,
     Patty Murray,
     Dianne Feinstein,
     Robert C. Byrd,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 4577) making 
     appropriations for the Departments of Labor, Health and Human 
     Services, and Education, and Related Agencies, and for other 
     purposes, submit the following joint statement of the House 
     and Senate in explanation of the effect of the action agreed 
     upon by the managers and recommended in the accompanying 
     conference report.
       This conference agreement includes more than the 
     Departments of Labor, Health and Human Services, and 
     Education, and Related Agencies Appropriations Act, 2001. The 
     conference agreement has been expanded to including the 
     Legislative Branch Appropriations Act, 2001; the Treasury and 
     General Government Appropriations Act, 2001; the 
     Miscellaneous Appropriations Act, 2001; the Commodity Futures 
     Modernization Act of 2000; the Medicare, Medicaid, and SCHIP 
     Benefits Improvement and Protection Act of

[[Page 26671]]

     2000; the Community Renewal Tax Relief Act of 2000; the New 
     Markets Venture Capital Program Act of 2000; and the Small 
     Business Reauthorization Act of 2000; as well as the 
     Departments of Labor, Health and Human Services, and 
     Education, and Related Agencies Appropriations Act, 2001. The 
     provisions of all of these Acts have been enacted into law by 
     reference in this conference report; however, a copy of the 
     referenced legislation has been included in this statement 
     for convenience.

  DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND 
                    RELATED AGENCIES APPROPRIATIONS

       The conference agreement would enact the provisions of H.R. 
     5656 as introduced on December 14, 2000. The text of that 
     bill follows:
     A BILL Making appropriations for the Departments of Labor, 
     Health and Human Services, and Education, and related 
     agencies for the fiscal year ending September 30, 2001, and 
     for other purposes.
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, That the 
     following sums are appropriated, out of any money in the 
     Treasury not otherwise appropriated, for the Departments of 
     Labor, Health and Human Services, and Education, and related 
     agencies for the fiscal year ending September 30, 2001, and 
     for other purposes, namely:

                      TITLE I--DEPARTMENT OF LABOR

                 Employment and Training Administration


                    Training and Employment Services

       For necessary expenses of the Workforce Investment Act, 
     including the purchase and hire of passenger motor vehicles, 
     the construction, alteration, and repair of buildings and 
     other facilities, and the purchase of real property for 
     training centers as authorized by the Workforce Investment 
     Act; the Women in Apprenticeship and Nontraditional 
     Occupations Act; and the National Skill Standards Act of 
     1994; $3,207,805,000 plus reimbursements, of which 
     $1,808,465,000 is available for obligation for the period 
     July 1, 2001 through June 30, 2002; of which $1,377,965,000 
     is available for obligation for the period April 1, 2001 
     through June 30, 2002, including $1,102,965,000 to carry out 
     chapter 4 of the Workforce Investment Act and $275,000,000 to 
     carry out section 169 of such Act; and of which $20,375,000 
     is available for the period July 1, 2001 through June 30, 
     2004 for necessary expenses of construction, rehabilitation, 
     and acquisition of Job Corps centers: Provided, That 
     $9,098,000 shall be for carrying out section 172 of the 
     Workforce Investment Act, and $3,500,000 shall be for 
     carrying out the National Skills Standards Act of 1994: 
     Provided further, That no funds from any other appropriation 
     shall be used to provide meal services at or for Job Corps 
     centers: Provided further, That funds provided to carry out 
     section 171(d) of such Act may be used for demonstration 
     projects that provide assistance to new entrants in the 
     workforce and incumbent workers: Provided further, That 
     funding provided to carry out projects under section 171 of 
     the Workforce Investment Act of 1998 that are identified in 
     the Conference Agreement, shall not be subject to the 
     requirements of section 171(b)(2)(B) of such Act, the 
     requirements of section 171(c)(4)(D) of such Act, or the 
     joint funding requirements of sections 171(b)(2)(A) and 
     171(c)(4)(A) of such Act: Provided further, That funding 
     appropriated herein for Dislocated Worker Employment and 
     Training Activities under section 132(a)(2)(A) of the 
     Workforce Investment Act of 1998 may be distributed for 
     Dislocated Worker Projects under section 171(d) of the Act 
     without regard to the 10 percent limitation contained in 
     section 171(d) of the Act: Provided further, That of the 
     funds made available for Job Corps operating expenses in the 
     Department of Labor Appropriations Act, 2000, as enacted by 
     section 1000(a)(4) of Public Law 106-113, $586,487 shall be 
     paid to the city of Vergennes, Vermont in settlement of the 
     city's claim: Provided further, That $4,600,000 provided 
     herein for dislocated worker employment and training 
     activities shall be made available to the New Mexico 
     Telecommunications Call Center Training Consortium for 
     training in telecommunications-related occupations.
       For necessary expenses of the Workforce Investment Act, 
     including the purchase and hire of passenger motor vehicles, 
     the construction, alteration, and repair of buildings and 
     other facilities, and the purchase of real property for 
     training centers as authorized by the Workforce Investment 
     Act; $2,463,000,000 plus reimbursements, of which 
     $2,363,000,000 is available for obligation for the period 
     October 1, 2001 through June 30, 2002, and of which 
     $100,000,000 is available for the period October 1, 2001 
     through June 30, 2004, for necessary expenses of 
     construction, rehabilitation, and acquisition of Job Corps 
     centers.


            Community Service Employment for Older Americans

       To carry out title V of the Older Americans Act of 1965, as 
     amended, $440,200,000.


              Federal Unemployment Benefits and Allowances

       For payments during the current fiscal year of trade 
     adjustment benefit payments and allowances under part I; and 
     for training, allowances for job search and relocation, and 
     related State administrative expenses under part II, 
     subchapters B and D, chapter 2, title II of the Trade Act of 
     1974, as amended, $406,550,000, together with such amounts as 
     may be necessary to be charged to the subsequent 
     appropriation for payments for any period subsequent to 
     September 15 of the current year.


     State Unemployment Insurance and Employment Service Operations

       For authorized administrative expenses, $193,452,000, 
     together with not to exceed $3,172,246,000 (including not to 
     exceed $1,228,000 which may be used for amortization payments 
     to States which had independent retirement plans in their 
     State employment service agencies prior to 1980), which may 
     be expended from the Employment Security Administration 
     account in the Unemployment Trust Fund including the cost of 
     administering section 51 of the Internal Revenue Code of 
     1986, as amended, section 7(d) of the Wagner-Peyser Act, as 
     amended, the Trade Act of 1974, as amended, the Immigration 
     Act of 1990, and the Immigration and Nationality Act, as 
     amended, and of which the sums available in the allocation 
     for activities authorized by title III of the Social Security 
     Act, as amended (42 U.S.C. 502-504), and the sums available 
     in the allocation for necessary administrative expenses for 
     carrying out 5 U.S.C. 8501-8523, shall be available for 
     obligation by the States through December 31, 2001, except 
     that funds used for automation acquisitions shall be 
     available for obligation by the States through September 30, 
     2003; and of which $193,452,000, together with not to exceed 
     $773,283,000 of the amount which may be expended from said 
     trust fund, shall be available for obligation for the period 
     July 1, 2001 through June 30, 2002, to fund activities under 
     the Act of June 6, 1933, as amended, including the cost of 
     penalty mail authorized under 39 U.S.C. 3202(a)(1)(E) made 
     available to States in lieu of allotments for such purpose: 
     Provided, That to the extent that the Average Weekly Insured 
     Unemployment (AWIU) for fiscal year 2001 is projected by the 
     Department of Labor to exceed 2,396,000, an additional 
     $28,600,000 shall be available for obligation for every 
     100,000 increase in the AWIU level (including a pro rata 
     amount for any increment less than 100,000) from the 
     Employment Security Administration Account of the 
     Unemployment Trust Fund: Provided further, That funds 
     appropriated in this Act which are used to establish a 
     national one-stop career center system, or which are used to 
     support the national activities of the Federal-State 
     unemployment insurance programs, may be obligated in 
     contracts, grants or agreements with non-State entities: 
     Provided further, That funds appropriated under this Act for 
     activities authorized under the Wagner-Peyser Act, as 
     amended, and title III of the Social Security Act, may be 
     used by the States to fund integrated Employment Service and 
     Unemployment Insurance automation efforts, notwithstanding 
     cost allocation principles prescribed under Office of 
     Management and Budget Circular A-87.


        Advances to the Unemployment Trust Fund and Other Funds

       For repayable advances to the Unemployment Trust Fund as 
     authorized by sections 905(d) and 1203 of the Social Security 
     Act, as amended, and to the Black Lung Disability Trust Fund 
     as authorized by section 9501(c)(1) of the Internal Revenue 
     Code of 1954, as amended; and for nonrepayable advances to 
     the Unemployment Trust Fund as authorized by section 8509 of 
     title 5, United States Code, and to the ``Federal 
     unemployment benefits and allowances'' account, to remain 
     available until September 30, 2002, $435,000,000.
       In addition, for making repayable advances to the Black 
     Lung Disability Trust Fund in the current fiscal year after 
     September 15, 2001, for costs incurred by the Black Lung 
     Disability Trust Fund in the current fiscal year, such sums 
     as may be necessary.


                         Program Administration

       For expenses of administering employment and training 
     programs, $110,651,000, including $6,431,000 to support up to 
     75 full-time equivalent staff, the majority of which will be 
     term Federal appointments lasting no more than 1 year, to 
     administer welfare-to-work grants, together with not to 
     exceed $48,507,000, which may be expended from the Employment 
     Security Administration account in the Unemployment Trust 
     Fund.

              Pension and Welfare Benefits Administration


                         Salaries and Expenses

       For necessary expenses for the Pension and Welfare Benefits 
     Administration, $107,832,000.

                  Pension Benefit Guaranty Corporation


               Pension Benefit Guaranty Corporation Fund

       The Pension Benefit Guaranty Corporation is authorized to 
     make such expenditures, including financial assistance 
     authorized by section 104 of Public Law 96-364, within limits 
     of funds and borrowing authority available to such 
     Corporation, and in accord with law, and to make such 
     contracts and commitments without regard to fiscal year 
     limitations as provided by section 104 of the Government 
     Corporation Control Act, as amended (31 U.S.C. 9104), as may 
     be necessary in carrying out the program through September 
     30, 2001, for such Corporation: Provided, That not to exceed 
     $11,652,000 shall be available for administrative expenses of 
     the Corporation: Provided further, That expenses of such 
     Corporation in connection with the termination of pension 
     plans, for the acquisition, protection or management, and 
     investment of trust assets, and for benefits administration 
     services shall be considered as non-administrative expenses 
     for the purposes hereof, and excluded from the above 
     limitation.

[[Page 26672]]



                  Employment Standards Administration


                         Salaries and Expenses

       For necessary expenses for the Employment Standards 
     Administration, including reimbursement to State, Federal, 
     and local agencies and their employees for inspection 
     services rendered, $361,491,000, together with $1,985,000 
     which may be expended from the Special Fund in accordance 
     with sections 39(c), 44(d) and 44(j) of the Longshore and 
     Harbor Workers' Compensation Act: Provided, That $2,000,000 
     shall be for the development of an alternative system for the 
     electronic submission of reports required to be filed under 
     the Labor-Management Reporting and Disclosure Act of 1959, as 
     amended, and for a computer database of the information for 
     each submission by whatever means, that is indexed and easily 
     searchable by the public via the Internet: Provided further, 
     That the Secretary of Labor is authorized to accept, retain, 
     and spend, until expended, in the name of the Department of 
     Labor, all sums of money ordered to be paid to the Secretary 
     of Labor, in accordance with the terms of the Consent 
     Judgment in Civil Action No. 91-0027 of the United States 
     District Court for the District of the Northern Mariana 
     Islands (May 21, 1992): Provided further, That the Secretary 
     of Labor is authorized to establish and, in accordance with 
     31 U.S.C. 3302, collect and deposit in the Treasury fees for 
     processing applications and issuing certificates under 
     sections 11(d) and 14 of the Fair Labor Standards Act of 
     1938, as amended (29 U.S.C. 211(d) and 214) and for 
     processing applications and issuing registrations under title 
     I of the Migrant and Seasonal Agricultural Worker Protection 
     Act (29 U.S.C. 1801 et seq.).


                            Special Benefits

                     (including transfer of funds)

       For the payment of compensation, benefits, and expenses 
     (except administrative expenses) accruing during the current 
     or any prior fiscal year authorized by title 5, chapter 81 of 
     the United States Code; continuation of benefits as provided 
     for under the heading ``Civilian War Benefits'' in the 
     Federal Security Agency Appropriation Act, 1947; the 
     Employees' Compensation Commission Appropriation Act, 1944; 
     sections 4(c) and 5(f) of the War Claims Act of 1948 (50 
     U.S.C. App. 2012); and 50 percent of the additional 
     compensation and benefits required by section 10(h) of the 
     Longshore and Harbor Workers' Compensation Act, as amended, 
     $56,000,000 together with such amounts as may be necessary to 
     be charged to the subsequent year appropriation for the 
     payment of compensation and other benefits for any period 
     subsequent to August 15 of the current year: Provided, That 
     amounts appropriated may be used under section 8104 of title 
     5, United States Code, by the Secretary of Labor to reimburse 
     an employer, who is not the employer at the time of injury, 
     for portions of the salary of a reemployed, disabled 
     beneficiary: Provided further, That balances of 
     reimbursements unobligated on September 30, 2000, shall 
     remain available until expended for the payment of 
     compensation, benefits, and expenses: Provided further, That 
     in addition there shall be transferred to this appropriation 
     from the Postal Service and from any other corporation or 
     instrumentality required under section 8147(c) of title 5, 
     United States Code, to pay an amount for its fair share of 
     the cost of administration, such sums as the Secretary 
     determines to be the cost of administration for employees of 
     such fair share entities through September 30, 2001: Provided 
     further, That of those funds transferred to this account from 
     the fair share entities to pay the cost of administration, 
     $34,910,000 shall be made available to the Secretary as 
     follows: (1) for the operation of and enhancement to the 
     automated data processing systems, including document 
     imaging, medical bill review, and periodic roll management, 
     in support of Federal Employees' Compensation Act 
     administration, $23,371,000; (2) for conversion to a 
     paperless office, $7,005,000; (3) for communications 
     redesign, $1,750,000; (4) for information technology 
     maintenance and support, $2,784,000; and (5) the remaining 
     funds shall be paid into the Treasury as miscellaneous 
     receipts: Provided further, That the Secretary may require 
     that any person filing a notice of injury or a claim for 
     benefits under chapter 81 of title 5, United States Code, or 
     33 U.S.C. 901 et seq., provide as part of such notice and 
     claim, such identifying information (including Social 
     Security account number) as such regulations may prescribe.


                    black lung disability trust fund

                     (including transfer of funds)

       For payments from the Black Lung Disability Trust Fund, 
     $1,028,000,000, of which $975,343,000 shall be available 
     until September 30, 2002, for payment of all benefits as 
     authorized by section 9501(d)(1), (2), (4), and (7) of the 
     Internal Revenue Code of 1954, as amended, and interest on 
     advances as authorized by section 9501(c)(2) of that Act, and 
     of which $30,393,000 shall be available for transfer to 
     Employment Standards Administration, Salaries and Expenses, 
     $21,590,000 for transfer to Departmental Management, Salaries 
     and Expenses, $318,000 for transfer to Departmental 
     Management, Office of Inspector General, and $356,000 for 
     payment into miscellaneous receipts for the expenses of the 
     Department of Treasury, for expenses of operation and 
     administration of the Black Lung Benefits program as 
     authorized by section 9501(d)(5) of that Act: Provided, That, 
     in addition, such amounts as may be necessary may be charged 
     to the subsequent year appropriation for the payment of 
     compensation, interest, or other benefits for any period 
     subsequent to August 15 of the current year.

             Occupational Safety and Health Administration


                         Salaries and Expenses

       For necessary expenses for the Occupational Safety and 
     Health Administration, $425,983,000, including not to exceed 
     $88,493,000 which shall be the maximum amount available for 
     grants to States under section 23(g) of the Occupational 
     Safety and Health Act, which grants shall be no less than 50 
     percent of the costs of State occupational safety and health 
     programs required to be incurred under plans approved by the 
     Secretary under section 18 of the Occupational Safety and 
     Health Act of 1970; and, in addition, notwithstanding 31 
     U.S.C. 3302, the Occupational Safety and Health 
     Administration may retain up to $750,000 per fiscal year of 
     training institute course tuition fees, otherwise authorized 
     by law to be collected, and may utilize such sums for 
     occupational safety and health training and education grants: 
     Provided, That, notwithstanding 31 U.S.C. 3302, the Secretary 
     of Labor is authorized, during the fiscal year ending 
     September 30, 2001, to collect and retain fees for services 
     provided to Nationally Recognized Testing Laboratories, and 
     may utilize such sums, in accordance with the provisions of 
     29 U.S.C. 9a, to administer national and international 
     laboratory recognition programs that ensure the safety of 
     equipment and products used by workers in the workplace: 
     Provided further, That none of the funds appropriated under 
     this paragraph shall be obligated or expended to prescribe, 
     issue, administer, or enforce any standard, rule, regulation, 
     or order under the Occupational Safety and Health Act of 1970 
     which is applicable to any person who is engaged in a farming 
     operation which does not maintain a temporary labor camp and 
     employs 10 or fewer employees: Provided further, That no 
     funds appropriated under this paragraph shall be obligated or 
     expended to administer or enforce any standard, rule, 
     regulation, or order under the Occupational Safety and Health 
     Act of 1970 with respect to any employer of 10 or fewer 
     employees who is included within a category having an 
     occupational injury lost workday case rate, at the most 
     precise Standard Industrial Classification Code for which 
     such data are published, less than the national average rate 
     as such rates are most recently published by the Secretary, 
     acting through the Bureau of Labor Statistics, in accordance 
     with section 24 of that Act (29 U.S.C. 673), except--
       (1) to provide, as authorized by such Act, consultation, 
     technical assistance, educational and training services, and 
     to conduct surveys and studies;
       (2) to conduct an inspection or investigation in response 
     to an employee complaint, to issue a citation for violations 
     found during such inspection, and to assess a penalty for 
     violations which are not corrected within a reasonable 
     abatement period and for any willful violations found;
       (3) to take any action authorized by such Act with respect 
     to imminent dangers;
       (4) to take any action authorized by such Act with respect 
     to health hazards;
       (5) to take any action authorized by such Act with respect 
     to a report of an employment accident which is fatal to one 
     or more employees or which results in hospitalization of two 
     or more employees, and to take any action pursuant to such 
     investigation authorized by such Act; and
       (6) to take any action authorized by such Act with respect 
     to complaints of discrimination against employees for 
     exercising rights under such Act:

     Provided further, That the foregoing proviso shall not apply 
     to any person who is engaged in a farming operation which 
     does not maintain a temporary labor camp and employs 10 or 
     fewer employees.

                 Mine Safety and Health Administration


                         Salaries and Expenses

       For necessary expenses for the Mine Safety and Health 
     Administration, $246,747,000, including purchase and bestowal 
     of certificates and trophies in connection with mine rescue 
     and first-aid work, and the hire of passenger motor vehicles; 
     including up to $1,000,000 for mine rescue and recovery 
     activities, which shall be available only to the extent that 
     fiscal year 2001 obligations for these activities exceed 
     $1,000,000; in addition, not to exceed $750,000 may be 
     collected by the National Mine Health and Safety Academy for 
     room, board, tuition, and the sale of training materials, 
     otherwise authorized by law to be collected, to be available 
     for mine safety and health education and training activities, 
     notwithstanding 31 U.S.C. 3302; and, in addition, the Mine 
     Safety and Health Administration may retain up to $1,000,000 
     from fees collected for the approval and certification of 
     equipment, materials, and explosives for use in mines, and 
     may utilize such sums for such activities; the Secretary is 
     authorized to accept lands, buildings, equipment, and other 
     contributions from public and private sources and to 
     prosecute projects in cooperation with other agencies, 
     Federal, State, or private; the Mine Safety and Health 
     Administration is authorized to promote health and safety 
     education and training in the mining community through 
     cooperative programs with States, industry, and safety 
     associations; and any funds available to the department may 
     be used, with the approval of the Secretary, to provide for 
     the costs of mine rescue and survival operations in the event 
     of a major disaster.

                       Bureau of Labor Statistics


                         Salaries and Expenses

       For necessary expenses for the Bureau of Labor Statistics, 
     including advances or reimbursements to State, Federal, and 
     local agencies

[[Page 26673]]

     and their employees for services rendered, $374,327,000, 
     together with not to exceed $67,257,000, which may be 
     expended from the Employment Security Administration account 
     in the Unemployment Trust Fund; and $10,000,000 which shall 
     be available for obligation for the period July 1, 2001 
     through June 30, 2002, for Occupational Employment 
     Statistics.

                        Departmental Management


                         Salaries and Expenses

       For necessary expenses for Departmental Management, 
     including the hire of three sedans, and including the 
     management or operation, through contracts, grants or other 
     arrangements of Departmental bilateral and multilateral 
     foreign technical assistance, of which the funds designated 
     to carry out bilateral assistance under the international 
     child labor initiative shall be available for obligation 
     through September 30, 2002, and $37,000,000 for the 
     acquisition of Departmental information technology, 
     architecture, infrastructure, equipment, software and related 
     needs which will be allocated by the Department's Chief 
     Information Officer in accordance with the Department's 
     capital investment management process to assure a sound 
     investment strategy; $380,529,000; together with not to 
     exceed $310,000, which may be expended from the Employment 
     Security Administration account in the Unemployment Trust 
     Fund: Provided, That no funds made available by this Act may 
     be used by the Solicitor of Labor to participate in a review 
     in any United States court of appeals of any decision made by 
     the Benefits Review Board under section 21 of the Longshore 
     and Harbor Workers' Compensation Act (33 U.S.C. 921) where 
     such participation is precluded by the decision of the United 
     States Supreme Court in Director, Office of Workers' 
     Compensation Programs v. Newport News Shipbuilding, 115 S. 
     Ct. 1278 (1995), notwithstanding any provisions to the 
     contrary contained in Rule 15 of the Federal Rules of 
     Appellate Procedure: Provided further, That no funds made 
     available by this Act may be used by the Secretary of Labor 
     to review a decision under the Longshore and Harbor Workers' 
     Compensation Act (33 U.S.C. 901 et seq.) that has been 
     appealed and that has been pending before the Benefits Review 
     Board for more than 12 months: Provided further, That any 
     such decision pending a review by the Benefits Review Board 
     for more than 1 year shall be considered affirmed by the 
     Benefits Review Board on the 1-year anniversary of the filing 
     of the appeal, and shall be considered the final order of the 
     Board for purposes of obtaining a review in the United States 
     courts of appeals: Provided further, That these provisions 
     shall not be applicable to the review or appeal of any 
     decision issued under the Black Lung Benefits Act (30 U.S.C. 
     901 et seq.): Provided further, That beginning in fiscal year 
     2001, there is established in the Department of Labor an 
     office of disability employment policy which shall, under the 
     overall direction of the Secretary, provide leadership, 
     develop policy and initiatives, and award grants furthering 
     the objective of eliminating barriers to the training and 
     employment of people with disabilities. Such office shall be 
     headed by an assistant secretary: Provided further, That of 
     amounts provided under this head, not more than $23,002,000 
     is for this purpose.


                    Veterans Employment and Training

       Not to exceed $186,913,000 may be derived from the 
     Employment Security Administration account in the 
     Unemployment Trust Fund to carry out the provisions of 38 
     U.S.C. 4100-4110A, 4212, 4214, and 4321-4327, and Public Law 
     103-353, and which shall be available for obligation by the 
     States through December 31, 2001. To carry out the Stewart B. 
     McKinney Homeless Assistance Act and section 168 of the 
     Workforce Investment Act of 1998, $24,800,000, of which 
     $7,300,000 shall be available for obligation for the period 
     July 1, 2001, through June 30, 2002.


                      Office of Inspector General

       For salaries and expenses of the Office of Inspector 
     General in carrying out the provisions of the Inspector 
     General Act of 1978, as amended, $50,015,000, together with 
     not to exceed $4,770,000, which may be expended from the 
     Employment Security Administration account in the 
     Unemployment Trust Fund.

                           GENERAL PROVISIONS

       Sec. 101. None of the funds appropriated in this title for 
     the Job Corps shall be used to pay the compensation of an 
     individual, either as direct costs or any proration as an 
     indirect cost, at a rate in excess of Executive Level II.


                          (transfer of funds)

       Sec. 102. Not to exceed 1 percent of any discretionary 
     funds (pursuant to the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended) which are appropriated for 
     the current fiscal year for the Department of Labor in this 
     Act may be transferred between appropriations, but no such 
     appropriation shall be increased by more than 3 percent by 
     any such transfer: Provided, That the Appropriations 
     Committees of both Houses of Congress are notified at least 
     15 days in advance of any transfer.
       Sec. 103. Section 403(a)(5)(C)(viii) of the Social Security 
     Act (42 U.S.C. 603(a)(5)(C)(viii)) (as amended by section 
     801(b)(1)(A) of the Departments of Labor, Health and Human 
     Services, and Education, and Related Agencies Appropriations 
     Act, 2000 (as enacted into law by section 1000(a)(4) of 
     Public Law 106-113)) is amended by striking ``3 years'' and 
     inserting ``5 years''.
       Sec. 104. No funds appropriated in this Act or any other 
     Act making appropriations for fiscal year 2001 may be used to 
     implement or enforce the proposed and final regulations 
     appearing in 65 Fed. Reg. 43528-43583, regarding temporary 
     alien labor certification applications and petitions for 
     admission of nonimmigrant workers, or any similar or 
     successor rule with an effective date prior to October 1, 
     2001: Provided, That nothing in this section shall prohibit 
     the development or revision of such a rule, or the 
     publication of any similar or successor proposed or final 
     rule, or the provision of training or technical assistance, 
     or other activities necessary and appropriate in preparing to 
     implement such a rule with an effective date after September 
     30, 2001.
       Sec. 105. Section 218(c)(4) of the Immigration and 
     Nationality Act (8 U.S.C. 1188(c)(4)) is amended by adding at 
     the end the following new sentence: ``The determination as to 
     whether the housing furnished by an employer for an H-2A 
     worker meets the requirements imposed by this paragraph must 
     be made prior to the date specified in paragraph (3)(A) by 
     which the Secretary of Labor is required to make a 
     certification described in subsection (a)(1) with respect to 
     a petition for the importation of such worker.''.
       Sec. 106. Section 286(s)(6) of the Immigration and 
     Naturalization Act (8 U.S.C. 1356(s)(6)) is amended by 
     inserting, ``and section 212(a)(5)(A)'' after the second 
     reference to ``section 212(n)(1)''.
       Sec. 107. (a) Section 403(a)(5) of the Social Security Act 
     (as amended by section 806(b) of the Departments of Labor, 
     Health and Human Services, and Education, and Related 
     Agencies Appropriations Act, 2000 (as enacted into law by 
     section 1000(a)(4) of Public Law 106-113)) is amended by 
     striking subparagraph (E) and redesignating subparagraphs (F) 
     through (K) as subparagraphs (E) through (J), respectively.
       (b) The Social Security Act (as amended by section 806(b) 
     of the Departments of Labor, Health and Human Services, and 
     Education, and Related Agencies Appropriations Act, 2000 (as 
     enacted into law by section 1000(a)(4) of Public Law 106-
     113)) is further amended as follows:
       (1) Section 403(a)(5)(A)(i) (42 U.S.C. 603(a)(5)(A)(i)) is 
     amended by striking ``subparagraph (I)'' and inserting 
     ``subparagraph (H)''.
       (2) Subclause (I) of each of subparagraphs (A)(iv) and 
     (B)(v) of section 403(a)(5) (42 U.S.C. 603(a)(5)(A)(iv)(I) 
     and (B)(v)(I)) is amended--
       (A) in item (aa)--
       (i) by striking ``(I)'' and inserting ``(H)''; and
       (ii) by striking ``(G), and (H)'' and inserting ``and 
     (G)''; and
       (B) in item (bb), by striking ``(F)'' and inserting 
     ``(E)''.
       (3) Section 403(a)(5)(B)(v) (42 U.S.C. 603(a)(5)(B)(v)) is 
     amended in the matter preceding subclause (I) by striking 
     ``(I)'' and inserting ``(H)''.
       (4) Subparagraphs (E), (F), and (G)(i) of section 403(a)(5) 
     (42 U.S.C. 603(a)(5)), as so redesignated by subsection (a) 
     of this section, are each amended by striking ``(I)'' and 
     inserting ``(H)''.
       (5) Section 412(a)(3)(A) (42 U.S.C. 612(a)(3)(A)) is 
     amended by striking ``403(a)(5)(I)'' and inserting 
     ``403(a)(5)(H)''.
       (c) Section 403(a)(5)(H)(i)(II) of such Act (42 U.S.C. 
     603(a)(5)(H)(i))(II) (as redesignated by subsection (a) of 
     this section and as amended by section 806(b) of the 
     Departments of Labor, Health and Human Services, and 
     Education, and Related Agencies Appropriations Act, 2000 (as 
     enacted into law by section 1000(a)(4) of Public Law 106-
     113)) is further amended by striking ``$1,450,000,000'' and 
     inserting ``$1,400,000,000''.
       (d) The amendments made by subsections (a), (b), and (c) of 
     this section shall take effect on October 1, 2000.
       This title may be cited as the ``Department of Labor 
     Appropriations Act, 2001''.

           TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES

              Health Resources and Services Administration


                     health resources and services

       For carrying out titles II, III, VII, VIII, X, XII, XIX, 
     and XXVI of the Public Health Service Act, section 427(a) of 
     the Federal Coal Mine Health and Safety Act, title V and 
     section 1820 of the Social Security Act, the Health Care 
     Quality Improvement Act of 1986, as amended, the Native 
     Hawaiian Health Care Act of 1988, as amended, and the Poison 
     Control Center Enhancement and Awareness Act, $5,525,476,000, 
     of which $226,224,000 shall be available for the construction 
     and renovation of health care and other facilities, and of 
     which $25,000,000 from general revenues, notwithstanding 
     section 1820(j) of the Social Security Act, shall be 
     available for carrying out the Medicare rural hospital 
     flexibility grants program under section 1820 of such Act: 
     Provided, That the Division of Federal Occupational Health 
     may utilize personal services contracting to employ 
     professional management/administrative and occupational 
     health professionals: Provided further, That of the funds 
     made available under this heading, $250,000 shall be 
     available until expended for facilities renovations at the 
     Gillis W. Long Hansen's Disease Center: Provided further, 
     That in addition to fees authorized by section 427(b) of the 
     Health Care Quality Improvement Act of 1986, fees shall be 
     collected for the full disclosure of information under the 
     Act sufficient to recover the full costs of operating the 
     National Practitioner Data Bank, and shall remain available 
     until expended to carry out that Act: Provided further, That 
     fees collected for the full disclosure of information under 
     the ``Health Care Fraud and Abuse Data Collection Program,'' 
     authorized by section 1128E(d)(2) of the

[[Page 26674]]

     Social Security Act, shall be sufficient to recover the full 
     costs of operating the program, and shall remain available 
     until expended to carry out that Act: Provided further, That 
     no more than $5,000,000 is available for carrying out the 
     provisions of Public Law 104-73: Provided further, That of 
     the funds made available under this heading, $253,932,000 
     shall be for the program under title X of the Public Health 
     Service Act to provide for voluntary family planning 
     projects: Provided further, That amounts provided to said 
     projects under such title shall not be expended for 
     abortions, that all pregnancy counseling shall be 
     nondirective, and that such amounts shall not be expended for 
     any activity (including the publication or distribution of 
     literature) that in any way tends to promote public support 
     or opposition to any legislative proposal or candidate for 
     public office: Provided further, That $589,000,000 shall be 
     for State AIDS Drug Assistance Programs authorized by section 
     2616 of the Public Health Service Act: Provided further, That 
     of the amount provided under this heading, $700,000 shall be 
     for the American Federation of Negro Affairs Education and 
     Research Fund of Philadelphia, $900,000 shall be for the Des 
     Moines University Osteopathic Medical Center, $250,000 shall 
     be for the University of Alaska, Anchorage, to train Alaska 
     Natives as psychologists, $900,000 shall be for Northeastern 
     University in Boston, Massachusetts to train doctors to serve 
     in low-income communities, $500,000 shall be for the 
     University of Alaska, Anchorage, to recruit and train nurses 
     in rural areas, and $230,000 shall be for the Illinois Poison 
     Center: Provided further, That, notwithstanding section 
     502(a)(1) of the Social Security Act, not to exceed 
     $113,728,000 is available for carrying out special projects 
     of regional and national significance pursuant to section 
     501(a)(2) of such Act, of which $5,000,000 is for Columbia 
     Hospital for Women Medical Center in Washington, D.C., to 
     support community outreach programs for women, $5,000,000 is 
     for continuation of the traumatic brain injury State 
     demonstration projects, and $100,000 is for St. Joseph's 
     Health Services of Rhode Island for the Providence Smiles 
     dental program for low-income children.
       For special projects of regional and national significance 
     under section 501(a)(2) of the Social Security Act, 
     $30,000,000, which shall become available on October 1, 2001, 
     and shall remain available until September 30, 2002: 
     Provided, That such amount shall not be counted toward 
     compliance with the allocation required in section 502(a)(1) 
     of such Act: Provided further, That such amount shall be used 
     only for making competitive grants to provide abstinence 
     education (as defined in section 510(b)(2) of such Act) to 
     adolescents and for evaluations (including longitudinal 
     evaluations) of activities under the grants and for Federal 
     costs of administering the grants: Provided further, That 
     grants shall be made only to public and private entities 
     which agree that, with respect to an adolescent to whom the 
     entities provide abstinence education under such grant, the 
     entities will not provide to that adolescent any other 
     education regarding sexual conduct, except that, in the case 
     of an entity expressly required by law to provide health 
     information or services the adolescent shall not be precluded 
     from seeking health information or services from the entity 
     in a different setting than the setting in which the 
     abstinence education was provided: Provided further, That the 
     funds expended for such evaluations may not exceed 3.5 
     percent of such amount.


               health education assistance loans program

       Such sums as may be necessary to carry out the purpose of 
     the program, as authorized by title VII of the Public Health 
     Service Act, as amended. For administrative expenses to carry 
     out the guaranteed loan program, including section 709 of the 
     Public Health Service Act, $3,679,000.


             vaccine injury compensation program trust fund

       For payments from the Vaccine Injury Compensation Program 
     Trust Fund, such sums as may be necessary for claims 
     associated with vaccine-related injury or death with respect 
     to vaccines administered after September 30, 1988, pursuant 
     to subtitle 2 of title XXI of the Public Health Service Act, 
     to remain available until expended: Provided, That for 
     necessary administrative expenses, not to exceed $2,992,000 
     shall be available from the Trust Fund to the Secretary of 
     Health and Human Services.

               Centers for Disease Control and Prevention


                Disease Control, Research, and Training

       To carry out titles II, III, VII, XI, XV, XVII, XIX and 
     XXVI of the Public Health Service Act, sections 101, 102, 
     103, 201, 202, 203, 301, and 501 of the Federal Mine Safety 
     and Health Act of 1977, sections 20, 21, and 22 of the 
     Occupational Safety and Health Act, of 1970, title IV of the 
     Immigration and Nationality Act and section 501 of the 
     Refugee Education Assistance Act of 1980; including insurance 
     of official motor vehicles in foreign countries; and hire, 
     maintenance, and operation of aircraft, $3,868,027,000, of 
     which $175,000,000 shall remain available until expended for 
     the facilities master plan for equipment and construction and 
     renovation of facilities, and in addition, such sums as may 
     be derived from authorized user fees, which shall be credited 
     to this account, and of which $104,527,000 for international 
     HIV/AIDS programs shall remain available until September 30, 
     2002: Provided, That in addition to amounts provided herein, 
     up to $71,690,000 shall be available from amounts available 
     under section 241 of the Public Health Service Act to carry 
     out the National Center for Health Statistics Surveys: 
     Provided further, That none of the funds made available for 
     injury prevention and control at the Centers for Disease 
     Control and Prevention may be used to advocate or promote gun 
     control: Provided further, That the Director may redirect the 
     total amount made available under authority of Public Law 
     101-502, section 3, dated November 3, 1990, to activities the 
     Director may so designate: Provided further, That the 
     Congress is to be notified promptly of any such transfer: 
     Provided further, That not to exceed $10,000,000 may be 
     available for making grants under section 1509 of the Public 
     Health Service Act to not more than 15 States: Provided 
     further, That notwithstanding any other provision of law, a 
     single contract or related contracts for development and 
     construction of facilities may be employed which collectively 
     include the full scope of the project: Provided further, That 
     the solicitation and contract shall contain the clause 
     ``availability of funds'' found at 48 CFR 52.232-18: Provided 
     further, That funds obligated for influenza vaccine stockpile 
     in fiscal year 2000 and fiscal year 2001 shall be considered 
     as appropriated under Section 3 of Public Law 101-502.

                     National Institutes of Health


                       National Cancer Institute

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to cancer, $3,757,242,000.


               National Heart, Lung, and Blood Institute

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to cardiovascular, lung, and 
     blood diseases, and blood and blood products, $2,299,866,000.


         National Institute of Dental and Craniofacial Research

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to dental disease, 
     $306,448,000.


    National Institute of Diabetes and Digestive and Kidney Diseases

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to diabetes and digestive and 
     kidney disease, $1,303,385,000.


        National Institute of Neurological Disorders and Stroke

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to neurological disorders and 
     stroke, $1,176,482,000.


         National Institute of Allergy and Infectious Diseases

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to allergy and infectious 
     diseases, $2,043,208,000.


             National Institute of General Medical Sciences

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to general medical sciences, 
     $1,535,823,000.


        National Institute of Child Health and Human Development

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to child health and human 
     development, $976,455,000.


                         National Eye Institute

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to eye diseases and visual 
     disorders, $510,611,000.


          National Institute of Environmental Health Sciences

       For carrying out sections 301 and 311 and title IV of the 
     Public Health Service Act with respect to environmental 
     health sciences, $502,549,000.


                      National Institute on Aging

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to aging, $786,039,000.


 National Institute of Arthritis and Musculoskeletal and Skin Diseases

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to arthritis and 
     musculoskeletal and skin diseases, $396,687,000.


    National Institute on Deafness and Other Communication Disorders

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to deafness and other 
     communication disorders, $300,581,000.


                 National Institute of Nursing Research

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to nursing research, 
     $104,370,000.


           National Institute on Alcohol Abuse and Alcoholism

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to alcohol abuse and 
     alcoholism, $340,678,000.


                    National Institute on Drug Abuse

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to drug abuse, $781,327,000.


                  National Institute of Mental Health

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to mental health, 
     $1,107,028,000.


                National Human Genome Research Institute

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to human genome research, 
     $382,384,000.


                 National Center for Research Resources

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to research resources and 
     general research support grants, $817,475,000: Provided, That 
     none of these funds shall be used to pay recipients of the 
     general research support grants program any amount for 
     indirect expenses in connection

[[Page 26675]]

     with such grants: Provided further, That $75,000,000 shall be 
     for extramural facilities construction grants.


                  John E. Fogarty International Center

       For carrying out the activities at the John E. Fogarty 
     International Center, $50,514,000.


                      National Library of Medicine

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to health information 
     communications, $246,801,000, of which $4,000,000 shall be 
     available until expended for improvement of information 
     systems: Provided, That in fiscal year 2001, the Library may 
     enter into personal services contracts for the provision of 
     services in facilities owned, operated, or constructed under 
     the jurisdiction of the National Institutes of Health.


       National Center for Complementary and Alternative Medicine

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to complementary and 
     alternative medicine, $89,211,000.


       National Center on Minority Health and Health Disparities

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to minority health and health 
     disparities research, $130,200,000.


                         Office of the Director

                     (including transfer of funds)

       For carrying out the responsibilities of the Office of the 
     Director, National Institutes of Health, $213,581,000, of 
     which $48,271,000 shall be for the Office of AIDS Research: 
     Provided, That funding shall be available for the purchase of 
     not to exceed 20 passenger motor vehicles for replacement 
     only: Provided further, That the Director may direct up to 1 
     percent of the total amount made available in this or any 
     other Act to all National Institutes of Health appropriations 
     to activities the Director may so designate: Provided 
     further, That no such appropriation shall be decreased by 
     more than 1 percent by any such transfers and that the 
     Congress is promptly notified of the transfer: Provided 
     further, That the National Institutes of Health is authorized 
     to collect third party payments for the cost of clinical 
     services that are incurred in National Institutes of Health 
     research facilities and that such payments shall be credited 
     to the National Institutes of Health Management Fund: 
     Provided further, That all funds credited to the National 
     Institutes of Health Management Fund shall remain available 
     for one fiscal year after the fiscal year in which they are 
     deposited: Provided further, That up to $500,000 shall be 
     available to carry out section 499 of the Public Health 
     Service Act: Provided further, That, notwithstanding section 
     499(k)(10) of the Public Health Service Act, funds from the 
     Foundation for the National Institutes of Health may be 
     transferred to the National Institutes of Health.


                        buildings and facilities

       For the study of, construction of, and acquisition of 
     equipment for, facilities of or used by the National 
     Institutes of Health, including the acquisition of real 
     property, $153,790,000, to remain available until expended, 
     of which $47,300,000 shall be for the National Neuroscience 
     Research Center: Provided, That notwithstanding any other 
     provision of law, a single contract or related contracts for 
     the development and construction of the first phase of the 
     National Neuroscience Research Center may be employed which 
     collectively include the full scope of the project: Provided 
     further, That the solicitation and contract shall contain the 
     clause ``availability of funds'' found at 48 CFR 52.232-18.

       Substance Abuse and Mental Health Services Administration


               substance abuse and mental health services

       For carrying out titles V and XIX of the Public Health 
     Service Act with respect to substance abuse and mental health 
     services, the Protection and Advocacy for Mentally Ill 
     Individuals Act of 1986, and section 301 of the Public Health 
     Service Act with respect to program management, 
     $2,958,001,000, of which $24,605,000 shall be available for 
     the projects and in the amounts specified in the statement of 
     the managers on the conference report accompanying this Act.

               Agency for Healthcare Research and Quality


                    healthcare research and quality

       For carrying out titles III and IX of the Public Health 
     Service Act, and part A of title XI of the Social Security 
     Act, $104,963,000; in addition, amounts received from Freedom 
     of Information Act fees, reimbursable and interagency 
     agreements, and the sale of data shall be credited to this 
     appropriation and shall remain available until expended: 
     Provided, That the amount made available pursuant to section 
     926(b) of the Public Health Service Act shall not exceed 
     $164,980,000.

                  Health Care Financing Administration


                     Grants to States for Medicaid

       For carrying out, except as otherwise provided, titles XI 
     and XIX of the Social Security Act, $93,586,251,000, to 
     remain available until expended.
       For making, after May 31, 2001, payments to States under 
     title XIX of the Social Security Act for the last quarter of 
     fiscal year 2001 for unanticipated costs, incurred for the 
     current fiscal year, such sums as may be necessary.
       For making payments to States or in the case of section 
     1928 on behalf of States under title XIX of the Social 
     Security Act for the first quarter of fiscal year 2002, 
     $36,207,551,000, to remain available until expended.
       Payment under title XIX may be made for any quarter with 
     respect to a State plan or plan amendment in effect during 
     such quarter, if submitted in or prior to such quarter and 
     approved in that or any subsequent quarter.


                  Payments to Health Care Trust Funds

       For payment to the Federal Hospital Insurance and the 
     Federal Supplementary Medical Insurance Trust Funds, as 
     provided under sections 217(g) and 1844 of the Social 
     Security Act, sections 103(c) and 111(d) of the Social 
     Security Amendments of 1965, section 278(d) of Public Law 97-
     248, and for administrative expenses incurred pursuant to 
     section 201(g) of the Social Security Act, $70,381,600,000.


                           Program Management

       For carrying out, except as otherwise provided, titles XI, 
     XVIII, XIX, and XXI of the Social Security Act, titles XIII 
     and XXVII of the Public Health Service Act, and the Clinical 
     Laboratory Improvement Amendments of 1988, not to exceed 
     $2,246,326,000, to be transferred from the Federal Hospital 
     Insurance and the Federal Supplementary Medical Insurance 
     Trust Funds, as authorized by section 201(g) of the Social 
     Security Act; together with all funds collected in accordance 
     with section 353 of the Public Health Service Act and such 
     sums as may be collected from authorized user fees and the 
     sale of data, which shall remain available until expended, 
     and together with administrative fees collected relative to 
     Medicare overpayment recovery activities, which shall remain 
     available until expended: Provided, That all funds derived in 
     accordance with 31 U.S.C. 9701 from organizations established 
     under title XIII of the Public Health Service Act shall be 
     credited to and available for carrying out the purposes of 
     this appropriation: Provided further, That $18,000,000 
     appropriated under this heading for the managed care system 
     redesign shall remain available until expended: Provided 
     further, That $20,000,000 of the amount available for 
     research, demonstration, and evaluation activities shall be 
     available to continue carrying out demonstration projects on 
     Medicaid coverage of community-based attendant care services 
     for people with disabilities which ensures maximum control by 
     the consumer to select and manage their attendant care 
     services: Provided further, That the Secretary of Health and 
     Human Services is directed to enter into an agreement with 
     the Mind-Body Institute of Boston, Massachusetts to conduct a 
     demonstration of a lifestyle modification program: Provided 
     further, That $2,800,000 of the amount available for 
     research, demonstration, and evaluation activities shall be 
     awarded for administration, evaluation, quality monitoring 
     and peer review of this lifestyle modification demonstration: 
     Provided further, That $2,800,000 of the amount available for 
     research, demonstration, and evaluation activities shall be 
     awarded to a joint application from the University of 
     Pittsburgh, Case Western Reserve in Cleveland, Ohio, and Mt. 
     Sinai Hospital in Miami, Florida, to use integrated nursing 
     services and technology to implement daily monitoring of 
     congestive heart failure patients in underserved populations 
     in accordance with established clinical guidelines: Provided 
     further, That $500,000 of the amount available for research, 
     demonstration, and evaluation activities shall be awarded to 
     the University of Pittsburgh Medical Center and University of 
     Pennsylvania for a study of the efficacy of surgical versus 
     non-surgical management of abdominal aneurysms: Provided 
     further, That $650,000 of the amount available for research, 
     demonstration, and evaluation activities shall be awarded to 
     the Vascular Surgery Outcome Initiative at Dartmouth College: 
     Provided further, That up to $300,000 of the amount available 
     for research, demonstration, and evaluation activities shall 
     be awarded to the United States-Mexico Border Counties 
     Coalition for a study to determine the unreimbursed costs 
     incurred to treat undocumented aliens for medical emergencies 
     in southwest border States, their border counties, and 
     hospitals within the jurisdiction of these States and 
     counties: Provided further, That $1,700,000 of the amount 
     available for research, demonstration, and evaluation 
     activities shall be awarded to the AIDS Healthcare Foundation 
     in Los Angeles for a demonstration of residential and 
     outpatient treatment facilities: Provided further, That 
     $350,000 of the amount available for research, demonstration, 
     and evaluation activities shall be awarded to the Cook 
     County, Illinois Bureau of Health for the Asthma Champion 
     Initiative demonstration to reduce morbidity and mortality 
     from asthma in high prevalence areas: Provided further, That 
     $1,000,000 of the amount available for research, 
     demonstration, and evaluation activities shall be awarded to 
     the West Virginia University School of Medicine's Eye Center 
     to test interventions and improve the quality of life for 
     individuals with low vision, with a particular focus on the 
     elderly: Provided further, That $1,000,000 of the amount 
     available for research, demonstration, and evaluation 
     activities shall be awarded to the Iowa Department of Public 
     Health for the establishment and operation of a mercantile 
     prescription drug purchasing cooperative or non-profit 
     corporation demonstration: Provided further, That $691,000 of 
     the amount available for research, demonstration, and 
     evaluation activities shall be awarded to Ohio State 
     University to determine the benefits of compliance packaging: 
     Provided further, That $855,000 of the amount available for 
     research, demonstration and evaluation activities shall be 
     awarded to Children's Hospice International for a 
     demonstration project to

[[Page 26676]]

     provide a continuum of care for children with life-
     threatening conditions and their families: Provided further, 
     That $921,000 of the amount available for research, 
     demonstration, and evaluation activities shall be awarded to 
     Equip for Equality for a demonstration project to document 
     the impact of an independent investigative unit that will 
     examine deaths or other serious allegations of abuse and 
     neglect of people with disabilities at facilities in 
     Illinois: Provided further, That $1,000,000 of the amount 
     available for research, demonstration, and evaluation 
     activities shall be awarded to Duke University Medical Center 
     to demonstrate the potential savings in the Medicare program 
     of a reimbursement system based on preventative care: 
     Provided further, That $1,843,000 of the amount available for 
     research, demonstration, and evaluation activities shall be 
     awarded to Bucks County, Pennsylvania, for a health 
     improvement project: Provided further, That $255,000 of the 
     amount available for research, demonstration, and evaluation 
     activities shall be awarded to the LA Care Health Plan in Los 
     Angeles, California for a demonstration program to improve 
     clinical data coordination among Medicaid providers: Provided 
     further, That $646,000 of the amount available for research, 
     demonstration, and evaluation activities shall be for the 
     Shelby County Regional Medical Center to establish a Master 
     Patient Index to determine patient Medicaid/TennCare 
     eligibility: Provided further, That the Secretary of Health 
     and Human Services is directed to collect fees in fiscal year 
     2001 from Medicare+Choice organizations pursuant to section 
     1857(e)(2) of the Social Security Act and from eligible 
     organizations with risk-sharing contracts under section 1876 
     of that Act pursuant to section 1876(k)(4)(D) of that Act.


      health maintenance organization loan and loan guarantee fund

       For carrying out subsections (d) and (e) of section 1308 of 
     the Public Health Service Act, any amounts received by the 
     Secretary in connection with loans and loan guarantees under 
     title XIII of the Public Health Service Act, to be available 
     without fiscal year limitation for the payment of outstanding 
     obligations. During fiscal year 2001, no commitments for 
     direct loans or loan guarantees shall be made.

                Administration for Children and Families


  payments to states for child support enforcement and family support 
                                programs

       For making payments to States or other non-Federal entities 
     under titles I, IV-D, X, XI, XIV, and XVI of the Social 
     Security Act and the Act of July 5, 1960 (24 U.S.C. ch. 9), 
     $2,441,800,000, to remain available until expended; and for 
     such purposes for the first quarter of fiscal year 2002, 
     $1,000,000,000, to remain available until expended.
       For making payments to each State for carrying out the 
     program of Aid to Families with Dependent Children under 
     title IV-A of the Social Security Act before the effective 
     date of the program of Temporary Assistance to Needy Families 
     (TANF) with respect to such State, such sums as may be 
     necessary: Provided, That the sum of the amounts available to 
     a State with respect to expenditures under such title IV-A in 
     fiscal year 1997 under this appropriation and under such 
     title IV-A as amended by the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 shall not exceed the 
     limitations under section 116(b) of such Act.
       For making, after May 31 of the current fiscal year, 
     payments to States or other non-Federal entities under titles 
     I, IV-D, X, XI, XIV, and XVI of the Social Security Act and 
     the Act of July 5, 1960 (24 U.S.C. ch. 9), for the last 3 
     months of the current year for unanticipated costs, incurred 
     for the current fiscal year, such sums as may be necessary.


                   low income home energy assistance

       For making payments under title XXVI of the Omnibus Budget 
     Reconciliation Act of 1981, in addition to amounts already 
     appropriated for fiscal year 2001, $300,000,000.
       For making payments under title XXVI of the Omnibus 
     Reconciliation Act of 1981, $300,000,000: Provided, That 
     these funds are hereby designated by the Congress to be 
     emergency requirements pursuant to section 251(b)(2)(A) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985: Provided further, That these funds shall be made 
     available only after submission to the Congress of a formal 
     budget request by the President that includes designation of 
     the entire amount of the request as an emergency requirement 
     as defined in such Act.


                     Refugee and Entrant Assistance

       For making payments for refugee and entrant assistance 
     activities authorized by title IV of the Immigration and 
     Nationality Act and section 501 of the Refugee Education 
     Assistance Act of 1980 (Public Law 96-422), $423,109,000: 
     Provided, That funds appropriated pursuant to section 414(a) 
     of the Immigration and Nationality Act for fiscal year 2001 
     shall be available for the costs of assistance provided and 
     other activities through September 30, 2003: Provided 
     further, That up to $5,000,000 is available to carry out the 
     Trafficking Victims Protection Act of 2000.
       For carrying out section 5 of the Torture Victims Relief 
     Act of 1998 (Public Law 105-320), $10,000,000.


   Payments to States for the Child Care and Development Block Grant

       For carrying out sections 658A through 658R of the Omnibus 
     Budget Reconciliation Act of 1981 (The Child Care and 
     Development Block Grant Act of 1990), in addition to amounts 
     already appropriated for fiscal year 2001, $817,328,000, such 
     funds shall be used to supplement, not supplant state general 
     revenue funds for child care assistance for low-income 
     families: Provided, That of the funds appropriated for fiscal 
     year 2001, $19,120,000 shall be available for child care 
     resource and referral and school-aged child care activities, 
     of which $1,000,000 shall be for the Child Care Aware toll 
     free hotline: Provided further, That of the funds 
     appropriated for fiscal year 2001, in addition to the amounts 
     required to be reserved by the States under section 658G, 
     $272,672,000 shall be reserved by the States for activities 
     authorized under section 658G, of which $100,000,000 shall be 
     for activities that improve the quality of infant and toddler 
     child care: Provided further, That of the funds appropriated 
     for fiscal year 2001, $10,000,000 shall be for use by the 
     Secretary for child care research, demonstration, and 
     evaluation activities.


                      social services block grant

       For making grants to States pursuant to section 2002 of the 
     Social Security Act, $1,725,000,000: Provided, That 
     notwithstanding section 2003(c) of such Act, as amended, the 
     amount specified for allocation under such section for fiscal 
     year 2001 shall be $1,725,000,000: Provided further, That, 
     notwithstanding subparagraph (B) of section 404(d)(2) of such 
     Act, the applicable percent specified under such subparagraph 
     for a State to carry out State programs pursuant to title XX 
     of such Act shall be 10 percent.


                children and families services programs

                        (including rescissions)

       For carrying out, except as otherwise provided, the Runaway 
     and Homeless Youth Act, the Developmental Disabilities 
     Assistance and Bill of Rights Act, the Head Start Act, the 
     Child Abuse Prevention and Treatment Act, the Native American 
     Programs Act of 1974, title II of Public Law 95-266 (adoption 
     opportunities), the Adoption and Safe Families Act of 1997 
     (Public Law 105-89), the Abandoned Infants Assistance Act of 
     1988, the Early Learning Opportunities Act, part B(1) of 
     title IV and sections 413, 429A, 1110, and 1115 of the Social 
     Security Act, and sections 40155, 40211, and 40241 of Public 
     law 103-322; for making payments under the Community Services 
     Block Grant Act, section 473A of the Social Security Act, and 
     title IV of Public Law 105-285, and for necessary 
     administrative expenses to carry out said Acts and titles I, 
     IV, X, XI, XIV, XVI, and XX of the Social Security Act, the 
     Act of July 5, 1960 (24 U.S.C. ch. 9), the Omnibus Budget 
     Reconciliation Act of 1981, title IV of the Immigration and 
     Nationality Act, section 501 of the Refugee Education 
     Assistance Act of 1980, section 5 of the Torture Victims 
     Relief Act of 1998 (Public Law 105-320), sections 40155, 
     40211, and 40241 of Public Law 103-322 and section 126 and 
     titles IV and V of Public Law 100-485, $7,956,345,000, of 
     which $43,000,000, to remain available until September 30, 
     2002, shall be for grants to States for adoption incentive 
     payments, as authorized by section 473A of title IV of the 
     Social Security Act (42 U.S.C. 670-679) and may be made for 
     adoptions completed in fiscal years 1999 and 2000; of which 
     $682,876,000 shall be for making payments under the Community 
     Services Block Grant Act; and of which $6,200,000,000 shall 
     be for making payments under the Head Start Act, of which 
     $1,400,000,000 shall become available October 1, 2001 and 
     remain available through September 30, 2002: Provided, That 
     to the extent Community Services Block Grant funds are 
     distributed as grant funds by a State to an eligible entity 
     as provided under the Act, and have not been expended by such 
     entity, they shall remain with such entity for carryover into 
     the next fiscal year for expenditure by such entity 
     consistent with program purposes: Provided further, That the 
     Secretary shall establish procedures regarding the 
     disposition of intangible property which permits grant funds, 
     or intangible assets acquired with funds authorized under 
     section 680 of the Community Services Block Grant Act, as 
     amended, to become the sole property of such grantees after a 
     period of not more than 12 years after the end of the grant 
     for purposes and uses consistent with the original grant.
       Funds appropriated for fiscal year 2001 under section 
     429A(e), part B of title IV of the Social Security Act shall 
     be reduced by $6,000,000.
       Funds appropriated for fiscal year 2001 under section 
     413(h)(1) of the Social Security Act shall be reduced by 
     $15,000,000.


                   promoting safe and stable families

       For carrying out section 430 of the Social Security Act, 
     $305,000,000.


       payments to states for foster care and adoption assistance

       For making payments to States or other non-Federal entities 
     under title IV-E of the Social Security Act, $4,863,100,000.
       For making payments to States or other non-Federal entities 
     under title IV-E of the Social Security Act, for the first 
     quarter of fiscal year 2002, $1,735,900,000.

                        Administration on Aging


                        Aging Services Programs

       For carrying out, to the extent not otherwise provided, the 
     Older Americans Act of 1965, as amended, and section 398 of 
     the Public Health Service Act, $1,103,135,000, of which 
     $5,000,000 shall be available for activities regarding 
     medication management, screening, and education to prevent 
     incorrect medication and adverse drug reactions: Provided,  
     That notwithstanding section 308(b)(1) of the Older Americans 
     Act of 1965, as amended, the amounts available to each State 
     for administration of the State plan under title III of such 
     Act shall be reduced not more than 5 percent below the amount 
     that was

[[Page 26677]]

     available to such State for such purpose for fiscal year 
     1995.

                        Office of the Secretary


                    general departmental management

       For necessary expenses, not otherwise provided, for general 
     departmental management, including hire of six sedans, and 
     for carrying out titles III, XVII, and XX of the Public 
     Health Service Act, and the United States-Mexico Border 
     Health Commission Act, $285,224,000, together with 
     $5,851,000, to be transferred and expended as authorized by 
     section 201(g)(1) of the Social Security Act from the 
     Hospital Insurance Trust Fund and the Supplemental Medical 
     Insurance Trust Fund: Provided further, That of the funds 
     made available under this heading for carrying out title XX 
     of the Public Health Service Act, $10,377,000 shall be for 
     activities specified under section 2003(b)(2), of which 
     $10,157,000 shall be for prevention service demonstration 
     grants under section 510(b)(2) of title V of the Social 
     Security Act, as amended, without application of the 
     limitation of section 2010(c) of said title XX: Provided 
     further, That no funds shall be obligated for minority AIDS 
     prevention and treatment activities until the Department of 
     Health and Human Services submits an operating plan to the 
     House and Senate Committees on Appropriations.


                      office of inspector general

       For expenses necessary for the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978, as amended, $33,849,000: Provided, That of such 
     amount, necessary sums are available for providing protective 
     services to the Secretary and investigating non-payment of 
     child support cases for which non-payment is a Federal 
     offense under 18 U.S.C. 228, each of which activities is 
     hereby authorized in this and subsequent fiscal years.


                        office for civil rights

       For expenses necessary for the Office for Civil Rights, 
     $24,742,000, together with not to exceed $3,314,000, to be 
     transferred and expended as authorized by section 201(g)(1) 
     of the Social Security Act from the Hospital Insurance Trust 
     Fund and the Supplemental Medical Insurance Trust Fund.


                            policy research

       For carrying out, to the extent not otherwise provided, 
     research studies under section 1110 of the Social Security 
     Act, $16,738,000.


     retirement pay and medical benefits for commissioned officers

       For retirement pay and medical benefits of Public Health 
     Service Commissioned Officers as authorized by law, for 
     payments under the Retired Serviceman's Family Protection 
     Plan and Survivor Benefit Plan, for medical care of 
     dependents and retired personnel under the Dependents' 
     Medical Care Act (10 U.S.C. ch. 55), and for payments 
     pursuant to section 229(b) of the Social Security Act (42 
     U.S.C. 429(b)), such amounts as may be required during the 
     current fiscal year.


            public health and social services emergency fund

       For expenses necessary to support activities related to 
     countering potential biological, disease and chemical threats 
     to civilian populations, $241,231,000: Provided, That this 
     amount is distributed as follows: Centers for Disease Control 
     and Prevention, $181,131,000, of which $32,000,000 shall be 
     for the Health Alert Network and $18,040,000 shall be for the 
     continued study of the anthrax vaccine; and Office of 
     Emergency Preparedness, $60,100,000.

                           GENERAL PROVISIONS

       Sec. 201. Funds appropriated in this title shall be 
     available for not to exceed $37,000 for official reception 
     and representation expenses when specifically approved by the 
     Secretary.
       Sec. 202. The Secretary shall make available through 
     assignment not more than 60 employees of the Public Health 
     Service to assist in child survival activities and to work in 
     AIDS programs through and with funds provided by the Agency 
     for International Development, the United Nations 
     International Children's Emergency Fund or the World Health 
     Organization.
       Sec. 203. None of the funds appropriated under this Act may 
     be used to implement section 399L(b) of the Public Health 
     Service Act or section 1503 of the National Institutes of 
     Health Revitalization Act of 1993, Public Law 103-43.
       Sec. 204. None of the funds appropriated in this Act for 
     the National Institutes of Health and the Substance Abuse and 
     Mental Health Services Administration shall be used to pay 
     the salary of an individual, through a grant or other 
     extramural mechanism, at a rate in excess of Executive Level 
     I.
       Sec. 205. None of the funds appropriated in this Act may be 
     expended pursuant to section 241 of the Public Health Service 
     Act, except for funds specifically provided for in this Act, 
     or for other taps and assessments made by any office located 
     in the Department of Health and Human Services, prior to the 
     Secretary's preparation and submission of a report to the 
     Committee on Appropriations of the Senate and of the House 
     detailing the planned uses of such funds.


                          (transfer of funds)

       Sec. 206. Not to exceed 1 percent of any discretionary 
     funds (pursuant to the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended) which are appropriated for 
     the current fiscal year for the Department of Health and 
     Human Services in this Act may be transferred between 
     appropriations, but no such appropriation shall be increased 
     by more than 3 percent by any such transfer: Provided, That 
     the Appropriations Committees of both Houses of Congress are 
     notified at least 15 days in advance of any transfer.
       Sec. 207. The Director of the National Institutes of 
     Health, jointly with the Director of the Office of AIDS 
     Research, may transfer up to 3 percent among institutes, 
     centers, and divisions from the total amounts identified by 
     these two Directors as funding for research pertaining to the 
     human immunodeficiency virus: Provided, That the Congress is 
     promptly notified of the transfer.
       Sec. 208. Of the amounts made available in this Act for the 
     National Institutes of Health, the amount for research 
     related to the human immunodeficiency virus, as jointly 
     determined by the Director of the National Institutes of 
     Health and the Director of the Office of AIDS Research, shall 
     be made available to the ``Office of AIDS Research'' account. 
     The Director of the Office of AIDS Research shall transfer 
     from such account amounts necessary to carry out section 
     2353(d)(3) of the Public Health Service Act.
       Sec. 209. None of the funds appropriated in this Act may be 
     made available to any entity under title X of the Public 
     Health Service Act unless the applicant for the award 
     certifies to the Secretary that it encourages family 
     participation in the decision of minors to seek family 
     planning services and that it provides counseling to minors 
     on how to resist attempts to coerce minors into engaging in 
     sexual activities.
       Sec. 210. None of the funds appropriated by this Act 
     (including funds appropriated to any trust fund) may be used 
     to carry out the Medicare+Choice program if the Secretary 
     denies participation in such program to an otherwise eligible 
     entity (including a Provider Sponsored Organization) because 
     the entity informs the Secretary that it will not provide, 
     pay for, provide coverage of, or provide referrals for 
     abortions: Provided, That the Secretary shall make 
     appropriate prospective adjustments to the capitation payment 
     to such an entity (based on an actuarially sound estimate of 
     the expected costs of providing the service to such entity's 
     enrollees): Provided further, That nothing in this section 
     shall be construed to change the Medicare program's coverage 
     for such services and a Medicare+Choice organization 
     described in this section shall be responsible for informing 
     enrollees where to obtain information about all Medicare 
     covered services.
       Sec. 211. Notwithstanding any other provision of law, no 
     provider of services under title X of the Public Health 
     Service Act shall be exempt from any State law requiring 
     notification or the reporting of child abuse, child 
     molestation, sexual abuse, rape, or incest.
       Sec. 212. The Foreign Operations, Export Financing, and 
     Related Programs Appropriations Act, 1990 (Public Law 101-
     167) is amended--
       (1) in section 599D (8 U.S.C. 1157 note)--
       (A) in subsection (b)(3), by striking ``1997, 1998, 1999, 
     and 2000'' and inserting ``1997, 1998, 1999, 2000 and 2001''; 
     and
       (B) in subsection (e), by striking ``October 1, 2000'' each 
     place it appears and inserting ``October 1, 2001''; and
       (2) in section 599E (8 U.S.C. 1255 note) in subsection 
     (b)(2), by striking ``September 30, 2000'' and inserting 
     ``September 30, 2001''.
       Sec. 213. None of the funds provided in this Act or in any 
     other Act making appropriations for fiscal year 2001 may be 
     used to administer or implement in Arizona or in the Kansas 
     City, Missouri or in the Kansas City, Kansas area the 
     Medicare Competitive Pricing Demonstration Project (operated 
     by the Secretary of Health and Human Services).
       Sec. 214. (a) Except as provided by subsection (e) none of 
     the funds appropriated by this Act may be used to withhold 
     substance abuse funding from a State pursuant to section 1926 
     of the Public Health Service Act (42 U.S.C. 300x-26) if such 
     State certifies to the Secretary of Health and Human Services 
     by March 1, 2001 that the State will commit additional State 
     funds, in accordance with subsection (b), to ensure 
     compliance with State laws prohibiting the sale of tobacco 
     products to individuals under 18 years of age.
       (b) The amount of funds to be committed by a State under 
     subsection (a) shall be equal to 1 percent of such State's 
     substance abuse block grant allocation for each percentage 
     point by which the State misses the retailer compliance rate 
     goal established by the Secretary of Health and Human 
     Services under section 1926 of such Act.
       (c) The State is to maintain State expenditures in fiscal 
     year 2001 for tobacco prevention programs and for compliance 
     activities at a level that is not less than the level of such 
     expenditures maintained by the State for fiscal year 2000, 
     and adding to that level the additional funds for tobacco 
     compliance activities required under subsection (a). The 
     State is to submit a report to the Secretary on all fiscal 
     year 2000 State expenditures and all fiscal year 2001 
     obligations for tobacco prevention and compliance activities 
     by program activity by July 31, 2001.
       (d) The Secretary shall exercise discretion in enforcing 
     the timing of the State obligation of the additional funds 
     required by the certification described in subsection (a) as 
     late as July 31, 2001.
       (e) None of the funds appropriated by this Act may be used 
     to withhold substance abuse funding pursuant to section 1926 
     from a territory that receives less than $1,000,000.
       Sec. 215. Section 448 of the Public Health Service Act (42 
     U.S.C. 285g) is amended by inserting ``gynecologic health,'' 
     after ``with respect to''.
       Sec. 216. None of the funds appropriated under this Act 
     shall be expended by the National Institutes of Health on a 
     contract for the

[[Page 26678]]

     care of the 288 chimpanzees acquired by the National 
     Institutes of Health from the Coulston Foundation, unless the 
     contractor is accredited by the Association for the 
     Assessment and Accreditation of Laboratory Animal Care 
     International or has a Public Health Services assurance, and 
     has not been charged multiple times with egregious violations 
     of the Animal Welfare Act: Provided, That the requirements of 
     section 481(A)(e)(1) shall not apply to funds awarded to 
     nonhuman primate research facilities of special interest to 
     NIH.
       Sec. 217. No grants may be awarded under the first 
     paragraph under the heading ``Department of Health and Human 
     Services, Health Resources and Services Administration, 
     Health Resources and Services'' in chapter 4 of title II of 
     the Emergency Supplemental Act, 2000 (Public Law 106-246, 
     division B) until March 1, 2001.
       Sec. 218. (a) The second sentence of section 5948(d) of 
     title 5, United States Code, is amended to read as follows: 
     ``No agreement shall be entered into under this section later 
     than September 30, 2005, nor shall any agreement cover a 
     period of service extending beyond September 30, 2007.''.
       (b) Section 3 of the Federal Physicians Comparability 
     Allowance Act of 1978 (5 U.S.C. 5948 note) is amended by 
     striking ``September 30, 2002'' and inserting ``September 30, 
     2007''.
       Sec. 219. (a) Congress makes the following findings:
       (1) Organ procurement organizations play an important role 
     in the effort to increase organ donation in the United 
     States.
       (2) The current process for the certification and 
     recertification of organ procurement organizations conducted 
     by the Department of Health and Human Services has created a 
     level of uncertainty that is interfering with the 
     effectiveness of organ procurement organizations in raising 
     the level of organ donation.
       (3) The General Accounting Office, the Institute of 
     Medicine, and the Harvard School of Public Health have 
     identified substantial limitations in the organ procurement 
     organization certification and recertification process and 
     have recommended changes in that process.
       (4) The limitations in the recertification process include:
       (A) An exclusive reliance on population-based measures of 
     performance that do not account for the potential in the 
     population for organ donation and do not permit consideration 
     of other outcome and process standards that would more 
     accurately reflect the relative capability and performance of 
     each organ procurement organization.
       (B) A lack of due process to appeal to the Secretary of 
     Health and Human Services for recertification on either 
     substantive or procedural grounds.
       (5) The Secretary of Health and Human Services has the 
     authority under section 1138(b)(1)(A)(i) of the Social 
     Security Act (42 U.S.C. 1320b-8(b)(1)(A)(i)) to extend the 
     period for recertification of an organ procurement 
     organization from 2 to 4 years on the basis of its past 
     practices in order to avoid the inappropriate disruption of 
     the nation's organ system.
       (6) The Secretary of Health and Human Services can use the 
     extended period described in paragraph (5) for 
     recertification of all organ procurement organizations to--
       (A) develop improved performance measures that would 
     reflect organ donor potential and interim outcomes, and to 
     test these measures to ensure that they accurately measure 
     performance differences among the organ procurement 
     organizations; and
       (B) improve the overall certification process by 
     incorporating process as well as outcome performance 
     measures, and developing equitable processes for appeals.
       (b) Section 371(b)(1) of the Public Health Service Act (42 
     U.S.C. 273(b)(1)) is amended--
       (1) by redesignating subparagraphs (D) through (G) as 
     subparagraphs (E) through (H), respectively;
       (2) by realigning the margin of subparagraph (F) (as so 
     redesignated) so as to align with subparagraph (E) (as so 
     redesignated); and
       (3) by inserting after subparagraph (C) the following:
       ``(D) notwithstanding any other provision of law, has met 
     the other requirements of this section and has been certified 
     or recertified by the Secretary within the previous 4-year 
     period as meeting the performance standards to be a qualified 
     organ procurement organization through a process that 
     either--
       ``(i) granted certification or recertification within such 
     4-year period with such certification or recertification in 
     effect as of January 1, 2000, and remaining in effect through 
     the earlier of--
       ``(I) January 1, 2002; or
       ``(II) the completion of recertification under the 
     requirements of clause (ii); or
       ``(ii) is defined through regulations that are promulgated 
     by the Secretary by not later than January 1, 2002, that--
       ``(I) require recertifications of qualified organ 
     procurement organizations not more frequently than once every 
     4 years;
       ``(II) rely on outcome and process performance measures 
     that are based on empirical evidence, obtained through 
     reasonable efforts, of organ donor potential and other 
     related factors in each service area of qualified organ 
     procurement organizations;
       ``(III) use multiple outcome measures as part of the 
     certification process; and
       ``(IV) provide for a qualified organ procurement 
     organization to appeal a decertification to the Secretary on 
     substantive and procedural grounds;''.
       Sec. 220. (a) In order for the Centers for Disease Control 
     and Prevention to carry out international HIV/AIDS and other 
     infectious disease, chronic and environmental disease, and 
     other health activities abroad during fiscal year 2001, the 
     Secretary of Health and Human Services is authorized to--
       (1) utilize the authorities contained in subsection 2(c) of 
     the State Department Basic Authorities Act of 1956, as 
     amended, subject to the limitations set forth in subsection 
     (b), and
       (2) enter into reimbursable agreements with the Department 
     of State using any funds appropriated to the Department of 
     Health and Human Services, for the purposes for which the 
     funds were appropriated in accordance with authority granted 
     to the Secretary of Health and Human Services or under 
     authority governing the activities of the Department of 
     State.
       (b) In exercising the authority set forth in subsection 
     (a)(1), the Secretary of Health and Human Services--
       (1) shall not award contracts for performance of an 
     inherently governmental function; and
       (2) shall follow otherwise applicable Federal procurement 
     laws and regulations to the maximum extent practicable.
       Sec. 221. Notwithstanding any other provision of law, the 
     Director, National Institutes of Health, may enter into and 
     administer a long-term lease for facilities for the purpose 
     of providing laboratory, office and other space for 
     biomedical and behavioral research at the Bayview Campus in 
     Baltimore, Maryland: Provided, That the House and Senate 
     Appropriations Committees will be notified of the terms and 
     conditions of the lease upon its execution.
       Sec. 222. Of the funds appropriated in this Act for the 
     National Institutes of Health, $5,800,000 shall be 
     transferred to the Office of the Secretary, General 
     Departmental Management to support the newly established 
     Office for Human Research Protections.
       Sec. 223. Section 487E(a)(1) of the Public Health Service 
     Act is amended by striking ``as employees of the National 
     Institutes of Health''.
       Sec. 224. Notwithstanding any other provision of law 
     relating to vacancies in offices for which appointments must 
     be made by the President, including any time limitation on 
     serving in an acting capacity, the Acting Director of the 
     National Institutes of Health as of January 12, 2000, may 
     serve in that position until a new Director of the National 
     Institutes of Health is confirmed by the Senate.
       Sec. 225. The National Neuroscience Research Center to be 
     constructed on the National Institutes of Health Bethesda 
     campus is hereby named the John Edward Porter Neuroscience 
     Research Center.
       This title may be cited as the ``Department of Health and 
     Human Services Appropriations Act, 2001''.

                   TITLE III--DEPARTMENT OF EDUCATION


                            Education Reform

       For carrying out activities authorized by title IV of the 
     Goals 2000: Educate America Act as in effect prior to 
     September 30, 2000, and sections 3122, 3132, 3136, and 3141, 
     parts B, C, and D of title III, and section 10105 and part I 
     of title X of the Elementary and Secondary Education Act of 
     1965, $1,880,710,000, of which $38,000,000 shall be for the 
     Goals 2000: Educate America Act, and of which $191,950,000 
     shall be for section 3122: Provided, That up to one-half of 1 
     percent of the amount available under section 3132 shall be 
     set aside for the outlying areas, to be distributed on the 
     basis of their relative need as determined by the Secretary 
     in accordance with the purposes of the program: Provided 
     further, That if any State educational agency does not apply 
     for a grant under section 3132, that State's allotment under 
     section 3131 shall be reserved by the Secretary for grants to 
     local educational agencies in that State that apply directly 
     to the Secretary according to the terms and conditions 
     published by the Secretary in the Federal Register: Provided 
     further, That with respect to all funds appropriated to carry 
     out section 10901 et seq. in this Act, the Secretary shall 
     strongly encourage applications for grants that are to be 
     submitted jointly by a local educational agency (or a 
     consortium of local educational agencies) and a community-
     based organization that has experience in providing before- 
     and after-school services and all applications submitted to 
     the Secretary shall contain evidence that the project 
     contains elements that are designed to assist students in 
     meeting or exceeding state and local standards in core 
     academic subjects, as appropriate to the needs of 
     participating children: Provided further, That $125,000,000, 
     which shall become available on July 1, 2001, and remain 
     available through September 30, 2002, shall be available to 
     support activities under section 10105 of part A of title X 
     of the Elementary and Secondary Education Act of 1965, of 
     which up to 6 percent shall become available October 1, 2000, 
     and be available for evaluation, technical assistance, school 
     networking, peer review of applications, and program outreach 
     activities: Provided further, That funds made available to 
     local educational agencies under this section shall be used 
     only for activities related to establishing smaller learning 
     communities in high schools: Provided further, That 
     $46,328,000 of the funds available to carry out section 3136 
     of the Elementary and Secondary Education Act of 1965, 
     $8,768,000 of the funds available to carry out part B of 
     title III of that Act and $20,614,000 of the funds available 
     to carry out part I of title X of that Act shall be available 
     for the projects and in the amounts specified in the 
     statement of the managers on the conference report 
     accompanying this Act.

[[Page 26679]]




                    Education for the Disadvantaged

       For carrying out title I of the Elementary and Secondary 
     Education Act of 1965, and section 418A of the Higher 
     Education Act of 1965, $9,532,621,000, of which 
     $2,731,921,000 shall become available on July 1, 2001, and 
     shall remain available through September 30, 2002, and of 
     which $6,758,300,000 shall become available on October 1, 
     2001 and shall remain available through September 30, 2002, 
     for academic year 2001-2002: Provided, That $7,332,721,000 
     shall be available for basic grants under section 1124: 
     Provided further, That $225,000,000 of these funds shall be 
     allocated among the States in the same proportion as funds 
     are allocated among the States under section 1122, to carry 
     out section 1116(c): Provided further, That 100 percent of 
     these funds shall be allocated by states to local educational 
     agencies for the purposes of carrying out section 1116(c): 
     Provided further, That all local educational agencies 
     receiving an allocation under the preceding proviso, and all 
     other local educational agencies that are within a State that 
     receives funds under part A of title I of the Elementary and 
     Secondary Education Act of 1965 (other than a local 
     educational agency within a State receiving a minimum grant 
     under section 1124(d) or 1124A(a)(1)(B) of such Act), shall 
     provide all students enrolled in a school identified under 
     section 1116(c) with the option to transfer to another public 
     school within the local educational agency, including a 
     public charter school, that has not been identified for 
     school improvement under section 1116(c), unless such option 
     to transfer is prohibited by State law, or local law, which 
     includes school board-approved local educational agency 
     policy: Provided further, That if the local educational 
     agency demonstrates to the satisfaction of the State 
     educational agency that the local educational agency lacks 
     the capacity to provide all students with the option to 
     transfer to another public school, and after giving notice to 
     the parents of children affected that it is not possible, 
     consistent with State and local law, to accommodate the 
     transfer request of every student, the local educational 
     agency shall permit as many students as possible (who shall 
     be selected by the local educational agency on an equitable 
     basis) to transfer to a public school that has not been 
     identified for school improvement under section 1116(c): 
     Provided further, That up to $3,500,000 of these funds shall 
     be available to the Secretary on October 1, 2000, to obtain 
     updated local educational agency level census poverty data 
     from the Bureau of the Census: Provided further, That 
     $1,364,000,000 shall be available for concentration grants 
     under section 1124A: Provided further, That grant awards 
     under sections 1124 and 1124A of title I of the Elementary 
     and Secondary Education Act of 1965 shall be not less than 
     the greater of 100 percent of the amount each State and local 
     educational agency received under this authority for fiscal 
     year 2000 or the amount such State and local educational 
     agency would receive if $6,883,503,000 for Basic Grants and 
     $1,222,397,000 for Concentration Grants were allocated in 
     accordance with section 1122(c)(3) of title I: Provided 
     further, That notwithstanding any other provision of law, 
     grant awards under section 1124A of title I of the Elementary 
     and Secondary Education Act of 1965 shall be made to those 
     local educational agencies that received a Concentration 
     Grant under the Department of Education Appropriations Act, 
     2000, but are not eligible to receive such a grant for fiscal 
     year 2001: Provided further, That the Secretary shall not 
     take into account the hold harmless provisions in this 
     section in determining State allocations under any other 
     program administered by the Secretary in any fiscal year: 
     Provided further, That $8,900,000 shall be available for 
     evaluations under section 1501 and not more than $8,500,000 
     shall be reserved for section 1308, of which not more than 
     $3,000,000 shall be reserved for section 1308(d): Provided 
     further, That $210,000,000 shall be available under section 
     1002(g)(2) to demonstrate effective approaches to 
     comprehensive school reform to be allocated and expended in 
     accordance with the instructions relating to this activity in 
     the statement of the managers on the conference report 
     accompanying Public Law 105-78 and in the statement of the 
     managers on the conference report accompanying Public Law 
     105-277: Provided further, That in carrying out this 
     initiative, the Secretary and the States shall support only 
     approaches that show the most promise of enabling children 
     served by title I to meet challenging State content standards 
     and challenging State student performance standards based on 
     reliable research and effective practices, and include an 
     emphasis on basic academics and parental involvement.


                               impact aid

       For carrying out programs of financial assistance to 
     federally affected schools authorized by title VIII of the 
     Elementary and Secondary Education Act of 1965, $993,302,000, 
     of which $882,000,000 shall be for basic support payments 
     under section 8003(b), $50,000,000 shall be for payments for 
     children with disabilities under section 8003(d), $12,802,000 
     shall be for construction under section 8007, $40,500,000 
     shall be for Federal property payments under section 8002, 
     and $8,000,000, to remain available until expended, shall be 
     for facilities maintenance under section 8008: Provided, That 
     $6,802,000 of the funds for section 8007 shall be available 
     for the local educational agencies and in the amounts 
     specified in the statement of the managers on the conference 
     report accompanying this Act: Provided further, That from the 
     amount appropriated for section 8002, the Secretary shall 
     treat as timely filed, and shall process for payment, an 
     application for a fiscal year 1999 payment from Academy 
     School District 20, Colorado, under that section if the 
     Secretary has received that application not later than 30 
     days after the enactment of this Act: Provided further, That 
     the Secretary of Education shall consider the local 
     educational agency serving the Kadoka School District, 35-1, 
     in South Dakota, eligible for payments under section 8002 for 
     fiscal year 2001 and each succeeding fiscal year, with 
     respect to land in Washabaugh and Jackson Counties, South 
     Dakota, that is owned by the Department of Defense and used 
     as a bombing range: Provided further, That from the amount 
     appropriated for section 8002, the Secretary shall first 
     increase the payment of any local educational agency that was 
     denied funding or had its payment reduced under that section 
     for fiscal year 1998 due to section 8002(b)(1)(C) to the 
     amount that would have been made without the limitation of 
     that section: Provided further, That from the amount 
     appropriated for section 8002, $500,000 shall be for 
     subsection 8002(j).


                      School Improvement Programs

       For carrying out school improvement activities authorized 
     by titles II, IV, V-A and B, VI, IX, X, and XIII of the 
     Elementary and Secondary Education Act of 1965 (``ESEA''); 
     the McKinney-Vento Homeless Assistance Act; and the Civil 
     Rights Act of 1964 and part B of title VIII of the Higher 
     Education Amendments of 1998; $4,872,084,000, of which 
     $2,403,750,000 shall become available on July 1, 2001, and 
     remain available through September 30, 2002, and of which 
     $1,765,000,000 shall become available on October 1, 2001 and 
     shall remain available through September 30, 2002 for 
     academic year 2001-2002: Provided, That $485,000,000 shall be 
     available for Eisenhower professional development State 
     grants under part B of title II of the Elementary and 
     Secondary Education Act of 1965: Provided further, That each 
     local educational agency shall use funds in excess of the 
     allocation it received under such part for the preceding 
     fiscal year to improve teacher quality by reducing the 
     percentage of teachers who do not have State certification or 
     are certified through emergency or provisional means; are 
     teaching out of field in some or all of the subject areas and 
     grade levels in which they teach; or who lack sufficient 
     content knowledge to teach effectively in the areas they 
     teach to obtain that knowledge: Provided further, That the 
     local educational agency may also use such excess funds for: 
     activities authorized under section 2210 of the Elementary 
     and Secondary Education Act of 1965; mentoring programs for 
     new teachers; providing opportunities for teachers to attend 
     multi-week institutes, such as those provided in the summer 
     months, that provide intensive professional development in 
     partnership with local educational agencies; and carrying out 
     initiatives to promote the retention of highly qualified 
     teachers who have a record of success in helping low-
     achieving students improve their academic success: Provided 
     further, That each State educational agency may use such 
     excess funds to carry out activities under section 2207 of 
     the Elementary and Secondary Education Act of 1965: Provided 
     further, That each State agency for higher education may use 
     such excess funds to carry out activities under section 2211 
     of the Elementary and Secondary Education Act of 1965: 
     Provided further, That both State educational agencies and 
     State agencies for higher education may also use such excess 
     funds for multi-week institutes, such as those provided in 
     the summer months, that provide intensive professional 
     development in partnership with local educational agencies; 
     and grants to partnerships of such entities as local 
     educational agencies, institutions of higher education, and 
     private business, to recruit, and prepare, and provide 
     professional development to, and help retain, school 
     principals and superintendents, especially for such 
     individuals who serve, or are preparing to serve, in high-
     poverty, low-performing schools and local educational 
     agencies: Provided further, That such activities may be 
     undertaken in consortium with other States: Provided further, 
     That of the funds appropriated for part B of title II of the 
     Elementary and Secondary Education Act of 1965, $45,000,000 
     shall be available to States and allocated in accordance with 
     section 2202(b) of that Act (except that the requirements of 
     section 2203 shall not apply): Provided further, That 
     notwithstanding any other provision of law, each State shall 
     use the amount made available under the preceding proviso to 
     support efforts to meet the requirements for State 
     eligibility for the Ed-Flex Partnership Act of 1999 or the 
     requirements under section 1111 of title I of the Elementary 
     and Secondary Education Act of 1965: Provided further, That 
     $44,000,000 shall be available for national activities under 
     section 2102 of the Elementary and Secondary Education Act of 
     1965: Provided further, That of the amount available in the 
     preceding proviso, $3,000,000 shall be made available to the 
     Secretary for the Troops-to-Teachers Program for transfer to 
     the Defense Activity for Non-Traditional Education Support of 
     the Department of Defense: Provided further, That the funds 
     transferred under the preceding proviso shall be used by the 
     Secretary of Defense to administer the Troops-to-Teachers 
     Program, including the selection of participants in the 
     Program under the Troops-to-Teachers Program Act of 1999 
     (title XVII of Public Law 106-65; 20 U.S.C. 9301 et seq.): 
     Provided further, That for purposes of sections 1702(b) and 
     (c) of the Troops-to-Teachers Program Act of 1999, the 
     Secretary of Education shall be the administering Secretary 
     and may, at the Secretary's discretion, carry out the 
     activities under section

[[Page 26680]]

     1702(c) of that Act and retain a portion of the funds made 
     available for the Troops-to-Teachers Program to carry out 
     section 1702(b) and (c) of that Act: Provided further, That 
     of the amount made available under this heading for national 
     activities under section 2102 of the Elementary and Secondary 
     Education Act of 1965, the Secretary is authorized to use a 
     portion of such funds to carry out activities to improve the 
     knowledge and skills of early childhood educators and 
     caregivers who work in urban or rural communities with high 
     concentrations of young children living in poverty: Provided 
     further, That of the amount appropriated, $3,208,000,000 
     shall be for title VI of the Elementary and Secondary 
     Education Act of 1965 and to carry out activities under part 
     B of the Individuals with Disabilities Education Act (20 
     U.S.C. 1411 et seq.): Provided further, That of the amount 
     made available for title VI, $1,623,000,000 shall be 
     available, notwithstanding any other provision of law, in 
     accordance with section 306 of this Act in order to reduce 
     class size, particularly in the early grades, using highly 
     qualified teachers to improve educational achievement for 
     regular and special needs children: Provided further, That of 
     the amount made available for title VI, $1,200,000,000 shall 
     be available, notwithstanding any other provision of law, for 
     grants for school repair and renovation, activities under 
     part B of the Individuals with Disabilities Education Act (20 
     U.S.C. 1411 et seq.), and technology activities, in 
     accordance with section 321 of this Act: Provided further, 
     That funds made available under this heading to carry out 
     section 6301(b) of the Elementary and Secondary Education Act 
     of 1965 shall be available for education reform projects that 
     provide same gender schools and classrooms, consistent with 
     applicable law: Provided further, That of the amount made 
     available to carry out activities authorized under part C of 
     title IX of the Elementary and Secondary Education Act of 
     1965, $1,000,000 shall be for the Alaska Humanities Forum for 
     operation of the Rose student exchange program and $1,000,000 
     shall be for the Alaska Native Heritage Center to support its 
     program of cultural education activities: Provided further, 
     That of the amount made available for subpart 2 of part A of 
     title IV of the Elementary and Secondary Education Act of 
     1965, $10,000,000, to remain available until expended, shall 
     be for Project School Emergency Response to Violence to 
     provide education-related services to local educational 
     agencies in which the learning environment has been disrupted 
     due to a violent or traumatic crisis.


                           reading excellence

       For necessary expenses to carry out the Reading Excellence 
     Act, $91,000,000, which shall become available on July 1, 
     2001 and shall remain available through September 30, 2002 
     and $195,000,000 which shall become available on October 1, 
     2001 and remain available through September 30, 2002.


                            Indian Education

       For expenses necessary to carry out, to the extent not 
     otherwise provided, title IX, part A of the Elementary and 
     Secondary Education Act of 1965, as amended, $115,500,000.


                   Bilingual and Immigrant Education

       For carrying out, to the extent not otherwise provided, 
     bilingual, foreign language and immigrant education 
     activities authorized by parts A and C and section 7203 of 
     title VII of the Elementary and Secondary Education Act of 
     1965, $460,000,000: Provided, That State educational agencies 
     may use all, or any part of, their part C allocation for 
     competitive grants to local educational agencies.


                           special education

       For carrying out the Individuals with Disabilities 
     Education Act, $7,439,948,000, of which $2,090,452,000 shall 
     become available for obligation on July 1, 2001, and shall 
     remain available through September 30, 2002, and of which 
     $5,072,000,000 shall become available on October 1, 2001 and 
     shall remain available through September 30, 2002, for 
     academic year 2001-2002: Provided, That $9,500,000 shall be 
     for Recording for the Blind and Dyslexic to support the 
     development, production, and circulation of recorded 
     educational materials: Provided further, That $1,500,000 
     shall be for the recipient of funds provided by Public Law 
     105-78 under section 687(b)(2)(G) of the Act to provide 
     information on diagnosis, intervention, and teaching 
     strategies for children with disabilities: Provided further, 
     That $7,353,000 of the funds for section 672 of the Act shall 
     be available for the projects and in the amounts specified in 
     the statement of the managers on the conference report 
     accompanying this Act.


            Rehabilitation Services and Disability Research

       For carrying out, to the extent not otherwise provided, the 
     Rehabilitation Act of 1973, the Assistive Technology Act of 
     1998, and the Helen Keller National Center Act, 
     $2,805,339,000: Provided, That the funds provided for title I 
     of the Assistive Technology Act of 1998 (``the AT Act'') 
     shall be allocated notwithstanding section 105(b)(1) of the 
     AT Act: Provided further, That each State shall be provided 
     $50,000 for activities under section 102 of the AT Act: 
     Provided further, That $15,000,000 shall be used to support 
     grants for up to three years to States under title III of the 
     AT Act, of which the Federal share shall not exceed 75 
     percent in the first year, 50 percent in the second year, and 
     25 percent in the third year, and that the requirements in 
     section 301(c)(2) and section 302 of that Act shall not apply 
     to such grants: Provided further, That $4,600,000 of the 
     funds for section 303 of the Rehabilitation Act of 1973 shall 
     be available for the projects and in the amounts specified in 
     the statement of the managers on the conference report 
     accompanying this Act: Provided further, That $400,000 of the 
     funds for title II of the Rehabilitation Act of 1973 shall be 
     for the Cerebral Palsy Research Foundation in Wichita, Kansas 
     for the establishment of a Rehabilitation Research and 
     Training Center to study and recommend incentives for 
     employers to hire persons with significant disabilities.

           Special Institutions for Persons With Disabilities


                 american printing house for the blind

       For carrying out the Act of March 3, 1879, as amended (20 
     U.S.C. 101 et seq.), $12,000,000.


               national technical institute for the deaf

       For the National Technical Institute for the Deaf under 
     titles I and II of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4301 et seq.), $53,376,000, of which $5,376,000 shall 
     be for construction and shall remain available until 
     expended: Provided, That from the total amount available, the 
     Institute may at its discretion use funds for the endowment 
     program as authorized under section 207.


                          gallaudet university

       For the Kendall Demonstration Elementary School, the Model 
     Secondary School for the Deaf, and the partial support of 
     Gallaudet University under titles I and II of the Education 
     of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.), 
     $89,400,000: Provided, That from the total amount available, 
     the University may at its discretion use funds for the 
     endowment program as authorized under section 207.


                     Vocational and Adult Education

       For carrying out, to the extent not otherwise provided, the 
     Carl D. Perkins Vocational and Technical Education Act, the 
     Adult Education and Family Literacy Act, and title VIII-D of 
     the Higher Education Act of 1965, as amended, and Public Law 
     102-73, $1,825,600,000, of which $1,000,000 shall remain 
     available until expended, and of which $1,028,000,000 shall 
     become available on July 1, 2001 and shall remain available 
     through September 30, 2002 and of which $791,000,000 shall 
     become available on October 1, 2001 and shall remain 
     available through September 30, 2002: Provided, That of the 
     amounts made available for the Carl D. Perkins Vocational and 
     Technical Education Act, $5,600,000 shall be for tribally 
     controlled postsecondary vocational and technical 
     institutions under section 117: Provided further, That 
     $9,000,000 shall be for carrying out section 118 of such Act: 
     Provided further, That of the amounts made available for the 
     Carl D. Perkins Vocational and Technical Education Act, 
     $5,000,000 shall be for demonstration activities authorized 
     by section 207: Provided further, That of the amount provided 
     for Adult Education State Grants, $70,000,000 shall be made 
     available for integrated English literacy and civics 
     education services to immigrants and other limited English 
     proficient populations: Provided further, That of the amount 
     reserved for integrated English literacy and civics 
     education, notwithstanding section 211 of the Adult Education 
     and Family Literacy Act, 65 percent shall be allocated to 
     States based on a State's absolute need as determined by 
     calculating each State's share of a 10-year average of the 
     Immigration and Naturalization Service data for immigrants 
     admitted for legal permanent residence for the 10 most recent 
     years, and 35 percent allocated to States that experienced 
     growth as measured by the average of the 3 most recent years 
     for which Immigration and Naturalization Service data for 
     immigrants admitted for legal permanent residence are 
     available, except that no State shall be allocated an amount 
     less than $60,000: Provided further, That of the amounts made 
     available for the Adult Education and Family Literacy Act, 
     $14,000,000 shall be for national leadership activities under 
     section 243 and $6,500,000 shall be for the National 
     Institute for Literacy under section 242: Provided further, 
     That $22,000,000 shall be for Youth Offender Grants, of which 
     $5,000,000 shall be used in accordance with section 601 of 
     Public Law 102-73 as that section was in effect prior to the 
     enactment of Public Law 105-220.


                      Student Financial Assistance

       For carrying out subparts 1, 3 and 4 of part A, section 
     428K, part C and part E of title IV of the Higher Education 
     Act of 1965, as amended, $10,674,000,000, which shall remain 
     available through September 30, 2002.
       The maximum Pell Grant for which a student shall be 
     eligible during award year 2001-2002 shall be $3,750: 
     Provided, That notwithstanding section 401(g) of the Act, if 
     the Secretary determines, prior to publication of the payment 
     schedule for such award year, that the amount included within 
     this appropriation for Pell Grant awards in such award year, 
     and any funds available from the fiscal year 2000 
     appropriation for Pell Grant awards, are insufficient to 
     satisfy fully all such awards for which students are 
     eligible, as calculated under section 401(b) of the Act, the 
     amount paid for each such award shall be reduced by either a 
     fixed or variable percentage, or by a fixed dollar amount, as 
     determined in accordance with a schedule of reductions 
     established by the Secretary for this purpose.


             Federal Family Education Loan Program Account

       For Federal administrative expenses to carry out guaranteed 
     student loans authorized by title IV, part B, of the Higher 
     Education Act of 1965, as amended, $48,000,000.


                            higher education

       For carrying out, to the extent not otherwise provided, 
     section 121 and titles II, III, IV, V, VI,

[[Page 26681]]

     and VII of the Higher Education Act of 1965, as amended, 
     section 1543 of the Higher Education Amendments of 1992 and 
     title VIII of the Higher Education Amendments of 1998, and 
     the Mutual Educational and Cultural Exchange Act of 1961, 
     $1,911,710,000, of which $10,000,000 for interest subsidies 
     authorized by section 121 of the Higher Education Act of 
     1965, shall remain available until expended: Provided, That 
     $10,000,000, to remain available through September 30, 2002, 
     shall be available to fund fellowships for academic year 
     2002-2003 under part A, subpart 1 of title VII of said Act, 
     under the terms and conditions of part A, subpart 1: Provided 
     further, That $3,000,000 is for data collection and 
     evaluation activities for programs under the Higher Education 
     Act of 1965, including such activities needed to comply with 
     the Government Performance and Results Act of 1993: Provided 
     further, That $15,000,000 shall be available for tribally 
     controlled colleges and universities under section 316 of the 
     Higher Education Act of 1965, of which $5,000,000 shall be 
     used for construction and renovation: Provided further, That 
     $250,000 shall be for the Web-Based Education Commission to 
     continue activities authorized under part J of title VIII of 
     the Higher Education Amendments of 1998: Provided further, 
     That $115,487,000 of the funds for part B of title VII of the 
     Higher Education Act of 1965 shall be available for the 
     projects and in the amounts specified in the statement of the 
     managers on the conference report accompanying this Act.


                           howard university

       For partial support of Howard University (20 U.S.C. 121 et 
     seq.), $232,474,000, of which not less than $3,600,000 shall 
     be for a matching endowment grant pursuant to the Howard 
     University Endowment Act (Public Law 98-480) and shall remain 
     available until expended.


         College Housing and Academic Facilities Loans Program

       For Federal administrative expenses authorized under 
     section 121 of the Higher Education Act of 1965, $762,000 to 
     carry out activities related to existing facility loans 
     entered into under the Higher Education Act of 1965.


  Historically Black College and University Capital Financing Program 
                                Account

       The total amount of bonds insured pursuant to section 344 
     of title III, part D of the Higher Education Act of 1965 
     shall not exceed $357,000,000, and the cost, as defined in 
     section 502 of the Congressional Budget Act of 1974, of such 
     bonds shall not exceed zero.
       For administrative expenses to carry out the Historically 
     Black College and University Capital Financing Program 
     entered into pursuant to title III, part D of the Higher 
     Education Act of 1965, as amended, $208,000.


            Education Research, Statistics, and Improvement

       For carrying out activities authorized by the Educational 
     Research, Development, Dissemination, and Improvement Act of 
     1994, including part E; the National Education Statistics Act 
     of 1994, including sections 411 and 412; section 2102 of 
     title II, parts A, B, K, and L and sections 10102 and 10601 
     of title X, and part C of title XIII of the Elementary and 
     Secondary Education Act of 1965, as amended, and title VI of 
     Public Law 103-227, $732,721,000: Provided, That of the funds 
     appropriated for part A of title X of the Elementary and 
     Secondary Education Act of 1965, as amended, $5,000,000 shall 
     be made available for a high school reform program of grants 
     to State educational agencies to improve academic performance 
     and provide technical skills training: Provided further, That 
     of the funds appropriated for part A of title X of the 
     Elementary and Secondary Education Act of 1965, as amended, 
     $5,000,000 shall be made available to carry out part L of 
     title X of the Act: Provided further, That of the amount 
     available for part A of title X of the Elementary and 
     Secondary Education Act of 1965, as amended, $5,000,000 shall 
     be available for grants to State and local educational 
     agencies, in collaboration with other agencies and 
     organizations, for school dropout prevention programs 
     designed to address the needs of populations or communities 
     with the highest dropout rates: Provided further, That of the 
     amount made available for part A of title X of the Elementary 
     and Secondary Education Act of 1965, as amended, $50,000,000 
     shall be made available to enable the Secretary of Education 
     to award grants to develop, implement, and strengthen 
     programs to teach American history (not social studies) as a 
     separate subject within school curricula: Provided further, 
     That $53,000,000 of the amount available for the national 
     education research institutes shall be allocated 
     notwithstanding section 912(m)(1)(B-F) and subparagraphs (B) 
     and (C) of section 931(c)(2) of Public Law 103-227 and 
     $20,000,000 of that $53,000,000 shall be made available for 
     the Interagency Education Research Initiative: Provided 
     further, That of the funds appropriated for part A of title X 
     of the Elementary and Secondary Education Act, as amended, 
     $50,000,000 shall be available to demonstrate effective 
     approaches to comprehensive school reform, to be allocated 
     and expended in accordance with the instructions relating to 
     this activity in the statement of managers on the conference 
     report accompanying Public Law 105-78 and in the statement of 
     the managers on the conference report accompanying Public Law 
     105-277: Provided further, That the funds made available for 
     comprehensive school reform shall become available on July 1, 
     2001, and remain available through September 30, 2002, and in 
     carrying out this initiative, the Secretary and the States 
     shall support only approaches that show the most promise of 
     enabling children to meet challenging State content standards 
     and challenging State student performance standards based on 
     reliable research and effective practices, and include an 
     emphasis on basic academics and parental involvement: 
     Provided further, That $139,624,000 of the funds for section 
     10101 of the Elementary and Secondary Education Act of 1965 
     shall be available for the projects and in the amounts 
     specified in the statement of the managers on the conference 
     report accompanying this Act: Provided further, That of the 
     funds appropriated under section 10601 of title X of the 
     Elementary and Secondary Education Act of 1965, as amended, 
     $2,000,000 shall be used to conduct a violence prevention 
     demonstration program: Provided further, That of the funds 
     available for section 10601 of title X of the Elementary and 
     Secondary Education Act of 1965, as amended, $150,000 shall 
     be awarded to the Center for Educational Technologies to 
     complete production and distribution of an effective CD-ROM 
     product that would complement the ``We the People: The 
     Citizen and the Constitution'' curriculum: Provided further, 
     That, of the funds for title VI of Public Law 103-227 and 
     notwithstanding the provisions of section 601(c)(1)(C) of 
     that Act, $1,200,000 shall be available to the Center for 
     Civic Education to conduct a civic education program with 
     Northern Ireland and the Republic of Ireland and, consistent 
     with the civics and Government activities authorized in 
     section 601(c)(3) of Public Law 103-227, to provide civic 
     education assistance to democracies in developing countries. 
     The term ``developing countries'' shall have the same meaning 
     as the term ``developing country'' in the Education for the 
     Deaf Act.

                        Departmental Management


                         Program Administration

       For carrying out, to the extent not otherwise provided, the 
     Department of Education Organization Act, including rental of 
     conference rooms in the District of Columbia and hire of two 
     passenger motor vehicles, $413,184,000.


                        Office for Civil Rights

       For expenses necessary for the Office for Civil Rights, as 
     authorized by section 203 of the Department of Education 
     Organization Act, $76,000,000.


                    Office of the Inspector General

       For expenses necessary for the Office of the Inspector 
     General, as authorized by section 212 of the Department of 
     Education Organization Act, $36,500,000.

                           GENERAL PROVISIONS

       Sec. 301. No funds appropriated in this Act may be used for 
     the transportation of students or teachers (or for the 
     purchase of equipment for such transportation) in order to 
     overcome racial imbalance in any school or school system, or 
     for the transportation of students or teachers (or for the 
     purchase of equipment for such transportation) in order to 
     carry out a plan of racial desegregation of any school or 
     school system.
       Sec. 302. None of the funds contained in this Act shall be 
     used to require, directly or indirectly, the transportation 
     of any student to a school other than the school which is 
     nearest the student's home, except for a student requiring 
     special education, to the school offering such special 
     education, in order to comply with title VI of the Civil 
     Rights Act of 1964. For the purpose of this section an 
     indirect requirement of transportation of students includes 
     the transportation of students to carry out a plan involving 
     the reorganization of the grade structure of schools, the 
     pairing of schools, or the clustering of schools, or any 
     combination of grade restructuring, pairing or clustering. 
     The prohibition described in this section does not include 
     the establishment of magnet schools.
       Sec. 303. No funds appropriated under this Act may be used 
     to prevent the implementation of programs of voluntary prayer 
     and meditation in the public schools.


                          (transfer of funds)

       Sec. 304. Not to exceed 1 percent of any discretionary 
     funds (pursuant to the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended) which are appropriated for 
     the Department of Education in this Act may be transferred 
     between appropriations, but no such appropriation shall be 
     increased by more than 3 percent by any such transfer: 
     Provided, That the Appropriations Committees of both Houses 
     of Congress are notified at least 15 days in advance of any 
     transfer.
       Sec. 305. The Comptroller General of the United States 
     shall evaluate the extent to which funds made available under 
     part A of title I of the Elementary and Secondary Education 
     Act of 1965 are allocated to schools and local educational 
     agencies with the greatest concentrations of school-age 
     children from low-income families, the extent to which 
     allocations of such funds adjust to shifts in concentrations 
     of pupils from low-income families in different regions, 
     States, and substate areas, the extent to which the 
     allocation of such funds encourages the targeting of State 
     funds to areas with higher concentrations of children from 
     low-income families, and the implications of current 
     distribution methods for such funds, shall make formula and 
     other policy recommendations to improve the targeting of such 
     funds to more effectively serve low-income children in both 
     rural and urban areas, and shall prepare interim and final 
     reports based on the results of the study, to be submitted to 
     Congress not later than February 1, 2001, and April 1, 2001.
       Sec. 306. (a) From the amount appropriated for title VI of 
     the Elementary and Secondary Education Act of 1965 in 
     accordance with this section, the Secretary of Education--

[[Page 26682]]

       (1) shall make available a total of $6,000,000 to the 
     Secretary of the Interior (on behalf of the Bureau of Indian 
     Affairs) and the outlying areas for activities under this 
     section; and
       (2) shall allocate the remainder by providing each State 
     the same percentage of that remainder as it received of the 
     funds allocated to States under section 307(a)(2) of the 
     Department of Education Appropriations Act, 1999.
       (b)(1) Each State that receives funds under this section 
     shall distribute 100 percent of such funds to local 
     educational agencies, of which--
       (A) 80 percent of such amount shall be allocated to such 
     local educational agencies in proportion to the number of 
     children, aged 5 to 17, who reside in the school district 
     served by such local educational agency from families with 
     incomes below the poverty line (as defined by the Office of 
     Management and Budget and revised annually in accordance with 
     section 673(2) of the Community Services Block Grant Act (42 
     U.S.C. 9902(2))) applicable to a family of the size involved 
     for the most recent fiscal year for which satisfactory data 
     are available compared to the number of such individuals who 
     reside in the school districts served by all the local 
     educational agencies in the State for that fiscal year; and
       (B) 20 percent of such amount shall be allocated to such 
     local educational agencies in accordance with the relative 
     enrollments of children, aged 5 to 17, in public and private 
     nonprofit elementary and secondary schools within the 
     boundaries of such agencies.
       (2) Notwithstanding paragraph (1), if the award to a local 
     educational agency under this section is less than the 
     starting salary for a new fully qualified teacher in that 
     agency, who is certified within the State (which may include 
     certification through State or local alternative routes), has 
     a baccalaureate degree, and demonstrates the general 
     knowledge, teaching skills, and subject matter knowledge 
     required to teach in his or her content areas, that agency 
     may use funds under this section to (A) help pay the salary 
     of a full- or part-time teacher hired to reduce class size, 
     which may be in combination with other Federal, State, or 
     local funds; or (B) pay for activities described in 
     subsection (c)(2)(A)(iii) which may be related to teaching in 
     smaller classes.
       (c)(1) The basic purpose and intent of this section is to 
     reduce class size with fully qualified teachers. Each local 
     educational agency that receives funds under this section 
     shall use such funds to carry out effective approaches to 
     reducing class size with fully qualified teachers who are 
     certified within the State, including teachers certified 
     through State or local alternative routes, and who 
     demonstrate competency in the areas in which they teach, to 
     improve educational achievement for both regular and special 
     needs children, with particular consideration given to 
     reducing class size in the early elementary grades for which 
     some research has shown class size reduction is most 
     effective.
       (2)(A) Each such local educational agency may use funds 
     under this section for--
       (i) recruiting (including through the use of signing 
     bonuses, and other financial incentives), hiring, and 
     training fully qualified regular and special education 
     teachers (which may include hiring special education teachers 
     to team-teach with regular teachers in classrooms that 
     contain both children with disabilities and non-disabled 
     children) and teachers of special-needs children who are 
     certified within the State, including teachers certified 
     through State or local alternative routes, have a 
     baccalaureate degree and demonstrate the general knowledge, 
     teaching skills, and subject matter knowledge required to 
     teach in their content areas;
       (ii) testing new teachers for academic content knowledge 
     and to meet State certification requirements that are 
     consistent with title II of the Higher Education Act of 1965; 
     and
       (iii) providing professional development (which may include 
     such activities as those described in section 2210 of the 
     Elementary and Secondary Education Act of 1965, opportunities 
     for teachers to attend multi-week institutes, such as those 
     made available during the summer months that provide 
     intensive professional development in partnership with local 
     educational agencies and initiatives that promote retention 
     and mentoring), to teachers, including special education 
     teachers and teachers of special-needs children, in order to 
     meet the goal of ensuring that all instructional staff have 
     the subject matter knowledge, teaching knowledge, and 
     teaching skills necessary to teach effectively in the content 
     area or areas in which they provide instruction, consistent 
     with title II of the Higher Education Act of 1965.
       (B)(i) Except as provided under clause (ii), a local 
     educational agency may use not more than a total of 25 
     percent of the award received under this section for 
     activities described in clauses (ii) and (iii) of 
     subparagraph (A).
       (ii) A local educational agency in which 10 percent or more 
     of teachers in elementary schools, as defined by section 
     14101(14) of the Elementary and Secondary Education Act of 
     1965, have not met applicable State and local certification 
     requirements (including certification through State or local 
     alternative routes), or if such requirements have been 
     waived, may use more than 25 percent of the funds it receives 
     under this section for activities described in subparagraph 
     (A)(iii) to help teachers who are not certified by the State 
     become certified, including through State or local 
     alternative routes, or to help teachers affected by class 
     size reduction who lack sufficient content knowledge to teach 
     effectively in the areas they teach to obtain that knowledge, 
     if the local educational agency notifies the State 
     educational agency of the percentage of the funds that it 
     will use for the purpose described in this clause.
       (C) A local educational agency that has already reduced 
     class size in the early grades to 18 or less children (or has 
     already reduced class size to a State or local class size 
     reduction goal that was in effect on the day before the 
     enactment of the Department of Education Appropriations Act, 
     2000, if that State or local educational agency goal is 20 or 
     fewer children) may use funds received under this section--
       (i) to make further class size reductions in grades 
     kindergarten through 3;
       (ii) to reduce class size in other grades; or
       (iii) to carry out activities to improve teacher quality 
     including professional development.
       (D) If a local educational agency has already reduced class 
     size in the early grades to 18 or fewer children and intends 
     to use funds provided under this section to carry out 
     professional development activities, including activities to 
     improve teacher quality, then the State shall make the award 
     under subsection (b) to the local educational agency.
       (3) Each such agency shall use funds under this section 
     only to supplement, and not to supplant, State and local 
     funds that, in the absence of such funds, would otherwise be 
     spent for activities under this section.
       (4) No funds made available under this section may be used 
     to increase the salaries or provide benefits, other than 
     participation in professional development and enrichment 
     programs, to teachers who are not hired under this section. 
     Funds under this section may be used to pay the salary of 
     teachers hired under section 307 of the Department of 
     Education Appropriations Act, 1999, or under section 310 of 
     the Department of Education Appropriations Act, 2000.
       (d)(1) Each State receiving funds under this section shall 
     report on activities in the State under this section, 
     consistent with section 6202(a)(2) of the Elementary and 
     Secondary Education Act of 1965.
       (2) Each State and local educational agency receiving funds 
     under this section shall publicly report to parents on its 
     progress in reducing class size, increasing the percentage of 
     classes in core academic areas taught by fully qualified 
     teachers who are certified within the State and demonstrate 
     competency in the content areas in which they teach, and on 
     the impact that hiring additional highly qualified teachers 
     and reducing class size, has had, if any, on increasing 
     student academic achievement.
       (3) Each school receiving funds under this section shall 
     provide to parents, upon request, the professional 
     qualifications of their child's teacher.
       (e) If a local educational agency uses funds made available 
     under this section for professional development activities, 
     the agency shall ensure for the equitable participation of 
     private nonprofit elementary and secondary schools in such 
     activities. Section 6402 of the Elementary and Secondary 
     Education Act of 1965 shall not apply to other activities 
     under this section.
       (f) A local educational agency that receives funds under 
     this section may use not more than 3 percent of such funds 
     for local administrative costs.
       (g) Each local educational agency that desires to receive 
     funds under this section shall include in the application 
     required under section 6303 of the Elementary and Secondary 
     Education Act of 1965 a description of the agency's program 
     to reduce class size by hiring additional highly qualified 
     teachers.
       (h) No funds under this section may be used to pay the 
     salary of any teacher hired with funds under section 307 of 
     the Department of Education Appropriations Act, 1999, unless, 
     by the start of the 2001-2002 school year, the teacher is 
     certified within the State (which may include certification 
     through State or local alternative routes) and demonstrates 
     competency in the subject areas in which he or she teaches.
       (i) Not later than 30 days after the date of the enactment 
     of this Act, the Secretary shall provide specific 
     notification to each local educational agency eligible to 
     receive funds under this part regarding the flexibility 
     provided under subsection (c)(2)(B)(ii) and the ability to 
     use such funds to carry out activities described in 
     subsection (c)(2)(A)(iii).
       Sec. 307. Section 412 of the National Education Statistics 
     Act of 1994 (Public Law 103-382) is amended--
       (1) in subsection 412(c)(1), after ``period of'' and before 
     ``years,'', by striking ``3'' and inserting ``4''; and
       (2) after ``expiration of such term.'', by adding the 
     following new subsection:
       ``(4) Conforming provision.--Members of the Board 
     previously granted 3 year terms, whose terms are in effect on 
     the date of enactment of the Department of Education 
     Appropriations Act, 2001, shall have their terms extended by 
     one year.''.
       Sec. 308. (a) Section 435(a)(2) of the Higher Education Act 
     of 1965 (20 U.S.C. 1085(a)(2)) is amended by adding at the 
     end thereof the following new subparagraph:
       ``(D) Notwithstanding the first sentence of subparagraph 
     (A), the Secretary shall restore the eligibility to 
     participate in a program under subpart 1 of part A, part B, 
     or part D of an institution that did not appeal its loss of 
     eligibility within 30 days of receiving notification if the 
     Secretary determines, on a case-by-case basis, that the 
     institution's failure to appeal was substantially justified 
     under the circumstances, and that--
       ``(i) the institution made a timely request that the 
     appropriate guaranty agency correct errors

[[Page 26683]]

     in the draft data used to calculate the institution's cohort 
     default rate;
       ``(ii) the guaranty agency did not correct the erroneous 
     data in a timely fashion; and
       ``(iii) the institution would have been eligible if the 
     erroneous data had been corrected by the guaranty agency.''.
       (b) The amendment made by subsection (a) of this section 
     shall be effective for cohort default rate calculations for 
     fiscal years 1997 and 1998.
       Sec. 309. Section 439(r)(2) of the Higher Education Act of 
     1965 (20 U.S.C. 1087-2(r)(2)) is amended--
       (1) in clause (A)(i), by striking ``auditors and 
     examiners'' and inserting ``and fix the compensation of such 
     auditors and examiners as may be necessary''; and
       (2) by inserting at the end of subparagraph (E) the 
     following new subparagraph:
       ``(F) Compensation of auditors and examiners.--
       ``(i) Rates of pay.--Rates of basic pay for all auditors 
     and examiners appointed pursuant to subparagraph (A) may be 
     set and adjusted by the Secretary of the Treasury without 
     regard to the provisions of chapter 51 or subchapter III of 
     chapter 53 of title 5, United States Code.
       ``(ii) Comparability.--

       ``(I) In general.--Subject to section 5373 of title 5, 
     United States Code, the Secretary of the Treasury may provide 
     additional compensation and benefits to auditors and 
     examiners appointed pursuant to subparagraph (A) if the same 
     type of compensation or benefits are then being provided by 
     any agency referred to in section 1206 of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 1833b) or, if not then being provided, could be 
     provided by such an agency under applicable provisions of 
     law, rule, or regulation.
       ``(II) Consultation.--In setting and adjusting the total 
     amount of compensation and benefits for auditors and 
     examiners appointed pursuant to subparagraph (A), the 
     Secretary of the Treasury shall consult with, and seek to 
     maintain comparability with, the agencies referred to in 
     section 1206 of the Financial Institutions Reform, Recovery, 
     and Enforcement Act of 1989 (12 U.S.C. 1833b).''.

       Sec. 310. Section 117(i) of the Carl D. Perkins Vocational 
     and Technical Education Act of 1998 (20 U.S.C. 2327(i)) is 
     amended by inserting ``such sums as may be necessary for'' 
     before ``each of the 4 succeeding fiscal years.''.
       Sec. 311. Section 432(m)(1) of the Higher Education Act of 
     1965 (20 U.S.C. 1082(m)(1)) is amended--
       (1) by striking clause (iv) of subparagraph (D); and
       (2) by adding at the end the following new subparagraph:
       ``(E) Perfection of security interests in student loans.--
       ``(i) In general.--Notwithstanding the provisions of any 
     State law to the contrary, including the Uniform Commercial 
     Code as in effect in any State, a security interest in loans 
     made under this part, on behalf of any eligible lender (as 
     defined in section 435(d)) shall attach, be perfected, and be 
     assigned priority in the manner provided by the applicable 
     State's law for perfection of security interests in accounts, 
     as such law may be amended from time to time (including 
     applicable transition provisions). If any such State's law 
     provides for a statutory lien to be created in such loans, 
     such statutory lien may be created by the entity or entities 
     governed by such State law in accordance with the applicable 
     statutory provisions that created such a statutory lien.
       ``(ii) Collateral description.--In addition to any other 
     method for describing collateral in a legally sufficient 
     manner permitted under the laws of the State, the description 
     of collateral in any financing statement filed pursuant to 
     this subparagraph shall be deemed legally sufficient if it 
     lists such loans, or refers to records (identifying such 
     loans) retained by the secured party or any designee of the 
     secured party identified in such financing statement, 
     including the debtor or any loan servicer.
       ``(iii) Sales.--Notwithstanding clauses (i) and (ii) and 
     any provisions of any State law to the contrary, other than 
     any such State's law providing for creation of a statutory 
     lien, an outright sale of loans made under this part shall be 
     effective and perfected automatically upon attachment as 
     defined in the Uniform Commercial Code of such State.''.
       Sec. 312. Section 435(a)(5) of the Higher Education Act of 
     1965 (20 U.S.C. 1085(a)(5)) is amended--
       (1) in subparagraph (A)(i), by striking ``July 1, 2002,'' 
     and inserting ``July 1, 2004,'';
       (2) in subparagraph (B), by striking ``1999, 2000, and 
     2001'' and inserting ``1999 through 2003''.
       Sec. 313. From the amounts made available for the ``Fund 
     for the Improvement of Education'' under the heading 
     ``Education Research, Statistics, and Improvement'', 
     $10,000,000, to remain available until expended, shall be 
     available to the Secretary of Education to be transferred to 
     the Secretary of the Interior for an award to the National 
     Constitution Center for construction activities authorized 
     under Public Law 100-433.
       Sec. 314. Section 4116(b)(4) of the Elementary and 
     Secondary Education Act of 1965 is amended by striking 
     subparagraph (D) and inserting in lieu thereof: ``(D) the 
     development and implementation of character education and 
     training programs that reflect the values of parents, 
     teachers, and local communities, and incorporate elements of 
     good character, including honesty, citizenship, courage, 
     justice, respect, personal responsibility, and 
     trustworthiness; and''.
       Sec. 315. The Secretary of Education shall review the 
     nursing program operated by Graceland University in Lamoni, 
     Iowa, and may exercise the waiver authority provided in 
     section 102(a)(3)(B) of the Higher Education Act of 1965, 
     without regard to the provisions of 34 CFR 600.7(b)(3)(ii), 
     if the Secretary determines that such a waiver is 
     appropriate.
       Sec. 316. Section 415 of the Higher Education Act of 1965 
     is amended--
       (1) in section 415A(a)(2), by striking ``section 415F'' and 
     inserting ``section 415E'';
       (2) in section 415E, by striking 415E(c) and inserting in 
     lieu thereof the following:
       ``(c) Authorized Activities.--Each State receiving a grant 
     under this section may use the grant funds for--
       ``(1) making awards that--
       ``(A) supplement grants received under section 415C(b)(2) 
     by eligible students who demonstrate financial need; or
       ``(B) provide grants under section 415C(b)(2) to additional 
     eligible students who demonstrate financial need;
       ``(2) providing scholarships for eligible students--
       ``(A) who demonstrate financial need; and
       ``(B) who--
       ``(i) desire to enter a program of study leading to a 
     career in--

       ``(I) information technology;
       ``(II) mathematics, computer science, or engineering;
       ``(III) teaching; or
       ``(IV) another field determined by the State to be critical 
     to the State's workforce needs; or

       ``(ii) demonstrate merit or academic achievement; and
       ``(3) making awards that--
       ``(A) supplement community service work-study awards 
     received under section 415C(b)(2) by eligible students who 
     demonstrate financial need; or
       ``(B) provide community service work-study awards under 
     section 415C(b)(2) to additional eligible students who 
     demonstrate financial need.''.
       (3) in section 415E, adding at the end the following new 
     subsections:
       ``(f) Special Rule.--Notwithstanding subsection (d), for 
     purposes of determining a State's share of the cost of the 
     authorized activities described in subsection (c), the State 
     shall consider only those expenditures from non-Federal 
     sources that exceed its total expenditures for need-based 
     grants, scholarships, and work-study assistance for fiscal 
     year 1999 (including any such assistance provided under this 
     subpart).
       ``(g) Use of Funds for Administrative Costs Prohibited.--A 
     State receiving a grant under this section shall not use any 
     of the grant funds to pay administrative costs associated 
     with any of the authorized activities described in subsection 
     (c).''.
       Sec. 317. (a) Section 402D of the Higher Education Act of 
     1965 (20 U.S.C. 1070a-14) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Special Rule.--
       ``(1) Use for student aid.--A recipient of a grant that 
     undertakes any of the permissible services identified in 
     subsection (b) may, in addition, use such funds to provide 
     grant aid to students. A grant provided under this paragraph 
     shall not exceed the maximum appropriated Pell Grant or, be 
     less than the minimum appropriated Pell Grant, for the 
     current academic year. In making grants to students under 
     this subsection, an institution shall ensure that adequate 
     consultation takes place between the student support service 
     program office and the institution's financial aid office.
       ``(2) Eligible students.--For purposes of receiving grant 
     aid under this subsection, eligible students shall be current 
     participants in the student support services program offered 
     by the institution and be--
       ``(A) students who are in their first 2 years of 
     postsecondary education and who are receiving Federal Pell 
     Grants under subpart 1; or
       ``(B) students who have completed their first 2 years of 
     postsecondary education and who are receiving Federal Pell 
     Grants under subpart 1 if the institution demonstrates to the 
     satisfaction of the Secretary that--
       ``(i) these students are at high risk of dropping out; and
       ``(ii) it will first meet the needs of all its eligible 
     first- and second-year students for services under this 
     paragraph.
       ``(3) Determination of need.--A grant provided to a student 
     under paragraph (1) shall not be considered in determining 
     that student's need for grant or work assistance under this 
     title, except that in no case shall the total amount of 
     student financial assistance awarded to a student under this 
     title exceed that student's cost of attendance, as defined in 
     section 472.
       ``(4) Matching required.--A recipient of a grant who uses 
     such funds for the purpose described in paragraph (1) shall 
     match the funds used for such purpose, in cash, from non-
     Federal funds, in an amount that is not less than 33 percent 
     of the total amount of funds used for that purpose. This 
     paragraph shall not apply to any grant recipient that is an 
     institution of higher education eligible to receive funds 
     under part A or B of title III or title V.
       ``(5) Reservation.--In no event may a recipient use more 
     than 20 percent of the funds received under this section for 
     grant aid.

[[Page 26684]]

       ``(6) Supplement, not supplant.--Funds received by a grant 
     recipient that are used under this subsection shall be used 
     to supplement, and not supplant, non-Federal funds expended 
     for student support services programs.''.
       (b) The amendments made by subsection (a) shall apply with 
     respect to student support services grants awarded on or 
     after the date of enactment of this Act.
       Sec. 318. (a) Subparagraph (B) of section 427A(c)(4) of the 
     Higher Education Act of 1965 (20 U.S.C. 1077a(c)(4)) is 
     amended to read as follows:
       ``(B)(i) For any 12-month period beginning on July 1 and 
     ending on or before June 30, 2001, the rate determined under 
     this subparagraph is determined on the preceding June 1 and 
     is equal to--
       ``(I) the bond equivalent rate of 52-week Treasury bills 
     auctioned at the final auction held prior to such June 1; 
     plus
       ``(II) 3.25 percent.
       ``(ii) For any 12-month period beginning on July 1 of 2001 
     or any succeeding year, the rate determined under this 
     subparagraph is determined on the preceding June 26 and is 
     equal to--
       ``(I) the weekly average 1-year constant maturity Treasury 
     yield, as published by the Board of Governors of the Federal 
     Reserve System, for the last calendar week ending on or 
     before such June 26; plus
       ``(II) 3.25 percent.''.
       (b) Subparagraph (A) of section 455(b)(4) of such Act (20 
     U.S.C. 1087e(b)(4)) is amended to read as follows:
       ``(A)(i) For Federal Direct PLUS Loans for which the first 
     disbursement is made on or after July 1, 1994, the applicable 
     rate of interest shall, during any 12-month period beginning 
     on July 1 and ending on or before June 30, 2001, be 
     determined on the preceding June 1 and be equal to--
       ``(I) the bond equivalent rate of 52-week Treasury bills 
     auctioned at final auction held prior to such June 1; plus
       ``(II) 3.1 percent,
     except that such rate shall not exceed 9 percent.
       ``(ii) For any 12-month period beginning on July 1 of 2001 
     or any succeeding year, the applicable rate of interest 
     determined under this subparagraph shall be determined on the 
     preceding June 26 and be equal to--
       ``(I) the weekly average 1-year constant maturity Treasury 
     yield, as published by the Board of Governors of the Federal 
     Reserve System, for the last calendar week ending on or 
     before such June 26; plus
       ``(II) 3.1 percent,
     except that such rate shall not exceed 9 percent.''.
       Sec. 319. Section 1543 of the Higher Education Amendments 
     of 1992 (20 U.S.C. 1070 note) is amended by adding at the end 
     the following new subsection:
       ``(e) Designation.--Scholarships awarded under this section 
     shall be known as `B. J. Stupak Olympic Scholarships'.''.
       Sec. 320. (a) Subject to subsection (c), the Secretary of 
     Education shall release the reversionary interests that were 
     retained by the United States, as part of the conveyance of 
     certain real property situated in the County of Marin, State 
     of California, in an April 3, 1978 Quitclaim Deed, which was 
     filed for record on June 5, 1978, in Book 3384, at page 33, 
     of the official Records of Marin County, California.
       (b) The Secretary shall execute the release of the 
     reversionary interests under subsection (a) without 
     consideration.
       (c) The Secretary shall execute and file in the appropriate 
     office or offices a deed of release, amended deed, or other 
     appropriate instruments effectuating the release of the 
     reversionary interests under subsection (a). In all other 
     respects the provisions of the April 3, 1978 Quitclaim Deed 
     shall remain intact.
       Sec. 321. (a) Grants to Native American Schools and State 
     Educational Agencies.--
       (1) Allocation of funds.--Of the amount made available 
     under the heading ``School improvement programs'' for grants 
     made in accordance with this section for school repair and 
     renovation, activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.), and 
     technology activities, the Secretary of Education shall 
     allocate--
       (A) $75,000,000 for grants to impacted local educational 
     agencies (as defined in paragraph (3)) for school repair, 
     renovation, and construction;
       (B) $3,250,000 for grants to outlying areas for school 
     repair and renovation in high-need schools and communities, 
     allocated on such basis, and subject to such terms and 
     conditions, as the Secretary determines appropriate;
       (C) $25,000,000 for grants to public entities, private 
     nonprofit entities, and consortia of such entities, for use 
     in accordance with subpart 2 of part C of title X of the 
     Elementary and Secondary Education Act of 1965; and
       (D) the remainder to State educational agencies in 
     proportion to the amount each State received under part A of 
     title I of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6311 et seq.) for fiscal year 2000, except that no 
     State shall receive less than 0.5 percent of the amount 
     allocated under this subparagraph.
       (2) Determination of grant amount.--
       (A) Determination of weighted student units.--For purposes 
     of computing the grant amounts under paragraph (1)(A) for 
     fiscal year 2001, the Secretary shall determine the results 
     obtained by the computation made under section 8003 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7703) with respect to children described in subsection 
     (a)(1)(C) of such section and computed under subsection 
     (a)(2)(B) of such section for such year--
       (i) for each impacted local educational agency that 
     receives funds under this section; and
       (ii) for all such agencies together.
       (B) Computation of payment.--For fiscal year 2001, the 
     Secretary shall calculate the amount of a grant to an 
     impacted local educational agency by--
       (i) dividing the amount described in paragraph (1)(A) by 
     the results of the computation described in subparagraph 
     (A)(ii); and
       (ii) multiplying the number derived under clause (i) by the 
     results of the computation described in subparagraph (A)(i) 
     for such agency.
       (3) Definition.--For purposes of this section, the term 
     ``impacted local educational agency'' means, for fiscal year 
     2001--
       (A) a local educational agency that receives a basic 
     support payment under section 8003(b) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703(b)) for such 
     fiscal year; and
       (B) with respect to which the number of children determined 
     under section 8003(a)(1)(C) of such Act for the preceding 
     school year constitutes at least 50 percent of the total 
     student enrollment in the schools of the agency during such 
     school year.
       (b) Within-State Allocations.--
       (1) Administrative costs.--
       (A) State educational agency administration.--Except as 
     provided in subparagraph (B), each State educational agency 
     may reserve not more than 1 percent of its allocation under 
     subsection (a)(1)(D) for the purpose of administering the 
     distribution of grants under this subsection.
       (B) State entity administration.--If the State educational 
     agency transfers funds to a State entity described in 
     paragraph (2)(A), the agency shall transfer to such entity 
     0.75 of the amount reserved under this paragraph for the 
     purpose of administering the distribution of grants under 
     this subsection.
       (2) Reservation for competitive school repair and 
     renovation grants to local educational agencies.--
       (A) In general.--Subject to the reservation under paragraph 
     (1), of the funds allocated to a State educational agency 
     under subsection (a)(1)(D), the State educational agency 
     shall distribute 75 percent of such funds to local 
     educational agencies or, if such State educational agency is 
     not responsible for the financing of education facilities, 
     the agency shall transfer such funds to the State entity 
     responsible for the financing of education facilities 
     (referred to in this section as the ``State entity'') for 
     distribution by such entity to local educational agencies in 
     accordance with this paragraph, to be used, consistent with 
     subsection (c), for school repair and renovation.
       (B) Competitive grants to local educational agencies.--
       (i) In general.--The State educational agency or State 
     entity shall carry out a program of competitive grants to 
     local educational agencies for the purpose described in 
     subparagraph (A). Of the total amount available for 
     distribution to such agencies under this paragraph, the State 
     educational agency or State entity, shall, in carrying out 
     the competition--

       (I) award to high poverty local educational agencies 
     described in clause (ii), in the aggregate, at least an 
     amount which bears the same relationship to such total amount 
     as the aggregate amount such local educational agencies 
     received under part A of title I of the Elementary and 
     Secondary Education Act of 1965 for fiscal year 2000 bears to 
     the aggregate amount received for such fiscal year under such 
     part by all local educational agencies in the State;
       (II) award to rural local educational agencies in the 
     State, in the aggregate, at least an amount which bears the 
     same relationship to such total amount as the aggregate 
     amount such rural local educational agencies received under 
     part A of title I of the Elementary and Secondary Education 
     Act of 1965 for fiscal year 2000 bears to the aggregate 
     amount received for such fiscal year under such part by all 
     local educational agencies in the State; and
       (III) award the remaining funds to local educational 
     agencies not receiving an award under subclause (I) or (II), 
     including high poverty and rural local educational agencies 
     that did not receive such an award.

       (ii) High poverty local educational agencies.--A local 
     educational agency is described in this clause if--

       (I) the percentage described in subparagraph (C)(i) with 
     respect to the agency is 30 percent or greater; or
       (II) the number of children described in such subparagraph 
     with respect to the agency is at least 10,000.

       (C) Criteria for awarding grants.--In awarding competitive 
     grants under this paragraph, a State educational agency or 
     State entity shall take into account the following criteria:
       (i) The percentage of poor children 5 to 17 years of age, 
     inclusive, in a local educational agency.
       (ii) The need of a local educational agency for school 
     repair and renovation, as demonstrated by the condition of 
     its public school facilities.
       (iii) The fiscal capacity of a local educational agency to 
     meet its needs for repair and renovation of public school 
     facilities without assistance under this section, including 
     its ability to raise funds through the use of local bonding 
     capacity and otherwise.
       (iv) In the case of a local educational agency that 
     proposes to fund a repair or renovation project for a charter 
     school or schools,

[[Page 26685]]

     the extent to which the school or schools have access to 
     funding for the project through the financing methods 
     available to other public schools or local educational 
     agencies in the State.
       (v) The likelihood that the local educational agency will 
     maintain, in good condition, any facility whose repair or 
     renovation is assisted under this section.
       (D) Possible matching requirement.--
       (i) In general.--A State educational agency or State entity 
     may require local educational agencies to match funds awarded 
     under this subsection.
       (ii) Match amount.--The amount of a match described in 
     clause (i) may be established by using a sliding scale that 
     takes into account the relative poverty of the population 
     served by the local educational agency.
       (3) Reservation for competitive idea or technology grants 
     to local educational agencies.--
       (A) In general.--Subject to the reservation under paragraph 
     (1), of the funds allocated to a State educational agency 
     under subsection (a)(1)(D), the State educational agency 
     shall distribute 25 percent of such funds to local 
     educational agencies through competitive grant processes, to 
     be used for the following:
       (i) To carry out activities under part B of the Individuals 
     with Disabilities Education Act (20 U.S.C. 1411 et seq.).
       (ii) For technology activities that are carried out in 
     connection with school repair and renovation, including--

       (I) wiring;
       (II) acquiring hardware and software;
       (III) acquiring connectivity linkages and resources; and
       (IV) acquiring microwave, fiber optics, cable, and 
     satellite transmission equipment.

       (B) Criteria for awarding idea grants.--In awarding 
     competitive grants under subparagraph (A) to be used to carry 
     out activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.), a State 
     educational agency shall take into account the following 
     criteria:
       (i) The need of a local educational agency for additional 
     funds for a student whose individually allocable cost for 
     expenses related to the Individuals with Disabilities 
     Education Act substantially exceeds the State's average per-
     pupil expenditure (as defined in section 14101(2) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8801(2))).
       (ii) The need of a local educational agency for additional 
     funds for special education and related services under part B 
     of the Individuals with Disabilities Education Act (20 U.S.C. 
     1411 et seq.).
       (iii) The need of a local educational agency for additional 
     funds for assistive technology devices (as defined in section 
     602 of the Individuals with Disabilities Education Act (20 
     U.S.C. 1401)) or assistive technology services (as so 
     defined) for children being served under part B of the 
     Individuals with Disabilities Education Act (20 U.S.C. 1411 
     et seq.).
       (iv) The need of a local educational agency for additional 
     funds for activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.) in order 
     for children with disabilities to make progress toward 
     meeting the performance goals and indicators established by 
     the State under section 612(a)(16) of such Act (20 U.S.C. 
     1412).
       (C) Criteria for awarding technology grants.--In awarding 
     competitive grants under subparagraph (A) to be used for 
     technology activities that are carried out in connection with 
     school repair and renovation, a State educational agency 
     shall take into account the need of a local educational 
     agency for additional funds for such activities, including 
     the need for the activities described in subclauses (I) 
     through (IV) of subparagraph (A)(ii).
       (c) Rules Applicable to School Repair and Renovation.--With 
     respect to funds made available under this section that are 
     used for school repair and renovation, the following rules 
     shall apply:
       (1) Permissible uses of funds.--School repair and 
     renovation shall be limited to one or more of the following:
       (A) Emergency repairs or renovations to public school 
     facilities only to ensure the health and safety of students 
     and staff, including--
       (i) repairing, replacing, or installing roofs, electrical 
     wiring, plumbing systems, or sewage systems;
       (ii) repairing, replacing, or installing heating, 
     ventilation, or air conditioning systems (including 
     insulation); and
       (iii) bringing public schools into compliance with fire and 
     safety codes.
       (B) School facilities modifications necessary to render 
     public school facilities accessible in order to comply with 
     the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 
     et seq.).
       (C) School facilities modifications necessary to render 
     public school facilities accessible in order to comply with 
     section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 
     794).
       (D) Asbestos abatement or removal from public school 
     facilities.
       (E) Renovation, repair, and acquisition needs related to 
     the building infrastructure of a charter school.
       (2) Impermissible uses of funds.--No funds received under 
     this section may be used for--
       (A) payment of maintenance costs in connection with any 
     projects constructed in whole or part with Federal funds 
     provided under this section;
       (B) the construction of new facilities, except for 
     facilities for an impacted local educational agency (as 
     defined in subsection (a)(3)); or
       (C) stadiums or other facilities primarily used for 
     athletic contests or exhibitions or other events for which 
     admission is charged to the general public.
       (3) Charter schools.--A public charter school that 
     constitutes a local educational agency under State law shall 
     be eligible for assistance under the same terms and 
     conditions as any other local educational agency (as defined 
     in section 14101(18) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8801(18))).
       (4) Supplement, not supplant.--Excluding the uses described 
     in subparagraphs (B) and (C) of paragraph (1), a local 
     educational agency shall use Federal funds subject to this 
     subsection only to supplement the amount of funds that would, 
     in the absence of such Federal funds, be made available from 
     non-Federal sources for school repair and renovation.
       (d) Special Rule.--Each local educational agency that 
     receives funds under this section shall ensure that, if it 
     carries out repair or renovation through a contract, any such 
     contract process ensures the maximum number of qualified 
     bidders, including small, minority, and women-owned 
     businesses, through full and open competition.
       (e) Public Comment.--Each local educational agency 
     receiving funds under paragraph (2) or (3) of subsection 
     (b)--
       (1) shall provide parents, educators, and all other 
     interested members of the community the opportunity to 
     consult on the use of funds received under such paragraph;
       (2) shall provide the public with adequate and efficient 
     notice of the opportunity described in paragraph (1) in a 
     widely read and distributed medium; and
       (3) shall provide the opportunity described in paragraph 
     (1) in accordance with any applicable State and local law 
     specifying how the comments may be received and how the 
     comments may be reviewed by any member of the public.
       (f) Reporting.--
       (1) Local reporting.--Each local educational agency 
     receiving funds under subsection (a)(1)(D) shall submit a 
     report to the State educational agency, at such time as the 
     State educational agency may require, describing the use of 
     such funds for--
       (A) school repair and renovation (and construction, in the 
     case of an impacted local educational agency (as defined in 
     subsection (a)(3)));
       (B) activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.); and
       (C) technology activities that are carried out in 
     connection with school repair and renovation, including the 
     activities described in subclauses (I) through (IV) of 
     subsection (b)(3)(A)(ii).
       (2) State reporting.--Each State educational agency shall 
     submit to the Secretary of Education, not later than December 
     31, 2002, a report on the use of funds received under 
     subsection (a)(1)(D) by local educational agencies for--
       (A) school repair and renovation (and construction, in the 
     case of an impacted local educational agency (as defined in 
     subsection (a)(3)));
       (B) activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.); and
       (C) technology activities that are carried out in 
     connection with school repair and renovation, including the 
     activities described in subclauses (I) through (IV) of 
     subsection (b)(3)(A)(ii).
       (3) Additional Reports.--Each entity receiving funds 
     allocated under subsection (a)(1)(A) or (B) shall submit to 
     the Secretary, not later than December 31, 2002, a report on 
     its uses of funds under this section, in such form and 
     containing such information as the Secretary may require.
       (g) Applicability of Part B of IDEA.--If a local 
     educational agency uses funds received under this section to 
     carry out activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.), such 
     part (including provisions respecting the participation of 
     private school children), and any other provision of law that 
     applies to such part, shall apply to such use.
       (h) Reallocation.--If a State educational agency does not 
     apply for an allocation of funds under subsection (a)(1)(D) 
     for fiscal year 2001, or does not use its entire allocation 
     for such fiscal year, the Secretary may reallocate the amount 
     of the State educational agency's allocation (or the 
     remainder thereof, as the case may be) to the remaining State 
     educational agencies in accordance with subsection (a)(1)(D).
       (i) Participation of Private Schools.--
       (1) In general.--Section 6402 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7372) shall apply 
     to subsection (b)(2) in the same manner as it applies to 
     activities under title VI of such Act, except that--
       (A) such section shall not apply with respect to the title 
     to any real property renovated or repaired with assistance 
     provided under this section;
       (B) the term ``services'' as used in section 6402 of such 
     Act with respect to funds under this section shall be 
     provided only to private, nonprofit elementary or secondary 
     schools with a rate of

[[Page 26686]]

     child poverty of at least 40 percent and may include for 
     purposes of subsection (b)(2) only--
       (i) modifications of school facilities necessary to meet 
     the standards applicable to public schools under the 
     Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et 
     seq.);
       (ii) modifications of school facilities necessary to meet 
     the standards applicable to public schools under section 504 
     of the Rehabilitation Act of 1973 (29 U.S.C. 794); and
       (iii) asbestos abatement or removal from school facilities; 
     and
       (C) notwithstanding the requirements of section 6402(b) of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7372(b)), expenditures for services provided using funds made 
     available under subsection (b)(2) shall be considered equal 
     for purposes of such section if the per-pupil expenditures 
     for services described in subparagraph (B) for students 
     enrolled in private nonprofit elementary and secondary 
     schools that have child poverty rates of at least 40 percent 
     are consistent with the per-pupil expenditures under this 
     section for children enrolled in the public schools in the 
     school district of the local educational agency receiving 
     funds under this section.
       (2) Remaining funds.--If the expenditure for services 
     described in paragraph (1)(B) is less than the amount 
     calculated under paragraph (1)(C) because of insufficient 
     need for such services, the remainder shall be available to 
     the local educational agency for renovation and repair of 
     public school facilities.
       (3) Application.--If any provision of this section, or the 
     application thereof, to any person or circumstances is 
     judicially determined to be invalid, the provisions of the 
     remainder of the section and the application to other persons 
     or circumstances shall not be affected thereby.
       (j) Definitions.--For purposes of this section:
       (1) Charter school.--The term ``charter school'' has the 
     meaning given such term in section 10310(1) of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 8066(1)).
       (2) Elementary school.--The term ``elementary school'' has 
     the meaning given such term in section 14101(14) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8801(14)).
       (3) Local educational agency.--The term ``local educational 
     agency'' has the meaning given such term in subparagraphs (A) 
     and (B) of section 14101(18) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8801(18)).
       (4) Outlying area.--The term ``outlying area'' has the 
     meaning given such term in section 14101(21) of the 
     Elementary and Secondary Act of 1965 (20 U.S.C. 8801(21)).
       (5) Poor children and child poverty.--The terms ``poor 
     children'' and ``child poverty'' refer to children 5 to 17 
     years of age, inclusive, who are from families with incomes 
     below the poverty line (as defined by the Office of 
     Management and Budget and revised annually in accordance with 
     section 673(2) of the Community Services Block Grant (42 
     U.S.C. 9902(2)) applicable to a family of the size involved 
     for the most recent fiscal year for which data satisfactory 
     to the Secretary are available.
       (6) Rural local educational agency.--The term ``rural local 
     educational agency'' means a local educational agency that 
     the State determines is located in a rural area using 
     objective data and a commonly employed definition of the term 
     ``rural''.
       (7) Secondary school.--The term ``secondary school'' has 
     the meaning given such term in section 14101(25) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8801(25)).
       (8) State.--The term ``State'' means each of the 50 states, 
     the District of Columbia, and the Commonwealth of Puerto 
     Rico.
       Sec. 322. (a) Part C of title X of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8061 et seq.) is 
     amended--
       (1) by inserting after the part heading the following:

           ``Subpart 1--Basic Charter School Grant Program'';

     and
       (2) by adding at the end the following:

 ``Subpart 2--Credit Enhancement Initiatives To Assist Charter School 
           Facility Acquisition, Construction, and Renovation

     ``SEC. 10321. PURPOSE.

       ``The purpose of this subpart is to provide one-time grants 
     to eligible entities to permit them to demonstrate innovative 
     credit enhancement initiatives that assist charter schools to 
     address the cost of acquiring, constructing, and renovating 
     facilities.

     ``SEC. 10322. GRANTS TO ELIGIBLE ENTITIES.

       ``(a) In General.--The Secretary shall use 100 percent of 
     the amount available to carry out this subpart to award not 
     less than 3 grants to eligible entities having applications 
     approved under this subpart to demonstrate innovative methods 
     of assisting charter schools to address the cost of 
     acquiring, constructing, and renovating facilities by 
     enhancing the availability of loans or bond financing.
       ``(b) Grantee Selection.--The Secretary shall evaluate each 
     application submitted, and shall make a determination of 
     which are sufficient to merit approval and which are not. The 
     Secretary shall award at least one grant to an eligible 
     entity described in section 10330(2)(A), at least one grant 
     to an eligible entity described in section 10330(2)(B), and 
     at least one grant to an eligible entity described in section 
     10330(2)(C), if applications are submitted that permit the 
     Secretary to do so without approving an application that is 
     not of sufficient quality to merit approval.
       ``(c) Grant Characteristics.--Grants under this subpart 
     shall be of a sufficient size, scope, and quality so as to 
     ensure an effective demonstration of an innovative means of 
     enhancing credit for the financing of charter school 
     acquisition, construction, or renovation.
       ``(d) Special Rule.--In the event the Secretary determines 
     that the funds available are insufficient to permit the 
     Secretary to award not less than 3 grants in accordance with 
     subsections (a) through (c), such 3-grant minimum and the 
     second sentence of subsection (b) shall not apply, and the 
     Secretary may determine the appropriate number of grants to 
     be awarded in accordance with subsection (c).

     ``SEC. 10323. APPLICATIONS.

       ``(a) In General.--To receive a grant under this subpart, 
     an eligible entity shall submit to the Secretary an 
     application in such form as the Secretary may reasonably 
     require.
       ``(b) Contents.--An application under subsection (a) shall 
     contain--
       ``(1) a statement identifying the activities proposed to be 
     undertaken with funds received under this subpart, including 
     how the applicant will determine which charter schools will 
     receive assistance, and how much and what types of assistance 
     charter schools will receive;
       ``(2) a description of the involvement of charter schools 
     in the application's development and the design of the 
     proposed activities;
       ``(3) a description of the applicant's expertise in capital 
     market financing;
       ``(4) a description of how the proposed activities will 
     leverage the maximum amount of private-sector financing 
     capital relative to the amount of government funding used and 
     otherwise enhance credit available to charter schools;
       ``(5) a description of how the applicant possesses 
     sufficient expertise in education to evaluate the likelihood 
     of success of a charter school program for which facilities 
     financing is sought;
       ``(6) in the case of an application submitted by a State 
     governmental entity, a description of the actions that the 
     entity has taken, or will take, to ensure that charter 
     schools within the State receive the funding they need to 
     have adequate facilities; and
       ``(7) such other information as the Secretary may 
     reasonably require.

     ``SEC. 10324. CHARTER SCHOOL OBJECTIVES.

       ``An eligible entity receiving a grant under this subpart 
     shall use the funds deposited in the reserve account 
     established under section 10325(a) to assist one or more 
     charter schools to access private sector capital to 
     accomplish one or both of the following objectives:
       ``(1) The acquisition (by purchase, lease, donation, or 
     otherwise) of an interest (including an interest held by a 
     third party for the benefit of a charter school) in improved 
     or unimproved real property that is necessary to commence or 
     continue the operation of a charter school.
       ``(2) The construction of new facilities, or the 
     renovation, repair, or alteration of existing facilities, 
     necessary to commence or continue the operation of a charter 
     school.

     ``SEC. 10325. RESERVE ACCOUNT.

       ``(a) Use of Funds.--To assist charter schools to 
     accomplish the objectives described in section 10324, an 
     eligible entity receiving a grant under this subpart shall, 
     in accordance with State and local law, directly or 
     indirectly, alone or in collaboration with others, deposit 
     the funds received under this subpart (other than funds used 
     for administrative costs in accordance with section 10326) in 
     a reserve account established and maintained by the entity 
     for this purpose. Amounts deposited in such account shall be 
     used by the entity for one or more of the following purposes:
       ``(1) Guaranteeing, insuring, and reinsuring bonds, notes, 
     evidences of debt, loans, and interests therein, the proceeds 
     of which are used for an objective described in section 
     10324.
       ``(2) Guaranteeing and insuring leases of personal and real 
     property for an objective described in section 10324.
       ``(3) Facilitating financing by identifying potential 
     lending sources, encouraging private lending, and other 
     similar activities that directly promote lending to, or for 
     the benefit of, charter schools.
       ``(4) Facilitating the issuance of bonds by charter 
     schools, or by other public entities for the benefit of 
     charter schools, by providing technical, administrative, and 
     other appropriate assistance (including the recruitment of 
     bond counsel, underwriters, and potential investors and the 
     consolidation of multiple charter school projects within a 
     single bond issue).
       ``(b) Investment.--Funds received under this subpart and 
     deposited in the reserve account shall be invested in 
     obligations issued or guaranteed by the United States or a 
     State, or in other similarly low-risk securities.
       ``(c) Reinvestment of Earnings.--Any earnings on funds 
     received under this subpart shall be deposited in the reserve 
     account established under subsection (a) and used in 
     accordance with such subsection.

     ``SEC. 10326. LIMITATION ON ADMINISTRATIVE COSTS.

       ``An eligible entity may use not more than 0.25 percent of 
     the funds received under this subpart for the administrative 
     costs of carrying out its responsibilities under this 
     subpart.

     ``SEC. 10327. AUDITS AND REPORTS.

       ``(a) Financial Record Maintenance and Audit.--The 
     financial records of each eligible entity receiving a grant 
     under this subpart shall be maintained in accordance with 
     generally accepted accounting principles and shall be subject 
     to an annual audit by an independent public accountant.
       ``(b) Reports.--

[[Page 26687]]

       ``(1) Grantee annual reports.--Each eligible entity 
     receiving a grant under this subpart annually shall submit to 
     the Secretary a report of its operations and activities under 
     this subpart.
       ``(2) Contents.--Each such annual report shall include--
       ``(A) a copy of the most recent financial statements, and 
     any accompanying opinion on such statements, prepared by the 
     independent public accountant reviewing the financial records 
     of the eligible entity;
       ``(B) a copy of any report made on an audit of the 
     financial records of the eligible entity that was conducted 
     under subsection (a) during the reporting period;
       ``(C) an evaluation by the eligible entity of the 
     effectiveness of its use of the Federal funds provided under 
     this subpart in leveraging private funds;
       ``(D) a listing and description of the charter schools 
     served during the reporting period;
       ``(E) a description of the activities carried out by the 
     eligible entity to assist charter schools in meeting the 
     objectives set forth in section 10324; and
       ``(F) a description of the characteristics of lenders and 
     other financial institutions participating in the activities 
     undertaken by the eligible entity under this subpart during 
     the reporting period.
       ``(3) Secretarial report.--The Secretary shall review the 
     reports submitted under paragraph (1) and shall provide a 
     comprehensive annual report to the Congress on the activities 
     conducted under this subpart.

     ``SEC. 10328. NO FULL FAITH AND CREDIT FOR GRANTEE 
                   OBLIGATIONS.

       ``No financial obligation of an eligible entity entered 
     into pursuant to this subpart (such as an obligation under a 
     guarantee, bond, note, evidence of debt, or loan) shall be an 
     obligation of, or guaranteed in any respect by, the United 
     States. The full faith and credit of the United States is not 
     pledged to the payment of funds which may be required to be 
     paid under any obligation made by an eligible entity pursuant 
     to any provision of this subpart.

     ``SEC. 10329. RECOVERY OF FUNDS.

       ``(a) In General.--The Secretary, in accordance with 
     chapter 37 of title 31, United States Code, shall collect--
       ``(1) all of the funds in a reserve account established by 
     an eligible entity under section 10325(a) if the Secretary 
     determines, not earlier than 2 years after the date on which 
     the entity first received funds under this subpart, that the 
     entity has failed to make substantial progress in carrying 
     out the purposes described in section 10325(a); or
       ``(2) all or a portion of the funds in a reserve account 
     established by an eligible entity under section 10325(a) if 
     the Secretary determines that the eligible entity has 
     permanently ceased to use all or a portion of the funds in 
     such account to accomplish any purpose described in section 
     10325(a).
       ``(b) Exercise of Authority.--The Secretary shall not 
     exercise the authority provided in subsection (a) to collect 
     from any eligible entity any funds that are being properly 
     used to achieve one or more of the purposes described in 
     section 10325(a).
       ``(c) Procedures.--The provisions of sections 451, 452, and 
     458 of the General Education Provisions Act (20 U.S.C. 1234 
     et seq.) shall apply to the recovery of funds under 
     subsection (a).
       ``(d) Construction.--This section shall not be construed to 
     impair or affect the authority of the Secretary to recover 
     funds under part D of the General Education Provisions Act 
     (20 U.S.C. 1234 et seq.).

     ``SEC. 10330. DEFINITIONS.

       ``In this subpart:
       ``(1) The term `charter school' has the meaning given such 
     term in section 10310.
       ``(2) The term `eligible entity' means--
       ``(A) a public entity, such as a State or local 
     governmental entity;
       ``(B) a private nonprofit entity; or
       ``(C) a consortium of entities described in subparagraphs 
     (A) and (B).

     ``SEC. 10331. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this subpart, there are 
     authorized to be appropriated $100,000,000 for fiscal year 
     2001.''.
       (b) Part C of title X of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8061 et seq.) is amended in 
     each of the following provisions by striking ``part'' each 
     place such term appears and inserting ``subpart'':
       (1) Sections 10301 through 10305.
       (2) Section 10307.
       (3) Sections 10309 through 10311.
       Sec. 323. (a) Section 8003(b)(2)(F) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703(b)(2)(F)) is 
     amended--
       (1) by striking ``the Secretary shall use'' and inserting 
     ``the Secretary--
       ``(i) shall use'';
       (2) by striking the period at the end and inserting ``; 
     and''; and
       (3) by adding at the end the following:
       ``(ii) except as provided in subparagraph (C)(i)(I), shall 
     include all of the children described in subparagraphs (F) 
     and (G) of subsection (a)(1) enrolled in schools of the local 
     educational agency in determining (I) the eligibility of the 
     agency for assistance under this paragraph, and (II) the 
     amount of such assistance if the number of such children meet 
     the requirements of subsection (a)(3).''.
       (b) Section 8003(b)(2) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7703(b)(2)) is amended by 
     adding at the end the following:
       ``(G) Determination of average tax rates for general fund 
     purposes.--For the purpose of determining average tax rates 
     for general fund purposes for local educational agencies in a 
     State under this paragraph (except under subparagraph 
     (C)(i)(II)(bb)), the Secretary shall use either--
       ``(i) the average tax rate for general fund purposes for 
     comparable local educational agencies, as determined by the 
     Secretary in regulations; or
       ``(ii) the average tax rate of all the local educational 
     agencies in the State.''.
       This title may be cited as the ``Department of Education 
     Appropriations Act, 2001''.

                       TITLE IV--RELATED AGENCIES

                      Armed Forces Retirement Home

       For expenses necessary for the Armed Forces Retirement Home 
     to operate and maintain the United States Soldiers' and 
     Airmen's Home and the United States Naval Home, to be paid 
     from funds available in the Armed Forces Retirement Home 
     Trust Fund, $69,832,000, of which $9,832,000 shall remain 
     available until expended for construction and renovation of 
     the physical plants at the United States Soldiers' and 
     Airmen's Home and the United States Naval Home: Provided, 
     That, notwithstanding any other provision of law, a single 
     contract or related contracts for development and 
     construction, to include construction of a long-term care 
     facility at the United States Naval Home, may be employed 
     which collectively include the full scope of the project: 
     Provided further, That the solicitation and contract shall 
     contain the clause ``availability of funds'' found at 48 CFR 
     52.232-18 and 252.232-7007, Limitation of Government 
     Obligations.

             Corporation for National and Community Service


        Domestic Volunteer Service Programs, Operating Expenses

       For expenses necessary for the Corporation for National and 
     Community Service to carry out the provisions of the Domestic 
     Volunteer Service Act of 1973, as amended, $303,850,000: 
     Provided, That none of the funds made available to the 
     Corporation for National and Community Service in this Act 
     for activities authorized by part E of title II of the 
     Domestic Volunteer Service Act of 1973 shall be used to 
     provide stipends or other monetary incentives to volunteers 
     or volunteer leaders whose incomes exceed 125 percent of the 
     national poverty level.

                  Corporation for Public Broadcasting

       For payment to the Corporation for Public Broadcasting, as 
     authorized by the Communications Act of 1934, an amount which 
     shall be available within limitations specified by that Act, 
     for the fiscal year 2003, $365,000,000: Provided, That no 
     funds made available to the Corporation for Public 
     Broadcasting by this Act shall be used to pay for receptions, 
     parties, or similar forms of entertainment for Government 
     officials or employees: Provided further, That none of the 
     funds contained in this paragraph shall be available or used 
     to aid or support any program or activity from which any 
     person is excluded, or is denied benefits, or is 
     discriminated against, on the basis of race, color, national 
     origin, religion, or sex: Provided further, That in addition 
     to the amounts provided above, $20,000,000, to remain 
     available until expended, shall be for digitalization, 
     pending enactment of authorizing legislation.

               Federal Mediation and Conciliation Service


                         Salaries and Expenses

       For expenses necessary for the Federal Mediation and 
     Conciliation Service to carry out the functions vested in it 
     by the Labor Management Relations Act, 1947 (29 U.S.C. 171-
     180, 182-183), including hire of passenger motor vehicles; 
     for expenses necessary for the Labor-Management Cooperation 
     Act of 1978 (29 U.S.C. 175a); and for expenses necessary for 
     the Service to carry out the functions vested in it by the 
     Civil Service Reform Act, Public Law 95-454 (5 U.S.C. ch. 
     71), $38,200,000, including $1,500,000, to remain available 
     through September 30, 2002, for activities authorized by the 
     Labor-Management Cooperation Act of 1978 (29 U.S.C. 175a): 
     Provided, That notwithstanding 31 U.S.C. 3302, fees charged, 
     up to full-cost recovery, for special training activities and 
     other conflict resolution services and technical assistance, 
     including those provided to foreign governments and 
     international organizations, and for arbitration services 
     shall be credited to and merged with this account, and shall 
     remain available until expended: Provided further, That fees 
     for arbitration services shall be available only for 
     education, training, and professional development of the 
     agency workforce: Provided further, That the Director of the 
     Service is authorized to accept and use on behalf of the 
     United States gifts of services and real, personal, or other 
     property in the aid of any projects or functions within the 
     Director's jurisdiction.

            Federal Mine Safety and Health Review Commission


                         Salaries and Expenses

       For expenses necessary for the Federal Mine Safety and 
     Health Review Commission (30 U.S.C. 801 et seq.), $6,320,000.

                Institute of Museum and Library Services


         Office of Library Services: Grants and Administration

       For carrying out subtitle B of the Museum and Library 
     Services Act, $207,219,000: Provided, That of the amount 
     provided, $1,000,000 shall be awarded to the National Museum 
     of Women in the Arts in Washington, D.C., $700,000 shall be 
     awarded to the University of Idaho Institute for the Historic 
     Study of Jazz, $2,600,000 shall be awarded to Southeast 
     Missouri State University River Campus and Museum, $900,000 
     shall be

[[Page 26688]]

     awarded to the Heritage Harbor Museum in Rhode Island, 
     $500,000 shall be awarded to the Alaska Native Heritage 
     Center, $576,000 shall be awarded to the Franklin Institute 
     in Philadelphia, $925,000 shall be awarded to the Please 
     Touch Museum, $250,000 shall be awarded to the Pittsburgh 
     Children's Museum, $510,000 shall be awarded to the Temple 
     University Library, $1,800,000 shall be awarded to Franklin 
     Pierce College in New Hampshire, $500,000 shall be awarded to 
     the Louisville Zoo in Kentucky, $150,000 shall be awarded to 
     the Oregon Historical Society, $1,200,000 shall be awarded to 
     the Mississippi River Museum and Discovery Center in Dubuque, 
     Iowa, $650,000 shall be awarded to the Salisbury House 
     Foundation in Des Moines, Iowa, $150,000 shall be awarded to 
     the History Center for the Linn County Historical Museum in 
     Iowa, $4,000,000 shall be awarded to the Newsline for the 
     Blind, of which $100,000 shall be awarded to the Iowa 
     Newsline for the Blind and $100,000 shall be awarded to the 
     West Virginia Newsline for the Blind, $1,000,000 shall be 
     awarded to the Clay Center for the Arts and Sciences, 
     $650,000 shall be awarded to Bishops Museum in Hawaii, 
     $500,000 shall be awarded to the Wisconsin Maritime Museum, 
     $250,000 shall be awarded to the Natural History Museum of 
     Los Angeles, $400,000 shall be awarded to the Perkins Geology 
     Museum at the University of Vermont, $400,000 shall be 
     awarded to the Walt Whitman Cultural Arts Center in Camden, 
     New Jersey, $400,000 shall be awarded to the Plainfield 
     Public Library in Plainfield, New Jersey, $150,000 shall be 
     awarded to the Ducktown Arts District in Atlantic City, New 
     Jersey, $400,000 shall be awarded to the Lake Champlain 
     Science Center in Vermont, $250,000 shall be awarded to the 
     Foundation for the Arts, Music, and Entertainment of 
     Shreveport-Bossier, Inc., $100,000 shall be awarded to Bryant 
     College in Rhode Island, $120,000 shall be awarded to the 
     Fenton Historical Museum of Jamestown, New York, $921,000 
     shall be awarded to the Mariners' Museum in Newport News, 
     Virginia, $461,000 shall be awarded to DuPage County 
     Children's Museum in Naperville, Illinois, $369,000 shall be 
     awarded to the National Baseball Hall of Fame Library in 
     Cooperstown, New York, $92,000 shall be awarded to the City 
     of Corona, Riverside, California, $6,000 shall be awarded to 
     the City of Murrieta, California Public Library, $1,382,000 
     shall be awarded to the Sierra Madre, California Public 
     Library, $23,000 shall be awarded to the Brooklyn Public 
     Library in Brooklyn, New York, $46,000 shall be awarded to 
     the New York Public Library Staten Island branch, $266,000 
     shall be awarded to the Edward H. Nabb Research Center at 
     Salisbury State University in Salisbury, Maryland, $461,000 
     shall be awarded to Texas Tech University, $230,000 shall be 
     awarded to the City of Ontario, California Public Library, 
     $461,000 shall be awarded to the Southern Oregon University 
     in Ashland, Oregon, $1,106,000 shall be awarded to 
     Christopher Newport University in Newport News, Virginia, 
     $128,000 shall be awarded to the Nassau County Museum of Art 
     in Roslyn Harbor, New York, $850,000 shall be awarded to the 
     Children's Museum of Los Angeles, $43,000 shall be awarded to 
     Sumter County Library in Sumter, South Carolina, $298,000 
     shall be awarded to Columbia College Center for Black Music 
     Research in Chicago, Illinois, $723,000 shall be awarded to 
     Old Sturbridge Village in Sturbridge, Massachusetts, $723,000 
     shall be awarded to New Bedford Whaling Museum in 
     Massachusetts, $298,000 shall be awarded to Mystic Seaport 
     Museum of America and the Sea in Connecticut, $468,000 shall 
     be awarded to the City of Houston Public Library, $128,000 
     shall be awarded to the Roberson Museum and Science Center in 
     Binghampton, New York, $850,000 shall be awarded to Berman 
     Museum of Art at Ursinus College in Collegeville, 
     Pennsylvania, $680,000 shall be awarded to AMISTAD Research 
     Center at Tulane University, $2,125,000 shall be awarded to 
     Silas Bronson Library in Waterbury, Connecticut, $213,000 
     shall be awarded to Fitchburg Art Museum in Fitchburg, 
     Massachusetts, $128,000 shall be awarded to North Carolina 
     Museum of Life and Science, $2,435,000 shall be awarded to 
     New York Public Library, $85,000 shall be awarded to the New 
     York Botanical Garden in Bronx, New York, $170,000 shall be 
     awarded to George Eastman House in Rochester, New York, 
     $425,000 shall be awarded to The National Aviary in 
     Pittsburgh, Pennsylvania, $723,000 shall be awarded to the 
     George C. Page Museum in Los Angeles, California, $461,000 
     shall be awarded to the Abraham Lincoln Bicentennial 
     Commission, and $410,000 shall be awarded to the AE Seaman 
     Mineral Museum in Houghton, Michigan.

                  Medicare Payment Advisory Commission


                         salaries and expenses

       For expenses necessary to carry out section 1805 of the 
     Social Security Act, $8,000,000, to be transferred to this 
     appropriation from the Federal Hospital Insurance and the 
     Federal Supplementary Medical Insurance Trust Funds.

        National Commission on Libraries and Information Science


                         Salaries and Expenses

       For necessary expenses for the National Commission on 
     Libraries and Information Science, established by the Act of 
     July 20, 1970 (Public Law 91-345, as amended), $1,495,000.

                     National Council on Disability


                         Salaries and Expenses

       For expenses necessary for the National Council on 
     Disability as authorized by title IV of the Rehabilitation 
     Act of 1973, as amended, $2,615,000.

                     National Education Goals Panel

       For expenses necessary for the National Education Goals 
     Panel, as authorized by title II, part A of the Goals 2000: 
     Educate America Act, $1,500,000.

                     National Labor Relations Board


                         Salaries and Expenses

       For expenses necessary for the National Labor Relations 
     Board to carry out the functions vested in it by the Labor-
     Management Relations Act, 1947, as amended (29 U.S.C. 141-
     167), and other laws, $216,438,000: Provided, That no part of 
     this appropriation shall be available to organize or assist 
     in organizing agricultural laborers or used in connection 
     with investigations, hearings, directives, or orders 
     concerning bargaining units composed of agricultural laborers 
     as referred to in section 2(3) of the Act of July 5, 1935 (29 
     U.S.C. 152), and as amended by the Labor-Management Relations 
     Act, 1947, as amended, and as defined in section 3(f) of the 
     Act of June 25, 1938 (29 U.S.C. 203), and including in said 
     definition employees engaged in the maintenance and operation 
     of ditches, canals, reservoirs, and waterways when maintained 
     or operated on a mutual, nonprofit basis and at least 95 
     percent of the water stored or supplied thereby is used for 
     farming purposes.

                        National Mediation Board


                         Salaries and Expenses

       For expenses necessary to carry out the provisions of the 
     Railway Labor Act, as amended (45 U.S.C. 151-188), including 
     emergency boards appointed by the President, $10,400,000.

            Occupational Safety and Health Review Commission


                         Salaries and Expenses

       For expenses necessary for the Occupational Safety and 
     Health Review Commission (29 U.S.C. 661), $8,720,000.

                       Railroad Retirement Board


                     dual benefits payments account

       For payment to the Dual Benefits Payments Account, 
     authorized under section 15(d) of the Railroad Retirement Act 
     of 1974, $160,000,000, which shall include amounts becoming 
     available in fiscal year 2001 pursuant to section 
     224(c)(1)(B) of Public Law 98-76; and in addition, an amount, 
     not to exceed 2 percent of the amount provided herein, shall 
     be available proportional to the amount by which the product 
     of recipients and the average benefit received exceeds 
     $160,000,000: Provided, That the total amount provided herein 
     shall be credited in 12 approximately equal amounts on the 
     first day of each month in the fiscal year.


          Federal Payments to the Railroad Retirement Accounts

       For payment to the accounts established in the Treasury for 
     the payment of benefits under the Railroad Retirement Act for 
     interest earned on unnegotiated checks, $150,000, to remain 
     available through September 30, 2002, which shall be the 
     maximum amount available for payment pursuant to section 417 
     of Public Law 98-76.


                      limitation on administration

       For necessary expenses for the Railroad Retirement Board 
     for administration of the Railroad Retirement Act and the 
     Railroad Unemployment Insurance Act, $95,000,000, to be 
     derived in such amounts as determined by the Board from the 
     railroad retirement accounts and from moneys credited to the 
     railroad unemployment insurance administration fund.


             Limitation on the Office of Inspector General

       For expenses necessary for the Office of Inspector General 
     for audit, investigatory and review activities, as authorized 
     by the Inspector General Act of 1978, as amended, not more 
     than $5,700,000, to be derived from the railroad retirement 
     accounts and railroad unemployment insurance account: 
     Provided, That none of the funds made available in any other 
     paragraph of this Act may be transferred to the Office; used 
     to carry out any such transfer; used to provide any office 
     space, equipment, office supplies, communications facilities 
     or services, maintenance services, or administrative services 
     for the Office; used to pay any salary, benefit, or award for 
     any personnel of the Office; used to pay any other operating 
     expense of the Office; or used to reimburse the Office for 
     any service provided, or expense incurred, by the Office.

                     Social Security Administration


                Payments to Social Security Trust Funds

       For payment to the Federal Old-Age and Survivors Insurance 
     and the Federal Disability Insurance trust funds, as provided 
     under sections 201(m), 228(g), and 1131(b)(2) of the Social 
     Security Act, $20,400,000.


               Special Benefits for Disabled Coal Miners

       For carrying out title IV of the Federal Mine Safety and 
     Health Act of 1977, $365,748,000, to remain available until 
     expended.
       For making, after July 31 of the current fiscal year, 
     benefit payments to individuals under title IV of the Federal 
     Mine Safety and Health Act of 1977, for costs incurred in the 
     current fiscal year, such amounts as may be necessary.
       For making benefit payments under title IV of the Federal 
     Mine Safety and Health Act of 1977 for the first quarter of 
     fiscal year 2002, $114,000,000, to remain available until 
     expended.


                  Supplemental Security Income Program

       For carrying out titles XI and XVI of the Social Security 
     Act, section 401 of Public Law 92-603, section 212 of Public 
     Law 93-66, as amended, and section 405 of Public Law 95-216, 
     including payment to the Social Security trust funds for 
     administrative expenses incurred pursuant

[[Page 26689]]

     to section 201(g)(1) of the Social Security Act, 
     $23,043,000,000, to remain available until expended: 
     Provided, That any portion of the funds provided to a State 
     in the current fiscal year and not obligated by the State 
     during that year shall be returned to the Treasury.
       In addition, $210,000,000, to remain available until 
     September 30, 2002, for payment to the Social Security trust 
     funds for administrative expenses for continuing disability 
     reviews as authorized by section 103 of Public Law 104-121 
     and section 10203 of Public Law 105-33. The term ``continuing 
     disability reviews'' means reviews and redeterminations as 
     defined under section 201(g)(1)(A) of the Social Security 
     Act, as amended.
       For making, after June 15 of the current fiscal year, 
     benefit payments to individuals under title XVI of the Social 
     Security Act, for unanticipated costs incurred for the 
     current fiscal year, such sums as may be necessary.
       For making benefit payments under title XVI of the Social 
     Security Act for the first quarter of fiscal year 2002, 
     $10,470,000,000, to remain available until expended.


                 limitation on administrative expenses

       For necessary expenses, including the hire of two passenger 
     motor vehicles, and not to exceed $10,000 for official 
     reception and representation expenses, not more than 
     $6,583,000,000 may be expended, as authorized by section 
     201(g)(1) of the Social Security Act, from any one or all of 
     the trust funds referred to therein: Provided, That not less 
     than $1,800,000 shall be for the Social Security Advisory 
     Board: Provided further, That unobligated balances at the end 
     of fiscal year 2001 not needed for fiscal year 2001 shall 
     remain available until expended to invest in the Social 
     Security Administration information technology and 
     telecommunications hardware and software infrastructure, 
     including related equipment and non-payroll administrative 
     expenses associated solely with this information technology 
     and telecommunications infrastructure: Provided further, That 
     reimbursement to the trust funds under this heading for 
     expenditures for official time for employees of the Social 
     Security Administration pursuant to section 7131 of title 5, 
     United States Code, and for facilities or support services 
     for labor organizations pursuant to policies, regulations, or 
     procedures referred to in section 7135(b) of such title shall 
     be made by the Secretary of the Treasury, with interest, from 
     amounts in the general fund not otherwise appropriated, as 
     soon as possible after such expenditures are made.
       From funds provided under the previous paragraph, 
     notwithstanding the provision under this heading in Public 
     Law 106-113 regarding unobligated balances at the end of 
     fiscal year 2000 not needed for such fiscal year, an amount 
     not to exceed $50,000,000 from such unobligated balances 
     shall, in addition to funding already available under this 
     heading for fiscal year 2001, be available for necessary 
     expenses.
       From funds provided under the first paragraph, not less 
     than $200,000,000 shall be available for conducting 
     continuing disability reviews.
       In addition to funding already available under this 
     heading, and subject to the same terms and conditions, 
     $450,000,000, to remain available until September 30, 2002, 
     for continuing disability reviews as authorized by section 
     103 of Public Law 104-121 and section 10203 of Public Law 
     105-33. The term ``continuing disability reviews'' means 
     reviews and redeterminations as defined under section 
     201(g)(1)(A) of the Social Security Act, as amended.
       In addition, $91,000,000 to be derived from administration 
     fees in excess of $5.00 per supplementary payment collected 
     pursuant to section 1616(d) of the Social Security Act or 
     section 212(b)(3) of Public Law 93-66, which shall remain 
     available until expended. To the extent that the amounts 
     collected pursuant to such section 1616(d) or 212(b)(3) in 
     fiscal year 2001 exceed $91,000,000, the amounts shall be 
     available in fiscal year 2002 only to the extent provided in 
     advance in appropriations Acts.
       From funds previously appropriated for this purpose, any 
     unobligated balances at the end of fiscal year 2000 shall be 
     available to continue Federal-State partnerships which will 
     evaluate means to promote Medicare buy-in programs targeted 
     to elderly and disabled individuals under titles XVIII and 
     XIX of the Social Security Act.
       From funds provided under the first paragraph, up to 
     $6,000,000 shall be available for implementation, 
     development, evaluation, and other costs associated with 
     administration of section 302 of the Ticket to Work and Work 
     Incentives Improvement Act.


                      Office of Inspector General

                     (including transfer of funds)

       For expenses necessary for the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978, as amended, $16,944,000, together with not to exceed 
     $52,500,000, to be transferred and expended as authorized by 
     section 201(g)(1) of the Social Security Act from the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund.
       In addition, an amount not to exceed 3 percent of the total 
     provided in this appropriation may be transferred from the 
     ``Limitation on Administrative Expenses'', Social Security 
     Administration, to be merged with this account, to be 
     available for the time and purposes for which this account is 
     available: Provided, That notice of such transfers shall be 
     transmitted promptly to the Committees on Appropriations of 
     the House and Senate.

                    United States Institute of Peace


                           Operating Expenses

       For necessary expenses of the United States Institute of 
     Peace as authorized in the United States Institute of Peace 
     Act, $15,000,000.

                      TITLE V--GENERAL PROVISIONS

       Sec. 501. The Secretaries of Labor, Health and Human 
     Services, and Education are authorized to transfer unexpended 
     balances of prior appropriations to accounts corresponding to 
     current appropriations provided in this Act: Provided, That 
     such transferred balances are used for the same purpose, and 
     for the same periods of time, for which they were originally 
     appropriated.
       Sec. 502. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       Sec. 503. (a) No part of any appropriation contained in 
     this Act shall be used, other than for normal and recognized 
     executive-legislative relationships, for publicity or 
     propaganda purposes, for the preparation, distribution, or 
     use of any kit, pamphlet, booklet, publication, radio, 
     television, or video presentation designed to support or 
     defeat legislation pending before the Congress or any State 
     legislature, except in presentation to the Congress or any 
     State legislature itself.
       (b) No part of any appropriation contained in this Act 
     shall be used to pay the salary or expenses of any grant or 
     contract recipient, or agent acting for such recipient, 
     related to any activity designed to influence legislation or 
     appropriations pending before the Congress or any State 
     legislature.
       Sec. 504. The Secretaries of Labor and Education are 
     authorized to make available not to exceed $20,000 and 
     $15,000, respectively, from funds available for salaries and 
     expenses under titles I and III, respectively, for official 
     reception and representation expenses; the Director of the 
     Federal Mediation and Conciliation Service is authorized to 
     make available for official reception and representation 
     expenses not to exceed $2,500 from the funds available for 
     ``Salaries and expenses, Federal Mediation and Conciliation 
     Service''; and the Chairman of the National Mediation Board 
     is authorized to make available for official reception and 
     representation expenses not to exceed $2,500 from funds 
     available for ``Salaries and expenses, National Mediation 
     Board''.
       Sec. 505. Notwithstanding any other provision of this Act, 
     no funds appropriated under this Act shall be used to carry 
     out any program of distributing sterile needles or syringes 
     for the hypodermic injection of any illegal drug.
       Sec. 506. (a) It is the sense of the Congress that, to the 
     greatest extent practicable, all equipment and products 
     purchased with funds made available in this Act should be 
     American-made.
       (b) In providing financial assistance to, or entering into 
     any contract with, any entity using funds made available in 
     this Act, the head of each Federal agency, to the greatest 
     extent practicable, shall provide to such entity a notice 
     describing the statement made in subsection (a) by the 
     Congress.
       (c) If it has been finally determined by a court or Federal 
     agency that any person intentionally affixed a label bearing 
     a ``Made in America'' inscription, or any inscription with 
     the same meaning, to any product sold in or shipped to the 
     United States that is not made in the United States, the 
     person shall be ineligible to receive any contract or 
     subcontract made with funds made available in this Act, 
     pursuant to the debarment, suspension, and ineligibility 
     procedures described in sections 9.400 through 9.409 of title 
     48, Code of Federal Regulations.
       Sec. 507. When issuing statements, press releases, requests 
     for proposals, bid solicitations and other documents 
     describing projects or programs funded in whole or in part 
     with Federal money, all grantees receiving Federal funds 
     included in this Act, including but not limited to State and 
     local governments and recipients of Federal research grants, 
     shall clearly state: (1) the percentage of the total costs of 
     the program or project which will be financed with Federal 
     money; (2) the dollar amount of Federal funds for the project 
     or program; and (3) percentage and dollar amount of the total 
     costs of the project or program that will be financed by non-
     governmental sources.
       Sec. 508. (a) None of the funds appropriated under this 
     Act, and none of the funds in any trust fund to which funds 
     are appropriated under this Act, shall be expended for any 
     abortion.
       (b) None of the funds appropriated under this Act, and none 
     of the funds in any trust fund to which funds are 
     appropriated under this Act, shall be expended for health 
     benefits coverage that includes coverage of abortion.
       (c) The term ``health benefits coverage'' means the package 
     of services covered by a managed care provider or 
     organization pursuant to a contract or other arrangement.
       Sec. 509. (a) The limitations established in the preceding 
     section shall not apply to an abortion--
       (1) if the pregnancy is the result of an act of rape or 
     incest; or
       (2) in the case where a woman suffers from a physical 
     disorder, physical injury, or physical illness, including a 
     life-endangering physical condition caused by or arising from 
     the pregnancy itself, that would, as certified by a 
     physician, place the woman in danger of death unless an 
     abortion is performed.
       (b) Nothing in the preceding section shall be construed as 
     prohibiting the expenditure by a State, locality, entity, or 
     private person of State,

[[Page 26690]]

     local, or private funds (other than a State's or locality's 
     contribution of Medicaid matching funds).
       (c) Nothing in the preceding section shall be construed as 
     restricting the ability of any managed care provider from 
     offering abortion coverage or the ability of a State or 
     locality to contract separately with such a provider for such 
     coverage with State funds (other than a State's or locality's 
     contribution of Medicaid matching funds).
       Sec. 510. (a) None of the funds made available in this Act 
     may be used for--
       (1) the creation of a human embryo or embryos for research 
     purposes; or
       (2) research in which a human embryo or embryos are 
     destroyed, discarded, or knowingly subjected to risk of 
     injury or death greater than that allowed for research on 
     fetuses in utero under 45 CFR 46.208(a)(2) and section 498(b) 
     of the Public Health Service Act (42 U.S.C. 289g(b)).
       (b) For purposes of this section, the term ``human embryo 
     or embryos'' includes any organism, not protected as a human 
     subject under 45 CFR 46 as of the date of the enactment of 
     this Act, that is derived by fertilization, parthenogenesis, 
     cloning, or any other means from one or more human gametes or 
     human diploid cells.
       Sec. 511. (a) None of the funds made available in this Act 
     may be used for any activity that promotes the legalization 
     of any drug or other substance included in schedule I of the 
     schedules of controlled substances established by section 202 
     of the Controlled Substances Act (21 U.S.C. 812).
       (b) The limitation in subsection (a) shall not apply when 
     there is significant medical evidence of a therapeutic 
     advantage to the use of such drug or other substance or that 
     federally sponsored clinical trials are being conducted to 
     determine therapeutic advantage.
       Sec. 512. None of the funds made available in this Act may 
     be obligated or expended to enter into or renew a contract 
     with an entity if--
       (1) such entity is otherwise a contractor with the United 
     States and is subject to the requirement in section 4212(d) 
     of title 38, United States Code, regarding submission of an 
     annual report to the Secretary of Labor concerning employment 
     of certain veterans; and
       (2) such entity has not submitted a report as required by 
     that section for the most recent year for which such 
     requirement was applicable to such entity.
       Sec. 513. (a) Section 403(a)(5)(H)(iii) of the Social 
     Security Act (42 U.S.C. 603(a)(5)(H)(iii)) is amended by 
     striking ``2001'' and inserting ``2005''.
       (b) Section 403(a)(5)(H) of such Act (42 U.S.C. 
     603(a)(5)(G)) is amended by adding at the end the following:
       ``(iv) Interim report.--Not later than January 1, 2002, the 
     Secretary shall submit to the Congress an interim report on 
     the evaluations referred to in clause (i).''.
       Sec. 514. None of the funds made available in this Act may 
     be used to promulgate or adopt any final standard under 
     section 1173(b) of the Social Security Act (42 U.S.C. 1320d-
     2(b)) providing for, or providing for the assignment of, a 
     unique health identifier for an individual (except in an 
     individual's capacity as an employer or a health care 
     provider), until legislation is enacted specifically 
     approving the standard.
       Sec. 515. Section 410(b) of The Ticket to Work and Work 
     Incentives Improvement Act of 1999 (Public Law 106-170) is 
     amended by striking ``2009'' both places it appears and 
     inserting ``2001''.
       Sec. 516. Part B of title III of the Public Health Services 
     Act (42 U.S.C. 243 et seq.) is amended by inserting before 
     section 318 the following section:


                         ``HUMAN PAPILLOMAVIRUS

       ``Sec. 317P. (a) Surveillance.--
       ``(1) In general.--The Secretary, acting through the 
     Centers for Disease Control and Prevention, shall--
       ``(A) enter into cooperative agreements with States and 
     other entities to conduct sentinel surveillance or other 
     special studies that would determine the prevalence in 
     various age groups and populations of specific types of human 
     papillomavirus (referred to in this section as `HPV') in 
     different sites in various regions of the United States, 
     through collection of special specimens for HPV using a 
     variety of laboratory-based testing and diagnostic tools; and
       ``(B) develop and analyze data from the HPV sentinel 
     surveillance system described in subparagraph (A).
       ``(2) Report.--The Secretary shall make a progress report 
     to the Congress with respect to paragraph (1) no later than 
     one year after the effective date of this section.
       ``(b) Prevention Activities; Education Program.--
       ``(1) In general.--The Secretary, acting through the 
     Centers for Disease Control and Prevention, shall conduct 
     prevention research on HPV, including--
       ``(A) behavioral and other research on the impact of HPV-
     related diagnosis on individuals;
       ``(B) formative research to assist with the development of 
     educational messages and information for the public, for 
     patients, and for their partners about HPV;
       ``(C) surveys of physician and public knowledge, attitudes, 
     and practices about genital HPV infection; and
       ``(D) upon the completion of and based on the findings 
     under subparagraphs (A) through (C), develop and disseminate 
     educational materials for the public and health care 
     providers regarding HPV and its impact and prevention.
       ``(2) Report; final proposal.--The Secretary shall make a 
     progress report to the Congress with respect to paragraph (1) 
     not later than one year after the effective date of this 
     section, and shall develop a final report not later than 
     three years after such effective date, including a detailed 
     summary of the significant findings and problems and the best 
     strategies to prevent future infections, based on available 
     science.
       ``(c) HPV Education and Prevention.--
       ``(1) In general.--The Secretary shall prepare and 
     distribute educational materials for health care providers 
     and the public that include information on HPV. Such 
     materials shall address--
       ``(A) modes of transmission;
       ``(B) consequences of infection, including the link between 
     HPV and cervical cancer;
       ``(C) the available scientific evidence on the 
     effectiveness or lack of effectiveness of condoms in 
     preventing infection with HPV; and
       ``(D) the importance of regular Pap smears, and other 
     diagnostics for early intervention and prevention of cervical 
     cancer purposes in preventing cervical cancer.
       ``(2) Medically accurate information.--Educational material 
     under paragraph (1), and all other relevant educational and 
     prevention materials prepared and printed from this date 
     forward for the public and health care providers by the 
     Secretary (including materials prepared through the Food and 
     Drug Administration, the Centers for Disease Control and 
     Prevention, and the Health Resources and Services 
     Administration), or by contractors, grantees, or subgrantees 
     thereof, that are specifically designed to address STDs 
     including HPV shall contain medically accurate information 
     regarding the effectiveness or lack of effectiveness of 
     condoms in preventing the STD the materials are designed to 
     address. Such requirement only applies to materials mass 
     produced for the public and health care providers, and not to 
     routine communications.''.

     SEC. 4. LABELING OF CONDOMS.

       The Secretary of Health and Human Services shall reexamine 
     existing condom labels that are authorized pursuant to the 
     Federal Food, Drug, and Cosmetic Act to determine whether the 
     labels are medically accurate regarding the overall 
     effectiveness or lack of effectiveness of condoms in 
     preventing sexually transmitted diseases, including HPV.
       Sec. 517. Section 403(o) of the Food, Drug, and Cosmetic 
     Act (21 U.S.C. 343(o)) is repealed. Subsections (c) and (d) 
     of section 4 of the Saccharin Study and Labeling Act are 
     repealed.
       Sec. 518. (a) Title VIII of the Social Security Act is 
     amended by inserting after section 810 (42 U.S.C. 1010) the 
     following new section:

     ``SEC. 810A. OPTIONAL FEDERAL ADMINISTRATION OF STATE 
                   RECOGNITION PAYMENTS.

       ``(a) In General.--The Commissioner of Social Security may 
     enter into an agreement with any State (or political 
     subdivision thereof) that provides cash payments on a regular 
     basis to individuals entitled to benefits under this title 
     under which the Commissioner of Social Security shall make 
     such payments on behalf of such State (or subdivision).
       ``(b) Agreement terms.--
       ``(1) In general.--Such agreement shall include such terms 
     as the Commissioner of Social Security finds necessary to 
     achieve efficient and effective administration of both this 
     title and the State program.
       ``(2) Financial terms.--Such agreement shall provide for 
     the State to pay the Commissioner of Social Security, at such 
     times and in such installments as the parties may specify--
       ``(A) an amount equal to the expenditures made by the 
     Commissioner of Social Security pursuant to such agreement as 
     payments to individuals on behalf of such State; and
       ``(B) an administration fee to reimburse the administrative 
     expenses incurred by the Commissioner of Social Security in 
     making payments to individuals on behalf of the State.
       ``(c) Special Disposition of Administration Fees.--
     Administration fees, upon collection, shall be credited to a 
     special fund established in the Treasury of the United States 
     for State recognition payments for certain World War II 
     veterans. The amounts so credited, to the extent and in the 
     amounts provided in advance in appropriations Acts, shall be 
     available to defray expenses incurred in carrying out this 
     title.''.
       (b) Conforming Amendments.--
       (1) The Table of Contents of title VIII of the Social 
     Security Act is amended by inserting after ``Sec. 810. Other 
     administrative provisions.'' the following:

``Sec. 810A. Optional federal administration of State recognition 
              payments.''.

       (2) Section 1129A(e) of the Social Security (42 U.S.C. 
     1320a-8a(e)) is amended--
       (A) by inserting ``VIII or'' after ``benefits under'';
       (B) by inserting ``810A or'' after ``agreement under 
     section'';
       (C) by inserting ``1010A or'' before ``1382(e)(a)''; and
       (D) by inserting ``, as the case may be'' immediately 
     before the period.
       Sec. 519. Section 1612(a)(1) of the Social Security Act (42 
     U.S.C. 1382(a) is amended--
       (1) in subparagraph (A), by inserting ``but without the 
     application of section 210(j)(3)'' immediately before the 
     semicolon; and
       (2) in subparagraph (B), by--
       (A) striking ``and the last'' and inserting ``the last'', 
     and
       (B) inserting ``, and section 210(j)(3)'' after 
     ``subsection (a)''.
       Sec. 520. Amounts made available under this Act for the 
     administrative and related expenses for departmental 
     management for the Department of Labor, the Department of 
     Health and

[[Page 26691]]

     Human Services, and the Department of Education shall be 
     reduced on a pro rata basis by $25,000,000: Provided, That 
     this provision shall not apply to the Food and Drug 
     Administration and the Indian Health Service.

                   TITLE VI--ASSETS FOR INDEPENDENCE

     SECTION 601. SHORT TITLE.

       That this title may be cited as the ``Assets for 
     Independence Act Amendments of 2000''.

      SEC. 602. MATCHING CONTRIBUTIONS UNAVAILABLE FOR EMERGENCY 
                   WITHDRAWALS.

       Section 404(5)(A)(v) of the Assets for Independence Act (42 
     U.S.C. 604 note) is amended by striking ``, or enabling the 
     eligible individual to make an emergency withdrawal''.

      SEC. 603. ADDITIONAL QUALIFIED ENTITIES.

       Section 404(7)(A) of the Assets for Independence Act (42 
     U.S.C. 604 note) is amended--
       (1) in clause (i), by striking ``or'' at the end thereof;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following new clause:
       ``(iii) an entity that--

       ``(I) is--

       ``(aa) a credit union designated as a low-income credit 
     union by the National Credit Union Administration (NCUA); or
       ``(bb) an organization designated as a community 
     development financial institution by the Secretary of the 
     Treasury (or the Community Development Financial Institutions 
     Fund); and

       ``(II) can demonstrate a collaborative relationship with a 
     local community-based organization whose activities are 
     designed to address poverty in the community and the needs of 
     community members for economic independence and stability.''.

      SEC. 604. HOME PURCHASE COSTS.

       Section 404(8)(B)(i) of the Assets for Independence Act (42 
     U.S.C. 604 note) is amended by striking `` 100'' and 
     inserting ``120''.

     SEC. 605. INCREASED SET-ASIDE FOR ECONOMIC LITERACY TRAINING 
                   AND ADMINISTRATIVE COSTS.

       Section 407(c)(3) of the Assets for Independence Act (42 
     U.S.C. 604 note) is amended--
       (1) by striking ``9.5'' and inserting ``15''; and
       (2) by inserting after the first sentence the following: 
     ``Of the total amount specified in this paragraph, not more 
     than 7.5 percent shall be used for administrative functions 
     under paragraph (1)(C), including program management, 
     reporting requirements, recruitment and enrollment of 
     individuals, and monitoring. The remainder of the total 
     amount specified in this paragraph (not including the amount 
     specified for use for the purposes described in paragraph 
     (1)(D)) shall be used for nonadministrative functions 
     described in paragraph (1)(A), including case management, 
     budgeting. economic literacy, and credit counseling. If the 
     cost of nonadministrative functions described in paragraph 
     (1)(A) is less than 5.5 percent of the total amount specified 
     in this paragraph, such excess funds may be used for 
     administrative functions.''.

     SEC. 606. ALTERNATIVE ELIGIBILITY CRITERIA.

       Section 408(a)(1) of the Assets for Independence Act (42 
     U.S.C. 604 note) is amended by striking ``does not exceed'' 
     and inserting ``is equal to or less than 200 percent of the 
     poverty line (as determined by the Office of Management and 
     Budget) or''.

     SEC. 607. REVISED ANNUAL PROGRESS REPORT DEADLINE.

       (a) In General.--Section 412(c) of the Assets for 
     Independence Act (42 U.S.C. 604 note) is amended by striking 
     ``calendar'' and inserting ``project''.
       (b) Transitional Deadline.--Notwithstanding the amendment 
     made by subsection (a), the submission of the initial report 
     of a qualified entity under section 412(c) shall not be 
     required prior to the date that is 90 days after the date of 
     enactment of this title.

     SEC. 608. REVISED INTERIM EVALUATION REPORT DEADLINE.

       (a) In General.--Section 414(d)(1) of the Assets for 
     Independence Act (42 U.S.C. 604 note) is amended by striking 
     ``calendar'' and inserting ``project''.
       (b) Transitional Deadline.--Notwithstanding the amendment 
     made by subsection (a), the submission of the initial interim 
     report of the Secretary under section 412(c) shall not be 
     required prior to the date that is 90 days after the date of 
     enactment of this title.

     SEC. 609. INCREASED APPROPRIATIONS FOR EVALUATION EXPENSES.

       Subsection (e) of section 414 of the Assets for 
     Independence Act (42 U.S.C. 604 note) is amended to read as 
     follows:
       ``(e) Evaluation Expenses.--Of the amount appropriated 
     under section 416 for a fiscal year, the Secretary may expend 
     not more than $500,000 for such fiscal year to carry out the 
     objectives of this section.''.

     SEC. 610. NO REDUCTION IN BENEFITS.

       Section 415 of the Assets for Independence Act (42 U.S.C. 
     604 note) is amended to read as follows:

     ``SEC. 415. NO REDUCTION IN BENEFITS.

       ``Notwithstanding any other provision of Federal law (other 
     than the Internal Revenue Code of 1986) that requires 
     consideration of 1 or more financial circumstances of an 
     individual, for the purpose of determining eligibility to 
     receive, or the amount of, any assistance or benefit 
     authorized by such law to be provided to or for the benefit 
     of such individual, funds (including interest accruing) in an 
     individual development account under this Act shall be 
     disregarded for such purpose with respect to any period 
     during which such individual maintains or makes contributions 
     into such an account.''.

             TITLE VII--PHYSICAL EDUCATION FOR PROGRESS ACT

       Sec. 701. Physical Education for Progress. Title X of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8001 et seq.) is amended by adding at the end the following:

               ``PART L--PHYSICAL EDUCATION FOR PROGRESS

     ``SEC. 10999A. SHORT TITLE.

       ``This part may be cited as the `Physical Education for 
     Progress Act'.

     ``SEC. 10999B. PURPOSE.

       ``The purpose of this part is to award grants and contracts 
     to local educational agencies to enable the local educational 
     agencies to initiate, expand and improve physical education 
     programs for all kindergarten through 12th grade students.

     ``SEC. 10999C. FINDINGS.

       ``Congress makes the following findings:
       ``(1) Physical education is essential to the development of 
     growing children.
       ``(2) Physical education helps improve the overall health 
     of children by improving their cardiovascular endurance, 
     muscular strength and power, and flexibility, and by 
     enhancing weight regulation, bone development, posture, 
     skillful moving, active lifestyle habits, and constructive 
     use of leisure time.
       ``(3) Physical education helps improve the self esteem, 
     interpersonal relationships, responsible behavior, and 
     independence of children.
       ``(4) Children who participate in high quality daily 
     physical education programs tend to be more healthy and 
     physically fit.
       ``(5) The percentage of young people who are overweight has 
     more than doubled in the 30 years preceding 1999.
       ``(6) Low levels of activity contribute to the high 
     prevalence of obesity among children in the United States.
       ``(7) Obesity related diseases cost the United States 
     economy more than $100,000,000,000 every year.
       ``(8) Inactivity and poor diet cause at least 300,000 
     deaths a year in the United States.
       ``(9) Physically fit adults have significantly reduced risk 
     factors for heart attacks and stroke.
       ``(10) Children are not as active as they should be and 
     fewer than 1 in 4 children get 20 minutes of vigorous 
     activity every day of the week.
       ``(11) The Surgeon General's 1996 Report on Physical 
     Activity and Health, and the Centers for Disease Control and 
     Prevention, recommend daily physical education for all 
     students in kindergarten through grade 12.
       ``(12) Twelve years after Congress passed House Concurrent 
     Resolution 97, 100th Congress, agreed to December 11, 1987, 
     encouraging State and local governments and local educational 
     agencies to provide high quality daily physical education 
     programs for all children in kindergarten through grade 12, 
     little progress has been made.
       ``(13) Every student in our Nation's schools, from 
     kindergarten through grade 12, should have the opportunity to 
     participate in quality physical education. It is the unique 
     role of quality physical education programs to develop the 
     health-related fitness, physical competence, and cognitive 
     understanding about physical activity for all students so 
     that the students can adopt healthy and physically active 
     lifestyles.

     ``SEC. 10999D. PROGRAM AUTHORIZED.

       ``The Secretary is authorized to award grants to, and enter 
     into contracts with, local educational agencies to pay the 
     Federal share of the costs of initiating, expanding, and 
     improving physical education programs for kindergarten 
     through grade 12 students by--
       ``(1) providing equipment and support to enable students to 
     actively participate in physical education activities; and
       ``(2) providing funds for staff and teacher training and 
     education.

     ``SEC. 10999E. APPLICATIONS; PROGRAM ELEMENTS.

       ``(a) Applications.--Each local educational agency desiring 
     a grant or contract under this part shall submit to the 
     Secretary an application that contains a plan to initiate, 
     expand, or improve physical education programs in the schools 
     served by the agency in order to make progress toward meeting 
     State standards for physical education.
       ``(b) Program Elements.--A physical education program 
     described in any application submitted under subsection (a) 
     may provide--
       ``(1) fitness education and assessment to help children 
     understand, improve, or maintain their physical well-being;
       ``(2) instruction in a variety of motor skills and physical 
     activities designed to enhance the physical, mental, and 
     social or emotional development of every child;
       ``(3) development of cognitive concepts about motor skill 
     and physical fitness that support a lifelong healthy 
     lifestyle;
       ``(4) opportunities to develop positive social and 
     cooperative skills through physical activity participation;
       ``(5) instruction in healthy eating habits and good 
     nutrition; and
       ``(6) teachers of physical education the opportunity for 
     professional development to stay abreast of the latest 
     research, issues, and trends in the field of physical 
     education.
       ``(c) Special Rule.--For the purpose of this part, 
     extracurricular activities such as team sports and Reserve 
     Officers' Training Corps

[[Page 26692]]

     (ROTC) program activities shall not be considered as part of 
     the curriculum of a physical education program assisted under 
     this part.

     ``SEC. 10999F. PROPORTIONALITY.

       ``The Secretary shall ensure that grants awarded and 
     contracts entered into under this part shall be equitably 
     distributed between local educational agencies serving urban 
     and rural areas, and between local educational agencies 
     serving large and small numbers of students.

     ``SEC. 10999G. PRIVATE SCHOOL STUDENTS AND HOME-SCHOOLED 
                   STUDENTS.

       ``An application for funds under this part may provide for 
     the participation, in the activities funded under this part, 
     of--
       ``(1) homeschooled children, and their parents and 
     teachers; or
       ``(2) children enrolled in private nonprofit elementary 
     schools or secondary schools, and their parents and teachers.

     ``SEC. 10999H. REPORT REQUIRED FOR CONTINUED FUNDING.

       ``As a condition to continue to receive grant or contract 
     funding after the first year of a multiyear grant or contract 
     under this part, the administrator of the grant or contract 
     for the local educational agency shall submit to the 
     Secretary an annual report that describes the activities 
     conducted during the preceding year and demonstrates that 
     progress has been made toward meeting State standards for 
     physical education.

     ``SEC. 10999I. REPORT TO CONGRESS.

       ``The Secretary shall submit a report to Congress not later 
     than June 1, 2003, that describes the programs assisted under 
     this part, documents the success of such programs in 
     improving physical fitness, and makes such recommendations as 
     the Secretary determines appropriate for the continuation and 
     improvement of the programs assisted under this part.

     ``SEC. 10999J. ADMINISTRATIVE COSTS.

       ``Not more than 5 percent of the grant or contract funds 
     made available to a local educational agency under this part 
     for any fiscal year may be used for administrative costs.

     ``SEC. 10999K. FEDERAL SHARE; SUPPLEMENT NOT SUPPLANT.

       ``(a) Federal Share.--The Federal share under this part may 
     not exceed--
       ``(1) 90 percent of the total cost of a project for the 
     first year for which the project receives assistance under 
     this part; and
       ``(2) 75 percent of such cost for the second and each 
     subsequent such year.
       ``(b) Supplement not Supplant.--Funds made available under 
     this part shall be used to supplement and not supplant other 
     Federal, State and local funds available for physical 
     education activities.

     ``SEC. 10999L. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated $30,000,000 for 
     fiscal year 2001, $70,000,000 for fiscal year 2002, and 
     $100,000,000 for each of the fiscal years 2003 through 2005, 
     to carry out this part. Such funds shall remain available 
     until expended.''.

                TITLE VIII--EARLY LEARNING OPPORTUNITIES

     SEC. 801. SHORT TITLE; FINDINGS.

       (a) Short Title.--This title may be cited as the ``Early 
     Learning Opportunities Act''.
       (b) Findings.--Congress finds that--
       (1) medical research demonstrates that adequate stimulation 
     of a young child's brain between birth and age 5 is critical 
     to the physical development of the young child's brain;
       (2) parents are the most significant and effective teachers 
     of their children, and they alone are responsible for 
     choosing the best early learning opportunities for their 
     child;
       (3) parent education and parent involvement are critical to 
     the success of any early learning program or activity;
       (4) the more intensively parents are involved in their 
     child's early learning, the greater the cognitive and 
     noncognitive benefits to their children;
       (5) many parents have difficulty finding the information 
     and support the parents seek to help their children grow to 
     their full potential;
       (6) each day approximately 13,000,000 young children, 
     including 6,000,000 infants or toddlers, spend some or all of 
     their day being cared for by someone other than their 
     parents;
       (7) quality early learning programs, including those 
     designed to promote effective parenting, can increase the 
     literacy rate, the secondary school graduation rate, the 
     employment rate, and the college enrollment rate for children 
     who have participated in voluntary early learning programs 
     and activities;
       (8) early childhood interventions can yield substantial 
     advantages to participants in terms of emotional and 
     cognitive development, education, economic well-being, and 
     health, with the latter 2 advantages applying to the 
     children's families as well;
       (9) participation in quality early learning programs, 
     including those designed to promote effective parenting, can 
     decrease the future incidence of teenage pregnancy, welfare 
     dependency, at-risk behaviors, and juvenile delinquency for 
     children;
       (10) several cost-benefit analysis studies indicate that 
     for each $1 invested in quality early learning programs, the 
     Federal Government can save over $5 by reducing the number of 
     children and families who participate in Federal Government 
     programs like special education and welfare;
       (11) for children placed in the care of others during the 
     workday, the low salaries paid to the child care staff, the 
     lack of career progression for the staff, and the lack of 
     child development specialists involved in early learning and 
     child care programs, make it difficult to attract and retain 
     the quality of staff necessary for a positive early learning 
     experience;
       (12) Federal Government support for early learning has 
     primarily focused on out-of-home care programs like those 
     established under the Head Start Act, the Child Care and 
     Development Block Grant of 1990, and part C of the 
     Individuals with Disabilities Education Act, and these 
     programs--
       (A) serve far fewer than half of all eligible children;
       (B) are not primarily designed to provide support for 
     parents who care for their young children in the home; and
       (C) lack a means of coordinating early learning 
     opportunities in each community; and
       (13) by helping communities increase, expand, and better 
     coordinate early learning opportunities for children and 
     their families, the productivity and creativity of future 
     generations will be improved, and the Nation will be prepared 
     for continued leadership in the 21st century.

     SEC. 802. PURPOSES.

       The purposes of this title are--
       (1) to increase the availability of voluntary programs, 
     services, and activities that support early childhood 
     development, increase parent effectiveness, and promote the 
     learning readiness of young children so that young children 
     enter school ready to learn;
       (2) to support parents, child care providers, and 
     caregivers who want to incorporate early learning activities 
     into the daily lives of young children;
       (3) to remove barriers to the provision of an accessible 
     system of early childhood learning programs in communities 
     throughout the United States;
       (4) to increase the availability and affordability of 
     professional development activities and compensation for 
     caregivers and child care providers; and
       (5) to facilitate the development of community-based 
     systems of collaborative service delivery models 
     characterized by resource sharing, linkages between 
     appropriate supports, and local planning for services.

     SEC. 803. DEFINITIONS.

       In this title:
       (1) Caregiver.--The term ``caregiver'' means an individual, 
     including a relative, neighbor, or family friend, who 
     regularly or frequently provides care, with or without 
     compensation, for a child for whom the individual is not the 
     parent.
       (2) Child care provider.--The term ``child care provider'' 
     means a provider of non-residential child care services 
     (including center-based, family-based, and in-home child care 
     services) for compensation who or that is legally operating 
     under State law, and complies with applicable State and local 
     requirements for the provision of child care services.
       (3) Early learning.--The term ``early learning'', used with 
     respect to a program or activity, means learning designed to 
     facilitate the development of cognitive, language, motor, and 
     social-emotional skills for, and to promote learning 
     readiness in, young children.
       (4) Early learning program.--The term ``early learning 
     program'' means--
       (A) a program of services or activities that helps parents, 
     caregivers, and child care providers incorporate early 
     learning into the daily lives of young children; or
       (B) a program that directly provides early learning to 
     young children.
       (5) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (6) Local Council.--The term ``Local Council'' means a 
     Local Council established or designated under section 814(a) 
     that serves one or more localities.
       (7) Locality.--The term ``locality'' means a city, county, 
     borough, township, or area served by another general purpose 
     unit of local government, an Indian tribe, a Regional 
     Corporation, or a Native Hawaiian entity.
       (8) Parent.--The term ``parent'' means a biological parent, 
     an adoptive parent, a stepparent, a foster parent, or a legal 
     guardian of, or a person standing in loco parentis to, a 
     child.
       (9) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2))) applicable to a family of the size involved.
       (10) Regional corporation.--The term ``Regional 
     Corporation'' means an entity listed in section 419(4)(B) of 
     the Social Security Act (42 U.S.C. 619(4)(B)).
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (12) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.
       (13) Training.--The term ``training'' means instruction in 
     early learning that--
       (A) is required for certification under State and local 
     laws, regulations, and policies;
       (B) is required to receive a nationally or State recognized 
     credential or its equivalent;
       (C) is received in a postsecondary education program 
     focused on early learning or early childhood development in 
     which the individual is enrolled; or
       (D) is provided, certified, or sponsored by an organization 
     that is recognized for its expertise in promoting early 
     learning or early childhood development.
       (14) Young child.--The term ``young child'' means any child 
     from birth to the age of mandatory school attendance in the 
     State where the child resides.

[[Page 26693]]



     SEC. 804. PROHIBITIONS.

       (a) Participation Not Required.--No person, including a 
     parent, shall be required to participate in any program of 
     early childhood education, early learning, parent education, 
     or developmental screening pursuant to the provisions of this 
     title.
       (b) Rights of Parents.--Nothing in this title shall be 
     construed to affect the rights of parents otherwise 
     established in Federal, State, or local law.
       (c) Particular Methods or Settings.--No entity that 
     receives funds under this title shall be required to provide 
     services under this title through a particular instructional 
     method or in a particular instructional setting to comply 
     with this title.
       (d) Nonduplication.--No funds provided under this title 
     shall be used to carry out an activity funded under another 
     provision of law providing for Federal child care or early 
     learning programs, unless an expansion of such activity is 
     identified in the local needs assessment and performance 
     goals under this title.

     SEC. 805. AUTHORIZATION AND APPROPRIATION OF FUNDS.

       There are authorized to be appropriated to the Department 
     of Health and Human Services to carry out this title--
       (1) $750,000,000 for fiscal year 2001;
       (2) $1,000,000,000 for fiscal year 2002;
       (3) $1,500,000,000 for fiscal year 2003; and
       (4) such sums as may be necessary for each of the fiscal 
     years 2004 and 2005.

     SEC. 806. COORDINATION OF FEDERAL PROGRAMS.

       (a) Coordination.--The Secretary and the Secretary of 
     Education shall develop mechanisms to resolve administrative 
     and programmatic conflicts between Federal programs that 
     would be a barrier to parents, caregivers, service providers, 
     or children related to the coordination of services and 
     funding for early learning programs.
       (b) Use of Equipment and Supplies.--In the case of a 
     collaborative activity funded under this title and another 
     provision of law providing for Federal child care or early 
     learning programs, the use of equipment and nonconsumable 
     supplies purchased with funds made available under this title 
     or such provision shall not be restricted to children 
     enrolled or otherwise participating in the program carried 
     out under this title or such provision, during a period in 
     which the activity is predominately funded under this title 
     or such provision.

     SEC. 807. PROGRAM AUTHORIZED.

       (a) Grants.--From amounts appropriated under section 805 
     the Secretary shall award grants to States to enable the 
     States to award grants to Local Councils to pay the Federal 
     share of the cost of carrying out early learning programs in 
     the locality served by the Local Council.
       (b) Federal Share.--
       (1) In general.--The Federal share of the cost described in 
     subsections (a) and (e) shall be 85 percent for the first and 
     second years of the grant, 80 percent for the third and 
     fourth years of the grant, and 75 percent for the fifth and 
     subsequent years of the grant.
       (2) Non-federal share.--The non-Federal share of the cost 
     described in subsections (a) and (e) may be contributed in 
     cash or in kind, fairly evaluated, including facilities, 
     equipment, or services, which may be provided from State or 
     local public sources, or through donations from private 
     entities. For the purposes of this paragraph the term 
     ``facilities'' includes the use of facilities, but the term 
     ``equipment'' means donated equipment and not the use of 
     equipment.
       (c) Maintenance of Effort.--The Secretary shall not award a 
     grant under this title to any State unless the Secretary 
     first determines that the total expenditures by the State and 
     its political subdivisions to support early learning programs 
     (other than funds used to pay the non-Federal share under 
     subsection (b)(2)) for the fiscal year for which the 
     determination is made is equal to or greater than such 
     expenditures for the preceding fiscal year.
       (d) Supplement Not Supplant.--Amounts received under this 
     title shall be used to supplement and not supplant other 
     Federal, State, and local public funds expended to promote 
     early learning.
       (e) Special Rule.--If funds appropriated to carry out this 
     title are less than $150,000,000 for any fiscal year, the 
     Secretary shall award grants for the fiscal year directly to 
     Local Councils, on a competitive basis, to pay the Federal 
     share of the cost of carrying out early learning programs in 
     the locality served by the Local Council. In carrying out the 
     preceding sentence--
       (1) subsection (c), subsections (b) and (c) of section 810, 
     and paragraphs (1), (2), and (3) of section 811(a) shall not 
     apply;
       (2) State responsibilities described in section 811(d) 
     shall be carried out by the Local Council with regard to the 
     locality;
       (3) the Secretary shall provide such technical assistance 
     and monitoring as necessary to ensure that the use of the 
     funds by Local Councils and the distribution of the funds to 
     Local Councils are consistent with this title; and
       (4) subject to paragraph (1), the Secretary shall assume 
     the responsibilities of the Lead State Agency under this 
     title, as appropriate.

     SEC. 808. USES OF FUNDS.

       (a) In General.--Subject to section 810, grant funds under 
     this title shall be used to pay for developing, operating, or 
     enhancing voluntary early learning programs that are likely 
     to produce sustained gains in early learning.
       (b) Limited Uses.--Subject to section 810, Lead State 
     Agencies and Local Councils shall ensure that funds made 
     available under this title to the agencies and Local Councils 
     are used for 3 or more of the following activities:
       (1) Helping parents, caregivers, child care providers, and 
     educators increase their capacity to facilitate the 
     development of cognitive, language comprehension, expressive 
     language, social-emotional, and motor skills, and promote 
     learning readiness.
       (2) Promoting effective parenting.
       (3) Enhancing early childhood literacy.
       (4) Developing linkages among early learning programs 
     within a community and between early learning programs and 
     health care services for young children.
       (5) Increasing access to early learning opportunities for 
     young children with special needs, including developmental 
     delays, by facilitating coordination with other programs 
     serving such young children.
       (6) Increasing access to existing early learning programs 
     by expanding the days or times that the young children are 
     served, by expanding the number of young children served, or 
     by improving the affordability of the programs for low-income 
     families.
       (7) Improving the quality of early learning programs 
     through professional development and training activities, 
     increased compensation, and recruitment and retention 
     incentives, for early learning providers.
       (8) Removing ancillary barriers to early learning, 
     including transportation difficulties and absence of programs 
     during nontraditional work times.
       (c) Requirements.--Each Lead State Agency designated under 
     section 810(c) and Local Councils receiving a grant under 
     this title shall ensure--
       (1) that Local Councils described in section 814 work with 
     local educational agencies to identify cognitive, social, 
     emotional, and motor developmental abilities which are 
     necessary to support children's readiness for school;
       (2) that the programs, services, and activities assisted 
     under this title will represent developmentally appropriate 
     steps toward the acquisition of those abilities; and
       (3) that the programs, services, and activities assisted 
     under this title collectively provide benefits for children 
     cared for in their own homes as well as children placed in 
     the care of others.
       (d) Sliding Scale Payments.--States and Local Councils 
     receiving assistance under this title shall ensure that 
     programs, services, and activities assisted under this title 
     which customarily require a payment for such programs, 
     services, or activities, adjust the cost of such programs, 
     services, and activities provided to the individual or the 
     individual's child based on the individual's ability to pay.

     SEC. 809. RESERVATIONS AND ALLOTMENTS.

       (a) Reservation for Indian Tribes, Alaska Natives, and 
     Native Hawaiians.--The Secretary shall reserve 1 percent of 
     the total amount appropriated under section 805 for each 
     fiscal year, to be allotted to Indian tribes, Regional 
     Corporations, and Native Hawaiian entities, of which--
       (1) 0.5 percent shall be available to Indian tribes; and
       (2) 0.5 percent shall be available to Regional Corporations 
     and Native Hawaiian entities.
       (b) Allotments.--From the funds appropriated under this 
     title for each fiscal year that are not reserved under 
     subsection (a), the Secretary shall allot to each State the 
     sum of--
       (1) an amount that bears the same ratio to 50 percent of 
     such funds as the number of children 4 years of age and 
     younger in the State bears to the number of such children in 
     all States; and
       (2) an amount that bears the same ratio to 50 percent of 
     such funds as the number of children 4 years of age and 
     younger living in families with incomes below the poverty 
     line in the State bears to the number of such children in all 
     States.
       (c) Minimum Allotment.--No State shall receive an allotment 
     under subsection (b) for a fiscal year in an amount that is 
     less than .40 percent of the total amount appropriated for 
     the fiscal year under this title.
       (d) Availability of Funds.--Any portion of the allotment to 
     a State that is not expended for activities under this title 
     in the fiscal year for which the allotment is made shall 
     remain available to the State for 2 additional years, after 
     which any unexpended funds shall be returned to the 
     Secretary. The Secretary shall use the returned funds to 
     carry out a discretionary grant program for research-based 
     early learning demonstration projects.
       (e) Data.--The Secretary shall make allotments under this 
     title on the basis of the most recent data available to the 
     Secretary.

     SEC. 810. GRANT ADMINISTRATION.

       (a) Federal Administrative Costs.--The Secretary may use 
     not more than 3 percent of the amount appropriated under 
     section 805 for a fiscal year to pay for the administrative 
     costs of carrying out this title, including the monitoring 
     and evaluation of State and local efforts.
       (b) State Administrative Costs.--A State that receives a 
     grant under this title may use--
       (1) not more than 2 percent of the funds made available 
     through the grant to carry out activities designed to 
     coordinate early learning programs on the State level, 
     including programs funded or operated by the State 
     educational agency, health, children and family, and human 
     service agencies, and any State-level collaboration or 
     coordination council involving early learning and education, 
     such as the entities funded under section 640(a)(5) of the 
     Head Start Act (42 U.S.C. 9835 (a)(5));

[[Page 26694]]

       (2) not more than 2 percent of the funds made available 
     through the grant for the administrative costs of carrying 
     out the grant program and the costs of reporting State and 
     local efforts to the Secretary; and
       (3) not more than 3 percent of the funds made available 
     through the grant for training, technical assistance, and 
     wage incentives provided by the State to Local Councils.
       (c) Lead State Agency.--
       (1) In general.--To be eligible to receive an allotment 
     under this title, the Governor of a State shall appoint, 
     after consultation with the leadership of the State 
     legislature, a Lead State Agency to carry out the functions 
     described in paragraph (2).
       (2) Lead state agency.--
       (A) Allocation of funds.--The Lead State Agency described 
     in paragraph (1) shall allocate funds to Local Councils as 
     described in section 812.
       (B) Functions of agency.--In addition to allocating funds 
     pursuant to subparagraph (A), the Lead State Agency shall--
       (i) advise and assist Local Councils in the performance of 
     their duties under this title;
       (ii) develop and submit the State application;
       (iii) evaluate and approve applications submitted by Local 
     Councils under section 813;
       (iv) ensure collaboration with respect to assistance 
     provided under this title between the State agency 
     responsible for education and the State agency responsible 
     for children and family services;
       (v) prepare and submit to the Secretary, an annual report 
     on the activities carried out in the State under this title, 
     which shall include a statement describing how all funds 
     received under this title are expended and documentation of 
     the effects that resources under this title have had on--

       (I) parental capacity to improve learning readiness in 
     their young children;
       (II) early childhood literacy;
       (III) linkages among early learning programs;
       (IV) linkages between early learning programs and health 
     care services for young children;
       (V) access to early learning activities for young children 
     with special needs;
       (VI) access to existing early learning programs through 
     expansion of the days or times that children are served;
       (VII) access to existing early learning programs through 
     expansion of the number of young children served;
       (VIII) access to and affordability of existing early 
     learning programs for low-income families;

       (IX) the quality of early learning programs resulting from 
     professional development, and recruitment and retention 
     incentives for caregivers; and
       (X) removal of ancillary barriers to early learning, 
     including transportation difficulties and absence of programs 
     during nontraditional work times; and

       (vi) ensure that training and research is made available to 
     Local Councils and that such training and research reflects 
     the latest available brain development and early childhood 
     development research related to early learning.

     SEC. 811. STATE REQUIREMENTS.

       (a) Eligibility.--To be eligible for a grant under this 
     title, a State shall--
       (1) ensure that funds received by the State under this 
     title shall be subject to appropriation by the State 
     legislature, consistent with the terms and conditions 
     required under State law;
       (2) designate a Lead State Agency under section 810(c) to 
     administer and monitor the grant and ensure State-level 
     coordination of early learning programs;
       (3) submit to the Secretary an application at such time, in 
     such manner, and accompanied by such information as the 
     Secretary may require;
       (4) ensure that funds made available under this title are 
     distributed on a competitive basis throughout the State to 
     Local Councils serving rural, urban, and suburban areas of 
     the State; and
       (5) assist the Secretary in developing mechanisms to ensure 
     that Local Councils receiving funds under this title comply 
     with the requirements of this title.
       (b) State Preference.--In awarding grants to Local Councils 
     under this title, the State, to the maximum extent possible, 
     shall ensure that a broad variety of early learning programs 
     that provide a continuity of services across the age spectrum 
     assisted under this title are funded under this title, and 
     shall give preference to supporting--
       (1) a Local Council that meets criteria, that are specified 
     by the State and approved by the Secretary, for qualifying as 
     serving an area of greatest need for early learning programs; 
     and
       (2) a Local Council that demonstrates, in the application 
     submitted under section 813, the Local Council's potential to 
     increase collaboration as a means of maximizing use of 
     resources provided under this title with other resources 
     available for early learning programs.
       (c) Local Preference.--In awarding grants under this title, 
     Local Councils shall give preference to supporting--
       (1) projects that demonstrate their potential to 
     collaborate as a means of maximizing use of resources 
     provided under this title with other resources available for 
     early learning programs;
       (2) programs that provide a continuity of services for 
     young children across the age spectrum, individually, or 
     through community-based networks or cooperative agreements; 
     and
       (3) programs that help parents and other caregivers promote 
     early learning with their young children.
       (d) Performance Goals.--
       (1) Assessments.--Based on information and data received 
     from Local Councils, and information and data available 
     through State resources, the State shall biennially assess 
     the needs and available resources related to the provision of 
     early learning programs within the State.
       (2) Performance goals.--Based on the analysis of 
     information described in paragraph (1), the State shall 
     establish measurable performance goals to be achieved through 
     activities assisted under this title.
       (3) Requirement.--The State shall award grants to Local 
     Councils only for purposes that are consistent with the 
     performance goals established under paragraph (2).
       (4) Report.--The State shall report to the Secretary 
     annually regarding the State's progress toward achieving the 
     performance goals established in paragraph (2) and any 
     necessary modifications to those goals, including the 
     rationale for the modifications.
       (5) Improvement plans.--If the Secretary determines, based 
     on the State report submitted under paragraph (4), that the 
     State is not making progress toward achieving the performance 
     goals described in paragraph (2), then the State shall submit 
     a performance improvement plan to the Secretary, and 
     demonstrate reasonable progress in implementing such plan, in 
     order to remain eligible for funding under this title.

     SEC. 812. LOCAL ALLOCATIONS.

       (a) In General.--The Lead State Agency shall allocate to 
     Local Councils in the State not less than 93 percent of the 
     funds provided to the State under this title for a fiscal 
     year.
       (b) Limitation.--The Lead State Agency shall allocate funds 
     provided under this title on the basis of the population of 
     the locality served by the Local Council.

     SEC. 813. LOCAL APPLICATIONS.

       (a) In General.--To be eligible to receive assistance under 
     this title, the Local Council shall submit an application to 
     the Lead State Agency at such time, in such manner, and 
     containing such information as the Lead State Agency may 
     require.
       (b) Contents.--Each application submitted pursuant to 
     subsection (a) shall include a statement ensuring that the 
     local government entity, Indian tribe, Regional Corporation, 
     or Native Hawaiian entity has established or designated a 
     Local Council under section 814, and the Local Council has 
     developed a local plan for carrying out early learning 
     programs under this title that includes--
       (1) a needs and resources assessment concerning early 
     learning services and a statement describing how early 
     learning programs will be funded consistent with the 
     assessment;
       (2) a statement of how the Local Council will ensure that 
     early learning programs will meet the performance goals 
     reported by the Lead State Agency under this title; and
       (3) a description of how the Local Council will form 
     collaboratives among local youth, social service, and 
     educational providers to maximize resources and concentrate 
     efforts on areas of greatest need.

     SEC. 814. LOCAL ADMINISTRATION.

       (a) Local Council.--
       (1) In general.--To be eligible to receive funds under this 
     title, a local government entity, Indian tribe, Regional 
     Corporation, or Native Hawaiian entity, as appropriate, shall 
     establish or designate a Local Council, which shall be 
     composed of--
       (A) representatives of local agencies directly affected by 
     early learning programs assisted under this title;
       (B) parents;
       (C) other individuals concerned with early learning issues 
     in the locality, such as representative entities providing 
     elementary education, child care resource and referral 
     services, early learning opportunities, child care, and 
     health services; and
       (D) other key community leaders.
       (2) Designating existing entity.--If a local government 
     entity, Indian tribe, Regional Corporation, or Native 
     Hawaiian entity has, before the date of enactment of the 
     Early Learning Opportunities Act, a Local Council or a 
     regional entity that is comparable to the Local Council 
     described in paragraph (1), the entity, tribe or corporation 
     may designate the council or entity as a Local Council under 
     this title, and shall be considered to have established a 
     Local Council in compliance with this subsection.
       (3) Functions.--The Local Council shall be responsible for 
     preparing and submitting the application described in section 
     813.
       (b) Administration.--
       (1) Administrative costs.--Not more than 3 percent of the 
     funds received by a Local Council under this title shall be 
     used to pay for the administrative costs of the Local Council 
     in carrying out this title.
       (2) Fiscal agent.--A Local Council may designate any 
     entity, with a demonstrated capacity for administering 
     grants, that is affected by, or concerned with, early 
     learning issues, including the State, to serve as fiscal 
     agent for the administration of grant funds received by the 
     Local Council under this title.

             TITLE IX--RURAL EDUCATION ACHIEVEMENT PROGRAM

     SEC. 901. RURAL EDUCATION INITIATIVE.

       Subpart 2 of part J of title X of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8291 et seq.) is 
     amended to read as follows:

                ``Subpart 2--Rural Education Initiative

     ``SEC. 10971. SHORT TITLE.

       ``This subpart may be cited as the `Rural Education 
     Achievement Program'.

[[Page 26695]]



     ``SEC. 10972. PURPOSE.

       ``It is the purpose of this subpart to address the unique 
     needs of rural school districts that frequently--
       ``(1) lack the personnel and resources needed to compete 
     for Federal competitive grants; and
       ``(2) receive formula allocations in amounts too small to 
     be effective in meeting their intended purposes.

     ``SEC. 10973. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart $62,500,000 for fiscal year 2001.

     ``SEC. 10974. FORMULA GRANT PROGRAM AUTHORIZED.

       ``(a) Alternative Uses.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, an eligible local educational agency may use the 
     applicable funding, that the agency is eligible to receive 
     from the State educational agency for a fiscal year, to carry 
     out local activities authorized in part A of title I, section 
     2210(b), section 3134, or section 4116.
       ``(2) Notification.--An eligible local educational agency 
     shall notify the State educational agency of the local 
     educational agency's intention to use the applicable funding 
     in accordance with paragraph (1) not later than a date that 
     is established by the State educational agency for the 
     notification.
       ``(b) Eligibility.--A local educational agency shall be 
     eligible to use the applicable funding in accordance with 
     subsection (a) if--
       ``(1) the total number of students in average daily 
     attendance at all of the schools served by the local 
     educational agency is less than 600; and
       ``(2) all of the schools served by the local educational 
     agency are designated with a School Locale Code of 7 or 8, as 
     determined by the Secretary of Education.
       ``(c) Applicable Funding.--In this section, the term 
     `applicable funding' means funds provided under each of 
     titles II, IV, and VI, except for funds made available under 
     section 321 of the Department of Education Appropriations 
     Act, 2001.
       ``(d) Disbursal.--Each State educational agency that 
     receives applicable funding for a fiscal year shall disburse 
     the applicable funding to local educational agencies for 
     alternative uses under this section for the fiscal year at 
     the same time that the State educational agency disburses the 
     applicable funding to local educational agencies that do not 
     intend to use the applicable funding for such alternative 
     uses for the fiscal year.
       ``(e) Supplement Not Supplant.--Funds made available under 
     this section shall be used to supplement and not supplant any 
     other State or local education funds.
       ``(f) Special Rule.--References in Federal law to funds for 
     the provisions of law set forth in subsection (c) may be 
     considered to be references to funds for this section.
       ``(g) Construction.--Nothing in this subpart shall be 
     construed to prohibit a local educational agency that enters 
     into cooperative arrangements with other local educational 
     agencies for the provision of special, compensatory, or other 
     education services pursuant to State law or a written 
     agreement from entering into similar arrangements for the use 
     or the coordination of the use of the funds made available 
     under this subpart.

     ``SEC. 10975. COMPETITIVE GRANT PROGRAM AUTHORIZED.

       ``(a) In General.--The Secretary is authorized to award 
     grants to eligible local educational agencies to enable the 
     local educational agencies to carry out local activities 
     authorized in part A of title I, section 2210(b), section 
     3134, or section 4116.
       ``(b) Eligibility.--A local educational agency shall be 
     eligible to receive a grant under this section if--
       ``(1) the total number of students in average daily 
     attendance at all of the schools served by the local 
     educational agency is less than 600; and
       ``(2) all of the schools served by the local educational 
     agency are designated with a School Locale Code of 7 or 8, as 
     determined by the Secretary of Education.
       ``(c) Amount.--
       ``(1) In general.--The Secretary shall award a grant to a 
     local educational agency under this section for a fiscal year 
     in an amount equal to the amount determined under paragraph 
     (2) for the fiscal year minus the total amount received under 
     the provisions of law described under section 10974(c) for 
     the fiscal year.
       ``(2) Determination.--The amount referred to in paragraph 
     (1) is equal to $100 multiplied by the total number of 
     students in excess of 50 students that are in average daily 
     attendance at the schools served by the local educational 
     agency, plus $20,000, except that the amount may not exceed 
     $60,000.
       ``(3) Census determination.--
       ``(A) In general.--Each local educational agency desiring a 
     grant under this section shall determine for each year the 
     number of kindergarten through grade 12 students in average 
     daily attendance at the schools served by the local 
     educational agency during the period beginning or the first 
     day of classes and ending on December 1.
       ``(B) Submission.--Each local educational agency shall 
     submit the number described in subparagraph (A) to the 
     Secretary not later than March 1 of each year.
       ``(4) Penalty.--If the Secretary determines that a local 
     educational agency has knowingly submitted false information 
     under paragraph (3) for the purpose of gaining additional 
     funds under this section, then the local educational agency 
     shall be fined an amount equal to twice the difference 
     between the amount the local educational agency received 
     under this section, and the correct amount the local 
     educational agency would have received under this section if 
     the agency had submitted accurate information under paragraph 
     (3).
       ``(d) Disbursal.--The Secretary shall disburse the funds 
     awarded to a local educational agency under this section for 
     a fiscal year not later than July 1 of that year.
       ``(e) Supplement Not Supplant.--Funds made available under 
     this section shall be used to supplement and not supplant any 
     other State or local education funds.

     ``SEC. 10976. ACCOUNTABILITY.

       ``(a) Academic Achievement.--
       ``(1) In general.--Each local educational agency that uses 
     or receives funds under section 10974 or 10975 for a fiscal 
     year shall--
       ``(A) administer an assessment that is used statewide and 
     is consistent with the assessment described in section 
     1111(b), to assess the academic achievement of students in 
     the schools served by the local educational agency; or
       ``(B) in the case of a local educational agency for which 
     there is no statewide assessment described in subparagraph 
     (A), administer a test, that is selected by the local 
     educational agency, to assess the academic achievement of 
     students in the schools served by the local educational 
     agency.
       ``(2) Special rule.--Each local educational agency that 
     uses or receives funds under section 10974 or 10975 shall use 
     the same assessment or test described in paragraph (1) for 
     each year of participation in the program carried out under 
     such section.
       ``(b) State Educational Agency Determination Regarding 
     Continuing Participation.--Each State educational agency that 
     receives funding under the provisions of law described in 
     section 10974(c) shall--
       ``(1) after the third year that a local educational agency 
     in the State participates in a program authorized under 
     section 10974 or 10975 and on the basis of the results of the 
     assessments or tests described in subsection (a), determine 
     whether the students served by the local educational agency 
     participating in the program performed better on the 
     assessments or tests after the third year of the 
     participation than the students performed on the assessments 
     or tests after the first year of the participation;
       ``(2) permit only the local educational agencies that 
     participated in the program and served students that 
     performed better on the assessments or tests, as described in 
     paragraph (1), to continue to participate in the program for 
     an additional period of 3 years; and
       ``(3) prohibit the local educational agencies that 
     participated in the program and served students that did not 
     perform better on the assessments or tests, as described in 
     paragraph (1), from participating in the program, for a 
     period of 3 years from the date of the determination.

     ``SEC. 10977. RATABLE REDUCTIONS IN CASE OF INSUFFICIENT 
                   APPROPRIATIONS.

       ``(a) In General.--If the amount appropriated for any 
     fiscal year and made available for grants under this subpart 
     is insufficient to pay the full amount for which all agencies 
     are eligible under this subpart, the Secretary shall ratably 
     reduce each such amount.
       ``(b) Additional Amounts.--If additional funds become 
     available for making payments under paragraph (1) for such 
     fiscal year, payments that were reduced under subsection (a) 
     shall be increased on the same basis as such payments were 
     reduced.

     ``SEC. 10978. APPLICABILITY.

       ``Sections 10951 and 10952 shall not apply to this 
     subpart.''.
       This Act may be cited as the ``Departments of Labor, Health 
     and Human Services, and Education, and Related Agencies 
     Appropriations Act, 2001''.

  DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND 
                    RELATED AGENCIES APPROPRIATIONS

       Following is explanatory language on H.R. 5656, as 
     introduced on December 14, 2000.
       The conferees on H.R. 4577 agree with the matter included 
     in H.R. 5656 and enacted in this conference report by 
     reference and the following description. This bill was 
     developed through negotiations by the conferees on the 
     differences in H.R. 4577. References in the following 
     description to the ``conference agreement'' mean the matter 
     included in the introduced bill enacted by this conference 
     report. References to the House bill mean the House passed 
     H.R. 4577. References to the Senate bill or to the Senate 
     amendment mean the Senate passed version of H.R. 4577.
       In implementing this agreement, the Departments and 
     agencies should comply with the language and instructions set 
     forth in House Report 106-645 and Senate Report 106-293.
       In the case where the language and instructions 
     specifically address the allocation of funds, the Departments 
     and agencies are to follow the funding levels specified in 
     the Congressional budget justifications accompanying the 
     fiscal year 2001 budget or the underlying authorizing statute 
     and should give full consideration to all items, including 
     items allocating specific funding included in the House and 
     Senate reports. With respect to the provisions in the House 
     and Senate reports that specifically allocate funds each has 
     been reviewed and those that are jointly

[[Page 26696]]

     concurred in have been included in this joint statement.
       The conferees specifically endorse the provisions of the 
     House Report 105-205 directing ``* * * the Departments of 
     Labor, Health and Human Services, and Education and the 
     Social Security Administration and the Railroad Retirement 
     Board to submit operating plans with respect to discretionary 
     appropriations to the House and Senate Committees on 
     Appropriations. These plans, which are to be submitted within 
     30 days of the final passage of the bill, must be signed by 
     the respective Departmental Secretaries, the Social Security 
     Commissioner and the Chairman of the Railroad Retirement 
     Board.''
       The conferees expect the Departments and agencies covered 
     by this directive to meet with the House and Senate 
     Committees as soon as possible after enactment of the bill to 
     develop a methodology to assure adequate and timely 
     information on the allocation of funds within accounts within 
     this conference report while minimizing the need for 
     unnecessary and duplicative submissions.
       The Departments of Labor, Health and Human Services, and 
     Education, and Related Agencies Appropriations Act, 2001, put 
     in place by this bill, incorporates the following agreements 
     of the managers:

                      TITLE I--DEPARTMENT OF LABOR

                 Employment and Training Administration


                    Training and Employment Services

       The conference agreement includes $5,670,805,000 for 
     training and employment services instead of $5,015,495,000 as 
     proposed by the House and $5,453,141,000 as proposed by the 
     Senate. Of the amount appropriated, $2,463,000,000 is an 
     advance appropriation for fiscal year 2002. The conference 
     agreement includes $1,400,000,000, which is the House level 
     for Job Corps, but eliminates the October 1, 2000 
     availability of funds for hiring Business and Community 
     Liaisons. The conference agreement includes $15,000,000 for 
     this purpose, but the funds are made available on July 1, 
     2001, the normal funding cycle for Job Corps operations.
       The conference agreement includes $586,487 made available 
     for Job Corps operating expenses to be paid to the city of 
     Vergennes, Vermont in settlement of the city's claim.
       The conference agreement includes $1,590,040,000 for the 
     Dislocated Worker program, as a step toward providing all 
     dislocated workers who want and need assistance the resources 
     to train for or find new jobs.
       The conference agreement includes $1,102,965,000 for Youth 
     Activities. This increase will allow local communities to 
     address the reduction in the number of youth served in this 
     year's summer jobs program resulting from a shift to 
     comprehensive services, to establish new local youth 
     councils, and to implement other reforms to youth training 
     activities and services, all required under the Workforce 
     Investment Act.
       At the time the conferees acted on this bill, an increase 
     in the minimum wage had not yet been enacted by Congress. If 
     Congress enacts an increase in the minimum wage prior to the 
     beginning of program year 2001, which begins April 1, 2001 
     for the youth activities grants, the conferees expect the 
     Administration to submit a supplemental request for the 2001 
     youth program as part of its fiscal year 2002 budget request. 
     The conferees intend that the number of program participants 
     to be served will not be decreased as a result of any minimum 
     wage increase.
       The conference agreement includes $275,000,000 to expand to 
     more communities the Youth Opportunity Grants aimed at 
     increasing the long-term employment of youth who live in 
     empowerment zones, enterprise communities, and other high-
     poverty areas.
       The conference agreement includes $55,000,000 for the 
     Responsible Reintegration for Young Offenders initiative to 
     address youth offender issues. This new initiative involving 
     DOL, HHS, and DOJ, will build on work begun earlier.
       The conference agreement includes language authorizing the 
     use of funds under the dislocated workers program for 
     projects that provide assistance to new entrants in the 
     workforce and incumbent workers as proposed by the Senate. 
     The conference agreement also includes language to waive a 10 
     percent limitation in the Workforce Investment Act with 
     respect to the use of discretionary funds to carry out 
     demonstration and pilot projects, multi-service projects and 
     multi-state projects with regard to dislocated workers and to 
     waive certain other provisions in that Act. The language is 
     similar to that in the Senate bill. The House bill contained 
     no similar provisions.
       The conference agreement includes a citation to the Women 
     in Apprenticeship and Nontraditional Occupations Act as 
     proposed by the House. The Senate bill did not cite this Act.
       The conferees direct the Department, within the funds 
     appropriated for fiscal year 2000 for National Emergency 
     Grants within the Dislocated Worker program, to respond to an 
     anticipated request by the State of Wisconsin for emergency 
     funds to address layoffs in the community of Wisconsin 
     Rapids.
       The conferees direct the Department, within the funds 
     appropriated for FY 2000 for National Emergency Grants within 
     the Dislocated Worker program, to provide in response to an 
     anticipated request by the State of North Carolina for 
     $175,000 in emergency funds to address major layoffs in the 
     community of Gaston County.
       With respect to the projects listed below for both the 
     Dislocated Worker program and the Pilots and Demonstrations 
     authority, the conferees acknowledge changes under the 
     Workforce Investment Act to develop and implement techniques 
     and approaches, and demonstrate the effectiveness of 
     specialized methods of addressing the employment and training 
     needs of individuals. The conferees encourage the Department 
     to ensure that these projects are coordinated with local 
     Workforce Investment Boards. The conferees also encourage the 
     Department of Labor to ensure that project performance is 
     adequately documented and evaluated. The conference agreement 
     includes the following amounts for the following projects and 
     activities:
     Dislocated workers
       --$600,000 to develop and implement technology training 
     through the Resource Recovery Program--Campbellsville 
     University, TN;
       --$500,000 for Workforce Development project to retrain 
     older incumbent workers for Montana workforce--Montana State 
     University, Billings;
       --$1,600,000 to the Montana Tech Foundation for the 
     Northwest Regional Miner--Training and Research Facility--
     Butte, Montana;
       --$800,000 for the River Valley Machine Tool Technology 
     program to retrain displaced workers--Central Maine Technical 
     College;
       --$1,400,000 for Coastal Enterprises Inc.'s New Enterprise 
     Initiative Fund (NEIF) to provide training for dislocated 
     workers to transition into new jobs--Maine;
       --$650,000 for the Iowa Training Opportunities Program;
       --$927,000 for the JobLinks Program;
       --$50,000 for Clemson University to retrain tobacco 
     farmers;
       --$185,000 for the Hawaii Department of Labor/Kauai 
     Cooperative Extension;
       --$464,000 for High Tech Training--Maui, Hawaii;
       --$861,000 for the Clayton College and State University in 
     Georgia for a virtual education and training project;
       --$184,000 for the Adult Computer Skills Training 
     Initiative (ACSTI) through the Education and Research 
     Consortium of Western North Carolina, Inc.;
       --$464,000 for the Bethel Native Corp.--Alaska; and
       --$500,000 for the University of Alaska/Ketchikan Shipyards 
     training program for shipyard workers.
     Pilots and demonstrations
       --$1,275,000 for the Mott Community College Workforce 
     Development Institute for Manufacturing Simulation--access to 
     electronic library of technology, developed as part of DOL's 
     America's Learning Exchange--Michigan;
       --$1,000,000 for Jobs for America's Graduates, School-to-
     Work projects for at-risk young people;
       --$500,000 to the University of Mississippi for Workforce 
     training to support real time captioning initiatives for the 
     hearing disabled--Oxford, Mississippi;
       --$750,000 for Technology Tool Kit to train at-risk young 
     people in occupations related to the use of automated 
     identification technology--Mississippi Valley State 
     University;
       --$850,000 to train Northern Maine's workforce for 
     employment in the metal trades--Northern Maine Technical 
     College;
       --$691,000 to the San Diego State University Foundation to 
     implement innovative high-tech training programs;
       --$900,000 for the South Dakota Intertribal Bison 
     Cooperative;
       --$700,000 for the Greater Columbus Ohio Chamber of 
     Commerce Career Academies program--project to design and test 
     programs in partnership with workforce development system;
       --$250,000 for Job Corps of North Dakota for the Fellowship 
     Executive Training Program;
       --$276,000 to the City of Monrovia, CA to train youth in 
     information technologies;
       --$1,059,000 to the Californina State Polytechnic 
     University in Pomona, CA to develop technology training 
     programs;
       --$921,000 to Precision Manufacturing Institute in 
     Meadville, PA for training in the latest technology in the 
     tooling and machine trades;
       --$921,000 to Enterprise State Junior College in 
     Enterprise, AL for technology training in the College's 
     Center for Higher Technology;
       --$369,000 to Employment Solutions in Lexington, KY;
       --$855,000 to Florida Community College at Jacksonville for 
     aircraft maintenance training at the Aviation/Aerospace 
     Center of Excellence;
       --$92,000 to the Chesapeake Center for Youth Development in 
     Baltimore, MD for serving at-risk youth;
       --$276,000 to Benedictine Programs and Services in Ridgely, 
     MD for serving at-risk youth through the Industrial Training 
     Center;
       --$92,000 to Green Thumb, Inc. to conduct a program for 
     low-income elders to develop entrepreneurial skills that 
     utilize e-commerce and IT in Wadena, MN;

[[Page 26697]]

       --$500,000 for Kirkwood Community College and ACT, Inc. for 
     workforce skills development in Iowa;
       --$500,000 for SMART Partner programs high-tech skills 
     training through establishment of the Virtual Advanced 
     Manufacturing Training Center--Des Moines Area Community 
     College, Iowa;
       --$1,036,000 to the National Institue for Metalworking 
     Skills in Fairfax, VA to serve youth and adults in the area's 
     metalworking industry;
       --$464,000 for the American Indian Science and Engineering 
     Society--Rural Computer Utilizaton Training;
       --$464,000 for the Maui Economic Development Board--Rural 
     Computer Training;
       --$2,900,000 for the Remote Rural Hawaii Job Training 
     project for low income youth and adults;
       --$3,200,000 for Samoan/Asian Pacific Job Training--Hawaii;
       --$4,000,000 for Training and Education Opportunities--
     University of Hawaii at Maui;
       --$200,000 for the Vermont Information Technology Center 
     model information technology training initiative--Champlain 
     College, Burlington, VT;
       --$750,000 for the Vermont Department of Employment and 
     Training one-stop career resource centers;
       --$1,900,000 for the North Country Career Center model 
     education and training program--Newport, VT;
       --$92,000 for the Westchester-Putnam Counties Consortium 
     for Worker Education and Training, Inc. for apprenticeship 
     and training programs to serve the NY construction industry;
       --$485,000 for Waukesha, Wisconsin, workforce training for 
     economically disadvantaged youth and adults at La Casa de 
     Esperanza;
       --$550,000 for the Dream Center to provide job and training 
     skills for new labor market entrants or reentrants--LA, CA;
       --$300,000 for VT Technical College--Technology Training 
     Initiative;
       --$880,000 for Focus:HOPE in Detroit for an Information 
     Technologies Center that provides education and training 
     programs to women and minorities;
       --$691,000 to Campbellsville (KY) Industrial Authority for 
     programs to upgrade the information technology skills in the 
     KY community;
       --$230,000 to Career Visions, Inc. in Louisville, KY to 
     pilot computer-based assistive technology training;
       --$276,000 for Career Resources, Inc. in Louisville, KY to 
     develop a basic computer training program focusing on 
     workplace applications;
       --$461,000 to the University of Northern Iowa for a program 
     to integrate immigrants and refugees into the workforce;
       --$493,000 to the Greater Sacramento Urban League, CA for 
     an Urban Achievement Program targeting training, employment 
     and support for urban youth;
       --$921,000 to Jones County Junior College in Ellisville, MS 
     for development and implementation of a technology training 
     program;
       --$921,000 for Haymarket Center in Chicago, IL, to provide 
     training services through the Family Enrichment Center;
       --$921,000 to National Student Partnerships in Washington, 
     DC;
       --$92,000 to the International Agri-Center, in Tulare, CA 
     for a E-Commerce training initiative;
       --$650,000 for the UNLV Center for Workforce Development 
     and Occupational Research;
       --$100,000 for the Community Self-Empowerment & Employment 
     Program (CSEEP) (PA)--comprehensive employment readiness, job 
     development, job placement, and case management for area low-
     income residents--Pennsylvania;
       --$500,000 for Philadelphia Revitalization and Education 
     Program (PREP) to train minorities for careers in the 
     building trades through its Diversity Apprenticeship Project 
     (DAP)--Pennsylvania;
       --$921,000 to Wrightco Technologies, Inc. for information 
     technology training through a ``Fast Track to the Future'' 
     program;
       --$480,000 for hands-on manufacturing training at the 
     Manufacturing and Applied Technology Training Center (MATC)--
     Central Oregon Community College;
       --$100,000 for BASE, Inc. to provide occupational skills 
     through its Youth Competency Development Program and training 
     in the construction trades for low-income/minority women 
     through partnership with Thaddeus Stevens State College of 
     Technology--Lancaster, PA;
       --$250,000 for Green Thumb, Inc.--conduct program for low-
     income elders to develop computer skills--Pennsylvania;
       --$500,000 for Allegheny County, Pennsylvania, training of 
     information technology workers;
       --$300,000 for Lehigh University Job Training for hard to 
     serve disadvantaged youth in manufacturing sector---PA;
       --$638,000 for the Collegiate Consortium for Workforce & 
     Economic Development, Philadelphia Naval Business Center--PA;
       --$232,000 for the Yukon Kushokwim Health Corporation--
     Alaska;
       --$300,000 for Koahnic Broadcasting--Alaska;
       --$550,000 for Kawerak, Inc. Vocational Training for Alaska 
     Natives--Nome, Alaska;
       --$800,000 for Ilisagvik College--Barrow, Alaska;
       --$927,000 for the Alaska Federation of Natives Foundation;
       --$900,000 for Tlingit-Haida project--job training to 
     unemployed natives in southeast Alaska;
       --$2,300,000 for Alaska Works, Construction Job Training--
     Fairbanks, Alaska;
       --$2,500,000 for the University of Alaska Fairbanks in 
     consultation with Western Alaska regional Native non-profit 
     corporations to conduct job training programs;
       --$1,250,000 for the Alaska Native Heritage Center, and 
     Bishop Museum in Hawaii;
       --$921,000 for Transylvania Vocational Services, Inc. in 
     Brevard, NC for training people with developmental 
     disabilities;
       --$184,000 for the More Opportunities for Viable Employment 
     program through the Tulare (CA) County Office of Education, 
     Services for Education and Employment Division;
       --$276,000 to the South Metro Regional Leadership Center in 
     University Park, IL;
       --$2,037,000 to the Lawton & Rhea Chiles Center for Healthy 
     Mothers and Babies in Tampa, FL for training 
     paraprofessionals in the health-care field;
       --$170,000 for Community Technology and Education Center at 
     the Los Angeles River Center and Gardens in California for a 
     job training initiative;
       --$43,000 to Signature Academy Inc., to further develop the 
     Exodus to Excellence Youth Program;
       --$850,000 for Sinclair Community College, Dayton, Ohio for 
     an out-of-school youth training project;
       --$850,000 to Kingston-Newburgh Enterprise Community, 
     Newburgh, New York, for a workforce development project;
       --$213,000 to the Sullivan-Warwarsing Rural Economic Area 
     Partnership, in Ferndale, New York for the planning and 
     development of a manufacturing technology training center;
       --$723,000 for Reading Berks Emergency Shelter, Reading, 
     Pennsylvania to provide employment and training opportunities 
     for disadvantaged individuals;
       --$213,000 to the Melwood Horticultural Training Center, 
     Upper Marlboro, Maryland, for workforce training for the 
     disabled;
       --$340,000 to the Safer Foundation, Chicago, Illinois for a 
     workplace acclimation program for ex-offenders;
       --$170,000 for South Suburban College, South Holland, 
     Illinois to expand a bus mechanic workforce development 
     program;
       --$102,000 to the Dallas Urban League, Inc. in Dallas, 
     Texas for the ACES program to provide literacy and job skills 
     to disadvantaged youth and adults;
       --$765,000 to The West Side Industrial Retention and 
     Expansion Network (WIRE-Net), Cleveland, Ohio;
       --$43,000 to Full Employment Council in partnership with 
     the Greater Kansas City AFL-CIO in Missouri for Project 
     Prepare;
       --$85,000 to Alderson-Broaddus College, College Hill, 
     Philippi, West Virginia for a collaborative information 
     technology training program;
       --$595,000 for the Hiram G. Andrews Rehabilitation Center 
     in Johnstown, Pennsylvania to expand a job training program 
     for people with disabilities;
       --$590,000 for the Northwest Concentrated Employment 
     Program in Ashland, Wisconsin, for an online skill matching 
     initiative tied to the O*Net database;
       --$510,000 to the Berkshire Applied Technology Council, 
     Inc., Pittsfield, Massachusetts to expand training and 
     develop distance learning;
       --$1,275,000 to the San Francisco Department of Human 
     Services, California, for its Community Jobs Initiative;
       --$616,000 to the Charity Cultural Services Center, San 
     Francisco, California, for job training;
       --$468,000 for the Rebirth of Englewood Community 
     Development Corporation in Chicago, Illinois for a job 
     training initiative in partnership with the ITT Research 
     Institute;
       --$468,000 for the Northern Great Plains Initiative for 
     Rural Development, Crookston, Minnesota, to provide education 
     and training in technology support;
       --$298,000 to Kent State University in Ohio for the Ohio 
     Employee Ownership Center, for workplace development; and
       --$425,000 to Rhode Island Department of Labor and 
     Training, Providence, Rhode Island, for a job training 
     program;
       There is a shortage of trained closed captioners to enable 
     the deaf and hard of hearing community to get news and other 
     vital information from live television. In order to meet the 
     requirements set forth by the Telecommunications Act of 1996, 
     there is an urgent need for pilot programs to increase the 
     availability of trained closed captioners. The conferees urge 
     the Employment and Training Administration to invest in and 
     support research and pilot programs, which would allow for an 
     adequate number of captioners to be trained.
       The conferees believe that the Association of Farmworker 
     Opportunity Programs provides valuable technical assistance 
     and training to grantees and has distinguished itself as a 
     tremendous resource. Its Children in the Fields Campaign 
     provides information, education, and technical assistance 
     related to child labor in agriculture. The Campaign also 
     provides other assistance related

[[Page 26698]]

     to employment, training (including pesticide and other worker 
     safety training for children and adults). The Department is 
     encouraged to continue the services that the Association 
     provides in these areas.
       The conferees urge the Employment & Training Administration 
     to demonstrate programs that build upon identified best 
     practices such as the Public/Private Venture's model 
     workplace mentoring pilot program.
       The conferees are concerned with the lack of mentoring and 
     other support services available to the youth of incarcerated 
     parents or legal guardians. The conferees urge the Employment 
     and Training Administration to fund demonstration programs to 
     meet the special needs of these youth. These activities 
     should build upon identified best practices such as the U.S. 
     Dream Academy's model which helps youths with parents or 
     guardians involved in life cycles of incarceration and 
     release. Its aim is to help these youths become good and 
     productive citizens.
       The fiscal year 2000 conference report (H. Rept. 106-479) 
     included $1,000,000 for the Massachusetts Corporation for 
     Business, Work and Learning for the International 
     Shipbuilding Training Demonstration project. However, the 
     reopening of the Fore River Shipyard in Quincy has been 
     delayed. Workers dislocated from the closing of the shipyard 
     still need job training; therefore, the Department is 
     directed to use the $1,000,000 in the fiscal year 2000 
     appropriation to fund the Corporation for Business, Work and 
     Learning for the Training of workers in the Quincy area for 
     jobs within the Marine and Shipbuilding industries.


     State Unemployment Insurance and Employment Service Operations

       The conference agreement includes $3,365,698,000 for state 
     unemployment insurance and employment service operations 
     instead of $3,097,790,000 as proposed by the House and 
     $3,249,430,000 as proposed by the Senate. The agreement 
     includes $35,000,000 instead of the $25,000,000 proposed by 
     the Senate for reemployment services grants to insure that 
     unemployment insurance claimants will be able to get the 
     customized re-employment services they need to speed their 
     reentry to employment. The House provided no funding for this 
     program.
       The conference agreement includes $26,100,000 for the 
     foreign labor certification program as proposed by the House 
     instead of $25,600,000 as proposed by the Senate. For one-
     stop centers/labor market information, the agreement includes 
     $150,000,000 instead of the $110,000,000 proposed by the 
     Senate. The House provided no funding for this program. These 
     funds will be used to support infrastructure upgrades at the 
     State level for one-stop career center system operations, 
     labor market information, and integrated services to 
     employers and job seeker customers.

                         Program Administration

       The conference agreement includes $159,158,000 for program 
     administration instead of $146,000,000 as proposed by the 
     House and $156,158,000 as proposed by the Senate. The 
     detailed table at the end of this joint statement reflects 
     the activity distribution agreed upon. The conference 
     agreement also includes funding for management and oversight 
     of pilot and demonstration projects and additional 
     administrative funding for backlog reduction in the alien 
     labor certification program as listed in the Senate report.

              Pension and Welfare Benefits Administration


                         Salaries and Expenses

       The conference agreement includes $107,832,000 for the 
     pension and welfare benefits administration, salaries and 
     expenses instead of $98,934,000 as proposed by the House and 
     $103,342,000 as proposed by the Senate. The increase will 
     fully fund the request for expanded health and pension 
     education and outreach efforts and enhanced pension 
     enforcement.

                  Pension Benefit Guaranty Corporation

       The conference agreement includes $11,652,000 for the 
     administrative expense limitation as proposed by the Senate 
     instead of $11,148,000 as proposed by the House.

                  Employment Standards Administration


                         Salaries and Expenses

       The conference agreement includes $363,476,000 for the 
     employment standards administration, salaries and expenses 
     instead of $338,770,000 as proposed by the House and 
     $352,764,000 as proposed by the Senate. This amount fully 
     funds the request for ESA, including the Wage and Hour 
     Division's request to expand its domestic child labor 
     compliance and enforcement efforts; and the Office of Federal 
     Contractor Compliance's activities to increase outreach, 
     education, and technical assistance to federal contractors 
     through industry partnerships on equal pay issues; and a 
     customer communications initiative in the Office of Worker's 
     Compensation.
       On contracts for the provision of debt collection services, 
     the Department of Labor shall continue to recognize the 
     payment of commissions in the determination of McNamara-
     O'Hara Service Contract Act (SCA) wage rates and shall 
     continue to recognize such payments as an offset against an 
     employer's SCA prevailing wage obligation. In addition, the 
     Department is encouraged to consider the special 
     circumstances for contingency fee-based debt collection 
     contracts and the potential fluctuations in commissions, 
     particularly for less experienced employees.


                            Special Benefits

       The conference agreement includes bill language to allow 
     the Secretary to use fair share collections to fund capital 
     investment projects and special investments to strengthen 
     compensation fund control and oversight. The amounts cited in 
     the House and Senate bills have been modified to reflect 
     updated estimates of fair share collections from the non-
     appropriated agencies, such as the Postal Service, for fiscal 
     year 2001.


                    Black Lung Disability Trust Fund

       The conference agreement includes a definite annual 
     appropriation of $975,343,000 for black lung benefit payments 
     and interest payments on advances made to the Trust Fund as 
     proposed by the House instead of an indefinite permanent 
     appropriation as proposed by the Senate.

             Occupational Safety and Health Administration


                         Salaries and Expenses

       The conference agreement includes $425,983,000 for 
     occupational safety and health administration, salaries and 
     expenses as proposed by the Senate instead of $381,620,000 as 
     proposed by the House. The conference agreement does not 
     include language proposed by the Senate that would have 
     earmarked $22,200,000 of the increase over the fiscal year 
     2000 appropriation for education, training, and consultation 
     activities. The House bill contained no similar provision. 
     The detailed table at the end of this joint statement 
     reflects the conferees' agreed upon activity distribution.

                 Mine Safety and Health Administration


                         Salaries and Expenses

       The conference agreement includes $246,747,000 for mine 
     safety and health administration, salaries and expenses 
     instead of $233,000,000 as proposed by the House and 
     $244,747,000 as proposed by the Senate. The conference 
     agreement includes $2,500,000 over the budget request for 
     physical improvements at the National Mine Safety and Health 
     Academy.
       The conference agreement includes language proposed by the 
     Senate that allows MSHA to retain and spend up to $1,000,000 
     in fees collected for the approval and certification of mine 
     equipment and materials. The conference agreement also 
     includes language establishing a $1,000,000 contingency fund 
     for mine rescue and recovery activities. The House bill 
     contained no similar provisions.
       Concerns have been expressed about the possible 
     ramifications of a rulemaking on the use of conveyor belts in 
     underground coal mines, including concerns about the validity 
     of the testing on which the rule is based. MSHA is urged to 
     carefully examine the record and to conduct additional 
     research that may be required to address any significant 
     concerns that have been raised.
       The conferees are extremely concerned by a recent 
     catastrophe in Eastern Kentucky. Millions of gallons of 
     slurry coal waste broke free from an impoundment causing 
     considerable damage to the environment and disrupting water 
     supply for citizens along the Big Sandy and Ohio Rivers. The 
     conferees believe this event warrants a thorough examination 
     of current coal waste disposal methods and an exploration of 
     future dumping alternatives. Therefore, the conference 
     agreement includes $2,000,000 for a contract with the 
     National Academy of Sciences to examine engineering standards 
     for coal waste impoundments, provide recommendations for 
     improving impoundment structure stabilization, and evaluate 
     potential alternatives for future coal waste disposal, 
     including the benefits of each alternative. The Academy shall 
     seek the participation of representatives of relevant 
     federal, state, and private entities, to include MSHA, OSM, 
     EPA, Corps of Engineers, State mining authorities, and mining 
     companies. Findings of this study shall be conveyed to the 
     Committees on Appropriations no later than October 15, 2001.

                       Bureau of Labor Statistics


                         Salaries and Expenses

       The conference agreement includes $451,584,000 for Bureau 
     of Labor Statistics, salaries and expenses instead of 
     $440,000,000 as proposed by the House and $446,584,000 as 
     proposed by the Senate. The conference agreement also 
     includes the Senate provision making $10,000,000 available 
     for obligation on a program year basis from July 1, 2001 to 
     June 30, 2002. The House bill contained no similar provision. 
     This funding level provides increases for improvements to 
     existing economic measures, improvements in labor market 
     information mandated by WIA, and a new time use survey.

                        Departmental Management


                         Salaries and Expenses

       The conference agreement includes $380,839,000 for 
     departmental management, salaries and expenses instead of 
     $244,889,000 as proposed by the House and $337,964,000 as 
     proposed by the Senate.
       The conference agreement includes $148,150,000 for the 
     Bureau of International Labor Affairs instead of $70,000,000 
     as proposed by the House and $115,000,000 as proposed by the 
     Senate. The conference agreement also includes language 
     proposed by the

[[Page 26699]]

     Senate to authorize the expenditure of funds for the 
     management or operation of Departmental bilateral and 
     multilateral foreign technical assistance through grants and 
     contracts. The funds for bilateral assistance are made 
     available through September 30, 2002. The House bill 
     contained no similar provision. In total, the conference 
     agreement includes $82,000,000 to assist developing countries 
     with the elimination of child labor. Of this amount, 
     $45,000,000 is for expansion of ILO's International Programme 
     for the Elimination of Child Labor. In addition, $37,000,000 
     is provided for bilateral assistance to improve access to 
     basic education in international areas with a high rate of 
     abusive and exploitative child labor. These new bilateral 
     initiatives should be developed in consultation and 
     coordination with USAID to ensure these programs fit with the 
     overall foreign operations policy of the Administration and 
     are in compliance with the Foreign Assistance Act. The 
     conference agreement includes $45,000,000 as proposed by the 
     Senate to augment the capacity of Ministries of Labor to 
     enforce labor standards, to develop social safety net 
     programs, and to develop information on enforcement of labor 
     laws around the world. The conference agreement includes 
     $10,000,000 for the Global HIV-AIDS Workplace Initiative, and 
     these funds are provided in the Department of Labor 
     appropriation instead of the HHS Public Health and Social 
     Services Emergency Fund as proposed by the Senate.
       The conferees also include funding for the following 
     activities:
       --$900,000 to the University of Iowa for research on the 
     issue of abusive and exploitive child labor and other labor-
     related issues; and
       --$250,000 to the Association of Farmworker Opportunities 
     Programs for public education on abusive child labor.
       The conferees note from the recent World AIDS Conference 
     that many national economies continue to be profoundly and 
     adversely affected by the HIV-AIDS pandemic. For example, 
     employers in South Africa are now hiring two employees for 
     every one skilled job. The gross domestic product in many 
     countries in Africa and Asia is actually contracting because 
     of a shrinking adult work force attributable to HIV-AIDS 
     related deaths. At the same time, there is mounting evidence 
     that workplace-based HIV-AIDS education and prevention 
     programs can help prevent the spread of HIV, especially in 
     high-risk occupations. Such programs can help stem employers' 
     loss of skilled workers, reverse declining productivity, and 
     provide mechanisms for caring for workers living with HIV and 
     AIDS. Consequently, the conferees expect ILAB to assume a 
     leading role in developing innovative business-trade union 
     partnerships to improve HIV-AIDS prevention and to improve 
     coordination among the Labor Department, Commerce Department, 
     and USAID.
       The conference agreement includes $23,002,000 and language 
     establishing the Office of Disability Employment Policy in 
     the Department of Labor as proposed by the Senate. The House 
     bill continued funding for the President's Committee on 
     Employment of People with Disabilities, but this activity is 
     subsumed in the new Office of Disability Employment Policy.
       The conference agreement includes $37,000,000 to establish 
     a permanent, centralized information technology investment 
     fund.


                    Veterans Employment and Training

       The conference agreement includes $211,713,000 for veterans 
     employment and training instead of $201,277,000 as proposed 
     by the House and $206,713,000 as proposed by the Senate. 
     Included in this amount is $17,500,000 for the homeless 
     veterans program.


                      Office of Inspector General

       The conference agreement includes $54,785,000 for the 
     office of inspector general as proposed by the Senate instead 
     of $51,925,000 as proposed by the House.

                           GENERAL PROVISIONS


                               Ergonomics

       The conference agreement does not include a provision 
     included in both the House and Senate bills relating to 
     regulations issued by the Occupational Safety and Health 
     Administration relating to ergonomic protection.


       Extended Deadline for Expenditure of Welfare to Work Funds

       The conference agreement includes a provision proposed by 
     the Senate extending the availability of Welfare to Work 
     funding from three to five years. The House bill contained no 
     similar provision.


                            H2A Regulations

       The conference agreement includes a modified version of the 
     Senate provision prohibiting the implementation or 
     enforcement of the pending H2A regulations, but allows for 
     all activities related to the development of revised 
     regulations. The conferees support the efforts by the 
     Secretary of Labor and the Attorney General designed to 
     streamline the H2A application process. The conferees expect 
     the Department and the Immigration and Naturalization Service 
     to work closely with the stakeholders to expeditiously 
     address concerns raised by the growers so that the 
     streamlined application process produces a more efficient new 
     system.


   Deadline for Determination on Housing Requirements for H2A Workers

       The conference agreement includes a provision regarding 
     housing inspections for H2A temporary agricultural laborers. 
     This provision ensures that the deadline for housing 
     inspections for H2A workers corresponds with the Secretary's 
     thirty day statutory deadline for making H2A temporary 
     agricultural labor certification decisions. The thirty day 
     deadline may have been effectively nullified in some cases by 
     the current regulations requiring that inspections on 
     employer provided housing need not be completed until twenty 
     days before the date the employer needs H2A workers. The 
     provision requires housing inspections to be completed in 
     time for the Secretary to make her certification decision in 
     accordance with the thirty day statutory deadline.


                       Alien Labor Certification

       The conference agreement includes a provision that 
     authorizes the use of H1B fee revenue to process permanent 
     labor certifications. This is needed because the recent 
     legislation increasing the number of H1B visas authorized 
     will result in a substantial increase in the volume of 
     permanent labor certification applications. The Department of 
     Labor has made significant progress over the past 18 months 
     to reduce the backlog of applications for permanent labor 
     certifications, and in expediting the labor condition 
     application process for the H-1B program. In order to allow 
     the Department to make further progress on timeliness of 
     labor certifications without undermining the review process, 
     the Department will be permitted to utilize a portion of fees 
     generated by the H-1B program to support the administration 
     of the permanent labor certification program.


           Elimination of Welfare to Work Performance Bonuses

       The conference agreement includes a provision proposed by 
     the Senate to eliminate Welfare to Work performance bonuses. 
     The House bill contained no similar provision.

           TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES

              Health Resources and Services Administration


                     Health Resources and Services

       The conference agreement includes $5,525,476,000 for health 
     resources and services instead of $4,784,232,000 as proposed 
     by the House and $4,677,424,000 as proposed by the Senate.
       The conference agreement includes bill language identifying 
     $226,224,000 for the construction and renovation of health 
     care and other facilities instead of $10,000,000 as proposed 
     by the Senate. The House bill contained no similar provision. 
     These funds are to be used for the following projects: 
     Northwestern University Life Sciences Building; ACCESS 
     Community Health Network in Illinois; Northwestern Memorial 
     Hospital; University of Chicago Core Genetics Research 
     Facility; Condell Medical Center, Regional Center for Cardiac 
     Health Services; Lake County Health Department; University 
     Center of Lake County, Illinois; Finch University of Health 
     Sciences/Chicago Medical School; Pennington Biomedical 
     Research Center in Baton Rouge, Louisiana; Texas Institute 
     for Rehabilitation and Research; Massey Cancer Center of 
     Virginia Commonwealth University; Aurelia Osborn Fox Memorial 
     Hospital in Oneonta, New York; Margaretville Memorial 
     Hospital in Margaretville, New York; Martha's Village and 
     Kitchen Medical Clinic in Indio, California; Hanson House at 
     the Desert Regional Medical Center; Nutrition Center at Wake 
     Forest University Baptist Medical Center; James Whitcomb 
     Riley Hospital for Children in Indianapolis, Indiana; 
     University of South Alabama Gulf Coast Cancer and Research 
     Institute; North Baldwin Hospital Surgery Center in Bay 
     Minette, Alabama; Monroe County Hospital in Monroesville, 
     Alabama; Touro University College of Osteopathic Medicine in 
     Vallejo, California; Medical Sciences Building at the 
     University of Cincinnati Medical Center in Cincinnati, Ohio; 
     Tinnitus Center for Tinnitus Retraining Therapy at the 
     University of North Carolina at Greensboro; Alfred E. Mann 
     Institute and Biomedical Engineering Center at the University 
     of Southern California; Paradise Valley Hospital in National 
     City, California; Children's Hospital and Health Center in 
     San Diego, California; Dental Education in Care of Disabled 
     Clinic at the University of Washington; Alexander Hughes 
     Community Center in Claremont, California; Biomedical Marine 
     Research Facility at Harbor Branch; Kessler Rehabilitation 
     Research Institute in West Orange, New Jersey; Child Health 
     Institute of New Jersey; University of Nevada Las Vegas 
     Biotechnology/Bioengineering Research Facility; McCready 
     Health Services Foundation in Crisfield, Maryland; Center for 
     Health Sciences at Dominican College in Rockland County, New 
     York; Pediatric Cardiac Intensive Care Unit at Cook 
     Children's Medical Center in Fort Worth, Texas; Tricounty 
     Health Center at Northern Illinois University; Aurora Primary 
     Care Consortium; Turning Point Facility in Union County, 
     North Carolina; Gila River Indian Community Diabetes Center 
     in Arizona; Dalton Cardiovascular Research Center at the 
     University of Missouri at Columbia; Scripps Memorial East 
     County Hospital in El Cajon,

[[Page 26700]]

     California; Marklund Children's Home; Misericordia Hearts of 
     Mercy in Chicago, Illinois; University of Connecticut Health 
     Center; Nassau County Health Care Corporation; Women's Health 
     Center at Proctor Hospital in Peoria, Illinois; Oklahoma 
     Medical Research Foundation; Louisiana State University 
     Health Sciences Center Feist-Weiller Cancer Center in 
     Shreveport, Louisiana; Lewis County General Hospital in Lewis 
     County, New York; Stetson University in Deland, Florida; 
     National Center for Primary Care at Morehouse School of 
     Medicine; Springdale Community Health Center in Springdale, 
     Washington; Edgemoor Geriatric Hospital in San Diego County, 
     California; Union Hospital Midwest Center for Rural Health in 
     Terre Haute, Indiana; Bennett W. Smith Family Life Wellness 
     Center in Buffalo, New York; Children's Hospital of Buffalo; 
     Fresno Community Hospital and Medical Center Regional 
     Ambulatory Care Facility in Fresno, California; Pediatric 
     Oncology and the Batchelor Children's Research Center at the 
     University of Miami/Jackson Memorial Medical Center; Valley 
     Hospital Cancer and Ambulatory Care Center in Paramus, New 
     Jersey; Functional Genomics Research Center at Florida 
     Atlantic University in Boca Raton, Florida; Michael and 
     Dianne Bienes Cancer Center at Holy Cross Hospital in Ft. 
     Lauderdale, Florida; Outpatient Surgery Facility at Memorial 
     Hospital in Towanda, Pennsylvania; University of Scranton 
     Allied Health Laboratory; Southern Illinois Healthcare 
     Foundation in East St. Louis, Illinois; University of St. 
     Francis in Fort Wayne, Indiana; Maricopa Integrated Health 
     Systems in Phoenix, Arizona; Albany Medical Center Breast 
     Cancer Diagnostic and Treatment Center in Albany, New York; 
     Adirondack Medical Center in Saranac Lake, New York; Mary 
     McClellan Hospital in Cambridge, New York; North Central 
     Texas Community Health Care Center in Wichita Falls, Texas; 
     St. Joseph's Hospital New York Regional Hemodialysis and 
     Cardiac Care Enhancement Center in Syracuse, New York; Stroud 
     Regional Hospital in Stroud, Oklahoma; Will County Health 
     Center in Illinois; Molecular Genetics Core for the Center 
     for Excellence in Cardiovascular-Renal Research at the 
     University of Mississippi Medical Center; Tallahatchie 
     General Hospital and Extended Care Facility in Charleston, 
     Mississippi; Operation PAR in Pinellas Park, Florida; Detroit 
     Medical Center, Women's and Children's health facility; 
     Detroit Medical Center, Rehabilitation Institute of Michigan; 
     Big Springs Medical Association in Missouri; Southeast 
     Missouri Health Network; People's Health Center in St. Louis, 
     Missouri; Denver Children's Hospital; National Jewish Medical 
     and Research Center in Denver; Breast Cancer Center at Our 
     Lady of Fatima Hospital in North Providence, Rhode Island; 
     Jackson Medical Mall, Mississippi Institute for Cancer 
     Research; Conehatta Tribal Community Health Care Clinic; 
     Sharkey/Issaquena Hospital, Rolling Fork, Mississippi; 
     Jackson Laboratory Physiogenomics facility in Maine; St. 
     Joseph's Hospital in Ohio; Huron Hospital in Cleveland, Ohio; 
     Ohio Poison Control Collaborative; Boys Town National 
     Research Hospital in Omaha, Nebraska; University of Utah's 
     Huntsman Cancer Institute; University of North Carolina 
     Genomics and Bioinformatics; Burlington Community Health 
     Center, Burlington, Vermont; Red Logan Community Health 
     Center; Vermont Cancer Center; Vermont Lung Association 
     Asthma Clinic; University of Mississippi, Guyton Building 
     Expansion; Haysi Medical Clinic in Virginia; Allegheny-
     Clarion Valley Community Health Center; University of 
     Alabama-Birmingham, Interdisciplinary Biomedical Research 
     Facility; Umatilla County Public Health Facility; 
     Bioengineering Research Facility at Oregon Health Sciences 
     University; Temple University Outpatient Facility; 
     Philadelphia College of Osteopathic Medicine; Thomas 
     Jefferson University Cancer Research Facility; State of 
     Alaska Public Health Laboratory in Anchorage; ``Pathways 
     Home'' inpatient facility for the Southcentral Foundation; 
     Montezuma Creek Health Care Center; Sorenson Multicultural 
     Health Center; Midvale/West Jordan and Glendale, Utah Health 
     Centers; St. Vincent Hospital in Billings, Montana; Rocky 
     Mountain Regional Trauma Center at Denver Health and Hospital 
     Authority; Carriozo Health Clinic; Dan C. Trigg Memorial 
     Hospital; El Pueblo Health Services; La Clinica de Familia in 
     Chaparral, New Mexico; La Clinica de Familia in San Miguel, 
     New Mexico; Las Clinical del Norte De Abiquiu; Logan Family 
     Clinic in New Mexico; Montgomery Women's Health Services 
     Clinic of Lea County; Mora Community Health Service; Ruidoso 
     Sub-station Health Service; Sierra Vista Family Community 
     Clinic; Tatum Health Clinic; Children's National Medical 
     Center in Washington; Arkansas Children's Hospital; 
     Biomedical Biotechnology Center at the University of Arkansas 
     Medical School in Little Rock; University of Arkansas, 
     Fayetteville, Center for Protein Structure and Function; 
     University of Arkansas, Little Rock, Applied Biosciences 
     Program; Kansas University Human Imaging Institute; North 
     Philadelphia Health System; Children's Health Fund; Crozer-
     Keystone Health System in Delaware County; Family Care Health 
     Center in St. Louis, Missouri; Cathedral Healthcare System; 
     Chase Brexton Health Services, Inc.; Children's Hospital of 
     Boston; Children's Hospital of Wisconsin Neonatal Intensive 
     Care Unit; Daviess County Community Health Center; Family 
     Health Centers, Inc. of Orangeburg, South Carolina; Community 
     Health facilities in southeast Iowa; Hillside Hospital in 
     Long Island, New York; La Rabida Children's Hospital, 
     Chicago; Marquette University School of Dentistry; Medical 
     University of South Carolina Oncology Center; Molokai General 
     Hospital; New York University School of Medicine; Palmer 
     College of Chiropractic in Davenport, Iowa; Pioneer Valley 
     Life Sciences Joint Venture between the University of 
     Massachusetts and Baystate Medical Center; Rio Arriba County 
     Residential Treatment Facility; Rutland Regional Medical 
     Center; Sea Island Comprehensive Health Care Corporation; St. 
     Mary's Healthcare Promotion Center in Huntington, West 
     Virginia; St. Mary's Women and Infants Center of Dorchester; 
     the Neurosciences program at West Virginia University; Tufts 
     University Center for Nutrition Research; University of South 
     Carolina School of Public Health; University of Vermont 
     College of Medicine and Fletcher Allen Health Care; 
     University of Nevada, Las Vegas Cancer Center; University of 
     Montana Center for Environmental Health Sciences; University 
     of Florida Genetics Institute; Hackensack University Medical 
     Center in Hackensack, New Jersey; Brandeis University 
     National Center for the Study of Behavioral Genetics and 
     Genomics; Marlborough Hospital in Marlborough, Massachusetts; 
     West Virginia University Eastern Panhandle Clinical Campus in 
     Martinsburg; St. Mary's Hospital for Children, Bayside, New 
     York; Virginia Mason Medical Center, Seattle, Washington; 
     Memorial Hospital of Lafayette County, Darlington, Wisconsin; 
     Saginaw Cooperative Hospitals, Inc., Saginaw, Michigan; El 
     Sereno Family Health Center, El Sereno, Los Angeles; 
     Community College of Southern Nevada Medical Careers Center, 
     North Las Vegas, Nevada; Columbia County Senior Services, 
     Lake City, Florida; San Luis Obispo medical therapy unit, 
     California; Greene County Health Care, Inc., Snow Hill, North 
     Carolina; St. Clair County, Belleville, Illinois, senior 
     center and wellness clinic; Sunshine House, New Haven, 
     Connecticut; City of Culver City, California, senior health 
     and social services center; Community Partners Healthnet 
     Inc., Snow Hill, North Carolina; North Shore Long Island 
     Jewish Health System, Hillside Hospital Campus, Glen Oaks, 
     New York; Cooper Green Hospital, Birmingham, Alabama; 
     Whitman-Walker Clinic, Inc., Washington, DC; Prince George's 
     Hospital Center, Cheverly, Maryland; Roseland Community 
     Hospital, Chicago, Illinois; Metropolitan Family Services, 
     Chicago, Illinois, mental and public health facility; South 
     Suburban Family Shelter Inc., Homewood, Illinois; Rush-
     Presbyterian-St. Luke's Medical Center, Chicago, Illinois; 
     Lake Charles Memorial Hospital, Lake Charles, Louisiana; West 
     End Medical Centers, Atlanta, Georgia; New York Structural 
     Biology Center, New York, New York; Memorial Freeport-
     Roosevelt Health Center, Roosevelt, New York; University of 
     North Carolina at Wilmington School of Nursing, Wilmington, 
     North Carolina; Joseph P. Addabbo Family Health Center, 
     Arverne, New York; Los Angeles Eye Institute, Los Angeles, 
     California, Boston College, Chestnut Hill, Massachusetts; 
     West Liberty State College Dental Hygiene Clinic, West 
     Liberty, West Virginia; Grafton City Hospital, Grafton, West 
     Virginia; New York University Downtown Hospital, New York 
     City, New York; Saint Michael's Hospital, Stevens Point, 
     Wisconsin; Holyoke Health Center, Holyoke, Massachusetts; 
     Montefiore Medical Center, Bronx, New York; Christopher Rural 
     Health Planning Corporation, Christopher, Illinois; Centro de 
     Salud Familiar La Fe, El Paso, Texas; Englewood Hospital and 
     Medical Center, Englewood, New Jersey; Plaza Community 
     Center, Inc., Los Angeles, California, children's health and 
     social services center; Fairview University Medical Center, 
     Minneapolis, Minnesota; Asian Human Services community health 
     center, Chicago, Illinois; Strong Memorial Hospital, 
     Rochester, New York; University of Arkansas Medical Sciences, 
     Little Rock, Arkansas; Trinity Health Systems, Detroit, 
     Michigan; Henderson County Rural Health Center in Oquawka, 
     Illinois; and City of Summersville, West Virginia, senior 
     health and social services facility.
       The conferees are supportive of the efforts of the Academic 
     Medicine Development Corporation to implement a strategic 
     initiative for human genetics research in New York.
       The conference agreement includes bill language identifying 
     $253,932,000 for family planning instead of $238,932,000 as 
     proposed by the House and $253,932,000 as proposed by the 
     Senate. The conferees concur with Senate report language 
     regarding the distribution of funds appropriated for Title X.
       The conference agreement includes bill language to provide 
     $30,000,000 for abstinence education in fiscal year 2002 as 
     proposed by the House. The Senate bill contained no similar 
     provision.
       The conference agreement includes $1,168,700,000 for 
     community health centers as proposed by the Senate instead of 
     $1,100,000,000 as proposed by the House. Within the total 
     provided, $6,250,000 is for native Hawaiian health programs.

[[Page 26701]]

       The conferees recognize the long-standing commitment and 
     expertise of the University of Hawaii in addressing the 
     unique health care needs of the Pacific Basin region.
       The conferees urge HRSA to give full and fair consideration 
     to proposals to support expanded services to reach priority 
     populations in under-served communities in Kane, Marion, 
     Saline, and Will, Illinois counties on the southwest side of 
     Chicago and in the AAPI community on the north side of 
     Chicago.
       The conference agreement includes $41,523,000 for the 
     national health service corps, field placements instead of 
     $39,823,000 as proposed by the House and $38,116,000 as 
     proposed by the Senate.
       The conference agreement includes $87,924,000 for national 
     health service corps, recruitment instead of $81,524,000 as 
     proposed by the House and $78,625,000 as proposed by the 
     Senate. Within the total provided, $4,000,000 is for State 
     offices of rural health. The conferees recommend that 
     national health service corps loan repayment awards continue 
     to be made in areas of greatest need.
       The conference agreement includes $638,048,000 for health 
     professions instead of $410,987,000 as proposed by the House 
     and $230,714,000 as proposed by the Senate. Within the total 
     provided, $235,000,000 is for children's graduate medical 
     education. Also within the total provided for allied health 
     special projects, $921,000 is for expansion of the Illinois 
     Community College Board's program, in coordination with the 
     Illinois Department of Human Services, to train and place 
     welfare recipients in the allied health field using distance 
     technology. The amount provided does not include funding to 
     continue the demonstration project by the Utah area health 
     education centers.
       The conferees concur with House and Senate report language 
     regarding priority consideration for health careers 
     opportunities program (H-COP) grants to minority health 
     professions institutions.
       The conferees urge HRSA to give full and fair consideration 
     to proposals to expand access to primary and dental care 
     services for medically underserved populations located in the 
     areas of St. Louis City, and the Missouri counties of 
     Jefferson, Lafayette, Greene, and Douglas.
       The conference agreement includes $18,016,000 for Hansen's 
     disease services instead of $17,016,000 as proposed by both 
     the House and the Senate. Within the total provided, $900,000 
     is for the Diabetes Lower Extremity Amputation Prevention 
     program at the University of South Alabama.
       The conference agreement includes $714,230,000 for the 
     maternal and child health block grant instead of $709,130,000 
     as proposed by both the House and the Senate. The conference 
     agreement includes bill language designating $113,728,000 of 
     the funds provided for the block grant for special projects 
     of regional and national significance (SPRANS) as proposed by 
     the House. It is intended that $5,000,000 of the SPRANS 
     amount will be used for the continuation of the traumatic 
     brain injury State demonstration projects as authorized by 
     title XII of the Public Health Service Act. The Senate bill 
     contained no similar provision, instead it provided 
     $5,000,000 as a separate line item in the table for traumatic 
     brain injury. It is also intended that $5,000,000 of the 
     SPRANS amount will be used for Columbia Hospital for Women 
     Medical Center in Washington, DC to support community 
     outreach programs for women and $100,000 will be used for the 
     St. Joseph's Health Services of Rhode Island for the 
     Providence Smiles dental program for low-income children.
       The conferees are supportive of HRSA's efforts in 
     preventing youth suicides. HRSA has made reducing the rate of 
     youth suicide a priority for State MCH agencies, requiring 
     States to address the crisis of suicide with their block 
     grant funding.
       The conference agreement includes $90,000,000 for healthy 
     start as proposed by both the House and Senate. It is 
     intended that these projects will be evaluated and those 
     activities that are proven successful and can be replicated 
     will be incorporated into the mission of the maternal and 
     child health block grant program.
       The conference agreement includes $8,000,000 for newborn 
     and infant hearing screening as proposed by the House instead 
     of $4,000,000 as proposed by the Senate.
       The conference agreement includes $15,000,000 for organ 
     transplantation as proposed by the Senate instead of 
     $10,000,000 as proposed by the House.
       The conference agreement includes $22,000,000 for the bone 
     marrow program as proposed by the House instead of 
     $17,959,000 as proposed by the Senate. The conferees continue 
     to be aware of the life saving success of the National Marrow 
     Donor Program, which now includes more than 4,000,000 
     potential volunteer donors. The conferees recognize the 
     continuing need to increase minority representation in the 
     national registry and support expansion of the National 
     Marrow Donor Program's cord blood bank initiative, which 
     provides another major source of donors for patients, 
     particularly minority patients, in need of a marrow or blood 
     stem cell transplant.
       The conference agreement includes $58,218,000 for rural 
     health outreach grants instead of $30,867,000 as proposed by 
     the House and $38,892,000 as proposed by the Senate. The 
     conferees are supportive of HRSA providing heart 
     defibrillators to rural areas.
       The conferees include the following amounts for the 
     following projects and activities in fiscal year 2001:
       --$50,000 for the La Crosse Health Science Consortium for a 
     demonstration to increase access to dental care in La Crosse 
     county;
       --$85,000 for the Tillamook County Health Department, 
     Oregon, to expand primary and dental health services for 
     underserved populations;
       --$850,000 for AIDS Alliance for Children, Youth, and 
     Families;
       --$115,000 for the Anderson Valley Health Center, Inc., 
     Boonville, California, to expand dental and health care 
     services;
       --$128,000 for the Partnership for the Children in San Luis 
     Obispo County, California, for a low income dental clinic;
       --$170,000 for Northern Counties Health Care, Inc., St. 
     Johnsbury, Vermont for a rural outreach initiative;
       --$213,000 for the Mercer County Health Department in 
     Aledo, Illinois, to extend dental care services to rural 
     underserved populations;
       --$300,000 for Blackstone Valley Community Health Care, 
     Inc.;
       --$359,000 for outreach activities of the Blue Ridge 
     Community Health Service;
       --$400,000 for the Kentucky Emergency Medical Services 
     Academy;
       --$450,000 for CAP Services in Stevens Point, Wisconsin to 
     extend dental health services to underserved populations;
       --$500,000 for St. Luke's Free Clinic in Hopkinsville, 
     Kentucky;
       --$500,000 for the Texas A&M HERO program;
       --$500,000 for State and University of Alaska to train 
     emergency medical personnel in rural areas;
       --$500,000 for Inland Health Northwest;
       --$425,000 for Campbellton-Graceville Hospital in 
     Graceville, Florida, to expand clinical and preventive health 
     care services to low income, rural populations;
       --$550,000 for Langlade Memorial Hospital, Antigo, 
     Wisconsin, for a four county dental health initiative;
       --$700,000 for the Western Kentucky University mobile 
     health screening program;
       --$1,311,000 for outreach activities of the Lourdes Health 
     Network in Pasco, Washington;
       --$900,000 for Iowa Department of Public Health to develop 
     and demonstrate the use of technology for public health 
     nurses working in rural areas;
       --$921,000 to continue and expand the development of the 
     Center for Acadiana Genetics and Hereditary Health Care at 
     Louisiana State University Medical Center;
       --$800,000 for the University of Southern Mississippi 
     Center for Sustainable Health Outreach;
       --$1,106,000 for Carondelet Health Network of Arizona to 
     improve the health status of multi-cultural and medically 
     disenfranchised populations through increased community 
     health access and comprehensive continuum of care;
       --$1,200,000 for Southern Illinois University;
       --$1,318,000 for Voorhees College in Denmark, South 
     Carolina for a Center of Excellence for rural health;
       --$1,800,000 for the University of Colorado School of 
     Dentistry to conduct an oral health prevention and treatment 
     program in Shannon, Jackson, Bennett, and Todd counties in 
     South Dakota;
       --$1,900,000 for the Yukon-Kuskokwim Health Corporation's 
     health care delivery system; and
       --$2,300,000 for the Mississippi State University Rural 
     Health Safety and Security Institute.
       The conference agreement includes $13,439,000 for rural 
     health research instead of $11,713,000 as proposed by the 
     House and $5,000,000 as proposed by the Senate.
       The conferees include the following amounts for the 
     following projects and activities in fiscal year 2001:
       --$143,000 for the University of Pittsburgh Center for 
     Rural Health Practice;
       --$170,000 for Madison Community Health Center, Madison, 
     Wisconsin, for a model preventive health program for hard to 
     reach and at-risk populations;
       --$250,000 for the multiple sclerosis disease state 
     management program at the University of Mississippi Center 
     for Pharmaceutical Marketing;
       --$306,000 for the Texas Tech University Health Sciences 
     Center at El Paso and the University of Texas at El Paso for 
     joint research on health problems of migrant workers;
       --$400,000 for the McLaughlin Research Institute cancer 
     education program;
       --$500,000 for the University of Alaska to develop a 
     research and evaluation agenda for health care delivery;
       --$840,000 for the Marshfield Clinic in Marshfield, 
     Wisconsin, for scientific, ethical and citizen advisory 
     groups and education programs in connection with the 
     development of a personalized medicine program;
       --$921,000 for the Virginia Center for Sustainable Health 
     Outreach at James Madison University;

[[Page 26702]]

       --$921,000 for Atlantic City Medical Center for prevention 
     services and medical education activities;
       --$1,275,000 for the University of North Dakota School of 
     Medicine, Grand Forks, North Dakota for a rural health 
     program in preventive medicine and behavioral sciences; and
       --$1,612,000 for the Carolina's Community Health Initiative 
     for its community health assessment plan.
       The conferees encourage the National Human Genome Research 
     Institute and the Agency for Healthcare Research and Quality 
     to provide any necessary technical assistance to HRSA in 
     supporting the Marshfield Clinic project.
       The conference agreement includes $35,981,000 for 
     telehealth instead of $25,000,000 as proposed by the Senate. 
     The House provided funding for this program within rural 
     health research.
       The conferees include the following amounts for the 
     following projects and activities in fiscal year 2001:
       --$14,000 for networking capabilities of the Cullman Area, 
     Alabama, Mental Health Authority;
       --$43,000 for Arrowhead Regional Medical Center, Colton, 
     California, for a telemedicine regional network;
       --$85,000 for the New York Primary Care Health Foundation, 
     Inc., Flushing, New York, for a telehealth initiative;
       --$111,000 for Staten Island University Hospital to support 
     a teleconferencing initiative to improve and strengthen 
     linkages within campuses;
       --$184,000 for the Union Hospital Telehealth Demonstration 
     project in Terre Haute, Indiana;
       --$300,000 for the University of Michigan Emergency 
     Telemedicine Network;
       --$350,000 for Molokai General Hospital to use the latest 
     technology advances to provide health care in rural areas;
       --$340,000 for Massachusetts College of Pharmacy and Health 
     Sciences, Worcester, Massachusetts for a telehealth 
     initiative;
       --$361,000 for the Center for Telehealth and Distance 
     Education at the University of Texas Medical Branch, 
     Galveston, Texas for a telehealth initiative;
       --$430,000 for Daemen College in Amherst, New York to 
     continue a project to provide distance learning/medical 
     linkages to rural counties in Western New York State;
       --$500,000 for a telehealth project at Magee-Women's 
     Hospital;
       --$500,000 for the Susquehanna Health Systems telemedicine 
     project;
       --$468,000 for the Southern Illinois University School of 
     Medicine telemedicine and rural health initiative project;
       --$489,000 for the La Crosse Medical Health Science 
     Consortium, Inc., Wisconsin for a telehealth initiative;
       --$750,000 for a joint New Mexico-Hawaii Telehealth 
     Outreach for Unified Community Health;
       --$638,000 for Children's Hospital and Regional Medical 
     Center in Seattle, Washington;
       --$737,000 for the Community Hospital Telehealth Consortium 
     in Louisiana for continued development of a regional 
     telehealth network;
       --$783,000 for the Memorial Telehealth Network in 
     Springfield, Illinois;
       --$723,000 for Childrens Hospital Los Angeles, California, 
     for a telemedicine initiative;
       --$737,000 for the Rural Telehealth and Community Education 
     Network at Central Michigan University;
       --$900,000 for the Southwest Alabama Rural Telehealth 
     Network at the University of South Alabama;
       --$850,000 for New York Presbyterian Hospital for a 
     telehealth initiative;
       --$850,000 for the University of Pittsburgh Medical Center 
     Information Technology project;
       --$1,000,000 for the University of Florida Human Brain 
     Functional Imaging Technology project;
       --$800,000 for the University of Nebraska telemedicine 
     outreach program;
       --$850,000 for the Fairview Lakes Regional Medical Center 
     in Wyoming, Minnesota telemedicine project;
       --$1,020,000 for the Northern California Telemedicine 
     Network, Santa Rosa Memorial Hospital, Santa Rosa, 
     California;
       --$1,290,000 for a telemedicine program for downstate 
     Illinois through the Southern Illinois University Medical 
     School in Springfield, Illinois;
       --$1,335,000 for the University of Nevada Las Vegas 
     Telemedicine Network;
       --$1,770,000 for the Idaho Telehealth Integrated Care 
     Center to establish a comprehensive telehealth clinic to 
     support care in rural and frontier areas;
       --$1,843,000 for the Telehealth Deployment Research Testbed 
     program;
       --$1,800,000 for a project to link Rocky Mountain College 
     and Deaconess Billings Clinic with telemedicine capabilities;
       --$1,700,000 for the Saint Vincent Hospital in Billings, 
     Montana for its Telemedicine Model;
       --$2,418,000 for the Northeast Ohio Outreach Network to 
     expand health services to rural residents in northeastern 
     Ohio; and
       --$3,400,000 for the Alaska Federal Health Care Access 
     Network.
       The conference agreement includes $19,000,000 for emergency 
     medical services for children as proposed by the House 
     instead of $15,000,000 as proposed by the Senate.
       The conference agreement includes $20,000,000 for poison 
     control instead of $6,600,000 as proposed by the House and 
     $26,000,000 as proposed by the Senate. Funds are provided to 
     support activities authorized in the Poison Control Center 
     Enhancement and Awareness Act.
       The conference agreement includes $6,000,000 for black lung 
     clinics as proposed by the Senate instead of $5,943,000 as 
     proposed by the House.
       The conference agreement includes $3,000,000 for trauma 
     care as proposed by the Senate. The House bill contained no 
     similar provision.
       The conference agreement includes a total of $1,807,700,000 
     for Ryan White programs instead of $1,725,000,000 as proposed 
     by the House and $1,650,000,000 as proposed by the Senate. 
     Included in this amount is $604,200,000 for emergency 
     assistance, $911,000,000 for comprehensive care, $185,900,000 
     for early intervention, $65,000,000 for pediatric HIV/AIDS, 
     $10,000,000 for dental services, and $31,600,000 for 
     education and training centers.
       The conference agreement includes bill language identifying 
     $589,000,000 for the Ryan White Title II State AIDS drug 
     assistance programs instead of $554,000,000 as proposed by 
     the House and $538,000,000 as proposed by the Senate. The 
     conferees concur with Senate report language regarding the 
     Institute of Medicine study to evaluate the effectiveness of 
     the current role and structure of the Ryan White CARE Act and 
     the efforts to create a national consumer and provider 
     education center within pediatric HIV/AIDS.
       The conference agreement includes $109,200,000 for Ryan 
     White AIDS activities that are targeted to address the trend 
     of the HIV/AIDS epidemic in communities of color, based on 
     the most recent estimated living AIDS cases, HIV infections 
     and AIDS mortality among ethnic and racial minorities as 
     reported by the Centers for Disease Control and Prevention. 
     These funds are allocated as follows:
       Within Ryan White Title I, the agreement provides 
     $34,000,000 to the competitive supplemental allocation 
     targeted to minority community based organizations, as 
     defined by the Centers for Disease Control and Prevention, 
     and directs that these funds be allocated through the 
     established planning council processes of eligible 
     metropolitan areas. These funds are designed to reduce the 
     HIV related health disparities and improve the health 
     outcomes for HIV infected African Americans, Latinos, Native 
     Americans, Asian Americans, Native Hawaiians and Pacific 
     Islanders. These funds are expected to expand medical and 
     supportive service capacity in communities of color, and 
     expand peer treatment education that is both culturally and 
     linguistically appropriate to individuals living with HIV/
     AIDS.
       Within Ryan White Title II, the agreement provides 
     $7,000,000 for State HIV care grants to support educational 
     and outreach grants to minority community-based organizations 
     to increase the number of minorities participating in the 
     AIDS Drug Assistance Program (ADAP). The continuing under 
     representation of African Americans, Latinos, Native 
     Americans, Asian Americans, Native Hawaiians and Pacific 
     Islanders in state run ADAP contributes to their persistently 
     poor health outcomes in comparison to other communities.
       Within Ryan White Title III, the agreement provides 
     $44,400,000 for planning grants, early intervention service 
     (EIS) grants to minority community-based health care and 
     service providers with a history of service provision to 
     communities of color. Funds should also be made available to 
     national, regional and local organizations representing 
     people of color to provide technical assistance 
     collaborations, and linkages designed to strengthen HIV/AIDS 
     systems of care. Funds are intended to support the 
     implementation of the plans developed by minority community 
     based and health care organizations. The conferees expect 
     that fiscal year 2001 increases to Title III should be 
     directed primarily towards providing early intervention 
     service grants to those organizations that received Title III 
     planning grants in the previous fiscal year and enhancing the 
     service capacity of existing minority EIS providers.
       Within Ryan White Title IV, the agreement provides 
     $15,700,000 to fund traditional minority community-based 
     providers of services to minority children, youth and 
     families to develop and implement culturally competent and 
     linguistically appropriate research-based interventions that 
     provide additional HIV/AIDS care, services and linkages. 
     Funds are also intended to directly fund minority community 
     based organizations and providers to expand or implement 
     programs specifically designed to provide youth, adolescent, 
     and young adult-focused HIV/AIDS care and services.
       The agreement provides $7,700,000 to AIDS education and 
     training centers. These funds are intended to increase 
     training of community-based minority health care 
     professionals in AIDS-related treatments, standards of care, 
     guidelines for the use of antiretroviral and other effective 
     clinical interventions, and treatment adherence for HIV/AIDS 
     infected adults, adolescents and

[[Page 26703]]

     children, as developed by the U.S. Public Health Service. The 
     training of minority providers is to be implemented through 
     collaborations with Historically Black Colleges and 
     Universities (HBCU) and Hispanic Serving Institutions, and 
     Tribal Colleges. These efforts are designed to increase the 
     treatment expertise and HIV knowledge of minority front-line 
     providers serving individuals living with HIV/AIDS. Funds are 
     also intended to support minority community based 
     organizations to train minority providers to deliver 
     culturally competent and language appropriate treatment 
     education services.
       The conferees intend that at least ninety percent of total 
     title IV funding be provided to grantees. The conferees 
     expect the agency to use the funding increases for title IV, 
     with the exception of any increases provided through the CBC/
     Minority AIDS Initiative, to provide, at a minimum, 
     additional funds to existing grantees to reflect the 
     increases in the costs of providing comprehensive care. The 
     agency should use a significant portion of the remaining 
     funds to expand comprehensive services for youth, both 
     through existing and new grantees. The conferees believe that 
     the agency should expand efforts to facilitate ongoing 
     communication with grantees so that prospective changes in 
     the administration of the program can be discussed.
       From within the increase provided to pediatric AIDS 
     demonstrations, the conferees encourage HRSA to target funds 
     towards approved but unfunded applications from the previous 
     fiscal year.
       The conference agreement includes $140,000,000 for health 
     care access for the uninsured instead of $25,000,000 as 
     proposed by the Senate. The House bill did not contain 
     funding for this unauthorized program. Of this amount, 
     $125,000,000 is included to provide grants to public, 
     private, and non-profit health entities to develop and expand 
     integrated systems of care and address service gaps within 
     such integrated systems with a focus on primary care, mental 
     health services and substance abuse services. The program 
     will supplement existing categorical safety net programs to 
     assist communities in better harnessing their current 
     capabilities and resources. The national health care safety 
     net is under enormous strain and the demand for this 
     initiative large.
       The remaining $15,000,000 is to continue the initiative 
     that was begun in fiscal year 2000 to help states identify 
     the characteristics of the uninsured within the state and 
     approaches for providing all uninsured with health coverage 
     through an expanded state, Federal and private partnership. 
     States have shown great interest in committing to the 
     initiative and a second year of funding will produce a more 
     comprehensive set of designs for providing insurance coverage 
     for the uninsured. Sufficient funds are included to support 
     up to ten new state grants, provide technical assistance to 
     grantees and, if necessary, provide limited supplemental 
     funding to states funded in fiscal year 2000 to complete 
     their work. The Secretary is requested to submit a final 
     report on state findings no later than December 1, 2001. The 
     report should provide state by state summaries on baseline 
     information, the process by which the state developed 
     recommendations, including a description of data collection 
     and partnerships, characteristics of the uninsured within the 
     state, the proposed approaches for providing all uninsured 
     with health coverage, and the estimated public and private 
     cost of providing coverage. The report should also highlight 
     and summarize common findings, policy development efforts and 
     approaches identified by the states.
       The conference agreement includes $9,900,000 for an 
     adoption awareness program as authorized in the Child Health 
     Act of 2000.
       The conference agreement includes $10,000,000 for 
     authorized health-related activities of the Denali 
     Commission.
       The conference agreement includes $139,246,000 for program 
     management instead of $128,123,000 as proposed by the House 
     and $135,766,000 as proposed by the Senate.
       The conferees include the following amounts for the 
     following projects and activities in fiscal year 2001:
       --$230,000 for the Illinois Poison Center;
       --$250,000 for the University of Alaska to establish an 
     INPSYCH Center to train Alaska natives as psychologists to 
     practice in Alaska villages;
       --$500,000 for the University of Alaska, Anchorage to 
     recruit and train nurses;
       --$700,000 to support the efforts of the American 
     Federation for Negro Affairs Education and Research Fund of 
     Philadelphia;
       --$900,000 for Northeastern University in Boston, 
     Massachusetts to train doctors to serve low-income 
     communities; and
       --$900,000 for Des Moines University Osteopathic Medical 
     Center for development of a model program for training and 
     education in the field of geriatrics.
       The Child Health Act of 2000 authorizes oral health 
     activities intended to improve the oral health of children 
     under six years of age who are eligible for services provided 
     under a Federal health program. These activities should 
     increase the utilization of dental services by such children 
     and decrease the incidence of early childhood and baby bottle 
     tooth decay. The conferees are supportive of these efforts.

               Centers for Disease Control and Prevention


                Disease Control, Research, and Training

       The conference agreement includes $3,868,027,000 for 
     disease control, research, and training instead of 
     $3,386,369,000 as proposed by the House and $3,251,996,000 as 
     proposed by the Senate.
       The conference agreement includes $175,000,000 for 
     equipment, construction, and renovation of facilities as 
     proposed by the Senate instead of $145,000,000 as proposed by 
     the House. The conference agreement includes bill language to 
     allow CDC to enter into a single contract or related 
     contracts for the full scope of development and construction 
     of facilities as proposed by the Senate. The House bill 
     provided this authority only for laboratory building 18.
       The conference agreement includes a total of $97,354,000 
     for the National Center for Health Statistics instead of 
     $86,759,000 as proposed by the House and $105,110,000 as 
     proposed by the Senate. The conference agreement also 
     includes bill language designating $71,690,000 of the total 
     to be available to the Center under the Public Health Service 
     Act one percent evaluation set-aside as proposed by the House 
     instead of $91,129,000 as proposed by the Senate.
       The conference agreement includes bill language to allow 
     funds recouped from fiscal years 2000 and 2001 obligations 
     for the influenza vaccine stockpile to be used in fiscal year 
     2001 for childhood vaccine purchase.
       The conference agreement does not include language proposed 
     by the Senate to allow funds made available for section 317A 
     of the Public Health Service Act to be used at Early Head 
     Start program sites. The House bill contained no similar 
     provision.
       The conference agreement consolidates the salaries and 
     expenses of CDC into a single account. Salaries and expenses 
     activities encompass all non-extramural activities with the 
     exception of program support services, centrally managed 
     services, and buildings and facilities. The agency may 
     allocate administrative funds for extramural program 
     activities according to its judgment. Funds should be 
     apportioned and allocated consistent with the table, and any 
     changes in funding are subject to the normal notification 
     procedures.
       The conference agreement includes $175,969,000 for the 
     prevention health services block grant instead of 
     $175,964,000 as proposed by the House and $175,124,000 as 
     proposed by the Senate. Within the total provided, 
     $44,225,000 is for rape prevention and education activities 
     previously funded through the Crime Trust Fund.
       The conference agreement includes $23,012,000 for 
     prevention centers instead of $23,000,000 as proposed by the 
     House and $14,080,000 as proposed by the Senate.
       The conferees include $700,000 for the Roger Williams 
     Medical Center Healthlink program in Providence, Rhode Island 
     to develop and implement a comprehensive health promotion 
     initiative for senior retirees.
       The conference agreement includes $529,461,000 for 
     childhood immunization instead of $472,966,000 as proposed by 
     the House and $499,005,000 as proposed by the Senate. 
     Included in this amount is an increase of $42,487,000 for 
     operation/infrastructure activities, $5,000,000 for global 
     polio eradication activities, and $20,000,000 for vaccine 
     purchase. The conferees intend that funds available for 
     vaccine purchase are for all currently licensed and 
     recommended vaccines. In addition, the Vaccines for Children 
     (VFC) program funded through the Medicaid program is expected 
     to provide $469,054,000 in vaccine purchases and distribution 
     support in fiscal year 2001, for a total program level of 
     $1,016,528,000.
       The conferees recommend that CDC discontinue immunization 
     incentive grants and that CDC award the $33,000,000 
     previously committed for this program as part of the entire 
     operations funding to support State grantees cumulative core 
     budgets. Incorporating incentive grants into States' base 
     operations award would allow more States to receive a greater 
     proportion of their core budget and help improve their 
     overall immunization coverage levels. The conferees recommend 
     that CDC use grant funding made available due to the 
     completion of Congressionally-directed demonstration projects 
     to ensure that all States receive at least the same level of 
     operational funding received in fiscal year 2000, thereby 
     holding them harmless during this funding shift from a 
     formula based approach.
       Funding for measles vaccine for supplemental measles 
     immunization campaigns and epidemiological, laboratory, and 
     programmatic/operational support to the World Health 
     Organziation and its member countries is included in measles 
     eradication funding not polio eradication funding as 
     identified in the Senate report.
       The conference agreement includes $767,246,000 for HIV/AIDS 
     instead of $673,367,000 as proposed by the House and 
     $640,000,000 as proposed by the Senate. Included in this 
     amount is an additional

[[Page 26704]]

      $3,000,000 to maintain the current hematologic and blood 
     safety program commitments and to expand support for the 
     treatment centers network in carrying out initiatives to 
     address the complications of hemophilia, including HIV/AIDS, 
     blood safety surveillance and monitoring, and the needs of 
     women with bleeding disorders.
       The conferees recognize the devastating impact of the 
     global AIDS epidemic upon individuals, families and 
     communities in Africa and Asia and have included $104,527,000 
     for global HIV/AIDS activities at CDC, which shall be 
     available until September 30, 2002. This amount is an 
     increase of $69,527,000 over the fiscal year 2000 
     appropriation. With funding received in fiscal year 2000, 
     CDC, in collaboration with USAID and other federal agencies, 
     has begun to combat the AIDS epidemic in 14 of the hardest 
     hit countries in Africa and in India. The conferees urge CDC 
     to continue to work in collaboration with USAID and other 
     departments such as the Department of Defense and the 
     Department of Labor, and other DHHS agencies especially HRSA, 
     as well as international agencies, non-governmental 
     organizations and country governments to halt the spread of 
     the epidemic and lessen its impact. In those countries where 
     CDC already has a presence, CDC, in collaboration with USAID 
     and HRSA, should assist in implementing country-wide care and 
     prevention programs. This will include partnering with HRSA 
     to develop health care services focused on mobilizing 
     communities for the development of palliative care, basic 
     treatment, and support services. In addition, CDC should 
     begin to assist other areas at high risk for severe epidemics 
     including other African countries, Southeast Asia, and the 
     Caribbean/Latin American region. Finally, CDC should support 
     targeted anti-retroviral treatment demonstration projects in 
     countries where sufficient care and treatment infrastructures 
     exist. Within the total for international HIV/AIDS 
     activities, the conferees provide $3,000,000 through CDC to 
     support HRSA activities aimed at improving professional 
     education and training relating to this initiative. The 
     conferees have also included language to extend certain 
     authorities of the Department of State to the Secretary of 
     HHS so that CDC may use State's administrative systems for 
     personnel, contracting and procurement, and for limited 
     renovation or construction of essential program facilities.
       As a preventive vaccine offers the world's best hope for 
     turning the tide against the global AIDS pandemic, and since 
     international collaborations are essential for this goal, the 
     conferees encourage CDC to work collaboratively with the 
     International AIDS Vaccine Initiative and other global 
     organizations to accelerate the development and testing of 
     promising vaccine candidates.
       The conferees have provided additional funds to respond to 
     the unmet needs identified through the community planning 
     process. These funds are to augment the cooperative 
     agreements between CDC and State and local health 
     departments.
       The conferees recommend that CDC allocate an increase to 
     evaluate HIV prevention service delivery programs to improve 
     funding decision-making and to implement more rapid effective 
     transfer of technology to community based service delivery 
     organizations and health departments. Approximately half of 
     this amount should support evaluation activities to track 
     service delivery by community based organizations, and 
     utilize cost-effectiveness analysis in HIV prevention. The 
     remaining funds would be used to expand technology transfer 
     regarding HIV prevention through activities such as regional 
     technical assistance, technology transfer, and training for 
     the purpose of providing links between evidence-based HIV 
     prevention science and public health departments, community 
     planning groups, healthcare providers, and prevention science 
     providers.
       The conference agreement includes $88,000,000 to fund CDC 
     activities that are designed to address the trend of the HIV/
     AIDS epidemic in communities of color, based on the most 
     recent estimated living AIDS cases, HIV infections and AIDS 
     mortality among ethnic and racial minorities as reported by 
     the CDC. The program initiative includes funds for the ''Know 
     Your Status'' campaign. The conferees have included funds for 
     the Directly Funded Minority Community Based Organization 
     program to fund grant applications from minority 
     organizations with a history of providing services to 
     communities of color to develop and expand HIV prevention 
     interventions and services targeted to highly impacted 
     minority men, women, youth and sub-populations. Funds are 
     also included to create grants under the CDC Community 
     Development Program to support needs assessments and enhance 
     community planning processes to integrate HIV, STD, TB, 
     substance abuse prevention and treatment, care and community 
     development within communities of color. Funds are to be 
     allocated for technical assistance programs for grantees 
     under the Directly Funded Minority CBO program, for Faith-
     Based Initiative Programs including community based 
     organizations interested in developing coalitions and 
     partnerships with faith based institutions. Funds are also 
     provided for CDC's HIV surveillance activities to better 
     track the epidemic and target resources. These funds are to 
     be allocated based on program priorities identified in the 
     previous fiscal year as well as new priorities.
       The conference agreement includes $126,528,000 for 
     tuberculosis (TB) instead of $120,364,000 as proposed by the 
     House and $113,413,000 as proposed by the Senate. The 
     conferees intend that the increase over the President's 
     request be used to reduce the number of foreign born TB cases 
     contributing to the U.S. caseload, strengthen domestic TB 
     control programs, and provide preventive therapy to 
     individuals who have latent TB infection and are high-risk 
     for developing active, infectious TB.
       The conferees include $184,000 for Onondaga County, New 
     York Health Department to establish a prospective 
     tuberculosis control program for Central New York industries.
       The conference agreement includes $148,256,000 for sexually 
     transmitted diseases instead of $136,743,000 as proposed by 
     the House and $135,978,000 as proposed by the Senate. The 
     conferees provide $6,000,000 over fiscal year 2000 funding 
     for chlamydia and $14,934,000 over fiscal year 2000 funding 
     for syphilis. Except for the administrative contribution 
     required by CDC, all of this increase for chlamydia must be 
     spent on appropriate services to patients to prevent 
     chlamydia infections using the existing partnership between 
     STD and family planning. The conferees recognize that given 
     the problem of re-infection and other factors, some of these 
     funds may be utilized to provide screening and treatment to 
     males as deemed appropriate by CDC.
       The conference agreement includes $417,039,000 for chronic 
     and environmental diseases instead of $317,374,000 as 
     proposed by the House and $319,553,000 as proposed by the 
     Senate. Programs within this account are funded (including 
     salaries and expenses) at the following levels:
Environmental Disease Prevention:
  Arctic populations...........................................$390,000
  Asthma.....................................................27,906,362
  Autism......................................................6,734,000
  Birth defects..............................................17,608,000
  Disabilities prevention....................................15,276,000
  Environmental lab and health activities....................46,593,117
  Fetal alcohol syndrome......................................9,551,843
  Folic Acid..................................................2,500,000
  Hanford Study...............................................1,679,000
  Limb Loss...................................................3,352,000
  Mild mental retardation.....................................4,396,000
  Newborn Hearing Screening...................................6,315,576
  Pfisteria...................................................9,081,000
  Radiation...................................................1,949,000
  Spina bifida................................................2,155,000
  Volcanic emissions.............................................97,000
                                                       ________________
                                                       
    Subtotal, Environmental.................................155,583,898
Chronic Disease Prevention & Health Promotion:
  Arthritis and healthy aging................................11,889,000
  Behavior risk factor surveillance...........................1,918,000
  Cancer registries..........................................36,434,297
  Cardiovascular diseases....................................35,038,825
  Chronic fatigue syndrome....................................7,000,000
  Colorectal cancer...........................................8,901,345
  Community health promotion..................................7,164,000
  Comprehensive cancer control................................3,096,000
  Diabetes...................................................58,344,038
  Epilepsy....................................................4,074,255
  Iron overload.................................................495,000
  Nutrition/Physical activity................................16,222,438
  Oral health.................................................8,460,000
  Prevention of teen pregnancies.............................13,258,000
  Prostate cancer............................................11,173,000
  School health program.......................................9,775,000
  Skin cancer.................................................1,647,000
  Tobacco (smoking and health)..............................103,355,034
  Women's health..............................................1,500,000
  Ovarian cancer..............................................2,625,870
    Subtotal, Chronic.......................................342,371,102
  Consolidated program administration.......................-80,916,000
                                                       ________________
                                                       
    Total, Chronic & Environmental..........................417,039,000
       Within the total provided for arthritis, the conferees urge 
     CDC to continue research, surveillance, and health 
     communication efforts, including the impact of lupus on 
     women, within the framework of the National Arthritis Action 
     Plan.
       Within the total provided for cardiovascular diseases, the 
     conferees expect CDC to enhance professional and public 
     awareness outreach activities on pulmonary hypertension.
       Within the total provided for nutrition/physical activity, 
     the conferees expect CDC to address overweight, obesity, 
     nutrition, and sedentary lifestyles by supporting state-based 
     programs, by training health professionals to recognize the 
     signs of obesity and recommend prevention activities, by 
     educating the public concerning overweight or obesity through 
     public education campaigns, and by developing strategies for 
     use at worksites and in community health and other community 
     settings.

[[Page 26705]]

       Native American populations have a diabetes rate of four 
     times the national average with Hispanics following a close 
     second. The conferees urge CDC to fund pilot projects to 
     examine nutrition and prevention protocols for these 
     populations.
       The conferees look forward to the completion of the 
     evidence-based report being developed by CDC and the Agency 
     for Healthcare Research and Quality that will assess the 
     elements of epilepsy treatment as they relate to clinical 
     outcomes. CDC is expected to disseminate the findings of this 
     report to people with epilepsy, health care professionals, 
     and the general public. The Director should be prepared to 
     provide the next steps required to implement an early 
     intervention strategy including diagnosis, treatment, and 
     referral recommendations at the fiscal year 2002 
     appropriations hearing.
       The conferees are encouraged that CDC plans to convene a 
     meeting to develop a national prostate cancer public health 
     agenda. The conferees urge the agency to continue its work 
     with voluntary public and professional organizations to 
     develop and implement a national educational and outreach 
     campaign with special attention to minority and under served 
     populations. CDC should be prepared to report on its prostate 
     cancer programs at the fiscal year 2002 appropriations 
     hearing.
       The conferees urge CDC to give full and fair consideration 
     to a proposal to develop a diversified screening 
     demonstration project with the Dean and Betty Gallo Prostate 
     Cancer Center at the Cancer Center of New Jersey and the 
     Men's Health Network designed to determine effective methods 
     for encouraging men in the underserved population to 
     participate in colorectal screening and screening for other 
     high risk diseases.
       The conferees urge CDC to provide additional support for 
     Johns Hopkins University to develop the Center for Limb Loss 
     Research.
       The conferees include the following amounts for the 
     following projects and activities in fiscal year 2001.
       Within the total provided for asthma, $213,000 is for the 
     Buffalo General Foundation, Buffalo, New York, for a study 
     examining the impact of air pollution on asthma rates and 
     respiratory illness and $921,000 is for Forum Health of 
     Youngstown, Ohio for a pediatric/adolescent asthma school 
     program.
       Within the total provided for autism, $313,000 is for the 
     Marshall University autism center in Huntington, West 
     Virginia; $921,000 is for the New Jersey Epidemiologic 
     Surveillance and Integration Center for Children with Autism; 
     and $3,000,000 is for the Center of Excellence in Autism.
       Within the total provided for birth defects, $147,000 is 
     for the Birth Defects Monitoring and Prevention Center at the 
     University of South Alabama and $461,000 is for the 
     University of Louisville Craniofacial Birth Defects Research 
     Center.
       Within the total provided for cardiovascular diseases, 
     $46,000 is for the Sisters of Charity Health Care System and 
     Staten Island University Hospital's Heart Center; $500,000 
     for the Michael DeBakey Institute for Comparative 
     Cardiovascular Science; $929,000 is for the Kettering Medical 
     Center Healthy Hearts 2001 Initiative; and $4,500,000 is for 
     The Paul Coverdell National Acute Stroke Registry to track 
     and improve the delivery of care to patients with acute 
     stroke. The conferees direct CDC to consult with the National 
     Institute for Neurological Disorders and Stroke at the 
     National Institutes of Health, the Brain Attack Coalition, 
     and other professional organizations experienced in the 
     treatment of stroke, in developing specific data points for 
     collection as well as appropriate benchmarks for analyzing 
     care. The conferees further direct CDC to include hospitals, 
     universities, state and local health departments, and other 
     appropriate partners to design and pilot test prototypes, 
     that will measure the delivery of care to patients with acute 
     stroke in order to provide real-time data and analysis to 
     reduce death and disability from stroke and improve the 
     quality of life for acute stroke survivors.
       Within the total provided for colorectal cancer, $184,000 
     is for the Sisters of Charity Health Care System to ensure 
     that patients have access to early detection of gastro-
     intestinal cancers.
       Within the total provided for community health promotion, 
     $553,000 is for the Baltimore City Health Department, 
     Maryland, to establish a Center for Chronic Diseases and 
     $900,000 is for the University of Texas, Dallas, for the 
     Southwestern Medical Center, National Multiple Sclerosis 
     Training Center.
       Within the total provided for comprehensive cancer control, 
     $425,000 is for Miami-Dade County, Florida for the Health 
     Choice Network to administer the Jesse Trice Cancer 
     Prevention Project; $921,000 is for an Appalachian cancer 
     demonstration project at the East Tennessee State University 
     James H. Quillen College of Medicine to address cancer care 
     in the rural Appalachian region; $900,000 is for the 
     University of Rhode Island Cancer Prevention Research Center 
     to provide interactive interventions of at-risk populations; 
     and $850,000 is for the University of Texas M.D. Anderson 
     Cancer Center in Houston, Texas, for a comprehensive cancer 
     control program to address minority and medically undeserved 
     populations.
       Within the total provided for diabetes, $230,000 for the 
     Fresno Community Hospital and Medical Center to support a 
     minority-focused diabetes outreach program; $213,000 is for 
     the Diabetes-Endocrinology Center of Western New York in 
     Buffalo for community education and outreach efforts to 
     improve the early detection, prevention and control of 
     diabetes; $276,000 is for a comprehensive diabetic research, 
     education and treatment program at Louisiana State Health 
     Sciences Center in Shreveport; $425,000 is for the University 
     of Puerto Rico to support surveillance, prevention research 
     and education programs at the center for diabetes in Puerto 
     Rico; $1,000,000 is for the National Diabetes Prevention 
     Center in Gallup, New Mexico to continue the prevention 
     center for American Indians; and $1,843,000 is for the Center 
     for Diabetes and Prevention Control at Texas Tech University 
     Health Sciences Center to provide a national model of 
     diabetes outreach, education, prevention and care.
       Within the total provided for disabilities prevention, 
     $3,000,000 is to establish a paralysis information and 
     support center with the Christopher Reeve Paralysis 
     Foundation and to enhance efforts on the prevention of 
     secondary complications to improve outcomes and the quality 
     of life for people living with paralysis.
       Within the total provided for environmental health 
     activities, $213,000 is for the San Antonio Metropolitan 
     Health District to expand an assessment of human exposure to 
     environmental contaminants near Kelly Air Force Base, Texas; 
     $400,000 is for the establishment of a National Mass 
     Fatalities Training Response Center, at Kirkwood Community 
     College in Cedar Rapids, Iowa; $500,000 is for the State of 
     Alaska's Department of Health and Social Services to study 
     environmental contaminants; $850,000 for a joint United 
     States/Vietnamese study on the effects of agent orange; 
     $850,000 for the University of North Carolina at Chapel Hill 
     to support additional research on animal modeling of chronic 
     human diseases such as cancer, fibrosis, hypertension, and 
     other diseases; and $1,800,000 for the Center for 
     Environmental Medicine and Toxicology at the University of 
     Mississippi Medical Center in Jackson, Mississippi.
       Within the total provided for nutrition/physical activity, 
     $250,000 is for the National Youth Fitness and Obesity 
     Institute at the University of Northern Iowa; $298,000 is for 
     the University of North Carolina at Greensboro, North 
     Carolina, Institute for Health, Science and Society for the 
     Children's Healthy Life Skills Initiative; and $461,000 is 
     for the Grenada Lake Medical Center in Grenada, Mississippi 
     to conduct a demonstration on physical fitness in rural 
     areas.
       Within the total provided for school health program, 
     $140,000 is for Proviso East High School in Maywood, Illinois 
     in collaboration with Loyola University of Chicago and the 
     Cook County Board of Health to improve the delivery of on-
     site primary care, preventive care, and health outreach to 
     low-income parents and students in the community.
       Within the total provided for tobacco, $900,000 is for the 
     University of Rhode Island Tobacco Cessation Program to 
     compare media and policy interventions on smoking cessation 
     and adoption of no smoking policies in the home.
       The conference agreement includes $173,928,000 for breast 
     and cervical cancer screening instead of $160,941,000 as 
     proposed by the House and $167,016,000 as proposed by the 
     Senate. The conference agreement includes bill language to 
     allow the agency to expand the WISEWOMAN program to not more 
     than 15 States as proposed by the Senate. The House bill 
     allowed the agency to expand the program to not more than 10 
     States.
       The conferees urge the CDC to give full and fair 
     consideration to proposals from Access Community Health 
     Network in Chicago for delivering breast and cervical cancer 
     screening and follow-up services to minority women.
       The conferees include the following amounts for the 
     following projects and activities in fiscal year 2001:
       --$92,000 to evaluate the high incidence of breast cancer 
     in DuPage County, Illinois;
       --$213,000 for Marin County, California to evaluate the 
     high incidence of breast cancer in the San Francisco Bay 
     Area;
       --$1,671,000 for the Healthcare Association of New York 
     State for a breast cancer demonstration project to develop an 
     integrated model for the delivery of comprehensive breast 
     cancer services in a coordinated setting.
       The conference agreement includes $181,701,000 for 
     infectious diseases instead of $111,622,000 as proposed by 
     the House and $112,000,000 as proposed by the Senate. Within 
     the total provided, $25,000,000 is for the establishment of 
     partnerships between CDC and academic institutions and State 
     and local public health departments to carry out pilot 
     programs for antimicrobial resistance detection, 
     surveillance, education and prevention, and to conduct 
     research on resistance mechanisms and new or more effective 
     antimicrobial compounds.
       The conferees commend CDC for its initiative to work with 
     hospitals in identifying

[[Page 26706]]

     and responding to the risk of hospital-acquired infections 
     and the emergence of antimicrobial resistance in the 
     pediatric population, including its successful development of 
     the largest hospital-based infection control network in the 
     country. The conferees encourage CDC to continue its effort 
     to work with pediatric hospital networks to improve infection 
     control efforts for children, particularly high-risk 
     children.
       Within the total provided, $25,000,000 is to continue 
     planned activities and to expand efforts to control the West 
     Nile virus, an increase of $20,000,000 above the President's 
     request. The conferees direct CDC to ensure an equitable 
     distribution of these funds based on the impact of the West 
     Nile virus in particular states and localities during 
     calendar year 2000. The criteria should include: the date of 
     first positive findings, intensity of wildlife transmission, 
     occurrence of human illness, geographic extent of positive 
     findings, laboratory testing/activities, and employment of 
     control measures, including spraying.
       Also within the total provided is $34,577,000 for NEDSS/EID 
     and an increase of $4,000,000 for malaria programs.
       The conferees urge CDC to give full and fair consideration 
     to a proposal by Advance Paradigm to demonstrate the role of 
     provider utilization of information technology to improve 
     patient safety through management of polypharmacy outcomes.
       The conferees include the following amounts for the 
     following projects and activities in fiscal year 2001:
       --$149,000 for Case Western Reserve University, Cleveland, 
     Ohio for prion disease surveillance;
       --$250,000 for the Institute for Clinical Evaluation for 
     the reduction of medical errors through the development and 
     demonstration of virtual reality medical technology 
     simulation for training health care workers in medical 
     procedures;
       --$300,000 for the Fletcher Allen Health Care, Burlington, 
     Vermont for a demonstration to reduce medical errors;
       --$500,000 for the Iowa Department of Public Health for a 
     demonstration to identify and develop strategies to reduce 
     adverse medical events;
       --$961,000 for the University of Texas Medical Branch, 
     Galveston, Texas, Tyler Border Infectious Disease Monitoring 
     Program;
       --$921,000 for the Emerging Infectious Diseases Center at 
     the University of New Mexico in Albuquerque to develop a 
     network-based surveillance system; and
       --$1,843,000 to develop a comprehensive, statewide 
     electronic public health reporting system in the State of 
     Delaware.
       The conference agreement includes $34,933,000 for lead 
     poisoning prevention instead of $31,019,000 as proposed by 
     the House and $30,978,000 as proposed by the Senate. CDC is 
     encouraged to work with Early Head Start in developing a 
     strategy identify and target resources for childhood lead 
     poisoning prevention to high-risk populations.
       The conference agreement includes $77,332,000 for injury 
     control instead of $66,298,000 as proposed by the House and 
     $69,000,000 as proposed by the Senate.
       The conferees have provided an additional $3,000,000 for 
     CDC to strengthen its focus on violence by supporting 
     initiatives directed at the prevention of physical and 
     emotional injuries associated with child abuse and neglect. 
     The conferees note that CDC convened a group of experts on 
     child maltreatment to identify future directions for 
     prevention. Increased funds are provided to begin to improve 
     information on child maltreatment through mechanisms such as 
     state-based surveillance, the development of uniform 
     definitions, and survey information from victims and 
     perpetrators. The conferees also support the evaluation and 
     dissemination of effective interventions and urge CDC to 
     develop and distribute an evaluation primer, a resource guide 
     for evaluated child maltreatment interventions, and 
     educational materials on child maltreatment prevention.
       The conferees include $2,000,000 to support a joint effort 
     by CDC and the Consumer Product Safety Commission to identify 
     products that contribute to common injuries. The conferees 
     understand that this effort includes collecting information 
     from hospitals that currently offer 24-hour trauma service. 
     The conferees agree that any research and/or study undertaken 
     shall address all products contributing to injuries found in 
     these areas and that all existing restrictions on CDC funding 
     and the Consumer Product Safety Commission apply to all 
     aspects of this effort.
       CDC is urged to conduct evaluation research on sleepiness, 
     sleep deprivation, and injury prevention associated with 
     fatigue.
       The conferees concur with Senate report language regarding 
     the development of population-based injury reporting systems 
     and recognize the efforts of the University of Maryland, 
     College Park.
       The conferees include the following amounts for the 
     following projects and activities in fiscal year 2001:
       --$92,000 for the Rebuild program at Inova Fairfax Hospital 
     that will enable trauma system doctors and nurses to work 
     effectively with the families of trauma victims;
       --$200,000 for the National Children's Center of Rural 
     Agricultural Health;
       --$250,000 for the American Trauma Society for a trauma 
     information and exchange program;
       --$425,000 for the National SAFE KIDS Campaign, Washington, 
     DC to improve child health through parental training and 
     technical assistance in public housing sites and communities;
       --$750,000 for an Alaska Injury Prevention Center of which 
     $250,000 is for collaboration with the State of Alaska 
     Department of Health and Social Services and $500,000 is to 
     develop a statewide childhood injury prevention program;
       --$850,000 for the Kennedy Krieger National Center for 
     Research on Behavior of Children and Youth, Baltimore, 
     Maryland for a youth violence prevention project; and
       --$921,000 for the Save A Life Foundation to expand the 
     training of its basic life supporting first aid program.
       The conference agreement includes $119,375,000 for the 
     national occupational safety and health program instead of 
     $86,346,000 as proposed by the House and $105,000,000 as 
     proposed by the Senate.
       The conferees provide an increase over the request of 
     $10,000,000 for the National Occupational Research Agenda, 
     $9,000,000 for respirator research and personal protective 
     technology, and $1,000,000 for Education and Resource 
     Centers.
       The conferees urge NIOSH to be supportive of developing a 
     Pacific basin focus at the University of Hawaii at Hilo.
       The conferees include $723,000 for Purdue University in 
     West Lafayette, Indiana, to support the Construction Safety 
     Alliance for a national program in construction safety and 
     health.
       The conference agreement includes $174,851,000 for epidemic 
     services instead of $155,338,000 as proposed by the House and 
     $30,254,000 as proposed by the Senate. Within the total 
     provided, $125,000,000 is for a National Campaign to Change 
     Children's Health Behaviors as described in the House report, 
     including promoting mental health. The campaign is designed 
     to clearly communicate messages that will help kids develop 
     habits that foster good health over a lifetime. The conferees 
     expect the goals of the campaign will also address the 
     growing problem of obesity in this country. By displacing the 
     opportunity for young people to make bad choices during 
     after-school and weekend hours (such as being physically 
     inactive) with opportunities to engage in positive goal-
     directed activities (such as sports and other physical 
     activity) the campaign will reduce the proportion of children 
     and adolescents who are overweight and obese.
       The conferees commend CDC's leadership role in landmine 
     victim assistance programs and have provided an additional 
     $5,000,000 to support expansion of the landmine survivor 
     program as well as the partnership with the Landmine 
     Survivors Network to further develop peer support networks 
     that address the rehabilitative and socioeconomic needs of 
     landmine victims in mine affected countries.
       The agreement includes $14,000,000 for the safe motherhood 
     initiative. The conferees urge CDC to further its efforts to 
     prevent deaths and complications during pregnancy and reduce 
     racial disparities, with special focus on complications 
     related to a lack of access to prenatal care and community 
     support.
       The conferees include the following amounts for the 
     following projects and activities in fiscal year 2001:
       --$9,000 for the Cross Road Foundation for a pilot project 
     to sponsor singles mother self-help groups to improve 
     parenting skills;
       --$37,000 for Victory Memorial Hospital in Brooklyn, New 
     York to expand its prenatal program for uninsured, pregnant 
     women;
       --$100,000 for the Northern New Jersey Maternal Child 
     Health Consortium;
       --$184,000 for the Children's Hospital of Buffalo for 
     activities related to intestinal motility disorders in 
     infants;
       --$500,000 for the University Medical Center of Southern 
     Nevada for Maternal and Neonatal Intensive Care;
       --$900,000 for Sudden Infant Death Syndrome Resources, 
     Inc., Missouri Bootheel Healthy Start project;
       --$1,000,000 for the Prince George's County Health 
     Department for Infant Mortality Prevention;
       --$1,020,000 for Jackson State University, Office of 
     Research and Development to establish an epidemiological 
     research institute;
       --$1,704,000 is for the University of Arizona, College of 
     Public Health to continue comprehensive research and 
     evaluation of the unique public health risks along the U.S.-
     Mexico border; and
       --$3,001,000 for the Lawton and Rhea Chiles Center for 
     Healthy Mothers and Babies Friendly Access program to improve 
     the quality of perinatal health service delivery.
       The conference agreement includes $13,593,000 for 
     prevention research as proposed by the House instead of 
     $13,386,000 as proposed by the Senate.
       The conference agreement includes $35,009,000 for health 
     disparities demonstrations instead of $32,184,000 as proposed 
     by the House and $27,000,000 as proposed by the Senate.
       The conference agreement includes $669,130,000 for program 
     administration instead of $648,774,000 as proposed by the 
     House and $626,228,000 as proposed by the Senate.

[[Page 26707]]

       The conferees do not include language proposed by the 
     Senate to reduce administrative expenses of the CDC. The 
     House bill contained no similar provision.

                     National Institutes of Health


                       National Cancer Institute

       The conference agreement includes $3,757,242,000 for the 
     National Cancer Institute instead of $3,793,587,000 as 
     proposed by the House and $3,804,084,000 as proposed by the 
     Senate.
       NCI is encouraged to take appropriate steps to take full 
     advantage of scientific opportunities that may be available 
     from using genealogical databases to understand, diagnose, 
     treat and prevent cancer and other diseases.


                National Heart, Lung and Blood Institute

       The conference agreement includes $2,299,866,000 for the 
     National Heart, Lung and Blood Institute instead of 
     $2,321,320,000 as proposed by the House and $2,328,102,000 as 
     proposed by the Senate.
       The conferees support research on the interaction of 
     tuberculosis and AIDS conducted through the Institute's AIDS 
     research program and encourage enhanced research in this 
     area. The conferees also urge NHLBI to continue research and 
     development efforts in the area of polynitroxylated 
     hemoglobin, a blood cell substitute being developed to 
     provide oxygen carrying capacity and adequate blood flow to 
     the critically injured.


         National Institute of Dental and Craniofacial Research

       The conference agreement includes $306,448,000 for the 
     National Institute of Dental and Craniofacial Research 
     instead of $309,007,000 as proposed by the House and 
     $309,923,000 as proposed by the Senate.
       The conferees are concerned about the exceptionally high 
     rate of severe dental caries suffered by American Indian 
     children and encourage NIDCR to support long-term research of 
     the etiology and pathogenesis of dental caries in these 
     populations. The conferees also encourage NIDCR to conduct 
     research on effective ways to control severe caries in 
     American Indian children through all available mechanisms, as 
     appropriate, including clinical trials.


    national institute of diabetes and digestive and kidney diseases

       The conference agreement includes $1,303,385,000 for the 
     National Institute of Diabetes and Digestive and Kidney 
     Diseases instead of $1,315,530,000 as proposed by the House 
     and $1,318,106,000 as proposed by the Senate.
       The conferees are concerned that the urology research 
     effort is not addressing the large public health impact of 
     urological diseases and conditions. NIDDK is strongly urged 
     to enhance its research initiatives in urology.
       The conferees encourage NIDDK to coordinate with the Office 
     of Dietary Supplements on their findings from the chromium 
     and diabetes nutrition conference held in November of 1999. 
     The Institute is encouraged to enhance basic research grants 
     to examine cellular glucose metabolism and the factors that 
     influence that metabolism, especially the influence of 
     chromium-containing compounds on glucose receptors.
       The conferees encourage NIDDK to expand research efforts 
     for treatments for mucopolysaccharidosis (MPS). The conferees 
     recognize the recent progress in some areas of MPS research, 
     however the persistent challenges in development of effective 
     treatments remain. NIDDK is encouraged to work with other 
     Institutes, especially NINDS and NICHD, to research effective 
     therapies.
       The conferees are concerned regarding reports that funding 
     for two of the four recently established Interdisciplinary 
     Research Centers have been significantly reduced. The 
     conferees urge NIDDK, consistent with the PKD Strategic Plan, 
     to fully fund the four Interdisciplinary Research Centers.
       The conferees are pleased with the growth of the NIDDK 
     research portfolio on inflammatory bowel disease (IBD) and 
     the focus on IBD in several of the Institute's digestive 
     diseases centers. Moreover, several new initiatives are 
     planned, including efforts to create an IBD genetics 
     consortium in followup to a meeting NIDDK held in March 2000 
     on the genetics of IBD. The conferees are hopeful that IBD 
     will be one of the diseases to be studied in the soon-to-be-
     established NIDDK digestive diseases trial network. The 
     conferees urge the Institute to foster research on genetic, 
     environmental and other factors that offer promise of 
     shedding light on the underlying causes of immunologic 
     abnormalities and inflammatory mechanisms in IBD, and that 
     may help point the way to more effective therapeutic and 
     preventive strategies.


        national institute of neurological disorders and stroke

       The conference agreement includes $1,176,482,000 for the 
     National Institute of Neurological Disorders and Stroke 
     instead of $1,185,767,000 as proposed by the House and 
     $1,189,425,000 as proposed by the Senate.
       The conferees are aware of the efforts of NINDS to identify 
     the gene that causes Mucolipidosis Type IV (ML-4), a 
     debilitating genetic metabolic disorder that prevents normal 
     development in children. The conferees encourage NINDS to 
     consider conducting workshops and expand research efforts in 
     this area.
       The conferees urge NINDS to enhance research activities on 
     the development or adaptation of electrical stimulation 
     devices to activate the reflexes of the paralyzed muscles 
     that open the airway during breathing in cases of paralyzed 
     vocal cords due to trauma or neurodegenerative disease.
       The conferees encourage NINDS to continue their 
     collaborative efforts with advocacy groups to develop 
     treatments for Friedreich's ataxia.
       Recent advances in Spinal Muscular Atrophy (SMA) research 
     have found that activation of the SMN2 gene may benefit 
     treatment of SMA. The conferees urge NINDS to develop a SMA 
     basic and clinical research portfolio through all available 
     mechanisms, as appropriate, including clinical trials of drug 
     compounds capable of activating SMN2 expression. The 
     conferees also encourage the Institute to explore areas of 
     promising research identified in the 2000 Families of SMA 
     International Workshop.
       Mitochondrial disorders comprise a panoply of progressive, 
     neurodegenerative syndromes affecting multiple organ systems 
     and causing mild to severe disabling neurological 
     complications. At present there is no cure or therapies that 
     are effective. It is recognized that adult onset disorders 
     such as Parkinson's, Alzheimer's, and Huntington's diseases 
     may have an associated mitochondrial defect. The conferees 
     urge NINDS and other relevant Institutes to explore the 
     potential applicability of promising new therapies for these 
     diseases in treating patients with mitochondrial disorders.
       The conferees are pleased to note that progress continues 
     to be made both with respect to the treatment and in our 
     understanding of the cause of multiple sclerosis. Recent 
     studies have provided the best evidence to date that the 
     disease is caused by over-reactivity of a person's own immune 
     response. Based on these advances, the conferees encourage 
     NINDS to expand its efforts to test new, innovative 
     therapies. Research strategies should include the use of MRI 
     and other surrogate biomarkers to help determine the stage of 
     the disease, to evaluate effective treatments, and to improve 
     diagnosis.


         National Institute of Allergy and Infectious Diseases

       The conference agreement includes $2,043,208,000 for the 
     National Institute of Allergy and Infectious Diseases instead 
     of $2,062,126,000 as proposed by the House and $2,066,526,000 
     as proposed by the Senate.


             National Institute of General Medical Sciences

       The conference agreement includes $1,535,823,000 for the 
     National Institute of General Medical Sciences instead of 
     $1,548,313,000 as proposed by the House and $1,554,176,000 as 
     proposed by the Senate.


        National Institute of Child Health and Human Development

       The conference agreement includes $976,455,000 for the 
     National Institute of Child Health and Human Development as 
     proposed by the Senate instead of $984,300,000 as proposed by 
     the House.
       The conferees are supportive of plans to conduct a national 
     longitudinal study of environmental influences on children's 
     health. The Director of NICHD is urged to establish a 
     consortium of representatives from appropriate Federal 
     agencies, including CDC, EPA and other NIH Institutes to plan 
     and initiate pilot studies that will provide the information 
     necessary to develop and implement the full national 
     longitudinal study. To this end, the conferees have provided 
     funds to support this initiative and look forward to learning 
     of the progress made during the fiscal year 2002 
     appropriations hearing.


                         National Eye Institute

       The conference agreement includes $510,611,000 for the 
     National Eye Institute instead of $514,673,000 as proposed by 
     the House and $516,605,000 as proposed by the Senate.
       Recent progress in genetics research has opened up the 
     potential for gene-based approaches for the prevention and 
     treatment of retinal and other blinding diseases. Gene-based 
     therapies for several forms of retinal degeneration have been 
     successfully demonstrated in laboratory animal studies, and 
     preclinical work has satisfied patient safety and ethical 
     issues. The conferees urge NEI to accelerate the development 
     of these new gene-based approaches through all available 
     mechanisms, as appropriate, including clinical trials.


          National Institute of Environmental Health Sciences

       The conference agreement includes $502,549,000 for the 
     National Institute of Environmental Health Sciences instead 
     of $506,730,000 as proposed by the House and $508,263,000 as 
     proposed by the Senate.
       The causes of breast cancer are largely unknown. There is 
     little agreement in the scientific community on how the 
     environment impacts breast cancer. While studies have been 
     conducted on the links between environmental factors like 
     diet, pesticides, and electromagnetic fields, no conclusive 
     evidence exists. The conferees encourage NIEHS to enhance 
     research efforts to study the

[[Page 26708]]

     links between the environment and breast cancer through all 
     available mechanisms, as appropriate, including establishing 
     centers of excellence.


                      National Institute on Aging

       The conference agreement includes $786,039,000 for the 
     National Institute on Aging instead of $790,299,000 as 
     proposed by the House and $794,625,000 as proposed by the 
     Senate.


 National Institute of Arthritis and Musculoskeletal and Skin Diseases

       The conference agreement includes $396,687,000 for the 
     National Institute of Arthritis and Musculoskeletal and Skin 
     Diseases instead of $400,025,000 as proposed by the House and 
     $401,161,000 as proposed by the Senate.
       Osteogenesis Imperfecta (OI), more commonly known as 
     Children's Brittle Bone Disease, is a rare genetic disorder 
     for which there is presently no cure. The conferees strongly 
     encourage NIH to expand its support for research into the 
     causes, diagnosis, treatment, prevention, and eventual cure 
     for OI and to coordinate public research efforts with those 
     supported by the private sector. The Director of NIAMS should 
     be prepared to testify on this issue at the fiscal year 2002 
     appropriations hearing.
       Important strides have been made with the establishment of 
     the Osteoporosis and Related Bone-Disease National Resource 
     Center. The conferees urge NIAMS to expand support for the 
     resource center's current activities, including developing 
     and disseminating information based on current research 
     findings that improve knowledge and understanding of the 
     prevention, diagnosis, and treatment of osteoporosis and 
     related bone diseases, implementing and evaluating model 
     education programs to enhance bone health and reduce future 
     risk of osteoporosis, and supporting public and private 
     efforts to broaden the base of knowledge about osteoporosis 
     and related bone diseases.
       The conferees commend NIAMS for its growing support of 
     research on rheumatic diseases of childhood, including the 
     recent opening of a new Pediatric Rheumatology Clinic on the 
     NIH campus. However, the conferees are concerned about the 
     cadre of pediatric rheumatologists who are trained to treat 
     and study these diseases. NIAMS is therefore encouraged to 
     work with the Secretary of HHS and other PHS components, as 
     appropriate, to assist in evaluating the status of the 
     pediatric rheumatology workforce. In particular, the 
     Institute is encouraged to take advantage of opportunities to 
     support loan repayment for researchers working in the area of 
     childhood rheumatic diseases.


    National Institute on Deafness and Other Communication Disorders

       The conference agreement includes $300,581,000 for the 
     National Institute on Deafness and Other Communication 
     Disorders as proposed by the Senate instead of $301,787,000 
     as proposed by the House.
       The conferees urge NIDCD to continue research on inner ear 
     hair cell regeneration with special emphasis on gene delivery 
     and gene transfer technology with specific relevance to the 
     inner ear and the development of improved hearing aids and 
     cochlear implants using digital processes. The conferees also 
     urge NIDCD to continue to recruit experts from the field of 
     molecular and cellular biology and genetics.


                 National Institute of Nursing Research

       The conference agreement includes $104,370,000 for the 
     National Institute of Nursing Research instead of 
     $102,312,000 as proposed by the House and $106,848,000 as 
     proposed by the Senate.


           National Institute on Alcohol Abuse and Alcoholism

       The conference agreement includes $340,678,000 for the 
     National Institute on Alcohol Abuse and Alcoholism instead of 
     $349,216,000 as proposed by the House and $336,848,000 as 
     proposed by the Senate.


                    National Institute on Drug Abuse

       The conference agreement includes $781,327,000 for the 
     National Institute on Drug Abuse instead of $788,201,000 as 
     proposed by the House and $790,038,000 as proposed by the 
     Senate.


                  National Institute of Mental Health

       The conference agreement includes $1,107,028,000 for the 
     National Institute of Mental Health as proposed by the Senate 
     instead of $1,114,638,000 as proposed by the House.


                National Human Genome Research Institute

       The conference agreement includes $382,384,000 for the 
     National Human Genome Research Institute instead of 
     $386,410,000 as proposed by the House and $385,888,000 as 
     proposed by the Senate.


                 National Center for Research Resources

       The conference agreement includes $817,475,000 for the 
     National Center for Research Resources instead of 
     $832,027,000 as proposed by the House and $775,212,000 as 
     proposed by the Senate. The conferees include a provision to 
     waive the matching requirement for the grant or contract to 
     manage the 288 chimpanzees acquired by the Coulston 
     Foundation. The House and Senate bills contained no similar 
     provision.
       Within the total provided, $100,000,000 is for the 
     Institutional Development Awards (IDeA) program as proposed 
     by the House instead of $60,000,000 as proposed by the 
     Senate. In the implementation of these funds, the conferees 
     concur with the language contained in the House report. In 
     addition, the conferees believe that the General Clinical 
     Research Centers (GCRCs) are essential to furthering 
     biomedical research progress and have included funds for NCRR 
     above the Administration's request to permit an increase for 
     GCRCs commensurate with the overall NIH funding increase.
       The conferees urge NCRR to use a portion of the increase 
     provided for a new competition of Science Education Program 
     Awards grants. The conferees further urge that these funds be 
     used consistent with language contained in last year's House 
     and Senate reports.


                  John E. Fogarty International Center

       The conference agreement includes $50,514,000 for the John 
     E. Fogarty International Center instead of $50,299,000 as 
     proposed by the House and $61,260,000 as proposed by the 
     Senate.


                      National Library of Medicine

       The conference agreement includes $246,801,000 for the 
     National Library of Medicine instead of $256,281,000 as 
     proposed by the House and $256,953,000 as proposed by the 
     Senate.


       National Center for Complementary and Alternative Medicine

       The conference agreement includes $89,211,000 for the 
     National Center for Complementary and Alternative Medicine 
     instead of $78,880,000 as proposed by the House and 
     $100,089,000 as proposed by the Senate.
       The conferees are aware of the health benefits of 
     cranberries and cranberry juice products in maintaining 
     urinary tract health as well as their positive antibacterial 
     and antioxidant effects and believe that independent 
     Federally-funded research to test and/or validate these 
     findings could add to the arsenal of health-based and 
     nutritional alternatives to wellness. The conferees encourage 
     NCCAM to study the health benefits of cranberry products.


       National Center on Minority Health and Health Disparities

       While the overall health of the nation has improved over 
     the last two decades, there continues to be striking 
     disparities in the burden of illness and death experienced by 
     African Americans, Hispanics, Native Americans, Alaska 
     Natives, and Asian-Pacific Islanders. Moreover, the largest 
     numbers of medically underserved are white individuals, and 
     many of them have the same health and access problems as do 
     members of minority groups. Overcoming such persistent and 
     perplexing health disparities, and promoting health for all 
     Americans, ranks as one of our Nation's foremost challenges.
       These disparities are believed to be the result of the 
     complex interaction among socioeconomic and biological 
     factors, the environment, and specific behaviors, as well as 
     other factors. While some of the causes of inequitable health 
     outcomes may be beyond the scope of biomedical research, the 
     conferees recognize that NIH has made research into health 
     disparities a high priority, and has already taken steps to 
     expand the role of research into why some minority groups 
     have disproportionately high rates of disease.
       Congress recently passed and the President has signed the 
     Minority Health and Health Disparities Research and Education 
     Act of 2000. The Act established the National Center on 
     Minority Health and Health Disparities, which will enable NIH 
     to move ahead more rapidly toward its goal of elucidating the 
     factors that contribute to these disparities. The Center will 
     conduct and support research through grants to support 
     programs targeting diseases and conditions that 
     disproportionately affect minority groups and other 
     populations with health disparities. The Center will build on 
     the work of the Office for Research on Minority Health and 
     the success of the Minority Health Initiative, currently 
     located in the NIH Office of the Director. This will 
     complement the ongoing research of the NIH Research 
     Institutes and Centers also aimed at reducing health 
     disparities. To emphasize the visibility of this new Center 
     and the importance of its research mission, the conferees 
     have included bill language providing $130,200,000 for the 
     Center.


                         Office of the Director

                     (Including Transfer of Funds)

       The conference agreement includes $213,581,000 for the 
     Office of the Director instead of $342,307,000 as proposed by 
     the House and $352,165,000 as proposed by the Senate. The 
     agreement includes a designation in bill language of 
     $48,271,000 for the operations of the Office of AIDS 
     Research. The conferees understand that with the funds 
     allocated to NIH, the NIH expects to provide $2,266,987,000 
     in AIDS research funding.
       The agreement includes funds within the Office of the 
     Director to address the trend of the HIV/AIDS epidemic in 
     communities of color. The Office is encouraged to expand and 
     strengthen science-based HIV prevention research for African 
     Americans, Latinos, Native Americans, Asian Americans, Native

[[Page 26709]]

     Hawaiians and Pacific Islanders and consideration should be 
     given to the U.S. Virgin Islands and Puerto Rico. The Office 
     is also encouraged to expand existing culturally competent 
     behavioral research, conducted by minority principal 
     investigators, that seeks to break the link between HIV 
     infection and high risk behaviors and that seeks to decrease 
     the rate of mortality in targeted minority populations.
       The conferees continue to be interested in matching the 
     increased needs of researchers who rely upon human tissue and 
     organs to study human diseases and to search for cures. The 
     conferees are aware of a recent review by a panel of expects 
     that found that there is a rapidly expanding and unmet demand 
     for the use of human tissue samples for research purposes. 
     The conferees encourage the Director of NIH to work with the 
     relevant Institutes to consider expanding support in this 
     area and request that the Director be prepared to report on 
     its plan to meet the demand for human tissue at the fiscal 
     year 2002 appropriations hearing.
       The conferees encourage NIH to consider establishing a 
     trans-NIH coordinating committee to focus on the lymphatic 
     system, with particular emphasis on lymphedema and related 
     lymphatic disorders.
       The conferees are aware of concerns raised regarding the 
     progress of NIH research into fascioscapulohumeral muscular 
     dystrophy and fascioscapulohumeral disease and encourage NIH 
     to expand research in this area.
       The conferees concur with the language contained in the 
     Senate report regarding microbicides research.
       The conferees encourage NIA, NICHD, and NINDS to work 
     collaboratively to enhance research into Hutchison-Gilford 
     Progeria Syndrome, an illness that strikes children in their 
     first year causing them to age rapidly and prematurely and 
     for which the average life expectancy is 13 years.
       The NIH has developed a five-year Parkinson's Disease 
     Research Agenda. To carry out the plan, the professional 
     judgement budget estimates call for increases over existing 
     Parkinson's research of $71,400,000 in year one (fiscal year 
     2001). The conferees strongly urge the Director to work 
     toward implementation of the research agenda and oversee 
     coordination of all relevant Institutes, including NINDS, 
     NIEHS, NIA, and others conducting Parkinson's research. The 
     Director is requested to report by March 1, 2001 on the 
     progress towards implementation of the research agenda and to 
     submit updated professional judgement funding projections for 
     subsequent years.
       The conferees concur with the language in the Senate report 
     regarding a study of the structure of NIH and expect to 
     receive a report and recommendations one year from the date 
     of confirmation of the new NIH Director.
       The conferees have been made aware of the public interest 
     in securing an appropriate return on the NIH investment in 
     basic research. The conferees are also aware of the mounting 
     concern over the cost to patients of therapeutic drugs. By 
     July 2001, based on a list of such therapeutic drugs which 
     are FDA approved, have reached $500,000,000 per year in sales 
     in the United States, and have received NIH funding, NIH will 
     prepare a plan to ensure that taxpayers' interests are 
     protected.
       The Office of Dietary Supplements is urged to research the 
     relationship between chromium deficiencies and diabetes in 
     Native Americans through all available mechanisms, as 
     appropriate, including clinical trials.
       The number of Americans taking dietary supplements 
     containing ephedra has risen dramatically. The conferees 
     encourage the Office of Dietary Supplements to enhance 
     clinical research on the safety and efficacy of these 
     products.
       The conferees urge NIH to minimize the use of non-human 
     animals in nicotine or tobacco experiments, and is encouraged 
     to explore any non-human research methods that are currently 
     available or under development that may be used as an 
     alternative to using non-human animals.
       The conferees are concerned about the transfer of HIV 
     prevention interventions that have proven to be effective to 
     service programs supported by other federal agencies, such as 
     CDC and HRSA. The Office of AIDS Research (OAR) should work 
     with the ICs to increase NIH efforts in this area through the 
     establishment of programs for regional technical assistance, 
     technology transfer, and training for the purpose of 
     providing links between evidence-based HIV prevention science 
     and public health departments, community planning groups, 
     healthcare providers, and prevention service providers.
       The conferees strongly urge NIH to implement an intensified 
     research effort regarding autism consistent with the 
     Children's Health Act of 2000. The Director of NIH should 
     also provide a report to the House and Senate Appropriations 
     Committees by March 1, 2001 regarding a plan for establishing 
     the Centers of Excellence on Autism Program authorized in the 
     Children's Health Act of 2000.
       The conferees commend the Office of AIDS Research for 
     convening an external review of the Centers for AIDS Research 
     Program and for the five year plan to increase the number of 
     Centers. However, the conferees urge the NIH to consider ways 
     in which the five year plan can be modified to balance the 
     need to expand the number of Centers with the need to 
     adequately support the leading AIDS research institutions 
     with the core center mechanisms that they need to efficiently 
     pursue AIDS research.
       The conferees encourage NIH to pursue recommendations from 
     the Diabetes Research Working Group to address the specific 
     needs of minority populations.
       The conferees are aware of the National Institute of Child 
     Health and Human Development's (NICHD) efforts to establish a 
     Perinatology Research Branch (PRB) to conduct research 
     programs on pregnancy and perinatology in the greater 
     metropolitan region of the District of Columbia. After 
     several attempts, the conferees understand that NICHD now 
     intends to hold a nationwide competition for a site for the 
     PRB. The Director is requested to submit a written report by 
     March 1, 2001, explaining why the efforts to establish the 
     PRB in the greater metropolitan region of the District of 
     Columbia have to-date been unsuccessful. The District of 
     Columbia has the highest rate of infant mortality in the 
     United States, the highest rate of infants born with low 
     birthweights, and the lowest percentage of mothers receiving 
     early prenatal care. Therefore, the report should include 
     possible alternative methods for conducting research programs 
     on pregnancy and perinatology in the greater metropolitan 
     region of the District of Columbia.
       The conferees believe it appropriate for NIH to recognize 
     Paul Rogers' numerous contributions to the public health and 
     medical research. Therefore, the conferees urge the Director 
     to designate the plaza in front of the James Shannon building 
     on the NIH campus as the Paul G. Rogers Plaza and to 
     commemorate it in his honor.
       The conferees appreciate the efforts of the Director to 
     ensure that NLM's future physical needs are met and encourage 
     that sufficient funds be made available from within NLM 
     funding to meet these needs.


                        Buildings and Facilities

       The conference agreement includes $153,790,000 for 
     buildings and facilities instead of $178,700,000 as proposed 
     by the House and $148,900,000 as proposed by the Senate.

       Substance Abuse and Mental Health Services Administration


               Substance Abuse and Mental Health Services

       The conference agreement includes $2,958,001,000 for 
     substance abuse and mental health services instead of 
     $2,727,626,000 as proposed by the House and $2,730,757,000 as 
     proposed by the Senate. Within the funds provided, the 
     conferees intend that $15,000,000 is to carry out the fetal 
     alcohol syndrome prevention and services program.
     Center for Mental Health Services
       The conference agreement includes $420,000,000 for the 
     mental health block grant instead of $416,000,000 as proposed 
     by the House and $366,000,000 as proposed by the Senate.
       The conference agreement includes $91,763,000 for 
     children's mental health instead of $86,763,000 as proposed 
     by both the House and Senate.
       The conference agreement includes $36,883,000 for grants to 
     states for the homeless (PATH) as proposed by the Senate 
     instead of $30,883,000 as proposed by the House.
       The conference agreement includes $30,000,000 for 
     protection and advocacy instead of $24,903,000 as proposed by 
     the House and $25,903,000 as proposed by the Senate. The 
     conferees continue to be concerned about deaths and serious 
     injuries due to the inappropriate use of seclusion and 
     restraints in facilities that treat individuals with mental 
     illnesses and have provided additional resources so that 
     these deaths can be investigated and future incidences can be 
     prevented.
       The conference agreement includes $203,674,000 for programs 
     of regional and national significance instead of $132,749,000 
     as proposed by the House and $146,875,000 as proposed by the 
     Senate.
       Within the total provided, $90,000,000 provided under 
     section 581 of the Public Health Service Act is for the 
     support and delivery of school-based and school-related 
     mental health services for school-age youth. It is intended 
     that the Department will continue to collaborate its efforts 
     with the Department of Education to develop a coordinated 
     approach. The conferees recognize it may be necessary for the 
     agency to allocate additional resources to the Safe Schools/
     Healthy Students Action Center to expand its technical 
     assistance to serve new grantees.
       Within the total provided, $3,000,000 is for suicide 
     prevention hotlines. The conferees direct SAMHSA to undertake 
     an evaluation of the effectiveness of these hotlines in 
     preventing suicides.
       The conferees believe that SAMHSA is uniquely qualified to 
     support a clearinghouse for youth suicide prevention, 
     including a database and related files of reference materials 
     and organizations. SAMHSA, through this clearinghouse, could 
     provide training and technical assistance to States to 
     implement the Surgeon General's recommendations for suicide 
     prevention.
       Within the total provided, $10,000,000 is provided under 
     section 582 of the Public

[[Page 26710]]

     Health Service Act to support up to 22 grants to local mental 
     health providers for the purposes of developing knowledge of 
     best practices and providing mental health services to 
     children and youth suffering from post traumatic stress 
     disorder as a result of having witnessed or experienced a 
     traumatic event. Grantees can include psychiatric hospitals, 
     general hospitals, outpatient mental health clinics, and 
     community and university-based mental health programs. With 
     respect to grants for knowledge development, preference 
     should be given to applicants with experience in the field of 
     trauma related mental disorders in children and youth.
       Within the total provided, $2,000,000 is to support 
     professional training in restraints and seclusion in 
     residential and day treatment centers for children and youth. 
     This training initiative will support grants to non-profit 
     and public entities for the purpose of developing and 
     demonstrating the effectiveness of a best-practices training 
     model to avoid the inappropriate use of restraints and 
     seclusion.
       The conferees are supportive of efforts to develop a model 
     training demonstration project to help eliminate deaths and 
     injuries that occur in mental health facilities due to the 
     inappropriate use of seclusion and restraints. Such a model 
     training program should emphasize conflict resolution and de-
     escalation.
       Within the total provided, an increase of $2,000,000 is to 
     provide additional support for minority fellowships in mental 
     health.
       Within the total provided, $7,000,000 is for the treatment 
     of mental health disorders related to HIV disease including: 
     dementia, clinical depression and the chronic, progressive 
     neurological disabilities that often accompany HIV disease. 
     These direct services grants provided to minority community-
     based providers that operate in traditional and non-
     traditional settings are designed to strengthen their 
     capacity to provide HIV related mental health services.
       Funds are included to provide grants to local communities 
     to improve mental health screening and referrals in non-
     mental health settings and continue support for jail 
     diversion programs for non-violent mentally ill offenders.
       It is intended that funds used to make grants to States for 
     the purpose of developing data infrastructure will be used 
     for mental health only.
       The conferees include the following amounts for the 
     following projects and activities in fiscal year 2001:
       --$83,000 for the Hope Center in Lexington, Kentucky;
       --$85,000 for Steinway Child and Family Services, Inc. in 
     Queens, New York for HIV/AIDS prevention;
       --$100,000 for the American Trauma Society to support its 
     Second Trauma Program which helps train trauma system health 
     care professionals to assist individuals facing the shock of 
     an unexpected death or critical injury to their family 
     members.
       --$200,000 for the Concord-Assabet Family Services Center 
     for a model transitional living program for troubled youth;
       --$325,000 for Preschool Anger Management, Family 
     Communications;
       --$500,000 for the Life Quest Community Mental Health 
     Center in Wasilla, Alaska;
       --$680,000 for Pacific Clinics in Arcadia, California, to 
     support a school-based mental health demonstration program 
     for Latina adolescents in partnership with community groups, 
     mental health agencies, local governments and school systems 
     in Southeast Los Angeles county;
       --$803,000 for the Bert Nash Community Mental Health Center 
     in Lawrence, Kansas, to provide mental health services in 
     schools and other settings to prevent juvenile crime and 
     substance abuse among high-risk youth;
       --$800,000 for the Alaska Federation of Natives for 
     innovative homeless mental health services in Alaska;
       --$850,000 for the Iowa State University Extension to 
     develop a program which would provide outreach, training, and 
     counseling services in rural areas;
       --$921,000 for the United Power for Action and Justice 
     demonstration project in Chicagoland area to end the cycle of 
     homelessness;
       --$921,000 for a mentally ill offender crime reduction 
     demonstration in Ventura County, California to create the 
     building blocks for a continuum of care for mentally ill 
     offenders who enter the jail system in the county;
       --$850,000 for the University of Connecticut for an urban 
     health initiative to improve mental health services to 
     underserved high-risk individuals living in urban public 
     housing;
       --$1,007,000 for the University of Florida National Rural 
     Behavioral Health Center to train extension agents in crisis 
     intervention and stress management to better equip them to 
     deal with emotional and stress related problems;
       --$1,500,000 for the Ch'eghutsen program in interior 
     Alaska; and
       --$1,300,000 for the Alaska Federation of Natives to use 
     integrated community care to treat native Alaska children 
     with mental health disorders.
     Center for Substance Abuse Treatment
       The conference agreement includes $1,665,000,000 for the 
     substance abuse block grant instead of $1,631,000,000 as 
     proposed by both the House and the Senate.
       The conference agreement includes $256,315,000 for programs 
     of regional and national significance instead of $213,716,000 
     as proposed by the House and $249,566,000 as proposed by the 
     Senate. Within the total provided, $10,000,000 is to initiate 
     grants to local non-profit and public entities for the 
     purpose of developing and expanding substance abuse services 
     for homeless persons.
       The agreement includes $53,000,000 designed to provide 
     targeted service expansion and capacity building to minority, 
     community-based substance abuse treatment programs with a 
     history of providing services to communities of color 
     severely impacted by substance abuse and HIV/AIDS. The 
     correlation between addiction and HIV/AIDS is well 
     documented. Injection drug use alone still accounts for more 
     than 20 percent of the primary HIV infection risk for African 
     American and Latino adults. These funds are to be allocated 
     based on program priorities identified in the previous fiscal 
     year and new priorities. Funds are also included to enhance 
     state and county efforts to plan and develop integrated 
     substance abuse and HIV/AIDS treatment and prevention 
     services to communities of color.
       The conferees are supportive of the efforts of the Sunshine 
     Shelter for abused and neglected children in Natchez, 
     Mississippi in treating chemically dependent women and their 
     children and note that additional resources would allow the 
     Shelter to expand its outreach efforts.
       The conferees include the following amounts for the 
     following projects and activities in fiscal year 2001:
       --$100,000 for the Vermont Department of Health Office of 
     Alcohol and Drug Abuse Prevention to examine adolescent 
     residential treatment programs;
       --$106,000 for Center Point, Inc., in Marin County, 
     California, to continue support for substance abuse and 
     related services for minority, homeless and other at risk 
     populations;
       --$200,000 for Green Door in Washington, D.C. to treat 
     minority consumers with substance abuse problems and mental 
     health issues;
       --$250,000 for the Allegheny County Drug and Alcohol 
     Rehabilitation Program;
       --$500,000 for the Cook Inlet Council on Alcohol and Drug 
     Abuse Treatment;
       --$500,000 for the House of Mercy in Des Moines, Iowa to 
     support treatment programs for pregnant and post-partum 
     women;
       --$500,000 for the State of Wyoming to carry out an 
     innovative substance abuse prevention and treatment program;
       --$425,000 for Humboldt County, California, to support 
     residential substance abuse and related services for women 
     who have children;
       --$608,000 for the Hope Center in Lexington, Kentucky;
       --$645,000 for the Grove Counseling Center in Winter 
     Springs, Florida for a demonstration project of effective 
     youth substance abuse treatment methods;
       --$750,000 for the Fairbanks LifeGivers Pregnant and 
     Parenting Teens program;
       --$900,000 for the Alaska Federation of Natives to identify 
     best substance abuse treatment practices;
       --$1,105,000 for the City of San Francisco's model 
     ``Treatment on Demand'' program for the homeless; and
       --$2,210,000 for the Baltimore City Health Department to 
     use innovative methods to enhance drug treatment services.
     Center for Substance Abuse Prevention
       The conference agreement includes $175,145,000 for programs 
     of regional and national significance instead of $132,742,000 
     as proposed by the House and $127,824,000 as proposed by the 
     Senate. Within the total provided, it is intended that high-
     risk youth grants will at least be maintained at last year's 
     level.
       The agreement includes $32,100,000 for grants to minority 
     community based organizations to implement programs that 
     strengthen substance abuse prevention capacity in communities 
     of color disproportionately impacted by the HIV/AIDS 
     epidemic, based on the most recent estimated living AIDS 
     cases, HIV infections and AIDS mortality among ethnic and 
     racial minorities as reported by the CDC.
       The conferees include the following amounts for the 
     following projects and activities in fiscal year 2001:
       --$85,000 for the City of Alexandria, Virginia, substance 
     abuse prevention demonstration program for high-risk Latino 
     youth;
       --$213,000 for the Rock Island County Council on Addiction 
     in East Moline, Illinois, for a youth substance abuse 
     prevention program; and
       --$500,000 for the Drug-free Families Initiative at the 
     University of Missouri, St. Louis.
       The conferees have included sufficient funds to continue 
     the pregnant and post-partum substance abuse prevention 
     evaluations for both the Community Prevention Parnership of 
     Berks County, Inc. and the Family Planning Council of 
     Pennsylvania
     Program Management
       The conference agreement includes $79,221,000 for program 
     management instead of $58,870,000 as proposed by the House 
     and $59,943,000 as proposed by the Senate. Within

[[Page 26711]]

     the total provided, $12,000,000 is for the National Household 
     Drug Survey.
       The conferees include $3,278,000 in fiscal year 2001 to 
     continue testing the effectiveness of Community Assessment 
     and Intervention Centers in providing integrated mental 
     health and substance abuse services to troubled and at-risk 
     children and youth, and their families in four Florida 
     communities. Building upon successful juvenile programs, this 
     effort responds directly to nationwide concerns about youth 
     violence, substance abuse, declining levels of service 
     availability and the inability of certain communities to 
     respond to the needs of their youth in a coordinated manner. 
     The total provided includes, $2,000,000 for mental health 
     special projects of regional and national significance; 
     $1,000,000 for substance abuse treatment special projects of 
     regional and national significance; $500,000 for substance 
     abuse prevention special projects of regional and national 
     significance; and $200,000 for program management.
       The agreement includes a general provision proposed by the 
     Senate regarding the withholding of substance abuse funds. 
     The House bill contained no similar provision. The Synar 
     amendment was included as part of the SAMHSA reorganization 
     bill in 1992. The amendment and its implementing regulation 
     required States to reduce sales of tobacco to minors within a 
     negotiated period of time and if a State fails to meet its 
     goals, reduced its substance abuse prevention and treatment 
     block grant funding by 40 percent. The conferees are 
     extremely concerned that several States, after at least four 
     years, are not in compliance with the law and continue to 
     seek an exemption to the penalty requirement. It is the 
     conferees intention that this will be the last year exemption 
     language will be carried in an appropriations bill. SAMHSA is 
     directed to notify States of this intention and work with the 
     affected States to help them come into compliance.

               Agency for Healthcare Research and Quality


                    Healthcare Research and Quality

       The conference agreement includes $104,963,000 in 
     appropriated funds instead of $123,669,000 as proposed by the 
     House. The Senate bill did not provide a direct appropriation 
     for the agency, instead it proposed to fund the agency 
     through the evaluation set-aside.
       The conference agreement designates $164,980,000 to be 
     available to the agency under the Public Health Service Act 
     one percent evaluation set-aside as proposed by the House 
     instead of $269,943,000 as proposed by the Senate.
       The conferees are troubled by the recent Institute of 
     Medicine study which found that as many as 98,000 deaths are 
     caused by medical errors each year. The conferees have 
     provided an additional $50,000,000 to the agency to determine 
     ways to reduce medical errors. The conferees are supportive 
     of a study to determine the impact of extended work hours for 
     registered nurses on patient safety.
       The agreement includes $10,000,000 for research that 
     investigates the relationship between the health care 
     workplace and its impact on medical errors and the quality of 
     care provided to patients. Efforts to restructure the health 
     care workplace, often in response to pressures to reduce 
     costs, suggest that work environment and processes have had 
     an impact on health and quality of workers' lives as well as 
     the patients for whom they care. As we have learned from the 
     experience of the aviation industry, reducing errors and 
     promoting safety are a result of improving workforce systems. 
     Likewise, it is important that workforce considerations be 
     integrated into efforts to reduce medical errors and promote 
     patient safety. The conferees believe that better 
     understanding of these workforce considerations will lead to 
     improved workplace practices and better outcomes for 
     patients.
       The conferees support the efforts of the Agency for 
     Healthcare Research and Quality, the National Institute for 
     Occupational Safety and Health, the Department of Labor, and 
     other agencies to work jointly and coordinate their work to 
     improve healthcare quality, patient safety, and worker safety 
     in health care facilities, through such activities as the 
     October 2000 jointly sponsored conference on ``Enhancing 
     Working Conditions and Patient Safety: Best Practices.'' The 
     conferees urge that such coordinated efforts be continued.
       The conferees strongly urge the agency to enhance its 
     investigator-initiated research funding through all available 
     mechanisms, as appropriate.

                  Health Care Financing Administration


                           Program Management

       The conference agreement includes $2,246,326,000 for 
     program management instead of $1,866,302,000 as proposed by 
     the House and $2,018,500,000 as proposed by the Senate. The 
     House bill assumed that the Administration's user fee 
     proposal would be enacted prior to conference. An additional 
     appropriation of $680,000,000 has been provided for the 
     Medicare Integrity Program through the Health Insurance 
     Portability and Accountability Act of 1996.
       The conferees repeat language included in last year's bill 
     related to administrative fees collected relative to Medicare 
     overpayment recovery activities.

                Research, Demonstration, and Evaluation

       The conference agreement includes $139,311,000 for 
     research, demonstration, and evaluation instead of 
     $55,000,000 as proposed by the House and $65,000,000 as 
     proposed by the Senate.
       The agreement includes $50,000,000 for Real Choice Systems 
     Change Grants to states to fund initiatives that establish 
     specific action steps and timetables to achieve enduring 
     system improvements and to provide long term services and 
     supports, including community-based attendant care, to 
     eligible individuals in the most integrated setting 
     appropriate. Grant applications should be developed jointly 
     by the State and the Consumer Task Force. The Task Force 
     should be composed of individuals with disabilities from 
     diverse backgrounds, representatives from organizations that 
     provide services to individuals with disabilities, consumers 
     of long-term services and supports, and those who advocate on 
     behalf of such individuals. Grant-funded activities should 
     focus on areas of need as determined by the State and the 
     Task Force such as needs assessment and data gathering, 
     strategies to modify policies that unnecessarily bias 
     provision of long term care services to institutional 
     settings or to health care professionals, and training and 
     technical assistance.
       The agreement includes bill language for the following 
     projects and activities for fiscal year 2001:
       --$300,000 for the United States-Mexico Border Counties 
     Coalition for a study to determine the unreimbursed costs 
     incurred to treat undocumented aliens for medical emergencies 
     in southwest border States, their border counties, and 
     hospitals within the jurisdiction of these States and 
     counties;
       --$255,000 for the LA Care Health Plan in Los Angeles, 
     California for a demonstration program to improve clinical 
     data coordination among Medicaid providers;
       --$350,000 for the Cook County, Illinois Bureau of Health 
     for the Asthma Champion Initiative demonstration to reduce 
     morbidity and mortality from asthma in high prevalence areas;
       --$500,000 to the University of Pittsburgh Medical Center 
     and University of Pennsylvania for a study of the efficacy of 
     surgical versus non-surgical management of abdominal 
     aneurysms;
       --$691,000 for a Medicare demonstration project at Ohio 
     State University to determine the benefits of compliance 
     packaging;
       --$650,000 for the Vascular Surgery Outcomes Initiative at 
     Dartmouth College;
       --$646,000 for Shelby County Regional Medical Center to 
     establish a Master Patient Index to determine patient 
     Medicaid/TennCare eligibility;
       --$855,000 for the Children's Hospice International 
     demonstration program to provide a continuum of care for 
     children with life-threatening conditions and their families;
       --$921,000 for Equip for Equality for a demonstration 
     project to document the impact of an independent 
     investigative unit that will examine deaths or other serious 
     allegations of abuse or neglect of people with disabilities 
     at facilities in Illinois;
       --$1,000,000 for the West Virginia University School of 
     Medicine's Eye Center to test interventions and improve the 
     quality of life for individuals with low vision;
       --$1,000,000 for Duke University Medical Center to 
     demonstrate the potential savings in the Medicare program of 
     a reimbursement system based on preventative care.
       --$1,000,000 for the Iowa Department of Public Health for 
     the establishment and operation of a mercantile prescription 
     drug purchasing cooperative or non-profit corporation 
     demonstration;
       --$1,843,000 for the Buck's County Health Improvement 
     Project in Pennsylvania;
       --$1,700,000 for the AIDS Healthcare Foundation in Los 
     Angeles for a demonstration of residential and outpatient 
     treatment facilities;
       --$2,800,000 for the Mind-Body Institute of Boston, 
     Massachusetts to conduct a demonstration of a lifestyle 
     modification program;
       --$1,800,000 for a joint project between the University of 
     Pittsburgh, Case Western Reserve in Cleveland, Ohio, and Mt. 
     Sinai Hospital in Miami, Florida, to use integrated nursing 
     services and technology to implement daily monitoring of 
     congestive heart failure patients in underserved populations 
     in accordance with established clinical guidelines; and
       --$20,000,000 to continue demonstration projects on 
     Medicaid coverage of community-based attendant care services 
     for people with disabilities.
       HCFA is urged to conduct a demonstration project addressing 
     the extraordinary adverse health status of native Hawaiians 
     at the Waimanalo health center exploring the use of 
     preventive and indigenous health care expertise.
       HCFA is urged to work with the United States Renal Data 
     System (USRDS) to test potential savings to the Federal 
     government and to the Medicare program by comparing actual 
     Medicare/Medicaid spending for end stage renal disease (ESRD) 
     patients currently on daily hemodialysis with actual 
     Medicare/Medicaid spending for ESRD patients on other 
     treatment modalities, such

[[Page 26712]]

     as peritoneal dialysis and in-center hemodialysis whose 
     demographic and other characteristics match those of the 
     daily hemodialysis patients in 9 to 12 existing programs in 
     the U.S. Such a study should compare spending related to 
     patient dialysis and training, medications, vascular access, 
     ambulance transportation, physician and outpatient medical 
     expenses not related to dialysis, hospitalizations, and other 
     medical services, such as skilled nursing facilities or home 
     health care and any other spending for which data is 
     available to the USRDS.
       HCFA is encouraged to utilize edit check software programs 
     to scrub electronic data files prior to processing by the 
     respective State agency and/or fiscal intermediary. The 
     identification of errors and omissions prior to submission 
     can provide dramatic improvement in the financial condition 
     of many providers who are experiencing large losses of 
     revenue.
       The conferees are concerned that HCFA has not instituted a 
     demonstration project to test the potential savings to the 
     Federal government and to the Medicare program by comparing 
     different products used for diabetic wound care treatment as 
     referenced in last year's conference agreement. Such a 
     demonstration should compare the aggregate costs of wound 
     care treatment using different applications regimens. The 
     conferees urge HCFA to proceed with this demonstration 
     project utilizing existing research funds.
       The conferees are aware that the Health Passport pilot 
     program is helping thousands of low-income families in 
     Nevada, Wyoming and North Dakota and urges HCFA to give full 
     and fair consideration to a proposal to continue the program.
       The conferees have become increasingly concerned that many 
     people with the most severe disabilities often experience a 
     lack of quality in community residential and treatment 
     services that can result in dangerous or unhealthful 
     conditions. The conferees believe that such services should 
     be monitored by an entity that has the expertise and legal 
     authority necessary to ensure the safety and general well-
     being of this population. Accordingly, the conferees urge 
     HCFA to support the protection and advocacy system to 
     demonstrate the efficacy of such community monitoring.
     Medicare Contractors
       The conference agreement includes $1,357,000,000 for 
     Medicare contractors instead of $1,165,287,000 as proposed by 
     the House and $1,244,000,000 as proposed by the Senate. Of 
     this amount, $1,305,000,000 is to support Medicare claims 
     processing contracts and $52,000,000 is for Medicare+Choice 
     information campaign.
     State Survey and Certification
       The conference agreement includes $244,147,000 for State 
     survey and certification instead of $171,147,000 as proposed 
     by the House and $219,674,000 as proposed by the Senate.
       The agreement includes an increase of $10,000,000 over the 
     President's request for nursing home oversight and quality of 
     care services.
     Federal Administration
       The conference agreement includes $505,868,000 for Federal 
     administration instead of $474,868,000 as proposed by the 
     House and $489,826,000 as proposed by the Senate.
       The conferees urge HCFA to give careful consideration to 
     concerns that substance abuse (alcohol and drug) treatment 
     facilities may not have been intended to be considered 
     institutions for mental diseases exclusion under Medicaid 
     since these facilities were not common when the exclusion 
     policy was implemented. The conferees are aware that 
     restricting Medicaid medical assistance to residential 
     substance abuse treatment facilities with 16 or fewer adult 
     treatment beds places an undue burden on the publicly funded 
     substance abuse treatment and prevention infrastructure.
       The conferees concur with Senate report language urging 
     HCFA to act more expeditiously to approve new medical 
     technologies, including PET scans, for Medicare patients so 
     that seniors will have access to the latest life-saving 
     technologies and treatments.
       The conferees understand that HCFA regulations require 
     States to provide documentation and justification before 
     making changes in Medicaid reimbursements. The conferees are 
     concerned that several State Medicaid agencies are currently 
     paying or proposing to pay chain-operated pharmacies lower 
     reimbursement rates than other pharmacies for providing the 
     same prescription products and related services without 
     providing the required justification. The conferees expect 
     HCFA to enforce current regulations when reviewing and 
     approving State submissions. The conferees also believe that 
     the implementation of a different system for Medicaid 
     reimbursements of pharmaceuticals should be addressed by the 
     authorizing committees of jurisdiction. The Administrator 
     should be prepared to testify on the status of this issue at 
     the fiscal year 2002 appropriations hearing.
       HCFA has proposed guidelines regarding the administrative 
     claims process for schools requesting reimbursement for 
     Medicaid related services. The conferees are concerned that 
     these guidelines are being developed without adequate input 
     from interested parties and will significantly alter the 
     administrative claiming program making it more difficult for 
     schools to provide services to poor and disabled children. 
     HCFA is expected to consult with school practitioners and 
     other groups to draft guidance for Medicaid allowable costs 
     under the administrative claiming section of the School Based 
     Services program. HCFA is also urged to process pending State 
     applications and to continue to review reimbursement 
     procedures until new guidelines are published. The 
     Administrator should be prepared to testify on this issue at 
     the fiscal year 2002 appropriations hearing.

                Administration for Children and Families


  payments to states for child support enforcement and family support 
                                programs

       The conference agreement includes $2,441,800,000 for 
     payments to states for child support enforcement and family 
     support programs instead of $2,473,800,000 as proposed by the 
     House and $2,473,880,000 as proposed by the Senate. The 
     conferees provide extended availability of funds as proposed 
     by the Senate. The House bill proposed no extended 
     availability.


                   low income home energy assistance

       The conference agreement includes an additional 
     $300,000,000 in fiscal year 2001 funding for the Low Income 
     Home Energy Assistance program. When combined with the 
     $1,100,000,000 already appropriated for fiscal year 2001 and 
     the $300,000,000 in emergency funding, a total of 
     $1,700,000,000 is available to support this program in fiscal 
     year 2001. The agreement includes up to $27,500,000 for the 
     leveraging incentive fund within these totals.
       The conferees are aware that average home heating fuel 
     prices have doubled in the past year, and in some areas are 
     up five-fold, while at the same time many states are expected 
     to experience extremely cold winter. The conferees are deeply 
     concerned that this will force steep reductions in the 
     relative percentage of home heating cost that LIHEAP provides 
     to low-income households. The conferees have provided a 
     $300,000,000 increase in the regular appropriation for fiscal 
     year 2001 to reduce the adverse impact of these fuel price 
     spikes.
       The conference agreement does not include advance funding 
     for fiscal year 2002 for LIHEAP as proposed by the Senate. 
     The House bill proposed $1,100,000,000 for fiscal year 2002. 
     The conferees are aware that advance funding for LIHEAP was 
     authorized by Congress in 1990 to respond to the States' need 
     to budget and plan their LIHEAP programs in advance of the 
     fall/winter heating season. States are required by statute to 
     hold public hearings in the spring and summer on their 
     proposed LIHEAP programs to determine eligibility levels, 
     establish the size of household benefits, and establish 
     parameters of crisis programs. Consequently, States must be 
     able to reliably predict the LIHEAP appropriation that 
     normally becomes available at the very beginning of the 
     heating season, but which is often delayed due to late 
     enactment of appropriations bills. As noted in the Senate 
     Report 101-421 accompanying the Human Services 
     Reauthorization Act of 1990, ``Forward funding will allow 
     states to identify clients, provide assistance, and put them 
     on responsible budget payment-plans in the summer or fall to 
     avoid the development of life-threatening situations.'' 
     Although advance funding is not included in this bill, the 
     conferees fully intend to provide at least $1,400,000,000 in 
     regular LIHEAP appropriations and $300,000,000 in emergency 
     funds in fiscal year 2002.


                     refugee and entrant assistance

       The conference agreement includes $433,109,000 for refugee 
     and entrant assistance as proposed by the House instead of 
     $425,586,000 as proposed by the Senate. Within this amount, 
     for the Torture Victims Relief Act funds, the conferees 
     provide $10,000,000 as proposed by the House instead of 
     $7,265,000 as proposed by the Senate. Within this amount, the 
     conferees provide funding to implement the Trafficking 
     Victims Protection Act of 2000, which will support efforts to 
     certify eligibility for benefits and services for trafficking 
     victims.
       The agreement includes $20,000,000 from carryover funds 
     that are to be used under social services to increase 
     educational support to schools with a significant proportion 
     of refugee children and for the development of alternative 
     cash assistance programs that involve case management 
     approaches to improve resettlement outcomes. Such support 
     should include intensive English language training and 
     cultural assimilation programs.
       The agreement also includes $26,000,000 for increased 
     support to communities with large concentrations of refugees 
     whose cultural differences make assimilation especially 
     difficult justifying a more intense level and longer duration 
     of Federal assistance.


   payments to states for the child care and development block grant

       The conference agreement includes an additional 
     $817,328,000 for child care services, together with the 
     $1,182,672,000 provided as an advance appropriation in last 
     year's bill, raising the funding level for this program to 
     $2,000,000,000 for fiscal year 2001. The agreement does not 
     provide for an advance appropriation for fiscal year 2002 as 
     proposed by

[[Page 26713]]

     the Senate; however, the conferees intend that funding for 
     the child care block grant be at least that level in fiscal 
     year 2002. The House bill proposed advance funding of 
     $2,000,000,000 for fiscal year 2002.
       The agreement also includes language specifying that funds 
     under the Child Care and Development Block Grant are to be 
     used to supplement, not to supplant, state and local child 
     care funds.
       The agreement also sets aside an additional $272,672,000 
     from fiscal year 2001 to be reserved by the States for 
     activities authorized under section 658G, of which 
     $100,000,000 shall be for activities that improve the quality 
     of infant and toddler child care. The House bill set aside 
     $172,672,000 for additional quality purposes in fiscal year 
     2002. The Senate bill set aside $222,672,000 for additional 
     quality activities, of which $100,000,000 was to be used for 
     infant and toddler care, in fiscal year 2001. The agreement 
     also sets aside $10,000,000 to be used for child care 
     research, demonstration and evaluation activities. Neither 
     the House nor the Senate contained this provision. Within the 
     funds provided for child care resources and referrals, the 
     agreement also includes $1,000,000 for the Child-Care Aware 
     toll-free hotline.

                      social services block grant

       The conference agreement includes $1,725,000,000 for the 
     social services block grant instead of $1,700,000,000 as 
     proposed by the House and $600,000,000 as proposed by the 
     Senate. The conference agreement includes a provision which 
     maintains the percentage of funds that a state may transfer 
     between the Social Services Block Grant and the Temporary 
     Assistance to Needy Families Programs at 10 percent.


                children and families services programs

                        (including rescissions)

       The conference agreement includes $7,956,345,000 for 
     children and families services programs instead of 
     $7,231,253,000 as proposed by the House and $7,895,723,000 as 
     proposed by the Senate. In addition, the agreement rescinds 
     $21,000,000 from permanent appropriations as proposed by both 
     the House and the Senate.
     Head Start
       The conference agreement includes $6,200,000,000 for Head 
     Start instead of $5,667,000,000 as proposed by the House and 
     $6,267,000,000 as proposed by the Senate. The agreement 
     includes an advance appropriation of $1,400,000,000 for Head 
     Start for fiscal year 2002 as proposed by both the House and 
     the Senate.
       The conferees are concerned that while fifty percent of 
     children eligible for the regular Head Start program receive 
     services, only about ten percent of children of farmworkers 
     are served by Migrant Head Start. Therefore, the conferees 
     encourage the Secretary to increase funding for Migrant and 
     Seasonal Head Start in proportion to the overall funding 
     increase for Head Start. The conferees also urge the agency 
     to ensure that all children participating in the Early Head 
     Start program receive a blood lead screening test.
       The conferees urge the agency to provide funds to the 
     Alaska Federation of Natives to train Head Start teachers in 
     remote Alaska villages. The conferees also encourage the 
     agency to provide funds to the University of Alaska to 
     provide distance training for Head Start teachers through 
     Associate Degree programs.
     Runaway Youth
       The conference agreement includes $69,155,000 for runaway 
     youth as proposed by the Senate instead of $64,155,000 as 
     proposed by the House. The agreement allocates funds for the 
     runaway and homeless youth programs following the structure 
     of P.L. 106-71, the Missing, Exploited, and Runaway Children 
     Protection Act, which consolidates the programs into a single 
     funding stream.
     Adoption Incentive
       The conference agreement includes $43,000,000 for the 
     adoption incentive program as proposed by the House instead 
     of $55,928,000 as proposed by the Senate. The agreement also 
     includes language that will allow funds under this program to 
     be carried over for use in paying prior year bonuses.

            Social Services and Income Maintenance Research

       The conference agreement includes $37,666,000 for social 
     services and income maintenance research instead of 
     $27,491,000 as proposed by both the House and the Senate. Of 
     this total, the conferees intend that $5,000,000 be 
     transferred to the Census Bureau for continued data 
     collection on the Survey of Income and Program Participation. 
     The conferees also provide sufficient funding for the 
     following:
         --$500,000 for the National Fatherhood Initiative
         --$500,000 for the Institute for Responsible Fatherhood
         --$1,000,000 for the State Information Technology 
     Consortium
         --$175,000 for the Nation Center for Appropriate 
     Technology's information technology clearinghouse
       The conferees also include $500,000 within Social Services 
     and Income Maintenance Research to support adding LIHEAP 
     related questions to the Residential Energy Consumption 
     Survey (RECS) conducted by the Department of Energy and to 
     the Census Bureau's March current population survey to assure 
     that the low-income household component is included in the 
     surveys, and the conferees urge the expansion of the RECS 
     sample size to target LIHEAP recipients. The conferees have 
     also included $2,500,000 for grants to qualified private, 
     non-profit intermediaries to demonstrate the provision of 
     technical assistance to child care providers to improve the 
     quality and supply of child care facilities in low income 
     communities and to document the changes.
     Community Services Block Grant
       The conference agreement includes $600,000,000 for the 
     community services block grant instead of $550,000,000 as 
     proposed by the Senate and $527,700,000 as proposed by the 
     House. The conferees expect that all local entities that are 
     in good standing in the community services block grant 
     program shall receive an increase in funding for the next 
     program year that is proportionate to the overall increase in 
     the appropriation provided for the block grant.
       The agreement includes language proposed by the Senate that 
     requires the Department to establish certain procedures 
     regarding the disposition of intangible property in the 
     community economic development program under the Community 
     Services Block Grant Act. The House bill contained no similar 
     provision. The conferees also set aside $5,500,000 within the 
     community economic development program for the job creation 
     demonstration authorized under the Family Support Act.
       Within the funds provided for child abuse prevention 
     programs, the agreement includes the following items:
       $737,000 University of North Carolina, Greensboro, NC for 
     Violence Abuse Prevention and Education for Deaf and Hard of 
     Hearing Children and their Caretakers;
       $1,382,000 Public Children Services Association of Ohio, 
     Columbus, OH for child abuse prevention activities;
       $46,000 New Directions Housing Corp., Louisville, KY for 
     the Homeless Youth Development Program;
       $230,000 Neighbor to Family, Des Plaines, IL for foster 
     care training program;
       $524,000 Robert A. Pascal Youth and Family Services Inc., 
     Severna Park, Maryland for the Healthy Families program;
       $1,773,000 Foster Parents Association, Spokane, WA for the 
     Foster Family Support System;
       $230,000 Dave Thomas Center for Adoption Law at Capital 
     University Law School, Columbus OH for development of an 
     adoption law online database;
       $75,000 Operation Breakthrough in Kansas City;
       $400,000 Parent-to-Parent of Winooski, Vermont;
       $200,000 Family Friends for respite services for families 
     with disabled children;
       $900,000 Alaska Native Health Board Child abuse prevention 
     program;
       $2,500,000 early childhood services- Alaska Seed program;
       $2,500,000 to continue the Healthy Families Home Visiting 
     Program in Alaska;
       $550,000 Early Childhood Development Center at Texas Tech 
     University;
       $900,000 Celeste Foundation for a pilot program to bring 
     in-home professional services via video and audio to 
     disruptive at-risk children in foster home placements;
       $600,000 Farm Resource Center in West Virginia to provide a 
     mechanism of early intervention for rural families in crisis;
       $100,000 Phoenix House Domestic Violence Center in Council 
     Bluffs, Iowa;
       $1,562,000 Indian Oaks Academy in Manteno, IL for a 
     demonstration project serving children and adolescents who 
     are victims of child abuse;
       $500,000 Strengthen Our Sisters in West Milford, New Jersey 
     to expand services.
       Within the funds provided for developmental disabilities, 
     special projects $200,000 is included for the Allegheny 
     County Respite Care Coalition to provide respite services for 
     parents with disabled children.
       Within the funds provided for Native American programs, the 
     agreement includes the following:
       --$700,000 for the Cook Inlet Tribal Council;
       --$300,000 for Kawerak, Inc.
       --$500,000 for the Alaska Federation of Natives to 
     coordinate social service resources in native villages:
       --$100,000 for the South Dakota Native American Community 
     Board to establish a Dakota language preservation program.
       The conferees support the idea that a national adoption 
     website could include all youngsters available for adoption 
     and will increase the likelihood that children will find 
     loving, stable homes. The conferees recognize that the 
     National Adoption Center has been at the forefront of 
     developing technology-based resources to facilitate adoptions 
     and is uniquely situated to create a single, national 
     adoption website. The conferees have included sufficient 
     funds for the National Adoption Center to continue to develop 
     and sustain a national adoption photo listing service on the 
     Internet.


       payments to states for foster care and adoption assistance

       The conference agreement includes $4,863,100,000 for 
     payments to states for foster care and adoption assistance as 
     proposed by

[[Page 26714]]

     the House instead of $4,868,100,000 as proposed by the 
     Senate.

                        Administration on Aging


                        aging services programs

       The conference agreement includes $1,103,135,000 for aging 
     services programs instead of $925,805,000 as proposed by the 
     House and $954,619,000 as proposed by the Senate.
       The conferees include $125,000,000 to provide critically 
     needed services for family caregivers under title III E and 
     title VI C of the Older Americans Act as amended. The 
     conferees intend that $5,000,000 of these funds be dedicated 
     for Native American caregivers. According to the 
     Administration on Aging, over seven million Americans are 
     providing care for disabled seniors in households across the 
     nation. Funds will be provided to states to use their aging 
     networks to provide quality respite care and other support 
     services such as information on available resources; 
     assistance with locating services; and caregiver training, 
     counseling and support. Such services improve the caregiver's 
     ability to provide care, help preserve the family unit, 
     prevent abuse and neglect, and minimize out-of-home 
     placements. Caregiver support services also delay nursing 
     home stays among care recipients.
       The conferees intend that $5,000,000 be made available from 
     preventive health services for activities regarding 
     medication management, screening, and education to prevent 
     incorrect medication and adverse drug reactions.
       The agreement includes the following amounts under aging 
     research and training:
       $961,000 Texas Tech University Health Sciences Center, 
     Lubbock, TX for the Institute for Healthy Aging;
       $691,000 Florida International University, Miami, FL, 
     National Policy and Research Center on Nutrition and Aging 
     for ``Nutrition 2030'' program;
       $2,000 Bay Ridge Center for Older Adults, Brooklyn, NY for 
     a demonstration program;
       $3,000 Staten Island Community Services Friendship Clubs, 
     Inc., Staten Island, NY for a demonstration program in senior 
     centers;
       $921,000 Mecklenburg County Department of Social Services, 
     Services for Adults Division in Charlotte, NC for Nutrition 
     2000 program;
       $461,000 Metropolitan Family Services, Chicago, IL for a 
     community based caregiver training program;
       $369,000 Ocean County New Jersey, Office of Senior Services 
     for a demonstration program;
       $369,000 Burlington County New Jersey, Office on Aging for 
     a demonstration program;
       $184,000 Camden County New Jersey, Division of Senior 
     Services for a demonstration program;
       $427,000 Florida Atlantic University, Boca Raton, FL for 
     Anne and Louis Green Alzheimer's Care and Research Center;
       $886,000 St. Petersburg Junior College in FL for Services 
     for Caregivers of Seniors program;
       $250,000 Access Community Health Network's Senior Outreach 
     Program;
       $1,400,000 Deaconess-Billings Northwest Area Center for 
     Studies on Aging;
       $100,000 An elderly meals demonstration program at 
     Progresso Latino in Central Falls, Rhode Island;
       $100,000 The Senior Fitness and Wellness Program in East 
     Providence;
       $100,000 Southwest General Health Center Gatekeeper 
     Program;
       $100,000 An additional $100,000 for the National Asian 
     Pacific Center on Aging;
       $344,000 Northwest Parkinson's Foundation;
       $400,000 Champlain Valley Area Agency on Aging mental 
     health project;
       $500,000 Albert Einstein Life Center in Germantown;
       $3,685,000 Social research into Alzheimer's disease care 
     options, best practices and other Alzheimer's research 
     priorities as specified in the House report;
       $100,000 Champlain Senior Center for adult day programming 
     and a technology initiative;
       $200,000 Brandeis University Center on Women and Aging to 
     conduct research on caregiving, health and financial security 
     among seniors;
       $64,000 LIFESPAN of Greater Rochester, Inc., New York, to 
     enhance a life course planning initiative to help older 
     adults make informed choices to prepare for retirement; 
     $85,000 San Luis Obispo Medical Society in California for 
     volunteers in health to support a demonstration program to 
     provide prescription drugs for low income, uninsured seniors;
       $120,000 Marathon County, Wisconsin to continue an 
     initiative to provide respite care services;
       $170,000 Walk the Walk, Inc, in Long Island City, New York 
     for Mary's House, an elder abuse center in Glendale, New 
     York;
       $425,000 St. Louis County, Missouri for a seniors job 
     training demonstration program;
       $468,000 National Association of Home Builders, National 
     Center for Seniors' Housing Research, for a project to 
     improve safety and access for senior housing;
       $510,000 The University of Akron College of Nursing, Akron, 
     Ohio, to develop best practices in gerontological training, 
     research and instruction;
       $723,000 Ivy Tech State College in Sellersburg, Indiana, 
     for a seniors technology learning program;
       $935,000 Landmark Medical Center in Woonsocket, Rhode 
     Island to support the Positive Aging Project to develop and 
     implement model family-centered approaches to address the 
     needs of the elderly;
       $1,000,000 West Virginia University Center on Aging to 
     conduct follow-up work to the Year 2000 Conference on Rural 
     Aging;
       $425,000 City of Compton, California for an elderly 
     assistance demonstration program to support and evaluate a 
     community approach to providing services to low income 
     senior;
       $900,000 Donald Reynolds Aging Center at the University of 
     Arkansas Medical School.
       Within the funds provided for state and local innovations/
     projects of national significance, the conferees intend that 
     funds be used for ongoing projects scheduled for refunding in 
     fiscal year 2001.

                        Office of the Secretary


                    general departmental management

       The conference agreement includes $291,075,000 for general 
     departmental management instead of $262,631,000 as proposed 
     by the House and $260,117,000 as proposed by the Senate.
       Within the total provided, $50,000,000 is for minority HIV/
     AIDS activities that strengthen the medical treatment and HIV 
     prevention capacity within communities of color 
     disproportionately impacted by the HIV/AIDS epidemic, based 
     on rates of new HIV infection and mortality from AIDS. These 
     funds are available to entities that target a specific 
     minority group or multi-ethnic minority populations that are 
     heavily impacted by HIV/AIDS, and are to complement existing 
     and planned HIV/AIDS activities in communities of color. The 
     agreement also includes bill language that requires the 
     Secretary to submit an operating plan prior to the obligation 
     of these funds.
       Within the total provided, $2,000,000 is for the United 
     States-Mexico Border Health Commission. The conferees request 
     the Secretary to provide the House and Senate Committees on 
     Appropriations with a complete history of the activities and 
     expenses of the Commission. Also within the total provided, 
     $400,000 is to continue the Surgeon General's violence 
     initiative and $400,000 is for a study on the feasibility of 
     tribe compacting for the operation of Departmental programs.
       The agreement provides $24,327,000 for the adolescent 
     family life program as proposed by the House instead of 
     $19,327,000 as proposed by the Senate. The agreement includes 
     bill language earmarking $10,377,000 under the adolescent 
     family life program for activities specified under section 
     2003(b)(2) of the Public Health Service Act, of which 
     $10,157,000 shall be for prevention grants under section 
     510(b)(2) of Title V of the Social Security Act, without 
     application of the limitation of section 2010(c) of Title XX 
     of the Public Health Service Act. The conferees intend that 
     this set-aside is only for continuation costs of ongoing 
     projects.
       The agreement provides $49,019,000 for minority health 
     instead of $38,638,000 as proposed by the House and 
     $37,638,000 as proposed by the Senate. Within this total, 
     $9,700,000 is to address the capacity and infrastructure 
     deficiencies within minority community based organizations in 
     rural and historically underserved urban communities, of 
     which $6,600,000 is for the Technical Assistance/Capacity 
     Development Grant Program to fund existing grants in rural 
     and historically underserved urban communities hardest hit by 
     HIV/AIDS; $500,000 is for continuation funding to the Bi-
     Cultural and Bilingual Demonstration Program; and $2,600,000 
     is to support existing grants through the Minority Health 
     Coalition program, designed to promote early intervention HIV 
     care in minority communities and to improve the health 
     outcomes of people of color living with HIV disease. Also 
     included is an increase of $1,000,000 for the Office of 
     Minority Health's Center for Linguistics and Cultural 
     Competence in Health Care.
       The agreement provides $17,270,000 for the office of 
     women's health instead of $16,495,000 as proposed by the 
     House and $16,895,000 as proposed by the Senate. The 
     conferees urge the office to provide funds to the National 
     Osteoporosis Foundation to support its complementary 
     adolescent bone health initiative.
       The agreement provides $11,668,000 for the office of 
     emergency preparedness instead of $9,668,000 as proposed by 
     both the House and Senate.
       The conferees include the following amounts for the 
     following projects and activities in fiscal year 2001:
       --$50,000 for public service announcements regarding 
     abstinence education for the County of Bucks' Department of 
     Health in Doylestown, Pennsylvania;
       --$298,000 in the Office of Minority Health for the 
     University of Maryland, Baltimore, in partnership with the 
     Community Lead Education and Reduction Corps to prevent lead 
     poisoning among low income and minority children;
       --$375,000 in the Office of Women's Health for Spelman 
     College's African-American Women's Health and Wellness 
     Project;
       --$383,000 in the Office of Minority Health for the Trinity 
     Health Systems, Detroit, Michigan, to provide health care and 
     preventive health services for underserved minority 
     populations and low income individuals;
       --$500,000 to fund, through a contract with the National 
     Academy of Sciences, an evaluation on children's health. This 
     evaluation

[[Page 26715]]

     should assess the adequacy of currently available methods for 
     assessing risks to children, identify scientific 
     uncertainties associated with these methods, and develop a 
     prioritized research agenda to reduce such uncertainties and 
     improve risk assessment for children's health and safety;
       --$500,000 for the Thomas Jefferson University Hospital 
     (TJUH) in Philadelphia, Pennsylvania, to continue development 
     of its Center for Integrative Medicine, a program combining 
     conventional medical science with promising alternative 
     therapies;
       --$461,000 for the Glaucoma Caucus Foundation to provide 
     glaucoma screening and outreach activities;
       --$650,000 in the Office of Minority Health for the 
     University of Pennsylvania School of Dentistry to develop a 
     Minority Oral Health Outreach program;
       --$638,000 for ARCH National Resource Center on Respite and 
     Crisis Services in Chapel Hill, North Carolina, to expand 
     training, technical assistance, evaluation and networking 
     expertise in respite care;
       --$750,000 for the Community Transportation Association of 
     America to provide technical assistance;
       --$680,000 in the Office of Minority Health for the Donald 
     R. Watkins Memorial Foundation in Houston, Texas, to enhance 
     care for African Americans and low income individuals with 
     HIV/AIDS by coordinating services and expanding outreach 
     efforts;
       --$765,000 in the Office of Minority Health for the Alameda 
     County Medical Center in California for an initiative to 
     reduce health disparities among uninsured, minority 
     populations;
       --$850,000 in the Office of Minority Health for the Henry 
     Ford Health System in Detroit, Michigan, to address the 
     burden of chronic disease among African Americans through a 
     network of partnerships with community organizations;
       --$850,000 in the Office of Minority Health for the CORE 
     Center at Cook County Hospital in Chicago, Illinois, for a 
     Community and Minority Education and Training Initiative for 
     HIV/AIDS;
       --$935,000 in the Office of Minority Health for the Sumter 
     Family Health Care Center, Sumter, South Carolina to support 
     an innovative service delivery effort to provide health care 
     to individuals with disadvantaged backgrounds, including 
     minority populations;
       --$1,105,000 in the Office of Minority Health for the San 
     Francisco Department of Public Health to provide HIV care and 
     related services with an emphasis on providing care for women 
     and minorities;
       --$1,165,000 in the Office of Minority Health for the 
     Fresno Community Hospital and Medical Center in California 
     for diabetes care and outreach for Hispanic Americans and 
     low-income individuals; and
       --$1,700,000 in the Office of Minority Health for the 
     National Council of La Raza for minority health research and 
     outreach.
       --$150,000 for the Briarpatch Transitional Living Program 
     in Madison, Wisconsin, to provide housing and support 
     services to homeless teens.
       It is understood that the screening of blood and blood 
     products could be improved through the use of nucleic acid 
     testing (NAT) to better detect known infectious diseases such 
     as Human Immunodeficiency Virus (HIV-1) and Hepatitis C virus 
     (HCV). The National Heart, Lung and Blood Institute in the 
     National Institutes of Health has contracted with private 
     companies to develop fully automated NAT tests for HIV-1 and 
     HCV. In view of the NIH's financial commitment to NAT and the 
     approval of NAT in other countries, the Public Health Service 
     Blood Safety Committee, chaired by the Surgeon General/
     Assistant Secretary of Health, is urged to encourage the 
     adoption of these screening tools for individual donor 
     testing of blood and plasma.
       The conferees request that the Chief Financial Officer 
     report to the House and Senate Committees on Appropriations 
     on the status of the HHS financial audit. The conferees also 
     request that the Chief Information Officer report to the 
     House and Senate Committees on Appropriations on the status 
     of the HHS computer security and related infrastructure 
     protection. Both reports are to be presented to the 
     Committees no later than March 1, 2001.
       The conferees are concerned about the global AIDS pandemic 
     and are supportive of the Department's international AIDS and 
     infectious diseases efforts, especially those of CDC and NIH. 
     The Department should continue to identify opportunities for 
     strengthened international collaboration with those countries 
     heavily impacted by HIV/AIDS and other new and emerging 
     infectious diseases, as well as those nations that are 
     vulnerable to a rapid acceleration of new cases. The 
     Department should also coordinate its efforts with those of 
     the U.S. Agency for International Development (USAID) to 
     ensure that HHS activities are consistent with the USAID 
     country strategic plan, and with those of multilateral 
     organizations such as the World Health Organization and the 
     Joint United Nations Programme on AIDS.
       The conferees urge the Secretary to establish a program to 
     provide information and education on autism to health 
     professionals and the general public as authorized in the 
     Children's Health Act of 2000.
       The conferees direct the Secretary of Health and Human 
     Services, in consultation with the Director of NIH, to 
     conduct a review of the eligibility of the Bermuda Biological 
     Station for Research (BBSR) to receive F&A recovery on NIH-
     supported research. The conferees are aware that the National 
     Science Foundation, the National Oceanic and Atmospheric 
     Administration, the National Aeronautics and Space 
     Administration, and the Office of Naval Research provide BBSR 
     with direct and indirect costs of research in peer-reviewed, 
     competitive awards. The conferees request that the Secretary 
     report to the House and Senate Appropriations Committees on 
     the status of this review.
       The conferees expect the Office of Population Statistics to 
     better coordinate with the Health Resources and Services 
     Administration regarding family planning activities.
       The conferees support the HHS agreement to provide the 
     Interdepartmental Task Force on AIDS with administrative 
     support funding totalling $250,000 from within funds 
     available to the Department.
       The conferees request the Secretary to provide a report to 
     the House and Senate Appropriations Committees by May 1, 2001 
     on the Department's review and action steps taken in response 
     to the Institute of Medicine's report, ``No Time to Lose: 
     Getting More from HIV Prevention.'' This should include a 
     review of current investments in HIV prevention as they 
     relate to the issues raised by the Institute of Medicine.
       The conferees are aware that the Secretary is working to 
     establish the Advisory Committee on Minority Health to assist 
     the Secretary in improving the health of racial and ethnic 
     minority groups, and encourage the Secretary to proceed 
     expeditiously so that the Department's goals and program 
     activities better reflect the health care needs of Hispanic 
     Americans and other racial and ethnic minorities.
       The conferees are concerned about the current situation 
     regarding the availability and uneven distribution of 
     influenza vaccine for the nation at a critical time for our 
     most vulnerable populations, especially the elderly, sick and 
     very young. The conferees understand the Department's role in 
     developing influenza vaccine each year for distribution by 
     private industry and commend the Department for its efforts 
     to communicate with the American public as this unfortunate 
     situation developed. The Secretary, through the National 
     Vaccine Program Office, is directed to prepare a report to 
     the Committees on Appropriations of the House and Senate by 
     June 30, 2001 regarding its assessment of this year's 
     distribution problems along with any recommendations for 
     changes in the vaccine development and distribution process.
       The conferees understand that the incidence of unreimbursed 
     health care provided to foreign nationals in U.S. hospital 
     emergency rooms is a problem costing taxpayers millions of 
     dollars per year. The conferees direct the Secretary to 
     conduct a study regarding the extent of the problem, 
     including U.S. hospitals' experiences in obtaining 
     reimbursement from foreign insurers, the identity of foreign 
     insurance companies who do not cooperate with or reimburse 
     U.S. health care providers, the amount of unreimbursed 
     services provided to foreign nationals, along with 
     recommended solutions. This study shall be submitted to the 
     Committees on Appropriations of the House and Senate no later 
     than December 31, 2001.

                      Office of Inspector General

       The conference agreement includes $33,849,000 for the 
     Office of Inspector General as proposed by the Senate instead 
     of $31,394,000 as proposed by the House. The conferees do not 
     include language proposed by the House to limit the amount of 
     funds available to the Inspector General in fiscal year 2001 
     under the Health Insurance Portability and Accountability Act 
     of 1996 (HIPAA) to not more than $130,000,000. The Senate 
     bill contained no similar provision.
       The agreement includes language not proposed by the House 
     or the Senate to allow funds to be used to provide protective 
     services to the Secretary and investigate non-payment of 
     child support cases for which non-payment is a Federal 
     offense under 18 U.S.C. 228.

                        Office for Civil Rights

       The conference agreement includes $24,742,000 for the 
     Office for Civil Rights instead of $18,774,000 as proposed by 
     the House and $23,242,000 as proposed by the Senate.


                            policy research

       The conference agreement includes $16,738,000 for policy 
     research as proposed by both the House and the Senate.
       The conferees include $7,125,000 to continue the study of 
     the outcomes of welfare reform and to assess the impacts of 
     policy changes on the low-income population. The conferees 
     recommend that this effort include the collection and use of 
     state-specific surveys and state and federal administration 
     data, including data which are newly becoming available from 
     state surveys. These studies should focus on assessing the 
     well-being of the low-income population, developing and 
     reporting reliable state-by-state measures of family hardship 
     and well-being and of the utilization of other support 
     programs, and

[[Page 26716]]

     improving the capabilities and comparability of data 
     collection efforts. These studies should continue to measure 
     outcomes for a broad population of welfare recipients, former 
     recipients, potential recipients, and other special 
     populations affected by state TANF policies. The conferees 
     further expect a report on these topics to be submitted to 
     the House and Senate Appropriations Committees by May 1, 
     2001.

            Public Health and Social Services Emergency Fund

       The conference agreement includes $241,231,000 for the 
     Public Health and Social Services Emergency Fund instead of 
     $254,640,000 as proposed by the House and $214,600,000 as 
     proposed by the Senate.
       The amount provided includes $181,131,000 for the Centers 
     for Disease Control and Prevention for the following 
     bioterrorism and related activities:
       --$2,000,000 to continue to discover, develop, and 
     transition anti-infective agents to combat emerging diseases;
       --$18,040,000 for the second year of a collaborative 
     research program on the anthrax vaccine;
       --$32,000,000 for a national health alert network; and
       --$129,950,000 for all other activities, except tobacco 
     litigation. The conferees do not provide funding for this 
     activity.
       Regarding the anthrax study, the conferees understand that 
     clinical studies will be greatly facilitated by the 
     establishment of the Vaccine Healthcare Center Network, with 
     the first site at Walter Reed Army Medical Center. This 
     Network will facilitate data collection, standardization of 
     the anthrax immunization, training and general data 
     collection for this project.
       The conferees recommend that CDC continue and expand the 
     public health preparedness center program.
       The remaining $60,100,000 is for the Office of Emergency 
     Preparedness for bioterrorism-related activities.
       Within the total provided for CDC, the conferees include 
     the following amounts for the following projects and 
     activities in fiscal year 2001:
       --$500,000 for the National Bioterrorism Civilian Medical 
     Response Center at Drexel University;
       --$750,000 for the National Rapid Response Bioterrorism 
     Defense Center at the University of Texas Medical Branch, 
     Galveston;
       --$941,000 for the University of Findlay National Center 
     for Terrorism Preparedness to train and prepare underserved 
     populations and facilities to react to bioterrorism and 
     related incidents;
       --$900,000 for the St. Louis University Center for Research 
     and Education on Bioterrorism;
       --$1,000,000 for the West Virginia University Virtual 
     Medical Campus, to conduct an assessment for Disaster Medical 
     Assistance Teams, National Guard Civilian Support Teams and 
     hospital emergency and administrative personnel for medical 
     preparedness and readiness for Weapons of Mass Destruction or 
     similar events. These funds can only be used for this 
     purpose. A report is due to the Congress by June 30, 2001 on 
     this initiative;
       --$900,000 for the Rhode Island Hospital disaster 
     preparedness initiative;
       --$1,400,000 for the Charlotte Mecklenburg Advanced Local 
     Emergency Response Team (ALERT) project in Charlotte, North 
     Carolina;
       --$1,900,000 for the Public Health Service Moble Training 
     Center at Fort McClellan, Alabama for bioterrorism training; 
     and
       --$2,200,000 for the Washington Hospital Center, the 
     University of Pennsylvania Department of Emergency Medicine, 
     and the University of Tennessee ER One initiative.

                           GENERAL PROVISIONS


                       nih and samhsa salary cap

       The conference agreement includes a provision proposed by 
     the House limiting the use of the National Institutes of 
     Health and the Substance Abuse and Mental Health Services 
     Administration funds to pay the salary of an individual, 
     through a grant or other extramural mechanism, at a rate in 
     excess of Level I of the Executive Schedule instead of Level 
     II as proposed by the Senate.


                       one-percent evaluation tap

       The conference agreement includes a provision proposed by 
     the House to allow for a one percent evaluation tap pursuant 
     to section 241 of the Public Health Service Act. The Senate 
     bill contained a provision to allow for an evaluation tap of 
     not more than 1.6 percent.


                           transfer authority

       The conference agreement includes language to provide 
     general transfer authority for the Department of Health and 
     Human Services. This authority was first provided in fiscal 
     year 1996 with the understanding that the flexibility it 
     provides can only be carried out when proper financial 
     management controls and systems are in place. However, CDC 
     has provided Congress with inaccurate spending data on a 
     number of programs. While it is recognized that CDC is 
     working to rectify problems that have been identified, for 
     fiscal year 2001 the conferees are requiring a letter of 
     reprogramming to the House and Senate Appropriations 
     Committees and a written response from the Committees before 
     any transfer of funds can be made to CDC.
       The conferees reiterate that it is not the purpose of the 
     transfer authority to provide funding for new policy 
     proposals that can, and should, be included in subsequent 
     budget proposals. Absent the need to respond to emergencies 
     or unforeseen circumstances, this authority cannot be used 
     simply to increase funding for programs, projects or 
     activities because of disagreements over the funding level or 
     the difficulty or inconvenience with operating levels set by 
     the Congress.


       substance abuse and mental block grant formula allocation

       The conference agreement does not include a provision 
     proposed by either the House or the Senate regarding the 
     distribution of substance abuse and mental health block grant 
     funding.


                            nih obligations

       The conference agreement does not include a provision 
     proposed by the House to limit NIH obligations to the 
     President's budget request. The Senate bill contained no 
     similar provision.


              extension of certain adjudication provisions

       The conference agreement includes a provision proposed by 
     the Senate to extend the refugee status for persecuted 
     religious groups. The House bill contained no similar 
     provision.


           medicare competitive pricing demonstration project

       The conference agreement includes a provision proposed by 
     the Senate to prohibit funding to implement or administer the 
     Medicare Prepaid Competitive Pricing Demonstration Project in 
     Arizona or in Kansas City, Missouri or in the Kansas City, 
     Kansas area. The House bill contained no similar provision.


                  withholding of substance abuse funds

       The conference agreement includes a provision proposed by 
     the Senate to prohibit the Secretary from withholding a 
     State's substance abuse block grant funds if that State is 
     not in compliance with the requirements of the Synar 
     Amendment. The provision also prohibits the Secretary from 
     withholding substance abuse funding from a territory that 
     receives less than $1,000,000. The House bill contained no 
     similar provisions.


           state children's health insurance program (schip)

       The conference agreement does not include a provision 
     proposed by the Senate to shift unspent fiscal year 1998 
     SCHIP funds to fiscal year 2003. The House bill contained no 
     similar provision.


      sense of the senate regarding needlestick injury prevention

       The conferees delete without prejudice a Sense of the 
     Senate provision regarding needlestick injury prevention. The 
     House bill contained no similar provision.


                clearinghouse on safe needle technology

       The conference agreement does not include a provision 
     proposed by the Senate to provide additional funds to the 
     Centers for Disease Control and Prevention to establish a 
     clearinghouse on safe needle technology offset by an across-
     the-board reduction to travel, consulting, and printing 
     services of the Departments of Labor, Health and Human 
     Services, and Education. The House bill contained no similar 
     provision.


  reasonable rate of return on both intramural and extramural research

       The conference agreement does not include a provision 
     proposed by the Senate to withhold funding if the Director of 
     NIH did not provide a proposal to require a reasonable rate 
     of return on both intramural and extramural research by March 
     31, 2001. The House bill contained no similar provision.


    study on unreimbursed health care provided to foreign nationals

       The conference agreement does not include a provision 
     proposed by the Senate to require the Secretary to conduct a 
     study on the unreimbursed health care provided to foreign 
     nationals. The House bill contained no similar provision.


        national institute of child health and human development

       The conference agreement includes a provision proposed by 
     the Senate to amend the Public Health Service Act to revise 
     the purpose of the Institute relating to gynecologic health. 
     The House bill contained no similar provision.


         immunization infrastructure and operations activities

       The conference agreement does not include a provision 
     proposed by the Senate to provide additional funds to the 
     Centers for Disease Control and Prevention for State and 
     local immunization infrastructure and operations activities 
     offset by an across-the-board reduction to administrative and 
     related expenses of the Departments of Labor, Health and 
     Human Services, and Education. The House bill contained no 
     similar provision.


                   animal care contract requirements

       The conference agreement includes a provision proposed by 
     the Senate to require that the contractor hired for the care 
     of the 288

[[Page 26717]]

     chimpanzees acquired by NIH from the Coulston Foundation be 
     accredited by the Association for the Assessment and 
     Accreditation of Laboratory Animal Care International or has 
     PHS assurance. The House bill contained no similar provision.


                 Poison Prevention and Control Centers

       The conference agreement does not include a provision 
     proposed by the Senate to provide additional funds to the 
     Health Resources and Services Administration to provide 
     assistance for poison prevention and control activities 
     offset by an across-the-board reduction to administrative and 
     related expenses of the Departments of Labor, Health and 
     Human Services, and Education. The House bill contained no 
     similar provision.


    Sense of the Senate Regarding the Delivery of Emergency Medical 
                                Services

       The conferees delete without prejudice a Sense of the 
     Senate provision regarding the delivery of emergency medical 
     services. The House bill contained no similar provision.


  Sense of the Senate Regarding Impacts of the Balanced Budget Act of 
                                  1997

       The conferees delete without prejudice a Sense of the 
     Senate provision regarding impacts of The Balanced Budget Act 
     of 1997. The House bill contained no similar provision.


                                 ARKids

       The conference agreement does not include a provision 
     proposed by the House to prohibit the Health Care Financing 
     Administration from revoking a waiver to the State of 
     Arkansas that implements its own children's health insurance 
     plan. The Senate bill contained no similar provision.


                          Abstinence Education

       The conference agreement includes language to prohibit the 
     awarding of abstinence education grants authorized in the 
     Emergency Supplemental Act, 2000 until March 1, 2001. The 
     House and Senate bills contained no similar provision.


                  Physicians Comparability Allowances

       The conference agreement includes a provision not proposed 
     by either the House or the Senate to extend the authority of 
     physicians comparability allowances for five years.


                    Organ Procurement Organizations

       The conference agreement includes language to prohibit the 
     termination of the Lifelink of Puerto Rico Organ Procurement 
     Organization, the Northeast Organ Procurement Organization 
     and Tissue Bank, and the Arkansas Regional Organ Recovery 
     Agency from participation in the Medicare and Medicaid 
     programs for one year from the date of enactment of this Act. 
     The agreement further requires that future certification be 
     determined based upon performance information from these 
     individual Organ Procurement Organizations beginning on 
     January 1, 2000. The House and Senate bills contained no 
     similar provision.


                      CDC International Authority

       The conference agreement includes a provision not proposed 
     by either the House or the Senate to provide authority to 
     support CDC carrying out international HIV/AIDS and other 
     infectious and chronic disease activities abroad.
       Subsection (a)(1) is intended to allow CDC to meet 
     relatively short-term requirements for technical, management, 
     and administrative personnel needs abroad through the award 
     of personal services contracts in situations where other 
     options, such as use of existing staff or hiring of new 
     staff, or award of a service contract, other than one for 
     personal services, are ineffective and impractical. During FY 
     2001, the conferees expect HHS to work with the Office of 
     Management and Budget and other relevant agencies and 
     Congressional committees as appropriate to consider effective 
     longer-term solutions for addressing these types of needs.
       Section (a)(2) is intended to ensure that the Department of 
     State can provide necessary support services (including 
     Administrative Support services agreements) to support CDC's 
     international health programs, including the purchase of 
     necessary laboratory equipment and the lease, repair and 
     renovation of laboratory and other facilities.


                                Bayview

       The conference agreement includes language to allow the 
     Director of the National Institutes of Health to enter into 
     and administer a long-term lease agreement for facilities at 
     the Bayview Campus in Baltimore, Maryland.


             Office for Human Research Protections Transfer

       The conference agreement includes a provision to transfer 
     $5,800,000 from the National Institutes of Health to the 
     Office of the Secretary, General Departmental Management to 
     support the newly established Office for Human Research 
     Protections. This transfer of funds implements the 
     Secretary's decision to move the Office to the Department 
     from NIH and that in the future the Department will request 
     funding for the Office within the Office of the Secretary. 
     The House and Senate bills contained no similar provision.


                    Clinical Research Loan Repayment

       The conference agreement includes a provision to allow 
     extramural clinical researchers to be included in the 
     clinical research loan repayment program for individuals from 
     disadvantaged backgrounds. The House and Senate bills 
     contained no similar provision.


                         Acting Director of NIH

       The conference agreement includes a provision to allow the 
     current Acting Director of NIH to remain in that position 
     until a new Director is confirmed by the Senate. The House 
     and Senate bills contained no similar provision.


                 national neuroscience research center

       The conference agreement includes a provision to name the 
     National Neuroscience Research Center at the National 
     Institutes of Health the John Edward Porter Neuroscience 
     Research Center.


                           Title II Citation

       The conference agreement includes a provision proposed by 
     the House to cite title II as the ``Department of Health and 
     Human Services Appropriations Act, 2001''. The Senate bill 
     contained no similar provision.

                   TITLE III--DEPARTMENT OF EDUCATION

                            Education Reform

       The conference agreement includes $1,880,710,000 for 
     Education Reform instead of $1,505,000,000 as proposed by the 
     House and $1,434,500,000 as proposed by the Senate.
     Parental Assistance
       The conference agreement includes $38,000,000 for parental 
     assistance instead of $40,000,000 as proposed by the Senate. 
     The House did not propose funding for this program.
     Education Technology
       For education technology, the conference agreement includes 
     $872,096,000 instead of $905,000,000 as proposed by the House 
     and $794,500,000 as proposed by the Senate.
     Technology Literacy Challenge Fund
       For the Technology Literacy Challenge Fund, the conference 
     agreement includes $450,000,000 instead of $425,000,000 as 
     proposed by the Senate and $517,000,000 as proposed by the 
     House.
     Technology Innovation Challenge Grants
       For the Technology Innovation Challenge Grants, the 
     conference agreement includes $136,328,000 instead of 
     $197,500,000 as proposed by the House and $100,000,000 as 
     proposed by the Senate. Within the amounts provided for 
     Technology Innovation Challenge Grants, the conference 
     agreement includes $46,328,000 for the following:
       $921,000 to be divided equally among the Blount, Cherokee, 
     Cullman, DeKalb, Etowah, Fayette, Franklin, Lamar, Lawrence, 
     Marion, Marshall, Pickens, Walker and Winston County Boards 
     of Education in Alabama for technology enhancements for 
     schools;
       $369,000 Harford County Magnet School, Aberdeen, MD for 
     technology enhancements;
       $92,000 Community School District 31, Staten Island, NY for 
     school computer lab enhancements;
       $147,000 Community School District 20, Brooklyn, NY for 
     school computer lab enhancements;
       $921,000 Rockford Public Schools- District 205, Rockford, 
     IL for Digital Community Classroom project;
       $207,000 Grant Joint Union High School District, 
     Sacramento, CA for technology enhancements;
       $44,000 Bibb County Board of Education, AL for technology 
     enhancements;
       $44,000 Calhoun County Board of Education, AL for 
     technology enhancements;
       $44,000 Chambers County Board of Education, AL for 
     technology enhancements;
       $44,000 Chilton County Board of Education, AL for 
     technology enhancements;
       $44,000 Clay County Board of Education, AL for technology 
     enhancements;
       $44,000 Cleburne County Board of Education, AL for 
     technology enhancements;
       $44,000 Coosa County Board of Education, AL for technology 
     enhancements;
       $44,000 Lee County Board of Education, AL for technology 
     enhancements;
       $44,000 Macon County Board of Education, AL for technology 
     enhancements;
       $44,000 St. Clair County Board of Education, AL for 
     technology enhancements;
       $44,000 Talladega County Board of Education, AL for 
     technology enhancements;
       $44,000 Tallapoosa County Board of Education, AL for 
     technology enhancements;
       $44,000 Randolph County Board of Education, AL for 
     technology enhancements;
       $44,000 Russell County Board of Education, AL for 
     technology enhancements;
       $44,000 Jacksonville City Board of Education, AL for 
     technology enhancements;
       $44,000 Oxford City Board of Education, AL for technology 
     enhancements;
       $44,000 Sylacauga City Board of Education, AL for 
     technology enhancements;
       $44,000 Phenix City Board of Education, AL for technology 
     enhancements;
       $44,000 Auburn City Board of Education, AL for technology 
     enhancements;
       $44,000 Opelika City Board of Education, AL for technology 
     enhancements;
       $44,000 Piedmont City Board of Education, AL for technology 
     enhancements;
       $921,000 Corbin Technology and Training Center, Corbin KY;
       $921,000 Regional Technology and Training Center in West 
     Liberty, KY;

[[Page 26718]]

       $415,000 Cherokee County, Murphy NC for computers;
       $46,000 Meredith-Dunn School, Louisville, KY for technology 
     enhancements;
       $184,000 Crawford County Public Schools in Roberta GA for 
     technology development and equipment;
       $35,000 Thomas Jefferson High School for Science and 
     Technology, Alexandria, VA for technology enhancements;
       $921,000 California Institute of the Arts, Community Arts 
     Partnership, Santa Clarita, CA for the Digital Arts Network 
     Project;
       $184,000 Travis Unified School District, Fairfield, CA for 
     a technology plan;
       $9,000,000 I CAN LEARN;
       $1,800,000 Beaufort County School District in South 
     Carolina to continue implementing the Learning with Laptops 
     initiative;
       $900,000 Metropolitan Regional and Technical Center in 
     Providence, Rhode Island to provide training and support in 
     computer technology through Project Family Net;
       $1,500,000 Tupelo Public School District in Tupelo, 
     Mississippi to Model successful, replicable technology 
     application and utilization;
       $2,000,000 South Carolina Educational TV in Columbia, South 
     Carolina for its public-private partnership established to 
     develop model communication tools that support the use of 
     technology in improving students' reading and writing;
       $1,275,000 Washington State Educational Agency in Olympia, 
     Washington for the Linking Educational Technology and 
     Educational Reform (LINKS) project to provide electronic 
     student learning and teacher training;
       $500,000 Discovery Center in Springfield, Missouri, in 
     partnership with area schools, to enhance student access to 
     and use of technology-based learning;
       $100,000 Montgomery Public School system in Montgomery, 
     Alabama for technology upgrades at the Brewbaker Technology 
     Magnet High School;
       $850,000 New Mexico State Department of Education for an 
     online advanced placement course demonstration program;
       $450,000 Western Kentucky University to improve teacher 
     preparation programs that help incorporate technology into 
     the school curriculum;
       $680,000 Houston Independent School District in Houston, 
     Texas to provide advanced telecommunications systems for 
     schools in the district;
       $500,000 McDermitt Combined School in Nevada to improve 
     student access to and understanding of computers;
       $55,000 Northwood School District in Minong, Wisconsin for 
     distance education programs;
       $100,000 New Mexico State Department of Education for a 
     virtual school designed to increase educational access for 
     students;
       $850,000 Washington State Office of Public Instruction for 
     online advanced placement course development and delivery;
       $1,800,000 Iowa Department of Education for online advance 
     placement course development and delivery;
       $2,500,000 Wheeling Jesuit University NASA Center for 
     Educational Technologies in West Virginia for technology 
     training of math and science teachers;
       $65,000 Reid Elementary School District in Searchlight, 
     Nevada for educational technology enhancements;
       $100,000 City of Philadelphia, Pennsylvania for technology 
     training and access to the internet and other high-technology 
     tools;
       $925,000 Marymount University in Virginia for an 
     instructional technology program for teachers;
       $3,100,000 Rutgers, the State University of New Jersey, for 
     the RUNet 2000 project;
       $2,200,000 South Dakota Board of Regents to support 
     distance learning technology;
       $1,421,000 Future of the Piedmont Foundation, Regional 
     Education Center, Danville, VA for technology enhancements;
       $170,000 Santa Barbara Industry Education Council and Santa 
     Barbara County Education Office, California for a computers 
     for families program;
       $250,000 Nicolet Distance Education Network in Rhinelander, 
     Wisconsin, for a distance learning initiative;
       $417,000 Gadsden School District in Quincy, Florida for 
     technology upgrades and equipment for a distance education 
     initiative;
       $451,000 Woodburn School District, Woodburn, Oregon for 
     technology equipment for a distance learning center;
       $489,000 Southwest Virginia Education and Training Network, 
     Abington, Virginia, for technology upgrades;
       $561,000 Adelphi University, New York, for the Information 
     Commons distance education initiative;
       $638,000 Liberty Science Center, Jersey City, New Jersey, 
     for technology upgrades for its partnership program with 28 
     school districts in New Jersey;
       $723,000 Maine School Administrative District Number 64, 
     East Corinth, Maine, for the STAR technology teacher training 
     project;
       $723,000 The Appalachian Center for Economic Networks, 
     Athens, Ohio, to expand a computer entrepreneurship project;
       $808,000 Detroit Educational Television Foundation, 
     Detroit, Michigan, to deliver expanded arts educational 
     programs to schools through the Enrichment Channel;
       $1,169,000 Puget Sound Center for Teaching, Learning, and 
     Technology, Seattle, Washington, for technology training, 
     equipment and support; and
       $100,000 Rose Tree Media School District in Pennsylvania 
     for integrating distance learning in the classroom through 
     the HUBS project.
     National Activities
       The conference agreement includes $191,950,000 for 
     education technology initiatives funded under National 
     Activities. This includes $125,000,000 for teacher training 
     in technology, the same amount as proposed by the Senate 
     instead of $85,000,000 as proposed by the House. It also 
     includes $64,950,000 to establish computer learning centers 
     in low-income communities instead of $32,500,000 as proposed 
     by the House and $65,000,000 as proposed by the Senate.
     Star Schools
       For Star Schools, the conference agreement includes 
     $59,318,000 instead of $45,000,000 as proposed by the House 
     and $43,000,000 as proposed by the Senate. Within the amounts 
     provided for Star Schools, the conference agreement includes 
     $8,768,000 for the following:
       $478,000 Winston-Salem/Forsyth County Schools, Winston-
     Salem, NC for Winston-Net program;
       $1,290,000 Galena School District, Galena Alaska for a 
     distance education program;
       $4,000,000 Iowa Communications Network statewide fiber 
     optic demonstration program; and
       $3,000,000 South Dakota Department of Education and 
     Cultural Affairs to continue and expand the Digital Dakota 
     Network which provides high speed Internet and local and wide 
     area networking to all public K-12 schools in South Dakota.
     Telecommunications demonstration project for mathematics
       The conference agreement includes $8,500,000 for 
     telecommunications demonstration project for mathematics as 
     proposed by the Senate. The House proposed no funds. The 
     conferees recognize the positive work that the Public 
     Broadcasting Service (PBS) has done in demonstrating and 
     evaluating the use of different technologies to provide 
     professional development opportunities in mathematics to 
     elementary and secondary school teachers. While the Mathline 
     program clearly has reached many teachers through various 
     media, the conferees want to ensure that the greatest number 
     of educators and students will benefit from this program. The 
     conferees encourage PBS to continue to explore cost effective 
     options for providing high quality professional development 
     opportunities in core curricula to current and future 
     teachers. In addition, the conferees encourage PBS to 
     continue evaluating this program to measure the change in 
     student academic achievement that results from teaching 
     techniques learned through this program.
     21st Century Learning Centers
       The conference agreement includes $845,614,000 for the 21st 
     Century Learning Centers instead of $600,000,000 as proposed 
     by both the House and the Senate. Within the amounts provided 
     for 21st Century Learning Centers, the conference agreement 
     includes $20,614,000 for the following:
       $9,000 Thirteenth Place Youth and Family Services in Gadsen 
     Alabama for ``The After School Program'';
       $921,000 The Community House Inc. in Hinsdale, IL for youth 
     programs and services;
       $230,000 Boys and Girls Club of Coachella Valley in Palm 
     Desert, CA for after school programs;
       $553,000 Boys and Girls Club of Danville, Danville IL for 
     youth programs;
       $461,000 Fayette and Clark Counties, Kentucky for after 
     school programs;
       $69,000 Chrysalis House Inc. in Lexington, KY for equipment 
     related to afterschool programs;
       $18,000 Goodhue Center, Staten Island, NY for an 
     educational and technology enrichment project;
       $18,000 Central Family Life Center Inc. in Staten Island NY 
     for after school family preservation program for tutoring and 
     after school;
       $23,000 Jewish Community Center of Staten Island, NY for an 
     after school program;
       $41,000 Catholic Youth Organization Inc., Staten Island NY 
     for an after school program;
       $92,000 Boys and Girls Club of Rochester, MN for Project 
     Learn;
       $23,000 Children's Museum of Elizabethtown, KY for after 
     school programming;
       $921,000 Boys and Girls Clubs of Santa Clarita Valley, 
     Santa Clarita, CA for youth development programs;
       $9,000 First Gethsemane Center for Family Development, 
     Louisville, KY for tutoring program;
       $18,000 Summerbridge, Louisville, KY for tutoring program;
       $14,000 New Creations Development Programs, Inc., 
     Louisville, KY for tutoring/mentoring program;
       $18,000 New Zion Community Development Foundation, 
     Louisville, KY for after school mentoring program;

[[Page 26719]]

       $18,000 Robbie Valentine Stars Club Education Program, 
     Louisville, KY for mentoring programs;
       $14,000 Shiloh Community Renewal Center in Louisville, KY 
     for after school and summer tutoring;
       $276,000 Tulare County Office of Education, Visalia, CA for 
     a Summer Youth program;
       $691,000 West-End YMCA Association, Ontario, CA for after 
     school programming;
       $250,000 Big Brothers/Big Sisters of America to expand its 
     school-based mentoring program to the State of New Hampshire;
       $250,000 City of Portland, Oregon to increase student 
     achievement and family involvement with children through its 
     Schools Uniting Neighborhoods program;
       $350,000 Cranston Public School District in Cranston, Rhode 
     Island, in collaboration with community partners, to improve 
     parental participation in student learning and enhance the 
     use of technology in after school programs;
       $200,000 Discovery Center in Springfield, Missouri for 
     expansion of science education programs available to at risk 
     youth;
       $375,000 Bibb County Board of Education in Macon, Georgia 
     for after school programming;
       $200,000 John A. Logan College to develop a community 
     learning center in rural Southern Illinois;
       $100,000 Project 2000 for mentoring and other support 
     services for low-income and inner-city students in the 
     District of Columbia;
       $250,000 Holy Redeemer Health System in Philadelphia, 
     Pennsylvania for after school programs for at risk children;
       $1,100,000 State of Alaska for extended learning 
     opportunities for school children provided through the Right 
     Start program;
       $400,000 National Ten-Point Leadership Foundation in 
     Boston, MA to address the mentoring needs of at-risk inner-
     city youth;
       $425,000 Clark County School District, Las Vegas, Nevada 
     for an after school community learning center;
       $293,000 Centennial School District, Circle Pines, 
     Minnesota, for an after school program;
       $213,000 City School District of New Rochelle, New York, 
     for an after school program;
       $370,000 Abbotsford School District, Abbotsford, Wisconsin, 
     for an after school program;
       $213,000 Community School District 24, Glendale, New York 
     for before- and after-school programs;
       $213,000 Community School District 28, Forest Hills, New 
     York for an after school program;
       $213,000 Community School District 30, Jackson Heights, New 
     York for an after school program;
       $60,000 Crosby Independent School District in Barrett 
     Station, Texas, for an after school program;
       $85,000 Eastchester Union Free School District, 
     Eastchester, New York for an after school program;
       $128,000 Fontana Unified School District, Fontana, 
     California, for the educational component of a teen center 
     for at-risk youth;
       $234,000 Sauk Prairie Schools, Sauk City, Wisconsin for an 
     after school program;
       $468,000 Hastings Public Schools, Hastings, Minnesota, for 
     an after school program;
       $750,000 Hayward Community School District, Hayward, 
     Wisconsin for an after school;
       $191,000 Independence School District, Independence, 
     Missouri, to expand before and after school programs;
       $510,000 Macomb County Intermediate School District, 
     Michigan for the ``Kids Klub'' after school program;
       $1,275,000 Milwaukee Public Schools, Wisconsin, for after 
     school programs;
       $170,000 New London Public Schools, New London, 
     Connecticut, for an after school program;
       $298,000 New York Hall of Science in Queens, New York for 
     an after school program;
       $629,000 Pojoaque Valley Schools in Pojoaque, New Mexico 
     for the Para Los Ninos after school consortium;
       $213,000 Port Chester-Rye Union Free School District, Port 
     Chester, New York for an after school program;
       $850,000 Rock Island County Regional Office of Education, 
     Moline, Illinois for after school programs in the Moline-Coal 
     Valley School District and the Rock Island-Milan School 
     District;
       $361,000 South Washington County Schools, Cottage Grove, 
     Minnesota, for an after school program;
       $340,000 St. Clair County Intermediate School District, 
     Michigan for the ``Kids Klub'' after school program;
       $230,000 St. Francis School District, Milwaukee, Wisconsin 
     for an after school program;
       $1,300,000 Wausau School District, Wausau, Wisconsin, for 
     an after school program;
       $170,000 Windham Public Schools, Willimantic, Connecticut, 
     for an after school program; and
       $2,500,000 Expansion of Gallery 37 after school programming 
     in Chicago, Illinois.
       The conference agreement includes bill language stating 
     that the Secretary shall strongly encourage applications for 
     21st Century Community Learning Center grants to be submitted 
     jointly by a local educational agency (or a consortium of 
     local educational agencies) and a community-based 
     organization, including public or private entities with 
     demonstrated effectiveness in providing educational or 
     related services to individuals in the community, such as 
     child care providers, youth development organizations (such 
     as YMCAs, the Boys and Girls Clubs, Big Brothers Big Sisters 
     of America, Camp Fire Boys and Girls, and the Girl Scouts), 
     museums, libraries, and Departments of Parks and Recreation. 
     In including this language, the conferees intend that the 
     Secretary shall strongly encourage joint applications in 
     order to promote local collaboration and coordination of 
     services. This is especially important where more than one 
     application is received proposing to serve the same 
     community. Additionally, the language requires all 
     applications submitted to the Secretary to contain evidence 
     that the project includes elements that are designed to 
     assist students to meet or exceed State and local standards 
     in core academic subjects, as appropriate to the needs of 
     participating children. The Senate bill included language 
     stating that a community-based organization that has 
     experience in providing before- and after-school services 
     shall be eligible to receive a grant on the same basis as a 
     school or consortium, and stating that the Secretary shall 
     give priority to any applications jointly submitted by a 
     community-based organization and a school or consortium. The 
     House bill contained no similar language.
     Small Schools
       The conference agreement includes $125,000,000 for the 
     Small, Safe and Successful Schools initiative authorized 
     under section 10105 of part X of the Elementary and Secondary 
     Education Act. The House bill included funding for this 
     initiative under the Fund for the Improvement of Education 
     and the Senate bill proposed no funding.
       The conferees agree that these funds shall be used only for 
     activities related to the redesign of large high schools 
     enrolling 1,000 or more students, and that this initiative 
     shall continue to be jointly managed by the Office of 
     Elementary and Secondary Education and the Office of 
     Vocational and Adult Education.


                    EDUCATION FOR THE DISADVANTAGED

       The conference agreement includes $9,532,621,000 for 
     Education for the Disadvantaged instead of $8,986,800,000 as 
     proposed by the Senate and $8,816,986,000 as proposed by the 
     House. The agreement includes advance funding for this 
     account of $6,758,300,000 instead of $6,204,763,000 as 
     proposed by the House and $6,223,342,000 as proposed by the 
     Senate.
       For Grants to Local Educational Agencies (LEAs) the 
     agreement provides $8,601,721,000 instead of $8,335,800,000 
     as provided by the Senate and $7,941,397,000 as provided by 
     the House. Of the funds made available for basic grants, 
     $5,394,300,000 becomes available on October 1, 2001 for the 
     academic year 2001-2002.
       The conference agreement includes $7,237,721,000 for basic 
     grants and $1,364,000,000 for concentration grants. For 
     fiscal year 2001, $1,158,397,000 was advance funded in the 
     fiscal year 2000 Departments of Labor, Health and Human 
     Services and Education and Related Agencies Act (P.L. 105-
     227). The funding of $1,364,000,000 for concentration grants 
     is advanced for fiscal year 2002.
       The conferees have included $225,000,000 for school 
     improvement activities under section 1116(c) of the 
     Elementary and Secondary Education Act (ESEA) of 1965 to 
     assist low performing schools under Title I of ESEA. School 
     improvement activities are those measures designed to help 
     turn around low performing schools. One hundred percent of 
     the funds provided for these activities are to be allocated 
     by states to school districts.
       The conferees have also included a requirement that all 
     school districts receiving funds under Part A of Title I 
     shall provide students in low performing Title I schools with 
     the option to transfer to another public school or public 
     charter school in the school district, unless prohibited by 
     state or local law or policy. Local educational agencies 
     located within States that qualify for the small state 
     minimum under Title I Part A are not required to comply with 
     this requirement, but may comply if they so choose.
       The conference agreement includes $6,000,000 for capital 
     expenses for private school children as proposed by the 
     Senate. The House bill contained no funding for this program.
       The conference agreement includes $250,000,000 for the Even 
     Start program as proposed by the House instead of 
     $185,000,000 as proposed by the Senate.
       The conference agreement includes $380,000,000 for the 
     migrant education program as proposed by the Senate instead 
     of $354,689,000 as proposed by the House. The agreement also 
     includes $46,000,000 for neglected and delinquent youth 
     instead of $50,000,000 as proposed by the Senate and 
     $42,000,000 as proposed by the House.
       The conference agreement includes $8,900,000 for evaluation 
     of title I programs as proposed by the House. The Senate bill 
     did not propose funding for this activity.
       The conference agreement includes $210,000,000 for the 
     comprehensive school reform demonstration program instead of

[[Page 26720]]

     $190,000,000 as proposed by the House. The Senate bill did 
     not propose funding for this activity. The conferees direct 
     the Department to follow the directives in the report 
     accompanying the fiscal year 1998 bill (House Report 105-390) 
     and in the conference report accompanying the fiscal year 
     1999 bill (House Report 105-825) in administering this 
     program.
       For the education for the disadvantaged program, the 
     agreement includes a provision not contained in either House 
     or Senate bills which allows each state and local educational 
     agency (LEA) to receive the greater of either the amount it 
     would receive at specified levels under the 100% hold 
     harmless contained in the Senate bill or what it would 
     receive using the statutory formulas. This comparison is 
     intended to be used for allocating funds in fiscal year 2001 
     for both basic and concentration grants. The conferees expect 
     the Department to use updated demographic and financial 
     expenditure data in determining allocations when such data 
     becomes available. The Senate bill included a 100% hold 
     harmless for States and LEAs for both basic and concentration 
     grants. The House bill contained no similar provision.
       The conferees adopt language included in the Senate bill 
     providing that the Department shall make 100% hold harmless 
     awards to LEAs that were eligible for concentration grants in 
     2000, but are not eligible to receive grants in fiscal year 
     2001.
       The conferees also adopt language included in the Senate 
     bill providing that the Secretary of Education shall not take 
     into account the 100% hold harmless provision in determining 
     State allocations under any other program. The House bill did 
     not contain these hold harmless provisions.


                               IMPACT AID

       The conference agreement includes $993,302,000 for the 
     Impact Aid programs instead of $985,000,000 as proposed by 
     the House and $1,075,000,000 as proposed by the Senate. For 
     basic grants the agreement includes $882,000,000; for 
     payments for children with disabilities the conferees include 
     $50,000,000. The agreement also includes $8,000,000 for 
     facilities maintenance, $12,802,000 for construction, and 
     $40,500,000 for payments for federal property. The conferees 
     note that funds for basic grants and payments for heavily 
     impacted districts are combined pursuant to the provisions of 
     the Impact Aid Reauthorization Act of 2000.
       Sufficient funding is provided within the account for 
     construction for the following: $1,981,000 for the North 
     Chicago Community Unit School District 187; $921,000 for the 
     Wheatland School District, Wheatland, California; $400,000 
     for Brockton Elementary Public School District in Montana; 
     $2,600,000 for Craig School District in Alaska; and $900,000 
     for Cannon Ball Elementary School on Standing Rock Sioux 
     Reservation in Cannon Ball, North Dakota.
       The conferees also include the following language 
     provisions: timely filing of an application by the Academy 
     School District 20 in Colorado; restoration of payments to 
     school districts affected by a section 8002 cap in 1998; and 
     deeming eligibility for Kadoka School District in South 
     Dakota. Neither the House nor Senate bills contained similar 
     provisions.


                      SCHOOL IMPROVEMENT PROGRAMS

       The conference agreement includes $4,872,084,000 for School 
     Improvement Programs instead of $3,165,334,000 as proposed by 
     the House and $4,672,534,000 as proposed by the Senate. The 
     agreement provides $3,107,084,000 in fiscal year 2001 and 
     $1,765,000,000 in fiscal year 2002 funding for this account.
     Eisenhower professional development state and local 
         activities
       For Eisenhower professional development state and local 
     activities, the conferees provide $485,000,000. The House 
     bill provided $1,750,000,000 for the Teacher Empowerment Act, 
     subject to authorization, which included funds previously 
     dedicated to the Eisenhower professional development 
     programs. The Senate bill provided $435,000,000.
       The conference agreement includes bill language providing 
     that a local educational agency shall use funds received in 
     excess of the allocation received for the preceding fiscal 
     year to improve teacher quality by reducing the percentage of 
     teachers who are uncertified, teaching out of field, or who 
     lack sufficient content knowledge to teach effectively in the 
     areas they teach. These additional funds may be used for 
     mentoring programs for new teachers, to provide opportunities 
     for teachers to participate in multi-week institutes, such as 
     those offered in the summer months that provide intensive 
     professional development and to implement incentives to 
     retain quality teachers who have a record of success in 
     helping low-achieving students improve their academic 
     success. State educational agencies and State agencies for 
     higher education may also use additional funds provided in 
     excess of the allocation received for the preceding fiscal 
     year for multi-week institutes, such as those provided in the 
     summer months, that provide intensive professional 
     development in partnership with local educational agencies, 
     and to provide grants to recruit, prepare, retain, and train 
     school principals and superintendents, especially individuals 
     serving or intending to serve in high-poverty, low-performing 
     schools and districts.
       The conference agreement also includes $45,000,000 within 
     the amount for Eisenhower state grants to be available to 
     States to support efforts to meet the requirements under 
     section 1111 of title I of the Elementary and Secondary 
     Education Act of 1965 or the requirements for State 
     eligibility for the Ed-Flex Partnership Act of 1999.
     Eisenhower professional development national activities
       The conference agreement provides $44,000,000 for 
     Eisenhower professional development national activities under 
     this account.
       Early Childhood Educators.--Within the funds available for 
     Eisenhower professional development national activities, the 
     conference agreement includes $10,000,000 for training early 
     childhood educators and caregivers in high-poverty 
     communities to focus on professional development activities 
     to further children's language and literacy skills to help 
     prevent them from encountering reading difficulties once they 
     enter school.
       Teacher Recruitment Initiatives.--Within the funds 
     available for Eisenhower professional development activities, 
     the conference agreement also includes $34,000,000 for new 
     teacher recruitment initiatives. The conferees believe that 
     an expanded effort to get more talented individuals from non-
     traditional routes into classrooms is warranted and is an 
     efficient means to get highly skilled people into schools at 
     a time when the demand for these skills is the greatest. For 
     example, the conferees acknowledge that the Troops to 
     Teachers and Teach for America programs have been innovative 
     models for recruiting qualified, nontraditional candidates 
     into teaching and offer viable solutions to our nation's need 
     to hire over 2.2 million teachers over the next ten years to 
     replace veteran retiring teachers and to accommodate 
     additional student enrollment.
       Of the amount made available for teacher recruitment 
     initiatives, $3,000,000 shall be available to the Secretary 
     for transfer to the Defense Activity for Non-Traditional 
     Education Support of the Department of Defense (Troops-to-
     Teachers). The remaining $31,000,000 available for teacher 
     recruitment initiatives shall be available for grants as 
     described in the prior paragraph for local educational 
     agencies, State educational agencies, educational service 
     agencies, or nonprofit agencies and organizations, including 
     organizations with expertise in teacher recruitment, or 
     partnerships comprised of these entities to recruit, prepare, 
     place and support mid-career professionals from diverse 
     fields who possess strong subject matter skills to become 
     teachers, particularly in high-need fields such as 
     mathematics, science, foreign languages, bilingual education, 
     reading, and special education; and to attract, recruit, 
     screen, select, train, place and provide financial incentives 
     to recent college graduates with outstanding academic records 
     and a baccalaureate in a field other than education to become 
     fully qualified teachers through nontraditional routes.
     Innovative education program strategies
       For innovative education program strategies, title VI of 
     the Elementary and Secondary Education Act of 1965, the 
     conference agreement includes $385,000,000 instead of 
     $3,100,000,000 as proposed by the Senate and $365,750,000 as 
     proposed by the House.
       The conferees support the use of funds appropriated under 
     section 6301(b) to provide single-sex school or classroom 
     programs provided that the recipient ``complies with 
     applicable law,'' a phrase intended to incorporate all 
     relevant Supreme Court opinions, including U.S. v. Virginia, 
     116 S. Ct. 2264 (1996), as proposed by the Senate. The House 
     bill contained no similar provision. The conferees intend 
     that this provision does not require local educational 
     agencies to use title VI funds only for gender equity 
     activities.
     Class size
       The conference agreement includes $1,623,000,000 to 
     continue the initiative to reduce class size that was begun 
     in fiscal year 1999. The House bill provided $1,750,000,000 
     for the Teacher Empowerment Act, subject to authorization. 
     The Senate bill provided $3,100,000,000 for activities to 
     improve teacher quality, reduce class size, and renovate 
     school facilities and to carry out activities under title VI 
     of the Elementary and Secondary Education Act of 1965.
       The conference agreement provides that the allocation of 
     funds under section 306 to the States shall be based on the 
     proportional share that each State received from the fiscal 
     year 1999 appropriation for class size reduction. States will 
     continue to allocate their grant funds among local 
     educational agencies based on a formula that reflects both 
     their relative numbers of children in low-income families and 
     their school enrollments.
       Local educational agencies would use funds for recruiting, 
     hiring and training fully qualified regular and special 
     education teachers who are certified within the States, have 
     a baccalaureate degree and demonstrate subject matter 
     knowledge in their content areas. Twenty five percent of 
     these funds may be used by local educational agencies to test 
     new teachers for academic content knowledge, to meet State 
     certification

[[Page 26721]]

     requirements, or to provide professional development for 
     existing teachers. In addition, local educational agencies 
     may use these funds for carrying out activities authorized 
     under section 2210 of the Elementary and Secondary Education 
     Act of 1965 (the Eisenhower Professional Development 
     program); mentoring programs for new teachers; providing 
     opportunities for teachers to attend multi-week institutes, 
     such as those provided in the summer months, that provide 
     intensive professional development in partnership with local 
     educational agencies; and carrying out initiatives to promote 
     the retention of highly qualified teachers who have a record 
     of success in helping low-achieving students improve their 
     academic success. Such activities shall have the goal of 
     ensuring that all instructional staff are fully qualified.
       A local educational agency that has already reduced class 
     size in the early grades may use its funds to make further 
     reductions in grades kindergarten through 3 or other grades, 
     or carry out activities to improve teacher quality. A local 
     educational agency in which 10 percent or more of its 
     elementary teachers have not met applicable State and local 
     certification requirements (including certification through 
     State or local alternative routes), or if such requirements 
     have been waived, may use 100 percent of funds under this 
     program for the purpose of helping those teachers become 
     certified or to help teachers who lack sufficient content 
     knowledge to teach effectively in the areas they teach to 
     obtain that knowledge. A local educational agency must notify 
     the State educational agency of the percentage of funds it 
     will use for these purposes.
       A local educational agency that receives an award under 
     this section that is less than the starting salary for a new 
     teacher may use these funds to help pay the salary of a 
     teacher or pay for professional development activities to 
     ensure that all the instructional staff are fully qualified.
       To improve accountability, the conference agreement 
     maintains language included as part of last year's 
     appropriations law requiring that each State and local 
     educational agency receiving funds publicly report to parents 
     on their progress in reducing class size and in increasing 
     the percentage of classes in core academic areas taught by 
     fully qualified teachers, and on the impact that such 
     activities have had on increasing student academic 
     achievement. Parents, upon request, will also have the right 
     to know the professional qualifications of their children's 
     teachers.
       The conference agreement requires the Secretary of 
     Education to inform local educational agencies of the 
     additional flexibility provided to local educational agencies 
     in which more than 10 percent of their teachers are not fully 
     qualified to spend all of these funds on professional 
     development activities. The conferees also intend that the 
     Secretary notify local educational agencies of the 
     flexibility provisions already incorporated into the class 
     size reduction initiative, including the ability of local 
     educational agencies to use up to 25 percent of local 
     educational agency allocations on professional development 
     activities; to spend funds on professional development for 
     existing teachers if the local educational agency receives an 
     award that is less than the starting salary for a new fully 
     qualified teacher; and to spend funds to reduce class sizes 
     in other grades or to improve teacher quality if the local 
     educational agency has already reduced class sizes in the 
     early grades to 18 or fewer children.
     School renovation
       The conference agreement includes $1,200,000,000 for grants 
     to local educational agencies for emergency school renovation 
     and repair activities; activities under part B of the 
     Individuals with Disabilities Education Act (IDEA); and 
     technology activities. The House bill provided no funding for 
     this activity. The Senate bill provided $3,100,000,000 for 
     activities to improve teacher quality, reduce class size, 
     renovate school facilities and to carry out activities under 
     title VI of the Elementary and Secondary Education Act of 
     1965.
       The conference agreement provides $75,000,000 of the 
     $1,200,000,000 for formula grants to local educational 
     agencies with at least 50 percent of their student population 
     living on Native American or Native Alaskan lands. These 
     funds may be used for school renovations and repairs, as well 
     as new construction activities, which may include 
     construction of new facilities for specialized programs such 
     as vocational-technical education and the installation of 
     plumbing, sewage and electrical systems. For some of the 
     schools in these local educational agencies, new construction 
     may represent a more prudent use of resources than the repair 
     or renovation of existing structures.
       The conference agreement provides $3,250,000 of the 
     $1,200,000,000 for grants to local educational agencies in 
     outlying areas for the renovation and repair of high-need 
     schools.
       The conference agreement provides $25,000,000 for a new 
     Charter Schools Facilities Financing Demonstration Program 
     authorized as subpart 2 of part C of title X of the 
     Elementary and Secondary Education Act (ESEA). Charter 
     schools are break-the-mold public schools that are free of 
     bureaucratic red tape, and accountable for academic results. 
     Many of these innovative schools receive no assistance from 
     their states for capital financing expenses, or at best, only 
     a modest amount of assistance for capital expenses. 
     Furthermore, in most states, charter schools do not have 
     bonding authority or a tax base for capital financing.
       The Charter School Facilities Financing Demonstration 
     Program would establish a credit enhancement demonstration 
     program for the acquisition, renovation, or construction of 
     public charter schools. Non-profit private entities 
     (including those that benefit Native Alaskans), public 
     entities, or consortia of the two entities would compete for 
     one-time grants to be used to establish reserve funds to 
     leverage private capital. For example, the reserve funds 
     could be used for activities such as guaranteeing bonds, 
     notes, or leases; encouraging private lending; or 
     facilitating the issuance of bonds. The conferees intend that 
     the Secretary of Education widely disseminate information 
     gleaned from these demonstration efforts with a view toward 
     these demonstrations serving as models for replication in 
     states with charter schools.
       The conference agreement provides that the remaining funds 
     ($1,096,750,000) would be distributed to State educational 
     agencies based on the title I, part A allocations under the 
     Elementary and Secondary Education Act, with a small state 
     minimum of one half of one percent. After allowing for not 
     more than one percent set aside at the state level for 
     administrative expenses, the State educational agency or 
     other entity with jurisdiction over school facilities 
     financing, as the case may be, would distribute 75 percent of 
     the state's funds to local educational agencies through 
     competitive grants for emergency school repair and renovation 
     activities.
       The state educational agency or other responsible entity 
     would ensure, through a competitive grant process, that high 
     poverty local educational agencies receive, in the aggregate, 
     shares of the state allocation of Federal emergency repair 
     and renovation funds that are proportionate to their share of 
     the state allocation of title I, part A funds. For the 
     purposes of this program high poverty school districts are 
     considered to be those with 30 percent or greater child 
     poverty or 10,000 or greater poor children. The state 
     educational agency or entity would also ensure that rural 
     local educational agencies receive, in the aggregate, shares 
     of the state allocation of Federal emergency repair and 
     renovation funds that are proportionate to their share of 
     title I, part A funds. Each state shall determine which local 
     educational agencies within the state qualify as rural for 
     the purposes of this program.
       Those local educational agencies eligible to compete for an 
     emergency repair and renovation grant either because of their 
     high poverty status or their rural status, but who do not 
     actually receive a grant, may be considered for a grant from 
     the remaining funds for repair and renovation activities. 
     Additionally, local educational agencies not eligible to 
     receive a grant because of their lack of high poverty or 
     rural status may be considered for a grant from the remaining 
     repair and renovation funds.
       These funds may be used by local educational agencies to 
     meet the requirements of federal mandates such as the 
     Americans with Disabilities Act, Section 504 of the 
     Rehabilitation Act, and asbestos abatement requirements. 
     Funds may also be used for the renovation, acquisition, and 
     repair of charter schools and for emergency renovations or 
     repairs to public school facilities to ensure the health and 
     safety of students and staff (repairing, replacing, or 
     installing roofs, electrical wiring, plumbing systems, or 
     sewage systems; repairing, replacing, or installing heating, 
     ventilation, or air conditioning systems, including 
     insulation; and bringing schools into compliance with fire 
     and safety codes).
       The conference agreement clarifies that public charter 
     schools that are considered to be a local educational agency 
     under state law are eligible to compete for renovation and 
     repair funds from the state in the same manner as local 
     educational agencies. In addition, public charter schools 
     that are not considered to be a local educational agency are 
     eligible to receive assistance, in the same manner as a 
     public school, from a local educational agency that is 
     awarded a grant under this section.
       The conference agreement provides for the equitable 
     participation of non-profit, private elementary and secondary 
     schools in repair and renovation activities. The eligible 
     non-profit, private elementary and secondary schools would be 
     limited to those schools with a child poverty rate of 40 
     percent or greater. Private school participation, in general, 
     would be controlled by section 6402 of the Elementary and 
     Secondary Education Act (ESEA), which provides for the 
     equitable participation of children enrolled in non-profit 
     private elementary and secondary schools in the title VI 
     block grant program of ESEA. This provision would allow these 
     schools to receive the following services: (1) modifications 
     of private school facilities in order to meet the standards 
     under the Americans with Disabilities Act; (2) modifications 
     of private school facilities to meet the standards under 
     Section 504 of the Rehabilitation

[[Page 26722]]

     Act; and (3) asbestos abatement or removal from such school 
     facilities.
       The conference agreement includes a prohibition on using 
     federal emergency repair and renovation funds to supplant 
     state and local funds available for repair and renovation. 
     However, federal funds used for compliance with the Americans 
     with Disabilities Act and Section 504 of the Rehabilitation 
     Act would not be subject to a supplement, not supplant 
     requirement. While schools are required to make facilities 
     modifications to ensure accessibility and should have already 
     made these modifications, it is most important that these 
     modifications be made. Minimizing the restrictions placed 
     upon federal funds for these purposes can help ensure that 
     school buildings become accessible to disabled individuals.
       The conference agreement also provides for flexibility in 
     the use of funds by local educational agencies. State 
     educational agencies would distribute 25 percent of the funds 
     they receive to local educational agencies through a 
     competitive grant process for activities under part B of 
     IDEA, technology activities, or both IDEA and technology 
     activities. State educational agencies would base the grant 
     awards for IDEA activities upon the need of a local 
     educational agency for additional funds due to substantially 
     high costs associated with serving a child with a disability; 
     the costs of special education and related services, 
     including transportation as needed to assist a child with a 
     disability to benefit from special education; the costs of 
     assistive technology devices and services, and the costs 
     associated with helping children with disabilities progress 
     toward state performance goals and indicators. State 
     educational agencies would base the technology grant awards 
     upon the need of a local educational agency for additional 
     funds for technology activities carried out in connection 
     with school repair and renovation, including wiring; 
     acquiring hardware and software; acquiring connectivity 
     linkages and resources; and acquiring microwave, fiber 
     optics, cable, and satellite transmission equipment.
       Under the conference agreement, local educational agencies 
     choose whether to apply for an IDEA grant, a technology 
     grant, or both categories of grants. Local educational 
     agencies that receive competitive grants for activities 
     authorized under part B of IDEA would be required to use the 
     grant funds in compliance with the provisions of that part. 
     This requirement includes providing for the participation of 
     private school children eligible for IDEA services. 
     Technology activities would be for technology activities 
     carried out in connection with school repair and renovation 
     and include wiring; acquiring hardware and software; 
     acquiring connectivity linkages and resources; and acquiring 
     microwave, fiber optics, cable, and satellite transmission 
     equipment.
     Safe and drug free schools
       The conference agreement includes $644,250,000 for the Safe 
     and Drug Free Schools and Communities Act instead of the 
     $599,250,000 as proposed by the House and $642,000,000 as 
     proposed by the Senate.
       Included within this amount is $439,250,000 for state 
     grants as proposed by the House and $447,000,000 as proposed 
     by the Senate.
       The agreement also includes $155,000,000 for national 
     programs instead of $145,000,000 as proposed by the Senate 
     and $110,000,000 as proposed by the House. Within this 
     amount, the conferees include $117,000,000 to support the 
     Safe Schools/Healthy Students initiative. Within the funds 
     for national programs, the agreement also provides 
     $10,000,000 to remain available until expended for Project 
     School Emergency Response to Violence to provide services to 
     local educational agencies in which the learning environment 
     has been disrupted due to a violent or traumatic crisis.
     Reading is fundamental
       For the Reading is Fundamental program, the conference 
     agreement provides $23,000,000 as proposed by the Senate 
     instead of $21,000,000 as proposed by the House.
     Arts in education
       For Arts in Education, the conference agreement includes 
     $28,000,000 instead of $16,500,000 as proposed by the House 
     and $18,000,000 as proposed by the Senate. The conferees 
     provide that within this total, $6,500,000 is for VSA arts, 
     $5,500,000 is for the John F. Kennedy Center for the 
     Performing Arts, $2,000,000 is to be used to continue a youth 
     violence prevention initiative, and $10,000,000 is to be used 
     for the Secretary to make grants to school districts, state 
     educational agencies, institutions of higher education and/or 
     state and local non-profit arts organizations for activities 
     authorized under subpart 1 of the Arts in Education program, 
     particularly for supporting model projects and programs that 
     integrate arts education into the regular elementary and 
     secondary school curriculum and that provide for the 
     development of model preservice and inservice professional 
     development programs for arts educators and other 
     instructional staff. In addition, $2,000,000 is for model 
     professional development programs for music educators and 
     $2,000,000 is for activities authorized under subpart 2 of 
     the Arts in Education program.
     Education for homeless children and youth
       The conference agreement includes $35,000,000 for Education 
     for Homeless Children and Youth instead of $32,000,000 as 
     proposed by the House and $31,700,000 as proposed by the 
     Senate.
     Education of Native Hawaiians
       The conference agreement includes $28,000,000 for the 
     Education of Native Hawaiians as proposed by the Senate 
     instead of $23,000,000 as proposed by the House. When making 
     awards for this program, the Department should provide: 
     $6,500,000 for curricula development, teacher training, and 
     recruitment programs, including native language 
     revitalization (for which the conferees encourage priority to 
     be given to the University of Hawaii at Hilo Native Language 
     College), aquaculture, prisoner education initiatives, waste 
     management, computer literacy, big island astronomy, and 
     indigenous health programs; $1,600,000 for community-based 
     learning centers; $3,200,000 for the native Hawaiian higher 
     education program; $500,000 for the native Hawaiian education 
     councils; and $10,900,000 for family based education centers, 
     including early childhood education for native Hawaiian 
     children. If the Department proposes to provide 10% less than 
     the stated amounts for any activity within this program, it 
     must notify the House and Senate Committees on Appropriations 
     at least 90 days prior to the end of the fiscal year.
     Alaska Native educational equity
       The conference agreement includes $15,000,000 for the 
     Alaska Native Educational Equity program as proposed by the 
     Senate instead of $13,000,000 as proposed by the House. From 
     the increase in funds provided over the fiscal year 2000 
     level, $1,000,000 shall be for the Alaska Humanities Forum 
     for operation of the Rose student exchange program and 
     $1,000,000 shall be for the Alaska Native Heritage Center for 
     support of its cultural education programs.
     Charter schools
       The conference agreement includes $190,000,000 for Charter 
     Schools instead of $175,000,000 as proposed by the House and 
     $210,000,000 as proposed by the Senate.


                           READING EXCELLENCE

       The conference agreement includes $286,000,000 for 
     activities authorized under the Reading Excellence Act as 
     proposed by the Senate instead of $260,000,000 as proposed by 
     the House. The agreement provides $91,000,000 in fiscal year 
     2001 and $195,000,000 in fiscal year 2002 funding for this 
     account.


                            INDIAN EDUCATION

       The conference agreement includes $115,500,000 for Indian 
     Education as proposed by the Senate instead of $107,765,000 
     as proposed by the House.


                   BILINGUAL AND IMMIGRANT EDUCATION

       The conference agreement includes $460,000,000 for 
     Bilingual and Immigrant Education programs instead of 
     $406,000,000 as proposed by the House and $443,000,000 as 
     proposed by the Senate.
       For instructional services, the conference agreement 
     includes $180,000,000 as proposed by the Senate instead of 
     $162,500,000 as proposed by the House. For support services, 
     the agreement provides $16,000,000 instead of $14,000,000 as 
     proposed by both the House and the Senate. For professional 
     development, the conference agreement includes $100,000,000 
     instead of $85,000,000 as proposed by the Senate and 
     $71,500,000 as proposed by the House. For immigrant 
     education, the conference agreement includes $150,000,000 as 
     proposed by both the House and the Senate. The agreement also 
     provides $14,000,000 for foreign language assistance as 
     proposed by the Senate instead of $8,000,000 as proposed by 
     the House.

                           Special Education

       The conference agreement includes $7,439,948,000 for 
     Special Education instead of $7,353,141,000 as proposed by 
     the Senate and $6,550,161,000 as proposed by the House. The 
     agreement provides $2,367,948,000 in fiscal year 2001 and 
     $5,072,000,000 in fiscal year 2002 funding for this account.
       Included in these funds is $6,339,685,000 for Grants to 
     States part B instead of $6,279,685,000 as proposed by the 
     Senate and $5,489,685,000 as proposed by the House. This 
     funding level provides an additional $1,350,000,000 to assist 
     the States in meeting the additional per pupil costs of 
     services to special education students.
       The conference agreement includes $383,567,000 for Grants 
     for Infants and Families as proposed by the Senate instead of 
     $375,000,000 as proposed by the House.
       The conference agreement includes $49,200,000 for state 
     program improvement grants instead of $45,200,000 as proposed 
     by the House and $35,200,000 as proposed by the Senate. The 
     agreement includes $77,353,000 for research and innovation 
     instead of $64,433,000 as proposed by the House and 
     $74,433,000 as proposed by the Senate. Within the amounts 
     provided for Special Education Research and Innovation, the 
     conference agreement includes $7,353,000 for the following:
       $921,000 for the University of Louisville Research 
     Foundation, Louisville, KY for research in pediatric sleep 
     disorders and learning disabilities;
       $461,000 for the University of Northern Iowa, Cedar Falls, 
     IA, National Institute of Technology for Inclusive Education 
     for expanded outreach efforts;

[[Page 26723]]

       $1,421,000 for the Salt Lake City Organizing Committee or 
     to a governmental agency or a not-for-profit organization 
     designated by the Salt Lake City Organizing Committee for the 
     2002 Paralympic Games;
       $1,600,000 to the National Easter Seals Society for 
     providing training, technical support, services and equipment 
     through the Early Childhood Development Project in the 
     Mississippi Delta Region;
       $1,000,000 for the University of Northern Colorado's 
     National Center for Low Incidence Disabilities in Greeley, 
     Colorado to demonstrate innovative and effective approaches 
     to teaching special education students;
       $500,000 for the Baird Center in Burlington, Vermont for a 
     national demonstration to educate students with serious 
     emotional and behavioral problems;
       $750,000 for the Center for Literacy and Assessment at the 
     University of Southern Mississippi to increase its research 
     dissemination, teacher and parent training, development of 
     replicable models for reading assessment and intervention;
       $250,000 for the Hebrew Academy for Special Children in 
     Parksville, New York to continue its demonstration program to 
     enhance the academic and social outcomes of developmentally 
     disabled children; and
       $450,000 for Parents, Inc. in Alaska to train teachers and 
     specialists in the use of technology to support service 
     delivery to children with disabilities in rural Alaska.
       The conference agreement includes $53,481,000 for technical 
     assistance and dissemination instead of $45,481,000 proposed 
     by both the House and the Senate. The agreement also includes 
     $26,000,000 for parent information centers as proposed by the 
     Senate instead of $22,000,000 as proposed by the House.
       Included in the agreement is $37,210,000 for technology and 
     media services instead of $36,410,000 as proposed by the 
     House and $35,323,000 as proposed by the Senate. The 
     agreement includes $9,500,000 for Recordings for the Blind 
     and Dyslexic for the purposes described in both the House and 
     Senate reports.
       The agreement also includes $1,500,000 for Public 
     Telecommunications Information and Training Dissemination as 
     proposed by the Senate. The House bill did not contain funds 
     for this activity.


            REHABILITATION SERVICES AND DISABILITY RESEARCH

       The conference agreement includes $2,805,339,000 for 
     Rehabilitation Services and Disability Research instead of 
     $2,776,803,000 as proposed by the House and $2,799,519,000 as 
     proposed by the Senate.
       The conference agreement includes $11,647,000 for client 
     assistance state grants instead of $10,928,000 as proposed by 
     the House and $11,147,000 as proposed by the Senate. The 
     agreement also includes $21,092,000 for demonstration and 
     training programs instead of $16,492,000 as proposed by the 
     House and $21,672,000 as proposed by the Senate.
       The conference agreement includes $2,350,000 for migrant 
     and seasonal farmworkers as proposed by the House instead of 
     $2,850,000 as proposed by the Senate. The agreement also 
     includes $14,000,000 for Protection and Advocacy of 
     Individual Rights as proposed by the House instead of 
     $13,000,000 as proposed by the Senate.
       The conference agreement includes $20,000,000 for services 
     for older blind individuals as proposed by the Senate instead 
     of $18,000,000 as proposed by the House. The agreement also 
     includes $8,717,000 for the Helen Keller Center for Deaf/
     Blind as proposed by the Senate instead of $8,550,000 as 
     proposed by the House.
       The conference agreement includes $100,400,000 for the 
     National Institute for Disability and Rehabilitation Research 
     instead of $86,462,000 as proposed by the House and 
     $95,000,000 as proposed by the Senate. Within this amount, 
     the conference agreement includes $400,000 for the Cerebral 
     Palsy Foundation in Wichita, Kansas.
       The conference agreement includes $41,112,000 for Assistive 
     Technology as proposed by the Senate instead of $34,000,000 
     as proposed by the House. The conference agreement includes 
     language which overrides the authorizing statute to provide 
     $22,069,000 for State Assistive Technology projects, a total 
     of $2,680,000 for grants to protection and advocacy systems 
     (a minimum grant of $50,000 each) and $1,363,000 for 
     technical assistance activities to support States in 
     sustaining and strengthening their capacity to address the 
     assistive technology needs of individuals with disabilities. 
     This language was not included in either the House or Senate 
     bills.
       The agreement also retains language from the Senate bill 
     which changes the matching requirements and funding 
     provisions under title III of the Assistive Technology Act of 
     1998 in order to increase access to assistive technology for 
     individuals with disabilities. The House bill contained no 
     similar provision.
       Within the amounts provided for vocational rehabilitation 
     demonstration and training programs, the conference agreement 
     includes $4,600,000 for the following activities:
       $921,000 Krasnow Institute at George Mason University, 
     Fairfax, VA for continuation of learning disability research;
       $921,000 Center for Discovery, International Family 
     Institute, Sullivan County, NY for expansion of services to 
     disabled persons;
       $230,000 Alabama Institute for Deaf and Blind in Talladega, 
     AL for a demonstration grant for the National Community 
     College for Students with Sensory Impairments;
       $500,000 Muhlenberg College in Pennsylvania for a national 
     model program for teaching higher education students with 
     disabilities;
       $200,000 Lewis and Clark Community College in Godfrey, 
     Illinois to develop employment training services for persons 
     with disabilities;
       $425,000 The Imaginarium in Vestal, New York for treating 
     at risk, low income children with developmental disorders;
       $255,000 Eden Institute, Princeton, New Jersey for 
     community-based services to children and adults with autism;
       $595,000 American Foundation for the Blind's National 
     Literacy Center for the Visually Impaired, Atlanta, Georgia 
     to provide state-of-the-art teacher training in the use of 
     Braille, assistive and other technologies to improve literacy 
     instruction of visually impaired children and adults;
       $553,000 Illinois State Board of Education for an Assistive 
     Technology Exchange Program in Chicago, Illinois, to expand 
     services to individuals with disabilities.

           Special Institutions for Persons With Disabilities


                 American Printing House for the Blind

       The conference agreement includes $12,000,000 for American 
     Printing House for the Blind instead of $11,000,000 as 
     proposed by the House and $12,500,000 as proposed by the 
     Senate. This amount includes $800,000 for the American 
     Printing House's commitment to provide accessible textbooks 
     to students who are blind or visually impaired through its 
     innovative Accessible Textbook Initiative and Collaboration 
     Project.


               National Technical Institute for the Deaf

       The conference agreement includes $53,376,000 for the 
     National Technical Institute for the Deaf instead of 
     $54,000,000 as proposed by the House and $54,366,000 as 
     proposed by the Senate.
       The conferees direct the Department of Education to waive 
     any contribution requirement for construction costs related 
     to the dormitory renovation project.


                          Gallaudet University

       The conference agreement includes $89,400,000 for Gallaudet 
     University as proposed by the House instead of $87,650,000 as 
     proposed by the Senate.

                     Vocational and Adult Education

       The conference agreement includes $1,825,600,000 for 
     Vocational and Adult Education instead of $1,718,600,000 as 
     proposed by the House and $1,726,600,000 as proposed by the 
     Senate. The agreement provides $1,034,600,000 in fiscal year 
     2001 and $791,000,000 in fiscal year 2002 funding for this 
     account.
       The conference agreement includes $1,100,000,000 for 
     Vocational Education basic state grants as proposed by the 
     House instead of $1,071,000,000 as proposed by the Senate.
       The conference agreement includes $5,600,000 for Tribally 
     Controlled Postsecondary Vocational Institutions as proposed 
     by the Senate instead of $4,600,000 as proposed by the House.
       The conference agreement includes $17,500,000 for 
     vocational education national programs as proposed by the 
     House and the Senate. The agreement also includes $9,000,000 
     to continue the occupational and employment information 
     program as proposed by the Senate. The House bill did not 
     include funding for this activity.
       The conference agreement includes $5,000,000 for the tech-
     prep education demonstration authorized under section 207 of 
     the Perkins Act. The agreement also includes $22,000,000 for 
     State Grants for Incarcerated Youth as proposed by the 
     Senate. The House did not provide funding for these 
     activities.
       The conferees encourage the Department to give full and 
     fair consideration to proposals from county probation 
     departments collaborating with community-based organizations 
     established to address the educational and employment needs 
     of ex-offenders.
       The conference agreement includes $540,000,000 for adult 
     education state grants instead of $470,000,000 proposed by 
     both the House and the Senate. Within this amount, 
     $70,000,000 is to be set aside for integrated English 
     literacy and civics education services to new immigrants. 
     Sixty-five percent of these funds will be allocated on the 
     basis of a state's absolute need for services and thirty-five 
     percent will be allocated on the basis of a state's recent 
     growth in need for services. Each state is guaranteed a 
     minimum grant of $60,000. For the purposes of allocating 
     funds to States for these services, the conferees intend that 
     the Department of Education use the most current data 
     available from the Immigration and Naturalization Service of 
     the Department of Justice to determine the number of 
     immigrants admitted for legal permanent residence for each 
     fiscal year. The House bill provided $25,500,000 for civics 
     education services to

[[Page 26724]]

     new immigrants. The Senate bill contained no similar 
     provision.

                      Student Financial Assistance

       The conference agreement includes $10,674,000,000 for 
     Student Financial Assistance instead of $10,150,000,000 as 
     proposed by the House and $10,639,000,000 as proposed by the 
     Senate. The agreement sets the maximum Pell Grant at $3,750 
     instead of $3,650 as proposed by the Senate and $3,500 as 
     proposed by the House. The agreement provides $8,756,000,000 
     for current law Pell Grants.
       The conference agreement includes $60,000,000 for Perkins 
     Loan cancellations instead of $40,000,000 as proposed by the 
     House and $75,000,000 as proposed by the Senate. The 
     agreement also includes $55,000,000 for Leveraging 
     Educational Assistance Partnerships (LEAP) as proposed by the 
     Senate. The House bill did not provide funding for this 
     program.
       The conference agreement also includes $1,000,000 for the 
     loan forgiveness for child care providers program, instead of 
     $10,000,000 provided in the Senate bill. The House bill did 
     not include any funding for this program. The conferees are 
     aware of the significant need for and benefits of high 
     quality child care services, and for that reason, have 
     included start up funding for this program. Limited funding 
     has been provided in fiscal year 2001 solely due to the fact 
     that few individuals will meet the eligibility requirements. 
     The conferees expect the Secretary to be prepared to discuss 
     the estimated number of eligible borrowers and amounts 
     eligible to be forgiven at the fiscal year 2002 
     appropriations hearings to help make certain that sufficient 
     funding is available for this program. In addition, the 
     conferees direct the Department to ensure that information 
     about the availability and benefits of this program is 
     provided to all potentially eligible borrowers.
       The conferees encourage the Department of Education, on all 
     existing and future web sites and publications where higher 
     education financial aid information is provided, to fairly 
     and accurately provide information with respect to the 
     availability of loans through both the Federal Family 
     Education Loan (FFEL) program and the Federal Direct Loan 
     Program.
       The conferees support continuing funding for work colleges, 
     authorized in section 448 of the Higher Education Act of 
     1965. These funds help support comprehensive work-service-
     learning programs around the Nation. Of the funds provided, 
     the conference agreement includes $4,000,000 to continue and 
     expand the work colleges program.
       The conferees are aware of concerns in the higher education 
     community about the so-called ``12-hour rule'' and its 
     unsuitability to address the needs of institutions of higher 
     education throughout the nation that serve non-traditional 
     students engaged in lifelong learning. The conferees are 
     concerned about the potential for enormous paperwork burdens 
     being placed on institutions of higher education in their 
     attempts to comply with the 12-hour rule. The conferees 
     understand that the Department of Education has agreed to 
     meet with the higher education community about this issue. 
     The conferees strongly encourage the Department to include 
     all interested parties in this discussion, including those 
     involved in efforts to assure the integrity of Federal 
     student financial aid programs. The Department is requested 
     to report the results of the discussions and any anticipated 
     action on the part of the Department with respect to the 12-
     hour rule to the relevant Congressional committees by March 
     31, 2001. By October 1, 2001, the Department is to make 
     recommendations to the relevant congressional committees 
     regarding the most appropriate means to maintain the 
     integrity of Federal student assistance programs without 
     creating unnecessary paperwork for institutions of higher 
     education.

                            Higher Education

       The conference agreement includes $1,911,710,000 for Higher 
     Education instead of $1,688,081,000 as proposed by the House 
     and $1,704,520,000 as proposed by the Senate.
       The conference agreement includes $73,000,000 for 
     strengthening institutions as proposed by the House instead 
     of $65,000,000 as proposed by the Senate. The agreement also 
     includes $68,500,000 for Hispanic Serving Institutions as 
     proposed by the House instead of $62,500,000 as proposed by 
     the Senate.
       The conference agreement includes $185,000,000 for 
     Strengthening Historically Black Colleges and Universities as 
     proposed by the House instead of $169,000,000 as proposed by 
     the Senate.
       The conference agreement includes $45,000,000 for 
     Historically Black Graduate Institutions as proposed by the 
     House instead of $40,000,000 as proposed by the Senate.
       The conference agreement includes $6,000,000 for Alaska and 
     Native Hawaiian Institutions as proposed by the Senate 
     instead of $5,000,000 as proposed by the House.
       The conference agreement includes $15,000,000 for 
     Strengthening Tribal Colleges as proposed by the Senate 
     instead of $12,000,000 as proposed by the House. Of this 
     amount, $5,000,000 shall be used for construction and 
     renovation projects at tribally controlled colleges and 
     universities.
       The conference agreement includes $146,687,000 for the Fund 
     for the Improvement of Postsecondary Education instead of 
     $31,200,000 as proposed by the House and $51,247,000 as 
     proposed by the Senate. Within the amounts provided for the 
     Fund for the Improvement of Postsecondary Education, the 
     conference agreement includes $115,487,000 for the following:
       $277,000 Calhoun Community College, Decatur, AL for 
     technology enhancements;
       $921,000 Jefferson State Community College, Birmingham, AL 
     for technology enhancements and supporting infrastructure;
       $138,000 Wayne State College, Wayne, NE for development of 
     a family business center;
       $2,721,000 University of Nebraska-Lincoln, in Lincoln, NE 
     for the Nebraska Center for Information Technology Education;
       $691,000 Wayne State College, Wayne, NE for a computer 
     initiative and improvement of technological infrastructure;
       $461,000 Laredo Community College, Laredo, TX for 
     instructional equipment;
       $147,000 Spring Hill College, Mobile, AL for Regional 
     Library Resource Center development;
       $2,482,000 Western Governor's University, Salt Lake City, 
     UT for distance-learning programs;
       $369,000 Macon State College, Macon, GA for technology 
     development;
       $369,000 Middle Georgia College, Cochran, GA for distance 
     learning programs;
       $976,000 University of Virginia, Charlottesville, VA Center 
     for Government Studies for the Youth Leadership Initiative;
       $737,000 City University, Bellevue, WA for distance 
     learning;
       $921,000 Southeast Missouri State University, Cape 
     Girardeau, MO for equipment and curriculum development 
     associated with the University's Polytechnic Institute;
       $369,000 Millikin University, Decatur, IL for community 
     outreach and experiential education programs;
       $921,000 Illinois State University at Normal, IL for the 
     Center for Special Education Technology;
       $369,000 Mankato State University, Mankato, MN for a 
     wireless campus initiative;
       $369,000 Winona State University, MN for technology 
     enhancements;
       $461,000 Montana State University, Bozeman, MT for 
     Educational Technology Leadership Institute;
       $461,000 Western Montana College of the University of 
     Montana in Dillon, MT for the Rural Education Technology 
     Center;
       $921,000 Wittenberg University, Springfield, OH for 
     technology improvements;
       $921,000 California State University, Long Beach in Long 
     Beach, CA for Technology-Enhanced Learning Project;
       $1,843,000 Elmira College, Elmira, NY for a Technology 
     Enhancement Initiative;
       $921,000 University of Arkansas, Fayetteville, AR for the 
     Social Work Research Center;
       $4,564,000 The Oklahoma Regents for Higher Education, 
     Oklahoma City, OK for an educational telecommunications and 
     information network utilizing facilities being made available 
     in Ponca City, OK;
       $461,000 William Tyndale College, Farmington Hills, 
     Michigan for Interactive learning center for the 21st 
     Century;
       $980,000 John Carroll University, University Heights, OH 
     for operations and equipment related to the Center for 
     Mathematics and Science Education, Teaching, and Technology;
       $1,713,000 San Bernardino Community College District to 
     support the expansion of distance education telecourse 
     broadcasting, including the purchase of equipment;
       $207,000 Office of Global Business & Entrepreneurship, 
     Gordon Ford College of Business, Bowling Green, KY for 
     technology;
       $461,000 Northwestern State University, Natchitoches, LA 
     for Technological Infrastructure Improvements;
       $1,068,000 University of Colorado at Boulder, Boulder, CO 
     for the ATLAS (Alliance for Technology, Learning and Society) 
     Project for technology-enhanced learning;
       $921,000 Fort Hays State University, Center for Networked 
     Learning, Hays, KS for information technology;
       $1,704,000 Ocean Institute, Dana Point, CA for the Ocean 
     Education Center;
       $553,000 National Latino Research Center, California State 
     University San Marcos, San Marcos, CA for training and 
     research regarding Hispanic populations in the U.S.;
       $880,000 The Philadelphia University, Philadelphia, PA for 
     the Center for Education Technology;
       $1,152,000 DePaul University, Chicago, IL for training and 
     infrastructure improvement;
       $829,000 Barat College, Lake Forest, IL for the Center for 
     Teacher Learning;
       $949,000 University of Arizona College of Medicine for the 
     Integrative Medicine Distance Learning Program;
       $691,000 Kansas State University, Manhattan, KS for Great 
     Plains Network Connectivity;
       $230,000 Kansas Technology Center, Pittsburg State 
     University, Pittsburg, KS for manufacturing education;
       $461,000 Indiana Institute of Tech, Ft. Wayne, IN for 
     technology enhancements;
       $921,000 Central Florida Community College, Ocala, FL for 
     academic programming;
       $1,382,000 Southeastern Louisiana University, Hammond, LA 
     for the Alternate Teacher Certification Technology Program;

[[Page 26725]]

       $921,000 University of Tennessee, Chattanooga Challenger 
     Center, Chattanooga, TN for programmatic educational 
     activities;
       $921,000 State Board of Career and Technology Education, 
     Oklahoma Department of Career and Technology Education, 
     Stillwater, OK for a Rural Education Virtual Tech Job 
     Training System pilot program;
       $322,000 Center for International Trade Development at 
     Oklahoma State University, Stillwater, OK for higher 
     education international studies;
       $1,843,000 Delaware County Community College, Media, PA for 
     technology infrastructure;
       $1,106,000 Shenandoah University, Winchester, VA for a 
     technology education program;
       $2,499,000 University of Hawaii at Manoa for a joint 
     project with the University of South Florida, the University 
     of California at Los Angeles, CA and George Washington 
     University for the Globalization Network program;
       $884,000 University of Idaho College of Engineering at 
     Boise to enhance computing and modeling capabilities;
       $1,843,000 Heidelberg College, Tiffin, Ohio for science 
     education and research, including laboratory and computer 
     equipment;
       $4,146,000 Northern Illinois Center for Accelerator and 
     Detector Development at Northern Illinois University, DeKalb, 
     IL for equipment and operations;
       $921,000 University of Redlands, Redlands, CA for computer 
     technology and networking;
       $276,000 New York Medical College for curriculum 
     development;
       $1,705,000 Minnesota State Colleges and Universities, St. 
     Paul, MN for development of an e-monitoring environment;
       $92,000 La Sierra University in Riverside, CA for 
     educational equipment;
       $980,000 University of Alabama, Tuscaloosa, AL for the 
     Child Development Research Center;
       $700,000 Center for the Advancement of Distance Education 
     in Rural America (CADERA) in New Mexico;
       $400,000 Crime Victim Law Institute at the Northwestern 
     School of Law, Lewis & Clark College in Portland, Oregon to 
     continue the study and enhancement of the role of victims in 
     the criminal justice system;
       $200,000 Urban Learning Center in Covington, Kentucky to 
     expand education and student support programs that prepare 
     economically disadvantaged individuals for post-secondary 
     education;
       $500,000 Washington and Lee University in Lexington, 
     Virginia for the Shepherd Program for the Study of Poverty;
       $900,000 University of Idaho in Moscow Interactive Learning 
     Environments initiative designed to develop and improve 
     Internet-based delivery of education programs;
       $1,000,000 Huntingdon College in Montgomery, Alabama to 
     assist in the development of a program to enhance effective 
     integration of computer technology in math and science 
     instruction;
       $900,000 Eastern New Mexico University-Roswell to expand 
     its aviation maintenance technology program;
       $1,300,000 University of Alabama in Tuscaloosa, Alabama to 
     upgrade computer equipment and software in its Mathematics 
     Learning Center for enhancement of undergraduate mathematics 
     and science instruction and education;
       $1,020,000 Northwestern Michigan College in Traverse City, 
     Michigan to enhance programmatic operations of the Great 
     Lakes Water Research Center through teacher education, course 
     development, and equipment acquisition;
       $250,000 Pittsburgh Digital Greenhouse in Pennsylvania for 
     continuing education programs;
       $300,000 Oregon Graduate Institute in Portland, Oregon for 
     the creation of Environmental Information Technology 
     certificate and graduate degree programs;
       $750,000 University of Louisville in Kentucky for 
     infrastructure needs to support access to postsecondary 
     education for nontraditional students through its 
     Metropolitan Scholars Program;
       $500,000 Northern Kentucky University to expand educational 
     opportunities for nontraditional students through its 
     Metropolitan Education and Training Service program;
       $625,000 College of Technology at Montana State University-
     Great Falls to establish a dental hygiene education program;
       $300,000 Cleveland State University in Ohio for equipment 
     acquisition and technology enhancements that support 
     innovative educational programming;
       $1,800,000 Galena School District in Alaska for a 
     collaboration with the University of Southeast Alaska for 
     occupation-based curriculum development and implementation;
       $300,000 Southern Oregon University in Ashland, Oregon to 
     continue efforts to research and pilot a comprehensive 
     program for preventing alcohol and drug abuse among college 
     students;
       $1,000,000 Castleton State College in Castleton, Vermont to 
     establish the Robert T. Stafford Center for the Support and 
     Study of the Community and to establish an endowment for the 
     Robert T. Stafford Center;
       $1,000,000 Southeast Pennsylvania Consortium for Higher 
     Education for faculty development, teacher training and 
     community outreach;
       $800,000 University of Alaska to continue the Alaska 
     Distance Education Consortium;
       $900,000 College of William and Mary in Williamsburg, 
     Virginia to collaborate with Colonial Williamsburg in the 
     development of the Institute of American History and 
     Democracy;
       $350,000 Lehigh University in Pennsylvania for the 
     Integrated Product, Project, and Process Development 
     initiative;
       $400,000 Lewis and Clark College in Portland, Oregon for 
     the Life of the Mind education initiative designed to explore 
     and celebrate the 200th anniversaries of the Louisiana 
     Purchase and Lewis and Clark expedition;
       $750,000 Galena School District in Alaska to develop 
     alternative education programs;
       $250,000 Pittsburgh Tissue Engineering Institute in 
     Pennsylvania for educational programs;
       $200,000 Chippewa Valley Technical College for technology 
     upgrades related to the training of health professionals;
       $1,275,000 Portland State University in Portland, Oregon 
     for the creation of a national Tribal Government Institute to 
     provide academic and professional development opportunities 
     for elected tribal leaders and governments;
       $500,000 College of Rural Alaska-Interior Aleutians campus 
     to collaborate with the Galena School District for an 
     innovative technology transfer program;
       $300,000 Rutgers University in Newark, New Jersey for the 
     Community Law program;
       $200,000 Minot State University for the Rural 
     Communications Disability Program;
       $250,000 North Dakota State University for the Tech-Based 
     Industry Traineeship program;
       $175,000 North Dakota State University to develop an 
     academic program in electronic commerce;
       $800,000 Suomi College in Hancock, Michigan for educational 
     operations;
       $6,000,000 University of Tennessee to establish the Howard 
     Baker School of Government;
       $1,000,000 University of Charleston in West Virginia for 
     collaborative efforts with the Clay Center for the Arts and 
     Sciences;
       $800,000 Urban College of Boston in Massachusetts to 
     support higher education programs serving low-income and 
     minority students;
       $300,000 Western New Mexico University to improve 
     educational access and opportunity through educational 
     technology;
       $6,000,000 Pennsylvania State University to establish the 
     William F. Goodling Institute for Research in Family Literacy 
     and to establish an endowment fund for the William F. 
     Goodling Institute for Research in Family Literacy;
       $1,000,000 Southern Illinois University Public Policy 
     Institute in Carbondale, IL for the endowment for the Paul 
     Simon Chair;
       $230,000 Florida Gulf Coast University in Ft. Myers, FL for 
     curriculum development to support the Center for 
     Environmental Research and Preservation and Campus Ecosystem 
     Model;
       $900,000 Oklahoma State University for the Exercises in 
     Hard Choices program;
       $850,000 Jackson State University in Jackson, Mississippi, 
     to establish a Minority Center of Excellence for Math & 
     Science Teacher Preparation;
       $300,000 Assumption College in Worcester, Mass. for 
     technology infrastructure and planning for expanded science 
     facilities;
       $300,000 Boston College to develop technology 
     infrastructure to implement a science education program;
       $85,000 Loyola University, Illinois, for a program to 
     provide summer research opportunities for minority students;
       $85,000 Pace University, White Plains, New York, to support 
     a center for advanced technology;
       $90,000 Wausau Health Foundation in Wausau, Wisconsin to 
     support the development and implementation of a cardiac 
     nursing certification program;
       $85,000 Foothills Technical Institute, Security, Arkansas, 
     to expand technical training and education programs for rural 
     residents;
       $106,000 Gateway Community College in Connecticut for 
     faculty technology training and technology equipment 
     upgrades;
       $170,000 Florida State University in Tallahassee, Florida, 
     for a distance learning program;
       $213,000 World Learning School of International Training, 
     Brattleboro, Vermont, for educational technology programs;
       $213,000 Mercy College, Dobbs Ferry, New York, for 
     multicultural, interdisciplinary curricula reform;
       $1,225,000 Association of Jesuit Colleges and Universities 
     to establish the National Center for Competency-based 
     Distance Learning;
       $255,000 East Los Angeles College, South Gate, California, 
     for South Gate Education Center technology upgrades;
       $298,000 Canisius College in Buffalo, New York, to support 
     education technology enhancements including the purchase of 
     equipment;
       $298,000 D'Youville College, Buffalo, New York, to support 
     education technology enhancements including the purchase of 
     equipment;

[[Page 26726]]

       $298,000 Niagara University in Lewiston, New York, to 
     support education technology enhancements including the 
     purchase of equipment;
       $298,000 Gogebic Community College, Ironwood, Michigan to 
     enhance teacher training in the use of technology in 
     classroom instruction;
       $340,000 Dean College, Franklin, Massachusetts for the 
     Institute for Students With Physical or Learning Impairments 
     to improve instructional and support services for students 
     with disabilities;
       $361,000 Lamar University in Beaumont, Texas to support the 
     planning and creation of the Lamar Institute of Technology 
     Center for Criminal Justice Education and Training;
       $383,000 Ivy Tech State College, Indianapolis, Indiana, for 
     technology enhancements at the Lawrence Township/Ft. Harrison 
     campus.;
       $425,000 Salve Regina University in Newport, Rhode Island 
     to support program and curriculum development associated with 
     the Pell Center for International Relations and Public 
     Policy, including the purchase of equipment;
       $425,000 University of San Francisco, San Francisco, 
     California for equipment and program development at the 
     Center for Economic Development;
       $425,000 Diablo Valley College, California, for a teacher 
     mentoring program to recruit high school and community 
     college students into teaching;
       $425,000 Kingsborough Community College, Brooklyn, New York 
     for technology equipment and upgrades;
       $468,000 Paul Quinn College Center for Education and 
     Technology to provide technology based services to students 
     and the community;
       $544,000 University of North Carolina at Charlotte for a 
     joint project with the Johnson C. Smith University, North 
     Carolina, for the Strategies for Success Program to increase 
     the number of minority students in graduate engineering 
     programs;
       $595,000 Columbia University, New York, for a joint project 
     with the Hostos Community College of the City University of 
     New York, New York, for a distance learning initiative to 
     train minority students in foreign policy disciplines;
       $638,000 University of Wisconsin in Milwaukee, Wisconsin 
     for the Urban Educator Corps Partnership initiative;
       $680,000 Wisconsin Indianhead Technical College, New 
     Richmond, Wisconsin, to provide technology training and for 
     technology infrastructure;
       $680,000 Cambria County Area Community College, Johnstown, 
     Pennsylvania, for a management information system;
       $723,000 Roxbury Community College, Roxbury, Massachusetts, 
     for new technology equipment and systems;
       $723,000 Lehman College at the City University of New York 
     in Bronx, New York, to support a professional development 
     initiative, including the purchase of equipment to support 
     these activities;
       $765,000 Carl Sandburg College Community Technology Center, 
     Galesburg, Illinois to support expanded access to information 
     technology and related services, including the purchase of 
     equipment;
       $808,000 Alabama A & M University Research Institute, 
     Huntsville, Alabama, for continuation of research activities 
     and operations;
       $808,000 Tougaloo College, Tougaloo, Mississippi to expand 
     science and math programs;
       $1,275,000 University of Kansas Center for Research, Inc. 
     for a biodiversity information technology initiative;
       $1,700,000 George Meany Center for Labor Studies in Silver 
     Spring, Maryland, to support program and curriculum 
     development associated with a National Center for Training 
     the High Skilled Workforce, including the purchase of 
     equipment;
       $2,550,000 University of Arkansas in Fayetteville to 
     establish academic and research programs for the Diane Blair 
     Center for the Study of Southern Politics and Society;
       $100,000 Neumann College, in Aston, Pennsylvania, for 
     curriculum design, teacher training and development, and 
     technology enhancements.
       The conference agreement includes $67,000,000 for 
     International Education domestic programs as proposed by the 
     House instead of $62,000,000 as proposed by the Senate.
       The conference agreement includes $730,000,000 for TRIO as 
     proposed by the House and $736,500,000 as proposed by the 
     Senate.
       The conference agreement includes $295,000,000 for the 
     Gaining Early Awareness and Readiness for Undergraduate 
     Programs (GEAR UP) instead of $200,000,000 as proposed by the 
     House and $225,000,000 as proposed by the Senate.
       The conference agreement includes $41,001,000 for Byrd 
     Scholarships as proposed by the Senate instead of $39,859,000 
     proposed by the House.
       The conference agreement includes $10,000,000 for the 
     Javits Fellowship program in school year 2002-2003. The 
     agreement also includes $31,000,000 for Graduate Assistance 
     in Areas of National Need instead of $33,000,000 as proposed 
     by the Senate. The agreement includes $30,000,000 for the 
     Learning Anytime Anywhere Partnerships as proposed by the 
     Senate instead of $10,000,000 as proposed by the House.
       The conference agreement includes $25,000,000 for Child 
     Care Access Means Parents in School instead of $15,000,000 as 
     proposed by the House and $10,000,000 as proposed by the 
     Senate.
       The conference agreement includes $1,750,000 for the 
     Underground Railroad Educational and Cultural Program as 
     proposed by the Senate. The House bill did not fund this 
     activity.
       The conference agreement also includes $4,000,000 for 
     Thurgood Marshall Scholarships and $1,000,000 for Olympic 
     Scholarships. Neither the House nor the Senate funded these 
     activities.
       The conferees recognize efforts of the University of South 
     Carolina's College of Education to develop and implement a 
     teacher training/teacher exchange program with their 
     counterparts in Brazil, Denmark, Hungary, and Thailand. The 
     conferees encourage the Secretary to support such efforts 
     that link postsecondary institutions on an international 
     basis to promote and improve teacher training and development 
     activities.


                           HOWARD UNIVERSITY

       The conference agreement includes $232,474,000 for Howard 
     University instead of $226,474,000 as proposed by the House 
     and $224,000,000 as proposed by the Senate.


         COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS (CHAFL)

       The conference agreement includes $762,000 for the College 
     Housing and Academic Facilities Loans administration instead 
     of $737,000 as proposed by both the House and the Senate.


 HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING, PROGRAM 
                                ACCOUNT

       The conference agreement includes $208,000 for the 
     Historically Black College and University Capital Financing 
     Program Account as proposed by the Senate instead of $207,000 
     as proposed by the House.


             EDUCATION RESEARCH, STATISTICS AND IMPROVEMENT

       The conference agreement includes $732,721,000 for 
     Education Research, Statistics and Improvement instead of the 
     $494,367,000 as proposed by the House and $506,519,000 as 
     proposed by the Senate.
       The conferees provide $120,567,000 for research instead of 
     $103,567,000 as proposed by the House and $113,567,000 as 
     proposed by the Senate. Within this total, $20,000,000 is 
     included for continuation of the interagency research 
     initiative and $7,000,000 is included to support a research 
     initiative on improving schooling for language-minority 
     students. This program would support an interagency effort 
     between the Department of Education and the National 
     Institute of Child Health and Human Development (NICHD) to 
     identify critical factors in the development of English-
     language literacy among students whose primary language is 
     Spanish.
       The conferees provide $80,000,000 for statistics instead of 
     $68,000,000 as proposed by the House and the Senate. Within 
     the increase provided, $2,000,000 is for a National Adult 
     Literacy Survey; $6,400,000 is for the Birth Cohort of the 
     Early Childhood Longitudinal Study to allow the Department to 
     follow cognitive, physical, and social development of young 
     children; $1,000,000 is for the Adult Literacy and Life 
     Skills study, an international comparative study of American 
     workforce literacy skills in the context of five other 
     nations; and $2,600,000 is for the Faculty Salary and Staff 
     Surveys which form part of the Institutional Postsecondary 
     Educational Data System and are used by many organizations to 
     conduct policy analysis on institutions of higher education.
       The conference agreement includes $65,000,000 for regional 
     educational labs as proposed by both the House and the 
     Senate. Consistent with House report 104-537, it is the 
     intent of the conferees that funds provided to the regional 
     educational laboratories shall not be conditioned on meeting 
     performance standards that compromise the priorities of the 
     regional governing boards of each of the individual 
     laboratories. Further, the conferees intend that regional 
     educational laboratory funds shall be obligated and 
     distributed on the same basis as the fiscal year 2000 
     allocations not later than January 31, 2001.
     Fund for the Improvement of Education
       For the fund for the improvement of education (FIE), the 
     conference agreement includes $349,354,000 instead of the 
     $145,000,000 as proposed by the House and $142,152,000 as 
     proposed by the Senate.
       The conference agreement includes $50,000,000 for 
     comprehensive school reform grants to school districts.
       The conference agreement includes $30,000,000 to be used 
     for the Elementary School Counseling Demonstration Program. 
     The agreement also includes $5,000,000 to provide grants to 
     enable schools to provide physical education and improve 
     physical fitness and $3,000,000 for activities to promote 
     consumer, economic, and personal finance education such as 
     saving, investing and entrepreneurial education.
       The conference agreement includes $5,000,000 to make awards 
     under section 10101

[[Page 26727]]

     of the Elementary and Secondary Education Act for a dropout 
     prevention demonstration project. These awards should be made 
     to implement innovative model programs that undertake 
     activities to provide support, enrichment and motivation to 
     students at risk of dropping out or that undertake activities 
     to raise standards and expectations for disadvantaged 
     students traditionally underserved in schools in order to 
     ensure school completion. The Secretary will make awards to 
     States or local educational agencies, working in 
     collaboration with institutions of higher education or other 
     public and private agencies, organizations or institutions. 
     Priority should be given to applicants serving the 
     communities with the highest dropout rates.
       The conferees recognize the need to promote the study of 
     American history in our nation's schools, and therefore, have 
     also included $50,000,000 for a new demonstration program 
     focusing on the instruction of American history in elementary 
     and secondary education. Under this program, the Secretary of 
     Education will award grants to local educational agencies 
     (LEAs), and in turn, the LEAs will make awards to schools 
     that are teaching American history as a separate subject 
     within school curricula (not as a part of a social studies 
     course). Grant awards are designed to augment the quality of 
     American history instruction and to provide professional 
     development activities and teacher education in the area of 
     American history.
       The conference agreement includes $5,000,000 for high 
     school reform state grants. Through this State grant program, 
     the Secretary of Education shall award three year grants, 
     through a peer review process, to State educational agencies. 
     State educational agencies will make available not less than 
     90 percent of the funds, on a competitive basis, to secondary 
     schools or consortia thereof to support programs, activities, 
     classes, and other services designed to assist secondary 
     school students in attaining State-established challenging 
     academic and technical skills proficiencies. Grants awarded 
     to secondary schools or consortia shall be used to carry out 
     the following activities: integration of academics with 
     technical skills courses; establishment of learning and 
     technical skills centers within secondary schools; and 
     programs that support and implement innovative strategies 
     such as independent study, school-based enterprises, and 
     project-based learning.
       The conference agreement includes funding under this 
     heading for an award to maintain and enhance the National 
     Teacher Recruitment Clearinghouse and for associated outreach 
     and technical assistance activities.
       The conferees are aware of a research-based program that 
     assesses a student's cognitive strengths and perceptual 
     abilities and designs an individualized plan of strengthening 
     them which has promise to improve students' reading levels, 
     grades, test scores and behavior, thereby reducing referrals 
     to special education.
       Within the amounts provided for the Fund for the 
     Improvement of Education, the conference agreement includes 
     $139,624,000 for the following:
       $921,000 Virginia Living Museum, Newport News, VA for an 
     educational program;
       $461,000 Giant Steps Illinois in Westmont, IL for 
     educational services;
       $1,000,000 San Diego Unified School District in CA for 
     ``The Blueprint for Student Success in a Standards-Based 
     System'';
       $544,000 Utica City School District, Utica, New York for an 
     English as a Second Language Program;
       $9,000 Jefferson Consolidated School District, Jefferson 
     New York for a summer school program;
       $461,000 Texas A&M International University, Laredo, TX for 
     the Reading Research Center;
       $184,000 Riverside Community College District, Riverside, 
     CA for general planning for a Center for Primary Education;
       $547,000 Riverside Community College District, Riverside, 
     CA for curriculum development and related costs for the 
     School for the Arts;
       $343,000 Louisiana Tech University, Ruston, LA for 
     ``Project Life'';
       $686,000 WestEd Eisenhower Regional Consortium for Science 
     and Mathematics, San Francisco, CA for 24 Challenge and 
     Jumping Levels Math;
       $507,000 George Mason University, Fairfax VA for Center for 
     Families and Schools programming;
       $275,000 Fairfax County Public Schools, Fairfax, VA for the 
     Teacher Leadership 2000 project in Annandale Terrace 
     Elementary School, Belvedere Elementary School, Glen Forest 
     Elementary School, Graham Road Elementary School, and 
     Parklawn Elementary School;
       $841,000 Institute for Student Achievement, New York, NY 
     for establishment of programs at Holmes Middle School, 
     Annandale High School and Falls Church High School in 
     Virginia;
       $929,000 Yosemite National Institute, Sausalito, CA for 
     science-based environmental education;
       $1,283,000 Indian River Community College, Fort Pierce, FL 
     for the Living Science Interactive Learning Model;
       $23,000 United Activities Unlimited Inc., Staten Island, NY 
     for tutoring and homework assistance;
       $28,000 Foundation for the Advancement of Autistic Persons 
     in Staten Island, NY for Eden II teacher retention program;
       $69,000 Community School District 31, Staten Island, NY for 
     textbook and library book purchases;
       $276,000 New Jersey Historical Society for ``Educating New 
     Jersey's Children in the Past'';
       $691,000 Mote Marine Laboratory, Sarasota, FL for 
     technology-based education programs;
       $921,000 Space Education Initiatives, Inc., Green Bay, WI 
     for professional development and technology programming;
       $3,430,000 The Board of Education of the City of Chicago/
     Chicago Public Schools, National Teaching Training Academy, 
     Chicago IL for the Consortium for the Advancement of 
     Teaching;
       $230,000 Fox Valley Illinois YMCA for the Teen Agenda 
     Program;
       $115,000 L.E.A.D.E.R.S. Program, Rochester Hills, MI for 
     teen leadership, character development, and role modeling 
     program;
       $806,000 Clark State Community College, Springfield OH and 
     Cuyahoga Community College, Cleveland, OH for the Early 
     Childhood Literacy Project;
       $369,000 Kids Voting USA, Tempe, AZ for educational 
     programming;
       $921,000,000 Rockford Public Schools--District 205, 
     Rockford, IL for strengthening of a magnet school program;
       $461,000 Carthage Central School District, Carthage, NY for 
     an academic intervention plan;
       $1,799,000 Reading Together USA Program at the University 
     of North Carolina at Greensboro for tutoring program 
     expansion;
       $691,000 National Center for Family Literacy, Louisville, 
     KY for family literacy practitioner training;
       $461,000 Center Unified School District, Antelope, CA for 
     training for literacy professionals;
       $497,000 San Juan Unified School District, Carmichael, CA 
     for a comprehensive literacy program;
       $921,000 San Joaquin Council of Governments, Stockton, CA 
     for the San Joaquin County Reads Program;
       $880,000 George C. Marshall Foundation, Lexington, VA for 
     character development through community service;
       $415,000 National Crime Prevention Council, Washington DC 
     for continuation of the National Youth Safety Corps;
       $921,000 Adler Planetarium and Astronomy Museum, Chicago, 
     IL for Cyber Space Technology Learning Center;
       $184,000 Northwestern University, Evanston, IL Institute 
     for Policy Research for the School Youth Development Program;
       $921,000 North Central Regional Educational Laboratory for 
     the North Central Alliance, Oak Brook, IL for Improving 
     Professional Development;
       $276,000 Midwest Young Artists, Highwood, IL for music 
     education programming;
       $230,000 Shimer College, Waukegan, IL for the Graduate 
     Program in the Foundations of Science;
       $92,000 Aptakisic Tripp Community Consolidated School 
     District #102 in IL for curriculum development;
       $1,843,000 Lake County Forest Preserve District in 
     Libertyville, IL for educational center programming;
       $345,000 Greater Columbus Chamber of Commerce, Columbus OH 
     for a Career Academy Program;
       $111,000 Mariposa County Unified School District, Mariposa 
     California for a teacher initiative;
       $350,000 Center for Advanced Research and Technology, 
     Clovis CA for educational programming;
       $921,000 Media Arts Center, Paintsville, KY for equipment 
     and educational program support;
       $921,000 University of West Florida, Pensacola, FL for 
     enhancing teacher performance in schools;
       $276,000 Southern Illinois University, Edwardsville, IL for 
     an urban quality teacher initiative;
       $921,000 Wichita Public Schools, Wichita, KS for special 
     education teaching reforms;
       $46,000 Beaver Local School District, Lisbon, OH for 
     educational programming;
       $46,000 Belmont-Harrison Vocational School District, St. 
     Clairsville, OH for educational programming;
       $46,000 Brooke High School, Wellsburg, WV for educational 
     programming;
       $46,000 Bridgeport Exempted Village School District, 
     Bridgeport, OH for educational programming;
       $46,000 Buckeye Local School District, Rayland, OH for 
     educational programming;
       $46,000 Columbiana County Career Center, Lisbon, OH for 
     educational programming;
       $46,000 East Liverpool School District, East Liverpool, OH 
     for educational programming;
       $46,000 Edison Local School District, Hammondsville, OH for 
     educational programming;
       $46,000 Hancock County Schools, New Cumberland, WV for 
     educational programming;
       $46,000 John D. Rockefeller Vocational Technical Center, 
     New Cumberland, WV for educational programming;

[[Page 26728]]

       $46,000 Indian Creek School District, Wintersville, OH for 
     educational programming;
       $46,000 Jefferson County Joint Vocational School, 
     Bloomingdale, OH for educational programming;
       $46,000 Martins Ferry School District, Martins Ferry, OH 
     for educational programming;
       $46,000--Midland School District, Midland, PA for 
     educational programming;
       $46,000--Southern Local School District, Salineville, OH 
     for educational programming;
       $46,000--South Side School District, Hookstown, PA for 
     educational programming;
       $46,000--Steubenville City Schools, Steubenville, OH for 
     educational programming;
       $46,000--Toronto School District, Toronto, OH for 
     educational programming;
       $46,000--Wellsville Local School District, Wellsville, OH 
     for educational programming;
       $46,000--Wheeling Park High School, Wheeling, WV for 
     educational programming;
       $921,000--Girard Community Committee Inc., for development 
     of the Girard Multigenerational Center in Girard, Ohio;
       $369,000--St. Tammany Parish, Louisiana School Board, 
     Covington, LA for teacher technology training;
       $92,000--Orleans Parish, LA District Attorney's Office, New 
     Orleans, LA for school based drug awareness education and 
     prevention program;
       $200,000--The ReadNet Foundation, New York, NY for 
     innovative learning solutions for the mentally handicapped;
       $480,000--Technological Research and Development Authority, 
     Titusville, FL for the Mathematics, Science & Technology 
     Teacher Education Program;
       $46,000--Kentucky Sheriff's Boys and Girls Club in 
     Gilbertsville KY for educational and outreach efforts for 
     children;
       $18,000--Oscar Cross Boys and Girls Club in Paducah KY for 
     technology improvements;
       $1,382,000--Paducah Community College for the Challenger 
     Learning Center, Paducah, KY for hands-on science, 
     mathematics and technology education;
       $461,000--Mississippi Writing/Thinking Institute, 
     Mississippi State University, Starkville, MS for improving 
     teaching and writing in K-12 schools throughout the state;
       $1,176,000--University of New Mexico, Albuquerque, NM for 
     the Math and Science Teacher Academy;
       $871,000--Florida Department of Education for School Net;
       $553,000--Galena School District, Galena Alaska for a 
     comprehensive vocational program;
       $230,000--California Drug Consultants, Moreno Valley CA for 
     educational learning aids and equipment for disabled and ill 
     children in the Riverside County region;
       $460,000--Daemen College in Amherst, NY for staffing costs, 
     supplies, equipment and computer needs for the Center for 
     Achievement in Science;
       $900,000--New Mexico Department of Education to continue to 
     fund student performance plans at 12 schools and for a model 
     school drop-out prevention program;
       $500,000--Western Village Academy in Oklahoma City, 
     Oklahoma in partnership with Integris Health, for literacy 
     programs and other educational enrichment activities;
       $800,000--National Science Center Foundation in Augusta, 
     Georgia to continue to develop computer based software Exit 
     Exam Review Materials for ESOL students;
       $9,000,000--Project GRAD-USA Inc. in Houston, Texas to 
     support expansion of the successful school reform program, 
     Project GRAD;
       $800,000--State of Alaska to continue reading literacy 
     programs for high school students;
       $300,000--Providence Public School District in Providence, 
     Rhode Island for comprehensive literacy training to ensure 
     that all students are reading at grade level;
       $2,000,000--Alaska Initiative for Community Engagement to 
     improve academic achievement of students and involve them in 
     their own communities;
       $500,000--Semos Unlimited, Inc., in New Mexico to complete 
     a comprehensive initiative for providing bilingual 
     educational and literacy programs;
       $850,000--Maine Center for Educational Services to 
     implement the Schools & Technology for Assessment & 
     Reflection program, a student performance data system for 
     planning and instructional purposes;
       $500,000--American Village in Montevallo, Alabama for an 
     innovative civics education initiative that provides students 
     with a better understanding of the Constitution and 
     foundation of American self-government;
       $500,000--Vermont Educational Leadership Alliance in 
     Montpelier, Vermont to address the shortage of school 
     leaders;
       $600,000--University of Northern Iowa to continue 
     developing a model demonstration program for early childhood 
     education of all students;
       $700,000--Utah State Office of Education to assist small 
     and geographically isolated schools through the Necessarily 
     Existent Small Schools Program;
       $2,500,000--State of Alaska to develop innovative teacher 
     recruitment and retention programs;
       $400,000--Albuquerque Public School System in New Mexico 
     for its Magnet High School for Math, Science and Technology;
       $400,000--University of Oklahoma's Institute for Practical 
     Robotics in Oklahoma City, Oklahoma to provide hands on 
     experiences in robotics by developing curricula and teacher 
     training programs to integrate robotics and computer 
     engineering with traditional math and science education;
       $300,000--Salt Lake Organizing Committee or to a 
     governmental agency or not-for profit organization designated 
     by the Salt Lake City Organizing Committee for a national 
     arts and education model initiative for the Winter Olympic 
     and Paralympic Games of 2002;
       $100,000--Museums & Universities Supporting Educational 
     Enrichment in Philadelphia, Pennsylvania for teacher training 
     and technology- and museum-based curriculum development;
       $105,000--Wilderness Technology Alliance in Bellevue, 
     Washington for educational reform activities designed as part 
     of its statewide demonstration program;
       $2,500,000--Sheldon-Jackson College Center for Life Long 
     Learning for teacher training and to address the shortage of 
     teachers in remote Alaskan villages;
       $1,000,000--Delta State University to improve access to and 
     the quality of education in the Mississippi Delta area of the 
     State of Mississippi;
       $250,000--Washington and Jefferson College Center for 
     Excellence in Teaching and Learning in Pennsylvania for a 
     comprehensive education initiative;
       $75,000--Northwest Missouri Regional Council of 
     Government's Access 2000 program for educational support 
     services including career planning, leadership development 
     and personal skill evaluation and improvement;
       $1,800,000--University of Missouri-St. Louis for the 
     Teacher Workforce Replenishment Program;
       $800,000--University of Rhode Island for the 2001 World 
     Scholar Athlete Games;
       $50,000--KidsPeace in Orefield, Pennsylvania for equipment 
     acquisition and educational services to support the 
     integration of health and educational programs developed for 
     at risk youth;
       $250,000--Iowa State University Center for Excellence in 
     Science and Mathematics Education to collaborate with local 
     school districts and other partners to increase the quality 
     of mathematics and science technology education for K-12 
     grade students;
       $400,000--Council of Chief State School Officers for 
     professional development and recognition activities related 
     to the Christa McAuliffe Foundation grant program;
       $375,000--Madison Station Elementary School in Madison, 
     Mississippi to begin a replicable, school-wide, arts based 
     curriculum;
       $250,000--Southeast Kansas Education Service Center in 
     Girard, KS to expand and replicate state-wide a school-based 
     mentoring effort that connects young people from grades K-12 
     with adult volunteers;
       $750,000--Keystone Central School District in Pennsylvania, 
     in collaboration with Lock Haven University, to develop a 
     model alternative school;
       $1,800,000--Vermont Department of Education to carry out 
     section 1002(f) of the Elementary and Secondary Education Act 
     of 1965;
       $100,000--Freedom Foundation at Valley Forge to develop 
     programs integrating citizenship education, leadership 
     development and literacy programs;
       $850,000--California School of Professional Psychology, in 
     cooperation with school districts in the San Diego, Los 
     Angeles, San Francisco and Fresno metropolitan areas for 
     model teacher training programs;
       $200,000--Regional Performing Arts Center in Philadelphia, 
     Pennsylvania for equipment acquisition in support of distance 
     learning programs arranged with area schools;
       $250,000--CAPE/PETE Net in Bethlehem, Pennsylvania for 
     distance learning technologies and educator training to 
     improve educational outcomes;
       $400,000--National Aviation Hall of Fame in Dayton, Ohio 
     for curriculum development, technology upgrades and 
     programmatic improvements to educational programs offered to 
     students;
       $290,000--Sunnyside School District in Washington for a 
     reading literacy program;
       $250,000--California Institute of the Arts in Valencia, 
     California for an urban distance learning program;
       $250,000--Philadelphia Pops educational outreach program, 
     Jazz in the Schools; $500,000--University of Northern Iowa 
     Center for Mathematics and Science Education to improve the 
     teaching of mathematics and science;
       $850,000--Southwest Texas State University Center for 
     School Improvement to develop innovative programs to address 
     specific K-12 challenges facing teachers and students;
       $850,000--University of Montana in Missoula, Montana to 
     facilitate a community- based statewide curriculum aimed at 
     preventing violence in schools;
       $20,000--Education, Social and Public Services Association 
     in Seattle, Washington to develop targeted communications 
     related to Washington learning standards;
       $850,000--ARC of East Central Iowa for a comprehensive 
     center in Cedar Rapids designed to meet the learning, medical 
     and day

[[Page 26729]]

     care needs of children and adolescents with disabilities;
       $250,000--American Visionary Art Museum in Baltimore, 
     Maryland for educational and outreach programs targeted to 
     underserved communities;
       $250,000--Philadelphia Zoo in Philadelphia, Pennsylvania to 
     create, develop and implement a high school science learning 
     program;
       $2,500,000--Big Brothers/Big Sisters of America to 
     strengthen and expand its school based mentoring program;
       $200,000--National Foundation for Teaching Entrepreneurship 
     for expansion of basic academic skill development and 
     entrepreneurship training programs for students in low income 
     areas;
       $250,000--Opera Company of Philadelphia for an integrated 
     arts education program;
       $9,000,000--Iowa Department of Education to continue a 
     demonstration of public school facilities;
       $750,000--Des Moines Independent School District in Iowa to 
     support the Smoother Sailing program;
       $1,000,000--Iowa Student Aid Commission for teacher 
     training, recruitment and support;
       $500,000--Iowa Child Institute located in Des Moines, IA 
     for planning and development of an innovative teacher 
     education and training center;
       $100,000--Cobbs Creek Community Environmental Education 
     Center in Philadelphia, Pennsylvania for teacher training, 
     research and equipment acquisition in support of 
     environmental education programs;
       $400,000--Southeastern Louisiana University to utilize 
     distance learning for the improvement of teacher training;
       $150,000--Rock School of Pennsylvania Ballet for innovative 
     arts education through after school and summer programs;
       $250,000--Flathead Valley Community College Montana TREK 
     Center to provide rural educators with professional 
     development opportunities through distance learning 
     technologies;
       $500,000--Hofstra University for a demonstration school 
     that integrates mathematics, science, technology and literacy 
     studies with the arts and cultural studies;
       $250,000--CityVest, a non-profit development corporation in 
     Pennsylvania, to collaborate with area school districts in 
     providing alternative education programs;
       $300,000--YMCA of America to expand drop out prevention, 
     mentoring and teen pregnancy prevention programs serving at-
     risk teens in Dallas, San Antonio and Houston;
       $250,000--American Film Institute for activities supporting 
     a media literacy pilot project undertaken in coordination 
     with the Los Angeles Unified School District;
       $2,000,000--Reach Out and Read program to expand literacy 
     and health awareness for at-risk families;
       $850,000--South Carolina Association of School 
     Administrators to facilitate and distribute the methodology 
     and pedagogy utilized by Blue Ribbon Schools;
       $50,000--Stillman College, Zelpha Wells Cultural Education 
     Center to continue to provide music education and music 
     instruction to minority and disadvantaged youth;
       $650,000--Georgia Project, Inc. in Dalton, Georgia to 
     assimilate Hispanic immigrant children into mainstream 
     curriculum;
       $100,000--West Virginia University in Morgantown for school 
     safety research;
       $1,000,000--Concord College in West Virginia for technical 
     skills training of new teachers;
       $900,000--New York Historical Society to collaborate with 
     area high schools in developing a technology-based program 
     designed to enhance teaching and learning;
       $400,000--Child and Family Development Education Center in 
     Albuquerque, New Mexico to better prepare students for school 
     success;
       $25,000--Freedom Theatre in Philadelphia, Pennsylvania for 
     performing arts training and mentoring programs for area 
     youth;
       $401,000--The National Mentoring Partnership in Washington 
     DC for establishing the National E-Mentoring Clearinghouse;
       $900,000--Florida Institute of Education in Tallahassee, 
     Florida for community-based early learning and professional 
     development hubs;
       $4,000,000--Carnegie Hall in New York, New York to 
     integrate distance learning and educational technology with 
     music education programs through the Isaac Stern Legacy 
     project;
       $200,000--Hispanic Education and Media Group for a Latino-
     Chicano high school dropout prevention program in San Jose, 
     CA;
       $276,000--The Academy of Natural Sciences in Philadelphia, 
     PA for continuation of the Science Enrichment Expansion 
     Curriculum program;
       $2,550,000--University of Notre Dame, Indiana, for the 
     Institute for Educational Initiatives research center for the 
     comparative analysis of best practices in public and private 
     elementary and secondary schools;
       $1,700,000--Challenger Learning Center of Northwest 
     Indiana, Inc., Hammond, Indiana, to expand science education 
     and teacher training programs;
       $1,275,000--For demonstration and evaluation of ``one-to-
     one'' computing in high-need school districts in Bridgeport 
     and New Haven, Connecticut; San Pablo, Fairfield, Bay Point, 
     and East Menlo Park, California; and Searchlight and 
     McDermitt, Nevada;
       $1,233,000--University of Maine, Orono, Maine, for the 
     development of curriculum for math and science teacher 
     education;
       $863,000--An Achievable Dream, Newport News, Virginia to 
     improve academic performance of at-risk youth;
       $1,250,000--Helen Keller Worldwide to expand the ChildSight 
     Vision Screening Program and provide eyeglasses to additional 
     children whose educational performance may be hindered 
     because of poor vision;
       $1,020,000--Sacramento City Unified School District, 
     California to establish the California Home Visiting Center 
     to train teachers and parents in order to improve student 
     learning;
       $935,000--Thornton Township High School District 205 to 
     support the Thornton Township Teaching and Learning 
     Partnership teacher training program;
       $850,000--Early Reading Success Institute in Connecticut to 
     broaden the training of professionals in best practices in 
     the delivery of reading instruction;
       $850,000--Olympic Park Institute in Olympic National Park, 
     Washington, to expand science education programs.;
       $850,000--The GRAMMY Foundation, Santa Monica, California, 
     for music education programs;
       $850,000--The Learning Collaborative Inc., Milford, 
     Connecticut, for the ``Pebbles Project'' to demonstrate 
     innovative technology to deliver educational services to 
     children medically unable to attend school;
       $744,000--Yale University Child Study Center, New Haven, 
     Connecticut, for a child-centered education pilot program;
       $723,000--Babyland Family Services, Newark, New Jersey for 
     technology training and extended learning opportunities for 
     students, parents and teachers;
       $723,000--Chicago Public School System, Illinois, for 
     teacher professional development and university partnerships 
     to support implementation of new magnet school programs;
       $723,000--DeKalb County School System in Georgia for a 
     comprehensive school violence prevention initiative;
       $723,000--East Hartford Public Schools, Connecticut, to 
     support program and professional development associated with 
     the international baccalaureate program, including equipment;
       $723,000--Sam Houston University, Huntsville, Texas to 
     establish a technical assistance center for after-school 
     programs;
       $723,000--Texas A & M University, Corpus Christi, Texas for 
     services to at-risk bilingual families and for a middle 
     school math and science center at the Early Childhood 
     Development Center;
       $723,000--University of Illinois, Chicago, Illinois for the 
     Project Impact Hispanic education initiative;
       $638,000--Miami-Dade County Public Schools, Miami, Florida 
     to establish career academies;
       $638,000--University of Missouri, St. Louis, School of 
     Education, for the Urban Educator Corps Partnership 
     initiative;
       $595,000--Rutgers University Law School to support a 
     scholarship fund, public interest activities, and its work 
     with the LEAP Academy Charter School, including the purchase 
     of books and equipment to support these activities;
       $700,000--Wisconsin Educational Partnership Initiative in 
     Chippewa Falls, Wisconsin for a professional development 
     initiative;
       $690,000--Washburn Public Schools, Washburn, Wisconsin, for 
     a pilot project designed to provide 6th grade students and 
     school faculty with access to technology, including laptop 
     computers, software, and home internet access, and to provide 
     expert curriculum development assistance to school faculty 
     members;
       $510,000--Dillard University, New Orleans, Louisiana, to 
     expand the William L. Gilbert Academy pre-college program for 
     high achieving low-income high school students;
       $510,000--Educational Performances Foundation CPI, Boston, 
     Massachusetts, for the continued development of the music 
     educational program called ``From the Top'';
       $510,000--West Windsor-Plainsboro Regional School District 
     in Mercer County, New Jersey, for the ``E=mc2'' teacher 
     training project;
       $489,000--University of Illinois at Chicago, Illinois, for 
     a joint project with the University of New Orleans, 
     Louisiana, for the Great Cities' University Coalition Urban 
     Educators Corps teacher training partnership;
       $422,000--Maryland State Department of Education to support 
     the Maryland Educational Opportunities Summer Program;
       $425,000--Alameda County Social Services Agency, Oakland, 
     California, to support an education and training program for 
     high school students;
       $425,000--Clark County School District, Las Vegas, Nevada 
     for a comprehensive bilingual education program;
       $425,000--Cleveland Botanical Garden, Cleveland, Ohio, to 
     expand educational curriculum, outreach and teacher training 
     programs;
       $425,000--Detroit Area Pre-College Engineering Program, 
     Inc., Detroit, Michigan, for engineering, science and math 
     instructional, Saturday and summer programs, teacher

[[Page 26730]]

     training, and parental engagement activities;
       $425,000--The Milton Eisenhower Foundation, Washington, DC 
     for a full-service community school demonstration project in 
     up to four locations;
       $425,000--Virginia Marine Science Museum Science Camp in 
     Virginia Beach, Virginia to expand educational programs and 
     outreach to schools;
       $361,000--Oakland Unified School District, California, for 
     a teacher professional development initiative to increase 
     student achievement in literacy, math and science;
       $340,000--Council of Chief State School Officers to support 
     the Arts Education Partnership to improve the awareness and 
     quality of arts in education;
       $340,000--Indiana University, Bloomington, Indiana, for the 
     Project TEAM minority recruitment program;
       $340,000--Smithsonian Institution for a jazz music 
     education program in Washington, DC;
       $340,000--Wildlife Conservation Society, Bronx New York, to 
     develop a distance learning education project for after 
     school programs;
       $298,000--Chicago Public School System, Illinois, to 
     provide vision screening, eye exams, and glasses for low-
     income students;
       $276,000--Chicago Public School System, Illinois, to expand 
     the Chicago Math, Science and Technology Academies;
       $266,000--City of Houston Public Library, Houston, Texas 
     for the ASPIRE after school program;
       $213,000--Future Leaders of America, Inc., Oxnard, 
     California, to provide leadership training and educational 
     experiences to talented youth;
       $213,000--Institute for Student Achievement, Manhasset, New 
     York to improve student learning outcomes without social 
     promotion;
       $191,000--Bremen Community High School District 228, in 
     Midlothian, Illinois, for a summer transition program for 
     incoming freshmen students;
       $191,000--Center for Community Transformation in Chicago, 
     Illinois to support student fellowships and ongoing secular 
     educational activities in community leadership and 
     transformation, including curriculum development;
       $170,000--``ScienceClass in a Box'' educational system, 
     Hoboken, New Jersey, to enhance science and math education in 
     disadvantaged school districts;
       $175,000--Merrill Area Public Schools in Merrill, 
     Wisconsin, to support activities designed to improve 
     educational outcomes for at-risk students;
       $149,000--Great Lakes Science Center, Cleveland, Ohio, to 
     establish interactive biomedical exhibitions and educational 
     programs to increase minority awareness of health careers;
       $128,000--Centro Latino de Educacion Popular in Los 
     Angeles, California, program to provide literacy training for 
     Hispanic children and adults;
       $128,000--City of Eugene, Oregon, for the development of 
     educational materials for a Wetland Environmental Education 
     Center;
       $94,000--Dallas Urban League, Inc., Dallas, Texas, to 
     expand technology and literacy training for low-income youth;
       $85,000--Los Angeles Free Net, Encino, California, to 
     provide free internet access to schools and libraries;
       $85,000--Pasadena Independent School District, Pasadena, 
     Texas, to support an early learning program focused on 
     reading, including to purchase equipment and supplies;
       $50,000--Stevens Point Area School District, Wisconsin for 
     an initiative to improve achievement among high school 
     students;
       $43,000--Santa Barbara County Education Office, California 
     for school violence prevention resource kits;
       $43,000--St. Vincent's Family Service Center, Kansas City, 
     Missouri, to implement a violence prevention curriculum 
     initiative;
       $50,000--Merrill Area Public Schools in Merrill, Wisconsin, 
     for an initiative to improve achievement among high school 
     students;
       $50,000--Superior School District, Superior, Wisconsin for 
     an initiative to improve achievement among high school 
     students;
       $38,000--T.R. Hoover Community Development Corporation in 
     Dallas, Texas, to provide technology training to children and 
     their families in South Dallas;
       $400,000--Chester Upland School District, Chester, PA, for 
     recruitment, preparation and retention of teachers and 
     teacher candidates;
       $100,000--Family Communications, Inc., in Pittsburgh, PA, 
     for the non-profit's Safe Havens Training Project which is 
     designed to train school personnel in preventing and 
     responding to acts of violence;
       $250,000--Northwest Regional Educational Laboratory in 
     Portland, OR for a reading tutor training program; and
       $230,000--University of Pennsylvania Health System in 
     Philadelphia, PA for development of a model high school 
     curriculum on genetics and ethics.
       For International Education, the conference agreement 
     includes $10,000,000 as proposed by the Senate, instead of 
     $7,000,000 as proposed by the House. The conferees support 
     strengthening and expanding international education exchange 
     programs to more students and teachers, expanding the early 
     elementary school program begun last year in Bosnia, and 
     pairing more American states with countries in the former 
     Soviet Union and Central and Eastern Europe. Within the 
     total, $1,200,000 is included for the civic education program 
     in Northern Ireland and the Republic of Ireland and efforts 
     in emerging democracies in developing countries.
       The conferees recognize the efforts of Strategies to 
     Accelerate Reading Success (STARS) in Las Vegas, NV where 
     students in low performing schools have shown marked 
     improvements in their reading and listening comprehension 
     skills. The conferees are also aware of the Great Films 
     Project Co., Inc. of New York and their ability to produce a 
     documentary that will provide an objective assessment of the 
     impact of Federal education programs on the education of our 
     Nation's youth.
       The conferees encourage the Secretary to consider funding a 
     study by the National Research Council of the National 
     Academy of Sciences which provides a balanced evaluation of 
     the consequences of high stakes testing, using data from a 
     representative sample of states and local educational 
     agencies. The evaluation may examine the consequences for 
     students in general, minority students and students with 
     limited English proficiency related to academic achievement, 
     dropout and retention rates, quality of instruction, and the 
     extent to which parents are informed about assessment results 
     and consequences.


                        departmental management

       The conference agreement includes $525,684,000 for 
     Departmental Management instead of $488,134,000 as proposed 
     by the House and $504,551,000 as proposed by the Senate. 
     Within this amount, the agreement provides $76,000,000 for 
     the Office of Civil Rights instead of $71,200,000 as proposed 
     by the House and $73,224,000 as proposed by the Senate. The 
     agreement also includes $36,500,000 for the Office of 
     Inspector General instead of $34,000,000 as proposed by the 
     House and $35,456,000 as proposed by the Senate. The 
     agreement includes $510,000 to continue the Inspector General 
     audit of the Department's Student Financial Assistance 
     financial statements.
       The conferees are supportive of the HEATH Clearinghouse 
     which provides technical assistance and support services to 
     disabled students and institutions of higher education. In 
     the last five years, the number of requests for information 
     increased from 30,000 per year to more than 75,000 per year. 
     The conferees encourage the Secretary to continue to support 
     the clearinghouse.

                           General Provisions


                           transfer authority

       The conference agreement includes language to provide 
     general transfer authority for the Departments and agencies 
     in this bill except for the Department of Education (ED). 
     This authority was first provided in fiscal year 1996 with 
     the understanding that the flexibility it provides can only 
     be carried out when proper financial management controls and 
     systems are in place. ED did not receive an unqualified 
     opinion on its financial statements for either fiscal year 
     1998 or 1999. The conferees recognize that ED is working to 
     rectify problems that have been identified, but for fiscal 
     year 2001 the conferees require a letter of reprogramming to 
     the House and Senate Appropriation Committees and a written 
     response from the Committees before any transfer of funds can 
     be made.
       The conferees reiterate that it is not the purpose of the 
     transfer authority to provide funding for new policy 
     proposals that can, and should, be included in subsequent 
     budget proposals. Absent the need to respond to emergencies 
     or unforeseen circumstances, this authority cannot be used 
     simply to increase funding for programs, projects or 
     activities because of disagreements over the funding level or 
     the difficulty or inconvenience with operating levels set by 
     the Congress.

                           TITLE I--TARGETING

       The conference agreement includes language proposed by the 
     Senate directing the Comptroller General to evaluate 
     targeting within the title I program. The House bill 
     contained no similar provisions.


            National Assessment Governing Board Date Change

       The conference agreement includes a provision that makes 
     the terms of service for National Assessment Governing Board 
     members four years.


                  Recalculation of Cohort Default Rate

       The conference agreement includes language changing the 
     process for appealing cohort default rate calculations so 
     that a school that misses the appeal deadline may retain 
     eligibility if a clear mistake was made in the data used to 
     calculate the rate.


             compensation parity for auditors and examiners

       The conference agreement includes an amendment to the 
     Higher Education Act of 1965 relating to compensation parity 
     for auditors and examiners.


                            tribal colleges

       The conference agreement includes an amendment to the Carl 
     D. Perkins Vocational and Technical Education Act of 1998

[[Page 26731]]

     relating to tribally controlled postsecondary vocational and 
     technical institutions.


                  security interests in student loans

       The conference agreement includes an amendment to the 
     Higher Education Act of 1965 relating to perfection of 
     security interests in student loans.


              historically black colleges and universities

       The conference agreement includes an amendment to the 
     Higher Education Act of 1965 relating to default rates.


                      national constitution center

       The conference agreement includes a provision which 
     provides $10,000,000 to the Secretary of Education to be 
     transferred to the Secretary of the Interior for an award to 
     the National Constitution Center to continue activities 
     authorized by P.L. 100-433.


                          character education

       The conference agreement includes a modification to the 
     Safe and Drug-Free Schools Act for the development and 
     implementation of character education programs.


                             waiver review

       The conference agreement includes a provision that directs 
     the Secretary to review the nursing program operated by 
     Graceland University in Iowa and specifies that the Secretary 
     may exercise waiver authority relating to this program.


             leveraging educational assistance partnerships

       The conference agreement includes an amendment to the 
     Higher Education Act of 1965 clarifying that funds provided 
     under the Special Leveraging Educational Assistance 
     Partnership Program may not be used for administrative 
     purposes and that matching funds must come from new sources 
     in order to leverage more state funding.


                        student support services

       The conference agreement includes an amendment to Part A of 
     title IV of the Higher Education Act of 1965 which allows 
     grantees receiving funding under the Student Support Services 
     program within TRIO to use part of these funds for direct 
     grant aid to needy students. A grant provided under this 
     provision may not exceed the maximum appropriated Pell Grant, 
     or be less than the minimum appropriated Pell Grant, for the 
     current academic year. Grantees using funds for this purpose 
     are required to match at least 33 percent of the funds used 
     for grant aid in cash from non-federal sources and may not 
     use more than 20 percent of their grant amount for direct 
     grant aid purposes.


                      student loans interest rate

       The conference agreement includes a provision that replaces 
     the interest rate formula for certain Parent Loans to 
     Students and Supplemental Loans for Students which used the 
     rates established by the auction of 52-week Treasury bills 
     for setting new interest rates each July 1st. Interest rates 
     for these loans will now be based on a new formula which uses 
     the weekly average of the one year constant maturity Treasury 
     yield, as published by the Board of Governors of the Federal 
     Reserve System, for the last calendar week ending on or 
     before June 26th preceding the July 1st effective date for 
     interest rate changes.


                          olympic scholarships

       The conference agreement includes an amendment to the 
     Higher Education Act of 1965 designating scholarships made 
     under the Olympic Scholarships program as ``B.J. Stupak 
     Olympic Scholarships.''


                           property transfer

       The conference agreement includes a provision that would 
     release a reversionary interest at San Francisco State 
     University.


                               impact aid

       The conference agreement includes an amendment to the 
     Elementary and Secondary Education Act of 1965, as amended, 
     relating to certain school districts eligible for the Impact 
     Aid program.

                       TITLE IV--RELATED AGENCIES

                      Armed Forces Retirement Home

       The conference agreement does not include an additional 
     advance appropriation for the Armed Forces Retirement Home as 
     proposed by the Senate. The House bill contained no similar 
     provision.


             cooperation for national and community service

        domestic volunteer service programs, operating expenses

       The conference agreement includes $303,850,000 for the 
     Domestic Volunteer Service programs instead of $294,527,000 
     as proposed by the House and $302,504,000 as proposed by the 
     Senate.
     Volunteers in Service to America (VISTA)
       The conference agreement includes $83,074,000 for VISTA as 
     proposed by the Senate instead of $80,574,000 as proposed by 
     the House.
     National Senior Volunteer Corps
       The conference agreement includes $98,868,000 for the 
     Foster Grandparent Program (FGP) instead of $95,988,000 as 
     proposed by the House and $97,500,000 as proposed by the 
     Senate. The agreement includes $40,395,000 for the Senior 
     Companion Program (SCP) instead of $39,219,000 as proposed by 
     the House and $40,219,000 as proposed by the Senate. The 
     agreement also includes $48,884,000 for the Retired Senior 
     Volunteer Program (RSVP) instead $46,117,000 as proposed by 
     the House and $48,117,000 as proposed by the Senate.
       One-third of the increases provided for the FGP, SCP, and 
     RSVP programs shall be used to fund Programs of National 
     Significance expansion grants to allow existing FGP, RSVP and 
     SCP programs to expand the number of volunteers serving in 
     areas of critical need as identified by Congress in the 
     Domestic Volunteer Service Act.
       Sufficient funding has been included to provide a 2 percent 
     increase for administrative costs realized by all current 
     grantees in the FGP and SCP programs, and a 4 percent 
     increase for administrative costs realized by all current 
     grantees in the RSVP program. Funds remaining above these 
     amounts should be used to begin new FGP, RSVP and SCP 
     programs in geographic areas currently unserved. The 
     conferees expect these projects to be awarded via a 
     nationwide competition among potential community-based 
     sponsors.
       The Corporation for National and Community Service shall 
     comply with the directive that use of funding increases in 
     the Foster Grandparent Program, Retired and Senior Volunteer 
     Program and VISTA not be restricted to America Reads 
     activities. The conferees further direct that the Corporation 
     shall not stipulate a minimum or maximum amount for PNS grant 
     augmentations.
       The conference agreement includes $400,000 for senior 
     demonstration activities as proposed by the House instead of 
     $1,494,000 as proposed by the Senate. These funds are to be 
     used to carry out evaluations and to provide recruitment, 
     training, and technical assistance to local projects as 
     described in the budget request. No new demonstration 
     projects may be begun with these funds. None of the increases 
     provided for FGP, SCP, or RSVP in fiscal year 2001 may be 
     used for demonstration activities. The conferees further 
     expect that all future demonstration activities will be 
     funded through allocations made through Part E of the 
     Domestic Volunteer Service Act.
       Funds appropriated for fiscal year 2001 may not be used to 
     implement or support service collaboration agreements or any 
     other changes in the administration and/or governance of 
     national service programs prior to passage of a bill by the 
     authorizing committees of jurisdiction specifying such 
     changes.
     Program Administration
       The conference agreement includes $32,229,000 for program 
     administration of DVSA programs at the Corporation as 
     proposed by the House instead of $32,100,000 as proposed by 
     the Senate. Funding should be used for the new core financial 
     management system and to make other technology enhancements 
     that will improve customer service and field communications.


                  corporation for public broadcasting

       The conference agreement includes language proposed by the 
     Senate providing an additional $20,000,000 for 
     digitalization, if specifically authorized by subsequent 
     legislation. The House bill contained no similar provision.


               federal mediation and conciliation service

       The conference agreement includes $38,200,000 for the 
     Federal Mediation and Conciliation Service as proposed by the 
     Senate instead of $37,500,000 as proposed by the House.


            federal mine safety and health review commission

       The conference agreement includes $6,320,000 for the 
     Federal Mine Safety and Health Review Commission as proposed 
     by the Senate instead of $6,200,000 as proposed by the House.


                institute of museum and library services

       The conference agreement includes $207,219,000 for the 
     Institute of Museum and Library Services instead of 
     $170,000,000 as proposed by the House and $168,000,000 as 
     proposed by the Senate. Within the amounts provided, the 
     conference agreement includes $39,219,000 for the following:
       $921,000 The Mariners' Museum, Newport News, VA for library 
     archival and educational programming;
       $461,000 DuPage County Children's Museum in Naperville, IL 
     for educational programming;
       $369,000 National Baseball Hall of Fame Library, 
     Cooperstown New York for library improvements;
       $92,000 City of Corona, Riverside, CA for library 
     technology improvements;
       $6,000 City of Murrieta Public Library, Murrieta, CA for 
     technology improvements
       $1,382,000 Sierra Madre Public Library, Sierra Madre, CA 
     for technology improvements;
       $23,000 Brooklyn Public Library, Brooklyn, NY for library 
     materials;
       $46,000 NY Public Library Staten Island branch for book and 
     archive enhancement;
       $266,000 Edward H. Nabb Research Center for Delmarva 
     History and Culture at Salisbury State University, Salisbury, 
     MD for a history laboratory project;
       $461,000 Texas Tech University, Lubbock TX for the Virtual 
     Vietnam Archive Project;

[[Page 26732]]

       $230,000 City of Ontario Public Library, Ontario, CA for 
     technology improvements;
       $461,000 Southern Oregon University, Ashland, OR for 
     technology enhancements to the library's Government Documents 
     Collection;
       $1,106,000 Christopher Newport University, Newport News, VA 
     for upgrade of Information Technology Center;
       $2,600,000 Southeast Missouri State University River Campus 
     and Museum to restore the historic former St. Vincent 
     Seminary for museum programs;
       $900,000 Heritage Harbor Museum in Providence, Rhode Island 
     for cataloging of materials and operations;
       $700,000 Institute for the Historic Study of Jazz at the 
     University of Idaho for the cataloguing, digitalization, 
     development of an on-line database, and preservation of 
     archival materials which it owns;
       $1,800,000 Franklin Pierce College Life Center to serve as 
     a library for the rural southwest region of New Hampshire;
       $500,000 Louisville Zoo for the Diane Fossey Mountain 
     Gorilla program;
       $150,000 Oregon Historical Society Permanent Exhibition;
       $250,000 Pittsburgh Children's Museum;
       $510,000 Temple University Library for digitalization of 
     resources from its Urban History ad African-American 
     collections;
       $576,000 Franklin Institute for the Design of Life 
     exhibition;
       $925,000 Please Touch Museum in Philadelphia, Pennsylvania;
       $500,000 Alaska Native Heritage Center portion of the New 
     Trade Winds project;
       $1,000,000 National Museum of Women in the Arts in 
     Washington D.C.;
       $1,200,000 Mississippi River Museum and Discovery Center in 
     Dubuque, Iowa for exhibit and library enhancement;
       $650,000 Salisbury House Foundation in Des Moines, Iowa to 
     improve security and preservation of its collection;
       $150,000 Linn County, Iowa Historical Museum History Center 
     in support of the ``This Old Digital City'' project;
       $4,000,000 Newsline for the Blind to expand services for 
     the blind to libraries across the country including $100,000 
     for the West Virginia Newsline for the Blind and $100,000 for 
     the Iowa Newsline for the Blind;
       $1,000,000 Clay Center for the Arts and Sciences for a 
     multimedia display screen, and the fabrication and design of 
     a science exhibit;
       650,000 Bishops Museum in Hawaii as part of the ``New Trade 
     Winds'' project;
       $500,000 Wisconsin Maritime Museum for interactive 
     exhibits;
       $250,000 Natural History Museum of Los Angeles to continue 
     outreach and educational activities;
       $400,000 Perkins Geology Museum at the University of 
     Vermont to digitalize its collection
       $400,000 Walt Whitman Cultural Arts Center in Camden, New 
     Jersey to expand cultural education programs;
       $400,000 Plainfield Public Library in Plainfield, New 
     Jersey to upgrade and expand computer and internet services;
       $150,000 Ducktown Arts District in Atlantic City, New 
     Jersey to expand access to cultural arts programs;
       $400,000 Lake Champlain Science Center for exhibits and 
     programs;
       $250,000 Foundation for the Arts, Music, and Entertainment 
     of Shreveport-Bossier, Inc.;
       $100,000 Bryant College in Rhode Island for a technology 
     initiative linking libraries of institutions of higher 
     education;
       $120,000 Fenton Historical Museum of Jamestown, New York;
       $461,000 Abraham Lincoln Bicentennial Commission;
       $43,000 Sumter County Library, Sumter, South Carolina for 
     the acquisition of library materials;
       $85,000 New York Botanical Garden, Bronx, New York, to 
     expand access to plant specimen database;
       $128,000 Nassau County Museum of Art in Roslyn Harbor, New 
     York, to expand educational programs for elementary and 
     secondary students;
       $128,000 Roberson Museum and Science Center in Binghampton, 
     New York for an educational science and engineering pilot 
     program;
       $128,000 North Carolina Museum of Life and Science for 
     development of BioQuest exhibits;
       $170,000 George Eastman House in Rochester, New York, to 
     digitally archive and catalog photographic collections;
       $213,000 Fitchburg Art Museum in Fitchburg, Massachusetts 
     to expand public access through technology upgrades;
       $298,000 Columbia College, Chicago, Center for Black Music 
     Research in Chicago, Illinois, for education and outreach 
     activities;
       $298,000 Mystic Seaport, the Museum of America and the Sea, 
     in Connecticut, to develop an informal learning laboratory;
       $468,000 City of Houston Public Library, Houston, Texas, 
     for information technology development and equipment;
       $410,000 AE Seaman Mineral Museum in Houghton, Michigan;
       $680,000 AMISTAD Research Center at Tulane University in 
     New Orleans, Louisiana to expand automation, electronic 
     communications, educational outreach and community 
     involvement activities;
       $723,000 New Bedford Whaling Museum in Massachusetts for 
     exhibits, technology upgrades and to expand public access;
       $723,000 The George C. Page Museum, Los Angeles, California 
     to expand education and outreach programs;
       $850,000 The Children's Museum of Los Angeles, California, 
     for development of exhibits, educational programs and teacher 
     training;
       $850,000 Berman Museum of Art of Ursinus College, 
     Collegeville, Pennsylvania for expansion of an arts education 
     program and community outreach activities;
       $2,125,000 Silas Bronson Library in Waterbury, Connecticut 
     for information technology equipment and upgrades;
       $2,435,000 New York Public Library for the development of a 
     digital archive at the Schomburg Center for Research in Black 
     Culture to document African American migration;
       $425,000 National Aviary in Pittsburgh, Pennsylvania, in 
     collaboration with Carnegie Mellon University, to develop and 
     utilize interactive mobile robots in support of distance 
     learning;
       $723,000 Old Sturbridge Village, Sturbridge, Massachusetts 
     for the development of a distance learning project.

                  Medicare Payment Advisory Commission

       The conference agreement provides $8,000,000 for the 
     Medicare Payment Advisory Commission (MedPAC), the same as 
     both the House and the Senate. A documented national shortage 
     of geriatricians, physicians who specialize in the management 
     of care for frail, older persons, exists. The shortage has 
     occurred, in part, because of inadequate Medicare 
     reimbursement and physician training payment restrictions. 
     For this reason, MedPAC should study the issue, reporting 
     specifically on how the hospital specific cap on residents 
     for purposes of Medicare graduate medical education payments 
     impacts geriatric training programs and providing 
     recommendations regarding how to alter the cap to resolve 
     this problem.

        National Commission on Libraries and Information Science

       The conference agreement includes $1,495,000 for the 
     National Commission on Libraries and Information Science as 
     proposed by the Senate instead of $1,400,000 as proposed by 
     the House.

                     National Council on Disability

       The conference agreement includes $2,615,000 for the 
     National Council on Disability as proposed by the Senate 
     instead of $2,450,000 as proposed by the House.

                     National Education Goals Panel

       The conference agreement includes $1,500,000 for the 
     National Education Goals Panel instead of $2,350,000 as 
     proposed by the Senate. The House bill did not propose 
     funding for this agency.

                     National Labor Relations Board

       The conference agreement includes $216,438,000 for the 
     National Labor Relations Board as proposed by the Senate 
     instead of $205,717,000 as proposed by the House.

                        National Mediation Board

       The conference agreement includes $10,400,000 for the 
     National Mediation Board as proposed by the Senate instead of 
     $9,800,000 as proposed by the House.

            Occupational Safety and Health Review Commission

       The conference agreement includes $8,720,000 for the 
     Occupational Safety and Health Review Commission as proposed 
     by the Senate instead of $8,600,000 as proposed by the House.

                       Railroad Retirement Board


                      LIMITATION ON ADMINISTRATION

       The conference agreement includes a limitation on transfers 
     from the railroad trust funds of $95,000,000 for 
     administrative expenses as proposed by the House instead of 
     $92,500,000 as proposed by the Senate.


                      OFFICE OF INSPECTOR GENERAL

       The conference agreement includes a limitation on transfers 
     from the railroad trust funds of $5,700,000 for 
     administrative expenses of the Office of Inspector General as 
     proposed by the Senate instead of $5,380,000 as proposed by 
     the House.

                     Social Security Administration


                  SUPPLEMENTAL SECURITY INCOME PROGRAM

       The conference agreement includes $23,344,000,000 for the 
     Supplemental Security Income Program instead of 
     $23,354,000,000 as proposed by the Senate and $23,127,000,000 
     as proposed by the House.


                 LIMITATION ON ADMINISTRATIVE EXPENSES

       The conference agreement includes a limitation of 
     $7,124,000,000 on transfers from the Social Security and 
     Medicare trust funds and Supplemental Security Income program 
     for administrative activities instead of $6,978,036,000 as 
     proposed by the House and $7,010,800,000 as proposed by the 
     Senate.
       The conference agreement includes language proposed by the 
     House clarifying that the Social Security Administration may 
     use unexpended funds for investment in information technology 
     and telecommunications hardware and software infrastructure, 
     including related equipment and non-payroll expenses 
     associated solely with information

[[Page 26733]]

     technology and telecommunications technology. The agreement 
     also includes language proposed by the House that requires 
     the Secretary of the Treasury to reimburse the Trust Fund 
     from the General Fund for the cost of official time for 
     federal employees and facilities and support services for 
     labor organizations. The Senate bill contained no similar 
     provisions.


                      OFFICE OF INSPECTOR GENERAL

       The conference agreement includes $69,444,000 for the 
     Office of Inspector General through a combination of general 
     revenues and limitations on trust fund transfers as proposed 
     by the Senate instead of $65,752,000 as proposed by the 
     House.

                    United States Institute of Peace

       The conference agreement includes $15,000,000 for the 
     United States Institute of Peace as proposed by the House 
     instead of $12,951,000 as proposed by the Senate. The 
     conferees direct the United States Institute of Peace to 
     provide information in the fiscal year 2002 Congressional 
     budget justification regarding the use of appropriated funds 
     in the Endowment. Included in this information should be the 
     total amount of appropriated funds transferred into the 
     Endowment from the most recent fiscal year available, the 
     total amount of interest earned in the fiscal year on those 
     funds, a list of all dates in which draw downs occur and 
     those amounts, and a beginning and end of year balance of the 
     Endowment.

                      TITLE V--GENERAL PROVISIONS


                    Distribution of Sterile Needles

       The conference agreement includes a provision proposed by 
     the House that prohibits the use of funds in this Act to 
     carry out any program of distributing sterile needles or 
     syringes for the hypodermic injection of any illegal drug. 
     The Senate bill contained a similar provision except that it 
     would have allowed for such a program if the Secretary of 
     Health and Human Services determines that these programs are 
     effective in preventing the spread of HIV and do not 
     encourage the use of illegal drugs.


                       Fifth Quarter Obligations

       The conference agreement does not include a provision 
     proposed by both the House and Senate to allow fiscal year 
     2000 unobligated balances for salaries and expenses to remain 
     available through the first quarter of fiscal year 2001.


          Restoring SSI Benefits Payments to Appropriate Year

       The conference agreement does not include a provision 
     proposed by the House to restore benefit payments for 
     Supplemental Security Income to the appropriate year. The 
     Senate bill contained no similar provision.


              Evaluation of Abstinence Education Programs

       The conference agreement includes a provision proposed by 
     the House to extend the funding available for evaluations of 
     abstinence education programs to 2005 and provides for an 
     interim report not later than January 1, 2002. The Senate 
     bill contained no similar provision.


             Temporary Assistance to Needy Families (TANF)

       The conference agreement does not include a provision 
     proposed by the Senate to reduce TANF supplemental grants in 
     fiscal year 2001. The House bill contained no similar 
     provision.


             Discretionary Advance Appropriation Reduction

       The conference agreement does not include a provision 
     proposed by the House to rescind funds from the Payments to 
     States for the Child Care and Development Block Grant if the 
     total level of discretionary advance appropriations for 
     fiscal year 2002 exceeds $23,500,000,000. The Senate bill 
     contained no similar provision.


                        Unique Health Identifier

       The conference agreement includes a provision proposed by 
     the Senate to prohibit the promulgation or adoption of any 
     final standard relating to a unique health identifier until 
     legislation is enacted specifically approving the standard. 
     The House bill contained a similar provision except it did 
     not provide for legislative action.


                      State Supplementary Payments

       The conference agreement includes language proposed by the 
     Senate that accelerates the effective date of current law 
     requiring a State that has entered into an agreement with the 
     Social Security Administration for Federal administration of 
     State supplementary payments be required to remit payments 
     and fees no later than the business day preceeding the SSI 
     payment from September, 2000 to September, 2001.


                Military Recruiting at Secondary Schools

       The conference agreement does not include a provision 
     proposed by the House preventing secondary schools from 
     prohibiting military recruitment. The Senate bill contained 
     no similar provision.


                         NIH License Agreements

       The conferees do not include a provision proposed by the 
     House regarding NIH license agreements. The Senate bill 
     contained no similar provision.


     Across-the-Board Administrative and Related Expenses Reduction

       The conference agreement includes a provision to reduce 
     administrative and related expenses of the Departments of 
     Labor, Health and Human Services, and Education by 
     $25,000,000.


      Emergency Contraception Distribution Through School Clinics

       The conference agreement does not include a provision 
     proposed by the Senate to prohibit the distribution of or 
     prescription for postcoital emergency contraception to an 
     unemancipated minor on the premises or in the facilities of 
     any elementary or secondary school. The House bill contained 
     no similar provision.


               Rights of Residents of Certain Facilities

       The conference agreement does not include a provision 
     proposed by the Senate to amend the Public Health Service Act 
     to add a new section titled ``Requirement Relating to the 
     Rights of Residents of Certain Facilities''. The House bill 
     contained no similar provision.


                Sense of the Senate on Early Head Start

       The conference agreement deletes without prejudice a Sense 
     of the Senate provision regarding blood lead screening tests 
     on children enrolled in early head start programs. The House 
     bill contained no similar provision.


       Sense of the Senate on a Study of Sexual Abuse in Schools

       The conference agreement deletes without prejudice a Sense 
     of the Senate provision regarding a study on the issue of 
     sexual abuse in schools. The House bill contained no similar 
     provision.


             GAO Study into Federal Fetal Tissue Practices

       The conference agreement does not include a provision 
     proposed by the Senate requesting a GAO study into Federal 
     fetal tissue practices. The House bill contained no similar 
     provision.


 Genetic Information Nondiscrimination in Health Insurance Act of 1999

       The conference agreement does not include a provision 
     proposed by the Senate regarding genetic information. The 
     House bill contained no similar provision.


            Health Care Access and Protections for Consumers

       The conference agreement does not include the health care 
     access and protections for consumers provision as proposed by 
     the Senate. The House bill contained no similar provision.


                          Human Papillomavirus

       The conference agreement includes a provision related to 
     human papillomavirus. The House and Senate bills contained no 
     similar provision.


                           Saccharin Labeling

       The conference agreement includes a provision that repeals 
     the mandated saccharin warning label. The House and Senate 
     bills contained no similar provision.


           special benefits for certain world war ii veterans

       The conference agreement includes a provision which allows 
     a State and the Commissioner of Social Security to enter into 
     an agreement under which the Commissioner would make State 
     payments, on behalf of the State, to supplement federal 
     payments provided under Title VIII of the Social Security 
     Act.


                          Statutory employees

       The Conferees note that, given the complexity of issues 
     that were considered under prior law in correctly determining 
     the amount of Supplemental Security Income payable to 
     individuals who are classified as ``statutory employees'', or 
     their dependents, that in the past cases may have been 
     determined erroneously. The Conferees urge the Social 
     Security Administration to act favorable on requests for 
     waiver of overpayment that may have accured in such cases.

                 TITLE VI--ASSETS FOR INDEPENDENCE ACT

       The conference agreement includes amendments to the Assets 
     for Independence Act to make technical and conforming changes 
     to ensure accurate research and measurement of the 
     effectiveness of Individual Development Accounts.

           TITLE VII--PHYSICAL EDUCATION FOR PROGRESS PROGRAM

       The conference agreement includes the Physical Education 
     for Progress program which will enable local educational 
     agencies to initiate, expand, and improve physical education 
     programs for all K-12 students.

                TITLE VIII--EARLY LEARNING OPPORTUNITIES

       The conference agreement includes the Early Learning 
     Opportunities Act, which is designed to help states increase 
     the availability of voluntary programs, services, and 
     activities that support early childhood education.

                       TITLE IX--RURAL EDUCATION

       The conference agreement includes the Rural Achievement 
     Act, which amends Part J of Title X of the Elementary and 
     Secondary Education Act (ESEA) of 1965 to better address the 
     different needs of small, rural school districts. Under this 
     provision, a local educational agency (LEA) would be able to

[[Page 26734]]

     combine funding under various ESEA programs to support 
     compensatory education, teacher professional development, 
     education technology, and school drug and violence prevention 
     activities authorized under ESEA that are intended to improve 
     the academic achievement of elementary and secondary school 
     students.


                          Conference Agreement

       The following table displays the amounts agreed to for each 
     program, project or activity with appropriate comparisons:

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[[Page 26755]]

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                   LEGISLATIVE BRANCH APPROPRIATIONS

       The conference agreement would enact the provisions of H.R. 
     5657 as introduced on December 14, 2000. The text of that 
     bill follows:
     A BILL Making appropriations for the Legislative Branch for 
     the fiscal year ending September 30, 2001, and for other 
     purposes.
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, That the 
     following sums are appropriated, out of any money in the 
     Treasury not otherwise appropriated, for the Legislative 
     Branch for the fiscal year ending September 30, 2001, and for 
     other purposes, namely: 

                   TITLE I--CONGRESSIONAL OPERATIONS

                                 SENATE


      payment to widows and heirs of deceased members of congress

       For a payment to Nancy Nally Coverdell, widow of Paul D. 
     Coverdell, late a Senator from Georgia, $141,300.

                           expense allowances

       For expense allowances of the Vice President, $10,000; the 
     President Pro Tempore of the Senate, $10,000; Majority Leader 
     of the Senate, $10,000; Minority Leader of the Senate, 
     $10,000; Majority Whip of the Senate, $5,000; Minority Whip 
     of the Senate, $5,000; and Chairmen of the Majority and 
     Minority Conference Committees, $3,000 for each Chairman; and 
     Chairmen of the Majority and Minority Policy Committees, 
     $3,000 for each Chairman; in all, $62,000.

    representation allowances for the majority and minority leaders

       For representation allowances of the Majority and Minority 
     Leaders of the Senate, $15,000 for each such Leader; in all, 
     $30,000.

                    Salaries, Officers and Employees

       For compensation of officers, employees, and others as 
     authorized by law, including agency contributions, 
     $92,321,000, which shall be paid from this appropriation 
     without regard to the below limitations, as follows:

                      office of the vice president

       For the Office of the Vice President, $1,785,000.

                  office of the president pro tempore

       For the Office of the President Pro Tempore, $453,000.

              offices of the majority and minority leaders

       For Offices of the Majority and Minority Leaders, 
     $2,742,000.

               offices of the majority and minority whips

       For Offices of the Majority and Minority Whips, $1,722,000.

                      committee on appropriations

       For salaries of the Committee on Appropriations, 
     $6,917,000.

                         conference committees

       For the Conference of the Majority and the Conference of 
     the Minority, at rates of compensation to be fixed by the 
     Chairman of each such committee, $1,152,000 for each such 
     committee; in all, $2,304,000.

 offices of the secretaries of the conference of the majority and the 
                       conference of the minority

       For Offices of the Secretaries of the Conference of the 
     Majority and the Conference of the Minority, $590,000.

                           policy committees

       For salaries of the Majority Policy Committee and the 
     Minority Policy Committee, $1,171,000 for each such 
     committee; in all, $2,342,000.

                         office of the chaplain

       For Office of the Chaplain, $288,000.

                        office of the secretary

       For Office of the Secretary, $14,738,000.

             office of the sergeant at arms and doorkeeper

       For Office of the Sergeant at Arms and Doorkeeper, 
     $34,811,000.

        offices of the secretaries for the majority and minority

       For Offices of the Secretary for the Majority and the 
     Secretary for the Minority, $1,292,000.

               agency contributions and related expenses

       For agency contributions for employee benefits, as 
     authorized by law, and related expenses, $22,337,000.

            Office of the Legislative Counsel of the Senate

       For salaries and expenses of the Office of the Legislative 
     Counsel of the Senate, $4,046,000.

                     Office of Senate Legal Counsel

       For salaries and expenses of the Office of Senate Legal 
     Counsel, $1,069,000.

Expense Allowances of the Secretary of the Senate, Sergeant at Arms and 
Doorkeeper of the Senate, and Secretaries for the Majority and Minority 
                             of the Senate

       For expense allowances of the Secretary of the Senate, 
     $3,000; Sergeant at Arms and Doorkeeper of the Senate, 
     $3,000; Secretary for the Majority of the Senate, $3,000; 
     Secretary for the Minority of the Senate, $3,000; in all, 
     $12,000.

                   Contingent Expenses of the Senate

                      inquiries and investigations

       For expenses of inquiries and investigations ordered by the 
     Senate, or conducted pursuant to section 134(a) of Public Law 
     601, Seventy-ninth Congress, as amended, section 112 of 
     Public Law 96-304 and Senate Resolution 281, agreed to March 
     11, 1980, $73,000,000.


expenses of the united states senate caucus on international narcotics 
                                control

       For expenses of the United States Senate Caucus on 
     International Narcotics Control, $370,000.

                        secretary of the senate

       For expenses of the Office of the Secretary of the Senate, 
     $2,077,000.

             sergeant at arms and doorkeeper of the senate

       For expenses of the Office of the Sergeant at Arms and 
     Doorkeeper of the Senate, $71,511,000, of which $2,500,000 
     shall remain available until September 30, 2003.

                          miscellaneous items

       For miscellaneous items, $8,655,000.

        senators' official personnel and office expense account

       For Senators' Official Personnel and Office Expense 
     Account, $253,203,000.

                          official mail costs

       For expenses necessary for official mail costs of the 
     Senate $300,000.

                       administrative provisions

       Section 1. Semiannual Report. (a) In General.--Section 
     105(a) of the Legislative Branch Appropriations Act, 1965 (2 
     U.S.C. 104a) is amended by adding at the end the following:
       ``(5)(A) Notwithstanding the requirements of paragraph (1) 
     relating to the level of detail of statement and itemization, 
     each report by the Secretary of the Senate required under 
     such paragraph shall be compiled at a summary level for each 
     office of the Senate authorized to obligate appropriated 
     funds.
       ``(B) Subparagraph (A) shall not apply to the reporting of 
     expenditures relating to personnel compensation, travel and 
     transportation of persons, other contractual services, and 
     acquisition of assets.
       ``(C) In carrying out this paragraph the Secretary of the 
     Senate shall apply the Standard Federal Object Classification 
     of Expenses as the Secretary determines appropriate.''.
       (b) Effective Date and Application.--
       (1) In general.--Subject to paragraph (2), the amendment 
     made by this section shall take effect on the date of 
     enactment of this Act.
       (2) First report after enactment.--The Secretary of the 
     Senate may elect to compile and submit the report for the 
     semiannual period during which the date of enactment of this 
     section occurs, as if the amendment made by this section had 
     not been enacted.
       Sec. 2. Senate Employee Pay Adjustments. Section 4 of the 
     Federal Pay Comparability Act of 1970 (2 U.S.C. 60a-1) is 
     amended--
       (1) in subsection (a)--
       (A) by inserting ``(or section 5304 or 5304a of such title, 
     as applied to employees employed in the pay locality of the 
     Washington, D.C.-Baltimore, Maryland consolidated 
     metropolitan statistical area)'' after ``employees under 
     section 5303 of title 5, United States Code,''; and
       (B) by inserting ``(and, as the case may be, section 5304 
     or 5304a of such title, as applied to employees employed in 
     the pay locality of the Washington, D.C.-Baltimore, Maryland 
     consolidated metropolitan statistical area)'' after ``the 
     President under such section 5303'';
       (2) by redesignating subsection (e) as subsection (f ); and
       (3) by inserting after subsection (d) the following:
       ``(e) Any percentage used in any statute specifically 
     providing for an adjustment in rates of pay in lieu of an 
     adjustment made under section 5303 of title 5, United States 
     Code, and, as the case may be, section 5304 or 5304a of such 
     title for any calendar year shall be treated as the 
     percentage used in an adjustment made under such section 
     5303, 5304, or 5304a, as applicable, for purposes of 
     subsection (a).''.
       Sec. 3. (a) Section 6(c) of the Legislative Branch 
     Appropriations Act, 1999 (2 U.S.C. 121b-1(c)) is amended--
       (1) by striking ``and agency contributions'' in paragraph 
     (2)(A), and
       (2) by adding at the end the following:
       ``(3) Agency contributions for employees of Senate Hair 
     Care Services shall be paid from the appropriations account 
     for `Salaries, Officers and Employees'.''.
       (b) This section shall apply to pay periods beginning on or 
     after October 1, 2000.
       Sec. 4. (a) There is established in the Treasury of the 
     United States a revolving fund to be known as the Senate 
     Health and Fitness Facility Revolving Fund (``the revolving 
     fund'').
       (b) The Architect of the Capitol shall deposit in the 
     revolving fund--
       (1) any amounts received as dues or other assessments for 
     use of the Senate Health and Fitness Facility, and
       (2) any amounts received from the operation of the Senate 
     waste recycling program.
       (c) Subject to the approval of the Committee on 
     Appropriations of the Senate, amounts in the revolving fund 
     shall be available to the Architect of the Capitol, without 
     fiscal year limitation, for payment of costs of the Senate 
     Health and Fitness Facility.
       (d) The Architect of the Capitol shall withdraw from the 
     revolving fund and deposit in the Treasury of the United 
     States as miscellaneous receipts all moneys in the revolving 
     fund that the Architect determines are in excess of the 
     current and reasonably foreseeable needs of the Senate Health 
     and Fitness Facility.
       (e) Subject to the approval of the Committee on Rules and 
     Administration of the Senate, the Architect of the Capitol 
     may issue such regulations as may be necessary to carry out 
     the provisions of this section.

[[Page 26793]]

       Sec. 5. For each fiscal year (commencing with the fiscal 
     year ending September 30, 2001), there is authorized an 
     expense allowance for the Chairmen of the Majority and 
     Minority Policy Committees which shall not exceed $3,000 each 
     fiscal year for each such Chairman; and amounts from such 
     allowance shall be paid to either of such Chairmen only as 
     reimbursement for actual expenses incurred by him and upon 
     certification and documentation of such expenses, and amounts 
     so paid shall not be reported as income and shall not be 
     allowed as a deduction under the Internal Revenue Code of 
     1986.
       Sec. 6. (a) The head of the employing office of an employee 
     of the Senate may, upon termination of employment of the 
     employee, authorize payment of a lump sum for the accrued 
     annual leave of that employee if--
       (1) the head of the employing office--
       (A) has approved a written leave policy authorizing 
     employees to accrue leave and establishing the conditions 
     upon which accrued leave may be paid; and
       (B) submits written certification to the Financial Clerk of 
     the Senate of the number of days of annual leave accrued by 
     the employee for which payment is to be made under the 
     written leave policy of the employing office; and
       (2) there are sufficient funds to cover the lump sum 
     payment.
       (b)(1) A lump sum payment under this section shall not 
     exceed the lesser of--
       (A) twice the monthly rate of pay of the employee; or
       (B) the product of the daily rate of pay of the employee 
     and the number of days of accrued annual leave of the 
     employee.
       (2) The Secretary of the Senate shall determine the rates 
     of pay of an employee under paragraph (1) (A) and (B) on the 
     basis of the annual rate of pay of the employee in effect on 
     the date of termination of employment.
       (c) Any payment under this section shall be paid from the 
     appropriation account or fund used to pay the employee.
       (d) If an individual who received a lump sum payment under 
     this section is reemployed as an employee of the Senate 
     before the end of the period covered by the lump sum payment, 
     the individual shall refund an amount equal to the applicable 
     pay covering the period between the date of reemployment and 
     the expiration of the lump sum period. Such amount shall be 
     deposited to the appropriation account or fund used to pay 
     the lump sum payment.
       (e) The Committee on Rules and Administration of the Senate 
     may prescribe regulations to carry out this section.
       (f ) In this section, the term--
       (1) ``employee of the Senate'' means any employee whose pay 
     is disbursed by the Secretary of the Senate, except that the 
     term does not include a member of the Capitol Police or a 
     civilian employee of the Capitol Police; and
       (2) ``head of the employing office'' means any person with 
     the final authority to appoint, hire, discharge, and set the 
     terms, conditions, or privileges of the employment of an 
     individual whose pay is disbursed by the Secretary of the 
     Senate.
       Sec. 7. (a) Agency contributions for employees whose 
     salaries are disbursed by the Secretary of the Senate from 
     the appropriations account ``Joint Economic Committee'' under 
     the heading ``JOINT ITEMS'' shall be paid from the Senate 
     appropriations account for ``Salaries, Officers and 
     Employees''.
       (b) This section shall apply to pay periods beginning on or 
     after October 1, 2000.
       Sec. 8. Section 316 of Public Law 101-302 (40 U.S.C. 188b-
     6) is amended--
       (1) in the first sentence of subsection (a) by striking 
     ``items of art, fine art, and historical items'' and 
     inserting ``works of art, historical objects, documents or 
     material relating to historical matters for placement or 
     exhibition'';
       (2) in the second sentence of subsection (a)--
       (A) by striking ``such items'' each place it appears and 
     inserting ``such works, objects, documents, or material'' in 
     each such place; and
       (B) by striking ``an item'' and inserting ``a work, object, 
     document, or material''; and
       (3) in subsection (b)--
       (A) by striking ``such items of art'' and inserting ``such 
     works, objects, documents, or materials''; and
       (B) by striking ``shall'' and inserting ``may''.

                        HOUSE OF REPRESENTATIVES

                         Salaries and Expenses

       For salaries and expenses of the House of Representatives, 
     $769,551,000, as follows:

                        house leadership offices

       For salaries and expenses, as authorized by law, 
     $14,378,000, including: Office of the Speaker, $1,759,000, 
     including $25,000 for official expenses of the Speaker; 
     Office of the Majority Floor Leader, $1,726,000, including 
     $10,000 for official expenses of the Majority Leader; Office 
     of the Minority Floor Leader, $2,096,000, including $10,000 
     for official expenses of the Minority Leader; Office of the 
     Majority Whip, including the Chief Deputy Majority Whip, 
     $1,466,000, including $5,000 for official expenses of the 
     Majority Whip; Office of the Minority Whip, including the 
     Chief Deputy Minority Whip, $1,096,000, including $5,000 for 
     official expenses of the Minority Whip; Speaker's Office for 
     Legislative Floor Activities, $410,000; Republican Steering 
     Committee, $765,000; Republican Conference, $1,255,000; 
     Democratic Steering and Policy Committee, $1,352,000; 
     Democratic Caucus, $668,000; nine minority employees, 
     $1,229,000; training and program development--majority, 
     $278,000; and training and program development--minority, 
     $278,000.

                  Members' Representational Allowances

   Including Members' Clerk Hire, Official Expenses of Members, and 
                             Official Mail

       For Members' representational allowances, including 
     Members' clerk hire, official expenses, and official mail, 
     $410,182,000.

                          Committee Employees

                Standing Committees, Special and Select

       For salaries and expenses of standing committees, special 
     and select, authorized by House resolutions, $92,196,000: 
     Provided, That such amount shall remain available for such 
     salaries and expenses until December 31, 2002.

                      Committee on Appropriations

       For salaries and expenses of the Committee on 
     Appropriations, $20,628,000, including studies and 
     examinations of executive agencies and temporary personal 
     services for such committee, to be expended in accordance 
     with section 202(b) of the Legislative Reorganization Act of 
     1946 and to be available for reimbursement to agencies for 
     services performed: Provided, That such amount shall remain 
     available for such salaries and expenses until December 31, 
     2002.

                    salaries, officers and employees

       For compensation and expenses of officers and employees, as 
     authorized by law, $90,403,000, including: for salaries and 
     expenses of the Office of the Clerk, including not more than 
     $3,500, of which not more than $2,500 is for the Family Room, 
     for official representation and reception expenses, 
     $14,590,000; for salaries and expenses of the Office of the 
     Sergeant at Arms, including the position of Superintendent of 
     Garages, and including not more than $750 for official 
     representation and reception expenses, $3,692,000; for 
     salaries and expenses of the Office of the Chief 
     Administrative Officer, $58,550,000, of which $1,054,000 
     shall remain available until expended, including $26,605,000 
     for salaries, expenses and temporary personal services of 
     House Information Resources, of which $26,020,000 is provided 
     herein: Provided, That of the amount provided for House 
     Information Resources, $6,497,000 shall be for net expenses 
     of telecommunications: Provided further, That House 
     Information Resources is authorized to receive reimbursement 
     from Members of the House of Representatives and other 
     governmental entities for services provided and such 
     reimbursement shall be deposited in the Treasury for credit 
     to this account; for salaries and expenses of the Office of 
     the Inspector General, $3,249,000; for salaries and expenses 
     of the Office of General Counsel, $806,000; for the Office of 
     the Chaplain, $140,000; for salaries and expenses of the 
     Office of the Parliamentarian, including the Parliamentarian 
     and $2,000 for preparing the Digest of Rules, $1,201,000; for 
     salaries and expenses of the Office of the Law Revision 
     Counsel of the House, $2,045,000; for salaries and expenses 
     of the Office of the Legislative Counsel of the House, 
     $5,085,000; for salaries and expenses of the Corrections 
     Calendar Office, $832,000; and for other authorized 
     employees, $213,000.

                        allowances and expenses

       For allowances and expenses as authorized by House 
     resolution or law, $141,764,000, including: supplies, 
     materials, administrative costs and Federal tort claims, 
     $2,235,000; official mail for committees, leadership offices, 
     and administrative offices of the House, $410,000; Government 
     contributions for health, retirement, Social Security, and 
     other applicable employee benefits, $138,726,000; and 
     miscellaneous items including purchase, exchange, 
     maintenance, repair and operation of House motor vehicles, 
     interparliamentary receptions, and gratuities to heirs of 
     deceased employees of the House, $393,000.

                           child care center

       For salaries and expenses of the House of Representatives 
     Child Care Center, such amounts as are deposited in the 
     account established by section 312(d)(1) of the Legislative 
     Branch Appropriations Act, 1992 (40 U.S.C. 184g(d)(1)), 
     subject to the level specified in the budget of the Center, 
     as submitted to the Committee on Appropriations of the House 
     of Representatives.

                       Administrative Provisions

       Sec. 101. During fiscal year 2001 and any succeeding fiscal 
     year, the Chief Administrative Officer of the House of 
     Representatives may--
       (1) enter into contracts for the acquisition of severable 
     services for a period that begins in 1 fiscal year and ends 
     in the next fiscal year to the same extent as the head of an 
     executive agency under the authority of section 303L of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253l); and
       (2) enter into multi-year contracts for the acquisitions of 
     property and nonaudit-related services to the same extent as 
     executive agencies under the authority of section 304B of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 254c).
       Sec. 102. (a) Permitting New House Employees To Be Placed 
     Above Minimum Step of Compensation Level.--The House 
     Employees Position Classification Act (2 U.S.C. 291 et seq.) 
     is amended by striking section 10 (2 U.S.C. 299).
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to employees appointed on or after 
     October 1, 2000.
       Sec. 103. (a) Requiring Amounts Remaining in Members' 
     Representational Allowances To Be Used for Deficit Reduction 
     or To Reduce the Federal Debt.--Notwithstanding any other 
     provision of law, any amounts appropriated under this Act for 
     ``HOUSE OF REPRESENTATIVES--Salaries and Expenses--Members' 
     Representational Allowances''

[[Page 26794]]

     shall be available only for fiscal year 2001. Any amount 
     remaining after all payments are made under such allowances 
     for fiscal year 2001 shall be deposited in the Treasury and 
     used for deficit reduction (or, if there is no Federal budget 
     deficit after all such payments have been made, for reducing 
     the Federal debt, in such manner as the Secretary of the 
     Treasury considers appropriate).
       (b) Regulations.--The Committee on House Administration of 
     the House of Representatives shall have authority to 
     prescribe regulations to carry out this section.
       (c) Definition.--As used in this section, the term ``Member 
     of the House of Representatives'' means a Representative in, 
     or a Delegate or Resident Commissioner to, the Congress.
       Sec. 104. (a) There is hereby appropriated for payment to 
     the Prince William County Public Schools $215,000, to be used 
     to pay for educational services for the son of Mrs. Evelyn 
     Gibson, the widow of Detective John Michael Gibson of the 
     United States Capitol Police.
       (b) The payment under subsection (a) shall be made in 
     accordance with terms and conditions established by the 
     Committee on House Administration of the House of 
     Representatives.
       (c) The funds used for the payment made under subsection 
     (a) shall be derived from the applicable accounts of the 
     House of Representatives.

                              JOINT ITEMS

       For Joint Committees, as follows:

     Joint Congressional Committee on Inaugural Ceremonies of 2001

       For all construction expenses, salaries, and other expenses 
     associated with conducting the inaugural ceremonies of the 
     President and Vice President of the United States, January 
     20, 2001, in accordance with such program as may be adopted 
     by the joint committee authorized by Senate Concurrent 
     Resolution 89, agreed to March 14, 2000 (One Hundred Sixth 
     Congress), and Senate Concurrent Resolution 90, agreed to 
     March 14, 2000 (One Hundred Sixth Congress), $1,000,000 to be 
     disbursed by the Secretary of the Senate and to remain 
     available until September 30, 2001. Funds made available 
     under this heading shall be available for payment, on a 
     direct or reimbursable basis, whether incurred on, before, or 
     after, October 1, 2000: Provided, That the compensation of 
     any employee of the Committee on Rules and Administration of 
     the Senate who has been designated to perform service for the 
     Joint Congressional Committee on Inaugural Ceremonies shall 
     continue to be paid by the Committee on Rules and 
     Administration, but the account from which such staff member 
     is paid may be reimbursed for the services of the staff 
     member (including agency contributions when appropriate) out 
     of funds made available under this heading.


                        administrative provision

       Sec. 105. During fiscal year 2001 the Secretary of Defense 
     shall provide protective services on a non-reimbursable basis 
     to the United States Capitol Police with respect to the 
     following events:
       (1) Upon request of the Chair of the Joint Congressional 
     Committee on Inaugural Ceremonies established under Senate 
     Concurrent Resolution 89, One Hundred Sixth Congress, agreed 
     to March 14, 2000, the proceedings and ceremonies conducted 
     for the inauguration of the President-elect and Vice 
     President-elect of the United States.
       (2) Upon request of the Speaker of the House of 
     Representatives and the President Pro Tempore of the Senate, 
     the joint session of Congress held to receive a message from 
     the President of the United States on the State of the Union.

                        Joint Economic Committee

       For salaries and expenses of the Joint Economic Committee, 
     $3,315,000, to be disbursed by the Secretary of the Senate.

                      Joint Committee on Taxation

       For salaries and expenses of the Joint Committee on 
     Taxation, $6,430,000, to be disbursed by the Chief 
     Administrative Officer of the House.
       For other joint items, as follows:

                   Office of the Attending Physician

       For medical supplies, equipment, and contingent expenses of 
     the emergency rooms, and for the Attending Physician and his 
     assistants, including: (1) an allowance of $1,500 per month 
     to the Attending Physician; (2) an allowance of $500 per 
     month each to three medical officers while on duty in the 
     Office of the Attending Physician; (3) an allowance of $500 
     per month to one assistant and $400 per month each not to 
     exceed 11 assistants on the basis heretofore provided for 
     such assistants; and (4) $1,159,904 for reimbursement to the 
     Department of the Navy for expenses incurred for staff and 
     equipment assigned to the Office of the Attending Physician, 
     which shall be advanced and credited to the applicable 
     appropriation or appropriations from which such salaries, 
     allowances, and other expenses are payable and shall be 
     available for all the purposes thereof, $1,835,000, to be 
     disbursed by the Chief Administrative Officer of the House.

                          Capitol Police Board

                             Capitol Police

                                salaries

       For the Capitol Police Board for salaries of officers, 
     members, and employees of the Capitol Police, including 
     overtime, hazardous duty pay differential, clothing allowance 
     of not more than $600 each for members required to wear 
     civilian attire, and Government contributions for health, 
     retirement, Social Security, and other applicable employee 
     benefits, $97,142,000, of which $47,053,000 is provided to 
     the Sergeant at Arms of the House of Representatives, to be 
     disbursed by the Chief Administrative Officer of the House, 
     and $50,089,000 is provided to the Sergeant at Arms and 
     Doorkeeper of the Senate, to be disbursed by the Secretary of 
     the Senate: Provided, That, of the amounts appropriated under 
     this heading, such amounts as may be necessary may be 
     transferred between the Sergeant at Arms of the House of 
     Representatives and the Sergeant at Arms and Doorkeeper of 
     the Senate, upon approval of the Committee on Appropriations 
     of the House of Representatives and the Committee on 
     Appropriations of the Senate.

                            general expenses

       For the Capitol Police Board for necessary expenses of the 
     Capitol Police, including motor vehicles, communications and 
     other equipment, security equipment and installation, 
     uniforms, weapons, supplies, materials, training, medical 
     services, forensic services, stenographic services, personal 
     and professional services, the employee assistance program, 
     not more than $2,000 for the awards program, postage, 
     telephone service, travel advances, relocation of instructor 
     and liaison personnel for the Federal Law Enforcement 
     Training Center, and $85 per month for extra services 
     performed for the Capitol Police Board by an employee of the 
     Sergeant at Arms of the Senate or the House of 
     Representatives designated by the Chairman of the Board, 
     $6,772,000, to be disbursed by the Capitol Police Board or 
     their delegee: Provided, That, notwithstanding any other 
     provision of law, the cost of basic training for the Capitol 
     Police at the Federal Law Enforcement Training Center for 
     fiscal year 2001 shall be paid by the Secretary of the 
     Treasury from funds available to the Department of the 
     Treasury.

                       Administrative Provisions

       Sec. 106. Amounts appropriated for fiscal year 2001 for the 
     Capitol Police Board for the Capitol Police may be 
     transferred between the headings ``salaries'' and ``general 
     expenses'' upon the approval of--
       (1) the Committee on Appropriations of the House of 
     Representatives, in the case of amounts transferred from the 
     appropriation provided to the Sergeant at Arms of the House 
     of Representatives under the heading ``salaries'';
       (2) the Committee on Appropriations of the Senate, in the 
     case of amounts transferred from the appropriation provided 
     to the Sergeant at Arms and Doorkeeper of the Senate under 
     the heading ``salaries''; and
       (3) the Committees on Appropriations of the Senate and the 
     House of Representatives, in the case of other transfers.
       Sec. 107. (a) Appointment of Certifying Officers of the 
     Capitol Police.--The Chief Administrative Officer of the 
     United States Capitol Police, or when there is not a Chief 
     Administrative Officer the Capitol Police Board, shall 
     appoint certifying officers to certify all vouchers for 
     payment from funds made available to the United States 
     Capitol Police.
       (b) Responsibility and Accountability of Certifying 
     Officers.--
       (1) In general.--Each officer or employee of the Capitol 
     Police who has been duly authorized in writing by the Chief 
     Administrative Officer, or the Capitol Police Board if there 
     is not a Chief Administrative Officer, to certify vouchers 
     pursuant to subsection (a) shall--
       (A) be held responsible for the existence and correctness 
     of the facts recited in the certificate or otherwise stated 
     on the voucher or its supporting papers and for the legality 
     of the proposed payment under the appropriation or fund 
     involved;
       (B) be held responsible and accountable for the correctness 
     of the computations of certified vouchers; and
       (C) be held accountable for and required to make good to 
     the United States the amount of any illegal, improper, or 
     incorrect payment resulting from any false, inaccurate, or 
     misleading certificate made by such officer or employee, as 
     well as for any payment prohibited by law or which did not 
     represent a legal obligation under the appropriation or fund 
     involved.
       (2) Relief by comptroller general.--The Comptroller General 
     may, at the Comptroller General's discretion, relieve such 
     certifying officer or employee of liability for any payment 
     otherwise proper if the Comptroller General finds--
       (A) that the certification was based on official records 
     and that the certifying officer or employee did not know, and 
     by reasonable diligence and inquiry could not have 
     ascertained, the actual facts; or
       (B) that the obligation was incurred in good faith, that 
     the payment was not contrary to any statutory provision 
     specifically prohibiting payments of the character involved, 
     and the United States has received value for such payment.
       (c) Enforcement of Liability.--The liability of the 
     certifying officers of the United States Capitol Police shall 
     be enforced in the same manner and to the same extent as 
     currently provided with respect to the enforcement of the 
     liability of disbursing and other accountable officers, and 
     such officers shall have the right to apply for and obtain a 
     decision by the Comptroller General on any question of law 
     involved in a payment on any vouchers presented to them for 
     certification.
       Sec. 108. Chief Administrative Officer.--(a) There shall be 
     within the Capitol Police an Office of Administration to be 
     headed by a Chief Administrative Officer:
       (1) The Chief Administrative Officer shall be appointed by 
     the Comptroller General after consultation with the Capitol 
     Police Board, and

[[Page 26795]]

     shall report to and serve at the pleasure of the Comptroller 
     General.
       (2) The Comptroller General shall appoint as Chief 
     Administrative Officer an individual with the knowledge and 
     skills necessary to carry out the responsibilities for 
     budgeting, financial management, information technology, and 
     human resource management described in this section.
       (3) The Chief Administrative Officer shall receive basic 
     pay at a rate determined by the Comptroller General, but not 
     to exceed the annual rate of basic pay payable for ES-2 of 
     the Senior Executive Service Basic Rates Schedule established 
     for members of the Senior Executive Service of the General 
     Accounting Office under section 733 of title 31.
       (4) The Capitol Police shall reimburse from available 
     appropriations any costs incurred by the General Accounting 
     Office under this section.
       (b) The Chief Administrative Officer shall have the 
     following areas of responsibility:
       (1) Budgeting.--The Chief Administrative Officer shall--
       (A) after consulting with the Chief of Police on the 
     portion of the budget covering uniformed police force 
     personnel, prepare and submit to the Capitol Police Board an 
     annual budget for the Capitol Police; and
       (B) execute the budget and monitor through periodic 
     examinations the execution of the Capitol Police budget in 
     relation to actual obligations and expenditures.
       (2) Financial management.--The Chief Administrative Officer 
     shall--
       (A) oversee all financial management activities relating to 
     the programs and operations of the Capitol Police;
       (B) develop and maintain an integrated accounting and 
     financial system for the Capitol Police, including financial 
     reporting and internal controls, which--
       (i) complies with applicable accounting principles, 
     standards, and requirements, and internal control standards;
       (ii) complies with any other requirements applicable to 
     such systems;
       (iii) provides for--

       (I) complete, reliable, consistent, and timely information 
     which is prepared on a uniform basis and which is responsive 
     to financial information needs of the Capitol Police;
       (II) the development and reporting of cost information;
       (III) the integration of accounting and budgeting 
     information; and
       (IV) the systematic measurement of performance;

       (C) direct, manage, and provide policy guidance and 
     oversight of Capitol Police financial management personnel, 
     activities, and operations, including--
       (i) the recruitment, selection, and training of personnel 
     to carry out Capitol Police financial management functions; 
     and
       (ii) the implementation of Capitol Police asset management 
     systems, including systems for cash management, debt 
     collection, and property and inventory management and 
     control; and
       (D) the Chief Administrative Officer shall prepare annual 
     financial statements for the Capitol Police and provide for 
     an annual audit of the financial statements by an independent 
     public accountant in accordance with generally accepted 
     government auditing standards.
       (3) Information technology.--The Chief Administrative 
     Officer shall--
       (A) direct, coordinate, and oversee the acquisition, use, 
     and management of information technology by the Capitol 
     Police;
       (B) promote and oversee the use of information technology 
     to improve the efficiency and effectiveness of programs of 
     the Capitol Police; and
       (C) establish and enforce information technology 
     principles, guidelines, and objectives, including developing 
     and maintaining an information technology architecture for 
     the Capitol Police.
       (4) Human resources.--The Chief Administrative Officer 
     shall--
       (A) direct, coordinate, and oversee human resource 
     management activities of the Capitol Police, except that with 
     respect to uniformed police force personnel, the Chief 
     Administrative Officer shall perform these activities in 
     cooperation with the Chief of the Capitol Police;
       (B) develop and monitor payroll and time and attendance 
     systems and employee services; and
       (C) develop and monitor processes for recruiting, 
     selecting, appraising, and promoting employees.
       (c) Administrative provisions with respect to the Office of 
     Administration:
       (1) The Chief Administrative Officer is authorized to 
     select, appoint, employ, and discharge such officers and 
     employees as may be necessary to carry out the functions, 
     powers, and duties of the Office of Administration but he 
     shall not have the authority to hire or discharge uniformed 
     police force personnel.
       (2) The Chief Administrative Officer may utilize resources 
     of another agency on a reimbursable basis to be paid from 
     available appropriations of the Capitol Police.
       (d) No later than 180 days after appointment, the Chief 
     Administrative Officer shall prepare, after consultation with 
     the Capitol Police Board and the Chief of the Capitol Police, 
     a plan--
       (1) describing the policies, procedures, and actions the 
     Chief Administrative Officer will take in carrying out the 
     responsibilities assigned under this section;
       (2) identifying and defining responsibilities and roles of 
     all offices, bureaus, and divisions of the Capitol Police for 
     budgeting, financial management, information technology, and 
     human resources management; and
       (3) detailing mechanisms for ensuring that the offices, 
     bureaus, and divisions perform their responsibilities and 
     roles in a coordinated and integrated manner.
       (e) No later than September 30, 2001, the Chief 
     Administrative Officer shall prepare, after consultation with 
     the Capitol Police Board and the Chief of the Capitol Police, 
     a report on the Chief Administrative Officer's progress in 
     implementing the plan described in subsection (d) and 
     recommendations to improve the budgeting, financial, 
     information technology, and human resources management of the 
     Capitol Police, including organizational, accounting and 
     administrative control, and personnel changes.
       (f) The Chief Administrative Officer shall submit the plan 
     required in subsection (d) and the report required in 
     subsection (e) to the Committees on Appropriations of the 
     House of Representatives and of the Senate, the Committee on 
     House Administration of the House of Representatives, and the 
     Committee on Rules and Administration of the Senate.
       (g) As of October 1, 2002, unless otherwise determined by 
     the Comptroller General, the Chief Administrative Officer 
     established by section (a) will cease to be an employee of 
     the General Accounting Office and will become an employee of 
     the Capitol Police, and the Capitol Police Board shall assume 
     all responsibilities of the Comptroller General under this 
     section.
       Sec. 109. (a) Section 1(c) of Public Law 96-152 (40 U.S.C. 
     206-1) is amended by striking ``the annual rate'' and all 
     that follows and inserting the following: ``the rate of basic 
     pay payable for level ES-4 of the Senior Executive Service, 
     as established under subchapter VIII of chapter 53 of title 
     5, United States Code (taking into account any comparability 
     payments made under section 5304(h) of such title).''.
       (b) The amendment made by subsection (a) shall apply with 
     respect to pay periods beginning on or after the date of the 
     enactment of this Act.

           Capitol Guide Service and Special Services Office

       For salaries and expenses of the Capitol Guide Service and 
     Special Services Office, $2,371,000, to be disbursed by the 
     Secretary of the Senate: Provided, That no part of such 
     amount may be used to employ more than 43 individuals: 
     Provided further, That the Capitol Guide Board is authorized, 
     during emergencies, to employ not more than two additional 
     individuals for not more than 120 days each, and not more 
     than 10 additional individuals for not more than 6 months 
     each, for the Capitol Guide Service.

                      Statements of Appropriations

       For the preparation, under the direction of the Committees 
     on Appropriations of the Senate and the House of 
     Representatives, of the statements for the second session of 
     the One Hundred Sixth Congress, showing appropriations made, 
     indefinite appropriations, and contracts authorized, together 
     with a chronological history of the regular appropriations 
     bills as required by law, $30,000, to be paid to the persons 
     designated by the chairmen of such committees to supervise 
     the work.

                          OFFICE OF COMPLIANCE

                         Salaries and Expenses

       For salaries and expenses of the Office of Compliance, as 
     authorized by section 305 of the Congressional Accountability 
     Act of 1995 (2 U.S.C. 1385), $1,820,000.

                      CONGRESSIONAL BUDGET OFFICE

                         Salaries and Expenses

       For salaries and expenses necessary to carry out the 
     provisions of the Congressional Budget Act of 1974 (Public 
     Law 93-344), including not more than $3,000 to be expended on 
     the certification of the Director of the Congressional Budget 
     Office in connection with official representation and 
     reception expenses, $28,493,000: Provided, That no part of 
     such amount may be used for the purchase or hire of a 
     passenger motor vehicle.

                        Administrative Provision

       Sec. 110. Beginning on the date of enactment of this Act 
     and hereafter, the Congressional Budget Office may use 
     available funds to enter into contracts for the procurement 
     of severable services for a period that begins in one fiscal 
     year and ends in the next fiscal year and may enter into 
     multi-year contracts for the acquisition of property and 
     services, to the same extent as executive agencies under the 
     authority of section 303L and 304B, respectively, of the 
     Federal Property and Administrative Services Act (41 U.S.C. 
     253l and 254c).

                        ARCHITECT OF THE CAPITOL

                     Capitol Buildings and Grounds

                           capitol buildings

                         salaries and expenses

       For salaries for the Architect of the Capitol, the 
     Assistant Architect of the Capitol, and other personal 
     services, at rates of pay provided by law; for surveys and 
     studies in connection with activities under the care of the 
     Architect of the Capitol; for all necessary expenses for the 
     maintenance, care and operation of the Capitol and electrical 
     substations of the Senate and House office buildings under 
     the jurisdiction of the Architect of the Capitol, including 
     furnishings and office equipment, including not more than 
     $1,000 for official reception and representation expenses, to 
     be expended as the Architect of the Capitol may approve; for 
     purchase or exchange, maintenance and operation of a 
     passenger motor vehicle; and not to exceed $20,000 for 
     attendance, when specifically authorized by the

[[Page 26796]]

     Architect of the Capitol, at meetings or conventions in 
     connection with subjects related to work under the Architect 
     of the Capitol, $43,689,000, of which $3,843,000 shall remain 
     available until expended: Provided, That notwithstanding any 
     other provision of law, such amount shall be available for 
     the position of Project Manager for the Capitol Visitor 
     Center, at a rate of compensation which does not exceed the 
     rate of basic pay payable for level ES-2 of the Senior 
     Executive Service, as established under subchapter VIII of 
     chapter 53 of title 5, United States Code (taking into 
     account any comparability payments made under section 5304(h) 
     of such title): Provided further, That effective on the date 
     of the enactment of this Act, any amount made available under 
     this heading under the Legislative Branch Appropriations Act, 
     2000, shall be available for such position at such rate of 
     compensation.

                            capitol grounds

       For all necessary expenses for care and improvement of 
     grounds surrounding the Capitol, the Senate and House office 
     buildings, and the Capitol Power Plant, $5,362,000, of which 
     $125,000 shall remain available until expended.

                        senate office buildings

       For all necessary expenses for the maintenance, care and 
     operation of Senate office buildings; and furniture and 
     furnishings to be expended under the control and supervision 
     of the Architect of the Capitol, $63,974,000, of which 
     $21,669,000 shall remain available until expended.

                         house office buildings

       For all necessary expenses for the maintenance, care and 
     operation of the House office buildings, $32,750,000, of 
     which $123,000 shall remain available until expended.

                          capitol power plant

       For all necessary expenses for the maintenance, care and 
     operation of the Capitol Power Plant; lighting, heating, 
     power (including the purchase of electrical energy) and water 
     and sewer services for the Capitol, Senate and House office 
     buildings, Library of Congress buildings, and the grounds 
     about the same, Botanic Garden, Senate garage, and air 
     conditioning refrigeration not supplied from plants in any of 
     such buildings; heating the Government Printing Office and 
     Washington City Post Office, and heating and chilled water 
     for air conditioning for the Supreme Court Building, the 
     Union Station complex, the Thurgood Marshall Federal 
     Judiciary Building and the Folger Shakespeare Library, 
     expenses for which shall be advanced or reimbursed upon 
     request of the Architect of the Capitol and amounts so 
     received shall be deposited into the Treasury to the credit 
     of this appropriation, $39,415,000, of which $523,000 shall 
     remain available until expended: Provided, That not more than 
     $4,400,000 of the funds credited or to be reimbursed to this 
     appropriation as herein provided shall be available for 
     obligation during fiscal year 2001.

                          LIBRARY OF CONGRESS

                     Congressional Research Service

                         salaries and expenses

       For necessary expenses to carry out the provisions of 
     section 203 of the Legislative Reorganization Act of 1946 (2 
     U.S.C. 166) and to revise and extend the Annotated 
     Constitution of the United States of America, $73,592,000: 
     Provided, That no part of such amount may be used to pay any 
     salary or expense in connection with any publication, or 
     preparation of material therefor (except the Digest of Public 
     General Bills), to be issued by the Library of Congress 
     unless such publication has obtained prior approval of either 
     the Committee on House Administration of the House of 
     Representatives or the Committee on Rules and Administration 
     of the Senate.

                       GOVERNMENT PRINTING OFFICE

                   Congressional Printing and Binding


                     (including transfer of funds)

       For authorized printing and binding for the Congress and 
     the distribution of Congressional information in any format; 
     printing and binding for the Architect of the Capitol; 
     expenses necessary for preparing the semimonthly and session 
     index to the Congressional Record, as authorized by law (44 
     U.S.C. 902); printing and binding of Government publications 
     authorized by law to be distributed to Members of Congress; 
     and printing, binding, and distribution of Government 
     publications authorized by law to be distributed without 
     charge to the recipient, $71,462,000: Provided, That this 
     appropriation shall not be available for paper copies of the 
     permanent edition of the Congressional Record for individual 
     Representatives, Resident Commissioners or Delegates 
     authorized under 44 U.S.C. 906: Provided further, That this 
     appropriation shall be available for the payment of 
     obligations incurred under the appropriations for similar 
     purposes for preceding fiscal years: Provided further, That 
     notwithstanding the 2-year limitation under section 718 of 
     title 44, United States Code, none of the funds appropriated 
     or made available under this Act or any other Act for 
     printing and binding and related services provided to 
     Congress under chapter 7 of title 44, United States Code, may 
     be expended to print a document, report, or publication after 
     the 27-month period beginning on the date that such document, 
     report, or publication is authorized by Congress to be 
     printed, unless Congress reauthorizes such printing in 
     accordance with section 718 of title 44, United States Code: 
     Provided further, That any unobligated or unexpended balances 
     in this account or accounts for similar purposes for 
     preceding fiscal years may be transferred to the Government 
     Printing Office revolving fund for carrying out the purposes 
     of this heading, subject to the approval of the Committees on 
     Appropriations of the House of Representatives and Senate.

                        Administrative Provision

       Sec. 111. (a) Congressional Printing and Binding For the 
     House Through Clerk of House.--
       (1) In general.--Notwithstanding any provision of title 44, 
     United States Code, or any other law, there are authorized to 
     be appropriated to the Clerk of the House of Representatives 
     such sums as may be necessary for congressional printing and 
     binding services for the House of Representatives.
       (2) Preparation of estimates.--Estimated expenditures and 
     proposed appropriations for congressional printing and 
     binding services shall be prepared and submitted by the Clerk 
     of the House of Representatives in accordance with title 31, 
     United States Code, in the same manner as estimates and 
     requests are prepared for other legislative branch services 
     under such title, except that such requests shall be based 
     upon the results of the study conducted under subsection (b) 
     (with respect to any fiscal year covered by such study).
       (3) Effective date.--This subsection shall apply with 
     respect to fiscal year 2003 and each succeeding fiscal year.
       (b) Study.--
       (1) In general.--During fiscal year 2001, the Clerk of the 
     House of Representatives shall conduct a comprehensive study 
     of the needs of the House for congressional printing and 
     binding services during fiscal year 2003 and succeeding 
     fiscal years (including transitional issues during fiscal 
     year 2002), and shall include in the study an analysis of the 
     most cost-effective program or programs for providing printed 
     or other media-based publications for House uses.
       (2) Submission to committees.--The Clerk shall submit the 
     study conducted under paragraph (1) to the Committee on House 
     Administration of the House of Representatives, who shall 
     review the study and prepare such regulations or other 
     materials (including proposals for legislation) as it 
     considers appropriate to enable the Clerk to carry out 
     congressional printing and binding services for the House in 
     accordance with this section.
       (c) Definition.--In this section, the term ``congressional 
     printing and binding services'' means the following services:
       (1) Authorized printing and binding for the Congress and 
     the distribution of congressional information in any format.
       (2) Preparing the semimonthly and session index to the 
     Congressional Record.
       (3) Printing and binding of Government publications 
     authorized by law to be distributed to Members of Congress.
       (4) Printing, binding, and distribution of Government 
     publications authorized by law to be distributed without 
     charge to the recipient.
       This title may be cited as the ``Congressional Operations 
     Appropriations Act, 2001''.

                        TITLE II--OTHER AGENCIES

                             BOTANIC GARDEN

                         Salaries and Expenses

       For all necessary expenses for the maintenance, care and 
     operation of the Botanic Garden and the nurseries, buildings, 
     grounds, and collections; and purchase and exchange, 
     maintenance, repair, and operation of a passenger motor 
     vehicle; all under the direction of the Joint Committee on 
     the Library, $3,328,000, of which $25,000 shall remain 
     available until expended.

                          LIBRARY OF CONGRESS

                         Salaries and Expenses

       For necessary expenses of the Library of Congress not 
     otherwise provided for, including development and maintenance 
     of the Union Catalogs; custody and custodial care of the 
     Library buildings; special clothing; cleaning, laundering and 
     repair of uniforms; preservation of motion pictures in the 
     custody of the Library; operation and maintenance of the 
     American Folklife Center in the Library; preparation and 
     distribution of catalog records and other publications of the 
     Library; hire or purchase of one passenger motor vehicle; and 
     expenses of the Library of Congress Trust Fund Board not 
     properly chargeable to the income of any trust fund held by 
     the Board, $282,838,000, of which not more than $6,500,000 
     shall be derived from collections credited to this 
     appropriation during fiscal year 2001, and shall remain 
     available until expended, under the Act of June 28, 1902 
     (chapter 1301; 32 Stat. 480; 2 U.S.C. 150) and not more than 
     $350,000 shall be derived from collections during fiscal year 
     2001 and shall remain available until expended for the 
     development and maintenance of an international legal 
     information database and activities related thereto: 
     Provided, That the Library of Congress may not obligate or 
     expend any funds derived from collections under the Act of 
     June 28, 1902, in excess of the amount authorized for 
     obligation or expenditure in appropriations Acts: Provided 
     further, That the total amount available for obligation shall 
     be reduced by the amount by which collections are less than 
     the $6,850,000: Provided further, That of the total amount 
     appropriated, $10,459,575 is to remain available until 
     expended for acquisition of books, periodicals, newspapers, 
     and all other materials including subscriptions for 
     bibliographic services for the Library, including $40,000 to 
     be available solely for the purchase, when specifically 
     approved by the Librarian, of special and unique materials 
     for additions to the collections: Provided further, That of 
     the total amount appropriated, $2,506,000 is to remain

[[Page 26797]]

     available until expended for the acquisition and partial 
     support for implementation of an Integrated Library System 
     (ILS): Provided further, That of the total amount 
     appropriated, $10,000,000 is to remain available until 
     expended for salaries and expenses to carry out the Russian 
     Leadership Program enacted on May 21, 1999 (113 Stat. 93 et 
     seq.): Provided further, That of the total amount 
     appropriated, $5,957,800 is to remain available until 
     expended for the purpose of teaching educators how to 
     incorporate the Library's digital collections into school 
     curricula, which amount shall be transferred to the 
     educational consortium formed to conduct the ``Joining Hands 
     Across America: Local Community Initiative'' project as 
     approved by the Library: Provided further, That of the total 
     amount appropriated, $404,000 is to remain available until 
     expended for a collaborative digitization and 
     telecommunications project with the United States Military 
     Academy and any remaining balance is available for other 
     Library purposes: Provided further, That of the total amount 
     appropriated, $4,300,000 is to remain available until 
     expended for the purpose of developing a high speed data 
     transmission between the Library of Congress and educational 
     facilities, libraries, or networks serving western North 
     Carolina, and any remaining balance is available for support 
     of the Library's Digital Futures initiative.

                            Copyright Office

                         salaries and expenses

       For necessary expenses of the Copyright Office, 
     $38,523,000, of which not more than $23,500,000, to remain 
     available until expended, shall be derived from collections 
     credited to this appropriation during fiscal year 2001 under 
     17 U.S.C. 708(d): Provided, That the Copyright Office may not 
     obligate or expend any funds derived from collections under 
     17 U.S.C. 708(d), in excess of the amount authorized for 
     obligation or expenditure in appropriations Acts: Provided 
     further, That not more than $5,783,000 shall be derived from 
     collections during fiscal year 2001 under 17 U.S.C. 
     111(d)(2), 119(b)(2), 802(h), and 1005: Provided further, 
     That the total amount available for obligation shall be 
     reduced by the amount by which collections are less than 
     $29,283,000: Provided further, That not more than $100,000 of 
     the amount appropriated is available for the maintenance of 
     an ``International Copyright Institute'' in the Copyright 
     Office of the Library of Congress for the purpose of training 
     nationals of developing countries in intellectual property 
     laws and policies: Provided further, That not more than 
     $4,250 may be expended, on the certification of the Librarian 
     of Congress, in connection with official representation and 
     reception expenses for activities of the International 
     Copyright Institute and for copyright delegations, visitors, 
     and seminars.

             Books for the Blind and Physically Handicapped


                         salaries and expenses

       For salaries and expenses to carry out the Act of March 3, 
     1931 (chapter 400; 46 Stat. 1487; 2 U.S.C. 135a), 
     $48,609,000, of which $14,154,000 shall remain available 
     until expended.

                       Furniture and Furnishings

       For necessary expenses for the purchase, installation, 
     maintenance, and repair of furniture, furnishings, office and 
     library equipment, $4,892,000.

                       Administrative Provisions

       Sec. 201. Appropriations in this Act available to the 
     Library of Congress shall be available, in an amount of not 
     more than $199,630, of which $59,300 is for the Congressional 
     Research Service, when specifically authorized by the 
     Librarian of Congress, for attendance at meetings concerned 
     with the function or activity for which the appropriation is 
     made.
       Sec. 202. (a) No part of the funds appropriated in this Act 
     shall be used by the Library of Congress to administer any 
     flexible or compressed work schedule which--
       (1) applies to any manager or supervisor in a position the 
     grade or level of which is equal to or higher than GS-15; and
       (2) grants such manager or supervisor the right to not be 
     at work for all or a portion of a workday because of time 
     worked by the manager or supervisor on another workday.
       (b) For purposes of this section, the term ``manager or 
     supervisor'' means any management official or supervisor, as 
     such terms are defined in section 7103(a)(10) and (11) of 
     title 5, United States Code.
       Sec. 203. Appropriated funds received by the Library of 
     Congress from other Federal agencies to cover general and 
     administrative overhead costs generated by performing 
     reimbursable work for other agencies under the authority of 
     sections 1535 and 1536 of title 31, United States Code, shall 
     not be used to employ more than 65 employees and may be 
     expended or obligated--
       (1) in the case of a reimbursement, only to such extent or 
     in such amounts as are provided in appropriations Acts; or
       (2) in the case of an advance payment, only--
       (A) to pay for such general or administrative overhead 
     costs as are attributable to the work performed for such 
     agency; or
       (B) to such extent or in such amounts as are provided in 
     appropriations Acts, with respect to any purpose not 
     allowable under subparagraph (A).
       Sec. 204. Of the amounts appropriated to the Library of 
     Congress in this Act, not more than $5,000 may be expended, 
     on the certification of the Librarian of Congress, in 
     connection with official representation and reception 
     expenses for the incentive awards program.
       Sec. 205. Of the amount appropriated to the Library of 
     Congress in this Act, not more than $12,000 may be expended, 
     on the certification of the Librarian of Congress, in 
     connection with official representation and reception 
     expenses for the Overseas Field Offices.
       Sec. 206. (a) For fiscal year 2001, the obligational 
     authority of the Library of Congress for the activities 
     described in subsection (b) may not exceed $92,845,000.
       (b) The activities referred to in subsection (a) are 
     reimbursable and revolving fund activities that are funded 
     from sources other than appropriations to the Library in 
     appropriations Acts for the legislative branch.
       Sec. 207. Section 1 of the Act entitled ``An Act to 
     authorize acquisition of certain real property for the 
     Library of Congress, and for other purposes'', approved 
     December 15, 1997 (2 U.S.C. 141 note) is amended by adding at 
     the end the following new subsection:
       ``(c) Transfer Payment by Architect.--Notwithstanding the 
     limitation on reimbursement or transfer of funds under 
     subsection (a) of this section, the Architect of the Capitol 
     may, not later than 90 days after acquisition of the property 
     under this section, transfer funds to the entity from which 
     the property was acquired by the Architect of the Capitol. 
     Such transfers may not exceed a total of $16,500,000.''.
       Sec. 208. The Librarian of Congress may convert to 
     permanent positions 84 indefinite, time-limited positions in 
     the National Digital Library Program authorized in the 
     Legislative Branch Appropriations Act, 1996 for the Library 
     of Congress under the heading, ``Salaries and Expenses'' 
     (Public Law 104-53). Notwithstanding any other provision of 
     law regarding qualifications and methods of appointment of 
     employees of the Library of Congress, the Librarian may fill 
     these permanent positions through the non-competitive 
     conversion of the incumbents in the ``indefinite-not-to-
     exceed'' positions to ``permanent'' positions.
       Sec. 209. (a) In addition to any other transfer authority 
     provided by law, during fiscal year 2001 and fiscal years 
     thereafter, the Librarian of Congress may transfer to and 
     among available accounts of the Library of Congress amounts 
     appropriated to the Librarian from funds for the purchase, 
     installation, maintenance, and repair of furniture, 
     furnishings, and office and library equipment.
       (b) Any amounts transferred pursuant to subsection (a) 
     shall be merged with and be available for the same purpose 
     and for the same period as the appropriation or account to 
     which such amounts are transferred.
       (c) The Librarian may transfer amounts pursuant to 
     subsection (a) only with the approval of the Committees on 
     Appropriations of the House of Representatives and Senate.
       Sec. 210. (a)(1) This subsection shall apply to any 
     individual who--
       (A) is employed by the Library of Congress Child 
     Development Center (known as the ``Little Scholars Child 
     Development Center'', in this section referred to as the 
     ``Center'') established under section 205(g)(1) of the 
     Legislative Branch Appropriations Act, 1991; and
       (B) makes an election to be covered by this subsection with 
     the Librarian of Congress, not later than the later of--
       (i) 60 days after the date of enactment of this Act; or
       (ii) 60 days after the date the individual begins such 
     employment.
       (2)(A) Any individual described under paragraph (1) may be 
     credited, under section 8411 of title 5, United States Code, 
     for service as an employee of the Center before the date of 
     enactment of this Act, if such employee makes a payment of 
     the deposit under section 8411(f )(2) of such title without 
     application of section 8411(b)(3) of such title.
       (B) An individual described under paragraph (1) shall be 
     credited under section 8411 of title 5, United States Code, 
     for any service as an employee of the Center on or after the 
     date of enactment of this Act, if such employee has such 
     amounts deducted and withheld from his pay as determined by 
     the Office of Personnel Management which would be deducted 
     and withheld from the basic pay of an employee under section 
     8422 of title 5, United States Code.
       (3) Notwithstanding any other provision of this subsection, 
     any service performed by an individual described under 
     paragraph (1) as an employee of the Center is deemed to be 
     civilian service creditable under section 8411 of title 5, 
     United States Code, for purposes of qualifying for survivor 
     annuities and disability benefits under subchapters IV and V 
     of chapter 84 of such title, if such individual makes payment 
     of an amount, determined by the Office of Personnel 
     Management, which would have been deducted and withheld from 
     the basic pay of such individual if such individual had been 
     an employee subject to section 8422 of title 5, United States 
     Code, for such period so credited, together with interest 
     thereon.
       (4) An individual described under paragraph (1) shall be 
     deemed an employee for purposes of chapter 84 of title 5, 
     United States Code, including subchapter III of such title, 
     and may make contributions under section 8432 of such title 
     effective for the first applicable pay period beginning on or 
     after the date such individual elects coverage under this 
     section.
       (5) The Office of Personnel Management shall accept the 
     certification of the Librarian of Congress concerning 
     creditable service for purposes of this subsection.
       (b) Any individual who is employed by the Center on or 
     after the date of enactment of this Act shall be deemed an 
     employee under section 8901(1) of title 5, United States 
     Code, for purposes of health insurance coverage under chapter 
     89 of such title. An individual who is an employee of the 
     Center on the date of enactment of

[[Page 26798]]

     this Act may elect coverage under this subsection before the 
     60th day after the date of enactment of this Act, and during 
     such periods as determined by the Office of Personnel 
     Management for employees of the Center employed after such 
     date.
       (c) An individual who is employed by the Center shall be 
     deemed an employee under section 8701(a) of title 5, United 
     States Code, for purposes of life insurance coverage under 
     chapter 87 of such title.
       (d) Government contributions for individuals receiving 
     benefits under this section, as computed under sections 8423, 
     8432, 8708, and 8906 shall be made by the Librarian of 
     Congress from any appropriations available to the Library of 
     Congress.
       (e) The Library of Congress, directly or by agreement with 
     its designated representative, shall--
       (1) process payroll for Center employees, including making 
     deductions and withholdings from the pay of employees in the 
     amounts determined under sections 8422, 8432, 8707, and 8905 
     of title 5, United States Code;
       (2) maintain appropriate personnel and payroll records for 
     Center employees, and transmit appropriate information and 
     records to the Office of Personnel Management; and
       (3) transmit funds for Government and employee 
     contributions under this section to the Office of Personnel 
     Management.
       (f ) The Center shall--
       (1) pay to the Library of Congress funds sufficient to 
     cover the gross salary and the employer's share of taxes 
     under section 3111 of the Internal Revenue Code of 1986 for 
     Center employees, in amounts computed by the Library of 
     Congress;
       (2) as required by the Library of Congress, reimburse the 
     Library of Congress for reasonable administrative costs 
     incurred under subsection (e)(1);
       (3) comply with regulations and procedures prescribed by 
     the Librarian of Congress for administration of this section;
       (4) maintain appropriate records on all Center employees, 
     as required by the Librarian of Congress; and
       (5) consult with the Librarian of Congress on the 
     administration and implementation of this section.
       (g) The Librarian of Congress may prescribe regulations to 
     carry out this section.

                        ARCHITECT OF THE CAPITOL

                     Library Buildings and Grounds

                     structural and mechanical care

       For all necessary expenses for the mechanical and 
     structural maintenance, care and operation of the Library 
     buildings and grounds, $15,970,000, of which $5,000,000 shall 
     remain available until expended.

                       GOVERNMENT PRINTING OFFICE

                 Office of Superintendent of Documents

                         salaries and expenses


                     (including transfer of funds)

       For expenses of the Office of Superintendent of Documents 
     necessary to provide for the cataloging and indexing of 
     Government publications and their distribution to the public, 
     Members of Congress, other Government agencies, and 
     designated depository and international exchange libraries as 
     authorized by law, $27,954,000: Provided, That travel 
     expenses, including travel expenses of the Depository Library 
     Council to the Public Printer, shall not exceed $175,000: 
     Provided further, That amounts of not more than $2,000,000 
     from current year appropriations are authorized for producing 
     and disseminating Congressional serial sets and other related 
     publications for 1999 and 2000 to depository and other 
     designated libraries: Provided further, That any unobligated 
     or unexpended balances in this account or accounts for 
     similar purposes for preceding fiscal years may be 
     transferred to the Government Printing Office revolving fund 
     for carrying out the purposes of this heading, subject to the 
     approval of the Committees on Appropriations of the House of 
     Representatives and Senate.

               Government Printing Office Revolving Fund

       The Government Printing Office is hereby authorized to make 
     such expenditures, within the limits of funds available and 
     in accord with the law, and to make such contracts and 
     commitments without regard to fiscal year limitations as 
     provided by section 9104 of title 31, United States Code, as 
     may be necessary in carrying out the programs and purposes 
     set forth in the budget for the current fiscal year for the 
     Government Printing Office revolving fund: Provided, That not 
     more than $2,500 may be expended on the certification of the 
     Public Printer in connection with official representation and 
     reception expenses: Provided further, That the revolving fund 
     shall be available for the hire or purchase of not more than 
     12 passenger motor vehicles: Provided further, That 
     expenditures in connection with travel expenses of the 
     advisory councils to the Public Printer shall be deemed 
     necessary to carry out the provisions of title 44, United 
     States Code: Provided further, That the revolving fund shall 
     be available for temporary or intermittent services under 
     section 3109(b) of title 5, United States Code, but at rates 
     for individuals not more than the daily equivalent of the 
     annual rate of basic pay for level V of the Executive 
     Schedule under section 5316 of such title: Provided further, 
     That the revolving fund and the funds provided under the 
     headings ``Office of Superintendent of Documents'' and 
     ``salaries and expenses'' together may not be available for 
     the full-time equivalent employment of more than 3,285 
     workyears (or such other number of workyears as the Public 
     Printer may request, subject to the approval of the 
     Committees on Appropriations of the Senate and the House of 
     Representatives): Provided further, That activities financed 
     through the revolving fund may provide information in any 
     format: Provided further, That the revolving fund shall not 
     be used to administer any flexible or compressed work 
     schedule which applies to any manager or supervisor in a 
     position the grade or level of which is equal to or higher 
     than GS-15: Provided further, That expenses for attendance at 
     meetings shall not exceed $75,000.

                       GENERAL ACCOUNTING OFFICE

                         Salaries and Expenses

       For necessary expenses of the General Accounting Office, 
     including not more than $10,000 to be expended on the 
     certification of the Comptroller General of the United States 
     in connection with official representation and reception 
     expenses; temporary or intermittent services under section 
     3109(b) of title 5, United States Code, but at rates for 
     individuals not more than the daily equivalent of the annual 
     rate of basic pay for level IV of the Executive Schedule 
     under section 5315 of such title; hire of one passenger motor 
     vehicle; advance payments in foreign countries in accordance 
     with section 3324 of title 31, United States Code; benefits 
     comparable to those payable under sections 901(5), 901(6), 
     and 901(8) of the Foreign Service Act of 1980 (22 U.S.C. 
     4081(5), 4081(6), and 4081(8)); and under regulations 
     prescribed by the Comptroller General of the United States, 
     rental of living quarters in foreign countries, $384,867,000: 
     Provided, That not more than $1,900,000 of payments received 
     under 31 U.S.C. 782 shall be available for use in fiscal year 
     2001: Provided further, That not more than $1,100,000 of 
     reimbursements received under 31 U.S.C. 9105 shall be 
     available for use in fiscal year 2001: Provided further, That 
     this appropriation and appropriations for administrative 
     expenses of any other department or agency which is a member 
     of the National Intergovernmental Audit Forum or a Regional 
     Intergovernmental Audit Forum shall be available to finance 
     an appropriate share of either Forum's costs as determined by 
     the respective Forum, including necessary travel expenses of 
     non-Federal participants. Payments hereunder to the Forum may 
     be credited as reimbursements to any appropriation from which 
     costs involved are initially financed: Provided further, That 
     this appropriation and appropriations for administrative 
     expenses of any other department or agency which is a member 
     of the American Consortium on International Public 
     Administration (ACIPA) shall be available to finance an 
     appropriate share of ACIPA costs as determined by the ACIPA, 
     including any expenses attributable to membership of ACIPA in 
     the International Institute of Administrative Sciences.

                     TITLE III--GENERAL PROVISIONS

       Sec. 301. No part of the funds appropriated in this Act 
     shall be used for the maintenance or care of private 
     vehicles, except for emergency assistance and cleaning as may 
     be provided under regulations relating to parking facilities 
     for the House of Representatives issued by the Committee on 
     House Administration and for the Senate issued by the 
     Committee on Rules and Administration.
       Sec. 302. No part of the funds appropriated in this Act 
     shall remain available for obligation beyond fiscal year 2001 
     unless expressly so provided in this Act.
       Sec. 303. Whenever in this Act any office or position not 
     specifically established by the Legislative Pay Act of 1929 
     is appropriated for or the rate of compensation or 
     designation of any office or position appropriated for is 
     different from that specifically established by such Act, the 
     rate of compensation and the designation in this Act shall be 
     the permanent law with respect thereto: Provided, That the 
     provisions in this Act for the various items of official 
     expenses of Members, officers, and committees of the Senate 
     and House of Representatives, and clerk hire for Senators and 
     Members of the House of Representatives shall be the 
     permanent law with respect thereto.
       Sec. 304. The expenditure of any appropriation under this 
     Act for any consulting service through procurement contract, 
     pursuant to section 3109 of title 5, United States Code, 
     shall be limited to those contracts where such expenditures 
     are a matter of public record and available for public 
     inspection, except where otherwise provided under existing 
     law, or under existing Executive order issued pursuant to 
     existing law.
       Sec. 305. (a) It is the sense of the Congress that, to the 
     greatest extent practicable, all equipment and products 
     purchased with funds made available in this Act should be 
     American-made.
       (b) In providing financial assistance to, or entering into 
     any contract with, any entity using funds made available in 
     this Act, the head of each Federal agency, to the greatest 
     extent practicable, shall provide to such entity a notice 
     describing the statement made in subsection (a) by the 
     Congress.
       (c) If it has been finally determined by a court or Federal 
     agency that any person intentionally affixed a label bearing 
     a ``Made in America'' inscription, or any inscription with 
     the same meaning, to any product sold in or shipped to the 
     United States that is not made in the United States, such 
     person shall be ineligible to receive any contract or 
     subcontract made with funds provided pursuant to this Act, 
     pursuant to the debarment, suspension, and ineligibility 
     procedures described in section 9.400 through 9.409 of title 
     48, Code of Federal Regulations.

[[Page 26799]]

       Sec. 306. Such sums as may be necessary are appropriated to 
     the account described in subsection (a) of section 415 of 
     Public Law 104-1 to pay awards and settlements as authorized 
     under such subsection.
       Sec. 307. Amounts available for administrative expenses of 
     any legislative branch entity which participates in the 
     Legislative Branch Financial Managers Council (LBFMC) 
     established by charter on March 26, 1996, shall be available 
     to finance an appropriate share of LBFMC costs as determined 
     by the LBFMC, except that the total LBFMC costs to be shared 
     among all participating legislative branch entities (in such 
     allocations among the entities as the entities may determine) 
     may not exceed $252,000.
       Sec. 308. No part of any appropriation contained in this 
     Act under the heading ``Architect of the Capitol'' or 
     ``Botanic Garden'' shall be obligated or expended for a 
     construction contract in excess of $100,000, unless such 
     contract includes a provision that requires liquidated 
     damages for contractor caused delay in an amount commensurate 
     with the daily net usable square foot cost of leasing similar 
     space in a first class office building within two miles of 
     the United States Capitol multiplied by the square footage to 
     be constructed under the contract.
       Sec. 309. Section 316 of Public Law 101-302 is amended in 
     the first sentence of subsection (a) by striking ``2000'' and 
     inserting ``2001''.
       Sec. 310. Russian Leadership Program. Section 3011 of the 
     1999 Emergency Supplemental Appropriations Act (Public Law 
     106-31; 113 Stat. 93) is amended--
       (1) by striking ``fiscal years 1999 and 2000'' in 
     subsections (a)(1), (b)(4)(B), (d)(3), and (h)(1)(A) and 
     inserting ``fiscal years 2000 and 2001''; and
       (2) by striking ``2001'' in subsection (a)(2), (e)(1), and 
     (h)(1)(B) and inserting ``2002''.
       Sec. 311. (a)(1) Any State may request the Joint Committee 
     on the Library of Congress to approve the replacement of a 
     statue the State has provided for display in Statuary Hall in 
     the Capitol of the United States under section 1814 of the 
     Revised Statutes (40 U.S.C. 187).
       (2) A request shall be considered under paragraph (1) only 
     if--
       (A) the request has been approved by a resolution adopted 
     by the legislature of the State and the request has been 
     approved by the Governor of the State, and
       (B) the statue to be replaced has been displayed in the 
     Capitol of the United States for at least 10 years as of the 
     time the request is made, except that the Joint Committee may 
     waive this requirement for cause at the request of a State.
       (b) If the Joint Committee on the Library of Congress 
     approves a request under subsection (a), the Architect of the 
     Capitol shall enter into an agreement with the State to carry 
     out the replacement in accordance with the request and any 
     conditions the Joint Committee may require for its approval. 
     Such agreement shall provide that--
       (1) the new statue shall be subject to the same conditions 
     and restrictions as apply to any statue provided by a State 
     under section 1814 of the Revised Statutes (40 U.S.C. 187), 
     and
       (2) the State shall pay any costs related to the 
     replacement, including costs in connection with the design, 
     construction, transportation, and placement of the new 
     statue, the removal and transportation of the statue being 
     replaced, and any unveiling ceremony.
       (c) Nothing in this section shall be interpreted to permit 
     a State to have more than 2 statues on display in the Capitol 
     of the United States.
       (d)(1) Subject to the approval of the Joint Committee on 
     the Library, ownership of any statue replaced under this 
     section shall be transferred to the State.
       (2) If any statue is removed from the Capitol of the United 
     States as part of a transfer of ownership under paragraph 
     (1), then it may not be returned to the Capitol for display 
     unless such display is specifically authorized by Federal 
     law.
       (e) The Architect of the Capitol, upon the approval of the 
     Joint Committee on the Library and with the advice of the 
     Commission of Fine Arts as requested, is authorized and 
     directed to relocate within the United States Capitol any of 
     the statues received from the States under section 1814 of 
     the Revised Statutes (40 U.S.C. 187) prior to the date of the 
     enactment of this Act, and to provide for the reception, 
     location, and relocation of the statues received hereafter 
     from the States under such section.
       Sec. 312. (a) Section 201 of the Legislative Branch 
     Appropriations Act, 1993 (40 U.S.C. 216c note) is amended by 
     striking ``$10,000,000'' each place it appears and inserting 
     ``$14,500,000''.
       (b) Section 201 of such Act is amended--
       (1) by inserting ``(a)'' before ``Pursuant'', and
       (2) by adding at the end the following:
       ``(b) The Architect of the Capitol is authorized to 
     solicit, receive, accept, and hold amounts under section 
     307E(a)(2) of the Legislative Branch Appropriations Act, 1989 
     (40 U.S.C. 216c(a)(2)) in excess of the $14,500,000 
     authorized under subsection (a), but such amounts (and any 
     interest thereon) shall not be expended by the Architect 
     without approval in appropriation Acts as required under 
     section 307E(b)(3) of such Act (40 U.S.C. 216c(b)(3)).''.
       Sec. 313. Center for Russian Leadership Development. (a) 
     Establishment.--
       (1) In general.--There is established in the legislative 
     branch of the Government a center to be known as the ``Center 
     for Russian Leadership Development'' (the ``Center'').
       (2) Board of trustees.--The Center shall be subject to the 
     supervision and direction of a Board of Trustees which shall 
     be composed of 9 members as follows:
       (A) 2 members appointed by the Speaker of the House of 
     Representatives, 1 of whom shall be designated by the 
     Majority Leader of the House of Representatives and 1 of whom 
     shall be designated by the Minority Leader of the House of 
     Representatives.
       (B) 2 members appointed by the President pro tempore of the 
     Senate, 1 of whom shall be designated by the Majority Leader 
     of the Senate and 1 of whom shall be designated by the 
     Minority Leader of the Senate.
       (C) The Librarian of Congress.
       (D) 4 private individuals with interests in improving 
     United States and Russian relations, designated by the 
     Librarian of Congress.

     Each member appointed under this paragraph shall serve for a 
     term of 3 years. Any vacancy shall be filled in the same 
     manner as the original appointment and the individual so 
     appointed shall serve for the remainder of the term. Members 
     of the Board shall serve without pay, but shall be entitled 
     to reimbursement for travel, subsistence, and other necessary 
     expenses incurred in the performance of their duties.
       (b) Purpose and Authority of the Center.--
       (1) Purpose.--The purpose of the Center is to establish, in 
     accordance with the provisions of paragraph (2), a program to 
     enable emerging political leaders of Russia at all levels of 
     government to gain significant, firsthand exposure to the 
     American free market economic system and the operation of 
     American democratic institutions through visits to 
     governments and communities at comparable levels in the 
     United States.
       (2) Grant program.--Subject to the provisions of paragraphs 
     (3) and (4), the Center shall establish a program under which 
     the Center annually awards grants to government or community 
     organizations in the United States that seek to establish 
     programs under which those organizations will host Russian 
     nationals who are emerging political leaders at any level of 
     government.
       (3) Restrictions.--
       (A) Duration.--The period of stay in the United States for 
     any individual supported with grant funds under the program 
     shall not exceed 30 days.
       (B) Limitation.--The number of individuals supported with 
     grant funds under the program shall not exceed 3,000 in any 
     fiscal year.
       (C) Use of funds.--Grant funds under the program shall be 
     used to pay--
       (i) the costs and expenses incurred by each program 
     participant in traveling between Russia and the United States 
     and in traveling within the United States;
       (ii) the costs of providing lodging in the United States to 
     each program participant, whether in public accommodations or 
     in private homes; and
       (iii) such additional administrative expenses incurred by 
     organizations in carrying out the program as the Center may 
     prescribe.
       (4) Application.--
       (A) In general.--Each organization in the United States 
     desiring a grant under this section shall submit an 
     application to the Center at such time, in such manner, and 
     accompanied by such information as the Center may reasonably 
     require.
       (B) Contents.--Each application submitted pursuant to 
     subparagraph (A) shall--
       (i) describe the activities for which assistance under this 
     section is sought;
       (ii) include the number of program participants to be 
     supported;
       (iii) describe the qualifications of the individuals who 
     will be participating in the program; and
       (iv) provide such additional assurances as the Center 
     determines to be essential to ensure compliance with the 
     requirements of this section.
       (c) Establishment of Fund.--
       (1) In general.--There is established in the Treasury of 
     the United States a trust fund to be known as the ``Russian 
     Leadership Development Center Trust Fund'' (the ``Fund'') 
     which shall consist of amounts which may be appropriated, 
     credited, or transferred to it under this section.
       (2) Donations.--Any money or other property donated, 
     bequeathed, or devised to the Center under the authority of 
     this section shall be credited to the Fund.
       (3) Fund management.--
       (A) In general.--The provisions of subsections (b), (c), 
     and (d) of section 116 of the Legislative Branch 
     Appropriations Act, 1989 (2 U.S.C. 1105 (b), (c), and (d)), 
     and the provisions of section 117(b) of such Act (2 U.S.C. 
     1106(b)), shall apply to the Fund.
       (B) Expenditures.--The Secretary of the Treasury is 
     authorized to pay to the Center from amounts in the Fund such 
     sums as the Board of Trustees of the Center determines are 
     necessary and appropriate to enable the Center to carry out 
     the provisions of this section.
       (d) Executive Director.--The Board shall appoint an 
     Executive Director who shall be the chief executive officer 
     of the Center and who shall carry out the functions of the 
     Center subject to the supervision and direction of the Board 
     of Trustees. The Executive Director of the Center shall be 
     compensated at the annual rate specified by the Board, but in 
     no event shall such rate exceed level III of the Executive 
     Schedule under section 5314 of title 5, United States Code.
       (e) Administrative Provisions.--
       (1) In general.--The provisions of section 119 of the 
     Legislative Branch Appropriations Act, 1989 (2 U.S.C. 1108) 
     shall apply to the Center.
       (2) Support provided by library of congress.--The Library 
     of Congress may disburse

[[Page 26800]]

     funds appropriated to the Center, compute and disburse the 
     basic pay for all personnel of the Center, provide 
     administrative, legal, financial management, and other 
     appropriate services to the Center, and collect from the Fund 
     the full costs of providing services under this paragraph, as 
     provided under an agreement for services ordered under 
     sections 1535 and 1536 of title 31, United States Code.
       (f ) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.
       (g) Transfer of Funds.--Any amounts appropriated for use in 
     the program established under section 3011 of the 1999 
     Emergency Supplemental Appropriations Act (Public Law 106-31; 
     113 Stat. 93) shall be transferred to the Fund and shall 
     remain available without fiscal year limitation.
       (h) Effective Dates.--
       (1) In general.--This section shall take effect on the date 
     of enactment of this Act.
       (2) Transfer.--Subsection (g) shall only apply to amounts 
     which remain unexpended on and after the date the Board of 
     Trustees of the Center certifies to the Librarian of Congress 
     that grants are ready to be made under the program 
     established under this section.
       Sec. 314. Review of Proposed Changes to Export Thresholds 
     for Computers. Not more than 50 days after the date of the 
     submission of the report referred to in subsection (d) of 
     section 1211 of the National Defense Authorization Act for 
     Fiscal Year 1998 (50 U.S.C. App. 2404 note), the Comptroller 
     General of the United States shall submit an assessment to 
     Congress which contains an analysis of the new computer 
     performance levels being proposed by the President under such 
     section.

    TITLE IV--EMERGENCY FISCAL YEAR 2000 SUPPLEMENTAL APPROPRIATIONS

       The following sums are appropriated out of any money in the 
     Treasury not otherwise appropriated, to provide additional 
     emergency supplemental appropriations for the Legislative 
     Branch for the fiscal year ending September 30, 2000, and for 
     other purposes, namely:

                          Capitol Police Board

                         security enhancements

       For an additional amount for the Capitol Police Board for 
     costs associated with security enhancements, under the terms 
     and conditions of chapter 5 of title II of division B of the 
     Omnibus Consolidated and Emergency Supplemental 
     Appropriations Act, 1999 (Public Law 105-277), $2,102,000, to 
     remain available until expended, of which--
       (1) $228,000 shall be for the acquisition and installation 
     of card readers for 4 additional access points which are not 
     currently funded under the implementation of the security 
     enhancement plan; and
       (2) $1,874,000 shall be for security enhancements to the 
     buildings and grounds of the Library of Congress:

     Provided, That the entire amount is designated by Congress as 
     an emergency requirement pursuant to section 251(b)(2)(A) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended: Provided further, That the entire amount 
     shall be available only to the extent an official budget 
     request for a specific dollar amount that includes 
     designation of the entire amount of the request as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.

                        ARCHITECT OF THE CAPITOL

                     Capitol Buildings and Grounds


                         house office buildings

       For an additional amount for necessary expenses for urgent 
     repairs to the underground garage in the Cannon House Office 
     Building, $9,000,000, to remain available until expended: 
     Provided, That the entire amount is designated by the 
     Congress as an emergency requirement pursuant to section 
     251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended: Provided further, That the 
     entire amount shall be available only to the extent an 
     official budget request for a specific dollar amount that 
     includes designation of the entire amount of the request as 
     an emergency requirement as defined in the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                     Federal Housing Administration


             FHA--General and Special Risk Program Account

       For an additional amount for FHA--General and special risk 
     program account for the cost of guaranteed loans, as 
     authorized by sections 238 and 519 of the National Housing 
     Act (12 U.S.C. 1715z-3 and 1735c), including the cost of loan 
     modifications (as that term is defined in section 502 of the 
     Congressional Budget Act of 1974, as amended), $40,000,000, 
     to remain available until expended: Provided, That the entire 
     amount shall be available only to the extent an official 
     budget request, that includes designation of the entire 
     amount of the request as an emergency requirement as defined 
     in the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended, is transmitted by the President to the 
     Congress: Provided further, That the entire amount is 
     designated by the Congress as an emergency requirement 
     pursuant to section 251(b)(2)(A) of the Balanced Budget and 
     Emergency Deficit Control Act: Provided further, That the 
     funding under this heading shall only be made available upon 
     the submission of a certification by the Secretary of Housing 
     and Urban Development to the Committees on Appropriations 
     that all funds committed, expended, or obligated under this 
     heading in the Departments of Veterans Affairs and Housing 
     and Urban Development, Independent Agencies Appropriations 
     Act, 2000 were committed, expended or obligated in compliance 
     with the Antideficiency Act (31 U.S.C. 1341).
       Sec. 401. Appropriations made by this title are available 
     immediately upon enactment of this Act.
       This Act may be cited as the ``Legislative Branch 
     Appropriations Act, 2001''.

                   LEGISLATIVE BRANCH APPROPRIATIONS

       Following is explanatory language on H.R. 5657, as 
     introduced on December 14, 2000.
       The conferees on H.R. 4577 agree with the matter included 
     in H.R. 5657 and enacted in this conference report by 
     reference and the following description. This bill was 
     developed through negotiations by conferees on the 
     differences in H.R. 4516. References in the following 
     description to the ``conference agreement'' mean the matter 
     included in the introduced bill enacted by this conference 
     report. References to the House bill mean the House passed 
     version of H.R. 4516. References to the Senate bill or Senate 
     amendment mean the Senate reported version of H.R. 4516.


                   legislative branch appropriations

       Many items in both House and Senate Legislative Branch 
     Appropriations bills are identical and are included in the 
     conference agreement without change. The conferees have 
     endorsed statements or policy contained in the House and 
     Senate reports accompanying the appropriations bills, unless 
     amended or restated herein. The conferees have agreed to drop 
     without prejudice the direction in the House report under the 
     heading, Information Security, subsumed under ``LEGISLATIVE 
     BRANCH WIDE MATTERS''. With respect to those items in the 
     conference agreement that differ between House and Senate 
     bills, the conferees have agreed to the following with the 
     appropriate section numbers, punctuation, and other technical 
     corrections:

                   TITLE I--CONGRESSIONAL OPERATIONS

                                 Senate

       Appropriates $506,797,300 for Senate operations, and 
     includes, at the request of the managers on the part of the 
     Senate, an amendment adding $250,000, an amendment containing 
     the traditional death gratuity upon the death of a Senator, 
     and an amendment to Section 8. Inasmuch as this item relates 
     solely to the Senate, and in accord with long practice under 
     which each body determines its own housekeeping requirements 
     and the other concurs without intervention, the managers on 
     the part of the House, at the request of the managers on the 
     part of the Senate, have receded to the Senate.

                        House of Representatives

       At the request of the managers on the part of the House, an 
     enrollment error in the House bill has been corrected and an 
     administrative provision has been added to provide funds for 
     a special education need. Inasmuch as this item relates 
     solely to the House, and in accord with long practice under 
     which each body determines its own housekeeping requirements 
     and the other concurs without intervention, the managers on 
     the part of the Senate, at the request of the managers on the 
     part of the House, have receded to the House.

                              Joint Items


            Joint Committee on Inaugural Ceremonies of 2001

                         salaries and expenses

       Appropriates $1,000,000 for the Joint Committee on 
     Inaugural Ceremonies of 2001 as proposed by the Senate, 
     amending two dates.


                        Administrative Provision

       The conferees have amended the administrative provision 
     proposed by the House regarding assistance for the Capitol 
     Police during the Inauguration in January 2001 and the 2001 
     joint session of Congress to receive the State of the Union 
     message.


                        Joint Economic Committee

       Appropriates $3,315,000 for the Joint Economic Committee as 
     proposed by the Senate instead of $3,072,000 as proposed by 
     the House.


                      Joint Committee on Taxation

       Appropriates $6,430,000 for the Joint Committee on Taxation 
     instead of $6,174,000 as proposed by the House and $6,686,000 
     as proposed by the Senate. The conferees believe that this 
     level of funding is sufficient for the Joint Committee on 
     Taxation to complete its report on the overall state of the 
     Federal tax system.

                          CAPITOL POLICE BOARD

                             Capitol Police


                                salaries

       Appropriates $97,142,000 for salaries of officers, members, 
     and employees of the Capitol Police instead of $92,769,000 as 
     proposed by the House and $102,700,000 as proposed by the 
     Senate, of which $47,053,000 is provided to the Sergeant at 
     Arms of the House of Representatives and $50,089,000 is 
     provided to the Sergeant at Arms and Doorkeeper of the 
     Senate. Of the amount provided, $4,660,000 is for overtime.

[[Page 26801]]

       The conferees have agreed this will fund 1,481 FTE's, the 
     level proposed by the Senate. The Chief of Police is directed 
     to secure the approval of the House and Senate Appropriations 
     Committees before filling positions above the level of 1,402 
     FTE's. The conferees intend that sufficient resources be 
     allocated to implement the ``two officers per door'' policy. 
     The Police are directed to study the posting requirements of 
     all posts and report to the House and Senate Appropriations 
     Committees. Until such a study is presented, the police are 
     authorized an FTE level of 1402.


                            general expenses

       Appropriates $6,772,000 for general expenses of the Capitol 
     Police instead of $6,549,000 as proposed by the House and 
     $6,884,000 as proposed by the Senate. The funds provide 
     $103,000 for motorcycle replacement, and the conferees direct 
     that the Capitol Police continue the program begun in FY 2000 
     to utilize American-made motorcycles, targeting the funds 
     made available in this agreement towards smaller motorcycles. 
     In addition, the conferees have not included reimbursement 
     for telecommunications costs ($235,000) and direct that these 
     savings be applied to other programs. Items for installation 
     and maintenance of physical security and information security 
     measures shall not be less than the FY 2000 funded level.


                       Administrative Provisions

       The conferees have included two administrative provisions 
     proposed by the House relating to certifying officers and a 
     chief administrative officer. The conferees have also added a 
     provision adjusting the salary of the chief of the Capitol 
     police.


           Capitol Guide Service and Special Services Office

       Appropriates $2,371,000 for the Capitol Guide Service and 
     Special Services Office as proposed by the Senate instead of 
     $2,201,000 as proposed by the House.


                      Statements of Appropriations

       Appropriates $30,000 for statements of appropriations as 
     proposed by the Senate instead of $29,000 as proposed by the 
     House and makes technical changes.

                          OFFICE OF COMPLIANCE

       Appropriates $1,820,000 for the Office of Compliance 
     instead of $1,816,000 as proposed by the House and $2,066,000 
     as proposed by the Senate. The conferees note that Office of 
     Compliance telephones frequently are not answered during 
     normal business hours. As an agency providing service to 
     employees and agencies of the Legislative branch, the 
     Executive Director should ensure that calls to the Office of 
     Compliance are answered during normal business hours. In 
     addition, the conferees believe the Executive Director should 
     examine the use of contract couriers to make deliveries to 
     Congressional offices and should reduce costs for such 
     deliveries by use of other means when appropriate.

                      CONGRESSIONAL BUDGET OFFICE

                         Salaries and Expenses

       Establishes the limitation on funds for representation and 
     reception expenses at $3,000 as proposed by the House instead 
     of $2,500 as proposed by the Senate and appropriates 
     $28,493,000 for salaries and expenses of the Congressional 
     Budget Office instead of $27,403,000 as proposed by the House 
     and $27,113,000 as proposed by the Senate.
       The conferees have included an administrative provision, as 
     proposed by the Senate, authorizing the Congressional Budget 
     Office to enter into multiple year contracts to the same 
     extent as executive agencies.

                        ARCHITECT OF THE CAPITOL

                     Capitol Buildings and Grounds


                           capitol buildings

                         salaries and expenses

       Appropriates $43,689,000 for salaries and expenses, Capitol 
     buildings, Architect of the Capitol, instead of $44,234,000 
     as proposed by the House and $44,191,000 as proposed by the 
     Senate. Of this amount, $3,843,000 shall remain available 
     until expended instead of $4,280,000 as proposed by the House 
     and $4,255,000 as proposed by the Senate. With respect to 
     object class and project differences between the House and 
     Senate bills, the conferees have agreed to the following:

Operating Budget:...........................................$39,346,000
Capitol Projects:
   1.  Update electrical system drawings on CAD..................70,000
   2.  CAD Mechanical database...................................70,000
   3.  Conservation of wall paintings...........................200,000
   4.  Study, confined spaces, Capitol Complex........................0
   5.  Replacement on Minton tile...............................100,000
   6.  Provide infrastructure for security installations........400,000
   7.  Computer, telecommunications and electrical support......300,000
   8.  Security project support for AOC...............................0
   9.  Roof fall protection.....................................555,000
  10.  Life safety support services...................................0
  11.  Safety and environmental program and SOP development...........0
  12.  Wayfinding and ADA compliant signage......................50,000
  13.   Computer aided facility management......................263,000

       The conference agreement includes a provision authorizing 
     the Architect of the Capitol to hire a project manager for 
     the construction of the Capitol Visitors Center and 
     establishing a ceiling on the level of pay for this position. 
     The conferees direct the Architect to fill this position from 
     among persons recruited from outside the agency. The language 
     authorizing the position and funding for same will require 
     inclusion in annual appropriations bills and will be 
     withdrawn upon completion of the project.
       The conferees have agreed to modify the Senate report 
     language directing the Architect to create and fill a 
     position for employee advocate. The conferees direct that the 
     Architect fill the position of Employee Advocate on a one-
     year, temporary basis, using existing resources, at a level 
     appropriate to the task. In the submission of the FY 2002 
     budget request, the Architect is directed to report on 
     measures taken to fulfill directives in the Senate report in 
     lieu of the quarterly reports outlined in the Senate report 
     regarding this position. The House and Senate Committees on 
     Appropriations will review the results of this temporary 
     measure before considering a permanent solution.
       The conferees are aware that the Architect of the Capitol 
     employs a significant number of temporary workers (excluding 
     intermittent workers) who do not receive the usual benefits 
     available to permanent federal workers. The Architect is 
     directed to provide a report within 90 days to the Senate 
     Committees on Appropriations and Rules and Administration, 
     and to the House Committees on Appropriations, Transportation 
     and Infrastructure, and House Administration, both majority 
     and minority, detailing its use of temporary workers, the 
     terms and conditions thereof, and the reasons therefor; the 
     total number of such workers employed during each of the last 
     five fiscal years; and a list and explanation of the 
     benefits, if any, such workers receive by reason of their AOC 
     employment. The report shall make recommendations for how to 
     provide such workers access to federal benefits and a list of 
     any alternatives that may exist to the use of temporary 
     workers.
       The conferees are concerned about a class-action suit 
     against the Architect (Harris et al. v. Architect of the 
     Capitol). The Architect is urged to make every effort to 
     settle this lawsuit as expeditiously as possible, and to 
     report to the House and Senate Committees on Appropriations 
     within 45 days on the status of the case.


                            capitol grounds

       Appropriates $5,362,000 to the Architect of the Capitol for 
     care and improvement of grounds surrounding the Capitol, 
     House and Senate office buildings, and the Capitol power 
     plant instead of $5,217,000 as proposed by the House and 
     $5,512,000 as proposed by the Senate. Of this amount, 
     $125,000 shall remain available until expended instead of 
     $25,000 as proposed by the House and $225,000 as proposed by 
     the Senate. With respect to object class and project 
     differences between the House and Senate bills, the conferees 
     have agreed to the following:

Operating Budget.............................................$5,127,000
Capitol Projects:
  1.  CAD database development--site utilities..................110,000
  2.  Wayfinding and ADA compliant signage......................100,000


                        senate office buildings

       Appropriates $63,974,000 to the Architect of the Capitol as 
     proposed by the Senate, of which $21,669,000 shall remain 
     available until expended, for the operations of the Senate 
     office buildings. Inasmuch as this item relates solely to the 
     Senate, and in accord with long practice under which each 
     body determines its own housekeeping requirements and the 
     other concurs without intervention, the managers on the part 
     of the House, at the request of the managers on the part of 
     the Senate, have receded to the Senate.


                         house office buildings

       Appropriates $32,750,000 to the Architect of the Capitol as 
     proposed by the House, of which $123,000 shall remain 
     available until expended, for the operations of the House 
     office buildings. Inasmuch as this item relates solely to the 
     House, and in accord with long practice under which each body 
     determines its own housekeeping requirements and the other 
     concurs without intervention, the managers on the part of the 
     Senate, at the request of the managers on the part of the 
     House, have receded to the House.


                          capitol power plant

       In addition to the $4,400,000 available from receipts, 
     appropriates $39,415,000 to the Architect of the Capitol for 
     Capitol power plant operations instead of $39,151,000 as 
     proposed by the House and $39,569,000 as proposed by the 
     Senate. Of this amount, $523,000 shall remain available until 
     expended as proposed by the Senate instead of $200,000 as 
     proposed by the House. With respect to object class and 
     project differences between the House and Senate bills, the 
     conferees have agreed to the following:


[[Page 26802]]


Operating Budget:
  1.  Personnel compensation..................................4,467,000
  2.  Other expenses.........................................34,110,000
Capital Projects:
  1.  Study, heat balance/efficiency improvements.....................0
  2.  Update CAD drawings........................................65,000
  3.  Roof fall protection......................................323,000

                          LIBRARY OF CONGRESS

                     Congressional Research Service


                         salaries and expenses

       Appropriates $73,592,000 for salaries and expenses, 
     Congressional Research Service, Library of Congress instead 
     of $73,810,000 as proposed by the House and $73,374,000 as 
     proposed by the Senate. In keeping with both the complete 
     research and maximum practicable administrative independence 
     of the Congressional Research Service, it is the conferees' 
     intent that the Director of the Congressional Research 
     Service shall be obligated to bring to the attention of the 
     appropriate House and Senate Committees issues which directly 
     impact the Congressional Research Service and its ability to 
     serve the needs of Congress. The budgetary needs of CRS that 
     may not be adequately addressed in the annual budget 
     submission should be raised with the Appropriations 
     Committees.

                       GOVERNMENT PRINTING OFFICE

                   Congressional Printing and Binding

       Appropriates $71,462,000 for Congressional printing and 
     binding instead of $69,626,000 as proposed by the House and 
     $73,297,000 as proposed by the Senate. The conference 
     agreement includes a heading and provision for transfer of 
     balances for preceding fiscal years to the Government 
     Printing Office revolving fund as proposed by the House and 
     language proposed by the Senate to provide for printing and 
     binding for the Architect of the Capitol and for preparing 
     the semimonthly and session indexes for the Congressional 
     Record.
       Rather than limiting funding for the Congressional Record 
     Index and indexers to close out activities, as directed in 
     the House report, the conferees agree that this activity 
     should continue and that improvements in work processes 
     should be pursued by taking advantage of the latest available 
     technology. These activities and initiatives should be more 
     closely integrated and coordinated with related GPO functions 
     and should be pursued under the direction of the Public 
     Printer or appropriate officials designated by the Public 
     Printer.

                        Administrative Provision

       The conference agreement amends an administrative provision 
     proposed by the House regarding a study of Congressional 
     printing needs and authorization of appropriations beginning 
     in fiscal year 2003 to limit its application to the Clerk of 
     the House and the printing needs of the House of 
     Representatives.

                        TITLE II--OTHER AGENCIES

                             BOTANIC GARDEN

                         Salaries and Expenses

       Appropriates $3,328,000 for salaries and expenses, Botanic 
     Garden instead of $3,216,000 as proposed by the House and 
     $3,653,000 as proposed by the Senate of which $25,000 shall 
     remain available until expended instead of $150,000 as 
     proposed by the Senate. With respect to object class and 
     project differences between the House and Senate bills, the 
     conferees have agreed to the following:

Operating Budget.............................................$3,303,000
Capitol Projects:
  1.  Replace equipment at growing facilities.........................0
  2.  Wayfinding signage.........................................25,000

                          LIBRARY OF CONGRESS

                         Salaries and Expenses

       Provides $282,838,000 for salaries and expenses, Library of 
     Congress instead of $269,864,000 as proposed by the House and 
     $267,330,000 as proposed by the Senate. Of this amount, 
     $6,850,000 is made available from receipts collected by the 
     Library of Congress, and $10,459,575 is to remain available 
     until expended for acquisition of library materials as 
     proposed by the House instead of $10,398,600 as proposed by 
     the Senate. With respect to differences between the House and 
     Senate bills, the conferees have agreed to the following:

 1.  Mandatories.............................................$8,459,000
 2.  Price level.............................................-1,920,000
 3.  Russian Leadership Program..............................10,000,000
 4.  Hands Across America.....................................5,957,800
 5.  Arrearage reduction........................................500,000
 6.  Mass deacidification.....................................1,216,000
 7.  National Film Preservation Board...........................250,000
 8.  Digitization pilot with West Point.........................404,000
 9.  Digitization non-personal costs $........................7,590,000
10.  Ft. Meade Storage: One-time costs.........................-406,000
11.  Ft. Meade Storage: Open module one.........................618,000
12.  Automation: National Digital Library servers and storage...300,000
13.  Security Office..........................................2,342,000
14.  High-speed transmission line.............................4,300,000

       The conference agreement includes funds for four programs, 
     to remain available until expended. One provision, for 
     $5,957,800, is for teaching educators how to incorporate the 
     Library's digital collection into school curricula. A second 
     provision provides $404,000 for a digitization pilot project 
     with the Military Academy at West Point. A third provision 
     provides $10,000,000 to continue the Russian Leadership 
     Program for FY2001. A fourth provision provides $4,300,000 to 
     the Library of Congress to develop high speed data 
     transmission between the Library of Congress and educational 
     facilities, libraries, or networks serving the National 
     Digital Library pilot program. The Library is directed to 
     investigate the most cost effective method of providing this 
     capability and take the necessary steps to develop the 
     capability within the resources available. Any remaining 
     balance not required for the development of the high speed 
     data transmission is available for support of the Library's 
     digital futures initiative.
       The conferees agree with language in the House report 
     directing the Library to employ students at the Ft. Meade 
     remote storage facility and with language in the Senate 
     report directing the Library to devote all available 
     resources to elimination of cataloging arrearage.
       The conferees are aware that a task force has been 
     established at the Library of Congress to explore the 
     feasibility and desirability of instituting a telecommuting 
     program for the Library. The conferees encourage the 
     Librarian to consider a telecommuting program for the Library 
     (including the Congressional Research Service), and to 
     include a description of the program with his next budget 
     submission.

                            Copyright Office


                         salaries and expenses

       Provides $38,523,000, including $29,283,000 made available 
     from receipts, for salaries and expenses, Copyright Office 
     instead of $38,771,000, including $31,783,000 from receipts, 
     as proposed by the House and $38,332,000, including 
     $26,783,000 from receipts, as proposed by the Senate. With 
     respect to differences between the House and Senate bills, 
     the conferees have agreed to the following:

Salaries....................................................$31,318,000
Expenses......................................................7,205,000

             Books for the Blind and Physically Handicapped


                         salaries and expenses

       Appropriates $48,609,000 for salaries and expenses, books 
     for the blind and physically handicapped instead of 
     $48,507,000 as proposed by the House and $48,711,000 as 
     proposed by the Senate. Of this amount, $14,154,000 shall 
     remain available until expended as proposed by the Senate 
     instead of $14,135,000 as proposed by the House.

                       Furniture and Furnishings

       Appropriates $4,892,000 for furniture and furnishings at 
     the Library of Congress as proposed by the Senate instead of 
     $5,394,000 as proposed by the House.

                       Administrative Provisions

       Various technical corrections and section number changes 
     have been made. In Section 201, the conferees have agreed to 
     an overall limitation of $199,630 on funds available for 
     attendance at meetings as proposed by the House and a 
     limitation of $59,300 on CRS attendance at meetings as 
     proposed by the House. The conference agreement includes 
     Section 202 as proposed by the House. The conferees have 
     modified the scope of accounts available for transfer 
     authority to include transfers only from the furniture and 
     furnishings account and not to it. The conference agreement 
     does not include the separation incentives proposed by the 
     House. The conferees have authorized use of appropriated 
     funds to pay the employer share of benefit costs for 
     employees of the Library of Congress child care center.

                        ARCHITECT OF THE CAPITOL

                     Library Buildings and Grounds


                     structural and mechanical care

       Appropriates $15,970,000 for structural and mechanical 
     care, Library buildings and grounds, Architect of the Capitol 
     instead of $15,837,000 as proposed by the House and 
     $16,347,000 as proposed by the Senate. With respect to object 
     class and project differences between the House and Senate 
     bills, the conferees have agreed to the following:

Operating Budget:
  1.  Personnel compensation and benefits....................$7,959,000
  2.  Annual expenses.........................................1,966,000
Capitol Projects:
  3.  Preservations environmental monitoring..........................0
  4.  Replace HVAC variable speed drive motor....................90,000
  5.  Room and partition modifications..........................165,000
  6.  Replace partition supports................................200,000
  7.  Lightning protection, Madison building....................190,000

                       GOVERNMENT PRINTING OFFICE

                 Office of Superintendent of Documents


                         salaries and expenses

       Appropriates $27,954,000 for salaries and expenses, Office 
     of the Superintendent of Documents instead of $25,652,000 as 
     proposed by

[[Page 26803]]

     the House and $30,255,000 as proposed by the Senate. The 
     conferees have retained the heading ``Transfer of Funds'' as 
     proposed by the House and ``distribution'' to replace the 
     wording, ``on-line access'', within the appropriating 
     paragraph as proposed by the Senate. The conferees have 
     included the Senate language for the appropriating provision 
     on the availability of $2,000,000 from the appropriation and 
     the appropriation provision authorizing transfer of funds as 
     proposed by the House.
       The conferees recognize that the funding level provided may 
     require adjustments in historically applicable program 
     services and agree that no employee layoffs will be required. 
     Emphasis should be on streamlining the distribution of 
     traditional paper copies of publications which may include 
     providing online access and less expensive electronic 
     formats. The conferees agree to the transfer of unexpended 
     funds proposed by the House, which provides additional 
     flexibility in meeting program requirements.
       The conferees have agreed to modify the language in the 
     House report directing the Congressional Research Service to 
     conduct a study and direct that the General Accounting Office 
     shall conduct a comprehensive study on the impact of 
     providing documents to the public solely in electronic 
     format. The study shall include: (1) a current inventory of 
     publications and documents which are provided to the public, 
     (2) the frequency with which each type of publication or 
     document is requested for deposit at non-regional depository 
     libraries, and (3) an assessment of the feasibility of 
     transfer of the depository library program to the Library of 
     Congress that: Identifies how such a transfer might be 
     accomplished; Identifies when such a transfer might optimally 
     occur; Examines the functions, services, and programs of the 
     Superintendent of Documents; Examines and identifies 
     administrative and infrastructure support that is provided to 
     the Superintendent by the Government Printing Office, with a 
     view to the implications for such a transfer; Examines and 
     identifies the costs, for both the Government Printing Office 
     and the Library of Congress, of such a transfer; Identifies 
     measures that are necessary to ensure the success of such a 
     transfer.
       The study shall be submitted to the Committee on House 
     Administration and the Senate Committee on Rules and 
     Administration by March 30, 2001.

                        Administrative Provision

       The conferees have not included a provision proposed by the 
     Senate amending 44 U.S.C. 1708.

                       GENERAL ACCOUNTING OFFICE

                         Salaries and Expenses

       Appropriates $384,867,000 for salaries and expenses, 
     General Accounting Office as proposed by the Senate instead 
     of $368,896,000 as proposed by the House. Within the 
     appropriating paragraph, the conferees have set the 
     limitation on representation expenses at $10,000 as proposed 
     by the House, instead of $7,000 as proposed by the Senate and 
     made technical corrections to two other matters.
       The General Accounting Office shall undertake a study of 
     the effects on air pollution caused by all polluting sources, 
     including automobiles and the electric power generation 
     emissions of the Tennessee Valley Authority on the Great 
     Smoky Mountains National Park, the Blue Ridge Parkway and the 
     Pisgah, Nantahla, and Cherokee National Forests. This study 
     will also include the amount of carbon emissions avoided by 
     the use of non-emitting electricity sources such as nuclear 
     power within the same region. The GAO shall report to the 
     Committees on Appropriations no later than January 31, 2001.

                       Administrative Provisions

       The conferees have not included several administrative 
     provisions proposed by the Senate.

                     TITLE III--GENERAL PROVISIONS

       In Title III, General Provisions, section numbers have been 
     changed to conform to the conference agreement and technical 
     corrections have been made. The conferees have included a 
     liquidated damages provision proposed by the House. The 
     conferees have included provisions proposed by the Senate 
     changing a date and extending the Russian Leadership Program. 
     The conferees have not included a proposed merger of various 
     law enforcement activities and have amended language in the 
     Senate bill regarding the placement of statues in Statuary 
     Hall. The conferees have adjusted the limitation on the 
     National Garden and have agreed to establish a Center for 
     Russian Leadership Development as proposed by the Senate. A 
     Sense of the Senate provision and a limitation on the use of 
     pesticides have not been included. There is a provision 
     regarding an assessment by the General Accounting Office of a 
     report referred to in the National Defense Authorization Act 
     for Fiscal Year 1998.

           TITLE IV--FISCAL YEAR 2000 EMERGENCY SUPPLEMENTAL

       The conferees have included several Fiscal Year 2000 
     supplemental appropriation items that require urgent 
     attention and are considered emergency situations.

                           LEGISLATIVE BRANCH

                              JOINT ITEMS

                          Capitol Police Board


                         security enhancements

       The conference agreement provides an additional $2,102,000 
     for Fiscal Year 2000 to the Capitol Police Board for security 
     enhancements. Of this amount, $228,000 are for acquisition 
     and installation of card readers for four additional Capitol 
     buildings access points not currently funded in the security 
     enhancements plan. In addition, $1,874,000 is provided for 
     work at the Library of Congress to complete the closed 
     circuit television ($1,390,000) and access control ($484,000) 
     improvement tasks. These funds are designated as an emergency 
     requirement.

                        ARCHITECT OF THE CAPITOL

                     Capitol Buildings And Grounds


                         house office buildings

       The conference agreement appropriates $9,000,000 for Fiscal 
     Year 2000 to the Architect of the Capitol for urgent repairs 
     to the underground garage in the Cannon House Office 
     Building. These funds are designated as an emergency 
     requirement.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                     FEDERAL HOUSING ADMINISTRATION

             FHA--General and Special Risk Program Account

       At the request of the House and Senate subcommittees on VA, 
     HUD and Independent Agencies Appropriations, the conferees 
     have agreed to include a provision for the Department of 
     Housing and Urban Development (HUD) that provides, on an 
     emergency basis, $40,000,000 in credit subsidy for the FHA 
     General and Special Risk Program Account. Without these 
     additional funds, the Title I home improvement program, the 
     condominium loan program, the FHA reverse mortgage program 
     for senior citizens, and various multifamily housing 
     insurance programs would have to be suspended. The additional 
     appropriation would have been unnecessary if HUD had adhered 
     to assumptions made by the Office of Management and Budget 
     (OMB) in determining credit subsidy rates when the 
     President's budget was submitted to Congress, a violation of 
     budget conventions. In the future, HUD should refrain from 
     similar actions.

                   CONFERENCE TOTAL--WITH COMPARISONS

       The total new budget (obligational) authority for the 
     fiscal year 2001 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 2000 amount, the 2001 
     budget estimates, and the House and Senate bills for 2001 
     follow:

                       [In thousands of dollars]

New budget (obligational) authority, fiscal year 2000........$2,475,080
Budget estimates of new (obligational) authority, fiscal year 2,725,604
House bill, fiscal year 2001..................................1,913,691
Senate bill, fiscal year 2001.................................2,523,378
Conference agreement, fiscal year 2001........................2,526,863
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 2000.........+51,783
  Budget estimates of new (obligational) authority, fiscal year-198,741
  House bill, fiscal year 2001.................................+613,172
  Senate bill, fiscal year 2001..................................+3,485
Title IV--FY 2000 Emergency Supplemental.........................51,102

 TREASURY DEPARTMENT, THE UNITED STATES POSTAL SERVICE, THE EXECUTIVE 
       OFFICE OF THE PRESIDENT, AND CERTAIN INDEPENDENT AGENCIES 
                             APPROPRIATIONS

       The conference agreement would enact the provisions of H.R. 
     5658 as introduced on December 14, 2000. The text of that 
     bill follows:
     A BILL Making appropriations for the Treasury Department, the 
     United States Postal Service, the Executive Office of the 
     President, and certain Independent Agencies for the fiscal 
     year ending September 30, 2001, and for other purposes
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, That the 
     following sums are appropriated, out of any money in the 
     Treasury not otherwise appropriated, for the Treasury 
     Department, the United States Postal Service, the Executive 
     Office of the President, and certain Independent Agencies for 
     the fiscal year ending September 30, 2001, and for other 
     purposes, namely:

                  TITLE I--DEPARTMENT OF THE TREASURY

                          Departmental Offices


                         salaries and expenses

       For necessary expenses of the Departmental Offices 
     including operation and maintenance of the Treasury Building 
     and Annex; hire of passenger motor vehicles; maintenance, 
     repairs, and improvements of, and purchase of commercial 
     insurance policies for, real properties leased or owned 
     overseas, when necessary for the performance of official 
     business; not to exceed $2,900,000 for official travel 
     expenses; not to exceed $3,813,000, to remain available until 
     expended for information technology modernization 
     requirements; not to exceed $150,000 for official reception 
     and representation expenses;

[[Page 26804]]

     not to exceed $258,000 for unforeseen emergencies of a 
     confidential nature, to be allocated and expended under the 
     direction of the Secretary of the Treasury and to be 
     accounted for solely on his certificate, $156,315,000: 
     Provided, That the Office of Foreign Assets Control shall be 
     funded at no less than $11,439,000: Provided further, That of 
     these amounts $2,900,000 is available for grants to State and 
     local law enforcement groups to help fight money laundering.

        Department-Wide Systems and Capital Investments Programs


                     (including transfer of funds)

       For development and acquisition of automatic data 
     processing equipment, software, and services for the 
     Department of the Treasury, $47,287,000, to remain available 
     until expended: Provided, That these funds shall be 
     transferred to accounts and in amounts as necessary to 
     satisfy the requirements of the Department's offices, 
     bureaus, and other organizations: Provided further, That this 
     transfer authority shall be in addition to any other transfer 
     authority provided in this Act: Provided further, That none 
     of the funds appropriated shall be used to support or 
     supplement the Internal Revenue Service appropriations for 
     Information Systems.

                      Office of Inspector General


                         salaries and expenses

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978, as amended, not to exceed $2,000,000 for official 
     travel expenses, including hire of passenger motor vehicles; 
     and not to exceed $100,000 for unforeseen emergencies of a 
     confidential nature, to be allocated and expended under the 
     direction of the Inspector General of the Treasury, 
     $32,899,000.

           Treasury Inspector General for Tax Administration


                         salaries and expenses

       For necessary expenses of the Treasury Inspector General 
     for Tax Administration in carrying out the Inspector General 
     Act of 1978, as amended, including purchase (not to exceed 
     150 for replacement only for police-type use) and hire of 
     passenger motor vehicles (31 U.S.C. 1343(b)); services 
     authorized by 5 U.S.C. 3109, at such rates as may be 
     determined by the Inspector General for Tax Administration; 
     not to exceed $6,000,000 for official travel expenses; and 
     not to exceed $500,000 for unforeseen emergencies of a 
     confidential nature, to be allocated and expended under the 
     direction of the Inspector General for Tax Administration, 
     $118,427,000.

           Treasury Building and Annex Repair and Restoration

       For the repair, alteration, and improvement of the Treasury 
     Building and Annex, $31,000,000, to remain available until 
     expended.

                 Expanded Access to Financial Services


                     (including transfer of funds)

       To develop and implement programs to expand access to 
     financial services for low- and moderate-income individuals, 
     $2,000,000, to remain available until expended: Provided, 
     That of these funds, such sums as may be necessary may be 
     transferred to accounts of the Department's offices, bureaus, 
     and other organizations: Provided further, That this transfer 
     authority shall be in addition to any other transfer 
     authority provided in this Act.

                  Financial Crimes Enforcement Network


                         salaries and expenses

       For necessary expenses of the Financial Crimes Enforcement 
     Network, including hire of passenger motor vehicles; travel 
     expenses of non-Federal law enforcement personnel to attend 
     meetings concerned with financial intelligence activities, 
     law enforcement, and financial regulation; not to exceed 
     $14,000 for official reception and representation expenses; 
     and for assistance to Federal law enforcement agencies, with 
     or without reimbursement, $37,576,000, of which not to exceed 
     $2,800,000 shall remain available until September 30, 2003; 
     and of which $2,275,000 shall remain available until 
     September 30, 2002: Provided, That funds appropriated in this 
     account may be used to procure personal services contracts.

                         Counterterrorism Fund

       For necessary expenses, as determined by the Secretary, 
     $55,000,000, to remain available until expended, to reimburse 
     any Department of the Treasury organization for the costs of 
     providing support to counter, investigate, or prosecute 
     terrorism, including payment of rewards in connection with 
     these activities: Provided, That the entire amount is 
     designated by the Congress as an emergency requirement 
     pursuant to section 251(b)(2)(A) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended: Provided 
     further, That the entire amount shall be available only to 
     the extent that an official budget request for a specific 
     dollar amount that includes designation of the entire amount 
     of the request as an emergency requirement as defined in such 
     Act is transmitted by the President to the Congress.

                Federal Law Enforcement Training Center


                         Salaries and Expenses

       For necessary expenses of the Federal Law Enforcement 
     Training Center, as a bureau of the Department of the 
     Treasury, including materials and support costs of Federal 
     law enforcement basic training; purchase (not to exceed 52 
     for police-type use, without regard to the general purchase 
     price limitation) and hire of passenger motor vehicles; for 
     expenses for student athletic and related activities; 
     uniforms without regard to the general purchase price 
     limitation for the current fiscal year; the conducting of and 
     participating in firearms matches and presentation of awards; 
     for public awareness and enhancing community support of law 
     enforcement training; not to exceed $11,500 for official 
     reception and representation expenses; room and board for 
     student interns; and services as authorized by 5 U.S.C. 3109, 
     $94,483,000, of which up to $17,043,000 for materials and 
     support costs of Federal law enforcement basic training shall 
     remain available until September 30, 2003: Provided, That the 
     Center is authorized to accept and use gifts of property, 
     both real and personal, and to accept services, for 
     authorized purposes, including funding of a gift of intrinsic 
     value which shall be awarded annually by the Director of the 
     Center to the outstanding student who graduated from a basic 
     training program at the Center during the previous fiscal 
     year, which shall be funded only by gifts received through 
     the Center's gift authority: Provided further, That 
     notwithstanding any other provision of law, students 
     attending training at any Federal Law Enforcement Training 
     Center site shall reside in on-Center or Center-provided 
     housing, insofar as available and in accordance with Center 
     policy: Provided further, That funds appropriated in this 
     account shall be available, at the discretion of the 
     Director, for the following: training United States Postal 
     Service law enforcement personnel and Postal police officers; 
     State and local government law enforcement training on a 
     space-available basis; training of foreign law enforcement 
     officials on a space-available basis with reimbursement of 
     actual costs to this appropriation, except that reimbursement 
     may be waived by the Secretary for law enforcement training 
     activities in foreign countries undertaken pursuant to 
     section 801 of the Antiterrorism and Effective Death Penalty 
     Act of 1996, Public Law 104-32; training of private sector 
     security officials on a space-available basis with 
     reimbursement of actual costs to this appropriation; and 
     travel expenses of non-Federal personnel to attend course 
     development meetings and training sponsored by the Center: 
     Provided further, That the Center is authorized to obligate 
     funds in anticipation of reimbursements from agencies 
     receiving training sponsored by the Federal Law Enforcement 
     Training Center, except that total obligations at the end of 
     the fiscal year shall not exceed total budgetary resources 
     available at the end of the fiscal year: Provided further, 
     That the Federal Law Enforcement Training Center is 
     authorized to provide training for the Gang Resistance 
     Education and Training program to Federal and non-Federal 
     personnel at any facility in partnership with the Bureau of 
     Alcohol, Tobacco and Firearms: Provided further, That the 
     Federal Law Enforcement Training Center is authorized to 
     provide short-term medical services for students undergoing 
     training at the Center.
       For expansion of the Federal Law Enforcement Training 
     Center, for acquisition of necessary additional real property 
     and facilities, and for ongoing maintenance, facility 
     improvements, and related expenses, $29,205,000, to remain 
     available until expended.

                      Interagency Law Enforcement


                 Interagency Crime and Drug Enforcement

       For expenses necessary to conduct investigations and 
     convict offenders involved in organized crime drug 
     trafficking, including cooperative efforts with State and 
     local law enforcement, as it relates to the Treasury 
     Department law enforcement violations such as money 
     laundering, violent crime, and smuggling, $103,476,000, of 
     which $7,827,000 shall remain available until expended.

                      Financial Management Service


                         Salaries and Expenses

       For necessary expenses of the Financial Management Service, 
     $206,851,000, of which not to exceed $10,635,000 shall remain 
     available until September 30, 2003, for information systems 
     modernization initiatives; and of which not to exceed $2,500 
     shall be available for official reception and representation 
     expenses.

                Bureau of Alcohol, Tobacco and Firearms


                         Salaries and Expenses

       For necessary expenses of the Bureau of Alcohol, Tobacco 
     and Firearms, including purchase of not to exceed 812 
     vehicles for police-type use, of which 650 shall be for 
     replacement only, and hire of passenger motor vehicles; hire 
     of aircraft; services of expert witnesses at such rates as 
     may be determined by the Director; for payment of per diem 
     and/or subsistence allowances to employees where a major 
     investigative assignment requires an employee to work 16 
     hours or more per day or to remain overnight at his or her 
     post of duty; not to exceed $20,000 for official reception 
     and representation expenses; for training of State and local 
     law enforcement agencies with or without reimbursement, 
     including training in connection with the training and 
     acquisition of canines for explosives and fire accelerants 
     detection; not to exceed $50,000 for cooperative research and 
     development programs for Laboratory Services and Fire 
     Research Center activities; and provision of laboratory 
     assistance to State and local agencies, with or without 
     reimbursement, $768,695,000, of which not to exceed 
     $1,000,000 shall be available for the payment of attorneys' 
     fees as provided by 18 U.S.C. 924(d)(2); of which up to 
     $2,000,000 shall be available for the equipping of any 
     vessel, vehicle, equipment, or air craft available for 
     official use by a State or local law enforcement agency if 
     the conveyance will be used in joint law enforcement 
     operations with the Bureau of Alcohol, Tobacco and Firearms 
     and for the payment of overtime salaries including Social 
     Security and Medicare, travel, fuel, training, equipment,

[[Page 26805]]

     supplies, and other similar costs of State and local law 
     enforcement personnel, including sworn officers and support 
     personnel, that are incurred in joint operations with the 
     Bureau of Alcohol, Tobacco and Firearms: Provided, That no 
     funds made available by this or any other Act may be used to 
     transfer the functions, missions, or activities of the Bureau 
     of Alcohol, Tobacco and Firearms to other agencies or 
     Departments in fiscal year 2001: Provided further, That no 
     funds appropriated herein shall be available for salaries or 
     administrative expenses in connection with consolidating or 
     centralizing, within the Department of the Treasury, the 
     records, or any portion thereof, of acquisition and 
     disposition of firearms maintained by Federal firearms 
     licensees: Provided further, That no funds appropriated 
     herein shall be used to pay administrative expenses or the 
     compensation of any officer or employee of the United States 
     to implement an amendment or amendments to 27 CFR 178.118 or 
     to change the definition of ``Curios or relics'' in 27 CFR 
     178.11 or remove any item from ATF Publication 5300.11 as it 
     existed on January 1, 1994: Provided further, That none of 
     the funds appropriated herein shall be available to 
     investigate or act upon applications for relief from Federal 
     firearms disabilities under 18 U.S.C. 925(c): Provided 
     further, That such funds shall be available to investigate 
     and act upon applications filed by corporations for relief 
     from Federal firearms disabilities under 18 U.S.C. 925(c): 
     Provided further, That no funds under this Act may be used to 
     electronically retrieve information gathered pursuant to 18 
     U.S.C. 923(g)(4) by name or any personal identification code.

                     United States Customs Service


                         Salaries and Expenses

       For necessary expenses of the United States Customs 
     Service, including purchase and lease of up to 1,050 motor 
     vehicles of which 550 are for replacement only and of which 
     1,030 are for police-type use and commercial operations; hire 
     of motor vehicles; contracting with individuals for personal 
     services abroad; not to exceed $40,000 for official reception 
     and representation expenses; and awards of compensation to 
     informers, as authorized by any Act enforced by the United 
     States Customs Service, $1,863,765,000, of which such sums as 
     become available in the Customs User Fee Account, except sums 
     subject to section 13031(f)(3) of the Consolidated Omnibus 
     Budget Reconciliation Act of 1985, as amended (19 U.S.C. 
     58c(f)(3)), shall be derived from that Account; of the total, 
     not to exceed $150,000 shall be available for payment for 
     rental space in connection with preclearance operations; not 
     to exceed $4,000,000 shall be available until expended for 
     research; of which not less than $100,000 shall be available 
     to promote public awareness of the child pornography tipline; 
     of which not less than $200,000 shall be available for 
     Project Alert; not to exceed $5,000,000 shall be available 
     until expended for conducting special operations pursuant to 
     19 U.S.C. 2081; not to exceed $8,000,000 shall be available 
     until expended for the procurement of automation 
     infrastructure items, including hardware, software, and 
     installation; and not to exceed $5,000,000 shall be available 
     until expended for repairs to Customs facilities: Provided, 
     That uniforms may be purchased without regard to the general 
     purchase price limitation for the current fiscal year: 
     Provided further, That notwithstanding any other provision of 
     law, the fiscal year aggregate overtime limitation prescribed 
     in subsection 5(c)(1) of the Act of February 13, 1911 (19 
     U.S.C. 261 and 267) shall be $30,000.


                   HARBOR MAINTENANCE FEE COLLECTION

                     (Including Transfer of funds)

       For administrative expenses related to the collection of 
     the Harbor Maintenance Fee, pursuant to Public Law 103-182, 
     $3,000,000, to be derived from the Harbor Maintenance Trust 
     Fund and to be transferred to and merged with the Customs 
     ``Salaries and Expenses'' account for such purposes.


  operation, maintenance and procurement, air and marine interdiction 
                                programs

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of marine vessels, aircraft, and 
     other related equipment of the Air and Marine Programs, 
     including operational training and mission-related travel, 
     and rental payments for facilities occupied by the air or 
     marine interdiction and demand reduction programs, the 
     operations of which include the following: the interdiction 
     of narcotics and other goods; the provision of support to 
     Customs and other Federal, State, and local agencies in the 
     enforcement or administration of laws enforced by the Customs 
     Service; and, at the discretion of the Commissioner of 
     Customs, the provision of assistance to Federal, State, and 
     local agencies in other law enforcement and emergency 
     humanitarian efforts, $133,228,000, which shall remain 
     available until expended: Provided, That no aircraft or other 
     related equipment, with the exception of aircraft which is 
     one of a kind and has been identified as excess to Customs 
     requirements and aircraft which has been damaged beyond 
     repair, shall be transferred to any other Federal agency, 
     department, or office outside of the Department of the 
     Treasury, during fiscal year 2001 without the prior approval 
     of the Committees on Appropriations.


                        Automation Modernization

       For expenses not otherwise provided for Customs automated 
     systems, $258,400,000, to remain available until expended, of 
     which $5,400,000 shall be for the International Trade Data 
     System, and not less than $130,000,000 shall be for the 
     development of the Automated Commercial Environment: 
     Provided, That none of the funds appropriated under this 
     heading may be obligated for the Automated Commercial 
     Environment until the United States Customs Service prepares 
     and submits to the Committees on Appropriations a final plan 
     for expenditure that: (1) meets the capital planning and 
     investment control review requirements established by the 
     Office of Management and Budget, including OMB Circular A-11, 
     part 3; (2) complies with the United States Customs Service's 
     Enterprise Information Systems Architecture; (3) complies 
     with the acquisition rules, requirements, guidelines, and 
     systems acquisition management practices of the Federal 
     Government; (4) is reviewed and approved by the Customs 
     Investment Review Board, the Department of the Treasury, and 
     the Office of Management and Budget; and (5) is reviewed by 
     the General Accounting Office: Provided further, That none of 
     the funds appropriated under this heading may be obligated 
     for the Automated Commercial Environment until that final 
     expenditure plan has been approved by the Committees on 
     Appropriations.

                       Bureau of the Public Debt


                     administering the public debt

       For necessary expenses connected with any public-debt 
     issues of the United States, $187,301,000, of which not to 
     exceed $2,500 shall be available for official reception and 
     representation expenses, and of which not to exceed 
     $2,000,000 shall remain available until expended for systems 
     modernization: Provided, That the sum appropriated herein 
     from the General Fund for fiscal year 2001 shall be reduced 
     by not more than $4,400,000 as definitive security issue fees 
     and Treasury Direct Investor Account Maintenance fees are 
     collected, so as to result in a final fiscal year 2001 
     appropriation from the General Fund estimated at 
     $182,901,000. In addition, $23,600, to be derived from the 
     Oil Spill Liability Trust Fund to reimburse the Bureau for 
     administrative and personnel expenses for financial 
     management of the Fund, as authorized by section 1012 of 
     Public Law 101-380; and in addition, to be appropriated from 
     the General Fund, such sums as may be necessary for 
     administrative expenses in association with the South Dakota 
     Trust Fund and the Cheyenne River Sioux Tribe Terrestrial 
     Wildlife Restoration and Lower Brule Sioux Tribe Terrestrial 
     Restoration Trust Fund, as authorized by sections 603(f) and 
     604(f) of Public Law 106-53.

                        Internal Revenue Service


                 Processing, Assistance, and Management

       For necessary expenses of the Internal Revenue Service for 
     tax returns processing; revenue accounting; tax law and 
     account assistance to taxpayers by telephone and 
     correspondence; providing an independent taxpayer advocate 
     within the Service; programs to match information returns and 
     tax returns; management services; rent and utilities; and 
     services as authorized by 5 U.S.C. 3109, at such rates as may 
     be determined by the Commissioner, $3,567,001,000, of which 
     up to $3,950,000 shall be for the Tax Counseling for the 
     Elderly Program, and of which not to exceed $25,000 shall be 
     for official reception and representation expenses.


                          Tax Law Enforcement

       For necessary expenses of the Internal Revenue Service for 
     determining and establishing tax liabilities; providing 
     litigation support; issuing technical rulings; providing 
     service to tax exempt customers, including employee plans, 
     tax exempt organizations, and government entities; examining 
     employee plans and exempt organizations; conducting criminal 
     investigation and enforcement activities; securing unfiled 
     tax returns; collecting unpaid accounts; compiling statistics 
     of income and conducting compliance research; purchase (for 
     police-type use, not to exceed 850) and hire of passenger 
     motor vehicles (31 U.S.C. 1343(b)); and services as 
     authorized by 5 U.S.C. 3109, at such rates as may be 
     determined by the Commissioner, $3,382,402,000, of which not 
     to exceed $1,000,000 shall remain available until September 
     30, 2003, for research.


             earned income tax credit compliance initiative

       For funding essential earned income tax credit compliance 
     and error reduction initiatives pursuant to section 5702 of 
     the Balanced Budget Act of 1997 (Public Law 105-33), 
     $145,000,000, of which not to exceed $10,000,000 may be used 
     to reimburse the Social Security Administration for the costs 
     of implementing section 1090 of the Taxpayer Relief Act of 
     1997.


                          Information Systems

       For necessary expenses of the Internal Revenue Service for 
     information systems and telecommunications support, including 
     developmental information systems and operational information 
     systems; the hire of passenger motor vehicles (31 U.S.C. 
     1343(b)); and services as authorized by 5 U.S.C. 3109, at 
     such rates as may be determined by the Commissioner, 
     $1,545,090,000 which shall remain available until September 
     30, 2002.


          administrative provisions--internal revenue service

       Sec. 101. Not to exceed 5 percent of any appropriation made 
     available in this Act to the Internal Revenue Service may be 
     transferred to any other Internal Revenue Service 
     appropriation upon the advance approval of the Committees on 
     Appropriations.
       Sec. 102. The Internal Revenue Service shall maintain a 
     training program to ensure that Internal Revenue Service 
     employees are trained in taxpayers' rights, in dealing 
     courteously with the taxpayers, and in cross-cultural 
     relations.
       Sec. 103. The Internal Revenue Service shall institute and 
     enforce policies and procedures that will safeguard the 
     confidentiality of taxpayer information.

[[Page 26806]]

       Sec. 104. Funds made available by this or any other Act to 
     the Internal Revenue Service shall be available for improved 
     facilities and increased manpower to provide sufficient and 
     effective 1-800 help line service for taxpayers. The 
     Commissioner shall continue to make the improvement of the 
     Internal Revenue Service 1-800 help line service a priority 
     and allocate resources necessary to increase phone lines and 
     staff to improve the Internal Revenue Service 1-800 help line 
     service.

                      United States Secret Service


                         salaries and expenses

       For necessary expenses of the United States Secret Service, 
     including purchase of not to exceed 844 vehicles for police-
     type use, of which 541 shall be for replacement only, and 
     hire of passenger motor vehicles; purchase of American-made 
     side-car compatible motorcycles; hire of aircraft; training 
     and assistance requested by State and local governments, 
     which may be provided without reimbursement; services of 
     expert witnesses at such rates as may be determined by the 
     Director; rental of buildings in the District of Columbia, 
     and fencing, lighting, guard booths, and other facilities on 
     private or other property not in Government ownership or 
     control, as may be necessary to perform protective functions; 
     for payment of per diem and/or subsistence allowances to 
     employees where a protective assignment during the actual day 
     or days of the visit of a protectee require an employee to 
     work 16 hours per day or to remain overnight at his or her 
     post of duty; the conducting of and participating in firearms 
     matches; presentation of awards; for travel of Secret Service 
     employees on protective missions without regard to the 
     limitations on such expenditures in this or any other Act if 
     approval is obtained in advance from the Committees on 
     Appropriations; for research and development; for making 
     grants to conduct behavioral research in support of 
     protective research and operations; not to exceed $25,000 for 
     official reception and representation expenses; not to exceed 
     $100,000 to provide technical assistance and equipment to 
     foreign law enforcement organizations in counterfeit 
     investigations; for payment in advance for commercial 
     accommodations as may be necessary to perform protective 
     functions; and for uniforms without regard to the general 
     purchase price limitation for the current fiscal year, 
     $823,800,000, of which $3,633,000 shall be available as a 
     grant for activities related to the investigations of 
     exploited children and shall remain available until expended: 
     Provided, That up to $18,000,000 provided for protective 
     travel shall remain available until September 30, 2002.


     acquisition, construction, improvements, and related expenses

       For necessary expenses of construction, repair, alteration, 
     and improvement of facilities, $8,941,000, to remain 
     available until expended.

             General Provisions--Department of the Treasury

       Sec. 110. Any obligation or expenditure by the Secretary of 
     the Treasury in connection with law enforcement activities of 
     a Federal agency or a Department of the Treasury law 
     enforcement organization in accordance with 31 U.S.C. 
     9703(g)(4)(B) from unobligated balances remaining in the Fund 
     on September 30, 2001, shall be made in compliance with 
     reprogramming guidelines.
       Sec. 111. Appropriations to the Department of the Treasury 
     in this Act shall be available for uniforms or allowances 
     therefor, as authorized by law (5 U.S.C. 5901), including 
     maintenance, repairs, and cleaning; purchase of insurance for 
     official motor vehicles operated in foreign countries; 
     purchase of motor vehicles without regard to the general 
     purchase price limitations for vehicles purchased and used 
     overseas for the current fiscal year; entering into contracts 
     with the Department of State for the furnishing of health and 
     medical services to employees and their dependents serving in 
     foreign countries; and services authorized by 5 U.S.C. 3109.
       Sec. 112. The funds provided to the Bureau of Alcohol, 
     Tobacco and Firearms for fiscal year 2001 in this Act for the 
     enforcement of the Federal Alcohol Administration Act shall 
     be expended in a manner so as not to diminish enforcement 
     efforts with respect to section 105 of the Federal Alcohol 
     Administration Act.
       Sec. 113. Not to exceed 2 percent of any appropriations in 
     this Act made available to the Federal Law Enforcement 
     Training Center, Financial Crimes Enforcement Network, Bureau 
     of Alcohol, Tobacco and Firearms, United States Customs 
     Service, and United States Secret Service may be transferred 
     between such appropriations upon the advance approval of the 
     Committees on Appropriations. No transfer may increase or 
     decrease any such appropriation by more than 2 percent.
       Sec. 114. Not to exceed 2 percent of any appropriations in 
     this Act made available to the Departmental Offices, Office 
     of Inspector General, Treasury Inspector General for Tax 
     Administration, Financial Management Service, and Bureau of 
     the Public Debt, may be transferred between such 
     appropriations upon the advance approval of the Committees on 
     Appropriations. No transfer may increase or decrease any such 
     appropriation by more than 2 percent.
       Sec. 115. Not to exceed 2 percent of any appropriation made 
     available in this Act to the Internal Revenue Service may be 
     transferred to the Treasury Inspector General for Tax 
     Administration's appropriation upon the advance approval of 
     the Committees on Appropriations. No transfer may increase or 
     decrease any such appropriation by more than 2 percent.
       Sec. 116. Of the funds available for the purchase of law 
     enforcement vehicles, no funds may be obligated until the 
     Secretary of the Treasury certifies that the purchase by the 
     respective Treasury bureau is consistent with Departmental 
     vehicle management principles: Provided, That the Secretary 
     may delegate this authority to the Assistant Secretary for 
     Management.
       Sec. 117. None of the funds appropriated in this Act or 
     otherwise available to the Department of the Treasury or the 
     Bureau of Engraving and Printing may be used to redesign the 
     $1 Federal Reserve note.
       Sec. 118. Hereafter, funds made available by this or any 
     other Act may be used to pay premium pay for protective 
     services authorized by section 3056(a) of title 18, United 
     States Code, without regard to the limitation on the rate of 
     pay payable during a pay period contained in section 
     5547(c)(2) of title 5, United States Code, except that such 
     premium pay shall not be payable to an employee to the extent 
     that the aggregate of the employee's basic and premium pay 
     for the year would otherwise exceed the annual equivalent of 
     that limitation. The term premium pay refers to the 
     provisions of law cited in the first sentence of section 
     5547(a) of title 5, United States Code. Payment of additional 
     premium pay payable under this section may be made in a lump 
     sum on the last payday of the calendar year.
       Sec. 119. The Secretary of the Treasury may transfer funds 
     from ``Salaries and Expenses'', Financial Management Service, 
     to the Debt Services Account as necessary to cover the costs 
     of debt collection: Provided, That such amounts shall be 
     reimbursed to such Salaries and Expenses account from debt 
     collections received in the Debt Services Account.
       Sec. 120. Under the heading of Treasury Franchise Fund in 
     Public Law 104-208, delete the following: the phrases 
     ``pilot, as authorized by section 403 of Public Law 103-
     356,''; and ``as provided in such section''; and the final 
     proviso. After the phrase ``to be available'', insert 
     ``without fiscal year limitation,''. After the phrase, 
     ``established in the Treasury a franchise fund'', insert, 
     ``until October 1, 2002''.
       Sec. 121. Notwithstanding any other provision of law, no 
     reorganization of the field operations of the United States 
     Customs Service Office of Field Operations shall result in a 
     reduction in service to the area served by the Port of 
     Racine, Wisconsin, below the level of service provided in 
     fiscal year 2000.
       Sec. 122. Notwithstanding any other provision of law, the 
     Bureau of Alcohol, Tobacco and Firearms shall reimburse the 
     subcontractor that provided services in 1993 and 1994 
     pursuant to Bureau of Alcohol, Tobacco and Firearms contract 
     number TATF 93-3 from amounts appropriated for fiscal year 
     2001 or unobligated balances from prior fiscal years, and 
     such reimbursement shall cover the cost of all professional 
     services rendered, plus interest calculated in accordance 
     with the Contract Dispute Act of 1978 (41 U.S.C. 601 et seq.)
       This title may be cited as the ``Treasury Department 
     Appropriations Act, 2001''.

                        TITLE II--POSTAL SERVICE

                   Payment to the Postal Service Fund

       For payment to the Postal Service Fund for revenue forgone 
     on free and reduced rate mail, pursuant to subsections (c) 
     and (d) of section 2401 of title 39, United States Code, 
     $96,093,000, of which $67,093,000 shall not be available for 
     obligation until October 1, 2001: Provided, That mail for 
     overseas voting and mail for the blind shall continue to be 
     free: Provided further, That 6-day delivery and rural 
     delivery of mail shall continue at not less than the 1983 
     level: Provided further, That none of the funds made 
     available to the Postal Service by this Act shall be used to 
     implement any rule, regulation, or policy of charging any 
     officer or employee of any State or local child support 
     enforcement agency, or any individual participating in a 
     State or local program of child support enforcement, a fee 
     for information requested or provided concerning an address 
     of a postal customer: Provided further, That none of the 
     funds provided in this Act shall be used to consolidate or 
     close small rural and other small post offices in fiscal year 
     2001.
       This title may be cited as the ``Postal Service 
     Appropriations Act, 2001''.

TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO 
                             THE PRESIDENT

        Compensation of the President and the White House Office


                     compensation of the president

       For compensation of the President, including an expense 
     allowance at the rate of $50,000 per annum as authorized by 3 
     U.S.C. 102, $390,000: Provided, That none of the funds made 
     available for official expenses shall be expended for any 
     other purpose and any unused amount shall revert to the 
     Treasury pursuant to section 1552 of title 31, United States 
     Code: Provided further, That none of the funds made available 
     for official expenses shall be considered as taxable to the 
     President.


                         salaries and expenses

       For necessary expenses for the White House as authorized by 
     law, including not to exceed $3,850,000 for services as 
     authorized by 5 U.S.C. 3109 and 3 U.S.C. 105; subsistence 
     expenses as authorized by 3 U.S.C. 105, which shall be 
     expended and accounted for as provided in that section; hire 
     of passenger motor vehicles, newspapers, periodicals, 
     teletype news service, and travel (not to exceed $100,000 to 
     be expended and accounted for as provided by 3 U.S.C. 103); 
     and

[[Page 26807]]

     not to exceed $19,000 for official entertainment expenses, to 
     be available for allocation within the Executive Office of 
     the President, $53,288,000: Provided, That $9,072,000 of the 
     funds appropriated shall be available for reimbursements to 
     the White House Communications Agency.

                 Executive Residence at the White House


                           operating expenses

       For the care, maintenance, repair and alteration, 
     refurnishing, improvement, heating, and lighting, including 
     electric power and fixtures, of the Executive Residence at 
     the White House and official entertainment expenses of the 
     President, $10,900,000, to be expended and accounted for as 
     provided by 3 U.S.C. 105, 109, 110, and 112-114.


                         reimbursable expenses

       For the reimbursable expenses of the Executive Residence at 
     the White House, such sums as may be necessary: Provided, 
     That all reimbursable operating expenses of the Executive 
     Residence shall be made in accordance with the provisions of 
     this paragraph: Provided further, That, notwithstanding any 
     other provision of law, such amount for reimbursable 
     operating expenses shall be the exclusive authority of the 
     Executive Residence to incur obligations and to receive 
     offsetting collections, for such expenses: Provided further, 
     That the Executive Residence shall require each person 
     sponsoring a reimbursable political event to pay in advance 
     an amount equal to the estimated cost of the event, and all 
     such advance payments shall be credited to this account and 
     remain available until expended: Provided further, That the 
     Executive Residence shall require the national committee of 
     the political party of the President to maintain on deposit 
     $25,000, to be separately accounted for and available for 
     expenses relating to reimbursable political events sponsored 
     by such committee during such fiscal year: Provided further, 
     That the Executive Residence shall ensure that a written 
     notice of any amount owed for a reimbursable operating 
     expense under this paragraph is submitted to the person owing 
     such amount within 60 days after such expense is incurred, 
     and that such amount is collected within 30 days after the 
     submission of such notice: Provided further, That the 
     Executive Residence shall charge interest and assess 
     penalties and other charges on any such amount that is not 
     reimbursed within such 30 days, in accordance with the 
     interest and penalty provisions applicable to an outstanding 
     debt on a United States Government claim under section 3717 
     of title 31, United States Code: Provided further, That each 
     such amount that is reimbursed, and any accompanying interest 
     and charges, shall be deposited in the Treasury as 
     miscellaneous receipts: Provided further, That the Executive 
     Residence shall prepare and submit to the Committees on 
     Appropriations, by not later than 90 days after the end of 
     the fiscal year covered by this Act, a report setting forth 
     the reimbursable operating expenses of the Executive 
     Residence during the preceding fiscal year, including the 
     total amount of such expenses, the amount of such total that 
     consists of reimbursable official and ceremonial events, the 
     amount of such total that consists of reimbursable political 
     events, and the portion of each such amount that has been 
     reimbursed as of the date of the report: Provided further, 
     That the Executive Residence shall maintain a system for the 
     tracking of expenses related to reimbursable events within 
     the Executive Residence that includes a standard for the 
     classification of any such expense as political or 
     nonpolitical: Provided further, That no provision of this 
     paragraph may be construed to exempt the Executive Residence 
     from any other applicable requirement of subchapter I or II 
     of chapter 37 of title 31, United States Code.


                   White House Repair and Restoration

       For the repair, alteration, and improvement of the 
     Executive Residence at the White House, $968,000, to remain 
     available until expanded, for projects for required 
     maintenance, safety and health issues, Presidential 
     transition, telecommunications infrastructure repair, and 
     continued preventive maintenance.

 Special Assistance to the President and the Official Residence of the 
                             Vice President


                         salaries and expenses

       For necessary expenses to enable the Vice President to 
     provide assistance to the President in connection with 
     specially assigned functions; services as authorized by 5 
     U.S.C. 3109 and 3 U.S.C. 106, including subsistence expenses 
     as authorized by 3 U.S.C. 106, which shall be expended and 
     accounted for as provided in that section; and hire of 
     passenger motor vehicles, $3,673,000.


                           Operating Expenses

                     (INCLUDING TRANSFER OF FUNDS)

       For the care, operation, refurnishing, improvement, heating 
     and lighting, including electric power and fixtures, of the 
     official residence of the Vice President; the hire of 
     passenger motor vehicles; and not to exceed $90,000 for 
     official entertainment expenses of the Vice President, to be 
     accounted for solely on his certificate, $354,000: Provided, 
     That advances or repayments or transfers from this 
     appropriation may be made to any department or agency for 
     expenses of carrying out such activities.

                      Council of Economic Advisers


                         salaries and expenses

       For necessary expenses of the Council of Economic Advisors 
     in carrying out its functions under the Employment Act of 
     1946 (15 U.S.C. 1021), $4,110,000.

                      Office of Policy Development


                         salaries and expenses

       For necessary expenses of the Office of Policy Development, 
     including services as authorized by 5 U.S.C. 3109 and 3 
     U.S.C. 107, $4,032,000.

                       National Security Council


                         salaries and expenses

       For necessary expenses of the National Security Council, 
     including services as authorized by 5 U.S.C. 3109, 
     $7,165,000.

                        Office of Administration


                         salaries and expenses

       For necessary expenses of the Office of Administration, 
     including services as authorized by 5 U.S.C. 3109 and 3 
     U.S.C. 107, and hire of passenger motor vehicles, 
     $43,737,000, of which $9,905,000 shall be available until 
     September 30, 2002 for a capital investment plan which 
     provides for the continued modernization of the information 
     technology infrastructure.

                    Office of Management and Budget


                         salaries and expenses

       For necessary expenses of the Office of Management and 
     Budget, including hire of passenger motor vehicles and 
     services as authorized by 5 U.S.C. 3109, $68,786,000, of 
     which not to exceed $5,000,000 shall be available to carry 
     out the provisions of chapter 35 of title 44, United States 
     Code: Provided, That, as provided in 31 U.S.C. 1301(a), 
     appropriations shall be applied only to the objects for which 
     appropriations were made except as otherwise provided by law: 
     Provided further, That none of the funds appropriated in this 
     Act for the Office of Management and Budget may be used for 
     the purpose of reviewing any agricultural marketing orders or 
     any activities or regulations under the provisions of the 
     Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601 et 
     seq.): Provided further, That none of the funds made 
     available for the Office of Management and Budget by this Act 
     may be expended for the altering of the transcript of actual 
     testimony of witnesses, except for testimony of officials of 
     the Office of Management and Budget, before the Committees on 
     Appropriations or the Committees on Veterans' Affairs or 
     their subcommittees: Provided further, That the preceding 
     shall not apply to printed hearings released by the 
     Committees on Appropriations or the Committees on Veterans' 
     Affairs.

                 Office of National Drug Control Policy


                         Salaries and Expenses

                     (including transfer of funds)

       For necessary expenses of the Office of National Drug 
     Control Policy; for research activities pursuant to the 
     Office of National Drug Control Policy Reauthorization Act of 
     1998 (title VII of division C of Public Law 105-277); not to 
     exceed $8,000 for official reception and representation 
     expenses; and for participation in joint projects or in the 
     provision of services on matters of mutual interest with 
     nonprofit, research, or public organizations or agencies, 
     with or without reimbursement, $24,759,000, of which 
     $2,100,000 shall remain available until expended, consisting 
     of $1,100,000 for policy research and evaluation, and 
     $1,000,000 for the National Alliance for Model State Drug 
     Laws, and up to $600,000 for the evaluation of the Drug-Free 
     Communities Act: Provided, That the Office is authorized to 
     accept, hold, administer, and utilize gifts, both real and 
     personal, public and private, without fiscal year limitation, 
     for the purpose of aiding or facilitating the work of the 
     Office.


                COUNTERDRUG TECHNOLOGY ASSESSMENT CENTER

                     (including transfer of funds)

       For necessary expenses for the Counterdrug Technology 
     Assessment Center for research activities pursuant to the 
     Office of National Drug Control Policy Reauthorization Act of 
     1998 (title VII of Division C of Public Law 105-277), 
     $29,053,000, which shall remain available until expended, 
     consisting of $15,803,000 for counternarcotics research and 
     development projects, and $13,250,000 for the continued 
     operation of the technology transfer program: Provided, That 
     the $15,803,000 for counter-narcotics research and 
     development projects shall be available for transfer to other 
     Federal departments or agencies.

                     Federal Drug Control Programs


             high intensity drug trafficking areas program

                     (including transfer of funds)

       For necessary expenses of the Office of National Drug 
     Control Policy's High Intensity Drug Trafficking Areas 
     Program, $206,500,000 for drug control activities consistent 
     with the approved strategy for each of the designated High 
     Intensity Drug Trafficking Areas, of which no less than 51 
     percent shall be transferred to State and local entities for 
     drug control activities, which shall be obligated within 120 
     days of the date of the enactment of this Act: Provided, That 
     up to 49 percent, to remain available until September 30, 
     2002, may be transferred to Federal agencies and departments 
     at a rate to be determined by the Director: Provided further, 
     That, of this latter amount, $1,800,000 shall be used for 
     auditing services: Provided further, That HIDTAs designated 
     as of September 30, 2000, shall be funded at fiscal year 2000 
     levels unless the Director submits to the Committees, and the 
     Committees approve, justification for changes in those levels 
     based on clearly articulated priorities for the HIDTA 
     program, as well as published ONDCP performance measures of 
     effectiveness.

[[Page 26808]]




                        Special Forfeiture Fund

                     (including transfer of funds)

       For activities to support a national anti-drug campaign for 
     youth, and other purposes, authorized by Public Law 105-277, 
     $233,600,000, to remain available until expended: Provided, 
     That such funds may be transferred to other Federal 
     departments and agencies to carry out such activities: 
     Provided further, That of the funds provided, $185,000,000 
     shall be to support a national media campaign, as authorized 
     in the Drug-Free Media Campaign Act of 1998: Provided 
     further, That of the funds provided, $3,300,000 shall be made 
     available to the United States Olympic Committee's anti-
     doping program no later than 30 days after the enactment of 
     this Act: Provided further, That of the funds provided, 
     $40,000,000 shall be to continue a program of matching grants 
     to drug-free communities, as authorized in the Drug-Free 
     Communities Act of 1997: Provided further, That of the funds 
     provided, $1,000,000 shall be available to the National Drug 
     Court Institute.
       This title may be cited as the ``Executive Office 
     Appropriations Act, 2001''.

                     TITLE IV--INDEPENDENT AGENCIES

 Committee for Purchase From People Who are Blind or Severely Disabled


                         salaries and expenses

       For necessary expenses of the Committee for Purchase From 
     People Who Are Blind or Severely Disabled established by the 
     Act of June 23, 1971, Public Law 92-28, $4,158,000.

                      Federal Election Commission


                         salaries and expenses

       For necessary expenses to carry out the provisions of the 
     Federal Election Campaign Act of 1971, as amended, 
     $40,500,000, of which no less than $4,689,500 shall be 
     available for internal automated data processing systems, and 
     of which not to exceed $5,000 shall be available for 
     reception and representation expenses.

                   Federal Labor Relations Authority


                         salaries and expenses

       For necessary expenses to carry out functions of the 
     Federal Labor Relations Authority, pursuant to Reorganization 
     Plan Numbered 2 of 1978, and the Civil Service Reform Act of 
     1978, including services authorized by 5 U.S.C. 3109, 
     including hire of experts and consultants, hire of passenger 
     motor vehicles, and rental of conference rooms in the 
     District of Columbia and elsewhere, $25,058,000: Provided, 
     That public members of the Federal Service Impasses Panel may 
     be paid travel expenses and per diem in lieu of subsistence 
     as authorized by law (5 U.S.C. 5703) for persons employed 
     intermittently in the Government service, and compensation as 
     authorized by 5 U.S.C. 3109: Provided further, That 
     notwithstanding 31 U.S.C. 3302, funds received from fees 
     charged to non-Federal participants at labor-management 
     relations conferences shall be credited to and merged with 
     this account, to be available without further appropriation 
     for the costs of carrying out these conferences.

                    General Services Administration


                        Real Property Activities

                         Federal Buildings Fund

                 limitations on availability of revenue

                     (including transfer of funds)

       For an additional amount to be deposited in, and to be used 
     for the purposes of, the Fund established pursuant to section 
     210(f) of the Federal Property and Administration Act of 
     1949, as amended (40 U.S.C. 490(f)), $464,154,000. The 
     revenues and collections deposited into the Fund shall be 
     available for necessary expenses of real property management 
     and related activities not otherwise provided for, including 
     operation, maintenance, and protection of federally owned and 
     leased buildings; rental of buildings in the District of 
     Columbia; restoration of leased premises; moving governmental 
     agencies (including space adjustments and telecommunications 
     relocation expenses) in connection with the assignment, 
     allocation and transfer of space; contractual services 
     incident to cleaning or servicing buildings, and moving; 
     repair and alteration of federally owned buildings including 
     grounds, approaches and appurtenances; care and safeguarding 
     of sites; maintenance, preservation, demolition, and 
     equipment; acquisition of buildings and sites by purchase, 
     condemnation, or as otherwise authorized by law; acquisition 
     of options to purchase buildings and sites; conversion and 
     extension of federally owned buildings; preliminary planning 
     and design of projects by contract or otherwise; construction 
     of new buildings (including equipment for such buildings); 
     and payment of principal, interest, and any other obligations 
     for public buildings acquired by installment purchase and 
     purchase contract; in the aggregate amount of $5,971,509,000 
     of which (1) $472,176,000 shall remain available until 
     expended for construction (including funds for sites and 
     expenses and associated design and construction services) of 
     additional projects at the following locations: California, 
     Los Angeles, U.S. Courthouse; District of Columbia, Bureau of 
     Alcohol, Tobacco and Firearms Headquarters; Florida, Saint 
     Petersburg, Combined Law Enforcement Facility; Maryland, 
     Montgomery County, Food and Drug Administration 
     Consolidation; Michigan, Sault St. Marie, Border Station; 
     Mississippi, Biloxi-Gulfport, U.S. Courthouse; Montana, 
     Eureka/Roosville, Border Station; Virginia, Richmond, U.S. 
     Courthouse; Washington, Seattle, U.S. Courthouse: Provided, 
     That funding for any project identified above may be exceeded 
     to the extent that savings are effected in other such 
     projects, but not to exceed 10 percent of the amounts 
     included in an approved prospectus, if required, unless 
     advance approval is obtained from the Committees on 
     Appropriations of a greater amount: Provided further, That 
     all funds for direct construction projects shall expire on 
     September 30, 2002, and remain in the Federal Buildings Fund 
     except for funds for projects as to which funds for design or 
     other funds have been obligated in whole or in part prior to 
     such date; (2) $671,193,000 shall remain available until 
     expended for repairs and alterations which includes 
     associated design and construction services: Provided 
     further, That funds in the Federal Buildings Fund for Repairs 
     and Alterations shall, for prospectus projects, be limited to 
     the amount by project, as follows, except each project may be 
     increased by an amount not to exceed 10 percent unless 
     advance approval is obtained from the Committees on 
     Appropriations of a greater amount:
       Repairs and alterations:
       Arizona:
       Phoenix, Federal Building Courthouse, $26,962,000
       California:
       Santa Ana, Federal Building, $27,864,000
       District of Columbia:
       Internal Revenue Service Headquarters (Phase 1), 
     $31,780,000
       Main State Building, (Phase 3), $28,775,000
       Maryland:
       Woodlawn, SSA National Computer Center, $4,285,000
       Michigan:
       Detroit, McNamara Federal Building, $26,999,000
       Missouri:
       Kansas City, Richard Bolling Federal Building, $25,882,000
       Kansas City, Federal Building, 8930 Ward Parkway, 
     $8,964,000
       Nebraska:
       Omaha, Zorinsky Federal Building, $45,960,000
       New York:
       New York City, 40 Foley Square, $5,037,000
       Ohio:
       Cincinnati, Potter Stewart U.S. Courthouse, $18,434,000
       Pennsylvania:
       Pittsburgh, U.S. Post Office-Courthouse, $54,144,000
       Utah:
       Salt Lake City, Bennett Federal Building, $21,199,000
       Virginia:
       Reston, J.W. Powell Federal Building (Phase 2), $22,993,000
       Nationwide:
       Design Program, $21,915,000
       Energy Program, $5,000,000
       Glass Fragment Retention Program, $5,000,000
       Basic Repairs and Alterations, $290,000,000:
     Provided further, That additional projects for which 
     prospectuses have been fully approved may be funded under 
     this category only if advance notice is transmitted to the 
     Committees on Appropriations: Provided further, That the 
     amounts provided in this or any prior Act for ``Repairs and 
     Alterations'' may be used to fund costs associated with 
     implementing security improvements to buildings necessary to 
     meet the minimum standards for security in accordance with 
     current law and in compliance with the reprogramming 
     guidelines of the appropriate Committees of the House and 
     Senate: Provided further, That the difference between the 
     funds appropriated and expended on any projects in this or 
     any prior Act, under the heading ``Repairs and Alterations'', 
     may be transferred to Basic Repairs and Alterations or used 
     to fund authorized increases in prospectus projects: Provided 
     further, That all funds for repairs and alterations 
     prospectus projects shall expire on September 30, 2002, and 
     remain in the Federal Buildings Fund except funds for 
     projects as to which funds for design or other funds have 
     been obligated in whole or in part prior to such date: 
     Provided further, That the amount provided in this or any 
     prior Act for Basic Repairs and Alterations may be used to 
     pay claims against the Government arising from any projects 
     under the heading ``Repairs and Alterations'' or used to fund 
     authorized increases in prospectus projects; (3) $185,369,000 
     for installment acquisition payments including payments on 
     purchase contracts which shall remain available until 
     expended; (4) $2,944,905,000 for rental of space which shall 
     remain available until expended; and (5) $1,624,771,000 for 
     building operations which shall remain available until 
     expended: Provided further, That in addition to amounts made 
     available herein, $276,400,000 shall be deposited to the 
     Fund, to become available on October 1, 2001, and remain 
     available until expended for the following construction 
     projects (including funds for sites and expenses and 
     associated design and construction services): District of 
     Columbia, U.S. Courthouse Annex; Florida, Miami, U.S. 
     Courthouse; Massachusetts, Springfield, U.S. Courthouse; New 
     York, Buffalo, U.S. Courthouse: Provided further, That 
     funding for any project identified above may be exceeded to 
     the extent that savings are effected in other such projects, 
     but not to exceed 10 percent of the amounts included in an 
     approved prospectus, if required, unless advance approval is 
     obtained from the Committees on Appropriations of a greater 
     amount: Provided further, That funds available to the General 
     Services Administration shall not be available for expenses 
     of any construction, repair, alteration and acquisition 
     project for which a prospectus, if required by the Public 
     Buildings Act of 1959, as amended, has not been approved, 
     except that necessary funds may be expended for each

[[Page 26809]]

     project for required expenses for the development of a 
     proposed prospectus: Provided further, That funds available 
     in the Federal Buildings Fund may be expended for emergency 
     repairs when advance approval is obtained from the Committees 
     on Appropriations: Provided further, That amounts necessary 
     to provide reimbursable special services to other agencies 
     under section 210(f)(6) of the Federal Property and 
     Administrative Services Act of 1949, as amended (40 U.S.C. 
     490(f)(6)) and amounts to provide such reimbursable fencing, 
     lighting, guard booths, and other facilities on private or 
     other property not in Government ownership or control as may 
     be appropriate to enable the United States Secret Service to 
     perform its protective functions pursuant to 18 U.S.C. 3056, 
     shall be available from such revenues and collections: 
     Provided further, That revenues and collections and any other 
     sums accruing to this Fund during fiscal year 2001, excluding 
     reimbursements under section 210(f)(6) of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     490(f)(6)) in excess of $5,971,509,000 shall remain in the 
     Fund and shall not be available for expenditure except as 
     authorized in appropriations Acts.


                         policy and operations

       For expenses authorized by law, not otherwise provided for, 
     for Government-wide policy and oversight activities 
     associated with asset management activities; utilization and 
     donation of surplus personal property; transportation; 
     procurement and supply; Government-wide responsibilities 
     relating to automated data management, telecommunications, 
     information resources management, and related technology 
     activities; utilization survey, deed compliance inspection, 
     appraisal, environmental and cultural analysis, and land use 
     planning functions pertaining to excess and surplus real 
     property; agency-wide policy direction; Board of Contract 
     Appeals; accounting, records management, and other support 
     services incident to adjudication of Indian Tribal Claims by 
     the United States Court of Federal Claims; services as 
     authorized by 5 U.S.C. 3109; and not to exceed $5,000 for 
     official reception and representation expenses, $123,920,000, 
     of which $27,301,000 shall remain available until expended: 
     Provided, That none of the funds appropriated from this Act 
     shall be available to convert the Old Post Office at 1100 
     Pennsylvania Avenue in Northwest Washington, D.C., from 
     office use to any other use until a comprehensive plan, which 
     shall include street-level retail use, has been approved by 
     the Senate Committee on Appropriations, the House Committee 
     on Transportation and Infrastructure, and the Senate 
     Committee on Environment and Public Works: Provided further, 
     That no funds from this Act shall be available to acquire by 
     purchase, condemnation, or otherwise the leasehold rights of 
     the existing lease with private parties at the Old Post 
     Office prior to the approval of the comprehensive plan by the 
     Senate Committee on Appropriations, the House Committee on 
     Transportation and Infrastructure, and the Senate Committee 
     on Environment and Public Works.


                      office of inspector general

       For necessary expenses of the Office of Inspector General 
     and services authorized by 5 U.S.C. 3109, $34,520,000: 
     Provided, That not to exceed $15,000 shall be available for 
     payment for information and detection of fraud against the 
     Government, including payment for recovery of stolen 
     Government property: Provided further, That not to exceed 
     $2,500 shall be available for awards to employees of other 
     Federal agencies and private citizens in recognition of 
     efforts and initiatives resulting in enhanced Office of 
     Inspector General effectiveness.


           allowances and office staff for former presidents

                     (including transfer of funds)

       For carrying out the provisions of the Act of August 25, 
     1958, as amended (3 U.S.C. 102 note), and Public Law 95-138, 
     $2,517,000: Provided, That the Administrator of General 
     Services shall transfer to the Secretary of the Treasury such 
     sums as may be necessary to carry out the provisions of such 
     Acts.


                   EXPENSES, PRESIDENTIAL TRANSITION

       For expenses necessary to carry out the Presidential 
     Transition Act of 1963, as amended, $7,100,000.

          General Services Administration--General Provisions

       Sec. 401. The appropriate appropriation or fund available 
     to the General Services Administration shall be credited with 
     the cost of operation, protection, maintenance, upkeep, 
     repair, and improvement, included as part of rentals received 
     from Government corporations pursuant to law (40 U.S.C. 129).
       Sec. 402. Funds available to the General Services 
     Administration shall be available for the hire of passenger 
     motor vehicles.
       Sec. 403. Funds in the Federal Buildings Fund made 
     available for fiscal year 2001 for Federal Buildings Fund 
     activities may be transferred between such activities only to 
     the extent necessary to meet program requirements: Provided, 
     That any proposed transfers shall be approved in advance by 
     the Committees on Appropriations.
       Sec. 404. No funds made available by this Act shall be used 
     to transmit a fiscal year 2002 request for United States 
     Courthouse construction that: (1) does not meet the design 
     guide standards for construction as established and approved 
     by the General Services Administration, the Judicial 
     Conference of the United States, and the Office of Management 
     and Budget; and (2) does not reflect the priorities of the 
     Judicial Conference of the United States as set out in its 
     approved 5-year construction plan: Provided, That the fiscal 
     year 2002 request must be accompanied by a standardized 
     courtroom utilization study of each facility to be 
     constructed, replaced, or expanded.
       Sec. 405. None of the funds provided in this Act may be 
     used to increase the amount of occupiable square feet, 
     provide cleaning services, security enhancements, or any 
     other service usually provided through the Federal Buildings 
     Fund, to any agency that does not pay the rate per square 
     foot assessment for space and services as determined by the 
     General Services Administration in compliance with the Public 
     Buildings Amendments Act of 1972 (Public Law 92-313).
       Sec. 406. Funds provided to other Government agencies by 
     the Information Technology Fund, General Services 
     Administration, under 40 U.S.C. 757 and sections 5124(b) and 
     5128 of Public Law 104-106, Information Technology Management 
     Reform Act of 1996, for performance of pilot information 
     technology projects which have potential for Government-wide 
     benefits and savings, may be repaid to this Fund from any 
     savings actually incurred by these projects or other funding, 
     to the extent feasible.
       Sec. 407. From funds made available under the heading 
     ``Federal Buildings Fund, Limitations on Availability of 
     Revenue'', claims against the Government of less than 
     $250,000 arising from direct construction projects and 
     acquisition of buildings may be liquidated from savings 
     effected in other construction projects with prior 
     notification to the Committees on Appropriations.
       Sec. 408. Section 411 of Public Law 106-58 is amended by 
     striking ``April 30, 2001'' each place it appears and 
     inserting ``April 30, 2002''.
       Sec. 409. Designation of Ronald N. Davies Federal Building 
     and United States Courthouse. (a) The Federal building and 
     courthouse located at 102 North 4th Street, Grand Forks, 
     North Dakota, shall be known and designated as the ``Ronald 
     N. Davies Federal Building and United States Courthouse''.
       (b) Any reference in a law, map, regulation, document, 
     paper, or other record of the United States to the Federal 
     building and courthouse referred to in section 1 shall be 
     deemed to be a reference to the Ronald N. Davies Federal 
     Building and United States Courthouse.
       Sec. 410. From the funds made available under the heading 
     ``Federal Buildings Fund Limitations on Revenue'', in 
     addition to amounts provided in budget activities above, up 
     to $2,500,000 shall be available for the construction of a 
     road and acquisition of the property necessary for 
     construction of said road and associated port of entry 
     facilities: Provided, That said property shall include a 125 
     foot wide right of way beginning approximately 700 feet east 
     of Highway 11 at the northeast corner of the existing port 
     facilities and going north approximately 4,750 feet and 
     approximately 10.22 acres adjacent to the port of entry in 
     Township 29 S. Range 8W., Section 14: Provided further, That 
     construction of the road shall occur only after this property 
     is deeded and conveyed to the United States by and through 
     the General Services Administration without reimbursement or 
     cost to the United States at the election of its current 
     landholder: Provided further, That notwithstanding any other 
     provision of law, and subject to the foregoing conditions, 
     the Administrator of General Services shall construct a road 
     to the Columbus, New Mexico Port of Entry Station on the 
     property, connecting the port with a road to be built by the 
     County of Luna, New Mexico to connect to State Highway 11: 
     Provided further, That notwithstanding any other provision of 
     law, Luna County shall construct the roadway from State 
     Highway 11 to the terminus of the northbound road to be 
     constructed by the General Services Administration in time 
     for completion of the road to be constructed by the General 
     Services Administration in time for completion of the road to 
     be constructed by the General Services Administration: 
     Provided further, That upon completion of the construction of 
     the road by the General Services Administration, and 
     notwithstanding any other provision of law, the Administrator 
     of General Services shall convey to the municipality of Luna 
     County, New Mexico, without reimbursement, all right, title, 
     and interest of the United States to that portion of the 
     property constituting the improved road and standard county 
     road right of way which is not required for the operation of 
     the port of entry: Provided further, That the General 
     Services Administration on behalf of the United States upon 
     conveyance of the property to the municipality of Luna, New 
     Mexico, shall retain the balance of the property located 
     adjacent to the port, consisting of approximately 12 acres, 
     to be owned or otherwise managed by the Administrator 
     pursuant to the Federal Property and Administrative Services 
     Act of 1949, as amended: Provided further, That the General 
     Services Administration is authorized to acquire such 
     additional real property and rights in real property as may 
     be necessary to construct said road and provide a contiguous 
     site for the port of entry: Provided further, That the United 
     States shall incur no liability for any environmental laws or 
     conditions existing at the property at the time of conveyance 
     to the United States or in connection with the construction 
     of the road: Provided further, That Luna County and the 
     Village of Columbus shall be responsible for providing 
     adequate access and egress to existing properties east of the 
     port of entry: Provided further, That the Bureau of Land 
     Management, the International Boundary and

[[Page 26810]]

     Water Commission, the Federal Inspection Agencies and the 
     Department of State shall take all actions necessary to 
     facilitate the construction of the road and expansion of the 
     port facilities.
       Sec. 411. Designation of J. Bratton Davis United States 
     Bankruptcy Courthouse. (a) The United States bankruptcy 
     courthouse at 1100 Laurel Street in Columbia, South Carolina, 
     shall be known and designated as the ``J. Bratton Davis 
     United States Bankruptcy Courthouse''.
       (b) Any reference in a law, map, regulation, document, 
     paper, or other record of the United States to the United 
     States bankruptcy courthouse referred to in subsection (a) 
     shall be deemed to be a reference to the ``J. Bratton Davis 
     United States Bankruptcy Courthouse''.
       Sec. 412. (a) The United States Courthouse Annex located at 
     901 19th Street in Denver, Colorado is hereby designated as 
     the ``Alfred A. Arraj United States Courthouse Annex''.
       (b) Any reference in a law, map, regulation, document, or 
     paper or other record of the United States to the Courthouse 
     Annex herein referred to in subsection (a) shall be deemed to 
     be a reference to the ``Alfred A. Arraj United States 
     Courthouse Annex''.
       Sec. 413. Designation of the Paul Coverdell Dormitory. The 
     dormitory building currently being constructed on the Core 
     Campus of the Federal Law Enforcement Training Center in 
     Glynco, Georgia, shall be known and designated as the ``Paul 
     Coverdell Dormitory''.

                     Merit Systems Protection Board

                         salaries and expenses


                     (including transfer of funds)

       For necessary expenses to carry out functions of the Merit 
     Systems Protection Board pursuant to Reorganization Plan 
     Numbered 2 of 1978 and the Civil Service Reform Act of 1978, 
     including services as authorized by 5 U.S.C. 3109, rental of 
     conference rooms in the District of Columbia and elsewhere, 
     hire of passenger motor vehicles, and direct procurement of 
     survey printing, $29,437,000 together with not to exceed 
     $2,430,000 for administrative expenses to adjudicate 
     retirement appeals to be transferred from the Civil Service 
     Retirement and Disability Fund in amounts determined by the 
     Merit Systems Protection Board.

   Federal Payment to Morris K. Udall Scholarship and Excellence in 
                National Environmental Policy Foundation

       For payment to the Morris K. Udall Scholarship and 
     Excellence in National Environmental Trust Fund, to be 
     available for the purposes of Public Law 102-252, $2,000,000, 
     to remain available until expended.

                 Environmental Dispute Resolution Fund

       For payment to the Environmental Dispute Resolution Fund to 
     carry out activities authorized in the Environmental Policy 
     and Conflict Resolution Act of 1998, $1,250,000, to remain 
     available until expended.

              National Archives and Records Administration


                           operating expenses

       For necessary expenses in connection with the 
     administration of the National Archives (including the 
     Information Security Oversight Office) and archived Federal 
     records and related activities, as provided by law, and for 
     expenses necessary for the review and declassification of 
     documents, and for the hire of passenger motor vehicles, 
     $209,393,000: Provided, That the Archivist of the United 
     States is authorized to use any excess funds available from 
     the amount borrowed for construction of the National Archives 
     facility, for expenses necessary to provide adequate storage 
     for holdings.


                        repairs and restoration

       For the repair, alteration, and improvement of archives 
     facilities, and to provide adequate storage for holdings, 
     $95,150,000, to remain available until expended of which 
     $88,000,000 is to complete renovation of the National 
     Archives Building.

        National Historical Publications and Records Commission


                             grants program

                    (including rescission of funds)

       For necessary expenses for allocations and grants for 
     historical publications and records as authorized by 44 
     U.S.C. 2504, as amended, $6,450,000, to remain available 
     until expended.

                      Office of Government Ethics


                         salaries and expenses

       For necessary expenses to carry out functions of the Office 
     of Government Ethics pursuant to the Ethics in Government Act 
     of 1978, as amended and the Ethics Reform Act of 1989, 
     including services as authorized by 5 U.S.C. 3109, rental of 
     conference rooms in the District of Columbia and elsewhere, 
     hire of passenger motor vehicles, and not to exceed $1,500 
     for official reception and representation expenses, 
     $9,684,000.

                     Office of Personnel Management


                         salaries and expenses

                  (including transfer of trust funds)

       For necessary expenses to carry out functions of the Office 
     of Personnel Management pursuant to Reorganization Plan 
     Numbered 2 of 1978 and the Civil Service Reform Act of 1978, 
     including services as authorized by 5 U.S.C. 3109; medical 
     examinations performed for veterans by private physicians on 
     a fee basis; rental of conference rooms in the District of 
     Columbia and elsewhere; hire of passenger motor vehicles; not 
     to exceed $2,500 for official reception and representation 
     expenses; advances for reimbursements to applicable funds of 
     the Office of Personnel Management and the Federal Bureau of 
     Investigation for expenses incurred under Executive Order No. 
     10422 of January 9, 1953, as amended; and payment of per diem 
     and/or subsistence allowances to employees where Voting 
     Rights Act activities require an employee to remain overnight 
     at his or her post of duty, $94,095,000; and in addition 
     $101,986,000 for administrative expenses, to be transferred 
     from the appropriate trust funds of the Office of Personnel 
     Management without regard to other statutes, including direct 
     procurement of printed materials, for the retirement and 
     insurance programs, of which $10,500,000 shall remain 
     available until expended for the cost of automating the 
     retirement recordkeeping systems: Provided, That the 
     provisions of this appropriation shall not affect the 
     authority to use applicable trust funds as provided by 
     sections 8348(a)(1)(B) and 8909(g) of title 5, United States 
     Code: Provided further, That no part of this appropriation 
     shall be available for salaries and expenses of the Legal 
     Examining Unit of the Office of Personnel Management 
     established pursuant to Executive Order No. 9358 of July 1, 
     1943, or any successor unit of like purpose: Provided 
     further, That the President's Commission on White House 
     Fellows, established by Executive Order No. 11183 of October 
     3, 1964, may, during fiscal year 2001, accept donations of 
     money, property, and personal services in connection with the 
     development of a publicity brochure to provide information 
     about the White House Fellows, except that no such donations 
     shall be accepted for travel or reimbursement of travel 
     expenses, or for the salaries of employees of such 
     Commission.


                      office of inspector general

                         salaries and expenses

                  (including transfer of trust funds)

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act, 
     as amended, including services as authorized by 5 U.S.C. 
     3109, hire of passenger motor vehicles, $1,360,000; and in 
     addition, not to exceed $9,745,000 for administrative 
     expenses to audit, investigate, and provide other oversight 
     of the Office of Personnel Management's retirement and 
     insurance programs, to be transferred from the appropriate 
     trust funds of the Office of Personnel Management, as 
     determined by the Inspector General: Provided, That the 
     Inspector General is authorized to rent conference rooms in 
     the District of Columbia and elsewhere.


      government payment for annuitants, employees health benefits

       For payment of Government contributions with respect to 
     retired employees, as authorized by chapter 89 of title 5, 
     United States Code, and the Retired Federal Employees Health 
     Benefits Act (74 Stat. 849), as amended, such sums as may be 
     necessary.


       government payment for annuitants, employee life insurance

       For payment of Government contributions with respect to 
     employees retiring after December 31, 1989, as required by 
     chapter 87 of title 5, United States Code, such sums as may 
     be necessary.


        payment to civil service retirement and disability fund

       For financing the unfunded liability of new and increased 
     annuity benefits becoming effective on or after October 20, 
     1969, as authorized by 5 U.S.C. 8348, and annuities under 
     special Acts to be credited to the Civil Service Retirement 
     and Disability Fund, such sums as may be necessary: Provided, 
     That annuities authorized by the Act of May 29, 1944, as 
     amended, and the Act of August 19, 1950, as amended (33 
     U.S.C. 771-775), may hereafter be paid out of the Civil 
     Service Retirement and Disability Fund.

                       Office of Special Counsel


                         salaries and expenses

       For necessary expenses to carry out functions of the Office 
     of Special Counsel pursuant to Reorganization Plan Numbered 2 
     of 1978, the Civil Service Reform Act of 1978 (Public Law 95-
     454), the Whistleblower Protection Act of 1989 (Public Law 
     101-12), Public Law 103-424, and the Uniformed Services 
     Employment and Reemployment Act of 1994 (Public Law 103-353), 
     including services as authorized by 5 U.S.C. 3109, payment of 
     fees and expenses for witnesses, rental of conference rooms 
     in the District of Columbia and elsewhere, and hire of 
     passenger motor vehicles, $11,147,000.

                        United States Tax Court


                         Salaries and Expenses

       For necessary expenses, including contract reporting and 
     other services as authorized by 5 U.S.C. 3109, $37,305,000: 
     Provided, That travel expenses of the judges shall be paid 
     upon the written certificate of the judge.
       This title may be cited as the ``Independent Agencies 
     Appropriations Act, 2001''.

                      TITLE V--GENERAL PROVISIONS

                                This Act

       Sec. 501. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       Sec. 502. The expenditure of any appropriation under this 
     Act for any consulting service through procurement contract, 
     pursuant to 5 U.S.C. 3109, shall be limited to those 
     contracts where such expenditures are a matter of public 
     record and available for public inspection, except where 
     otherwise provided under existing law, or under existing 
     Executive order issued pursuant to existing law.
       Sec. 503. None of the funds made available by this Act 
     shall be available for any activity or for

[[Page 26811]]

     paying the salary of any Government employee where funding an 
     activity or paying a salary to a Government employee would 
     result in a decision, determination, rule, regulation, or 
     policy that would prohibit the enforcement of section 307 of 
     the Tariff Act of 1930.
       Sec. 504. None of the funds made available by this Act 
     shall be available in fiscal year 2001 for the purpose of 
     transferring control over the Federal Law Enforcement 
     Training Center located at Glynco, Georgia, and Artesia, New 
     Mexico, out of the Department of the Treasury.
       Sec. 505. No part of any appropriation contained in this 
     Act shall be available to pay the salary for any person 
     filling a position, other than a temporary position, formerly 
     held by an employee who has left to enter the Armed Forces of 
     the United States and has satisfactorily completed his period 
     of active military or naval service, and has within 90 days 
     after his release from such service or from hospitalization 
     continuing after discharge for a period of not more than 1 
     year, made application for restoration to his former position 
     and has been certified by the Office of Personnel Management 
     as still qualified to perform the duties of his former 
     position and has not been restored thereto.
       Sec. 506. No funds appropriated pursuant to this Act may be 
     expended by an entity unless the entity agrees that in 
     expending the assistance the entity will comply with sections 
     2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a-10c, 
     popularly known as the ``Buy American Act'').
       Sec. 507. (a) Purchase of American-Made Equipment and 
     Products.--In the case of any equipment or products that may 
     be authorized to be purchased with financial assistance 
     provided under this Act, it is the sense of the Congress that 
     entities receiving such assistance should, in expending the 
     assistance, purchase only American-made equipment and 
     products.
       (b) Notice to Recipients of Assistance.--In providing 
     financial assistance under this Act, the Secretary of the 
     Treasury shall provide to each recipient of the assistance a 
     notice describing the statement made in subsection (a) by the 
     Congress.
       Sec. 508. If it has been finally determined by a court or 
     Federal agency that any person intentionally affixed a label 
     bearing a ``Made in America'' inscription, or any inscription 
     with the same meaning, to any product sold in or shipped to 
     the United States that is not made in the United States, such 
     person shall be ineligible to receive any contract or 
     subcontract made with funds provided pursuant to this Act, 
     pursuant to the debarment, suspension, and ineligibility 
     procedures described in sections 9.400 through 9.409 of title 
     48, Code of Federal Regulations.
       Sec. 509. No funds appropriated by this Act shall be 
     available to pay for an abortion, or the administrative 
     expenses in connection with any health plan under the Federal 
     employees health benefit program which provides any benefits 
     or coverage for abortions.
       Sec. 510. The provision of section 509 shall not apply 
     where the life of the mother would be endangered if the fetus 
     were carried to term, or the pregnancy is the result of an 
     act of rape or incest.
       Sec. 511. Except as otherwise specifically provided by law, 
     not to exceed 50 percent of unobligated balances remaining 
     available at the end of fiscal year 2001 from appropriations 
     made available for salaries and expenses for fiscal year 2001 
     in this Act, shall remain available through September 30, 
     2002, for each such account for the purposes authorized: 
     Provided, That a request shall be submitted to the Committees 
     on Appropriations for approval prior to the expenditure of 
     such funds: Provided further, That these requests shall be 
     made in compliance with reprogramming guidelines.
       Sec. 512. None of the funds made available in this Act may 
     be used by the Executive Office of the President to request 
     from the Federal Bureau of Investigation any official 
     background investigation report on any individual, except 
     when--
       (1) such individual has given his or her express written 
     consent for such request not more than 6 months prior to the 
     date of such request and during the same presidential 
     administration; or
       (2) such request is required due to extraordinary 
     circumstances involving national security.
       Sec. 513. The cost accounting standards promulgated under 
     section 26 of the Office of Federal Procurement Policy Act 
     (Public Law 93-400; 41 U.S.C. 422) shall not apply with 
     respect to a contract under the Federal Employees Health 
     Benefits Program established under chapter 89 of title 5, 
     United States Code.
       Sec. 514. (a) In General.--As soon as practicable after the 
     date of the enactment of this Act, the Archivist of the 
     United States shall transfer to the Gerald R. Ford 
     Foundation, as trustee, all right, title, and interest of the 
     United States in and to the approximately 2.3 acres of land 
     located within Grand Rapids, Michigan, and further described 
     in subsection (b), such grant to be in trust, with the 
     beneficiary being the National Archives and Records 
     Administration, for the purpose of supporting the facilities 
     and programs of the Gerald R. Ford Museum in Grand Rapids, 
     Michigan, and the Gerald R. Ford Library in Ann Arbor, 
     Michigan, in accordance with a trust agreement to be agreed 
     upon by the Archivist and the Gerald R. Ford Foundation.
       (b) Land Description.--The land to be transferred pursuant 
     to subsection (a) is described as follows:
       The following premises in the City of Grand Rapids, County 
     of Kent, State of Michigan, described as:

       That part of Block 2, Converse Plat, and that part of Block 
     2 of J.W. Converse Replatted Addition, and that part of 
     Government Lot 1 of Section 25, T7N, R12W, City of Grand 
     Rapids, Kent County, Michigan, described as: BEGINNING at the 
     NE corner of Lot 1 of Block 2 of Converse Plat; thence East 
     245.0 feet along the South line of Bridge Street; thence 
     South 230.0 feet along a line which is parallel with and 170 
     feet East from the East line of Front Avenue as originally 
     platted; thence West 207.5 feet parallel with the South line 
     of Bridge Street; thence South along the centerline of 
     vacated Front Avenue 109 feet more or less to the extended 
     centerline of vacated Douglas Street; thence West along the 
     centerline of vacated Douglas Street 237.5 feet more or less 
     to the East line of Scribner Avenue; thence North along the 
     East line of Scribner Avenue 327 feet more or less to a point 
     which is 7.0 feet South from the NW corner of Lot 8 of Block 
     2 of Converse Plat; thence Easterly 200 feet more or less to 
     the place of beginning, also described as:
       Parcel A--Lots 9 & 10, Block 2 of Converse Plat, being the 
     subdivision of Government Lots 1 & 2, Section 25, T7N, R12W; 
     also Lots 11-24, Block 2 of J.W. Converse Replatted Addition; 
     also part of N \1/2\ of Section 25, T7N, R12W commencing at 
     SE corner Lot 24, Block 2 of J.W. Converse Replatted 
     Addition, thence N to NE corner of Lot 9 of Converse Plat, 
     thence E 16 feet, thence S to SW corner of Lot 23 of J.W. 
     Converse Replatted Addition, thence W 16 feet to beginning.
       Parcel B--Part of Section 25, T7N, R12W, commencing on S 
     line of Bridge Street 50 feet E of E line of Front Avenue, 
     thence S 107.85 feet, thence 77 feet, thence N to a point on 
     S line of said street which is 80 feet E of beginning, thence 
     W to beginning.
       Parcel C--Part of Section 25, T7N, R12W, commencing at SE 
     corner Bridge Street & Front Avenue, thence E 50 feet, thence 
     S 107.85 feet to alley, thence W 50 feet to E line Front 
     Avenue, thence N 106.81 feet to beginning.
       Parcel D--Part of Government Lot 1, Section 25, T7N, R12W, 
     commencing at a point on S line of Bridge Street (66' wide) 
     170 feet E of E line of Front Avenue (75' wide), thence S 230 
     feet parallel with Front Avenue, thence W 170 feet parallel 
     with Bridge Street to E line of Front Avenue, thence N along 
     said line to a point 106.81 feet S of intersection of said 
     line with extension of N & S line of Bridge Street, thence E 
     127 feet, thence northerly to a point on S line of Bridge 
     Street 130 feet E of E line of Front Avenue, thence E along S 
     line of Bridge Street to beginning.
       Parcel E--Lots 1 through 8 of Block 2 of Converse Plat, 
     being the subdivision of Government Lots 1 and 2, Section 25, 
     T7N, R12W.
       Also part of N \1/2\ of Section 25, T7N, R12W, commencing 
     at NW corner of Lot 9, Block 2 of J.W. Converse Replatted 
     Addition; thence N 15 feet to SW corner of Lot 8; thence E 
     200 feet to SE corner Lot 1; thence S 15 feet to NE corner of 
     Lot 10; thence W 200 feet to beginning.
       Together with any portion of vacated streets and alleys 
     that have become part of the above property.
       (c) Terms and Conditions.--
       (1) Compensation.--The land transferred pursuant to 
     subsection (a) shall be transferred without compensation to 
     the United States.
       (2) Appointment of successor trustee.--In the event that 
     the Gerald R. Ford Foundation for any reason is unable or 
     unwilling to continue to serve as trustee, the Archivist of 
     the United States is authorized to appoint a successor 
     trustee.
       (3) Reversionary interest.--If the Archivist of the United 
     States determines that the Gerald R. Ford Foundation (or a 
     successor trustee appointed under paragraph (2)) has breached 
     its fiduciary duty under the trust agreement entered into 
     pursuant to this section, the land transferred pursuant to 
     subsection (a) shall revert to the United States under the 
     administrative jurisdiction of the Archivist.
       Sec. 515. (a) In General.--The Director of the Office of 
     Management and Budget shall, by not later than September 30, 
     2001, and with public and Federal agency involvement, issue 
     guidelines under sections 3504(d)(1) and 3516 of title 44, 
     United States Code, that provide policy and procedural 
     guidance to Federal agencies for ensuring and maximizing the 
     quality, objectivity, utility, and integrity of information 
     (including statistical information) disseminated by Federal 
     agencies in fulfillment of the purposes and provisions of 
     chapter 35 of title 44, United States Code, commonly referred 
     to as the Paperwork Reduction Act.
       (b) Content of Guidelines.--The guidelines under subsection 
     (a) shall--
       (1) apply to the sharing by Federal agencies of, and access 
     to, information disseminated by Federal agencies; and
       (2) require that each Federal agency to which the 
     guidelines apply--
       (A) issue guidelines ensuring and maximizing the quality, 
     objectivity, utility, and integrity of information (including 
     statistical information) disseminated by the agency, by not 
     later than 1 year after the date of issuance of the 
     guidelines under subsection (a);
       (B) establish administrative mechanisms allowing affected 
     persons to seek and obtain correction of information 
     maintained and disseminated by the agency that does not 
     comply with the guidelines issued under subsection (a); and
       (C) report periodically to the Director--
       (i) the number and nature of complaints received by the 
     agency regarding the accuracy of information disseminated by 
     the agency; and

[[Page 26812]]

       (ii) how such complaints were handled by the agency.
       Sec. 516. For the purpose of resolving litigation and 
     implementing any settlement agreements regarding the 
     nonforeign area cost-of-living allowance program, the Office 
     of Personnel Management may accept and utilize (without 
     regard to any restriction on unanticipated travel expenses 
     imposed in an Appropriations Act) funds made available to the 
     Office pursuant to court approval.
       Sec. 517. None of the funds appropriated by this Act shall 
     be used to propose or issue rules, regulations, decrees, or 
     orders for the purpose of implementation, or in preparation 
     for implementation, of the Kyoto Protocol, which was adopted 
     on December 11, 1997, in Kyoto, Japan, at the Third 
     Conference of the Parties to the United Nations Framework 
     Convention on Climate Change, which has not been submitted to 
     the Senate for advice and consent to ratification pursuant to 
     article II, section 2, clause 2, of the United States 
     Constitution, and which has not entered into force pursuant 
     to article 25 of the Protocol.
       Sec. 518. Not later than July 1, 2001, the Director of the 
     Office of Management and Budget shall submit a report to the 
     Committee on Appropriations and the Committee on Governmental 
     Affairs in the Senate and the Committee on Appropriations and 
     the Committee on Government Reform of the House of 
     Representatives that (1) evaluates, for each agency, the 
     extent to which implementation of chapter 35 of title 31, 
     United States Code, as amended by the Paperwork Reduction Act 
     of 1995 (Public Law 104-13), has reduced burden imposed by 
     rules issued by the agency, including the burden imposed by 
     each major rule issued by the agency; (2) includes a 
     determination, based on such evaluation, of the need for 
     additional procedures to ensure achievement of the purposes 
     of that chapter, as set forth in section 3501 of title 31, 
     United States Code, and evaluates the burden imposed by each 
     major rule that imposes more than 10,000,000 hours of burden, 
     and identifies specific reductions expected to be achieved in 
     each of fiscal years 2001 and 2002 in the burden imposed by 
     all rules issued by each agency that issued such a major 
     rule.

                      TITLE VI--GENERAL PROVISIONS

                Departments, Agencies, and Corporations

       Sec. 601. Funds appropriated in this or any other Act may 
     be used to pay travel to the United States for the immediate 
     family of employees serving abroad in cases of death or life 
     threatening illness of said employee.
       Sec. 602. No department, agency, or instrumentality of the 
     United States receiving appropriated funds under this or any 
     other Act for fiscal year 2001 shall obligate or expend any 
     such funds, unless such department, agency, or 
     instrumentality has in place, and will continue to administer 
     in good faith, a written policy designed to ensure that all 
     of its workplaces are free from the illegal use, possession, 
     or distribution of controlled substances (as defined in the 
     Controlled Substances Act) by the officers and employees of 
     such department, agency, or instrumentality.
       Sec. 603. Unless otherwise specifically provided, the 
     maximum amount allowable during the current fiscal year in 
     accordance with section 16 of the Act of August 2, 1946 (60 
     Stat. 810), for the purchase of any passenger motor vehicle 
     (exclusive of buses, ambulances, law enforcement, and 
     undercover surveillance vehicles), is hereby fixed at $8,100 
     except station wagons for which the maximum shall be $9,100: 
     Provided, That these limits may be exceeded by not to exceed 
     $3,700 for police-type vehicles, and by not to exceed $4,000 
     for special heavy-duty vehicles: Provided further, That the 
     limits set forth in this section may not be exceeded by more 
     than 5 percent for electric or hybrid vehicles purchased for 
     demonstration under the provisions of the Electric and Hybrid 
     Vehicle Research, Development, and Demonstration Act of 1976: 
     Provided further, That the limits set forth in this section 
     may be exceeded by the incremental cost of clean alternative 
     fuels vehicles acquired pursuant to Public Law 101-549 over 
     the cost of comparable conventionally fueled vehicles.
       Sec. 604. Appropriations of the executive departments and 
     independent establishments for the current fiscal year 
     available for expenses of travel, or for the expenses of the 
     activity concerned, are hereby made available for quarters 
     allowances and cost-of-living allowances, in accordance with 
     5 U.S.C. 5922-5924.
       Sec. 605. Unless otherwise specified during the current 
     fiscal year, no part of any appropriation contained in this 
     or any other Act shall be used to pay the compensation of any 
     officer or employee of the Government of the United States 
     (including any agency the majority of the stock of which is 
     owned by the Government of the United States) whose post of 
     duty is in the continental United States unless such person: 
     (1) is a citizen of the United States; (2) is a person in the 
     service of the United States on the date of the enactment of 
     this Act who, being eligible for citizenship, has filed a 
     declaration of intention to become a citizen of the United 
     States prior to such date and is actually residing in the 
     United States; (3) is a person who owes allegiance to the 
     United States; (4) is an alien from Cuba, Poland, South 
     Vietnam, the countries of the former Soviet Union, or the 
     Baltic countries lawfully admitted to the United States for 
     permanent residence; (5) is a South Vietnamese, Cambodian, or 
     Laotian refugee paroled in the United States after January 1, 
     1975; or (6) is a national of the People's Republic of China 
     who qualifies for adjustment of status pursuant to the 
     Chinese Student Protection Act of 1992: Provided, That for 
     the purpose of this section, an affidavit signed by any such 
     person shall be considered prima facie evidence that the 
     requirements of this section with respect to his or her 
     status have been complied with: Provided further, That any 
     person making a false affidavit shall be guilty of a felony, 
     and, upon conviction, shall be fined no more than $4,000 or 
     imprisoned for not more than 1 year, or both: Provided 
     further, That the above penal clause shall be in addition to, 
     and not in substitution for, any other provisions of existing 
     law: Provided further, That any payment made to any officer 
     or employee contrary to the provisions of this section shall 
     be recoverable in action by the Federal Government. This 
     section shall not apply to citizens of Ireland, Israel, or 
     the Republic of the Philippines, or to nationals of those 
     countries allied with the United States in a current defense 
     effort, or to international broadcasters employed by the 
     United States Information Agency, or to temporary employment 
     of translators, or to temporary employment in the field 
     service (not to exceed 60 days) as a result of emergencies.
       Sec. 606. Appropriations available to any department or 
     agency during the current fiscal year for necessary expenses, 
     including maintenance or operating expenses, shall also be 
     available for payment to the General Services Administration 
     for charges for space and services and those expenses of 
     renovation and alteration of buildings and facilities which 
     constitute public improvements performed in accordance with 
     the Public Buildings Act of 1959 (73 Stat. 749), the Public 
     Buildings Amendments of 1972 (87 Stat. 216), or other 
     applicable law.
       Sec. 607. In addition to funds provided in this or any 
     other Act, all Federal agencies are authorized to receive and 
     use funds resulting from the sale of materials, including 
     Federal records disposed of pursuant to a records schedule 
     recovered through recycling or waste prevention programs. 
     Such funds shall be available until expended for the 
     following purposes:
       (1) Acquisition, waste reduction and prevention, and 
     recycling programs as described in Executive Order No. 13101 
     (September 14, 1998), including any such programs adopted 
     prior to the effective date of the Executive order.
       (2) Other Federal agency environmental management programs, 
     including, but not limited to, the development and 
     implementation of hazardous waste management and pollution 
     prevention programs.
       (3) Other employee programs as authorized by law or as 
     deemed appropriate by the head of the Federal agency.
       Sec. 608. Funds made available by this or any other Act for 
     administrative expenses in the current fiscal year of the 
     corporations and agencies subject to chapter 91 of title 31, 
     United States Code, shall be available, in addition to 
     objects for which such funds are otherwise available, for 
     rent in the District of Columbia; services in accordance with 
     5 U.S.C. 3109; and the objects specified under this head, all 
     the provisions of which shall be applicable to the 
     expenditure of such funds unless otherwise specified in the 
     Act by which they are made available: Provided, That in the 
     event any functions budgeted as administrative expenses are 
     subsequently transferred to or paid from other funds, the 
     limitations on administrative expenses shall be 
     correspondingly reduced.
       Sec. 609. No part of any appropriation for the current 
     fiscal year contained in this or any other Act shall be paid 
     to any person for the filling of any position for which he or 
     she has been nominated after the Senate has voted not to 
     approve the nomination of said person.
       Sec. 610. No part of any appropriation contained in this or 
     any other Act shall be available for interagency financing of 
     boards (except Federal Executive Boards), commissions, 
     councils, committees, or similar groups (whether or not they 
     are interagency entities) which do not have a prior and 
     specific statutory approval to receive financial support from 
     more than one agency or instrumentality.
       Sec. 611. Funds made available by this or any other Act to 
     the Postal Service Fund (39 U.S.C. 2003) shall be available 
     for employment of guards for all buildings and areas owned or 
     occupied by the Postal Service and under the charge and 
     control of the Postal Service, and such guards shall have, 
     with respect to such property, the powers of special 
     policemen provided by the first section of the Act of June 1, 
     1948, as amended (62 Stat. 281; 40 U.S.C. 318), and, as to 
     property owned or occupied by the Postal Service, the 
     Postmaster General may take the same actions as the 
     Administrator of General Services may take under the 
     provisions of sections 2 and 3 of the Act of June 1, 1948, as 
     amended (62 Stat. 281; 40 U.S.C. 318a and 318b), attaching 
     thereto penal consequences under the authority and within the 
     limits provided in section 4 of the Act of June 1, 1948, as 
     amended (62 Stat. 281; 40 U.S.C. 318c).
       Sec. 612. None of the funds made available pursuant to the 
     provisions of this Act shall be used to implement, 
     administer, or enforce any regulation which has been 
     disapproved pursuant to a resolution of disapproval duly 
     adopted in accordance with the applicable law of the United 
     States.
       Sec. 613. (a) Notwithstanding any other provision of law, 
     and except as otherwise provided in this section, no part of 
     any of the funds appropriated for fiscal year 2001, by this 
     or any other Act, may be used to pay any prevailing rate 
     employee described in section 5342(a)(2)(A) of title 5, 
     United States Code--
       (1) during the period from the date of expiration of the 
     limitation imposed by section 613 of

[[Page 26813]]

     the Treasury and General Government Appropriations Act, 2000, 
     until the normal effective date of the applicable wage survey 
     adjustment that is to take effect in fiscal year 2001, in an 
     amount that exceeds the rate payable for the applicable grade 
     and step of the applicable wage schedule in accordance with 
     such section 613; and
       (2) during the period consisting of the remainder of fiscal 
     year 2001, in an amount that exceeds, as a result of a wage 
     survey adjustment, the rate payable under paragraph (1) by 
     more than the sum of--
       (A) the percentage adjustment taking effect in fiscal year 
     2001 under section 5303 of title 5, United States Code, in 
     the rates of pay under the General Schedule; and
       (B) the difference between the overall average percentage 
     of the locality-based comparability payments taking effect in 
     fiscal year 2001 under section 5304 of such title (whether by 
     adjustment or otherwise), and the overall average percentage 
     of such payments which was effective in fiscal year 2000 
     under such section.
       (b) Notwithstanding any other provision of law, no 
     prevailing rate employee described in subparagraph (B) or (C) 
     of section 5342(a)(2) of title 5, United States Code, and no 
     employee covered by section 5348 of such title, may be paid 
     during the periods for which subsection (a) is in effect at a 
     rate that exceeds the rates that would be payable under 
     subsection (a) were subsection (a) applicable to such 
     employee.
       (c) For the purposes of this section, the rates payable to 
     an employee who is covered by this section and who is paid 
     from a schedule not in existence on September 30, 2000, shall 
     be determined under regulations prescribed by the Office of 
     Personnel Management.
       (d) Notwithstanding any other provision of law, rates of 
     premium pay for employees subject to this section may not be 
     changed from the rates in effect on September 30, 2000, 
     except to the extent determined by the Office of Personnel 
     Management to be consistent with the purpose of this section.
       (e) This section shall apply with respect to pay for 
     service performed after September 30, 2000.
       (f) For the purpose of administering any provision of law 
     (including any rule or regulation that provides premium pay, 
     retirement, life insurance, or any other employee benefit) 
     that requires any deduction or contribution, or that imposes 
     any requirement or limitation on the basis of a rate of 
     salary or basic pay, the rate of salary or basic pay payable 
     after the application of this section shall be treated as the 
     rate of salary or basic pay.
       (g) Nothing in this section shall be considered to permit 
     or require the payment to any employee covered by this 
     section at a rate in excess of the rate that would be payable 
     were this section not in effect.
       (h) The Office of Personnel Management may provide for 
     exceptions to the limitations imposed by this section if the 
     Office determines that such exceptions are necessary to 
     ensure the recruitment or retention of qualified employees.
       Sec. 614. During the period in which the head of any 
     department or agency, or any other officer or civilian 
     employee of the Government appointed by the President of the 
     United States, holds office, no funds may be obligated or 
     expended in excess of $5,000 to furnish or redecorate the 
     office of such department head, agency head, officer, or 
     employee, or to purchase furniture or make improvements for 
     any such office, unless advance notice of such furnishing or 
     redecoration is expressly approved by the Committees on 
     Appropriations. For the purposes of this section, the word 
     ``office'' shall include the entire suite of offices assigned 
     to the individual, as well as any other space used primarily 
     by the individual or the use of which is directly controlled 
     by the individual.
       Sec. 615. Notwithstanding any other provision of law, no 
     executive branch agency shall purchase, construct, and/or 
     lease any additional facilities, except within or contiguous 
     to existing locations, to be used for the purpose of 
     conducting Federal law enforcement training without the 
     advance approval of the Committees on Appropriations, except 
     that the Federal Law Enforcement Training Center is 
     authorized to obtain the temporary use of additional 
     facilities by lease, contract, or other agreement for 
     training which cannot be accommodated in existing Center 
     facilities.
       Sec. 616. Notwithstanding section 1346 of title 31, United 
     States Code, or section 610 of this Act, funds made available 
     for fiscal year 2001 by this or any other Act shall be 
     available for the interagency funding of national security 
     and emergency preparedness telecommunications initiatives 
     which benefit multiple Federal departments, agencies, or 
     entities, as provided by Executive Order No. 12472 (April 3, 
     1984).
       Sec. 617. (a) None of the funds appropriated by this or any 
     other Act may be obligated or expended by any Federal 
     department, agency, or other instrumentality for the salaries 
     or expenses of any employee appointed to a position of a 
     confidential or policy-determining character excepted from 
     the competitive service pursuant to section 3302 of title 5, 
     United States Code, without a certification to the Office of 
     Personnel Management from the head of the Federal department, 
     agency, or other instrumentality employing the Schedule C 
     appointee that the Schedule C position was not created solely 
     or primarily in order to detail the employee to the White 
     House.
       (b) The provisions of this section shall not apply to 
     Federal employees or members of the armed services detailed 
     to or from--
       (1) the Central Intelligence Agency;
       (2) the National Security Agency;
       (3) the Defense Intelligence Agency;
       (4) the offices within the Department of Defense for the 
     collection of specialized national foreign intelligence 
     through reconnaissance programs;
       (5) the Bureau of Intelligence and Research of the 
     Department of State;
       (6) any agency, office, or unit of the Army, Navy, Air 
     Force, and Marine Corps, the Federal Bureau of Investigation 
     and the Drug Enforcement Administration of the Department of 
     Justice, the Department of Transportation, the Department of 
     the Treasury, and the Department of Energy performing 
     intelligence functions; and
       (7) the Director of Central Intelligence.
       Sec. 618. No department, agency, or instrumentality of the 
     United States receiving appropriated funds under this or any 
     other Act for fiscal year 2001 shall obligate or expend any 
     such funds, unless such department, agency, or 
     instrumentality has in place, and will continue to administer 
     in good faith, a written policy designed to ensure that all 
     of its workplaces are free from discrimination and sexual 
     harassment and that all of its workplaces are not in 
     violation of title VII of the Civil Rights Act of 1964, as 
     amended, the Age Discrimination in Employment Act of 1967, 
     and the Rehabilitation Act of 1973.
       Sec. 619. None of the funds made available in this Act for 
     the United States Customs Service may be used to allow the 
     importation into the United States of any good, ware, 
     article, or merchandise mined, produced, or manufactured by 
     forced or indentured child labor, as determined pursuant to 
     section 307 of the Tariff Act of 1930 (19 U.S.C. 1307).
       Sec. 620. No part of any appropriation contained in this or 
     any other Act shall be available for the payment of the 
     salary of any officer or employee of the Federal Government, 
     who--
       (1) prohibits or prevents, or attempts or threatens to 
     prohibit or prevent, any other officer or employee of the 
     Federal Government from having any direct oral or written 
     communication or contact with any Member, committee, or 
     subcommittee of the Congress in connection with any matter 
     pertaining to the employment of such other officer or 
     employee or pertaining to the department or agency of such 
     other officer or employee in any way, irrespective of whether 
     such communication or contact is at the initiative of such 
     other officer or employee or in response to the request or 
     inquiry of such Member, committee, or subcommittee; or
       (2) removes, suspends from duty without pay, demotes, 
     reduces in rank, seniority, status, pay, or performance of 
     efficiency rating, denies promotion to, relocates, reassigns, 
     transfers, disciplines, or discriminates in regard to any 
     employment right, entitlement, or benefit, or any term or 
     condition of employment of, any other officer or employee of 
     the Federal Government, or attempts or threatens to commit 
     any of the foregoing actions with respect to such other 
     officer or employee, by reason of any communication or 
     contact of such other officer or employee with any Member, 
     committee, or subcommittee of the Congress as described in 
     paragraph (1).
       Sec. 621. (a) None of the funds made available in this or 
     any other Act may be obligated or expended for any employee 
     training that--
       (1) does not meet identified needs for knowledge, skills, 
     and abilities bearing directly upon the performance of 
     official duties;
       (2) contains elements likely to induce high levels of 
     emotional response or psychological stress in some 
     participants;
       (3) does not require prior employee notification of the 
     content and methods to be used in the training and written 
     end of course evaluation;
       (4) contains any methods or content associated with 
     religious or quasi-religious belief systems or ``new age'' 
     belief systems as defined in Equal Employment Opportunity 
     Commission Notice N-915.022, dated September 2, 1988; or
       (5) is offensive to, or designed to change, participants' 
     personal values or lifestyle outside the workplace.
       (b) Nothing in this section shall prohibit, restrict, or 
     otherwise preclude an agency from conducting training bearing 
     directly upon the performance of official duties.
       Sec. 622. No funds appropriated in this or any other Act 
     may be used to implement or enforce the agreements in 
     Standard Forms 312 and 4414 of the Government or any other 
     nondisclosure policy, form, or agreement if such policy, 
     form, or agreement does not contain the following provisions: 
     ``These restrictions are consistent with and do not 
     supersede, conflict with, or otherwise alter the employee 
     obligations, rights, or liabilities created by Executive 
     Order No. 12958; section 7211 of title 5, U.S.C. (governing 
     disclosures to Congress); section 1034 of title 10, United 
     States Code, as amended by the Military Whistleblower 
     Protection Act (governing disclosure to Congress by members 
     of the military); section 2302(b)(8) of title 5, United 
     States Code, as amended by the Whistleblower Protection Act 
     (governing disclosures of illegality, waste, fraud, abuse or 
     public health or safety threats); the Intelligence Identities 
     Protection Act of 1982 (50 U.S.C. 421 et seq.) (governing 
     disclosures that could expose confidential Government 
     agents); and the statutes which protect against disclosure 
     that may compromise the national security, including sections 
     641, 793, 794, 798, and 952 of title 18, United States Code, 
     and section 4(b) of the Subversive Activities Act of 1950 (50 
     U.S.C. 783(b)). The definitions, requirements, obligations, 
     rights, sanctions, and liabilities created by said Executive 
     order and listed statutes are incorporated into this 
     agreement and are

[[Page 26814]]

     controlling.'': Provided, That notwithstanding the preceding 
     paragraph, a nondisclosure policy form or agreement that is 
     to be executed by a person connected with the conduct of an 
     intelligence or intelligence-related activity, other than an 
     employee or officer of the United States Government, may 
     contain provisions appropriate to the particular activity for 
     which such document is to be used. Such form or agreement 
     shall, at a minimum, require that the person will not 
     disclose any classified information received in the course of 
     such activity unless specifically authorized to do so by the 
     United States Government. Such nondisclosure forms shall also 
     make it clear that they do not bar disclosures to Congress or 
     to an authorized official of an executive agency or the 
     Department of Justice that are essential to reporting a 
     substantial violation of law.
       Sec. 623. No part of any funds appropriated in this or any 
     other Act shall be used by an agency of the executive branch, 
     other than for normal and recognized executive-legislative 
     relationships, for publicity or propaganda purposes, and for 
     the preparation, distribution or use of any kit, pamphlet, 
     booklet, publication, radio, television or film presentation 
     designed to support or defeat legislation pending before the 
     Congress, except in presentation to the Congress itself.
       Sec. 624. (a) In General.--For calendar year 2002 and each 
     year thereafter, the Director of the Office of Management and 
     Budget shall prepare and submit to Congress, with the budget 
     submitted under section 1105 of title 31, United States Code, 
     an accounting statement and associated report containing--
       (1) an estimate of the total annual costs and benefits 
     (including quantifiable and nonquantifiable effects) of 
     Federal rules and paperwork, to the extent feasible--
       (A) in the aggregate;
       (B) by agency and agency program; and
       (C) by major rule;
       (2) an analysis of impacts of Federal regulation on State, 
     local, and tribal government, small business, wages, and 
     economic growth; and
       (3) recommendations for reform.
       (b) Notice.--The Director of the Office of Management and 
     Budget shall provide public notice and an opportunity to 
     comment on the statement and report under subsection (a) 
     before the statement and report are submitted to Congress.
       (c) Guidelines.--To implement this section, the Director of 
     the Office of Management and Budget shall issue guidelines to 
     agencies to standardize--
       (1) measures of costs and benefits; and
       (2) the format of accounting statements.
       (d) Peer Review.--The Director of the Office of Management 
     and Budget shall provide for independent and external peer 
     review of the guidelines and each accounting statement and 
     associated report under this section. Such peer review shall 
     not be subject to the Federal Advisory Committee Act (5 
     U.S.C. App.).
       Sec. 625. None of the funds appropriated by this or any 
     other Act may be used by an agency to provide a Federal 
     employee's home address to any labor organization except when 
     the employee has authorized such disclosure or when such 
     disclosure has been ordered by a court of competent 
     jurisdiction.
       Sec. 626. Hereafter, the Secretary of the Treasury is 
     authorized to establish scientific certification standards 
     for explosives detection canines, and shall provide, on a 
     reimbursable basis, for the certification of explosives 
     detection canines employed by Federal agencies, or other 
     agencies providing explosives detection services at airports 
     in the United States.
       Sec. 627. None of the funds made available in this Act or 
     any other Act may be used to provide any non-public 
     information such as mailing or telephone lists to any person 
     or any organization outside of the Federal Government without 
     the approval of the Committees on Appropriations.
       Sec. 628. No part of any appropriation contained in this or 
     any other Act shall be used for publicity or propaganda 
     purposes within the United States not heretofore authorized 
     by the Congress.
       Sec. 629. (a) In this section the term ``agency''--
       (1) means an Executive agency as defined under section 105 
     of title 5, United States Code;
       (2) includes a military department as defined under section 
     102 of such title, the Postal Service, and the Postal Rate 
     Commission; and
       (3) shall not include the General Accounting Office.
       (b) Unless authorized in accordance with law or regulations 
     to use such time for other purposes, an employee of an agency 
     shall use official time in an honest effort to perform 
     official duties. An employee not under a leave system, 
     including a Presidential appointee exempted under section 
     6301(2) of title 5, United States Code, has an obligation to 
     expend an honest effort and a reasonable proportion of such 
     employee's time in the performance of official duties.
       Sec. 630. (a) None of the funds appropriated by this Act 
     may be used to enter into or renew a contract which includes 
     a provision providing prescription drug coverage, except 
     where the contract also includes a provision for 
     contraceptive coverage.
       (b) Nothing in this section shall apply to a contract 
     with--
       (1) any of the following religious plans:
       (A) Personal Care's HMO;
       (B) Care Choices;
       (C) OSF Health Plans, Inc.; and
       (2) any existing or future plan, if the carrier for the 
     plan objects to such coverage on the basis of religious 
     beliefs.
       (c) In implementing this section, any plan that enters into 
     or renews a contract under this section may not subject any 
     individual to discrimination on the basis that the individual 
     refuses to prescribe or otherwise provide for contraceptives 
     because such activities would be contrary to the individual's 
     religious beliefs or moral convictions.
       (d) Nothing in this section shall be construed to require 
     coverage of abortion or abortion-related services.
       Sec. 631. Notwithstanding 31 U.S.C. 1346 and section 610 of 
     this Act, funds made available for fiscal year 2001 by this 
     or any other Act to any department or agency, which is a 
     member of the Joint Financial Management Improvement Program 
     (JFMIP), shall be available to finance an appropriate share 
     of JFMIP administrative costs, as determined by the JFMIP, 
     but not to exceed a total of $800,000 including the salary of 
     the Executive Director and staff support.
       Sec. 632. Notwithstanding 31 U.S.C. 1346 and section 610 of 
     this Act, the head of each Executive department and agency is 
     hereby authorized to transfer to the ``Policy and 
     Operations'' account, General Services Administration, with 
     the approval of the Director of the Office of Management and 
     Budget, funds made available for fiscal year 2001 by this or 
     any other Act, including rebates from charge card and other 
     contracts. These funds shall be administered by the 
     Administrator of General Services to support Government-wide 
     financial, information technology, procurement, and other 
     management innovations, initiatives, and activities, as 
     approved by the Director of the Office of Management and 
     Budget, in consultation with the appropriate interagency 
     groups designated by the Director (including the Chief 
     Financial Officers Council and the Joint Financial Management 
     Improvement Program for financial management initiatives, the 
     Chief Information Officers Council for information technology 
     initiatives, and the Procurement Executives Council for 
     procurement initiatives). The total funds transferred shall 
     not exceed $17,000,000. Such transfers may only be made 15 
     days following notification of the Committees on 
     Appropriations by the Director of the Office of Management 
     and Budget.
       Sec. 633. (a) In General.--In accordance with regulations 
     promulgated by the Office of Personnel Management, an 
     Executive agency which provides or proposes to provide child 
     care services for Federal employees may use appropriated 
     funds (otherwise available to such agency for salaries and 
     expenses) to provide child care, in a Federal or leased 
     facility, or through contract, for civilian employees of such 
     agency.
       (b) Affordability.--Amounts so provided with respect to any 
     such facility or contractor shall be applied to improve the 
     affordability of child care for lower income Federal 
     employees using or seeking to use the child care services 
     offered by such facility or contractor.
       (c) Definition.--For purposes of this section, the term 
     ``Executive agency'' has the meaning given such term by 
     section 105 of title 5, United States Code, but does not 
     include the General Accounting Office.
       (d) Notification.--None of the funds made available in this 
     or any other Act may be used to implement the provisions of 
     this section absent advance notification to the Committees on 
     Appropriations.
       Sec. 634. Notwithstanding any other provision of law, a 
     woman may breastfeed her child at any location in a Federal 
     building or on Federal property, if the woman and her child 
     are otherwise authorized to be present at the location.
       Sec. 635. Nothwithstanding section 1346 of title 31, United 
     States Code, or section 610 of this Act, funds made available 
     for fiscal year 2001 by this or any other Act shall be 
     available for the interagency funding of specific projects, 
     workshops, studies, and similar efforts to carry out the 
     purposes of the National Science and Technology Council 
     (authorized by Executive Order No. 12881), which benefit 
     multiple Federal departments, agencies, or entities: 
     Provided, That the Office of Management and Budget shall 
     provide a report describing the budget of and resources 
     connected with the National Science and Technology Council to 
     the Committees on Appropriations, the House Committee on 
     Science; and the Senate Committee on Commerce, Science, and 
     Transportation 90 days after enactment of this Act.
       Sec. 636. Retirement Provisions Relating to Certain Members 
     of the Police Force of the Metropolitan Washington Airports 
     Authority.--(a) Qualified MWAA Police Officer Defined.--For 
     purposes of this section, the term ``qualified MWAA police 
     officer'' means any individual who, as of the date of the 
     enactment of this Act--
       (1) is employed as a member of the police force of the 
     Metropolitan Washington Airports Authority (hereinafter in 
     this section referred to as an ``MWAA police officer''); and
       (2) is subject to the Civil Service Retirement System or 
     the Federal Employees' Retirement System by virtue of section 
     49107(b) of title 49, United States Code.
       (b) Eligibility To Be Treated as a Law Enforcement Officer 
     for Retirement Purposes.--
       (1) In general.--Any qualified MWAA police officer may, by 
     written election submitted in accordance with applicable 
     requirements under subsection (c), elect to be treated as a 
     law enforcement officer (within the meaning of section 8331 
     or 8401 of title 5, United States Code, as applicable), and 
     to have all prior service described in paragraph (2) 
     similarly treated.

[[Page 26815]]

       (2) Prior service described.--The service described in this 
     paragraph is all service which an individual performed, prior 
     to the effective date of such individual's election under 
     this section, as--
       (A) an MWAA police officer; or
       (B) a member of the police force of the Federal Aviation 
     Administration (hereinafter in this section referred to as an 
     ``FAA police officer'').
       (c) Regulations.--The Office of Personnel Management shall 
     prescribe any regulations necessary to carry out this 
     section, including provisions relating to the time, form, and 
     manner in which any election under this section shall be 
     made. Such an election shall not be effective unless--
       (1) it is made before the employee separates from service 
     with the Metropolitan Washington Airports Authority, but in 
     no event later than 1 year after the regulations under this 
     subsection take effect; and
       (2) it is accompanied by payment of an amount equal to, 
     with respect to all prior service of such employee which is 
     described in subsection (b)(2)--
       (A) the employee deductions that would have been required 
     for such service under chapter 83 or 84 of title 5, U.S.C. 
     (as the case may be) if such election had then been in 
     effect, minus
       (B) the total employee deductions and contributions under 
     such chapter 83 and 84 (as applicable) that were actually 
     made for such service,
     taking into account only amounts required to be credited to 
     the Civil Service Retirement and Disability Fund. Any amount 
     under paragraph (2) shall be computed with interest, in 
     accordance with section 8334(e) of such title 5.
       (d) Government Contributions.--Whenever a payment under 
     subsection (c)(2) is made by an individual with respect to 
     such individual's prior service (as described in subsection 
     (b)(2)), the Metropolitan Washington Airports Authority shall 
     pay into the Civil Service Retirement and Disability Fund any 
     additional contributions for which it would have been liable, 
     with respect to such service, if such individual's election 
     under this section had then been in effect (and, to the 
     extent of any prior FAA police officer service, as if it had 
     then been the employing agency). Any amount under this 
     subsection shall be computed with interest, in accordance 
     with section 8334(e) of title 5, United States Code.
       (e) Certifications.--The Office of Personnel Management 
     shall accept, for the purpose of this section, the 
     certification of--
       (1) the Metropolitan Washington Airports Authority (or its 
     designee) concerning any service performed by an individual 
     as an MWAA police officer; and
       (2) the Federal Aviation Administration (or its designee) 
     concerning any service performed by an individual as an FAA 
     police officer.
       (f) Reimbursement To Compensate for Unfunded Liability.--
       (1) In general.--The Metropolitan Washington Airports 
     Authority shall pay into the Civil Service Retirement and 
     Disability Fund an amount (as determined by the Director of 
     the Office of Personnel Management) equal to the amount 
     necessary to reimburse the Fund for any estimated increase in 
     the unfunded liability of the Fund (to the extent the Civil 
     Service Retirement System is involved), and for any estimated 
     increase in the supplemental liability of the Fund (to the 
     extent the Federal Employees' Retirement System is involved), 
     resulting from the enactment of this section.
       (2) Payment method.--The Metropolitan Washington Airports 
     Authority shall pay the amount so determined in five equal 
     annual installments, with interest (which shall be computed 
     at the rate used in the most recent valuation of the Federal 
     Employees' Retirement System).
       Sec. 637. (a) For purposes of this section--
       (1) the term ``comparability payment'' refers to a 
     locality-based comparability payment under section 5304 of 
     title 5, United States Code;
       (2) the term ``President's pay agent'' refers to the pay 
     agent described in section 5302(4) of such title; and
       (3) the term ``pay locality'' has the meaning given such 
     term by section 5302(5) of such title.
       (b) Notwithstanding any provision of section 5304 of title 
     5, United States Code, for purposes of determining 
     appropriate pay localities and making comparability payment 
     recommendations, the President's pay agent may, in accordance 
     with succeeding provisions of this section, make comparisons 
     of General Schedule pay and non-Federal pay within any of the 
     metropolitan statistical areas described in subsection 
     (d)(3), using--
       (1) data from surveys of the Bureau of Labor Statistics;
       (2) salary data sets obtained under subsection (c); or
       (3) any combination thereof.
       (c) To the extent necessary in order to carry out this 
     section, the President's pay agent may obtain any salary data 
     sets (referred to in subsection (b)) from any organization or 
     entity that regularly compiles similar data for businesses in 
     the private sector.
       (d)(1)(A) This paragraph applies with respect to the five 
     metropolitan statistical areas described in paragraph (3) 
     which--
       (i) have the highest levels of nonfarm employment (as 
     determined based on data made available by the Bureau of 
     Labor Statistics); and
       (ii) as of the date of the enactment of this Act, have not 
     previously been surveyed by the Bureau of Labor Statistics 
     (as discrete pay localities) for purposes of section 5304 of 
     title 5, United States Code.
       (B) The President's pay agent, based on such comparisons 
     under subsection (b) as the pay agent considers appropriate, 
     shall: (i) determine whether any of the five areas under 
     subparagraph (A) warrants designation as a discrete pay 
     locality; and (ii) if so, make recommendations as to what 
     level of comparability payments would be appropriate during 
     2002 for each area so determined.
       (C)(i) Any recommendations under subparagraph (B)(ii) shall 
     be included--
       (I) in the pay agent's report under section 5304(d)(1) of 
     title 5, United States Code, submitted for purposes of 
     comparability payments scheduled to become payable in 2002; 
     or
       (II) if compliance with subclause (I) is impracticable, in 
     a supplementary report which the pay agent shall submit to 
     the President and the Congress no later than March 1, 2001.
       (ii) In the event that the recommendations are completed in 
     time to be included in the report described in clause (i)(I), 
     a copy of those recommendations shall be transmitted by the 
     pay agent to the Congress contemporaneous with their 
     submission to the President.
       (D) Each of the five areas under subparagraph (A) that so 
     warrants, as determined by the President's pay agent, shall 
     be designated as a discrete pay locality under section 5304 
     of title 5, United States Code, in time for it to be treated 
     as such for purposes of comparability payments becoming 
     payable in 2002.
       (2) The President's pay agent may, at any time after the 
     180th day following the submission of the report under 
     subsection (f), make any initial or further determinations or 
     recommendations under this section, based on any pay 
     comparisons under subsection (b), with respect to any area 
     described in paragraph (3).
       (3) An area described in this paragraph is any metropolitan 
     statistical area within the continental United States that 
     (as determined based on data made available by the Bureau of 
     Labor Statistics and the Office of Personnel Management, 
     respectively) has a high level of nonfarm employment and at 
     least 2,500 General Schedule employees whose post of duty is 
     within such area.
       (e)(1) The authority under this section to make pay 
     comparisons and to make any determinations or recommendations 
     based on such comparisons shall be available to the 
     President's pay agent only for purposes of comparability 
     payments becoming payable on or after January 1, 2002, and 
     before January 1, 2007, and only with respect to areas 
     described in subsection (d)(3).
       (2) Any comparisons and recommendations so made shall, if 
     included in the pay agent's report under section 5304(d)(1) 
     of title 5, United States Code, for any year (or the pay 
     agent's supplementary report, in accordance with subsection 
     (d)(1)(C)(i)(II)), be considered and acted on as the pay 
     agent's comparisons and recommendations under such section 
     5304(d)(1) for the area and the year involved.
       (f)(1) No later than March 1, 2001, the President's pay 
     agent shall submit to the Committee on Government Reform of 
     the House of Representatives, the Committee on Governmental 
     Affairs of the Senate, and the Committees on Appropriations 
     of the House of Representatives and of the Senate, a report 
     on the use of pay comparison data, as described in subsection 
     (b)(2) or (3) (as appropriate), for purposes of comparability 
     payments.
       (2) The report shall include the cost of obtaining such 
     data, the rationale underlying the decisions reached based on 
     such data, and the relative advantages and disadvantages of 
     using such data (including whether the effort involved in 
     analyzing and integrating such data is commensurate with the 
     benefits derived from their use). The report may include 
     specific recommendations regarding the continued use of such 
     data.
       (g)(1) No later than May 1, 2001, the President's pay agent 
     shall prepare and submit to the committees specified in 
     subsection (f)(1) a report relating to the ongoing efforts of 
     the Office of Personnel Management, the Office of Management 
     and Budget, and the Bureau of Labor Statistics to revise the 
     methodology currently being used by the Bureau of Labor 
     Statistics in performing its surveys under section 5304 of 
     title 5, United States Code.
       (2) The report shall include a detailed accounting of any 
     concerns the pay agent may have regarding the current 
     methodology, the specific projects the pay agent has directed 
     any of those agencies to undertake in order to address those 
     concerns, and a time line for the anticipated completion of 
     those projects and for implementation of the revised 
     methodology.
       (3) The report shall also include recommendations as to how 
     those ongoing efforts might be expedited, including any 
     additional resources which, in the opinion of the pay agent, 
     are needed in order to expedite completion of the activities 
     described in the preceding provisions of this subsection, and 
     the reasons why those additional resources are needed.
       Sec. 638. Federal Funds Identified. Any request for 
     proposals, solicitation, grant application, form, 
     notification, press release, or other publications involving 
     the distribution of Federal funds shall indicate the agency 
     providing the funds and the amount provided. This provision 
     shall apply to direct payments, formula funds, and grants 
     received by a State receiving Federal funds.

[[Page 26816]]



     SEC. 639. MANDATORY REMOVAL FROM EMPLOYMENT OF FEDERAL LAW 
                   ENFORCEMENT OFFICERS CONVICTED OF FELONIES.

       (a) In General.--Chapter 73 of title 5, United States Code, 
     is amended by adding after subchapter VI the following:

 ``SUBCHAPTER VII--MANDATORY REMOVAL FROM EMPLOYMENT OF CONVICTED LAW 
                          ENFORCEMENT OFFICERS

     ``Sec. 7371. Mandatory removal from employment of law 
       enforcement officers convicted of felonies

       ``(a) In this section, the term--
       ``(1) `conviction notice date' means the date on which an 
     agency that employs a law enforcement officer has notice that 
     the officer has been convicted of a felony that is entered by 
     a Federal or State court, regardless of whether that 
     conviction is appealed or is subject to appeal; and
       ``(2) `law enforcement officer' has the meaning given that 
     term under section 8331(20) or 8401(17).
       ``(b) Any law enforcement officer who is convicted of a 
     felony shall be removed from employment as a law enforcement 
     officer on the last day of the first applicable pay period 
     following the conviction notice date.
       ``(c)(1) This section does not prohibit the removal of an 
     individual from employment as a law enforcement officer 
     before a conviction notice date if the removal is properly 
     effected other than under this section.
       ``(2) This section does not prohibit the employment of any 
     individual in any position other than that of a law 
     enforcement officer.
       ``(d) If the conviction is overturned on appeal, the 
     removal shall be set aside retroactively to the date on which 
     the removal occurred, with back pay under section 5596 for 
     the period during which the removal was in effect, unless the 
     removal was properly effected other than under this section.
       ``(e)(1) If removal is required under this section, the 
     agency shall deliver written notice to the employee as soon 
     as practicable, and not later than 5 calendar days after the 
     conviction notice date. The notice shall include a 
     description of the specific reasons for the removal, the date 
     of removal, and the procedures made applicable under 
     paragraph (2).
       ``(2) The procedures under section 7513 (b) (2), (3), and 
     (4), (c), (d), and (e) shall apply to any removal under this 
     section. The employee may use the procedures to contest or 
     appeal a removal, but only with respect to whether--
       ``(A) the employee is a law enforcement officer;
       ``(B) the employee was convicted of a felony; or
       ``(C) the conviction was overturned on appeal.
       ``(3) A removal required under this section shall occur on 
     the date specified in subsection (b) regardless of whether 
     the notice required under paragraph (1) of this subsection 
     and the procedures made applicable under paragraph (2) of 
     this subsection have been provided or completed by that 
     date.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 73 of title 5, United States Code, is 
     amended by adding after the item relating to section 7363 the 
     following:

``SUBCHAPTER VII--MANDATORY REMOVAL FROM EMPLOYMENT OF LAW ENFORCEMENT 
                                OFFICERS

``7371. Mandatory removal from employment of law enforcement officers 
              convicted of felonies.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect 30 days after the date of enactment of this 
     Act and shall apply to any conviction of a felony entered by 
     a Federal or State court on or after that date.
       Sec. 640. Section 504 of the Department of Transportation 
     and Related Agencies Appropriations Act, 2001 (as enacted 
     into law by Public Law 106-346) is repealed.
       Sec. 641. (a) Section 5545b(d) of title 5, United States 
     Code, is amended by inserting at the end the following new 
     paragraph:
       ``(4) Notwithstanding section 8114(e)(1), overtime pay for 
     a firefighter subject to this section for hours in a regular 
     tour of duty shall be included in any computation of pay 
     under section 8114.''.
       (b) The amendment in subsection (a) shall be effective as 
     if it had been enacted as part of the Federal Firefighters 
     Overtime Pay Reform Act of 1998 (112 Stat. 2681-519).
       Sec. 642. Section 6323(a) of title 5, United States Code, 
     is amended by adding at the end the following:
       ``(3) The minimum charge for leave under this subsection is 
     one hour, and additional charges are in multiples thereof.''.
       Sec. 643. Section 616 of the Treasury, Postal Service and 
     General Government Appropriations Act, 1988, as contained in 
     the Act of December 22, 1987 (40 U.S.C. 490b), is amended by 
     adding at the end the following:
       ``(e)(1) All existing and newly hired workers in any child 
     care center located in an executive facility shall undergo a 
     criminal history background check as defined in section 231 
     of the Crime Control Act of 1990 (42 U.S.C. 13041).
       ``(2) For purposes of this subsection, the term `executive 
     facility' means a facility that is owned or leased by an 
     office or entity within the executive branch of the 
     Government (including one that is owned or leased by the 
     General Services Administration on behalf of an office or 
     entity within the judicial branch of the Government).
       ``(3) Nothing in this subsection shall be considered to 
     apply with respect to a facility owned by or leased on behalf 
     of an office or entity within the legislative branch of the 
     Government.''.
       Sec. 644. Section 501 of the Department of Transportation 
     and Related Agencies Appropriations Act, 2001 (as enacted 
     into law by Public Law 106-346) is amended by striking 
     subsection (c) and by redesignating subsection (d) as 
     subsection (c).
       Sec. 645. (a)(1) Title 5, United States Code, is amended by 
     inserting after section 5372a the following:

     ``Sec. 5372b. Administrative appeals judges

       ``(a) For the purpose of this section--
       ``(1) the term `administrative appeals judge position' 
     means a position the duties of which primarily involve 
     reviewing decisions of administrative law judges appointed 
     under section 3105; and
       ``(2) the term `agency' means an Executive agency, as 
     defined by section 105, but does not include the General 
     Accounting Office.
       ``(b) Subject to such regulations as the Office of 
     Personnel Management may prescribe, the head of the agency 
     concerned shall fix the rate of basic pay for each 
     administrative appeals judge position within such agency 
     which is not classified above GS-15 pursuant to section 5108.
       ``(c) A rate of basic pay fixed under this section shall 
     be--
       ``(1) not less than the minimum rate of basic pay for level 
     AL-3 under section 5372; and
       ``(2) not greater than the maximum rate of basic pay for 
     level AL-3 under section 5372.''.
       (2) Section 7323(b)(2)(B)(ii) of title 5, United States 
     Code, is amended by striking ``or 5372a'' and inserting 
     ``5372a, or 5372b''.
       (3) The table of sections for chapter 53 of title 5, United 
     States Code, is amended by inserting after the item relating 
     to section 5372a the following:

``5372b. Administrative appeals judges.''.

       (b) The amendment made by subsection (a)(1) shall apply 
     with respect to pay for service performed on or after the 
     first day of the first applicable pay period beginning on or 
     after--
       (1) the 120th day after the date of the enactment of this 
     Act; or
       (2) if earlier, the effective date of regulations 
     prescribed by the Office of Personnel Management to carry out 
     such amendment.
       Sec. 646. Not later than 60 days after the date of 
     enactment of this Act, the Inspector General of each 
     department or agency shall submit to Congress a report that 
     discloses any activity of the applicable department or agency 
     relating to--
       (1) the collection or review of singular data, or the 
     creation of aggregate lists that include personally 
     identifiable information, about individuals who access any 
     Internet site of the department or agency; and
       (2) entering into agreements with third parties, including 
     other government agencies, to collect, review, or obtain 
     aggregate lists or singular data containing personally 
     identifiable information relating to any individual's access 
     or viewing habits for governmental and nongovernmental 
     Internet sites.
       This Act may be cited as the ``Treasury and General 
     Government Appropriations Act, 2001''.

 TREASURY DEPARTMENT, THE UNITED STATES POSTAL SERVICE, THE EXECUTIVE 
       OFFICE OF THE PRESIDENT, AND CERTAIN INDEPENDENT AGENCIES 
                             APPROPRIATIONS

       Following is explanatory language on H.R. 5658, as 
     introduced on December 14, 2000.
       The conferees on H.R. 4577 agree with the matter included 
     in H.R. 5658 and enacted in this conference report by 
     reference and the following description. This bill was 
     developed through negotiations by subcommittee members of the 
     Treasury, Postal Service, General Government Appropriations 
     Subcommittees of the House and Senate on the differences in 
     the House passed and Senate reported versions of H.R. 4871. 
     References in the following description to the ``conference 
     agreement'' mean the matter included in the introduced bill 
     enacted by this conference report. References to the House 
     bill mean the House passed version of H.R. 4871. References 
     to the Senate reported bill or Senate reported amendment mean 
     the Senate reported version of H.R. 4871.
       H.R. 4871, the House passed Treasury, Postal Service, and 
     General Government Appropriation Bill, 2001, and S. 2900, the 
     Senate reported Treasury and General Government Appropriation 
     Bill, 2001, were the basis for development of the introduced 
     bill. The following statement is an explanation of the action 
     agreed upon in resolving the differences of those two bills 
     and recommended in the accompanying conference report.
       The conference agreement on the Treasury and General 
     Government Appropriations Act, 2001, incorporates some of the 
     language and allocations set forth in House Report 106-756 
     and in the Senate Report to accompany S. 2900. The language 
     in these reports should be complied with unless specifically 
     addressed in the accompanying statement of managers. 
     Throughout the accompanying explanatory statement, the 
     managers refer to the Committee and the Committees on 
     Appropriations. Unless otherwise noted, in both instances, 
     the managers are referring to the House Subcommittee on 
     Treasury, Postal Service, and General Government and the 
     Senate Subcommittee on Treasury and General Government.

             Reprogramming and Transfer of Funds Guidelines

       The conference agreement includes the following 
     reprogramming guidelines which

[[Page 26817]]

     shall be complied with by all agencies funded by the Treasury 
     and General Government Appropriations Act, 2001:
       1. Except under extraordinary and emergency situations, the 
     Committees on Appropriations will not consider requests for a 
     reprogramming or a transfer of funds, or use of unobligated 
     balances, which are submitted after the close of the third 
     quarter of the fiscal year, June 30;
       2. Clearly stated and detailed documentation presenting 
     justification for the reprogramming, transfer, or use of 
     unobligated balances shall accompany each request;
       3. For agencies, departments, or offices receiving 
     appropriations in excess of $20,000,000, a reprogramming 
     shall be submitted if the amount to be shifted to or from any 
     object class, budget activity, program line item, or program 
     activity involved is in excess of $500,000 or 10 percent, 
     whichever is greater, of the object class, budget activity, 
     program line item, or program activity;
       4. For agencies, departments, or offices receiving 
     appropriations less than $20,000,000, a reprogramming shall 
     be submitted if the amount to be shifted to or from any 
     object class, budget activity, program line item, or program 
     activity involved is in excess of $50,000, or 10 percent, 
     whichever is greater, of the object class, budget activity, 
     program line item, or program activity;
       5. For any action where the cumulative effect of below 
     threshold reprogramming actions, or past reprogramming and/or 
     transfer actions added to the request, would exceed the 
     dollar threshold mentioned above, a reprogramming shall be 
     submitted;
       6. For any action which would result in a major change to 
     the program or item which is different than that presented to 
     and approved by either of the Committees, or the Congress, a 
     reprogramming shall be submitted;
       7. For any action where funds earmarked by either of the 
     Committees for a specific activity are proposed to be used 
     for a different activity, a reprogramming shall be submitted; 
     and,
       8. For any action where funds earmarked by either of the 
     Committees for a specific activity are in excess of the 
     project or activity requirement, and are proposed to be used 
     for a different activity, a reprogramming shall be submitted.
       Additionally, each request shall include a declaration 
     that, as of the date of the request, none of the funds 
     included in the request have been obligated, and none will be 
     obligated, until the Committees on Appropriations have 
     approved the request.

                  TITLE I--DEPARTMENT OF THE TREASURY

                          Departmental Offices


                         SALARIES AND EXPENSES

       The conferees agree to provide $156,315,000 instead of 
     $149,437,000 as proposed by the House and $149,610,000 as 
     proposed by the Senate. Included in this amount is $7,332,000 
     to maintain current levels; $3,813,000 as a transfer from the 
     Department-Wide Systems and Capital Investments Programs 
     (SCIP); $3,027,000 to annualize the costs of the fiscal year 
     2000 drug supplemental for the Office of Foreign Asset 
     Control (OFAC); $854,000 to annualize the costs of filling 6 
     positions with the Office of International Affairs during 
     fiscal year 2000; $2,899,000 for OFAC program initiatives; 
     $504,000 and no more than 3 positions for increased 
     management and coordination by the Office of Enforcement of 
     the Department's involvement in the National Money Laundering 
     Strategy; $2,900,000 for grants to state and local law 
     enforcement groups to help combat money laundering; $502,000 
     for reimbursements to Morris County, New Jersey, for law 
     enforcement agencies; $150,000 for reimbursements to 
     Arlington County, Virginia, law enforcement agencies; and not 
     to exceed $300,000 to reimburse the State Police, the police 
     departments of the towns of New Castle, North Castle, Mount 
     Kisco, Bedford, and the Department of Public Safety of 
     Westchester County of the State of New York.


                RECEPTION AND REPRESENTATION ALLOWANCES

       The conferees are concerned to learn that, over the past 
     several years, the Office of the Under Secretary of 
     Enforcement has required the various Treasury law enforcement 
     bureaus to transfer a portion of their reception and 
     representation funds to the Office of the Under Secretary. 
     Although there may be certain functions appropriate to the 
     involvement of all the Treasury law enforcement bureaus, the 
     conferees remind the Under Secretary that expenses for these 
     events are accommodated within the amounts authorized for 
     Departmental Offices reception and representation allowances. 
     In the event that the Under Secretary believes that 
     Departmental Offices representation allowances are 
     insufficient to meet current needs, the Under Secretary 
     should submit a justification for increases to this allowance 
     to the Committees for its consideration. The conferees also 
     direct the Under Secretary to submit for advance approval any 
     requirement to use reception and representation allowance 
     funds from any appropriation account other than Departmental 
     Offices, Salaries and Expenses.


                           ALTERNATIVE FUELS

       The conferees urge the Treasury Department to use ethanol, 
     biodiesel, and other alternative fuels to the maximum extent 
     practicable in meeting the Department's fuel needs.

        Department-Wide Systems and Capital Investments Programs

       The conferees agree to provide $47,287,000 instead of 
     $41,787,000 as proposed by the House and $37,279,000 as 
     proposed by the Senate. Included in this amount is 
     $14,779,000 for communications infrastructure (including 
     radios and related equipment) associated with Departmental 
     law enforcement responsibilities for the Salt Lake City 
     Winter Olympics; $2,000,000 for Critical Infrastructure 
     Protection; and $3,500,000 for Public Key Infrastructure.

                      Office of Inspector General


                         SALARIES AND EXPENSES

       The conferees agree to provide $32,899,000 as proposed by 
     the Senate instead of $31,940,000 as proposed by the House.

           Treasury Inspector General for Tax Administration


                         SALARIES AND EXPENSES

       The conferees agree to provide $118,427,000 as proposed by 
     Senate instead of $115,477,000 as proposed by the House.

           Treasury Building and Annex Repair and Restoration

       The conferees agree to provide $31,000,000 as proposed by 
     the House instead of $22,700,000 as proposed by the Senate.

                 Expanded Access to Financial Services

       The conferees agree to provide $2,000,000 as proposed by 
     the House instead of $400,000 as proposed by the Senate. The 
     conferees agree to $300,000 to assist one or more locally-
     owned Alaska banking institutions and community partners and 
     $100,000 to begin a pilot program with the Metropolitan 
     Family Services' Family Economic Development program.

                  Financial Crimes Enforcement Network


                         SALARIES AND EXPENSES

       The conferees agree to provide $37,576,000 as proposed by 
     the Senate instead of $34,694,000 as proposed by the House.

                         Counterterrorism Fund

       The conferees agree to provide $55,000,000 for the 
     Counterterrorism Fund as proposed by the Senate instead of no 
     appropriation as proposed by the House. Funds are provided as 
     a contingent emergency.

                        Treasury Forfeiture Fund

       The conferees are aware that the $42,500,000 assumed to be 
     available by the Administration in the Super Surplus to the 
     Treasury Forfeiture Fund will not be available in fiscal year 
     2001. Activities proposed for funding through this account 
     have been included in either Salaries and Expenses or 
     Construction related accounts, as appropriate, for the 
     individual law enforcement bureaus.

                Federal Law Enforcement Training Center


                         SALARIES AND EXPENSES

       The conferees agree to provide $94,483,000 instead of 
     $93,483,000 as proposed by the House and $93,198,000 as 
     proposed by the Senate. Included in this amount is $1,000,000 
     for the rural law enforcement education project.


     ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED EXPENSES

       The conferees agree to provide $29,205,000 as proposed by 
     the Senate instead of $17,331,000 as proposed by the House.

                      Interagency Law Enforcement


                 INTERAGENCY CRIME AND DRUG ENFORCEMENT

       The conferees agree to provide $103,476,000 as proposed by 
     the House instead of $90,976,000 as proposed by the Senate.

                      Financial Management Service


                         SALARIES AND EXPENSES

       The conferees agree to provide $206,851,000 instead of 
     $198,736,000 as proposed by the House and $202,851,000 as 
     proposed by the Senate. The conferees fully fund the 
     President's request. In addition, the conferees include 
     $4,000,000 to partially fund a budget shortfall. The 
     conferees fully concur with the language on this topic 
     contained under Departmental Offices in the Senate Report 
     accompanying S. 2900.

                Bureau of Alcohol, Tobacco and Firearms


                         SALARIES AND EXPENSES

       The conferees agree to provide $768,695,000 instead of 
     $731,325,000 as proposed by the House and $724,937,000 as 
     proposed by the Senate. The conferees fully fund the 
     President's request with the exception of $5,521,000 for 
     tobacco compliance initiatives and $4,148,000 for the 
     proposed Joint Terrorism Task Forces.


             GANG RESISTANCE EDUCATION AND TRAINING GRANTS

       The conferees agree to provide $13,000,000 for grants to 
     local law enforcement organizations as proposed by the 
     Senate.

                     United States Customs Service


                         SALARIES AND EXPENSES

       The conferees agree to provide $1,863,765,000 instead of 
     $1,822,365,000 as proposed by the House and $1,804,687,000 as 
     proposed by the Senate. Included in this amount is 
     $13,700,000 for the second year of funding of the fiscal year 
     2000 Southwest Border initiative; $10,000,000 for security 
     enhancements along

[[Page 26818]]

     the northern border; $11,000,000 for vehicle replacement; 
     $3,700,000 for money laundering; $9,500,000 for drug 
     investigations; and an additional $5,000,000 to combat forced 
     child labor. Additionally, the conferees include $500,000 for 
     Customs' ongoing research on trade of agricultural 
     commodities and products at a Northern Plains university with 
     an agricultural economics program and support the use of 
     $2,500,000 for the acquisition of Passive Radar Detection 
     Technology.


              TARGETED RESOURCES FOR THE SOUTHWEST BORDER

       The conferees provide $13,700,000 to be combined with the 
     $11,300,000 in fiscal year 2000 Super Surplus of the Treasury 
     Forfeiture Fund to hire new inspectors, agents, or acquire 
     new detection technology for use along the Southwest border 
     for a total of $25,000,000. The House conferees do not concur 
     with the Senate Report language on Targeted Resources for the 
     Southwest Border.


                             PORTS OF ENTRY

       The conferees have received numerous requests to establish, 
     expand, or preserve Customs presence at various ports, as 
     well as, to designate new ports of entry. Customs has made a 
     commitment to put in place a staffing resource allocation 
     model to permit a more transparent and consistent basis for 
     making such decisions, but the delay in doing so has caused 
     concern about the ability of Customs to fulfill its 
     responsibilities. The conferees therefore direct the Treasury 
     Department and Customs to complete this model and to report 
     to the Committees on Appropriations not later than November 
     1, 2000 on its implementation. In relation to this, the 
     conferees urge the Customs Service to give full consideration 
     to the needs of the following areas for increases or 
     improvements in Customs services: Fargo, North Dakota; 
     Highgate Springs, Vermont; Charleston, South Carolina; 
     Charleston, West Virginia; Honolulu, Hawaii; Great Falls, 
     Sweetgrass-Coutts, and Missoula, Montana; Tri-Cities Regional 
     Airport, Tennessee; Dulles International Airport, Virginia; 
     Louisville International Airport, Kentucky; Miami 
     International Airport, Florida; Pittsburg, New Hampshire; San 
     Antonio, Texas; and multiple port areas in Arizona, New 
     Mexico, and Florida.


  OPERATION, MAINTENANCE AND PROCUREMENT, AIR AND MARINE INTERDICTION 
                                PROGRAMS

       The conferees agree to provide $133,228,000 instead of 
     $125,778,000 as proposed by the House and $128,228,000 as 
     proposed by the Senate. Included in this amount is $5,000,000 
     for source zone deployment of P-3's; $2,174,000 to maintain 
     current levels; $7,450,000 for flight safety and 
     enhancements; and $9,916,000 for costs associated with the 
     delivery of new P-3's.


                        AUTOMATION MODERNIZATION

       The conferees agree to provide $258,400,000 instead of 
     $233,400,000 as proposed by the House and $128,400,000 as 
     proposed by the Senate. Included in this amount is $5,400,000 
     for the International Trade Data System, as well as not less 
     than $130,000,000 to begin work on the Automated Commercial 
     Environment (ACE).

                       Bureau of the Public Debt


                     ADMINISTERING THE PUBLIC DEBT

       The conferees agree to provide $182,901,000 as proposed by 
     the House and Senate. The conferees agree to include a 
     provision as proposed by the Senate with respect to 
     administrative costs associated with certain trust funds.

                        Internal Revenue Service


                 PROCESSING, ASSISTANCE, AND MANAGEMENT

       The conferees agree to provide $3,567,001,000 instead of 
     $3,487,232,000 as proposed by the House and $3,506,939,000 as 
     proposed by the Senate. The conferees fully fund the 
     President's request with respect to adjustments required to 
     maintain current levels of service, organizational 
     modernization, and operational contract support. The funding 
     level also reflects an increase of $60,000,000 above the 
     fiscal year 2000 level as a result of an inter-appropriation 
     transfer during fiscal year 2000. The conferees have not 
     provided any funding for the Staffing Tax Administration for 
     Balance and Equity (STABLE) initiative, a proposed fiscal 
     year 2001 inter-appropriation transfer, or the electronic tax 
     administration marketing initiative.


                     IRS DATA FOR ECONOMIC MODELING

       The conferees are aware of the critical importance and 
     usefulness of IRS data to economic modeling, such as the 
     modeling used to project the economic impact of proposed 
     Social Security legislation. The conferees direct IRS to 
     continue working closely with the Bureau of the Census to 
     ensure the appropriate availability of these data in a timely 
     manner to groups such as the Congressional Budget Office 
     (CBO) to facilitate the operation of CBO's long-term models 
     of Social Security and Medicare. CBO requires records from 
     the IRS' Statistics Of Income that are matched with survey 
     data from the Bureau of the Census (involving the Current 
     Population Survey and the Survey of Income and Program 
     Participation) and records of the Social Security 
     Administration with all record identifiers removed.


                          TAX LAW ENFORCEMENT

       The conferees agree to provide $3,382,402,000 instead of 
     $3,332,676,000 as proposed by the House and $3,378,040,000 as 
     proposed by the Senate. The conferees fully fund the 
     President's request with respect to adjustments required to 
     maintain current levels of service and operational contract 
     support. The funding level also reflects a decrease of 
     $100,000,000 below the fiscal year 2000 level as a result of 
     an inter-appropriation transfer during fiscal year 2000 and a 
     decrease of $666,000 for a transfer to the Treasury Inspector 
     General for Tax Administration, as requested. The conferees 
     have not provided any funding for the Staffing Tax 
     Administration for Balance and Equity (STABLE) initiative or 
     for the Counterterrorism Initiative, nor have they agreed to 
     a proposed transfer of $41,000,000 out of the account as an 
     inter-appropriation transfer during fiscal year 2001.


                          INFORMATION SYSTEMS

       The conferees agree to provide $1,545,090,000 instead of 
     $1,488,090,000 as proposed by the House and $1,505,090,000 as 
     proposed by the Senate. The conferees fully fund the 
     President's request with the exception of the Staffing Tax 
     Administration for Balance and Equity (STABLE) initiative and 
     $3,000,000 for an inter-appropriation transfer proposed for 
     fiscal year 2001.


           ADMINISTRATIVE PROVISIONS-INTERNAL REVENUE SERVICE

       Section 101. The conferees agree to continue a provision 
     which allows the transfer of 5 percent of any appropriation 
     made available to the IRS to any other IRS appropriation 
     subject to Congressional approval.
       Section 102. The conferees agree to continue a provision 
     which requires the IRS to maintain a training program in 
     taxpayers' rights, dealing courteously with taxpayers, and 
     cross cultural relations.
       Section 103. The conferees agree to continue a provision 
     which requires the IRS to institute and enforce policies and 
     practices that will safeguard the confidentially of taxpayer 
     information.
       Section 104. The conferees agree to continue a provision 
     proposed by the Senate with respect to the IRS 1-800 help 
     line service.

                      UNITED STATES SECRET SERVICE


                         SALARIES AND EXPENSES

       The conferees agree to provide $823,800,000 as proposed by 
     the House instead of $778,279,000 as proposed by the Senate.


      ACQUISITION, CONSTRUCTION, IMPROVEMENT, AND RELATED EXPENSES

       The conferees agree to provide $8,941,000 instead of 
     $5,021,000 as proposed by the House and $4,283,000 as 
     proposed by the Senate. Included in this amount is $3,920,000 
     for security enhancements at the Vice President's residence.

             GENERAL PROVISIONS--DEPARTMENT OF THE TREASURY

       Section 110. The conferees agree to continue a provision 
     which requires the Secretary of the Treasury to comply with 
     certain reprogramming guidelines when obligating or expending 
     funds for law enforcement activities.
       Section 111. The conferees agree to continue a provision 
     which allows the Department of the Treasury to purchase 
     uniforms, insurance, and motor vehicles without regard to the 
     general purchase price limitation, and enter into contracts 
     with the Department of State for health and medical services 
     for Treasury employees in overseas locations.
       Section 112. The conferees agree to continue a provision 
     which requires the expenditure of funds so as not to diminish 
     efforts under section 105 of the Federal Alcohol 
     Administration Act.
       Section 113. The conferees agree to continue a provision 
     which authorizes transfers, up to 2 percent, between law 
     enforcement appropriations under certain circumstances.
       Section 114. The conferees agree to continue a provision 
     which authorizes the transfer, up to 2 percent, between the 
     Departmental Offices, Office of Inspector General, Treasury 
     Inspector General for Tax Administration, Financial 
     Management Service, and Bureau of Public Debt appropriations 
     under certain circumstances.
       Section 115. The conferees agree to include a new provision 
     proposed by the House that authorizes transfer, up to 2 
     percent, between the Internal Revenue Service and the 
     Treasury Inspector General for Tax Administration under 
     certain circumstances.
       Section 116. The conferees agree to continue a provision 
     regarding the purchase of law enforcement vehicles.
       Section 117. The conferees agree to continue a provision 
     proposed by the House which prohibits the Department of the 
     Treasury and the Bureau of Engraving and Printing from 
     redesigning the $1 Federal Reserve Note.
       Section 118. The conferees agree to continue and make 
     permanent a provision which authorizes Treasury law 
     enforcement agencies to pay their protection officers premium 
     pay in excess of the pay period limitation.
       Section 119. The conferees agree to include a new provision 
     that provides for transfer from and reimbursements to the 
     Salaries and Expenses appropriation of the Financial 
     Management Service for the purposes of debt collection.
       Section 120. The conferees agree to include a new provision 
     that extends the Treasury Franchise Fund through October 1, 
     2002.

[[Page 26819]]

       Section 121. The conferees agree to include a new provision 
     that requires that no reorganization of the US Customs 
     Service shall result in a reduction of service to the area 
     served by the Port of Racine, Wisconsin, below the level of 
     service provided in fiscal year 2000.
       Section 122. The conferees agree to include a new provision 
     proposed by the House authorizing and directing the Bureau of 
     Alcohol, Tobacco and Firearms to reimburse the subcontractor 
     that provided services in 1993 and 1994 pursuant to Bureau of 
     Alcohol, Tobacco and Firearms contract number TATF 93-3 out 
     of fiscal year 2001 appropriations or prior year unobligated 
     balances.

                        TITLE II--POSTAL SERVICE

                   Payment to the Postal Service Fund

       The conferees agree to provide $96,093,000 as proposed by 
     the House instead of $67,093,000 as proposed by the Senate. 
     Of this amount, $67,093,000 is provided as an advance 
     appropriation for free and reduced rate mail and $29,000,000 
     is provided for reimbursement to the Postal Service for prior 
     year losses.

TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO 
                             THE PRESIDENT

        Compensation of the President and the White House Office


                         SALARIES AND EXPENSES

       The conferees agree to provide $53,288,000 as proposed by 
     the Senate instead of $52,135,000 as proposed by the House 
     and include a proviso that $9,072,000 of the funds 
     appropriated shall be available for reimbursements to the 
     White House Communications Agency, as proposed by the House.

                 Executive Residence at the White House


                           OPERATING EXPENSES

       The conferees agree to provide $10,900,000 as proposed by 
     the Senate instead of $10,286,470 as proposed by the House.


                   WHITE HOUSE REPAIR AND RESTORATION

       The conferees agree to provide $968,000 instead of 
     $5,510,000 as proposed by the Senate and $658,000 as proposed 
     by the House. The conferees provide $458,000 for the design 
     and replacement of the existing concrete raceway containing 
     voice and communication lines serving the East Wing and the 
     Executive Residence instead of the full request of 
     $5,000,000. The conferees direct the Executive Residence to 
     submit a completed design to the Committees on 
     Appropriations, including an estimate of total construction 
     costs associated with this project.

Special Aassistance to the President and Official Residence of the Vice 
                               President


                         SALARIES AND EXPENSES

       The conferees agree to provide $3,673,000 as proposed by 
     the Senate instead of $3,664,000 as proposed by the House.

                      Council of Economic Advisors


                         SALARIES AND EXPENSES

       The conferees agree to provide $4,110,000 as proposed by 
     the Senate instead of $3,997,000 as proposed by the House.

                      Office of Policy Development


                         SALARIES AND EXPENSES

       The conferees agree to provide $4,032,000 as proposed by 
     the Senate instead of $4,030,000 as proposed by the House.

                       National Security Council


                         SALARIES AND EXPENSES

       The conferees agree to provide $7,165,000 as proposed by 
     the Senate instead of $7,148,000 as proposed by the House.

                        Office of Administration


                         SALARIES AND EXPENSES

       The conferees agree to provide $43,737,000 as proposed by 
     the Senate instead of $41,185,000 as proposed by the House. 
     The conferees agree to delete language proposed by the House 
     to delay the effective date of section 638(h) of Public Law 
     106-58, regarding the establishment of a Chief Financial 
     Officer within the Executive Office of the President.

                    Office of Management and Budget


                         SALARIES AND EXPENSES

       The conferees agree to provide $68,786,000 instead of 
     $67,143,000 as proposed by the House and $67,935,000 as 
     proposed by the Senate. The conferees fully fund the 
     President's request.


        APPORTIONMENT FOR INTERNATIONAL FOOD ASSISTANCE PROGRAMS

       The conferees do not concur with the House report language 
     regarding apportionment for International Food Assistance 
     Programs.

                 Office of National Drug Control Policy


                         SALARIES AND EXPENSES

       The conferees agree to provide $24,759,000 as proposed by 
     the House instead of $24,312,000 as proposed by the Senate.

                Counterdrug Technology Assessment Center

       The conferees agree to provide $29,053,000 instead of 
     $29,750,000 as proposed by the House and $29,052,000 as 
     proposed by the Senate.

                     Federal Drug Control Programs


             HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM

       The conferees agree to provide $206,500,000 instead of 
     $217,000,000 as proposed by the House and $196,000,000 as 
     proposed by the Senate. The conferees fully fund the 
     Administration's request, and include an additional 
     $14,500,000 to increase funding or expand existing HIDTAs, or 
     to fund newly designated HIDTAs. The conferees provide that 
     existing HIDTAs shall be funded at fiscal year 2000 levels 
     unless the ONDCP Director submits to the Committees, and the 
     Committees approve, justification for changes in those levels 
     based on clearly articulated priorities for the HIDTA 
     program, as well as published ONDCP performance measures of 
     effectiveness (PMEs). Similarly, while the conferees provide 
     additional funding that may be used for newly designated 
     HIDTAs, they direct that no funds may be obligated for such 
     purposes until similar justification is provided to the 
     Committees for approval.
       The ability to evaluate effectiveness of individual HIDTAs, 
     and to match funding needs against budgets, depends on 
     reliable and consistent methodology for performance 
     measurement and management. This is particularly important 
     given the key role HIDTAs play in bringing together many 
     divergent counterdrug agencies and crosscutting programs--
     which also exacerbates the problem of isolating the impact of 
     HIDTAs. The conferees anticipate that the completion of work 
     by the HIDTA Performance Management Working Group will 
     improve performance measurement methodology and data 
     collection covering the three main target areas identified in 
     1999. These are: increasing compliance with HIDTA 
     developmental standards; dismantling or disabling at least 5 
     percent of targeted drug trafficking organizations; and 
     reducing specific types of violent crime. The conferees 
     support ONDCP plans to validate and verify the HIDTA 
     management, including the use of on-site reviews and external 
     financial evaluations.
       As ONDCP reviews candidates for new HIDTA funding, the 
     conferees direct it to consider the following: Las Vegas, 
     Nevada; Arkansas; Minnesota; North Carolina; and Northern 
     Florida, which have requested designation; increases for 
     Central Florida, Southwest Border (for New Mexico, South 
     Texas, West Texas, and Arizona), New England, Gulf Coast, 
     Oregon, Northwest (including southwest and eastern 
     Washington), and Chicago HIDTAs; and full minimum funding for 
     new HIDTAs in Central Valley, California, Hawaii, and Ohio. 
     The conferees urge ONDCP to consider using funds provided 
     above the budget request for designating new HIDTAs from 
     areas which have already submitted requests.


                        SPECIAL FORFEITURE FUND

       The conferees agree to provide $233,600,000 instead of 
     $219,000,000 as proposed by the House and $144,300,000 as 
     proposed by the Senate. Of this amount, the conferees provide 
     $185,000,000 for the National Youth Anti-Drug Media Campaign; 
     $40,000,000 to carry out the Drug Free Communities Act; 
     $3,000,000 for the costs of space and operations of the 
     counter drug intelligence executive secretariat (CDX); 
     $3,300,000 for anti-doping efforts of the United States 
     Olympic Committee; $1,300,000 to the Metro Intelligence 
     Support and Technical Investigative Center (MISTIC); and 
     $1,000,000 for the National Drug Court Institute.


                NATIONAL YOUTH ANTI-DRUG MEDIA CAMPAIGN

       The conferees negate neither the House nor Senate Committee 
     Report language regarding the youth media campaign. The 
     conferees are concerned with ONDCP's use of pro bono credits 
     under the match program for programming content, and note 
     with interest the Statement of Pro-Bono Match Program and 
     Guidelines that ONDCP posted on its website in July 2000. 
     Consistent with those guidelines, the conferees direct that 
     ONDCP not issue credits for ad time and/or space if already 
     purchased with funds appropriated for the campaign. 
     Furthermore, the conferees direct that ONDCP not issue any 
     credits for programming content once a program is in 
     syndication unless it has previously reported to the 
     Committees on Appropriations reasons why such credit is 
     necessary. Finally, the conferees underscore the language on 
     page 11 of the guidelines that reads ``ONDCP exercises its 
     authority to review public service match materials for credit 
     and valuation through its primary advertising contractor. No 
     ONDCP contractor may make suggestions or requests about, or 
     otherwise attempt to influence or modify the creative product 
     of any media organization or representative for the purpose 
     of qualifying for pro bono match credit.'' In keeping with 
     this the conferees direct ONDCP to ensure that neither it nor 
     its contractor will review programming content under 
     consideration for pro bono credit under the match program 
     until such programming is in its final form.

       TITLE IV--INDEPENDENT AGENCIES FEDERAL ELECTION COMMISSION


                         SALARIES AND EXPENSES

       The conferees agree to provide $40,500,000 instead of 
     $40,240,000 as proposed by the House and $39,755,000 as 
     proposed by the Senate.

                    General Services Administration


                         FEDERAL BUILDINGS FUND

                 LIMITATIONS ON AVAILABILITY OF REVENUE

       The conferees agree to provide $5,971,509,000 in new 
     obligational authority instead of

[[Page 26820]]

     $5,272,370,000 as proposed by the House and $5,502,333,000 as 
     proposed by the Senate. The conferees directly appropriate 
     $464,154,000 into the Fund to cover a portion of the new 
     obligational needs of the Fund.


                         AFRICAN BURIAL GROUND

       The conferees recognize the efforts of GSA to memorialize 
     the 17th and 18th century African Americans whose remains 
     were discovered during the excavation for a new Federal 
     building at Foley Square in lower Manhattan. Since 1992, 
     significant work has been conducted on the memorialization 
     but additional work is required prior to and including the 
     reinterment of the remains. The conferees expect GSA to 
     complete the project using funds made available from the 
     Federal Buildings Fund or from the borrowing authority 
     remaining for the buildings project at Foley Square.


                      CONSTRUCTION AND ACQUISITION

       The conferees agree to provide $472,176,000 instead of no 
     funding as proposed by the House and $3,000,000 as proposed 
     by the Senate. These funds are provided for nine projects. 
     The conferees direct GSA to provide a written report to the 
     Committees on Appropriations with respect to how GSA plans to 
     allocate these funds among the various projects prior to 
     allocating the funds. Within the funds provided the conferees 
     have included $3,500,000 for the design and site acquisition 
     of a combined law enforcement facility in Saint Petersburg, 
     Florida.
       The conferees also agree to provide $276,400,000 as an 
     advance appropriation, not available until October 1, 2001, 
     for four courthouse construction projects.


                        REPAIRS AND ALTERATIONS

       The conferees agree to provide $671,193,000 as proposed by 
     the Senate instead of $490,592,000 as proposed by the House. 
     This level fully funds the request with the following 
     exceptions: no funds are provided for the chlorofluorocarbon 
     program, the energy program is funded at $5,000,000, and the 
     glass fragment retention program is funded at $5,000,000.


                          BUILDING OPERATIONS

       The conferees agree to provide $1,624,771,000 as proposed 
     by the Senate instead of $1,580,909,000 as proposed by the 
     House. Within this limitation level, the conferees have 
     included $500,000 to conduct a site selection analysis for a 
     replacement facility for the National Center for 
     Environmental Prediction of the National Oceanic and 
     Atmospheric Administration, currently located in Camp 
     Springs, Maryland. The delineated area shall be in the 
     Washington, D.C. Metropolitan area and include the 
     consideration of appropriate educational institutions 
     qualified to be project partners. A report on the findings of 
     the study shall be provided to the conferees within 120 days 
     of the enactment of this Act.


                         POLICY AND OPERATIONS

       The conferees agree to provide $123,920,000 instead of 
     $123,420,000 as proposed by the Senate and $115,434,000 as 
     proposed by the House. Increases above the enacted level 
     include $3,285,000 for pay costs to maintain current levels, 
     $2,075,000 for protection and maintenance at the Lorton 
     complex in Virginia, and $8,000,000 for the critical 
     infrastructure protection initiative. The conferees agree to 
     provide up to $500,000 for virtual archive storage and agree 
     to provide $190,000, from within available funds, for the 
     Plains States Depopulation Symposium as proposed by the 
     Senate. The conferees do not agree to the reduction of 
     funding from the fiscal year 2000 level for the digital 
     learning technology effort and direct that $1,000,000 be used 
     to continue a digital medical education project in connection 
     with the Native American Digital Telehealth Project and Upper 
     Great Plains Native American Telehealth Program and that 
     $1,000,000 be used to continue activities that will be the 
     basis for the 21st Century Distributed Learning Environment 
     in Education.


                           ALTERNATIVE FUELS

       The conferees urge the General Services Administration to 
     use ethanol, biodiesel, and other alternative fuels to the 
     maximum extent practicable in meeting GSA's fuel needs.


                   EXPENSES, PRESIDENTIAL TRANSITION

       The conferees agree to provide $7,100,000, as proposed by 
     the Senate instead of no appropriation as proposed by the 
     House.

          GENERAL SERVICES ADMINISTRATION--GENERAL PROVISIONS

       Section 401. The conferees agree to continue a provision 
     that provides that accounts available to GSA shall be 
     credited with certain funds received from government 
     corporations.
       Section 402. The conferees agree to continue a provision 
     that provides that funds available to GSA shall be available 
     for the hire of passenger motor vehicles.
       Section 403. The conferees agree to continue a provision 
     that authorizes GSA to transfer funds within the Federal 
     Buildings Fund to meet program requirements subject to 
     approval by the Committees on Appropriations.
       Section 404. The conferees agree to continue a provision 
     that prohibits the use of funds to submit a fiscal year 2001 
     budget request for courthouse construction projects that do 
     not meet design guide criteria, do not reflect the priorities 
     of the Judicial Conference of the United States, and are not 
     accompanied by a standardized courtroom utilization study.
       Section 405. The conferees agree to continue a provision 
     that provides that no funds may be used to increase the 
     amount of occupiable square feet or provide cleaning 
     services, security enhancements, or any other service usually 
     provided to any agency which does not pay the requested 
     rental rates.
       Section 406. The conferees agree to continue a provision 
     that provides that funds provided by the Information 
     Technology Fund for pilot information technology projects may 
     be repaid to the Fund.
       Section 407. The conferees agree to continue a provision 
     that permits GSA to pay claims of up to $250,000 arising from 
     construction projects and the acquisition of buildings.
       Section 408. The conferees agree to include a provision as 
     proposed by the House to provide a one-year extension to the 
     period for which voluntary separation incentive payments may 
     be offered by the Administrator of General Services to 
     qualified employees.
       Section 409. The conferees agree to include a new provision 
     proposed by the Senate designating the Federal Building and 
     United States Courthouse located at 102 North 4th Street in 
     Grand Forks, North Dakota, as the ``Ronald N. Davies Federal 
     Building and United States Courthouse''.
       Section 410. The conferees agree to include a new provision 
     proposed by the Senate regarding the Columbus, New Mexico 
     border station.
       Section 411. The conferees agree to include a new provision 
     proposed by the Senate designating the United States 
     Bankruptcy Courthouse located at 1100 Laurel Street in 
     Columbia, South Carolina, as the ``J. Bratton Davis United 
     States Bankruptcy Courthouse''.
       Section 412. The conferees agree to include a new provision 
     proposed by the Senate designating the United States 
     Courthouse Annex located at 901 19th Street in Denver, 
     Colorado, as the ``Alfred A. Arraj United States Courthouse 
     Annex''.
       Section 413. The conferees agree to include a new provision 
     proposed by the Senate designating the dormitory building 
     currently being constructed on the Core Campus of the Federal 
     Law Enforcement Training Center in Glynco, Georgia, as the 
     ``Paul Coverdell Dormitory''.

                     Merit Systems Protection Board

                         salaries and expenses

       The conferees agree to provide $29,437,000 as proposed by 
     the Senate instead of $28,857,000 as proposed by the House.

 Federal Payment to the Morris K. Udall Scholarship and Excellence in 
                National Environmental Policy Foundation

       The conferees agree to provide $2,000,000 as proposed by 
     the House instead of $1,000,000 as proposed by the Senate.

                 Environmental Dispute Resolution Fund

       The conferees agree to provide $1,250,000 as proposed by 
     the House instead of $500,000 as proposed by the Senate.

              National Archives and Records Administration

                           operating expenses

       The conferees agree to provide $209,393,000 as proposed by 
     the Senate instead of $195,119,000 as proposed by the House, 
     of which up to $5,000,000 may be used for the implementation 
     of the Nazi War Crimes Disclosure Act (5 U.S.C. 552 note; 
     Public Law 105-246), including preservation and restoration 
     of declassified records, public access and dissemination 
     activities, and necessary support services for the Nazi War 
     Criminal Records Interagency Working Group.

                        repairs and restoration

       The conferees agree to provide $95,150,000 instead of 
     $5,650,000 as proposed by the House and $4,950,000 as 
     proposed by the Senate. This level of funding provides 
     $4,950,000 for the base repairs and restoration program, 
     $88,000,000 for the major repair and restoration project at 
     the main Archives building, $1,500,000 for the construction 
     of a new Southeast Regional Archives facility, and $700,000 
     for the design of a 10,000-square-foot extension to the 
     Gerald R. Ford Museum.

        National Historical Publications and Records Commission

                             grants program

       The conferees agree to provide $6,450,000 as proposed by 
     the Senate instead of $6,000,000 as proposed by the House.

                     Office of Personnel Management

                         salaries and expenses

       The conferees agree to provide $94,095,000 as proposed by 
     the Senate instead of $93,471,000 as proposed by the House.

                             parental leave

       The conferees direct the Office of Personnel Management to 
     conduct a study to develop alternative means for providing 
     Federal employees with at least 6 weeks of paid parental 
     leave in connection with the birth or adoption of a child, 
     and submit a report containing its findings and 
     recommendations to the Committees on Appropriations by 
     September 30, 2001. The report should include projected 
     utilization rates and views as to

[[Page 26821]]

     whether this benefit can be expected to curtail the rate at 
     which Federal employees are being lost to the private sector, 
     help the Federal government recruit and retain employees, 
     reduce turnover and replacement costs, and contribute to 
     parental involvement during a child's formative years.

                 limitation on administrative expenses

       The conferees agree to provide $101,986,000 as proposed by 
     the House instead of $99,624,000 as proposed by the Senate.

                      Office of Inspector General

                         salaries and expenses

       The conferees agree to provide $1,360,000 as proposed by 
     the House instead of $1,356,000 as proposed by the Senate.

                       Office of Special Counsel

                         salaries and expenses

       The conferees agree to provide $11,147,000 instead of 
     $10,319,000 as proposed by the House and $10,733,000 as 
     proposed by the Senate. The conferees fully fund the 
     President's request.

                        United States Tax Court

                         salaries and expenses

       The conferees agree to provide $37,305,000 as proposed by 
     the House instead of $35,474,000 as proposed by the Senate.

                      Title V--General Provisions

                                This Act

       Section 501. The conferees agree to continue the provision 
     limiting the expenditure of funds to the current year unless 
     expressly provided in this Act.
       Section 502. The conferees agree to continue the provision 
     limiting the expenditure of funds for consulting services 
     under certain conditions.
       Section 503. The conferees agree to continue the provision 
     prohibiting the use of funds to engage in activities that 
     would prohibit the enforcement of section 307 of the 1930 
     Tariff Act.
       Section 504. The conferees agree to continue the provision 
     prohibiting the transfer of control over the Federal Law 
     Enforcement Training Center out of the Department of the 
     Treasury.
       Section 505. The conferees agree to continue the provision 
     concerning employment rights of Federal employees who return 
     to their civilian jobs after assignment with the Armed 
     Forces.
       Section 506. The conferees agree to continue the provision 
     that requires compliance with the Buy American Act.
       Section 507. The conferees agree to continue the provision 
     concerning prohibition of contracts that use certain goods 
     not made in America.
       Section 508. The conferees agree to continue the provision 
     prohibiting contract eligibility where fraudulent intent has 
     been proven in affixing ``Made in America'' labels.
       Section 509. The conferees agree to continue the provision 
     prohibiting the expenditure of funds for abortions under the 
     FEHBP, as proposed by the House.
       Section 510. The conferees agree to continue the provision 
     that would authorize the expenditure of funds for abortions 
     under the FEHBP if the life of the mother is in danger or the 
     pregnancy is a result of an act of rape or incest, as 
     proposed by the House.
       Section 511. The conferees agree to continue the provision 
     providing that fifty percent of unobligated balances may 
     remain available for certain purposes.
       Section 512. The conferees agree to continue the provision 
     restricting the use of funds for the White House to request 
     official background reports without the written consent of 
     the individual who is the subject of the report.
       Section 513. The conferees agree to continue the provision 
     that cost accounting standards under the Federal Procurement 
     Policy Act shall not apply to the FEHBP.
       Section 514. The conferees agree to include a new provision 
     that transfers a parcel of land from the Gerald R. Ford 
     Library and Museum to the Gerald R. Ford Foundation as 
     trustee, with reversionary interest as proposed by the House.
       Section 515. The conferees include a new provision 
     requiring OMB to develop guidelines for ensuring and 
     maximizing the quality, objectivity, utility, and integrity 
     of information disseminated by Federal agencies as proposed 
     by the House.
       Section 516. The conferees agree to include a new provision 
     permitting OPM to utilize certain funds to resolve litigation 
     and implement settlement agreements regarding the non-foreign 
     area cost-of-living allowance program as proposed by the 
     Senate.
       Section 517. The conferees include and modify a provision 
     prohibiting the use of funds for the purpose of 
     implementation, or in preparation for implementation, of the 
     Kyoto Protocol as proposed by the House.
       Section 518. The conferees agree to include a new provision 
     requiring OMB to report to Congress on the effectiveness of 
     the Paperwork Reduction Act of 1975 as proposed by the 
     Senate.

                      Title VI--General Provisions

                 Departments, Agencies and Corporations

       Section 601. The conferees agree to continue the provision 
     authorizing agencies to pay costs of travel to the United 
     States for the immediate families of Federal employees 
     assigned to foreign duty in the event of a death or a life 
     threatening illness of the employee.
       Section 602. The conferees agree to continue the provision 
     requiring agencies to administer a policy designed to ensure 
     that all of its workplaces are free from the illegal use of 
     controlled substances.
       Section 603. The conferees agree to continue the provision 
     regarding price limitations on vehicles to be purchased by 
     the Federal Government.
       Section 604. The conferees agree to continue the provision 
     allowing funds made available to agencies for travel to also 
     be used for quarters allowances and cost-of-living 
     allowances.
       Section 605. The conferees agree to continue the provision 
     prohibiting the Government, with certain specified 
     exceptions, from employing non-U.S. citizens whose posts of 
     duty would be in the continental U.S.
       Section 606. The conferees agree to continue the provision 
     ensuring that agencies will have authority to pay GSA bills 
     for space renovation and other services.
       Section 607. The conferees agree to continue the provision 
     allowing agencies to finance the costs of recycling and waste 
     prevention programs with proceeds from the sale of materials 
     recovered through such programs.
       Section 608. The conferees agree to continue the provision 
     providing that funds may be used by certain groups to pay 
     rent and other service costs in the District of Columbia.
       Section 609. The conferees agree to continue the provision 
     providing that no funds may be used to pay any person filling 
     a nominated position that has been rejected by the Senate.
       Section 610. The conferees agree to continue the provision 
     precluding the financing of groups by more than one Federal 
     agency absent prior and specific statutory approval.
       Section 611. The conferees agree to continue the provision 
     authorizing the Postal Service to employ guards and give them 
     the same special police powers as GSA guards as proposed by 
     the Senate.
       Section 612. The conferees agree to continue the provision 
     prohibiting the use of funds for enforcing regulations 
     disapproved in accordance with the applicable law of the U.S.
       Section 613. The conferees agree to continue the provision 
     limiting the pay increases of certain prevailing rate 
     employees.
       Section 614. The conferees agree to continue the provision 
     limiting the amount of funds that can be used for 
     redecoration of offices under certain circumstances.
       Section 615. The conferees agree to continue the provision 
     prohibiting the expenditure of funds for the acquisition of 
     additional law enforcement training facilities.
       Section 616. The conferees agree to continue the provision 
     to allow for interagency funding of national security and 
     emergency telecommunications initiatives.
       Section 617. The conferees agree to continue the provision 
     requiring agencies to certify that a Schedule C appointment 
     was not created solely or primarily to detail the employee to 
     the White House.
       Section 618. The conferees agree to continue the provision 
     requiring agencies to administer a policy designed to ensure 
     that all of its workplaces are free from discrimination and 
     sexual harassment.
       Section 619. The conferees agree to continue the provision 
     prohibiting the importation of any goods manufactured by 
     forced or indentured child labor.
       Section 620. The conferees agree to continue the provision 
     prohibiting the payment of the salary of any employee who 
     prohibits, threatens or prevents another employee from 
     communicating with Congress.
       Section 621. The conferees agree to continue the provision 
     prohibiting Federal training not directly related to the 
     performance of official duties.
       Section 622. The conferees agree to continue and modify the 
     provision prohibiting the expenditure of funds for 
     implementation of agreements in nondisclosure policies unless 
     certain provisions are included.
       Section 623. The conferees agree to continue the provision 
     prohibiting use of appropriated funds for publicity or 
     propaganda designed to support or defeat legislation pending 
     in Congress.
       Section 624. The conferees agree to continue and make 
     permanent the provision directing OMB to provide an 
     accounting statement and report on the cumulative costs and 
     benefits of Federal regulatory programs.
       Section 625. The conferees agree to continue the provision 
     prohibiting any Federal agency from disclosing an employee's 
     home address to any labor organization, absent employee 
     authorization or court order.
       Section 626. The conferees agree to continue and make 
     permanent the provision authorizing the Secretary of the 
     Treasury to establish scientific canine explosive detection 
     standards.
       Section 627. The conferees agree to continue the provision 
     prohibiting funds to be used to provide non-public 
     information such as mailing or telephone lists to any person 
     or organization outside the Government without the approval 
     of the Committees on Appropriations.
       Section 628. The conferees agree to continue the provision 
     prohibiting the use of

[[Page 26822]]

     funds for propaganda and publicity purposes not authorized by 
     Congress.
       Section 629. The conferees agree to continue the provision 
     directing agency employees to use official time in an honest 
     effort to perform official duties.
       Section 630. The conferees agree to continue, and include 
     technical modifications to the provision addressing 
     contraceptive coverage in health plans participating in the 
     FEHBP, making it identical to current law as enacted by 
     Section 625 of the Departments of Commerce, Justice and 
     State, the Judiciary, and Related Agencies Appropriations Act 
     of 2000 and deleting the names of two plans that no longer 
     participate in the program.
       Section 631. The conferees agree to continue the provision 
     authorizing the use of fiscal year 2001 funds to finance an 
     appropriate share of the Joint Financial Management 
     Improvement Program.
       Section 632. The conferees agree to continue and modify the 
     provision authorizing agencies to transfer funds to the 
     Policy and Operations account of GSA to finance an 
     appropriate share of the Joint Financial Management 
     Improvement Program.
       Section 633. The conferees agree to continue and modify the 
     provision authorizing agencies to provide child care in 
     Federal facilities.
       Section 634. The conferees agree to continue and modify the 
     provision authorizing breast feeding at any location in a 
     Federal building or on Federal property.
       Section 635. The conferees agree to include a new provision 
     that permits interagency funding of the National Science and 
     Technology Council as proposed by the House.
       Section 636. The conferees agree to include a new provision 
     concerning retirement provisions relating to certain members 
     of the police force of the Metropolitan Washington Airports 
     Authority as proposed by the House.
       Section 637. The conferees agree to include a new provision 
     authorizing the President's Pay Agent to use appropriate data 
     from sources other than the Bureau of Labor Statistics in 
     making new locality pay designations as proposed by the 
     House.
       Section 638. The conferees agree to continue the provision 
     requiring identification of the Federal agencies providing 
     Federal funds and the amount provided for all proposals, 
     solicitations, grant applications, forms, notifications, 
     press releases, or other publications related to the 
     distribution of funding to a State.
       Section 639. The conferees agree to include a new provision 
     requiring the mandatory removal from employment of any law 
     enforcement officer convicted of a felony as proposed by the 
     Senate.
       Section 640. The conferees agree to include a new provision 
     repealing Section 504 of the Department of Transportation and 
     Related Agencies Appropriations Act, 2001 (as enacted into 
     law by P.L. 106-346).
       Section 641. The conferees agree to include a new provision 
     making a modification to the calculation of disability pay 
     for Federal firefighters as proposed by the House.
       Section 642. The conferees agree to include a new provision 
     that includes a technical modification to the basis for using 
     inactive duty military leave as proposed by the House.
       Section 643. The conferees agree to include a new provision 
     that requires criminal background checks for employees at 
     federally provided day care facilities of the executive 
     branch as proposed by the House.
       Section 644. The conferees include a new provision 
     modifying Section 501 of the Department of Transportation and 
     Related Agencies Appropriations Act, 2001 (as enacted into 
     law by P.L. 106-346) related to Federal Internet sites.
       Section 645. The conferees agree to include a new provision 
     that makes pay rates for Administrative Appeals Judges 
     comparable to Administrative Law Judges as proposed by the 
     House.
       Section 646. The conferees agree to include a new provision 
     that requires the Inspector General of each department or 
     agency to submit to Congress a report that discloses any 
     activity relating to the collection of data about individuals 
     who access any Internet site of the department or agency.

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[[Page 26833]]



                      MISCELLANEOUS APPROPRIATIONS

       The conference agreement would enact the provisions of H.R. 
     5666 as introduced on December 15, 2000. The text of that 
     bill follows: A BILL Making miscellaneous appropriations for 
     the fiscal year ending September 30, 2001, and for other 
     purposes.
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, That the 
     following sums are appropriated, out of any money in the 
     Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 2001, and for other purposes namely:

                               DIVISION A

                               CHAPTER 1

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 101. The Agriculture, Rural Development, Food and Drug 
     Administration, and Related Agencies Appropriations Act, 
     2001, is amended--
       (1) In title III, under the heading ``Rural Utilities 
     Service, Rural Electrification and Telecommunications Loans 
     Program Account'', after ``per year'' insert ``: Provided 
     further, That not more than $100,000 shall be available for 
     guarantees of private sector loans''.
       (2) In title III, at the end of the first proviso under the 
     ``Rural Housing Assistance Grants'' account, insert ``in 
     Mississippi and Alaska''.
       (3) In section 724, by striking ``to Hispanic-serving 
     institutions'' and all that follows through ``maintained by 
     such institutions'' and inserting ``to eligible grantees 
     specified in subsection (d)(3) of that section'';
       (4) In title VIII, under the heading ``Rural Community 
     Advancement Program'', by striking ``January 1, 2001'' and 
     inserting ``January 1, 2000'';
       (5) In section 806, by inserting ``: Provided further, That 
     of the funds made available by this section, the Secretary 
     shall transfer $5,000,000 to the State of Alabama to be used 
     in conjunction with the program administered by the Alabama 
     Department of Agriculture and Industries: Provided further, 
     That of the funds made available by this section, the 
     Secretary shall transfer not more than $300,000 to the State 
     of Montana for transportation needs associated with emergency 
     haying and feeding: Provided further, That of the funds made 
     available by this section, the Secretary shall use not more 
     than $2,000,000 to carry out a program for income losses 
     sustained before April 30, 2001, by individuals who raise 
     poultry owned by other individuals as a result of Poult 
     Enteritis Mortality Syndrome control programs, as determined 
     by the Secretary'' after ``American Indian Livestock Feed 
     Program'';
       (6) In section 815(d)(3), by inserting ``affected'' after 
     ``all'';
       (7) In section 830, by striking ``Section 401'' and 
     inserting ``Title IV''.
       (8) In section 843, by striking ``were unable to market the 
     crops'' and all that follows through ``in this section:'' and 
     inserting ``suffered a loss because of the insolvency of an 
     agriculture cooperative in the State of California: Provided, 
     That the amount of a payment made to a producer under this 
     section shall not exceed 50 percent of the loss referred to 
     in this section:'';
       (9) In section 844--
       (A) in the section heading, by inserting ``, FLUE-CURED, 
     AND CIGAR BINDER TYPE 54-55'' after ``BURLEY''; and
       (B) in subsection (a)--
       (i) in paragraph (1)--

       (I) by inserting ``, without further cost to the 
     association,'' after ``settle''; and
       (II) by inserting ``, Flue-cured, or Cigar Binder Type 54-
     55'' after ``Burley'' each place it appears;

       (ii) in paragraph (2)(B), by inserting ``, Flue-cured, 
     Cigar Binder Type 54-55,'' after ``Burley''; and
       (iii) in paragraph (3), by striking subparagraph (A) and 
     inserting the following:
       ``(A) counted for the purpose of determining the Burley, 
     Flue-cured, or Cigar Binder Type 54-55 tobacco quota or 
     allotment for any year under part I of subtitle B of title 
     III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 
     et seq.); or'';
       (10) Notwithstanding any other provision of law, section 
     204(b)(10)(B) of Public Law 106-224 shall not be effective 
     until July 1, 2001; and
       (11) The effective date of this section is the date of 
     enactment of the Agriculture, Rural Development, Food and 
     Drug Administration, and Related Agencies Appropriations Act, 
     2001.
       Sec. 102. The second sentence of section 520 of the Housing 
     Act of 1949 (42 U.S.C. 1490) is amended by striking ``1990 
     decennial census'' and inserting ``1990 or 2000 decennial 
     census'', and by striking ``year 2000'' and inserting ``year 
     2010''.
       Sec. 103. The Secretary of Agriculture, in collaboration 
     with the Secretaries of Energy and Interior, shall undertake 
     a study of the feasibility of including ethanol, biodiesel, 
     and other bio-based fuels as part of the Strategic Petroleum 
     Reserve. This study shall include a review of legislative and 
     regulatory changes needed to allow this inclusion, and those 
     elements necessary to design and implement such a program, 
     including cost. The Secretary shall provide this study to the 
     House and Senate Appropriations Committees by February 15, 
     2001.
       Sec. 104. Notwithstanding section 730 of the Agriculture, 
     Rural Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 2000 (Public Law 106-78), the 
     City of Wilson, North Carolina, shall be eligible in fiscal 
     year 2001 for the community facility loan guarantee program 
     under section 306(a)(1) of the Consolidated Farm and Rural 
     Development Act.
       Sec. 105. Title VIII of the Agriculture, Rural Development, 
     Food and Drug Administration, and Related Agencies 
     Appropriations Act, 2001, is amended by inserting at the end 
     the following new section:
       ``Sec. 778. Notwithstanding section 723 of this Act or any 
     other provision of law, there are hereby appropriated 
     $26,000,000, to remain available until expended, for the 
     program authorized under section 334 of the Federal 
     Agriculture Improvement and Reform Act of 1996: Provided, 
     That the entire amount shall be available only to the extent 
     an official budget request for $26,000,000, that includes 
     designation of the entire amount of the request as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress: Provided 
     further, That the entire amount is designated by the Congress 
     as an emergency requirement pursuant to section 251(b)(2)(A) 
     of such Act.''.
       Sec. 106. In carrying out the bovine tuberculosis 
     eradication program covered by the Secretary of Agriculture's 
     emergency declaration effective as of October 11, 2000, the 
     Secretary of Agriculture shall pay 100 percent of the amounts 
     of approved claims for materials affected by or exposed to 
     bovine tuberculosis, and of approved claims growing out of 
     the destruction of animals: Provided, That in calculating the 
     net present value of the future income portion of any claim, 
     the Secretary shall use a discount rate of 7 percent: 
     Provided further, That the entire amount necessary to carry 
     out this section shall be available only to the extent that 
     an official budget request for the entire amount, that 
     includes designation of the entire amount of the request as 
     an emergency requirement as defined in the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress: Provided 
     further, That the entire amount is designated by the Congress 
     as an emergency requirement pursuant to section 251(b)(2)(A) 
     of such Act.
       Sec. 107. Section 820(b) of the Agriculture, Rural 
     Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 2001, is amended by striking 
     ``of 1996'' and inserting the following: ``of 1996, and for 
     the Farmland Protection Program established under section 388 
     of the Federal Agriculture Improvement and Reform Act of 
     1996''.
       Sec. 108. For an additional amount for the United States 
     Department of Agriculture, Office of the General Counsel, 
     $500,000: Provided, That the entire amount shall be available 
     only to the extent an official budget request for $500,000, 
     that includes designation of the entire amount of the request 
     as an emergency requirement as defined in the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress: Provided 
     further, That the entire amount is designated by the Congress 
     as an emergency requirement pursuant to section 251(b)(2)(A) 
     of such Act.
       Sec. 109. For an additional amount for Grain Inspection, 
     Packers and Stockyards Administration, Salaries and Expenses, 
     $200,000: Provided, That the entire amount shall be available 
     only to the extent an official budget request for $200,000, 
     that includes designation of the entire amount of the request 
     as an emergency requirement as defined in the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress: Provided 
     further, That the entire amount is designated by the Congress 
     as an emergency requirement pursuant to section 251(b)(2)(A) 
     of such Act.
       Sec. 110. Notwithstanding any other provision of law, the 
     Natural Resources Conservation Service may provide financial 
     and technical assistance to the Hamakua Ditch project in 
     Hawaii from funds available for the Emergency Watershed 
     Program, not to exceed $3,000,000.

                               CHAPTER 2

                         DEPARTMENT OF JUSTICE

                         Federal Prison System


                         Salaries and Expenses

       For an additional amount for ``Salaries and Expenses'', 
     $500,000, to remain available until expended: Provided, That 
     these funds are to be expended by the National Institute of 
     Corrections (NIC) for a comprehensive assessment of medical 
     care and incidents of inmate mortality in the Wisconsin State 
     Prison System.

                       Office of Justice Programs


                           Justice Assistance

       For an additional amount for ``Justice Assistance'', 
     $300,000, to remain available until expended: Provided, That 
     these funds are to be expended to expand the collection of 
     data on prisoner deaths while in law enforcement custody.


                  Community Oriented Policing Services

       For an additional amount for ``Community Oriented Policing 
     Services'', $3,080,000, to remain available until expended, 
     of which $1,880,000 shall be for a grant to the Pasadena, 
     California, Police Department for equipment; of which 
     $200,000 shall be for a grant to the City of Signal Hill, 
     California, for equipment and technology for an emergency 
     operations center; and of which $1,000,000 shall be for a 
     grant to the State of Alabama Department of Forensic Sciences 
     for equipment.


                       Juvenile Justice Programs

       For an additional amount for ``Juvenile Justice Programs'', 
     $1,000,000, to remain available until expended, for a grant 
     to Mobile County, Alabama, for a juvenile court network 
     program.

[[Page 26834]]



                           General Provisions

       Sec. 201. Chapter 2 of title II of division B of Public Law 
     106-246 (114 Stat. 542) is amended in the matter immediately 
     under the first heading--
       (1) by inserting, ``(or the state, in the case of New 
     Mexico)'' before ``only''; and
       (2) by inserting, ``detention costs,'' after ``court 
     costs,''.
       Sec. 202. For an additional amount under the heading 
     ``United States Attorneys, Salaries and Expenses'' in the 
     Departments of Commerce, Justice, and State, the Judiciary, 
     and Related Agencies Appropriations Act, 2001, $10,000,000 
     for the State of Texas and $2,000,000 for the State of 
     Arizona, to reimburse county and municipal governments only 
     for Federal costs associated with the handling and processing 
     of illegal immigration and drug and alien smuggling cases, 
     such reimbursements being limited to court costs, detention 
     costs, courtroom technology, the building of holding spaces, 
     administrative staff, and indigent defense costs.
       Sec. 203. In addition to amounts appropriated under the 
     heading ``State and Local Law Enforcement Assistance, Office 
     of Justice Programs'' in the Departments of Commerce, 
     Justice, and State, the Judiciary, and Related Agencies 
     Appropriations Act, 2001, $9,000,000 is for an award to the 
     Alliance of Boys & Girls of South Carolina for the 
     establishment of the Strom Thurmond Boys & Girls Club 
     National Training Center.
       Sec. 204. In addition to any amounts made available for 
     ``State and Local Law Enforcement Assistance'' within the 
     Department of Justice, $500,000 shall be made available only 
     for the New Hampshire Department of Safety to investigate and 
     support the prosecution of violations of federal trucking 
     laws.
       Sec. 205. In addition to other amounts made available for 
     the COPS technology program of the Department of Justice, 
     $4,000,000 shall be available to the State of South Dakota to 
     establish a regional radio system to facilitate 
     communications between Federal, State, and local law 
     enforcement agencies, firefighting agencies, and other 
     emergency services agencies.

                         DEPARTMENT OF COMMERCE

                   Economic and Statistical Analysis


                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $200,000, to remain available until expended, for the 
     establishment of satellite accounts for the travel and 
     tourism industry.

            National Oceanic and Atmospheric Administration


                  operations, research, and facilities

       For an additional amount for ``Operations, Research, and 
     Facilities'', $750,000, to remain available until expended, 
     for a study by the National Academy of Sciences pursuant to 
     H.R. 2090, as passed by the House of Representatives on 
     September 12, 2000.

                           General Provisions

       Sec. 206. The Departments of Commerce, Justice, and State, 
     the Judiciary, and Related Agencies Appropriations Act, 2001, 
     as enacted by section 1(a)(2) of the Act entitled ``An Act 
     making appropriations for the government of the District of 
     Columbia and other activities chargeable in whole or in part 
     against revenues of said District for the fiscal year ending 
     September 30, 2001, and for other purposes'' is amended by 
     inserting before the period at the end of the paragraph under 
     the heading ``National Oceanic and Atmospheric 
     Administration, Operations, Research, and Facilities'' the 
     following new proviso: ``: Provided further, That, of the 
     amounts made available for the National Marine Fisheries 
     Service under this heading, $10,000,000 shall be available 
     only for research regarding litigation concerning the Alaska 
     Steller sea lion and Bering Sea/Aleutian Islands and Gulf of 
     Alaska groundfish fisheries, of which $6,000,000 shall be 
     available only for the Office of Oceanic and Atmospheric 
     Research to study the impact of ocean climate shifts on the 
     North Pacific and Bering Sea fish and marine mammal species 
     composition, of which $2,000,000 shall be available only for 
     the National Ocean Service to study predator/prey 
     relationships as they relate to the decline of the western 
     population of Steller sea lions, and of which $2,000,000 
     shall be available only for the North Pacific Fishery 
     Management Council for an independent analysis of Steller sea 
     lion science and other work related to such litigation''.
       Sec. 207. (a) In addition to amounts appropriated or 
     otherwise made available under the heading ``Operations, 
     Research, and Facilities, National Oceanic and Atmospheric 
     Administration'' in the Departments of Commerce, Justice, and 
     State, the Judiciary, and Related Agencies Appropriations 
     Act, 2001, $7,500,000 is appropriated for disaster assistance 
     for communities affected by the 2000 western Alaska salmon 
     disaster for which the Secretary of Commerce declared a 
     fishery failure under section 312(a) of the Magnuson Stevens 
     Fisheries Conservation and Management Act.
       (b) Funds appropriated by this section shall be made 
     available as direct lump sum payments no later than 30 days 
     after the date of enactment of this Act, as follows: 
     $3,500,000 to the Tanana Chiefs Conference, $3,500,000 to the 
     Association of Village Council Presidents, and $500,000 to 
     Kawerak.
       (c) Such funds shall be used to provide personal assistance 
     with priority given to (1) food, (2) energy needs, (3) 
     housing assistance, (4) transportation fuel including for 
     subsistence activities, and (5) other urgent community needs.
       (d) Not more than 5 percent of such funds may be used for 
     administrative expenses.
       (e) The President of the Tanana Chiefs Conference, the 
     President of the Association of Village Council Presidents, 
     and the President of Kawerak shall disburse all funds no 
     later than May 1, 2000 and shall submit a report to the 
     Secretary of Commerce detailing the expenditure of funds, 
     including the number of persons and households served and the 
     amount of administrative costs, by the end of the fiscal 
     year.
       Sec. 208. In addition to amounts appropriated or otherwise 
     made available by this or any other Act, $3,000,000 is 
     appropriated to enable the Secretary of Commerce to provide 
     economic assistance to fishermen and fishing communities 
     affected by federal closures and fishing restrictions in the 
     Hawaii long line fishery, to remain available until expended.
       Sec. 209. Implementation of Steller Sea Lion Protective 
     Measures.--
       (a) Findings.--The Congress finds that--
       (1) the western population of Steller sea lions has 
     substantially declined over the last twenty-five years.
       (2) scientists should closely research and analyze all 
     possible factors relating to such decline, including the 
     possible interactions between commercial fishing and Steller 
     sea lions and the localized depletion hypothesis;
       (3) the authority to manage commercial fishing in federal 
     waters lies with the regional councils and the Secretary of 
     Commerce (hereafter in this section ``Secretary'') pursuant 
     to the Magnuson-Stevens Fishery Conservation and Management 
     Act (hereafter in this section ``Magnuson-Stevens Act''); and
       (4) the Secretary of Commerce shall comply with the 
     Magnuson-Stevens Act when using fishery management plans and 
     regulations to implement the decisions made pursuant to 
     findings under the Endangered Species Act, and shall utilize 
     the processes and procedures of the regional fishery 
     management councils as required by the Magnuson-Stevens Act.
       (b) Independent Scientific Review.--The North Pacific 
     Fishery Management Council (hereafter in this section ``North 
     Pacific Council) shall utilize the expertise of the National 
     Academy of Sciences to conduct an independent scientific 
     review of the November 30, 2000 Biological Opinion for the 
     Bering Sea/Aleutian Islands and Gulf of Alaska groundfish 
     fisheries (hereafter in this section ``Biological Opinion''), 
     its underlying hypothesis, and the Reasonable and Prudent 
     Alternatives (hereafter in this section ``Alternatives'') 
     contained therein. The Secretary shall cooperate with the 
     independent scientific review, and the National Academy of 
     Sciences is requested to give its highest priority to this 
     review.
       (c) Preparation of Fishery Management Plans and Regulations 
     To Implement Protective Measures in the November 30, 2000 
     Biological Opinion.--
       (1) The Secretary of Commerce shall submit to the North 
     Pacific Council proposed conservation and management measures 
     to implement the Alternatives contained in the November 30, 
     2000 Biological Opinion for the Bering Sea/Aleutian Islands 
     and Gulf of Alaska groundfish fisheries. The North Pacific 
     Council shall prepare and transmit to the Secretary a fishery 
     management plan amendment or amendments to implement such 
     Alternatives that are consistent with the Magnuson-Stevens 
     Act (including requirements in such Act relating to best 
     available science, bycatch reduction, impacting on fishing 
     communities, the safety of life at sea, and public comment 
     and hearings.)
       (2) The Bering Sea/Aleutian Islands and Gulf of Alaska 
     groundfish fisheries shall be managed in a manner consistent 
     with the Alternatives contained in the Biological Opinion, 
     except as otherwise provided in this section. The 
     Alternatives shall become fully effective no later than 
     January 1, 2002, as revised if necessary and appropriate 
     based on the independent scientific review referred to in 
     subsection (b) and other new information, and shall be phased 
     in in 2001 as described in paragraph (3).
       (3) The 2001 Bering Sea/Aleutian Islands and Gulf of Alaska 
     groundfish fisheries shall be managed in accordance with the 
     fishery management plan and federal regulations in effect for 
     such fisheries prior to July 15, 2000, including--
       (A) conservative total allowable catch levels;
       (B) no entry zones within three miles of rookeries;
       (C) restricted harvest levels near rookeries and haul-outs;
       (D) federally-trained observers;
       (E) spatial and temporal harvest restrictions;
       (F) federally-mandated bycatch reduction programs; and
       (G) additional conservation benefits provided through 
     cooperative fishing arrangements,

     and said regulations are hereby restored to full force and 
     effect.
       (4) The Secretary shall amend these regulations by January 
     20, 2001, after consultation with the North Pacific Council 
     and in a manner consistent with all law, including the 
     Magnuson-Stevens Act, and consistent with the Alternatives to 
     the maximum extent practicable, subject to the other 
     provisions of this subsection.
       (5) The harvest reduction requirement (``Global Control 
     Rule'') shall take effect immediately in any 2001 groundfish 
     fishery in which it applies, but shall not cause a reduction 
     in the total allowable catch of any fishery of more than ten 
     percent.
       (6) In enforcing regulations for the 2001 fisheries, the 
     Secretary, upon recommendation of the North Pacific Council, 
     may open critical habitat where needed, adjust seasonal catch 
     levels, and take other measures as needed to ensure

[[Page 26835]]

     that harvest levels are sufficient to provide income from 
     these fisheries for small boats and Alaskan on-shore 
     processors that is no less than in 1999.
       (7) The regulations that are promulgated pursuant to 
     paragraph (4) shall not be modified in any way other than 
     upon recommendation of the North Pacific Council, before 
     March 15, 2001.
       (d) Sea Lion Protection Measures.--$20,000,000 is hereby 
     appropriated to the Secretary of Commerce to remain available 
     until expended to develop and implement a coordinated, 
     comprehensive research and recovery program for the Steller 
     sea lion, which shall be designed to study--
       (1) available prey species;
       (2) predator/prey relationships;
       (3) predation by other marine mammals;
       (4) interactions between fisheries and Steller sea lions, 
     including the localized depletion theory;
       (5) regime shift, climate change, and other impacts 
     associated with changing environmental conditions in the 
     North Pacific and Bering Sea;
       (6) disease;
       (7) juvenile and pup survival rates;
       (8) population counts;
       (9) nutritional stress;
       (10) foreign commercial harvest of sealions outside the 
     exclusive economic zone;
       (11) the residual impacts of former government-authorized 
     Steller sea lion eradication bounty programs; and
       (12) the residual impacts of intentional lethal takes of 
     Steller sea lions. Within available funds the Secretary shall 
     implement on a pilot basis innovative non-lethal measures to 
     protect Steller sea lions from marine mammal predators 
     including killer whales,
       (e) Economic Disaster Relief.--$30,000,000 is hereby 
     appropriated to the Secretary of Commerce to make available 
     as a direct payment to the Southwest Alaska Municipal 
     Conference to distribute to fishing communities, businesses, 
     community development quota groups, individuals, and other 
     entities to mitigate the economic losses caused by Steller 
     sea lion protection measures heretofore incurred; provided 
     that the President of such organization shall provide a 
     written report to the Secretary and the House and Senate 
     Appropriations Committee within six months of receipt of 
     these funds.

                 DEPARTMENT OF STATE AND RELATED AGENCY

                           General Provisions

       Sec. 210. In addition to any amounts made available for 
     ``Educational and Cultural Exchange Programs within the 
     Department of State'', $500,000 shall be made available only 
     for the Irish Institute.
       Sec. 211. In addition to amounts appropriated under the 
     heading ``International Broadcasting Operations, Broadcasting 
     Board of Governors'' in the Departments of Commerce, Justice, 
     and State, the Judiciary, and Related Agencies Appropriations 
     Act, 2001, $10,000,000 to remain available until expended, 
     for increased broadcasting to Russia and surrounding areas, 
     and to China, by Radio Free Europe/Radio Liberty, Radio Free 
     Asia, and the Voice of America: Provided, That any amount of 
     such funds may be transferred to the ``Broadcasting Capital 
     Improvements'' account to carry out such purposes.

                            RELATED AGENCIES

                 Commission on Online Child Protection

       For necessary expenses of the Commission on Online Child 
     Protection, $750,000, to remain available until expended.

                     Small Business Administration


                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $1,000,000 shall be available for a grant to the Electronic 
     Commerce Resource Center in Scranton, Pennsylvania, to 
     establish an electronic commerce technology distribution 
     center.

                           General Provision

       Sec. 212. For an additional amount for ``Small Business 
     Administration, Salaries and Expenses'' $1,000,000 shall be 
     made available only for a grant to the National Museum of 
     Jazz in New York, New York.

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 213. (a) The provisions of H.R. 5548 (as enacted into 
     law by H.R. 4942 of the 106th Congress) are amended as 
     follows:
       (1) In title I, under the heading ``Salaries and Expenses, 
     United States Marshals Service'', by striking ``3,947'' and 
     inserting ``4,034''.
       (2) In title I, by redesignating sections 114 through 119 
     as sections 113 through 118, respectively.
       (3) In title II, under the heading ``National Oceanic and 
     Atmospheric Administration--Operations, Research, and 
     Facilities'', by striking ``$31,439,000'' and inserting 
     ``$32,054,000''.
       (4) In title II, under the heading ``National Oceanic and 
     Atmospheric Administration--Coastal and Ocean Activities''--
       (A) by striking ``non-contiguous States except Hawaii'' and 
     inserting ``Alaska'';
       (B) by striking ``Inc,'' and inserting ``Inc.,'';
       (C) by striking ``scrup;'' and inserting ``scrub;''; and
       (D) by striking ``watershed for lower Rouge River 
     restoration:'' and inserting ``watershed:''.
       (5) In title IV, by striking section 406 and by 
     redesignating sections 407 and 408 as sections 406 and 407, 
     respectively.
       (6) In title VI, by striking sections 635 and 636.
       (7) In title IX, in the first proviso of section 901, by 
     striking ``, territory or an Indian Tribe'' and inserting 
     ``or territory''.
       (b) The amendments made by this section shall take effect 
     as if included in H.R. 4942 of the 106th Congress on the date 
     of its enactment.

                               CHAPTER 3

                         DEPARTMENT OF DEFENSE

                    General Provisions--This Chapter

       Sec. 301. In the event that award of the full funding 
     contract for low-rate initial production of the F-22 aircraft 
     is delayed beyond December 31, 2000 because of inability to 
     complete the requirements specified in section 8124 of the 
     Department of Defense Appropriations Act, 2001 (Public Law 
     106-259), the Secretary of the Air Force may obligate up to 
     $353,000,000 of the funds appropriated in Title III of Public 
     Law 106-259 to continue F-22 Lot 1 (10 aircraft) advance 
     procurement to protect the supplier base and preserve program 
     costs and schedule.
       Sec. 302. (a) Consistent with Executive Order Number 1733, 
     dated March 3, 1913, and notwithstanding section 303 of the 
     Alaska National Interest Lands Conservation Act, Public Law 
     96-487, or any other law, the Department of the Air Force 
     shall have primary jurisdiction, custody, and control over 
     Shemya Island and its appurtenant waters (including submerged 
     lands). In exercising such primary jurisdiction, custody, and 
     control, the Secretary of the Air Force may utilize and apply 
     such authorities as are generally applicable to a military 
     installation, base, camp, post, or station. Shemya Island and 
     its appurtenant waters (including submerged lands) shall 
     continue to be included within the Alaska Maritime National 
     Wildlife Refuge and the National Wildlife Refuge System and 
     the Secretary of the Interior shall have jurisdiction 
     secondary to that of the Department of the Air Force. Nothing 
     in this section shall prohibit the transfer of jurisdiction, 
     custody, and control over Shemya Island by the Department of 
     the Air Force to another military department. In the event 
     the military department exercising such primary jurisdiction, 
     custody, and control no longer has a need to exercise such 
     primary jurisdiction, custody, and control of Shemya Island 
     and its appurtenant waters (including submerged lands), such 
     jurisdiction, custody, and control shall terminate and the 
     Secretary of the Interior shall then exercise sole 
     jurisdiction, custody, and control over Shemya Island and its 
     appurtenant waters (including submerged lands) as part of the 
     Alaska Maritime National Wildlife Refuge.
       (b) Any environmental contamination of Shemya Island caused 
     by a military department shall be the responsibility of that 
     military department and not the responsibility of the 
     Department of the Interior. Any money rentals received by a 
     military department from outgrants on Shemya Island will be 
     applied to the environmental restoration of the island in 
     accordance with 10 U.S.C. 2667.
       (c) This section shall not be construed as altering any 
     existing property rights of the State of Alaska or any 
     private person.
       (d) The military department exercising primary 
     jurisdiction, custody, and control over Shemya Island shall, 
     consistent with the accomplishment of the military mission 
     and subject to section 21 of the Internal Security Act of 
     1950, Public Law 81-831 (50 U.S.C. 797) (also known as the 
     Subversive Activities Control Act of 1950)--
       (1) work with the United States Fish and Wildlife Service 
     to protect and conserve the wildlife and habitat on the 
     island; and
       (2) grant access to Shemya Island and its appurtenant 
     waters to the United States Fish and Wildlife Service for the 
     purpose of management of the Alaska Maritime National 
     Wildlife Refuge.
       Sec. 303. Within the funds appropriated for the Patriot 
     PAC-3 program under Title III of the Department of Defense 
     Appropriations Act, 2001 (Public Law 106-259), the Ballistic 
     Missile Defense Organization shall procure no less than 40 
     PAC-3 missiles.
       Sec. 304. Section 8133 of Public Law 106-259 (114 Stat. 
     703) is amended by striking ``$300,000,000'' in the first 
     proviso and inserting ``$550,000,000''.


                          (transfer of funds)

       Sec. 305. Of the total amount appropriated by title II of 
     the Department of Defense Appropriations Act, 2001 (Public 
     Law 106-259) for operation and maintenance for the armed 
     force or armed forces under the jurisdiction of the Secretary 
     of a military department, the Secretary of that military 
     department may transfer up to $2,000,000 to the central fund 
     established by the Secretary under section 2493(d) of title 
     10, United States Code, for funding Fisher Houses and Fisher 
     Suites. Amounts so transferred shall be merged with other 
     amounts in the central fund to which transferred and shall be 
     available without fiscal year limitation for the purposes for 
     which amounts in that fund are available.
       Sec. 306. Funding for Certain Costs of Vessel Transfers. 
     There is hereby appropriated into the Defense Vessels 
     Transfer Program Account such sums as may be necessary for 
     the costs (as defined in section 502 of the Congressional 
     Budget Act of 1974 (2 U.S.C. 661a)) of the lease-sale 
     transfers authorized by the National Defense Authorization 
     Act, 2001. Funds in that account are available only for the 
     purpose of covering those costs.
       Sec. 307. Of the total amount appropriated by title IV of 
     the Department of Defense Appropriations Act, 2001 (Public 
     Law 106-259) under the heading ``Research, Development, Test 
     and Evaluation, Defense-Wide'', not less than $5,000,000 
     shall be made available only for support of a Gulf War 
     illness research program at the University of Texas 
     Southwestern Medical Center.

[[Page 26836]]




                     (including transfer of funds)

       Sec. 308. In addition to amounts appropriated for the 
     Department of Defense in the Department of Defense 
     Appropriations Act, 2001 (Public Law 106-259), $150,000,000 
     is hereby appropriated for ``Operation and Maintenance, 
     Navy'' and shall remain available until expended, only for 
     costs associated with the repair of the U.S.S. COLE: 
     Provided, That the Secretary of Defense may transfer these 
     funds to appropriations accounts for procurement: Provided 
     further, That the funds transferred shall be merged with and 
     shall be available for the same purposes and for the same 
     time period, as the appropriation to which transferred: 
     Provided further, That the transfer authority provided in 
     this section is in addition to any other transfer authority 
     available to the Department of Defense: Provided further, 
     That the welfare of the crew, and of the families of the 
     crew, of the U.S.S. COLE shall be considered in the Navy's 
     selection of the process and location for the repair of the 
     U.S.S. COLE: Provided further, That the entire amount made 
     available in this section is designated by the Congress as an 
     emergency requirement pursuant to section 251(b)(2)(A) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.
       Sec. 309. Notwithstanding any other provision of law, the 
     Administrator of the General Services Administration may 
     utilize funds available to the National Science and 
     Technology Council (authorized by Executive Order No. 12881), 
     or any successor entity to the council, under section 635 of 
     the Treasury and General Government Appropriations Act, 2001 
     for payment of any expenses of, and shall ensure that 
     administrative services, facilities, staff and other support 
     are provided for, the Commission on the Future of the United 
     States Aerospace Industry pursuant to section 1092(e)(1) of 
     the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001 (as enacted by section 1 of the Act to 
     authorize appropriations for fiscal year 2001 for military 
     activities of the Department of Defense, for military 
     construction, and for defense activities of the Department of 
     Energy, to prescribe personnel strengths for such fiscal year 
     for the Armed Forces, and for other purposes).
       Sec. 310. In addition to funds provided elsewhere in this 
     Act, or in the Department of Defense Appropriations Act, 2001 
     (Public Law 106-259), $2,000,000 is hereby appropriated to 
     ``Operation and Maintenance, Marine Corps'', only for 
     planning and National Environmental Protection Act 
     documentation for the proposed airfield and heliport at the 
     Marine Corps Air Ground Task Force Training Command.


                          (TRANSFER OF FUNDS)

       Sec. 311. Of the funds made available in the Department of 
     Defense Appropriations Act, 2001 (Public Law 106-259), the 
     Secretary of the Air Force shall transfer $5,000,000 of the 
     funds provided for ``Operation and Maintenance, Air Force'' 
     to the Secretary of the Interior for maintenance, protection, 
     or preservation of the land and interests in land described 
     in section 3 of the Minuteman Missile National Historic Site 
     Establishment Act of 1999 (Public Law 106-115; 113 Stat. 
     1540): Provided, That the transfer authority provided in this 
     section is in addition to any other transfer authority 
     available to the Department of Defense for fiscal year 2001.
       Sec. 312. (a) The Secretary of the Air Force is authorized 
     to convey to the Roosevelt General Hospital, Portales, New 
     Mexico, without consideration, and without regard to title II 
     of the Federal Property and Administrative Services Act of 
     1949, all right, title, and interest of the United States in 
     any personal property of the Air Force that the Secretary 
     determines--
       (1) is appropriate for use by the Roosevelt General 
     Hospital in the operation of that hospital; and
       (2) is excess to the needs of the Air Force.
       (b) The Secretary may require any additional terms and 
     conditions in connection with any conveyance under subsection 
     (a) that the Secretary considers appropriate to protect the 
     interests of the United States.


                     (INCLUDING TRANSFER OF FUNDS)

       Sec. 313. In addition to amounts appropriated for the 
     Department of Defense in the Department of Defense 
     Appropriations Act, 2001 (Public Law 106-259), $100,000,000 
     is hereby appropriated for ``Overseas Contingency Operations 
     Transfer Fund'' and shall remain available until expended: 
     Provided, That the Secretary of Defense may transfer the 
     funds provided herein only to appropriations for military 
     personnel; operation and maintenance; procurement; research, 
     development, test and evaluation; and working capital funds: 
     Provided further, That the funds transferred shall be merged 
     with and shall be available for the same purposes and for the 
     same time period, as the appropriation to which transferred: 
     Provided further, That upon a determination that all or part 
     of the funds transferred from this appropriation are not 
     necessary for the purposes provided herein, such amounts may 
     be transferred back to this appropriation: Provided further, 
     That the transfer authority provided in this section is in 
     addition to any other transfer authority contained elsewhere 
     in this Act: Provided further, That funds appropriated by 
     this section, or made available by the transfer of funds in 
     this section, for intelligence activities are deemed to be 
     specifically authorized by the Congress for the purposes of 
     section 504 of the National Security Act of 1947 (50 U.S.C. 
     414) during fiscal year 2001: Provided further, That the 
     entire amount made available in this section is designated by 
     the Congress as an emergency requirement pursuant to section 
     251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.
       Sec. 314. Of the total amount appropriated by title IV of 
     the Department of Defense Appropriations Act, 2001 (Public 
     Law 106-259) under the heading ``Research, Development, Test 
     and Evaluation, Navy'', up to $3,000,000 shall be made 
     available to the Marine Corps to pursue research in 
     Nanotechnology for Consequence Management.
       Sec. 315. Of the total amount appropriated by title IV of 
     the Department of Defense Appropriations Act, 2001 (Public 
     Law 106-259) under the heading ``Research, Development, Test 
     and Evaluation, Army'', not less than $1,500,000 shall be 
     made available only for installation of the Medical Area 
     Network for Virtual Technologies at Fort Detrick and Walter 
     Reed Army Hospital, and not less than $1,000,000 shall be 
     made available only to conduct a pilot study to determine the 
     feasibility of establishing a Department of Defense 
     Information Analysis Center for telemedicine.
       Sec. 316. The Secretary of the Navy shall acquire 50 acres 
     of real property located on Reed Island, along the south 
     shore of the St. John's River across from Blount Island 
     Command, Jacksonville, Florida. The Secretary of the Navy 
     shall pay not more than the fair market value of the 
     property, to be determined pursuant to an appraisal 
     acceptable to the Secretary of the Navy; but in no case shall 
     the price exceed $4,200,000: Provided, That the exact acreage 
     and legal description of the real property to be acquired 
     pursuant to this section shall be determined by a survey 
     satisfactory to the Secretary of the Navy: Provided further, 
     That the Secretary of the Navy may require such additional 
     terms and conditions in connection with the land acquisition 
     pursuant to this section as the Secretary considers 
     appropriate to protect the interests of the United States.
       Sec. 317. Of the total amount appropriated by title IV of 
     the Department of Defense Appropriations Act, 2001 (Public 
     Law 106-259) under the heading ``Research, Development, Test, 
     and Evaluation, Navy'' the Secretary of the Navy may 
     establish Marine Fire Training Centers at the Marine and 
     Environmental Research and Training Station and Barbers Point 
     by grants or contracts.
       Sec. 318. Notwithstanding any other provision of law, and 
     notwithstanding the provisions in section 7306 of title 10, 
     United States Code, of the funds provided in the Department 
     of Defense Appropriations Act, 2001 (Public Law 106-259) for 
     ``Operation and Maintenance, Navy'', $750,000 shall be 
     available only for repair of ex-Turner Joy.
       Sec. 319. In addition to amounts appropriated or otherwise 
     made available for the Department of Defense elsewhere in 
     this Act or in the Department of Defense Appropriations Act, 
     2001 (Public Law 106-259), $2,000,000 is hereby appropriated 
     under the heading ``Operation and Maintenance, Defense-
     Wide'', to remain available for obligation until September 
     30, 2001, only for the Defense Imagery and Mapping Agency 
     Program.
       Sec. 320. None of the funds available in the Department of 
     Defense Appropriations Act, 2001 (Public Law 106-259) shall 
     be used to consolidate or incorporate Air Force radar 
     operations maintenance and support programs or contracts into 
     an Air Force SENSOR or a similar acquisition program.
       Sec. 321. In addition to amounts appropriated elsewhere in 
     this Act, or in the Department of Defense Appropriations Act, 
     2001 (Public Law 106-259), $1,000,000 is hereby appropriated 
     to ``Research, Development, Test and Evaluation, Air Force'', 
     only to develop rapid diagnostic and fingerprinting 
     techniques along with molecular monitoring systems for the 
     detection of nosocomial infections.
       Sec. 322. Of the total amount appropriated by title IV of 
     the Department of Defense Appropriations Act, 2001 (Public 
     Law 106-259) under the heading ``Research, Development, Test 
     and Evaluation, Navy'', $1,500,000 shall be made available by 
     grant or contract only to the California Central Coast 
     Research Partnership (C3RP).
       Sec. 323. Fort Irwin National Training Center Expansion. 
     (a) Findings.--Congress makes the following findings:
       (1) The National Training Center at Fort Irwin, California, 
     is the only instrumented training area in the world suitable 
     for live fire training of heavy brigade-sized military forces 
     and thus provides the Army with essential training 
     opportunities necessary to maintain and improve military 
     readiness and promote national security.
       (2) The National Training Center must be expanded to meet 
     the critical need of the Army for additional training lands 
     suitable for the maneuver of large numbers of military 
     personnel and equipment, which is necessitated by advances in 
     equipment, by doctrinal changes, and by Force XXI doctrinal 
     experimentation requirements.
       (3) The lands being considered for expansion of the 
     National Training Center are home to the desert tortoise and 
     other species that are protected under the Endangered Species 
     Act of 1973, and the Secretary of Defense and the Secretary 
     of the Interior, in developing a plan for expansion of the 
     National Training Center, must provide for such expansion in 
     a manner that complies with the Endangered Species Act of 
     1973, the National Environmental Policy Act of 1969, and 
     other applicable laws.

[[Page 26837]]

       (4) In order for the expansion of the National Training 
     Center to be implemented on an expedited basis, the 
     Secretaries should proceed without delay to define with 
     specificity the key elements of the expansion plan, including 
     obtaining early input regarding national security 
     requirements, Endangered Species Act of 1973 compliance and 
     mitigation, and National Environmental Policy Act of 1969 
     compliance.
       (b) Purpose.--The purpose of this section is to expedite 
     the expansion of the National Training Center at Fort Irwin, 
     California, in a manner that is fully compliant with 
     environmental laws.
       (c) Preparation of Proposed Expansion Plan.--
       (1) Preparation required.--The Secretary of the Army and 
     the Secretary of the Interior (in this section referred to as 
     the ``Secretaries'') shall jointly prepare a proposed plan 
     for the expansion of the National Training Center at Fort 
     Irwin, California.
       (2) Submission and availability.--The plan required by 
     paragraph (1) (in this section referred to as the ``proposed 
     expansion plan'') shall be completed not later than 120 days 
     after the date of the enactment of this Act. When completed, 
     the Secretaries shall make the proposed expansion plan 
     available to the public and shall publish in the Federal 
     Register a ``notice of availability'' concerning the proposed 
     expansion plan.
       (d) Key Elements of Proposed Expansion Plan.--
       (1) Joint report.--Not later than 45 days after the date of 
     the enactment of this Act, the Secretaries shall submit to 
     Congress a joint report that identifies the key elements of 
     the proposed expansion plan.
       (2) Lands withdrawal and reservation.--The proposed 
     expansion plan shall include the withdrawal and reservation 
     of an appropriate amount of public lands for--
       (A) the conduct of combined arms military training at the 
     National Training Center;
       (B) the development and testing of military equipment at 
     the National Training Center;
       (C) other defense-related purposes; and
       (D) conservation and research purposes.
       (3) Conservation measures.--The proposed expansion plan 
     shall also include a general description of conservation 
     measures, anticipated to cost approximately $75,000,000, that 
     may be necessary and appropriate to protect and promote the 
     conservation of the desert tortoise and other endangered or 
     threatened species and their critical habitats in designated 
     wildlife management areas in the West Mojave Desert. The 
     conservation measures may include--
       (A) the establishment of one or more research natural 
     areas, which may include lands both within and outside the 
     National Training Center;
       (B) the acquisition of private and State lands within the 
     wildlife management areas in the West Mojave Desert;
       (C) the construction of barriers, fences, and other 
     structures that would promote the conservation of endangered 
     or threatened species and their critical habitats;
       (D) the funding of research studies; and
       (E) other conservation measures.
       (d) Preliminary Review of Expansion Plan.--
       (1) Review required.--Not later than 90 days after the date 
     of the enactment of this Act, the Director of the United 
     States Fish and Wildlife Service shall submit to the 
     Secretaries a preliminary review of the proposed expansion 
     plan (as developed as of that date). In the preliminary 
     review, the Director shall identify, with as much specificity 
     as possible, an approach for implementing the proposed 
     expansion plan consistent with the Endangered Species Act of 
     1973 (16 U.S.C. 1531 et seq.).
       (2) Relation to formal review.--The preliminary review 
     under paragraph (1) shall not constitute a formal 
     consultation under section 7 of the Endangered Species Act of 
     1973 (16 U.S.C. 1536), but shall be used to assist the 
     Secretaries in more precisely defining the nature and scope 
     of an expansion plan for the National Training Center that is 
     likely to satisfy requirements of the Endangered Species Act 
     of 1973 and to expedite the formal consultation process under 
     section 7 of such Act.
       (3) Consideration of preliminary review.--In preparing the 
     proposed expansion plan, the Secretaries shall take into 
     account the content of the preliminary review by the Director 
     of the United States Fish and Wildlife Service under 
     paragraph (1).
       (e) Draft Legislation.--The Secretaries shall submit to 
     Congress with the proposed expansion plan a draft of proposed 
     legislation providing for the withdrawal and reservation of 
     public lands for the expansion of the National Training 
     Center. It is the sense of the Congress that the proposed 
     legislation should contain a provision that, if enacted, 
     would prohibit ground-disturbing military use of the land to 
     be withdrawn and reserved by the legislation until the 
     Secretaries have certified that there has been full 
     compliance with the appropriate provisions of the 
     legislation, the Endangered Species Act of 1973, the National 
     Environmental Policy Act of 1969, and other applicable laws.
       (f) Consultation Under Endangered Species Act of 1973.--The 
     Secretaries shall initiate the formal consultation required 
     under section 7 of the Endangered Species Act of 1973 (16 
     U.S.C. 1536) with respect to expansion of the National 
     Training Center as soon as practicable and shall complete 
     such consultation not later than two years after the date of 
     the enactment of this Act.
       (g) Environmental Review.--Not later than six months 
     following completion of the formal consultation required 
     under section 7 of the Endangered Species Act of 1973 with 
     respect to expansion of the National Training Center, the 
     Secretaries shall complete any analysis required under the 
     National Environmental Policy Act of 1969 with respect to the 
     proposed expansion of the National Training Center. The 
     analysis shall be coordinated, to the extent practicable and 
     appropriate, with the review of the West Mojave Coordinated 
     Management Plan that, as of the date of the enactment of this 
     Act, is being undertaken by the Bureau of Land Management.
       (h) Funding.--
       (1) Implementation of conservation measures.--There are 
     authorized to be appropriated $75,000,000 to the Secretary of 
     the Army for the implementation of conservation measures 
     necessary for the final expansion plan for the National 
     Training Center to comply with the Endangered Species Act of 
     1973.
       (2) Implementation of section.--The amounts of $2,500,000 
     for ``Operation and Maintenance, Army'' and $2,500,000 for 
     ``Management of Lands and Resources, Bureau of Land 
     Management'' are hereby appropriated to the Secretary of the 
     Army and the Secretary of the Interior, respectively, only to 
     undertake and complete on an expedited basis the activities 
     specified in this section.

                               CHAPTER 4

                   DISTRICT OF COLUMBIA FEDERAL FUNDS

           Federal Payment to the District of Columbia Courts

       For an additional amount for the District of Columbia 
     courts for capital repairs necessitated by the recent fire 
     damage to the courthouse facilities, $350,000, to remain 
     available until September 30, 2002, and for an additional 
     amount for such repairs for the Superior Court of the 
     District of Columbia, $50,000: Provided, That after providing 
     notice to the Committees on Appropriations of the Senate and 
     House of Representatives, the District of Columbia courts may 
     reallocate not more than $1,000,000 of the funds provided 
     under this heading under the District of Columbia 
     Appropriations Act, 2001, among the items and entities funded 
     under such heading for the costs of such repairs.

                    General Provisions--This Chapter

       Sec. 401. (a) Section 106(b) of the District of Columbia 
     Public Works Act of 1954 (sec. 43-1552(b), DC Code), as 
     amended by section 133 of the District of Columbia 
     Appropriations Act, 1990, is amended--
       (1) in the third sentence of paragraph (1), by striking 
     ``United States Treasury and'' and all that follows through 
     ``by the''; and
       (2) by adding at the end the following new paragraph:
       ``(5) Not later than the 15th day of the month following 
     each quarter (beginning with the first quarter of fiscal year 
     2001), the inspector general of each Federal department, 
     establishment, or agency receiving water services from the 
     District of Columbia shall submit a report to the Committees 
     on Appropriations of the House of Representatives and Senate 
     analyzing the promptness of payment with respect to the 
     services furnished to such department, establishment, or 
     agency.''.
       (b) Section 212(b) of the District of Columbia Public Works 
     Act of 1954 (sec. 43-1612(b), DC Code), as amended by section 
     133 of the District of Columbia Appropriations Act, 1990, is 
     amended--
       (1) in the third sentence of paragraph (1), by striking 
     ``United States Treasury and'' and all that follows through 
     ``by the''; and
       (2) by adding at the end the following new paragraph:
       ``(5) Not later than the 15th day of the month following 
     each quarter (beginning with the first quarter of fiscal year 
     2001), the inspector general of each Federal department, 
     establishment, or agency receiving sanitary sewer services 
     from the District of Columbia shall submit a report to the 
     Committees on Appropriations of the House of Representatives 
     and Senate analyzing the promptness of payment with respect 
     to the services furnished to such department, establishment, 
     or agency.''.
       (c) The amendments made by this section shall take effect 
     as if included in the enactment of section 133 of the 
     District of Columbia Appropriations Act, 1990.
       Sec. 402. (a) The Act entitled ``An Act donating certain 
     Lots in the City of Washington for Schools for Colored 
     Children in the District of Columbia'', approved July 28, 
     1866 (14 Stat. 343), is amended by striking the second 
     sentence.
       (b) Section 319 of the Revised Statutes of the United 
     States relating to the District of Columbia and Post Roads 
     (sec. 31-206, D.C. Code) is repealed.
       Sec. 403. Restrictions on Use of Annual Unobligated Balance 
     in D.C. Crime Victims Compensation Fund. (a) In General.--
     Section 16(d) of the Victims of Violent Crime Compensation 
     Act of 1996 (sec. 3-435(d), D.C. Code), as added by section 
     160(d) of the District of Columbia Appropriations Act, 2000, 
     is amended to read as follows:
       ``(d) Any unobligated balance existing in the Fund in 
     excess of $250,000 as of the end of each fiscal year 
     (beginning with fiscal year 2000) may be used only in 
     accordance with a plan developed by the District of Columbia 
     and approved by the Committees on Appropriations of the 
     Senate and House of Representatives, the Committee on 
     Government Reform of the House of Representatives, and the 
     Committee on Governmental Affairs of the Senate, and not less 
     than 80 percent of such balance shall be used for direct 
     compensation payments to crime victims

[[Page 26838]]

     through the Fund under this section and in accordance with 
     this Act.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect September 30, 2000.
       Sec. 404. (a) Notwithstanding any provision of the District 
     of Columbia Appropriations Act, 2001, the District of 
     Columbia may fund the programs identified under the heading 
     ``Reserve'' in H.R. 4942, One Hundred Sixth Congress, as 
     introduced, subject to the conditions described under such 
     heading and upon certification by the District of Columbia 
     Financial Responsibility and Management Assistance Authority 
     to the Committees on Appropriations of the Senate and House 
     of Representatives that the Chief Financial Officer of the 
     District of Columbia, the Mayor of the District of Columbia, 
     and the Council of the District of Columbia have identified 
     and implemented such spending reductions as may be necessary 
     to ensure that the District of Columbia will not have a 
     budget deficit for fiscal year 2001.
       (b)(1) Notwithstanding any provision of the District of 
     Columbia Appropriations Act, 2001, the use by the District of 
     the funds described in paragraph (2) for Pay-As-You-Go 
     Capital Funds shall be optional.
       (2) The funds described in this paragraph are funds set 
     aside for the reserve established by section 202(j) of the 
     District of Columbia Financial Responsibility and Management 
     Assistance Act of 1995 (as amended by section 148 of the 
     District of Columbia Appropriations Act, 2000) which are not 
     used for purposes of any reserve funds established under the 
     District of Columbia Appropriations Act, 2001, or any 
     amendments made by such Act.
       (c)(1) The Mayor of the District of Columbia shall deposit 
     the annual interest savings resulting from debt reductions 
     using the proceeds of the tobacco securitization program into 
     the emergency reserve fund established under section 450A of 
     the District of Columbia Home Rule Act (as added by section 
     159 of the District of Columbia Appropriations Act, 2001).
       (2) This subsection shall apply with respect to fiscal year 
     2001 and each succeeding fiscal year until the requirements 
     of section 450A of the District of Columbia Home Rule Act 
     have been met.
       Sec. 405. (a) Notwithstanding any provision of the District 
     of Columbia Appropriations Act, 2001, quarterly disbursements 
     shall be calculated and paid to District of Columbia public 
     charter schools during fiscal year 2001 in accordance with 
     section 107a(b) of the Uniform Per Student Funding Formula 
     for Public Schools and Public Charter Schools and Tax 
     Conformity Clarification Amendment Act of 1998 (sec. 31-
     2906.1(b), DC Code), as amended by the Enrollment Integrity 
     Act.
       Sec. 406. (a) The provisions of H.R. 5547 (as enacted into 
     law by H.R. 4942 of the 106th Congress) are repealed and 
     shall be deemed for all purposes (including section 1(b) of 
     H.R. 4942) to have never been enacted.
       (b) The repeal made by this section shall take effect as if 
     included in H.R. 4942 of the 106th Congress on the date of 
     its enactment.

                               CHAPTER 5

                      ENERGY AND WATER DEVELOPMENT

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil


                         General Investigations

       For an additional amount for ``General Investigations'', 
     $900,000, to remain available until expended: Provided, That 
     $100,000 shall be available for a reconnaissance study of 
     shore protection needs at North Topsail Beach, North 
     Carolina; $100,000 shall be available for a reconnaissance 
     study for the Passiac County, New Jersey, water 
     infrastructure project; $100,000 shall be available for a 
     reconnaissance study of flooding, drainage and other related 
     problems in the Cayuga Creek Watershed, New York; and 
     $600,000 shall be available for a cost-shared feasibility 
     study of the restoration of the lower St. Anthony's Falls 
     natural rapids in Minnesota.


                         Construction, General

       For an additional amount for ``Construction, General'', 
     $2,750,000, to remain available until expended: Provided, 
     That $75,000 shall be available for planning and design of a 
     project to provide for floodplain evacuation in the watershed 
     of Pond Creek, Kentucky; $100,000 shall be available for 
     design of recreation and access features at the Louisville 
     Waterfront Park in Kentucky; $500,000 shall be available for 
     a Limited Reevaluation Report for the Central Boca Raton 
     segment of the Palm Beach County, Florida, shore protection 
     project; and $75,000 shall be available to conduct research 
     on the eradication of Eurasian water milfoil at Houghton 
     Lake, Michigan: Provided further, That the Secretary of the 
     Army, acting through the Chief of Engineers, is authorized 
     and directed to use $2,000,000 of the funds appropriated 
     herein to initiate design and construction of the Hawaii 
     Water Management Project, including Waiahole Ditch on Oahu, 
     Kau Ditch on Maui, Pioneer Mill Ditch on Hawaii, and the 
     complex system on the west side of Kauai: Provided further, 
     That the Secretary of the Army may use up to $5,000,000 of 
     previously appropriated funds to carry out the Abandoned and 
     Inactive Noncoal Mine Restoration program authorized by 
     section 560 of Public Law 106-53.


 Flood Control, Mississippi River and Tributaries, Arkansas, Illinois, 
       Kentucky, Louisiana, Mississippi, Missouri, and Tennessee

       For an additional amount for ``Flood Control, Mississippi 
     River and Tributaries, Arkansas, Illinois, Kentucky, 
     Louisiana, Mississippi, Missouri, and Tennessee'', 
     $3,500,000, to remain available until expended, for 
     prosecuting work of repair, restoration or maintenance of the 
     Mississippi River levees, and for the correction of 
     deficiencies in the mainline Mississippi River levees.

                       DEPARTMENT OF THE INTERIOR

                         Bureau of Reclamation


                      Water and Related Resources

       For an additional amount for ``Water and Related 
     Resources'', $2,000,000, to remain available until expended, 
     for construction of the Mid-Dakota Rural Water System, in 
     addition to amounts made available under the Energy and Water 
     Appropriations Development Act, 2001.

                          DEPARTMENT OF ENERGY

                            ENERGY PROGRAMS

                             Energy Supply

       For an additional amount for ``Energy Supply'', $800,000, 
     to remain available until expended, for the Prime, LLC, of 
     central South Dakota, for final engineering and project 
     development of the integrated ethanol complex, including an 
     ethanol unit, waste treatment system, and enclosed cattle 
     feed lot.

                                Science

       For an additional amount for ``Science'', $1,000,000, to 
     remain available until expended, for high temperature 
     superconducting research and development at Boston College.

                               CHAPTER 6

                    General Provisions--This Chapter

       Sec. 601. Of the funds appropriated under the heading 
     Department of State, International Narcotics Control and Law 
     Enforcement, in the Foreign Operations, Export Financing, and 
     Related Programs Appropriations Act, 2001, not less than 
     $1,350,000 shall be available only for the Protection Project 
     to continue its study of international trafficking, 
     prostitution, slavery, debt bondage and other abuses of women 
     and children.
       Sec. 602. Embassy Compensation Authority. Funds made 
     available under the heading ``Other Bilateral Economic 
     Assistance, Economic Support Fund'' included in the Foreign 
     Operations, Export Financing, and Related Programs 
     Appropriations Act, 2001 (Public Law 106-429) may be made 
     available, notwithstanding any other provision of law, to 
     provide payment to the government of the People's Republic of 
     China for property loss and damage arising out of the May 7, 
     1999 incident in Belgrade, Federal Republic of Yugoslavia.

                               CHAPTER 7

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management


                            Land Acquisition

       For an additional amount for ``Land Acquisition'', 
     $5,000,000, to be derived from the Land and Water 
     Conservation Fund and to remain available until expended, to 
     carry out the provisions of title VI of the Steens Mountain 
     Cooperative Management and Protection Act (Public Law 106-
     399): Provided, That sums necessary to complete the 
     individual land exchanges identified under title VI shall be 
     provided within thirty days of each land exchange.

                United States Fish and Wildlife Service


                          Resource Management

       For an additional amount for ``Resource Management'', 
     $500,000 for a grant to the Center for Reproductive Biology 
     at Washington State University.


                Multinational Species Conservation Fund

       For an additional amount for the ``Multinational Species 
     Conservation Fund'', $750,000, to remain available until 
     expended, for Great Ape conservation activities authorized by 
     law.

                         National Park Service


                 Operation of the National Park System

       For an additional amount for ``Operation of the National 
     Park System'', $100,000 for completion of studies related to 
     the Arlington Boathouse in Virginia.


                  National Recreation and Preservation

       For an additional amount for ``National Recreation and 
     Preservation'', $1,600,000, to remain available until 
     expended, of which $500,000 is for the National Constitution 
     Center in Philadelphia, Pennsylvania and $1,100,000 is for a 
     grant to the Historic New Bridge Landing Park Commission.


                       Historic Preservation Fund

       For an additional amount for the ``Historic Preservation 
     Fund'', $100,000 for a grant to the Massillon Heritage 
     Foundation, Inc. in Massillon, Ohio.


                              Construction

       For an additional amount for ``Construction'', $3,500,000, 
     to remain available until expended, of which $1,500,000 is 
     for the Stones River National Battlefield and $2,000,000 is 
     for the Millennium Cultural Cooperative Park.

                          DEPARTMENT OF ENERGY

                          Energy Conservation

       For an additional amount for ``Energy Conservation'', 
     $300,000, to remain available until expended, for a grant to 
     the Oak Ridge National Laboratory/Nevada Test Site 
     Development Corporation for the development of (1) cooling, 
     refrigeration, and thermal energy management equipment 
     capable of using natural gas or hydrogen fuels; and (2) 
     improvement of the reliability of heat-activated cooling, 
     refrigeration, and thermal energy management equipment used 
     in combined heating, cooling, and power applications.

[[Page 26839]]



                             RELATED AGENCY

            Woodrow Wilson International Center for Scholars


                       Payment to Endowment Fund

       For payment to the endowment fund of the Woodrow Wilson 
     International Center for Scholars $5,000,000: Provided, That 
     such funds may be invested in investments approved by the 
     Board of Trustees of the Woodrow Wilson International Center 
     for Scholars and the income from such investments may be used 
     to support the programs of the Center that the Board of 
     Trustees and the Director of the Center determine 
     appropriate.

                    General Provision--This Chapter

       Sec. 701. In addition to amounts appropriated in Public Law 
     106-291 to the Indian Health Service under the heading 
     ``Indian Health Services'', $30,000,000, to remain available 
     until expended, is appropriated as follows:
       (1) $15,000,000 shall be provided to the Alaska Federation 
     of Natives as a direct lump sum payment within 30 days of 
     enactment of this Act for its Alaska Native Sobriety and 
     Alcohol Control Program: Provided, That the President of the 
     Alaska Federation of Natives shall make grants to each Alaska 
     Native regional non-profit corporation (as listed in section 
     103(a)(2) of Public Law 104-193 (110 Stat. 2159)) in which 
     there are villages, including established villages and 
     organized cities under state law, that have voted to ban the 
     sale, importation, or possession of alcohol pursuant to local 
     option state law: Provided further, That such grants shall be 
     used to (1) employ Village Public Safety Officers 
     (hereinafter referred to as ``VPSO's'') under such terms and 
     conditions that encourage retention of such VPSO's and that 
     are consistent with agreements with the State of Alaska for 
     the provision of such VPSO services, (2) acquisition of law 
     enforcement equipment or services, or (3) develop and 
     implement restorative justice programs recognized under state 
     sentencing law as a community based complement or alternative 
     to incarceration or other penalty: Provided further, That 
     funds may also be used for activities and programs to further 
     the sobriety movement including education and treatment. The 
     President of the Alaska Federation of Natives shall submit a 
     report on its activities and those of its grantees including 
     administrative costs and persons served by December 31, 2001; 
     and
       (2) $15,000,000 shall be provided to the Indian Health 
     Service for drug and alcohol prevention and treatment 
     services for non-Alaska tribes.

                               CHAPTER 8

                    General Provisions--This Chapter

       Sec. 801. There are appropriated to the Health Resources 
     and Services Administration in the Department of Health and 
     Human Services, for the construction of the Biotechnology 
     Science Center at the Marshall University in Huntington, West 
     Virginia, $25,000,000, to remain available until expended.
       Sec. 802. There are appropriated to the Health Resources 
     and Services Administration in the Department of Health and 
     Human Services, for the construction of the Christian Nurses 
     Hospice in Brentwood, New York, $400,000.
       Sec. 803. There are appropriated to the Institute of Museum 
     and Library Services, for expansion of the marine biology 
     program at the Long Island Maritime Museum, $250,000.

                               CHAPTER 9

                           LEGISLATIVE BRANCH

                        CONGRESSIONAL OPERATIONS

                        HOUSE OF REPRESENTATIVES

     Payments to Widows and Heirs of Decreased Members of Congress

       For payment to Laura Y. Bateman, widow of Herbert H. 
     Bateman, late a Representative from the State of Virginia, 
     $141,300.
       For payment to Susan L. Vento, widow of Bruce F. Vento, 
     late a Representative from the State of Minnesota, $141,300.
       For payment to Betty Lee Dixon, widow of Julian C. Dixon, 
     late a Representative from the State of California, $141,300.

                        ARCHITECT OF THE CAPITOL

                     Capitol Buildings and Grounds

                           capitol buildings

                         salaries and expenses

       For an additional amount for ``Capitol Buildings and 
     Grounds--capitol buildings--salaries and expenses'' for 
     necessary expenses for construction of emergency egress from 
     the fourth floor of the Capitol Building, $1,033,000, to 
     remain available until expended: Provided, That the entire 
     amount is designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985, as amended.

                          LIBRARY OF CONGRESS

                         Salaries and Expenses

       For the Library of Congress, $25,000,000, to remain 
     available until expended, for necessary salaries and expenses 
     of the National Digital Information Infrastructure and 
     Preservation Program; and an additional $75,000,000, to 
     remain available until expended, for such purposes: Provided, 
     That the portion of such additional $75,000,000, which may be 
     expended shall not exceed an amount equal to the matching 
     contributions (including contributions other than money) for 
     such purposes that (1) are received by the Librarian of 
     Congress for the program from non-Federal sources, and (2) 
     are received before March 31, 2003: Provided further, That 
     such program shall be carried out in accordance with a plan 
     or plans approved by the Committee on House Administration of 
     the House of Representatives, the Committee on Rules and 
     Administration of the Senate, the Committee on Appropriations 
     of the House of Representatives, and the Committee on 
     Appropriations of the Senate: Provided further, That of the 
     total amount appropriated, $5,000,000 may be expended before 
     the approval of a plan to develop such a plan, and to collect 
     or preserve essential digital information which otherwise 
     would be uncollectible: Provided further, That the balance in 
     excess of such $5,000,000 shall not be expended without 
     approval in advance by the Committee on Appropriations of the 
     House of Representatives and the Committee on Appropriations 
     of the Senate: Provided further, That the plan under this 
     heading shall be developed by the Librarian of Congress 
     jointly with entities of the Federal government with 
     expertise in telecommunications technology and electronic 
     commerce policy (including the Secretary of Commerce and the 
     Director of the White House Office of Science and Technology 
     Policy) and the National Archives and Records Administration, 
     and with the participation of representatives of other 
     Federal, research, and private libraries and institutions 
     with expertise in the collection and maintenance of archives 
     of digital materials (including the National Library of 
     Medicine, the National Agricultural Library, the National 
     Institute of Standards and Technology, the Research Libraries 
     Group, the Online Computer Library Center, and the Council on 
     Library and Information Resources) and representatives of 
     private business organizations which are involved in efforts 
     to preserve, collect, and disseminate information in digital 
     formats (including the Open e-Book Forum): Provided further, 
     That notwithstanding any other provision of law, effective 
     with the One Hundred Seventh Congress and each succeeding 
     Congress the chair of the Subcommittee on the Legislative 
     Branch of the Committee on Appropriations of the House of 
     Representatives shall serve as a member of the Joint 
     Committee on the Library with respect to the Library's 
     financial management, organization, budget development and 
     implementation, and program development and administration, 
     as well as any other element of the mission of the Library of 
     Congress which is subject to the requirements of Federal law.

                    General Provisions--This Chapter

       Sec. 901. Retirement Credit for Certain Legislative Branch 
     Employees. (a) Former Employees of Congressional Campaign 
     Committees.--
       (1) CSRS.--Section 8332(m) of title 5, United States Code, 
     as amended by section 312 of the Legislative Branch 
     Appropriations Act, 2000, is amended--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4); and
       (B) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Upon application to the Office of Personnel 
     Management, any individual who was an employee on the date of 
     the enactment of this paragraph, and who has on such date or 
     thereafter acquires 5 years or more of creditable civilian 
     service under this section (exclusive of service for which 
     credit is allowed under this subsection) shall be allowed 
     credit (as service as a Congressional employee) for service 
     before December 31, 1990, while employed by the Democratic 
     Senatorial Campaign Committee, the Republican Senatorial 
     Campaign Committee, the Democratic National Congressional 
     Committee, or the Republican National Congressional 
     Committee, if--
       ``(A) such employee has at least 4 years and 6 months of 
     service on such committees as of December 31, 1990; and
       ``(B) such employee makes a deposit to the Fund in an 
     amount equal to the amount which would be required under 
     section 8334(c) if such service were service as a 
     Congressional employee.''.
       (2) FERS.--Section 8411 of title 5, United States Code, is 
     amended by adding at the end the following new subsection:
       ``(i)(1) Upon application to the Office of Personnel 
     Management, any individual who was an employee on the date of 
     the enactment of this paragraph, and who has on such date or 
     thereafter acquires 5 years or more of creditable civilian 
     service under this section (exclusive of service for which 
     credit is allowed under this subsection) shall be allowed 
     credit (as service as a Congressional employee) for service 
     before December 31, 1990, while employed by the Democratic 
     Senatorial Campaign Committee, the Republican Senatorial 
     Campaign Committee, the Democratic National Congressional 
     Committee, or the Republican National Congressional 
     Committee, if--
       ``(A) such employee has at least 4 years and 6 months of 
     service on such committees as of December 31, 1990; and
       ``(B) such employee deposits to the Fund an amount equal to 
     1.3 percent of the base pay for such service, with interest.
       ``(2) The Office shall accept the certification of the 
     President of the Senate (or the President's designee) or the 
     Speaker of the House of Representatives (or the Speaker's 
     designee), as the case may be, concerning the service of, and 
     the amount of compensation received by, an employee with 
     respect to whom credit is to be sought under this subsection.
       ``(3) An individual shall not be granted credit for such 
     service under this subsection if eligible for credit under 
     section 8332(m) for such service.''.
       (b) Former Employees of Legislative Service 
     Organizations.--
       (1) Service of employees of legislative service 
     organizations.--

[[Page 26840]]

       (A) In general.--Subject to succeeding provisions of this 
     paragraph, upon application to the Office of Personnel 
     Management in such form and manner as the Office shall 
     prescribe, any individual who performed service as an 
     employee of a legislative service organization of the House 
     of Representatives (as defined and authorized in the One 
     Hundred Third Congress) and whose pay was paid in whole or in 
     part by a source other than the Clerk Hire account of a 
     Member of the House of Representatives (other than an 
     individual described in paragraph (6)) shall be entitled--
       (i) to receive credit under the provisions of subchapter 
     III of chapter 83 or chapter 84 of title 5, United States 
     Code (whichever would be appropriate), as Congressional 
     employee service, for all such service; and
       (ii) to have all pay for such service which was so paid by 
     a source other than the Clerk Hire account of a Member 
     included (in addition to any amounts otherwise included in 
     basic pay) for purposes of computing an annuity payable out 
     of the Civil Service Retirement and Disability Fund.
       (B) Deposit requirement.--In order to be eligible for the 
     benefits described in subparagraph (A), an individual shall 
     be required to pay into the Civil Service Retirement and 
     Disability Fund an amount equal to the difference between--
       (i) the employee contributions that were actually made to 
     such Fund under applicable provisions of law with respect to 
     the service described in subparagraph (A); and
       (ii) the employee contributions that would have been 
     required with respect to such service if the amounts 
     described in subparagraph (A)(ii) had also been treated as 
     basic pay.
     The amount required under this subparagraph shall include 
     interest, which shall be computed under section 8334(e) of 
     title 5, United States Code.
       (C) Certain offsets required in order to prevent double 
     contributions and benefits.--In the case of any period of 
     service as an employee of a legislative service organization 
     which constituted employment for purposes of title II of the 
     Social Security Act--
       (i) any pay for such service (as described in subparagraph 
     (A)(ii)) with respect to which the deposit under subparagraph 
     (B) would otherwise be computed by applying the first 
     sentence of section 8334(a)(1) of title 5, United States 
     Code, shall instead be computed in a manner based on section 
     8334(k) of such title; and
       (ii) any retirement benefits under subchapter III of 
     chapter 83 of title 5, United States Code, shall be subject 
     to offset (to reflect that portion of benefits under title II 
     of the Social Security Act attributable to pay referred to in 
     subparagraph (A)) similar to that provided for under section 
     8349 of such title.
       (2) Survivor annuitants.--For purposes of survivor 
     annuities, an application authorized by this section may, in 
     the case of an individual under paragraph (1) who has died, 
     be made by a survivor of such individual.
       (3) Recomputation of annuities.--Any annuity or survivor 
     annuity payable as of when an individual makes the deposit 
     required under paragraph (1) shall be recomputed to take into 
     account the crediting of service under such paragraph for 
     purposes of amounts accruing for any period beginning on or 
     after the date on which the individual makes the deposit.
       (4) Certification of speaker.--The Office of Personnel 
     Management shall accept the certification of the Speaker of 
     the House of Representatives (or the Speaker's designee) 
     concerning the service of, and the amount of compensation 
     received by, an employee with respect to whom credit is to be 
     sought under this subsection.
       (5) Notification and other duties of the office of 
     personnel management.--
       (A) Notice.--The Office of Personnel Management shall take 
     such action as may be necessary and appropriate to inform 
     individuals of any rights they might have as a result of the 
     enactment of this subsection.
       (B) Assistance.--The Office shall, on request, assist any 
     individual in obtaining from any department, agency, or other 
     instrumentality of the United States any information in the 
     possession of such instrumentality which may be necessary to 
     verify the entitlement of such individual to have any service 
     credited under this subsection or to have an annuity 
     recomputed under paragraph (3).
       (C) Information.--Any department, agency, or other 
     instrumentality of the United States which possesses any 
     information with respect to an individual's performance of 
     any service described in paragraph (1) shall, at the request 
     of the office, furnish such information to the Office.
       (6) Exclusion of certain employees.--An individual is not 
     eligible for credit under this subsection if the individual 
     served as an employee of the House of Representatives for an 
     aggregate period of 5 years or longer after the individual's 
     final period of service as an employee of a legislative 
     service organization of the House of Representatives.
       (7) Member defined.--In this subsection, the term ``Member 
     of the House of Representatives'' includes a Delegate or 
     Resident Commissioner to the Congress.
       Sec. 902. (a) The Legislative Branch Appropriations Act, 
     2001 is amended under the subheading ``miscellaneous items'' 
     under the heading ``SENATE'' under title I by striking 
     ``$8,655,000'' and inserting ``$25,155,000''.
       (b) The amendment made by subsection (a) shall take effect 
     as if included in the enactment of the Legislative Branch 
     Appropriations Act, 2001.
       Sec. 903. Beginning on the first day of the 107th Congress, 
     the Presiding Officer of the Senate shall apply all of the 
     precedents of the Senate under Rule XXVIII in effect at the 
     conclusion of the 103rd Congress. Further that there is now 
     in effect a Standing order of the Senate that the reading of 
     conference reports is no longer required, if the said 
     conference report is available in the Senate.

                               CHAPTER 10

                    General Provisions--This Chapter

       Sec. 1001. In addition to amounts appropriated or otherwise 
     made available in the Military Construction Appropriations 
     Act, 2001, $43,500,000 is hereby appropriated to the 
     Department of Defense, to remain available until September 
     30, 2005, as follows:
       ``Military Construction, Army'', $27,000,000;
       ``Military Construction, Air Force'', $12,000,000;
       ``Military Construction, Army National Guard'', $4,500,000:

     Provided, That notwithstanding any other provision of law, 
     such funds may be obligated or expended to carry out planning 
     and design, military construction, and family housing 
     projects not otherwise authorized by law.
       Sec. 1002. Transfer of Jurisdiction, Melrose Air Force 
     Range, New Mexico. (a) Transfer Required.--(1) The Secretary 
     of the Interior shall transfer, without reimbursement, to the 
     administrative jurisdiction of the Secretary of the Air Force 
     the surface estate in the real property described in 
     paragraph (2), which consists of 6,713.90 acres of public 
     domain lands in Roosevelt County, New Mexico.
       (2) The transfer of administrative jurisdiction under 
     paragraph (1) encompasses the following sections (or portions 
     thereof):
       (A) In Township 1 North, Range 30 East, New Mexico Prime 
     Meridian:
       (i) Sec. 2 (S\1/2\).
       (ii) Sec. 11. All.
       (iii) Sec. 20 (S\1/2\SE\1/4\).
       (iv) Sec. 28. All.
       (B) In Township 1 South, Range 30 East, New Mexico Prime 
     Meridian:
       (i) Sec. 2 (Lots 1-12, S\1/2\).
       (ii) Sec. 3 (Lots 1-12, S\1/2\).
       (iii) Sec. 4 (Lots 1-12, S\1/2\).
       (iv) Sec. 6 (Lots 1 and 2).
       (v) Sec. 9 (N\1/2\, N\1/2\S\1/2\).
       (vi) Sec. 10 (N\1/2\, N\1/2\S\1/2\).
       (vii) Sec. 11 (N\1/2\, N\1/2\S\1/2\).
       (C) In Township 2 North, Range 30 East, New Mexico Prime 
     Meridian:
       (i) Sec. 20 (E\1/2\S\1/4\).
       (i) Sec. 21 (SW\1/4\, W\1/2\SE\1/4\).
       (i) Sec. 28 (W\1/2\E\1/2\, W\1/2\).
       (i) Sec. 29 (E\1/2\E\1/2\).
       (i) Sec. 32 (E\1/2\E\1/2\).
       (i) Sec. 33 (W\1/2\E\1/2\, NW\1/4\, S\1/2\SW\1/4\).
       (b) Status of Surface Estate.--Upon transfer under 
     subsection (a), the surface estate is deemed to be real 
     property subject to the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 471 et seq.).
       (c) Withdrawal of Mineral Estate.--Subject to valid 
     existing rights, the mineral estate of the lands described in 
     subsection (a) are withdrawn from all forms of appropriation 
     under the public land laws, including the mining laws and the 
     mineral and geothermal leasing laws, but not the Act of July 
     31, 1947 (commonly known as the Materials Act of 1947; 30 
     U.S.C. 601 et seq.).
       (d) Use of Mineral Materials.--Notwithstanding subsection 
     (c) or the Act of July 31, 1947, the Secretary of the Air 
     Force may use, without application to the Secretary of the 
     Interior, the sand, gravel, or similar mineral material 
     resources on the lands described in subsection (a), of the 
     type subject to disposition under the Act of July 31, 1947, 
     when the use of such resources is required for construction 
     needs on the Melrose Air Force Range, New Mexico.
       Sec. 1003. Transfer of Jurisdiction, Yakima Training 
     Center, Washington. (a) Transfer Required.--(1) The Secretary 
     of the Interior shall transfer, without reimbursement, to the 
     administrative jurisdiction of the Secretary of the Army the 
     surface estate in the real property described in paragraph 
     (2), which consists of 6,640.02 acres of public domain lands 
     in Kittitas County, Washington.
       (2) The transfer of administrative jurisdiction under 
     paragraph (1) encompasses the following sections (or portions 
     thereof):
       (A) In Township 17 North, Range 20 East, Willamette 
     Meridian:
       (i) Sec. 22 (S\1/2\).
       (ii) Sec. 24 (S\1/2\SW\1/4\ and that portion of the E\1/2\ 
     lying south of the Interstate Highway 90 right-of-way).
       (iii) Sec. 26. All.
       (B) In Township 16 North, Range 21 East, Willamette 
     Meridian:
       (i) Sec. 4 (SW\1/4\SW\1/4\).
       (ii) Sec. 12 (SE\1/4\).
       (iii) Sec. 18 (Lots 1, 2, 3, and 4, E\1/2\ and E\1/2\W\1/
     2\).
       (C) In Township 17 North, Range 21 East, Willamette 
     Meridian:
       (i) Sec. 30 (Lots 3 and 4).
       (ii) Sec. 32 (NE\1/4\SE\1/4\).
       (D) In Township 16 North, Range 22 East, Willamette 
     Meridian:
       (i) Sec. 2 (Lots 1, 2, 3, and 4, S\1/2\N\1/2\ and S\1/2\).
       (ii) Sec. 4 (Lots 1, 2, 3, and 4, S\1/2\N\1/2\ and S\1/2\).
       (iii) Sec. 10. All.
       (iv) Sec. 14. All.
       (v) Sec. 20 (SE\1/4\SW\1/4\).
       (vi) Sec. 22. All.
       (vii) Sec. 26 (N\1/2\).
       (viii) Sec. 28 (N\1/2\).
       (E) In Township 16 North, Range 23 East, Willamette 
     Meridian:

[[Page 26841]]

       (i) Sec. 18 (Lots 3 and 4, E\1/2\SW\1/4\, W\1/2\SE\1/4\, 
     and that portion of the E\1/2\SE\1/4\ lying westerly of the 
     westerly right-of-way line of Huntzinger Road).
       (ii) Sec. 20 (That portion of the SW\1/4\ lying westerly of 
     the easterly right-of-way line of the railroad).
       (iii) Sec. 30 (Lots 1 and 2, NE\1/4\ and E\1/2\NW\1/4\).
       (b) Status of Surface Estate.--Upon transfer under 
     subsection (a), the surface estate is deemed to be real 
     property subject to the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 471 et seq.).
       (c) Withdrawal of Mineral Estate.--(1) Subject to valid 
     existing rights, the mineral estate of the lands described in 
     subsection (a), as well as the additional lands described in 
     paragraph (2), are withdrawn from all forms of appropriation 
     under the public land laws, including the mining laws and the 
     geothermal leasing laws, but not the Act of July 31, 1947 
     (commonly known as the Materials Act of 1947; 30 U.S.C. 601, 
     et seq.) and the Mineral Leasing Act (30 U.S.C. 181 et seq.):
       (2) The additional lands referred to in paragraph (1) 
     consist of 3,090.80 acres in the following sections (or 
     portions thereof):
       (A) In Township 16 North, Range 20 East, Willamette 
     Meridian:
       (i) Sec. 12. All.
       (ii) Sec. 18 (Lot 4 and SE\1/4\).
       (iii) Sec. 20 (S\1/2\).
       (B) In Township 16 North, Range 21 East, Willamette 
     Meridian:
       (i) Sec. 4 (Lots 1, 2, 3, and 4, S\1/2\NE\1/4\).
       (ii) Sec. 8. All.
       (C) In Township 16 North, Range 22 East, Willamette 
     Meridian:
       (i) Sec. 12. All.
       (D) In Township 17 North, Range 21 East, Willamette 
     Meridian:
       (i) Sec. 32 (S\1/2\SE\1/4\).
       (ii) Sec. 34 (W\1/2\).
       (d) Use of Mineral Materials.--Notwithstanding subsection 
     (c) or the Act of July 31, 1947, the Secretary of the Army 
     may use, without application to the Secretary of the 
     Interior, the sand, gravel, or similar mineral material 
     resources on the lands described in subsections (a) and (c), 
     of the type subject to disposition under the Act of July 31, 
     1947, when the use of such resources is required for 
     construction needs on the Yakima Training Center, Washington.

                               CHAPTER 11

                      DEPARTMENT OF TRANSPORTATION

                    General Provisions--This Chapter

       Sec. 1101. Section 5309(g)(4)(D)(2) of title 49, United 
     States Code, is amended by striking ``light''.
       Sec. 1102. Item number 630 of the table contained in 
     section 1602 of the Transportation Act for the 21st Century 
     (112 Stat. 280), relating to Buffalo, New York, is amended by 
     striking ``Design and construct Outer Harbor Bridge in 
     Buffalo'' and inserting ``Transportation infrastructure 
     improvements, Inner Harbor/Redevelopment project, Buffalo''.
       Sec. 1103. If the State of Arkansas incorporates into the 
     relocation of U.S. Route 71 through Fort Chaffee, Arkansas, 
     land obtained by the State from the Federal Government as a 
     result of the closure of a military installation, the 
     Secretary of Transportation shall credit to the State share 
     of the cost of the relocation the fair market value of such 
     land .
       Sec. 1104. For an additional amount to enable the Secretary 
     of Transportation to make a grant to the Huntsville 
     International Airport, $2,500,000, to be derived from the 
     airport and airway trust fund, to remain available until 
     expended.
       Sec. 1105. Notwithstanding any other provision of law, for 
     necessary expenses for the Southeast Light Rail Extension 
     Project in Dallas, Texas, $1,000,000, to be derived from the 
     Mass Transit Account of the Highway Trust Fund and to remain 
     available until expended.
       Sec. 1106. Section 1105(c) of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (105 Stat. 2032-2033) 
     is amended by striking paragraph (38) and replacing it with 
     the following--
       ``(38) The Ports-to-Plains Corridor from Laredo, Texas, via 
     I-27 to Denver, Colorado, shall include:
       ``(A) In the State of Texas the Ports-to-Plains Corridor 
     shall generally follow--
       ``(i) I-35 from Laredo to United States Route 83 at Exit 
     18;
       ``(ii) United States Route 83 from Exit 18 to Carrizo 
     Springs;
       ``(iii) United States Route 277 from Carrizo Springs to San 
     Angelo;
       ``(iv) United States Route 87 from San Angelo to Sterling 
     City;
       ``(v) From Sterling City to Lamesa, the Corridor shall 
     follow United States Route 87 and, the corridor shall also 
     follow Texas Route 158 from Sterling City to I-20, then via 
     I-20 West to Texas Route 349 and, Texas Route 349 from 
     Midland to Lamesa;
       ``(vi) United States Route 87 from Lamesa to Lubbock;
       ``(vii) I-27 from Lubbock to Amarillo; and
       ``(viii) United States Route 287 from Amarillo to Dumas.
       ``(B) The corridor designation contained in paragraph (A) 
     shall take effect only if the Texas Transportation Commission 
     has not designated the Ports-to-Plains Corridor in Texas by 
     June 30, 2001.''.
       Sec. 1107. For an additional amount to enable the Secretary 
     of Transportation to make a grant for the Newark-Elizabeth 
     rail link project, New Jersey, $3,000,000, to be derived from 
     the Mass Transit Account of the Highway Trust Fund and to 
     remain available until expended.
       Sec. 1108. Section 5309(m)(3)(C) of Title 49 United States 
     Code shall not apply to the funds made available in the 
     Department of Transportation and Related Agencies 
     Appropriations Act, 2001: Provided, That notwithstanding any 
     other provision of law, the 14th Street Bridge, Virginia; 
     Chouteau Bridge, Jackson County, Missouri; Clement C. Clay 
     Bridge replacement, Morgan/Madison counties, Alabama; 
     Fairfield-Benton-Kennebec River Bridge, Maine; Florida 
     Memorial Bridge, Florida; Historic Woodrow Wilson Bridge, 
     Mississippi; Missisquoi Bay Bridge, Vermont; Oaklawn Bridge, 
     South Pasadena, California; Pearl Harbor Memorial Bridge 
     replacement, Connecticut; Powell County Bridge, Montana; 
     Santa Clara Bridge, Oxnard, California; Star City Bridge, 
     West Virginia; US 231 Bridge over Tennessee River, Alabama; 
     US 54/US 69 Bridge, Kansas; Waimalu Bridge replacement on I-
     1, Hawaii; Washington Bridge, Rhode Island are eligible in 
     fiscal year 2001 under section 144(g)(2) of title 23, United 
     States Code: Provided further, That section 378 of Public Law 
     106-346 is amended by inserting after ``US 101'' the 
     following: ``and Interstate 5 Trade Corridor''.
       Sec. 1109. Notwithstanding any other provision of law, in 
     addition to funds otherwise appropriated in this or any other 
     Act for fiscal year 2001, $4,000,000 is hereby appropriated 
     from the Highway Trust Fund for Commercial Remote Sensing 
     Products and Spatial Information Technologies under section 
     5113 of Public Law 105-178, as amended: Provided, That such 
     funds are used to study the creation of a new highway right 
     of way south of I-10 along the Mississippi Gulf Coast by 
     relocating the existing railroad right of way out of downtown 
     areas.
       Sec. 1110. Amtrak is authorized to obtain services from the 
     Administrator of General Services, and the Administrator is 
     authorized to provide services to Amtrak, under sections 
     201(b) and 211(b) of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 481(b) and 491(b)) for fiscal 
     year 2001 and each fiscal year thereafter until the fiscal 
     year that Amtrak operates without Federal operating grant 
     funds appropriated for its benefit, as required by sections 
     24101(d) and 24104(a) of title 49, United States Code.
       Sec. 1111. Of the funds made available in the ``Alteration 
     of bridges'' account of the Department of Transportation and 
     Related Agencies Appropriations Act, 2001 for the Fox River 
     Bridge, $575,000 shall be transferred by the Secretary of 
     Transportation to the City of Oshkosh for removal of the 
     bridge located at mile point 56.9 of the Fox River in 
     Oshkosh, Wisconsin. The United States shall assume no 
     responsibility for project management relating to removal of 
     the bridge.
       Sec. 1112. Notwithstanding section 27 of the Merchant 
     Marine Act, 1920 (46 App. U.S.C. 883), section 8 of the Act 
     of June 19, 1886 (46 App. U.S.C. 289), and section 12106 of 
     title 46, United States Code, the Secretary of Transportation 
     may issue a certificate of documentation with appropriate 
     endorsement for employment in the coastwise trade for the 
     following vessels:
       (1) M/V WELLS GRAY (State of Alaska registration number AK 
     9452 N; former Canadian registration number 154661); and
       (2) ANNANDALE (United States official number 519434).
       Sec. 1113. Conveyance of Coast Guard Property in 
     Middletown, California. (a) Authority To Convey.--
       (1) In general.--The Administrator of General Services (in 
     this section referred to as the ``Administrator'') may 
     promptly convey to Lake County, California (in this section 
     referred to as the ``County''), without consideration, all 
     right, title, and interest of the United States (subject to 
     subsection (c)) in and to the property described in 
     subsection (b).
       (2) Identification of property.--The Administrator, in 
     consultation with the Commandant of the Coast Guard, may 
     identify, describe, and determine the property to be conveyed 
     under this section.
       (b) Property Described.--
       (1) In general.--The property referred to in subsection (a) 
     is such portion of the Coast Guard LORAN Station Middletown 
     as has been reported to the General Services Administration 
     to be excess property, consisting of approximately 733.43 
     acres, and is comprised of all or part of tracts A-101, A-
     102, A-104, A-105, A-106, A-107, A-108, and A-111.
       (2) Survey.--The exact acreage and legal description of the 
     property conveyed under subsection (a), and any easements or 
     rights-of-way reserved by the United States under subsection 
     (c)(1), shall be determined by a survey satisfactory to the 
     Administrator. The cost of the survey shall be borne by the 
     County.
       (c) Conditions.--
       (1) In general.--In making the conveyance under subsection 
     (a), the Administrator shall--
       (A) reserve for the United States such existing rights-of-
     way for access and such easements as are necessary for 
     continued operation of the LORAN station;
       (B) preserve other existing easements for public roads and 
     highways, public utilities, irrigation ditches, railroads, 
     and pipelines; and
       (C) impose such other restrictions on use of the property 
     conveyed as are necessary to protect the safety, security, 
     and continued operation of the LORAN station.
       (2) Firebreaks and fence.--(A) The Administrator may not 
     convey any property under this section unless the County and 
     the Commandant of the Coast Guard enter into an agreement

[[Page 26842]]

     with the Administrator under which the County is required, in 
     accordance with design specifications and maintenance 
     standards established by the Commandant--
       (i) to establish and construct within 6 months after the 
     date of the conveyance, and thereafter to maintain, 
     firebreaks on the property to be conveyed; and
       (ii) construct within 6 months after the date of 
     conveyance, and thereafter maintain, a fence approved by the 
     Commandant along the property line between the property 
     conveyed and adjoining Coast Guard property.
       (B) The agreement shall require that--
       (i) the County shall pay all costs of establishment, 
     construction, and maintenance of firebreaks under 
     subparagraph (A)(i); and
       (ii) the Commandant shall provide all materials needed to 
     construct a fence under subparagraph (A)(ii), and the County 
     shall pay all other costs of construction and maintenance of 
     the fence.
       (3) Covenants appurtenant.--The Administrator shall take 
     actions necessary to render the requirement to establish, 
     construct, and maintain firebreaks and a fence under 
     paragraph (2) and other requirements and conditions under 
     paragraph (1), under the deed conveying the property to the 
     County, covenants that run with the land for the benefit of 
     land retained by the United States.
       (d) Reversionary Interest.--During the five-year period 
     beginning on the date the Administrator makes the conveyance 
     authorized by subsection (a), the real property conveyed 
     pursuant to this section, at the option of the Administrator, 
     shall revert to the United States and be placed under the 
     administrative control of the Administrator, if--
       (1) the County sells, conveys, assigns, exchanges, or 
     encumbers the property conveyed or any part thereof;
       (2) the County fails to maintain the property conveyed in a 
     manner consistent with the terms and conditions in subsection 
     (c);
       (3) the County conducts any commercial activities at the 
     property conveyed, or any part thereof, without approval of 
     the Secretary; or
       (4) at least 30 days before the reversion, the 
     Administrator provides written notice to the owner that the 
     property or any part thereof is needed for national security 
     purposes.
       Sec. 1114. Conveyance of Coast Guard Property to Town of 
     Nantucket, Massachusetts. (a) Authority to Convey.--
       (1) In general.--Notwithstanding any other law, the 
     Administrator of the General Services Administration 
     (Administrator) or the Commandant of the Coast Guard 
     (Commandant), as appropriate, shall convey to the Town of 
     Nantucket, Massachusetts (Town), without monetary 
     consideration, all right, title, and interest of the United 
     States of America (United States) in and to a certain parcel 
     of land located in Nantucket, Massachusetts, and part of 
     United States Coast Guard LORAN Station Nantucket, together 
     with any improvements thereon in their then current 
     condition.
       (2) Identification of property.--The Administrator or the 
     Commandant, as appropriate, shall identify, describe, and 
     determine the property to be conveyed under this section. The 
     Town shall bear all monetary costs associated with any survey 
     required to describe the property to be conveyed under this 
     section and any easements reserved by the United States under 
     subsection (b)(1).
       (b) Terms and Conditions of Conveyance.--
       (1) The conveyance of property under this section shall be 
     made subject to any terms and conditions the Administrator or 
     the Commandant, as appropriate, considers necessary, 
     including the reservation of easements and other rights on 
     behalf of the United States, to ensure that--
       (A) there is reserved to the United States the right to 
     remove, relocate, or replace any aid to navigation located 
     upon, or install or construct any aid to navigation upon, 
     property conveyed under this section as may be necessary for 
     navigational purposes;
       (B) the United States shall have the right to enter 
     property conveyed under this section at any time, without 
     notice, for purposes of operating, maintaining, and 
     inspecting any aid to navigation and for the purposes of 
     exercising any of the rights set forth in paragraph (1)(A) of 
     this subsection; and
       (C) the Town shall not interfere or allow interference, in 
     any manner, with any aid to navigation, whether located upon 
     the property conveyed under this section or upon any portion 
     of LORAN Station Nantucket retained by the United States, nor 
     hinder activities required for the inspection, operation, and 
     maintenance of any such aid to navigation without the 
     Commandant's express written permission.
       (2) The Town shall not convey, assign, exchange, or in any 
     way encumber the property conveyed under this section, unless 
     approved by the Administrator.
       (3) The Town shall not conduct any commercial activities at 
     or upon the property conveyed under this section, unless 
     approved by the Administrator.
       (4) The Town shall not be required to maintain any active 
     aid to navigation associated with the property conveyed under 
     this section except for private aids to navigation permitted 
     under 14 U.S.C. Sec.  83.
       (5) The United States shall not convey any property under 
     this section, nor grant any real property license under 
     subsection (d), until the Town enters into an agreement with 
     the United States to relocate the Coast Guard receiving 
     antenna and associated equipment, as identified by the 
     Commandant, at the Town's sole cost and expense, and subject 
     to the Commandant's design specifications, project schedule, 
     and final project approval.
       (6) The United States shall not convey any property under 
     this section, nor grant any real property license under 
     subsection (d), until the Town enters into an agreement with 
     the United States that provides that the Town will 
     immediately cease construction or operation of the waste 
     water treatment facility upon notification by the Commandant 
     that the Town's construction or operation of the facility 
     interferes with any Coast Guard aid to navigation. The 
     agreement shall provide that construction or operation shall 
     not be resumed until the conditions causing the interference 
     are corrected, and the Commandant authorizes the construction 
     or operation to resume.
       (7) All conditions placed with the deed of title shall be 
     construed as covenants running with the land.
       (c) Reversionary Interest.--In addition to any term or 
     condition established pursuant to this section, the 
     conveyance of property under this section shall include a 
     condition that the property conveyed, at the option of the 
     Administrator, shall revert to the United States and be 
     placed under the administrative control of the Administrator, 
     if--
       (1) the Town conveys, assigns, exchanges, or in any manner 
     encumbers the property conveyed for consideration, unless 
     otherwise approved by the Administrator;
       (2) the Town conducts any commercial activities at or upon 
     the property conveyed, unless otherwise approved by the 
     Administrator;
       (3) the Town interferes or allows interference, in any 
     manner, with any aid to navigation, whether located upon the 
     property conveyed under this section or upon any portion of 
     LORAN Station Nantucket retained by the United States, nor 
     hinder activities required for the inspection, operation, and 
     maintenance of any such aid to navigation without the 
     Commandant's express written permission; or
       (4) at least 30 days before the reversion, the 
     Administrator provides written notice to the grantee that 
     property conveyed under this section, or any portion thereof, 
     is needed for national security purposes.
       (d) Real Property License.--Prior to the conveyance of any 
     property under this section, the Commandant may grant a real 
     property license to the Town for the purpose of allowing the 
     Town to enter upon LORAN Station Nantucket and commence 
     construction of a waste water treatment facility and for 
     other site preparation activities.
       (e) Definitions.--For purposes of this section:
       (1) Aid to navigation.--The term ``aid to navigation'' 
     means equipment used for navigation purposes, including but 
     not limited to, a light, antenna, sound signal, electronic 
     and radio navigation equipment and signals, cameras, sensors, 
     or other equipment operated or maintained by the United 
     States.
       (2) Town.--The term ``Town'' includes the successors and 
     assigns of the Town of Nantucket, Massachusetts.
       Sec. 1115. Conveyance of Plum Island Lighthouse, 
     Newburyport, Massachusetts. (a) Authority to Convey.--
       (1) In general.--Notwithstanding any other law, the 
     Administrator of the General Services Administration 
     (Administrator) or the Commandant of the Coast Guard 
     (Commandant), as appropriate, shall convey to the City of 
     Newburyport, Massachusetts (City), without monetary 
     consideration, all right, title, and interest of the United 
     States of America (United States) in and to two certain 
     parcels of land upon which the Plum Island Boat House and the 
     Plum Island Lighthouse (also known as the Newburyport Harbor 
     Light), are situated, respectively, located in Essex County, 
     Massachusetts, together with any improvements thereon in 
     their then current condition.
       (2) Identification of property.--The Administrator or the 
     Commandant, as appropriate, shall identify, describe, and 
     determine the property to be conveyed under this section, 
     including the right to retain all right, title, and interest 
     of the United States to any portion of either parcel 
     described in paragraph (a)(1) of this section. The 
     Administrator or Commandant, as appropriate, may retain all 
     right, title, and interest of the United States in and to any 
     historical artifact, including any lens or lantern, that is 
     associated with and located at the property conveyed under 
     this section at the time of conveyance. Artifacts associated 
     with, but not located at, the property conveyed under this 
     section at the time of conveyance, shall remain the personal 
     property of the United States under the administrative 
     control of the Commandant. No submerged lands shall be 
     conveyed under this section.
       (b) Terms and Conditions of Conveyance.--
       (1) The conveyance of property under this section shall be 
     made subject to any terms and conditions the Administrator or 
     the Commandant, as appropriate, considers necessary, 
     including but not limited to, the reservation of easements 
     and other rights on behalf of the United States, to ensure 
     that--
       (A) the aids to navigation located at property conveyed 
     under this section shall remain the personal property of the 
     United States and continue to be operated and maintained by 
     the United States for as long as needed for navigational 
     purposes;
       (B) there is reserved to the United States the right to 
     remove, relocate, or replace any aid to navigation located 
     upon, or install or construct any aid to navigation upon, 
     property conveyed under this section as may be necessary for 
     navigational purposes;

[[Page 26843]]

       (C) the United States shall have the right to enter 
     property conveyed under this section at any time, without 
     notice, for purposes of operating, maintaining, and 
     inspecting any aid to navigation, for the purposes of 
     exercising any of the rights set forth in paragraph (1)(B) of 
     this subsection, and for the purposes of ingress and egress 
     to any land retained by the United States; and
       (D) the City shall not, without the Commandant's express 
     written permission, interfere or allow interference, in any 
     manner, with any aid to navigation, nor hinder activities 
     required
       (i) for the inspection, operation, and maintenance of any 
     aid to navigation; or
       (ii) for the exercise of any of the rights set forth in 
     paragraph (1)(B) of this subsection.
       (2) The City shall, at its own cost and expense, maintain 
     the property conveyed under this section in a proper, 
     substantial, and workmanlike manner.
       (3) The City shall ensure that the property conveyed is 
     available and accessible to the public, on a reasonable basis 
     for educational, park, recreational, cultural, historic 
     preservation or similar purposes.
       (4) The City shall not be required to maintain any active 
     aid to navigation associated with the property conveyed under 
     this section except for private aids to navigation permitted 
     under 14 U.S.C. Sec.  83.
       (5) All conditions placed with the deed of title for 
     property conveyed under this section shall be construed as 
     covenants running with the land.
       (6) The Administrator or the Commandant, as appropriate, 
     may require such additional terms and conditions with respect 
     to the conveyance of property under this section, as the 
     Administrator or the Commandant considers appropriate to 
     protect the interests of the United States.
       (c) Reversionary Interest.--In addition to any term or 
     condition established pursuant to this section, any property 
     conveyed under this section, at the option of the 
     Administrator, shall revert to the United States and be 
     placed under the administrative control of the Administrator, 
     if--
       (1) the property conveyed under this section, or any part 
     thereof, ceases to be maintained in a manner that ensures its 
     present or future use as a site for an aid to navigation as 
     determined by the Commandant;
       (2) the property conveyed under this section, or any part 
     thereof, ceases to be available and accessible to the public, 
     on a reasonable basis, for educational, park, recreational, 
     cultural, historic preservation or similar purposes; or
       (3) at least 30 days before the reversion, the 
     Administrator provides written notice to the grantee that 
     property conveyed under this section, or any portion thereof, 
     is needed for national security purposes.
       (d) Definitions.--For purposes of this section:
       (1) Aid to navigation.--The term ``aid to navigation'' 
     means equipment used for navigation purposes, including but 
     not limited to, a light, antenna, sound signal, electronic 
     and radio navigation equipment and signals, cameras, sensors, 
     or other equipment operated or maintained by the United 
     States.
       (2) City.--The term ``City'' includes the successors and 
     assigns of the City of Newburyport, Massachusetts.
       Sec. 1116. Transfer of Coast Guard Station Scituate to the 
     National Oceanic and Atmospheric Administration. (a) 
     Authority to Transfer.--
       (1) In general.--The Administrator of the General Services 
     Administration, in consultation with the Commandant, United 
     States Coast Guard, may transfer without consideration 
     administrative jurisdiction, custody, and control over the 
     Federal property known as Coast Guard Station Scituate to the 
     National Oceanic and Atmospheric Administration (hereinafter 
     referred to as ``NOAA'').
       (2) Identification of property.--The Administrator, in 
     consultation with the Commandant, may identify, describe, and 
     determine the property to be transferred under this section.
       (b) Terms of Transfer.--
       (1) The transfer of the property shall be made subject to 
     any conditions and reservations the Commandant considers 
     necessary to ensure that--
       (A) the transfer of the property to NOAA is contingent upon 
     the relocation of Coast Guard Station Scituate to a suitable 
     site;
       (B) there is reserved to the Coast Guard the right to 
     remove, relocate, or replace any aid to navigation located 
     upon, or install any aid to navigation upon, the property 
     transferred under this section as may be necessary for 
     navigational purposes; and
       (C) the Coast Guard shall have the right to enter the 
     property transferred under this section at any time, without 
     notice, for purposes of operating, maintaining, and 
     inspecting any aid to navigation.
       (2) The transfer of the property shall be made subject to 
     the review and acceptance of the property by NOAA.
       (c) Relocation of Station Scituate.--The Coast Guard may--
       (1) lease land, including unimproved or vacant land, for a 
     term not to exceed 20 years, for the purpose of relocating 
     Coast Guard Station Scituate; and
       (2) improve the land leased under this subsection.
       Sec. 1117. Extension of Interim Authority for Dry Bulk 
     Cargo Residue Disposal. (a) Section 415(b)(2) of the Coast 
     Guard Authorization Act of 1998 is amended by striking 
     ``2002'' and inserting ``2004''.
       (b) The Secretary shall conduct a study of the 
     effectiveness of the United States 1997 Enforcement Policy 
     for Cargo Residues on the Great Lakes (``Policy'') by 
     September 30, 2002.
       (c) The Secretary is authorized to promulgate regulations 
     to implement and enforce a program to regulate incidental 
     discharges from vessels of residues of non-hazardous and non-
     toxic dry bulk cargo into the waters of the Great Lakes, 
     which takes into account the finding in the study required 
     under subsection (b). This program shall be consistent with 
     the Policy.
       Sec. 1118. Great Lakes Pilotage Advisory Committee. Section 
     9307 of title 46, United States Code, is amended--
       (1) by amending subparagraph (A) of subsection (b)(2) to 
     read as follows:
       ``(A) The President of each of the 3 Great Lakes pilotage 
     districts, or the President's representative;'';
       (2) by amending subparagraph (E) of subsection (b)(2) to 
     read as follows:
       ``(E) a member with a background in finance or accounting, 
     who--
       ``(i) must have been recommended to the Secretary by a 
     unanimous vote of the other members of the Committee, and
       ``(ii) may be appointed without regard to requirement in 
     paragraph (1) that each member have 5 years of practical 
     experience in maritime operations.'';
       (3) in subsection (C)(2) by striking the second sentence;
       (4) by adding at the end of subsection (d) the following 
     new paragraph:
       ``(3) Any recommendations to the Secretary under subsection 
     (a)(2) must have been approved by at least all but one of the 
     members then serving on the committee.''; and
       (5) in subsection (f)(1) by striking ``September 30, 2003'' 
     and inserting ``September 30, 2005''.
       Sec. 1119. Vessel Escort Operations and Towing Assistance. 
     (a) In General.--Except in the case of a vessel in distress, 
     only a vessel of the United States (as that term is defined 
     in section 2101 of title 46, United States Code) may perform 
     the following vessel escort operations and vessel towing 
     assistance within the navigable waters of the United States:
       (1) Operations or assistance that commences or terminates 
     at a port or place in the United States.
       (2) Operations or assistance required by United States law 
     or regulation.
       (3) Operations provided in whole or in part for the purpose 
     of escorting or assisting a vessel within or through 
     navigation facilities owned, maintained, or operated by the 
     United States Government or the approaches to such 
     facilities, other than facilities operated by the St. 
     Lawrence Seaway Development Corporation on the St. Lawrence 
     River portion of the Seaway.
       (b) Definitions.--Unless otherwise defined by a provision 
     of law or regulation requiring that towing assistance or 
     escort be rendered to vessels transiting United States waters 
     or navigation facilities, for purposes of this section--
       (1) the term ``towing assistance'' means operations by an 
     assisting vessel in direct contact with an assisted vessel 
     (including hull-to-hull, by towline, including if only pre-
     tethered, or made fast to that vessel by 1 or more lines) for 
     purposes of exerting force on the assisted vessel to control 
     or to assist in controlling the movement of the assisted 
     vessel; and
       (2) the term ``escort operations'' means accompanying a 
     vessel for the purpose of providing towing or towing 
     assistance to the vessel.
       Sec. 1120. Notwithstanding any other provision of law, the 
     Commandant of the United States Coast Guard is hereby 
     authorized to utilize $100,000 of the amounts made available 
     for fiscal year 2001 for environmental compliance and 
     restoration of Coast Guard facilities to reimburse the owner 
     of the former Coast Guard lighthouse facility at Cape May, 
     New Jersey, for costs incurred for clean-up of lead 
     contaminated soil at that facility.
       Sec. 1121. Notwithstanding any other provision of law, 
     $2,400,000, to be derived from the Highway Trust Fund, shall 
     be available for planning, development and construction of 
     rural farm-to-market roads in Tulare County, California: 
     Provided, That the non-federal share of such improvements 
     shall be twenty percent.
       Sec. 1122. Notwithstanding any other provision of law, and 
     subject to the availability of funds appropriated 
     specifically for the project, the Coast Guard is authorized 
     to transfer funds in an amount not to exceed $200,000 and 
     project management authority to the Traverse City Area Public 
     School District for the purposes of demolition and removal of 
     the structure commonly known as ``Building 402'' at former 
     Coast Guard property located in Traverse City, Michigan, and 
     associated site work. No such funds shall be transferred 
     until the Coast Guard receives a detailed, fixed price 
     estimate from the School District describing the nature and 
     cost of the work to be performed, and the Coast Guard shall 
     transfer only that amount of funds it and the School District 
     consider necessary to complete the project.
       Sec. 1123. Notwithstanding any other provision of law, for 
     necessary expenses for Alabama A&M University buses and bus 
     facilities, $500,000, to be derived from the Mass Transit 
     Account of the Highway Trust Fund and to remain available 
     until expended.
       Sec. 1124. Notwithstanding any other provision of law, 
     prior to the fiscal year 2002 apportionment of ``Fixed 
     Guideway Modernization'' funds authorized under section 
     5309(a)(1)(E) of Title 49, United States Code, $7,047,502 of 
     funds

[[Page 26844]]

     made available in fiscal year 2002 by section 5338(b) of 49 
     United States Code for the ``Fixed Guideway Modernization'' 
     program shall be distributed by the Federal Transit 
     Administration to an urbanized area over 200,000 that did not 
     receive amounts of fixed guideway modernization formula 
     grants to which such area was lawfully entitled for fiscal 
     years 1999-2001 in view of eligibility determinations made 
     under 49 United States Code Chapter 53 during the six months 
     prior to the effective date of this act: Provided, That such 
     sums shall not reduce a grantee's fiscal year 2002 
     apportionment level of ``Fixed Guideway Modernization'' 
     funds: Provided further, That such sum remain available until 
     expended.
       Sec. 1125. Notwithstanding any other provision of law, 
     Airport Improvement Program Formula Changes provided in 
     Public Law 106-181 and defined in Section 104 of that Act 
     shall be applied regardless of funding levels made available 
     under Section 48103 of title 49, United States Code.
       Sec. 1126. Item number 473 contained in section 1602 of the 
     Transportation Equity Act for the 21st Century (112 Stat. 
     274), relating to Minnesota, is amended by striking ``between 
     I-35W and 24th Avenue to four lanes in Richfield'' and 
     inserting ``reconstruction project from Penn Avenue to 24th 
     Avenue, including the Penn Avenue Bridge over I-494''.
       Sec. 1127. The Secretary of Transportation shall not issue 
     final regulations under section 20153 of title 49, United 
     States Code, before July 1, 2001.
       Sec. 1128. Notwithstanding any other provision of law, in 
     addition to amounts made available in this Act or any other 
     Act, the following sums shall be made available from the 
     Highway Trust Fund (other than the Mass Transit Account):
       $1,700,000 for transportation and community preservation 
     projects along the Main Street Corridor in Houston, Texas;
       $5,000,000 for rehabilitation, repair, and restoration of 
     the historic Stillwater Lift Bridge between Stillwater, 
     Minnesota and Houlton, Wisconsin;
       $1,000,000 for improvements to McClung Road, Boston Street, 
     Larson Street and Whirlpool Drive in the City of LaPorte, 
     Indiana; and
       $1,000,000 for design, environmental mitigation, 
     engineering, and construction of, and improvements to, the US 
     36/Wadsworth interchange (Broomfield interchange) in 
     Broomfield County, Colorado:
     Provided, That the amounts appropriated in this section shall 
     remain available until expended and shall not be subject to, 
     or computed against, any obligation limitation or contract 
     authority set forth in this or any other

                               CHAPTER 12

                    GENERAL SERVICES ADMINISTRATION

                        Real Property Activities


                         Federal Buildings Fund

       For an additional amount to be deposited in, and to be used 
     for the purposes of, the Federal Buildings Fund of the 
     General Services Administration, $2,070,000: Provided, That 
     this amount shall be available for the purpose of renovating 
     and redeveloping portions of the historic Federal building 
     located at 30 North Seventh Street in Terre Haute, Indiana, 
     to accommodate the needs of Federal tenants: Provided 
     further, That use of these funds is subject to authorization 
     including the preparation and approval of a prospectus as 
     required by the Public Buildings Act of 1959, as amended.

                       DEPARTMENT OF THE TREASURY

                     United States Customs Service


 Operations, Maintenance and Procurement, Air and Marine Interdiction 
                                Programs

       For an additional amount of $7,000,000, to remain available 
     until expended, for necessary expenses associated with 
     procurement of two aircraft and related equipment expenses 
     associated with aviation standardization and training at the 
     Customs National Aviation Center in Oklahoma City, Oklahoma: 
     Provided, That none of the funds provided shall be available 
     for obligation until an expenditure plan is submitted for 
     approval to the Committees on Appropriations.

                               CHAPTER 13

                     DEPARTMENT OF VETERANS AFFAIRS

                      Departmental Administration


                      Construction, Minor Projects

       For an additional amount for ``Construction, minor 
     projects'', $8,840,000, to remain available until expended.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                   Community Planning and Development


                EMPOWERMENT ZONES/ENTERPRISE COMMUNITIES

       For an additional amount for ``Empowerment zones and 
     enterprise communities'', $110,000,000, to remain available 
     until expended: Provided, That $185,000,000 shall be 
     available for urban empowerment zones, as authorized by the 
     Taxpayer Relief Act of 1997, including $12,333,333 for each 
     empowerment zone.


                       COMMUNITY DEVELOPMENT FUND

       For an additional amount for ``Community development 
     fund'', $66,128,000 to remain available until September 30, 
     2003.
       The referenced statement of the managers in the seventh 
     undesignated paragraph under this heading in title II of the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     2001 (Public Law 106-377) is deemed to be amended by striking 
     ``West Dallas neighborhoods'' in reference to improvement 
     efforts by the Pleasant Wood/Pleasant Grove Community 
     Development Corporation, and inserting ``the Pleasant Grove 
     area'' in lieu thereof.
       The unobligated amount appropriated in the third paragraph 
     under the heading ``Community development block grants'' in 
     Chapter 8 of title II of the Emergency Supplemental Act, 2000 
     (Public Law 106-246) for a grant to the City of Hamlet, North 
     Carolina for demolition and removal of buildings and 
     equipment destroyed by fire shall remain available until 
     September 30, 2002 for a grant for such purpose to the County 
     of Richmond, North Carolina.
       The seventh paragraph under this heading in title II of 
     Public Law 106-377 is amended by striking ``$292,000,000'' 
     and inserting in lieu thereof $358,128,000'': Provided, That 
     such funds shall be available for grants for the Economic 
     Development Initiative (EDI) to finance a variety of targeted 
     economic investments in accordance with the terms and 
     conditions specified in the statement of managers 
     accompanying this conference report.

                       DEPARTMENT OF THE TREASURY

              Community Development Financial Institutions


              Community Development Financial Institutions

                          Fund Program Account

       Under this heading in Public Law 106-377, strike 
     ``$8,750,000 may be used for administrative expenses,'', and 
     insert ``$9,750,000 may be used for administrative expenses, 
     including administration of the New Markets Tax Credit and 
     Individual Development Accounts,''.

                    Environmental Protection Agency


                         science and technology

       For an additional amount for ``Science and technology'', 
     $1,000,000 for continuation of the South Bronx Air Pollution 
     Study being conducted by New York University.


                 environmental programs and management

       The statement of the managers under this heading in title 
     III of the Departments of Veterans Affairs and Housing and 
     Urban Development, and Independent Agencies Appropriations 
     Act, 2001 (Public Law 106-377) is deemed to be amended by 
     inserting the word ``Valley'' after the words ``San 
     Bernardino'' in reference to a project identified as number 
     104 in such statement of the managers.


                   state and tribal assistance grants

       Grants appropriated under this heading in Public Law 106-74 
     and Public Law 106-377 for drinking water infrastructure 
     needs in the New York City watershed shall be awarded under 
     section 1443(d) of the Safe Drinking Water Act, as amended.
       The referenced statement of the managers under this heading 
     in Public Law 106-377 is deemed to be amended by striking all 
     after the words ``City of Liberty'' in reference to item 
     number 78, and inserting the words ``Town of Versailles, 
     Indiana for wastewater infrastructure improvements''.
       Under this heading in title III of Public Law 106-377, 
     strike ``$335,740,000'' and insert ``$356,370,000'': 
     Provided, That such funds shall be for making grants for the 
     construction of wastewater and water treatment facilities and 
     groundwater protection infrastructure in accordance with the 
     terms and conditions specified for such grants in the 
     statement of managers accompanying Public Law 106-377 and 
     this conference report.

                  Federal Emergency Management Agency


              emergency management planning and assistance

       For an additional amount for ``Emergency management 
     planning and assistance'', $100,000,000, to remain available 
     through September 30, 2001, for programs as authorized by 
     section 33 of the Federal Fire Prevention and Control Act of 
     1974 (15 U.S.C. 2201 et seq.), as amended.

                               CHAPTER 14

                   General Provisions--This Division

       Sec. 1401. H. Con. Res. 234 of the 106th Congress, as 
     adopted by the House of Representatives on November 18, 1999, 
     shall be considered to have been adopted by the Senate.
       Sec. 1402. Section 3003(a)(1) of the Federal Reports 
     Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note) does 
     not apply to any report required to be submitted under any of 
     the following provisions of law:
       (1) Sections 1105(a), 1106(a) and (b), and 1109(a) of title 
     31, United States Code, and any other law relating to the 
     budget of the United States Government.
       (2) The Balanced Budget and Emergency Deficit Control Act 
     of 1985 (2 U.S.C. 900 et seq.).
       (3) Sections 202(e)(1) and (3) of the Congressional Budget 
     Act of 1974 (2 U.S.C. 602(e)(1) and (3)).
       (4) Section 1014(e) of the Congressional Budget and 
     Impoundment Control Act of 1974 (2 U.S.C. 685(e)).
       Sec. 1403. (a) Government-Wide Rescissions.--There is 
     hereby rescinded an amount equal to 0.22 percent of the 
     discretionary budget authority provided (or obligation limit 
     imposed) for fiscal year 2001 in this or any other Act for 
     each department, agency, instrumentality, or entity of the 
     Federal Government, except for those programs, projects, and 
     activities which are specifically exempted elsewhere in this 
     provision: Provided, That this exact reduction percentage 
     shall be applied on a pro rata basis only to each program, 
     project, and activity subject to the rescission.
       (b) Restrictions.--This reduction shall not be applied to 
     the amounts appropriated in Title I of Public Law 106-259: 
     Provided, That this reduction shall not be applied to the 
     amounts appropriated in Division B of Public Law 106-246: 
     Provided further, That this reduction shall not

[[Page 26845]]

     be applied to the amounts appropriated under the Departments 
     of Labor, Health and Human Services, and Education, and 
     Related Agencies Appropriations Act, 2001, as contained in 
     this Act, or in prior Acts.
       (c) Report.--The Director of the Office of Management and 
     Budget shall include in the President's budget submitted for 
     fiscal year 2002 a report specifying the reductions made to 
     each account pursuant to this section.

                               DIVISION B

                                TITLE I

       Sec. 101. Eligibility of Private Organizations Under Child 
     and Adult Care Food Program. (a) Section 17(a)(2)(B) of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1766(a)(2)(B)) is amended by striking ``children for which 
     the'' and inserting ``children, if--
       ``(i) during the period beginning on the date of enactment 
     of this clause and ending on September 30, 2001, at least 25 
     percent of the children served by the organization meet the 
     income eligibility criteria established under section 9(b) 
     for free or reduced price meals; or
       ``(ii) the''.
       (b) Emergency Requirement.--
       (1) In general.--The entire amount necessary to carry out 
     this section shall be available only to the extent that an 
     official budget request for the entire amount, that includes 
     designation of the entire amount of the request as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.
       (2) Designation.--The entire amount necessary to carry out 
     this section is designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of such Act.
       Sec. 102. Summer Food Pilot Projects. (a) Section 18 of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 1769) 
     is amended by adding at the end the following:
       ``(f) Summer Food Pilot Projects.--
       ``(1) Definition of eligible state.--In this subsection, 
     the term `eligible State' means a State in which (based on 
     data available in July 2000)--
       ``(A) the percentage obtained by dividing--
       ``(i) the sum of--

       ``(I) the average daily number of children attending the 
     summer food service program in the State in July 1999; and
       ``(II) the average daily number of children receiving free 
     or reduced price meals under the school lunch program in the 
     State in July 1999; by

       ``(ii) the average daily number of children receiving free 
     or reduced price meals under the school lunch program in the 
     State in March 1999; is less than 50 percent of
       ``(B) the percentage obtained by dividing--
       ``(i) the sum of--

       ``(I) the average daily number of children attending the 
     summer food service program in all States in July 1999; and
       ``(II) the average daily number of children receiving free 
     or reduced price meals under the school lunch program in all 
     States in July 1999; by

       ``(ii) the average daily number of children receiving free 
     or reduced price meals under the school lunch program in all 
     States in March 1999.
       ``(2) Pilot projects.--During the period of fiscal years 
     2001 through 2003, the Secretary shall carry out a summer 
     food pilot project in each eligible State to increase the 
     number of children participating in the summer food service 
     program in the State.
       ``(3) Support levels for service institutions.--
       ``(A) Food service.--Under the pilot project, a service 
     institution (other than a service institution described in 
     section 13(a)(7)) in an eligible State shall receive the 
     maximum amounts for food service under section 13(b)(1) 
     without regard to the requirement under section 13(b)(1)(A) 
     that payments shall equal the full cost of food service 
     operations.
       ``(B) Administrative costs.--Under the pilot project, a 
     service institution (other than a service institution 
     described in section 13(a)(7)) in an eligible State shall 
     receive the maximum amounts for administrative costs 
     determined by the Secretary under section 13(b)(4) without 
     regard to the requirement under section 13(b)(3) that 
     payments to service institutions shall equal the full amount 
     of State-approved administrative costs incurred.
       ``(C) Compliance.--A service institution that receives 
     assistance under this subsection shall comply with all 
     provisions of section 13 other than subsections (b)(1)(A) and 
     (b)(3) of section 13.
       ``(4) Maintenance of effort.--Expenditures of funds from 
     State and local sources for maintenance of a summer food 
     service program shall not be diminished as a result of 
     assistance from the Secretary received under this subsection.
       ``(5) Evaluation of pilot projects.--
       ``(A) In general.--The Secretary, acting through the 
     Administrator of the Food and Nutrition Service, shall 
     conduct an evaluation of the pilot project.
       ``(B) Content.--An evaluation under this paragraph shall 
     describe--
       ``(i) any effect on participation by children and service 
     institutions in the summer food service program in the 
     eligible State in which the pilot project is carried out;
       ``(ii) any effect of the pilot project on the quality of 
     the meals and supplements served in the eligible State in 
     which the pilot project is carried out; and
       ``(iii) any effect of the pilot project on program 
     integrity.
       ``(6) Reports.--
       ``(A) Interim report.--Not later than December 1, 2002, the 
     Secretary shall submit to the Committee on Education and the 
     Workforce of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate an 
     interim report that describes the status of, and any progress 
     made by, each pilot project being carried out under this 
     subsection as of the date of submission of the report.
       ``(B) Final report.--Not later than April 30, 2004, the 
     Secretary shall submit to the Committee on Education and the 
     Workforce of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate a final 
     report that includes--
       ``(i) the evaluations completed by the Secretary under 
     paragraph (5); and
       ``(ii) any recommendations of the Secretary concerning the 
     pilot projects.''.
       (b) Emergency Requirement.--
       (1) In general.--The entire amount necessary to carry out 
     this section shall be available only to the extent that an 
     official budget request for the entire amount, that includes 
     designation of the entire amount of the request as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.
       (2) Designation.--The entire amount necessary to carry out 
     this section is designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of such Act.
       Sec. 103. (a) In General.--The Secretary of the Interior 
     shall conduct a feasibility study for a Sacramento River, 
     California, diversion project that is consistent with the 
     Water Forum Agreement among the members of the Sacramento, 
     California, Water Forum dated April 24, 2000, and that 
     considers--
       (1) consolidation of several of the Natomas Central Mutual 
     Water Company's diversions;
       (2) upgrading fish screens at the consolidated diversion;
       (3) the diversion of 35,000 acre feet of water by the 
     Placer County Water Agency;
       (4) the diversion of 29,000 acre feet of water for delivery 
     to the Northridge Water District;
       (5) the potential to accommodate other diversions of water 
     from the Sacramento River, subject to additional negotiations 
     and agreement among Water Forum signatories and potentially 
     affected parties upstream on the Sacramento River; and
       (6) an inter-tie between the diversions referred to in 
     paragraphs (3), (4), and (5) with the Northridge Water 
     District's pipeline that delivers water from the American 
     River.
       (b) Required Components.--The feasibility study shall 
     include--
       (1) the development of a range of reasonable options;
       (2) an environmental evaluation; and
       (3) consultation with Federal and State resource management 
     agencies regarding potential impacts and mitigation measures.
       (c) Water Supply Impact Alternatives.--The study authorized 
     by this section shall include a range of alternatives, all of 
     which would investigate options that could reduce to 
     insignificance any water supply impact on water users in the 
     Sacramento River watershed, including Central Valley Project 
     contractors, from any delivery of water out of the Sacramento 
     River as referenced in subsection (a). In evaluating the 
     alternatives, the study shall consider water supply 
     alternatives that would increase water supply for, or in, the 
     Sacramento River watershed. The study should be coordinated 
     with the CALFED program and take advantage of information 
     already developed within that program to investigate water 
     supply increase alternatives. Where the alternatives 
     evaluated are in addition to or different from the existing 
     CALFED alternatives, such information should be clearly 
     identified.
       (d) Habitat Management Planning Grants.--The Secretary of 
     the Interior, subject to the availability of appropriations, 
     is authorized and directed to provide grants to support local 
     habitat management planning efforts undertaken as part of the 
     consultation described in subsection (b)(3) in the form of 
     matching funds up to $5,000,000.
       (e) Report.--The Secretary of the Interior shall provide a 
     report to the Committee on Resources of the United States 
     House of Representatives and to the Committee on Energy and 
     Natural Resources of the United States Senate within twenty-
     four months from the date of enactment of this Act on the 
     results of the study identified in subsection (a).
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of the Interior to carry 
     out this section $10,000,000, which may remain available 
     until expended, of which--
       (1) $5,000,000 shall be for the feasibility study under 
     subsection (a); and
       (2) $5,000,000 shall be for the habitat management planning 
     grants under subsection (d).
       (g) Limitation on Construction.--This section does not and 
     shall not be interpreted to authorize construction of any 
     facilities.
       Sec. 104. Ten- and Fifteen-Mile Bayous, Arkansas. The 
     project for flood control, Saint Francis River Basin, 
     Missouri and Arkansas, authorized by section 204 of the Flood 
     Control Act of 1950 (64 Stat. 172), is modified to expand the 
     boundaries of the project to include Ten- and Fifteen-Mile 
     Bayous near West Memphis, Arkansas. Notwithstanding section 
     103(f) of the Water Resources Development Act of 1986 (100 
     Stat. 4086), the flood control work at Ten- and

[[Page 26846]]

     Fifteen-Mile Bayous shall not be considered separable 
     elements of the project.
       Sec. 105. In accordance with section 102(l) of the Water 
     Resources Development Act of 1990 (104 Stat. 4613), the 
     Secretary of the Army, acting through the Chief of Engineers, 
     is authorized and directed to enter into an agreement to 
     permit the City of Alton, Illinois to construct the 
     authorized recreational facilities and to reimburse the City 
     of Alton, Illinois for the Federal share of these cost-shared 
     recreation facilities as usable segments are completed.
       Sec. 106. Truckee Watershed Reclamation Project. (a) 
     Authorization.--The Secretary of the Interior, in cooperation 
     with Washoe County, Nevada, may participate in the design, 
     planning, and construction of the Truckee watershed 
     reclamation project, consisting of the North Valley reuse 
     project and the Spanish Springs Valley septic conversion 
     project, to reclaim and reuse wastewater (including degraded 
     groundwater) within and without the service area of Washoe 
     County, Nevada.
       (b) Cost Share.--The Federal share of the cost of the 
     project described in subsection (a) shall not exceed 25 
     percent of the total cost of the project.
       (c) Limitation.--Funds provided by the Secretary shall not 
     be used for the operation or maintenance of the project 
     described in subsection (a).
       (d) Reclamation Wastewater and Groundwater Study and 
     Facilities Act.--
       (1) Design, planning, and construction.--Design, planning, 
     and construction of the project described in subsection (a) 
     shall be in accordance with, and subject to the limitations 
     contained in, the Reclamation Wastewater and Groundwater 
     Study and Facilities Act (43 U.S.C. 390h et seq.).
       (2) Funding.--Funds made available under section 1631 of 
     the Reclamation Wastewater and Groundwater Study and 
     Facilities Act (43 U.S.C. 390h-13) may be used to pay the 
     Federal share of the cost of the project.
       Sec. 107. The project for navigation, Tampa Harbor, 
     Florida, authorized by section 4 of the Rivers and Harbors 
     Act of September 22, 1922 (42 Stat. 1042), is modified to 
     authorize the Secretary of the Army to deepen and widen the 
     Alafia Channel in accordance with the plans described in the 
     Draft Feasibility Report, Alafia River, Tampa Harbor, 
     Florida, dated May 2000, at a total cost of $61,592,000, with 
     an estimated Federal cost of $39,621,000 and an estimated 
     non-Federal cost of $21,971,000.
       Sec. 108. Environmental Infrastructure. (a) Technical, 
     Planning, and Design Assistance.--Section 219(c) of the Water 
     Resources Development Act of 1992 (106 Stat. 4835) is amended 
     by adding at the end the following:
       ``(19)  Marana, arizona.--Wastewater treatment and 
     distribution infrastructure, Marana, Arizona.
       ``(20) Eastern arkansas enterprise community, arkansas.--
     Water-related infrastructure, Eastern Arkansas Enterprise 
     Community, Cross, Lee, Monroe, and St. Francis Counties, 
     Arkansas.
       ``(21) Chino hills, california.--Storm water and sewage 
     collection infrastructure, Chino Hills, California.
       ``(22) Clear lake basin, california.--Water-related 
     infrastructure and resource protection, Clear Lake Basin, 
     California.
       ``(23) Desert hot springs, california.--Resource protection 
     and wastewater infrastructure, Desert Hot Springs, 
     California.
       ``(24) Eastern municipal water district, california.--
     Regional water-related infrastructure, Eastern Municipal 
     Water District, California.
       ``(25) Huntington beach, california.--Water supply and 
     wastewater infrastructure, Huntington Beach, California.
       ``(26) Inglewood, california.--Water infrastructure, 
     Inglewood, California.
       ``(27) Los osos community service district, california.--
     Wastewater infrastructure, Los Osos Community Service 
     District, California.
       ``(28) Norwalk, california.--Water-related infrastructure, 
     Norwalk, California.
       ``(29) Key biscayne, florida.--Sanitary sewer 
     infrastructure, Key Biscayne, Florida.
       ``(30) South tampa, florida.--Water supply and aquifer 
     storage and recovery infrastructure, South Tampa, Florida.
       ``(31) Fort wayne, indiana.--Combined sewer overflow 
     infrastructure and wetlands protection, Fort Wayne, Indiana.
       ``(32) Indianapolis, indiana.--Combined sewer overflow 
     infrastructure, Indianapolis, Indiana.
       ``(33) St. charles, st. bernard, and plaquemines parishes, 
     louisiana.--Water and wastewater infrastructure, St. Charles, 
     St. Bernard, and Plaquemines Parishes, Louisiana.
       ``(34) St. john the baptist and st. james parishes, 
     louisiana.--Water and sewer improvements, St. John the 
     Baptist and St. James Parishes, Louisiana.
       ``(35) Union county, north carolina.--Water infrastructure, 
     Union County, North Carolina.
       ``(36) Hood river, oregon.--Water transmission 
     infrastructure, Hood River, Oregon.
       ``(37) Medford, oregon.--Sewer collection infrastructure, 
     Medford, Oregon.
       ``(38) Portland, oregon.--Water infrastructure and resource 
     protection, Portland, Oregon.
       ``(39) Coudersport, pennsylvania.--Sewer system extensions 
     and improvements, Coudersport, Pennsylvania.
       ``(40) Park city, utah.--Water supply infrastructure, Park 
     City, Utah.
       (b) Authorization of Appropriations for Technical, 
     Planning, and Design Assistance.--Section 219(d) of the Water 
     Resources Development Act of 1992 (106 Stat. 4836) is amended 
     by striking ``$5,000,000'' and inserting ``$30,000,000''.
       (c) Modification of Authorizations for Environmental 
     Projects.--Section 219 of the Water Resources Development Act 
     of 1992 (106 Stat. 4835; 106 Stat. 3757; 113 Stat. 334) is 
     amended--
       (1) in subsection (e)(6) by striking ``$20,000,000'' and 
     inserting ``$30,000,000'';
       (2) in subsection (f)(4) by striking ``$15,000,000'' and 
     inserting ``$35,000,000'';
       (3) in subsection (f)(21) by striking ``$10,000,000'' and 
     inserting ``$20,000,000'';
       (4) in subsection (f)(25) by striking ``$5,000,000'' and 
     inserting ``$15,000,000'';
       (5) in subsection (f)(30) by striking ``$10,000,000'' and 
     inserting ``$20,000,000'';
       (6) in subsection (f)(43) by striking ``$15,000,000'' and 
     inserting ``$35,000,000''.
       (d) Additional Assistance for Critical Resource Projects.--
     Section 219(f) of the Water Resources Development Act of 1992 
     (106 Stat. 4835; 113 Stat. 335) is amended by adding at the 
     end the following:
       ``(45) Washington, d.c., and maryland.--$15,000,000 for the 
     project described in subsection (c)(1), modified to include 
     measures to eliminate or control combined sewer overflows in 
     the Anacostia River watershed.
       ``(46) Duck river, cullman, alabama.--$5,000,000 for water 
     supply infrastructure, Duck River, Cullman, Alabama.
       ``(47) Union county, arkansas.--$52,000,000 for water 
     supply infrastructure, including facilities for withdrawal, 
     treatment, and distribution, Union County, Arkansas.
       ``(48) Cambria, california.--$10,300,000 for desalination 
     infrastructure, Cambria, California.
       ``(49) Los angeles harbor/terminal island, california.--
     $6,500,000 for wastewater recycling infrastructure, Los 
     Angeles Harbor/Terminal Island, California.
       ``(50) North valley region, lancaster, california.--
     $14,500,000 for water infrastructure, North Valley Region, 
     Lancaster, California.
       ``(51) San diego county, california.--$10,000,000 for 
     water-related infrastructure, San Diego County, California.
       ``(52) South perris, california.--$25,000,000 for water 
     supply desalination infrastructure, South Perris, California.
       ``(53) Aurora, illinois.--$8,000,000 for wastewater 
     infrastructure to reduce or eliminate combined sewer 
     overflows, Aurora, Illinois.
       ``(54) Cook county, illinois.--$35,000,000 for water-
     related infrastructure and resource protection and 
     development, Cook County, Illinois.
       ``(55) Madison and st. clair counties, illinois.--
     $10,000,000 for water and wastewater assistance, Madison and 
     St. Clair Counties, Illinois.
       ``(56) Iberia parish, louisiana.--$5,000,000 for water and 
     wastewater infrastructure, Iberia Parish, Louisiana.
       ``(57) Kenner, louisiana.--$5,000,000 for wastewater 
     infrastructure, Kenner, Louisiana.
       ``(58) Benton harbor, michigan.--$1,500,000 for water 
     related infrastructure, City of Benton Harbor, Michigan.''
       ``(59) Genesee county, michigan.--$6,700,000 for wastewater 
     infrastructure assistance to reduce or eliminate sewer 
     overflows, Genessee County, Michigan.
       ``(60) Negaunee, michigan.--$10,000,000 for wastewater 
     infrastructure assistance, City of Negaunee, Michigan.''.
       ``(61) Garrison and kathio township, minnesota.--
     $11,000,000 for a wastewater infrastructure project for the 
     city of Garrison and Kathio Township, Minnesota.
       ``(62) Newton, new jersey.--$7,000,000 for water filtration 
     infrastructure, Newton, New Jersey.
       ``(63) Liverpool, new york.--$2,000,000 for water 
     infrastructure, including a pump station, Liverpool, New 
     York.
       ``(64) Stanly county, north carolina.--$8,900,000 for 
     wastewater infrastructure, Stanly County, North Carolina.
       ``(65) Yukon, oklahoma.--$5,500,000 for water-related 
     infrastructure, including wells, booster stations, storage 
     tanks, and transmission lines, Yukon, Oklahoma.
       ``(66) Allegheny county, pennsylvania.--$20,000,000 for 
     water-related environmental infrastructure, Allegheny County, 
     Pennsylvania.
       ``(67) Mount joy township and conewago township, 
     pennsylvania.--$8,300,000 for water and wastewater 
     infrastructure, Mount Joy Township and Conewago Township, 
     Pennsylvania.
       ``(68) Phoenixville borough, chester county, 
     pennsylvania.--$2,400,000 for water and sewer infrastructure, 
     Phoenixville Borough, Chester County, Pennsylvania.
       ``(69) Titusville, pennsylvania.--$7,300,000 for storm 
     water separation and treatment plant upgrades, Titusville, 
     Pennsylvania.
       ``(70) Washington, greene, westmoreland, and fayette 
     counties, pennsylvania.--$8,000,000 for water and wastewater 
     infrastructure, Washington, Greene, Westmoreland, and Fayette 
     Counties, Pennsylvania.''.
       Sec. 109. Florida Keys Water Quality Improvements. (a) In 
     General.--In coordination with the Florida Keys Aqueduct 
     Authority, appropriate agencies of municipalities of Monroe 
     County, Florida, and other appropriate public agencies of the 
     State of Florida or Monroe County, the Secretary of the Army 
     may provide technical and financial assistance to carry out 
     projects for the planning, design, and construction of 
     treatment works to improve water quality in the Florida Keys 
     National Marine Sanctuary.

[[Page 26847]]

       (b) Criteria for Projects.--Before entering into a 
     cooperation agreement to provide assistance with respect to a 
     project under this section, the Secretary shall ensure that--
       (1) the non-Federal sponsor has completed adequate planning 
     and design activities, as applicable;
       (2) the non-Federal sponsor has completed a financial plan 
     identifying sources of non-Federal funding for the project;
       (3) the project complies with--
       (A) applicable growth management ordinances of Monroe 
     County, Florida;
       (B) applicable agreements between Monroe County, Florida, 
     and the State of Florida to manage growth in Monroe County, 
     Florida; and
       (C) applicable water quality standards; and
       (4) the project is consistent with the master wastewater 
     and stormwater plans for Monroe County, Florida.
       (c) Consideration.--In selecting projects under subsection 
     (a), the Secretary shall consider whether a project will have 
     substantial water quality benefits relative to other projects 
     under consideration.
       (d) Consultation.--In carrying out this section, the 
     Secretary shall consult with--
       (1) the Water Quality Steering Committee established under 
     section 8(d)(2)(A) of the Florida Keys National Marine 
     Sanctuary and Protection Act (106 Stat. 5054);
       (2) the South Florida Ecosystem Restoration Task Force 
     established by section 528(f) of the Water Resources 
     Development Act of 1996 (110 Stat. 3771-3773);
       (3) the Commission on the Everglades established by 
     executive order of the Governor of the State of Florida; and
       (4) other appropriate State and local government officials.
       (e) Non-Federal Share.--
       (1) In general.--The non-Federal share of the cost of a 
     project carried out under this section shall be 35 percent.
       (2) Credit.--
       (A) In general.--The Secretary may provide the non-Federal 
     interest credit toward cash contributions required--
       (i) before and during the construction of the project, for 
     the costs of planning, engineering, and design, and for the 
     construction management work that is performed by the non-
     Federal interest and that the Secretary determines is 
     necessary to implement the project; and
       (ii) during the construction of the project, for the 
     construction that the non-Federal interest carries out on 
     behalf of the Secretary and that the Secretary determines is 
     necessary to carry out the project.
       (B) Treatment of credit between projects.--Any credit 
     provided under this paragraph may be carried over between 
     authorized projects.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $100,000,000. 
     Such sums shall remain available until expended.
       Sec. 110. San Gabriel Basin, California. (a) San Gabriel 
     Basin Restoration.--
       (1) Establishment of fund.--There shall be established 
     within the Treasury of the United States an interest bearing 
     account to be known as the San Gabriel Basin Restoration Fund 
     (in this section referred to as the ``Restoration Fund'').
       (2) Administration of fund.--The Restoration Fund shall be 
     administered by the Secretary of the Army, in cooperation 
     with the San Gabriel Basin Water Quality Authority or its 
     successor agency.
       (3) Purposes of fund.--
       (A) In general.--Subject to subparagraph (B), the amounts 
     in the Restoration Fund, including interest accrued, shall be 
     utilized by the Secretary--
       (i) to design and construct water quality projects to be 
     administered by the San Gabriel Basin Water Quality Authority 
     and the Central Basin Water Quality Project to be 
     administered by the Central Basin Municipal Water District; 
     and
       (ii) to operate and maintain any project constructed under 
     this section for such period as the Secretary determines, but 
     not to exceed 10 years, following the initial date of 
     operation of the project.
       (B) Cost-sharing limitation.--
       (i) In general.--The Secretary may not obligate any funds 
     appropriated to the Restoration Fund in a fiscal year until 
     the Secretary has deposited in the Fund an amount provided by 
     non-Federal interests sufficient to ensure that at least 35 
     percent of any funds obligated by the Secretary are from 
     funds provided to the Secretary by the non-Federal interests.
       (ii) Non-federal responsibility.--The San Gabriel Basin 
     Water Quality Authority shall be responsible for providing 
     the non-Federal amount required by clause (i). The State of 
     California, local government agencies, and private entities 
     may provide all or any portion of such amount.
       (b) Compliance With Applicable Law.--In carrying out the 
     activities described in this section, the Secretary shall 
     comply with any applicable Federal and State laws.
       (c) Relationship to Other Activities.--Nothing in this 
     section shall be construed to affect other Federal or State 
     authorities that are being used or may be used to facilitate 
     the cleanup and protection of the San Gabriel and Central 
     groundwater basins. In carrying out the activities described 
     in this section, the Secretary shall integrate such 
     activities with ongoing Federal and State projects and 
     activities. None of the funds made available for such 
     activities pursuant to this section shall be counted against 
     any Federal authorization ceiling established for any 
     previously authorized Federal projects or activities.
       (d) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     the Restoration Fund established under subsection (a) 
     $85,000,000. Such funds shall remain available until 
     expended.
       (2) Set-aside.--Of the amounts appropriated under paragraph 
     (1), no more than $10,000,000 shall be available to carry out 
     the Central Basin Water Quality Project.
       (e) Adjustment.--Of the $25,000,000 made available for San 
     Gabriel Basin Groundwater Restoration, California, under the 
     heading ``Construction, General'' in title I of the Energy 
     and Water Development Appropriations Act, 2001--
       (1) $2,000,000 shall be available only for studies and 
     other investigative activities and planning and design of 
     projects determined by the Secretary to offer a long-term 
     solution to the problem of groundwater contamination caused 
     by perchlorates at sites located in the city of Santa 
     Clarita, California; and
       (2) $23,000,000 shall be deposited in the Restoration Fund, 
     of which $4,000,000 shall be used for remediation in the 
     Central Basin, California.
       Sec. 111. Perchlorate. (a) In General.--The Secretary of 
     the Army, in cooperation with Federal, State, and local 
     government agencies, may participate in studies and other 
     investigative activities and in the planning and design of 
     projects determined by the Secretary to offer a long-term 
     solution to the problem of groundwater contamination caused 
     by perchlorates.
       (b) Investigations and Projects.--
       (1) Bosque and leon rivers.--The Secretary, in coordination 
     with other Federal agencies and the Brazos River Authority, 
     shall participate under subsection (a) in investigations and 
     projects in the Bosque and Leon River watersheds in Texas to 
     assess the impact of the perchlorate associated with the 
     former Naval ``Weapons Industrial Reserve Plant'' at 
     McGregor, Texas.
       (2) Caddo lake.--The Secretary, in coordination with other 
     Federal agencies and the Northeast Texas Municipal Water 
     District, shall participate under subsection (a) in 
     investigations and projects relating to perchlorate 
     contamination in Caddo Lake, Texas.
       (3) Eastern santa clara basin.--The Secretary, in 
     coordination with other Federal, State, and local government 
     agencies, shall participate under subsection (a) in 
     investigations and projects related to sites that are sources 
     of perchlorates and that are located in the city of Santa 
     Clarita, California.
       (c) Authorization of Appropriations.--For the purposes of 
     carrying out this section, there is authorized to be 
     appropriated to the Secretary $25,000,000, of which not to 
     exceed $8,000,000 shall be available to carry out subsection 
     (b)(1), not to exceed $3,000,000 shall be available to carry 
     out subsection (b)(2), and not to exceed $7,000,000 shall be 
     available to carry out subsection (b)(3).
       Sec. 112. Wet Weather Water Quality. (a) Combined Sewer 
     Overflows.--Section 402 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1342) is amended by adding at the end 
     the following:
       ``(q) Combined Sewer Overflows.--
       ``(1) Requirement for permits, orders, and decrees.--Each 
     permit, order, or decree issued pursuant to this Act after 
     the date of enactment of this subsection for a discharge from 
     a municipal combined storm and sanitary sewer shall conform 
     to the Combined Sewer Overflow Control Policy signed by the 
     Administrator on April 11, 1994 (in this subsection referred 
     to as the `CSO control policy').
       ``(2) Water quality and designated use review guidance.--
     Not later than July 31, 2001, and after providing notice and 
     opportunity for public comment, the Administrator shall issue 
     guidance to facilitate the conduct of water quality and 
     designated use reviews for municipal combined sewer overflow 
     receiving waters.
       ``(3) Report.--Not later than September 1, 2001, the 
     Administrator shall transmit to Congress a report on the 
     progress made by the Environmental Protection Agency, States, 
     and municipalities in implementing and enforcing the CSO 
     control policy.''.
       (b) Wet Weather Pilot Program.--Title I of the Federal 
     Water Pollution Control Act (33 U.S.C. 1251 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 121. WET WEATHER WATERSHED PILOT PROJECTS.

       ``(a) In General.--The Administrator, in coordination with 
     the States, may provide technical assistance and grants for 
     treatment works to carry out pilot projects relating to the 
     following areas of wet weather discharge control:
       ``(1) Watershed management of wet weather discharges.--The 
     management of municipal combined sewer overflows, sanitary 
     sewer overflows, and stormwater discharges, on an integrated 
     watershed or subwatershed basis for the purpose of 
     demonstrating the effectiveness of a unified wet weather 
     approach.
       ``(2) Stormwater best management practices.--The control of 
     pollutants from municipal separate storm sewer systems for 
     the purpose of demonstrating and determining controls that 
     are cost-effective and that use innovative technologies in 
     reducing such pollutants from stormwater discharges.
       ``(b) Administration.--The Administrator, in coordination 
     with the States, shall provide municipalities participating 
     in a pilot project under this section the ability to engage 
     in innovative practices, including the ability to unify 
     separate

[[Page 26848]]

     wet weather control efforts under a single permit.
       ``(c) Funding.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section $10,000,000 for fiscal year 2002, 
     $15,000,000 for fiscal year 2003, and $20,000,000 for fiscal 
     year 2004. Such funds shall remain available until expended.
       ``(2) Stormwater.--The Administrator shall make available 
     not less than 20 percent of amounts appropriated for a fiscal 
     year pursuant to this subsection to carry out the purposes of 
     subsection (a)(2).
       ``(3) Administrative expenses.--The Administrator may 
     retain not to exceed 4 percent of any amounts appropriated 
     for a fiscal year pursuant to this subsection for the 
     reasonable and necessary costs of administering this section.
       ``(d) Report to Congress.--Not later than 5 years after the 
     date of enactment of this section, the Administrator shall 
     transmit to Congress a report on the results of the pilot 
     projects conducted under this section and their possible 
     application nationwide.''.
       (c) Sewer Overflow Control Grants.--Title II of the Federal 
     Water Pollution Control Act (33 U.S.C. 1342 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 221. SEWER OVERFLOW CONTROL GRANTS.

       ``(a) In General.--In any fiscal year in which the 
     Administrator has available for obligation at least 
     $1,350,000,000 for the purposes of section 601--
       ``(1) the Administrator may make grants to States for the 
     purpose of providing grants to a municipality or municipal 
     entity for planning, design, and construction of treatment 
     works to intercept, transport, control, or treat municipal 
     combined sewer overflows and sanitary sewer overflows; and
       ``(2) subject to subsection (g), the Administrator may make 
     a direct grant to a municipality or municipal entity for the 
     purposes described in paragraph (1).
       ``(b) Prioritization.--In selecting from among 
     municipalities applying for grants under subsection (a), a 
     State or the Administrator shall give priority to an 
     applicant that--
       ``(1) is a municipality that is a financially distressed 
     community under subsection (c);
       ``(2) has implemented or is complying with an 
     implementation schedule for the 9 minimum controls specified 
     in the CSO control policy referred to in section 402(q)(1) 
     and has begun implementing a long-term municipal combined 
     sewer overflow control plan or a separate sanitary sewer 
     overflow control plan; or
       ``(3) is requesting a grant for a project that is on a 
     State's intended use plan pursuant to section 606(c); or
       ``(4) is an Alaska Native Village.
       ``(c) Financially Distressed Community.--
       ``(1) Definition.--In subsection (b), the term `financially 
     distressed community' means a community that meets 
     affordability criteria established by the State in which the 
     community is located, if such criteria are developed after 
     public review and comment.
       ``(2) Consideration of impact on water and sewer rates.--In 
     determining if a community is a distressed community for the 
     purposes of subsection (b), the State shall consider, among 
     other factors, the extent to which the rate of growth of a 
     community's tax base has been historically slow such that 
     implementing a plan described in subsection (b)(2) would 
     result in a significant increase in any water or sewer rate 
     charged by the community's publicly owned wastewater 
     treatment facility.
       ``(3) Information to assist states.--The Administrator may 
     publish information to assist States in establishing 
     affordability criteria under paragraph (1).
       ``(d) Cost Sharing.--The Federal share of the cost of 
     activities carried out using amounts from a grant made under 
     subsection (a) shall be not less than 55 percent of the cost. 
     The non-Federal share of the cost may include, in any amount, 
     public and private funds and in-kind services, and may 
     include, notwithstanding section 603(h), financial 
     assistance, including loans, from a State water pollution 
     control revolving fund.
       ``(e) Administrative Reporting Requirements.--If a project 
     receives grant assistance under subsection (a) and loan 
     assistance from a State water pollution control revolving 
     fund and the loan assistance is for 15 percent or more of the 
     cost of the project, the project may be administered in 
     accordance with State water pollution control revolving fund 
     administrative reporting requirements for the purposes of 
     streamlining such requirements.
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $750,000,000 for 
     each of fiscal years 2002 and 2003. Such sums shall remain 
     available until expended.
       ``(g) Allocation of Funds.--
       ``(1) Fiscal year 2002.--Subject to subsection (h), the 
     Administrator shall use the amounts appropriated to carry out 
     this section for fiscal year 2002 for making grants to 
     municipalities and municipal entities under subsection 
     (a)(2), in accordance with the criteria set forth in 
     subsection (b).
       ``(2) Fiscal year 2003.--Subject to subsection (h), the 
     Administrator shall use the amounts appropriated to carry out 
     this section for fiscal year 2003 as follows:
       ``(A) Not to exceed $250,000,000 for making grants to 
     municipalities and municipal entities under subsection 
     (a)(2), in accordance with the criteria set forth in 
     subsection (b).
       ``(B) All remaining amounts for making grants to States 
     under subsection (a)(1), in accordance with a formula to be 
     established by the Administrator, after providing notice and 
     an opportunity for public comment, that allocates to each 
     State a proportional share of such amounts based on the total 
     needs of the State for municipal combined sewer overflow 
     controls and sanitary sewer overflow controls identified in 
     the most recent survey conducted pursuant to section 
     516(b)(1).
       ``(h) Administrative Expenses.--Of the amounts appropriated 
     to carry out this section for each fiscal year--
       ``(1) the Administrator may retain an amount not to exceed 
     1 percent for the reasonable and necessary costs of 
     administering this section; and
       ``(2) the Administrator, or a State, may retain an amount 
     not to exceed 4 percent of any grant made to a municipality 
     or municipal entity under subsection (a), for the reasonable 
     and necessary costs of administering the grant.
       ``(i) Reports.--Not later than December 31, 2003, and 
     periodically thereafter, the Administrator shall transmit to 
     Congress a report containing recommended funding levels for 
     grants under this section. The recommended funding levels 
     shall be sufficient to ensure the continued expeditious 
     implementation of municipal combined sewer overflow and 
     sanitary sewer overflow controls nationwide.''.
       (d) Information on CSOS and SSOS.--
       (1) Report to congress.--Not later than 3 years after the 
     date of enactment of this Act, the Administrator of the 
     Environmental Protection Agency shall transmit to Congress a 
     report summarizing--
       (A) the extent of the human health and environmental 
     impacts caused by municipal combined sewer overflows and 
     sanitary sewer overflows, including the location of 
     discharges causing such impacts, the volume of pollutants 
     discharged, and the constituents discharged;
       (B) the resources spent by municipalities to address these 
     impacts; and
       (C) an evaluation of the technologies used by 
     municipalities to address these impacts.
       (2) Technology clearinghouse.--After transmitting a report 
     under paragraph (1), the Administrator shall maintain a 
     clearinghouse of cost-effective and efficient technologies 
     for addressing human health and environmental impacts due to 
     municipal combined sewer overflows and sanitary sewer 
     overflows.
       Sec. 113. Fish Passage Devices at New Savannah Bluff Lock 
     and Dam, South Carolina. Section 348(l)(2) of the Water 
     Resources Development Act of 2000 is amended--
       (1) in subparagraph (A), by striking ``Dam, at Federal 
     expense of an estimated $5,300,000'' and inserting ``Dam and 
     construct appropriate fish passage devices at the Dam, at 
     Federal expense''; and
       (2) in subparagraph (B), by striking ``after repair and 
     rehabilitation,'' and inserting ``after carrying out 
     subparagraph (A),''.
       Sec. 114. (a) Extinguishment of Reversionary Interests and 
     Use Restrictions.--With respect to the lands described in the 
     deed described in subsection (b)--
       (1) the reversionary interests and the use restrictions 
     relating to port or industrial purposes are extinguished;
       (2) the human habitation or other building structure use 
     restriction is extinguished in each area where the elevation 
     is above the standard project flood elevation; and
       (3) the use of fill material to raise areas above the 
     standard project flood elevation, without increasing the risk 
     of flooding in or outside of the floodplain, is authorized, 
     except in any area constituting wetland for which a permit 
     under section 404 of the Federal Water Pollution Control Act 
     (33 U.S.C. 1344) would be required.
       (b) Affected Deed.--The deed referred to is the deed 
     recorded October 17, 1967, in book 291, page 148, Deed of 
     Records of Umatilla County, Oregon, executed by the United 
     States.
       Sec. 115. Murrieta Creek, California. Section 101(b)(6) of 
     the Water Resources Development Act of 2000 is repealed.
       Sec. 116. Penn Mine, Calaveras County, California. (a) In 
     General.--The Secretary of the Army shall reimburse East Bay 
     Municipal Water District for the project for aquatic 
     ecosystem restoration, Penn Mine, Calaveras County, 
     California, carried out under section 206 of the Water 
     Resources Development Act of 1996 (33 U.S.C. 2330), 
     $4,100,000 for the Federal share of costs incurred by East 
     Bay Municipal Utility District for work carried out by East 
     Bay Municipal Utility District for the project. Such amounts 
     shall be made available within 90 days of enactment of this 
     provision.
       (b) Source of Funding.--Reimbursement under subsection (a) 
     shall be from amounts appropriated before the date of 
     enactment of this Act for the project described in subsection 
     (a).
       Sec. 117. The project for flood control, Greers Ferry Lake, 
     Arkansas, authorized by the Rivers and Harbors Act of June 
     28, 1938 (52 Stat. 1218), is modified to authorize the 
     Secretary of the Army to construct intake facilities for the 
     benefit of Lonoke and White Counties, Arkansas.
       Sec. 118. The project for flood control, Chehalis River and 
     Tributaries, Washington, authorized by section 401(a) of the 
     Water Resources Development Act of 1986 (100 Stat. 4126), is 
     modified to authorize the Secretary of the Army to provide 
     the non-Federal interest credit toward the non-Federal share 
     of the cost of the project the cost of planning, design, and 
     construction work carried out by the non-Federal interest 
     before the date of execution of a cooperation agreement for 
     the project if the Secretary determines that the work is 
     integral to the project.
       Sec. 119. Within the funds appropriated to the National 
     Park Service under the heading ``Operation of the National 
     Park System'' in Public

[[Page 26849]]

     Law 106-291, the Secretary of the Interior shall provide a 
     grant of $75,000 to the City of Ocean Beach, New York, for 
     repair of facilities at the Ocean Beach Pavilion at Fire 
     Island National Seashore.
       Sec. 120. The National Park Service is directed to work 
     with Fort Sumter Tours, Inc., the concessionaire currently 
     providing services at Fort Sumter National Monument in South 
     Carolina, on an amicable solution of the current legal 
     dispute between the two parties. The Director of the Service 
     is directed to extend immediately the current contract 
     through March 15, 2001, to facilitate further negotiations 
     and for 180 days if final settlement of all disputes is 
     agreed to by both parties.
       Sec. 121. Title VIII--Land Conservation, Preservation and 
     Infrastructure Improvement of Public Law 106-291 is amended 
     as follows: after the first dollar amount insert: ``, to be 
     derived from the Land and Water Conservation Fund''.
       Sec. 122. Gas to Liquids. Section 301(2) of the Energy 
     Policy Act of 1992 (Public Law 102-486; 42 U.S.C. 13211(2)) 
     is amended by inserting ``, including liquid fuels 
     domestically produced from natural gas'' after ``natural 
     gas''.
       Sec. 123. (a) The provisions of H.R. 4904 as passed in the 
     House of Representatives on September 26, 2000 are hereby 
     enacted into law.
       Sec. 124. Appalachian National Scenic Trail. (a) 
     Acquisitions.--
       (1) In general.--The Secretary of the Interior shall--
       (A) negotiate agreements with landowners setting terms and 
     conditions for the acquisition of parcels of land and 
     interests in land totalling approximately 580 acres at 
     Saddleback Mountain near Rangeley, Maine, for the benefit of 
     the Appalachian National Scenic Trail;
       (B) complete the pending environmental compliance process 
     for the acquisitions; and
       (C) acquire the parcels of land and interests in land for 
     consideration in the amount of $4,000,000 plus closing costs 
     customarily paid by the United States.
       (2) Acceptance of donations.--The Secretary may accept as 
     donations parcels of land and interests in land at Saddleback 
     Mountain, in addition to those acquired by purchase under 
     paragraph (1), for the benefit of the Appalachian National 
     Scenic Trail.
       (b) Conveyance to the State.--The Secretary shall convey to 
     the State of Maine a portion of the land and interests in 
     land acquired under subsection (a) without consideration, 
     subject to such terms and conditions as the Secretary and the 
     State of Maine agree are necessary to ensure the protection 
     of the Appalachian National Scenic Trail.
       Sec. 125. The provisions of S. 2273, as passed in the 
     United States Senate on October 5, 2000 and engrossed, are 
     hereby enacted into law.
       Sec. 126. Section 116(a)(1)(A) of the Illinois and Michigan 
     Canal National Heritage Corridor Act of 1984 (98 Stat. 1467) 
     is amended by striking ``$250,000'' and inserting 
     ``$1,000,000''.
       Sec. 127. The provisions of S. 2885, as passed in the 
     United States Senate on October 5, 2000 and engrossed, are 
     hereby enacted into law.
       Sec. 128. None of the funds provided in this or any other 
     Act may be used prior to July 31, 2001 to promulgate or 
     enforce a final rule to reduce during the 2000-2001 or 2001-
     2002 winter seasons the use of snowmobiles below current use 
     patterns at a unit in the National Park System: Provided, 
     That nothing in this section shall be interpreted as amending 
     any requirement of the Clean Air Act: Provided further, That 
     nothing in this section shall preclude the Secretary from 
     taking emergency actions related to snowmobile use in any 
     National Park based on authorities which existed to permit 
     such emergency actions as of the date of enactment of this 
     Act.
       Sec. 129. The Secretary of the Interior shall extend until 
     March 31, 2001 the ``Extension of Standstill Agreement,'' 
     entered into on November 22, 1999 by the United States of 
     America and the holders of interests in seven campsite leases 
     in Biscayne Bay, Miami-Dade County, Florida collectively 
     known as ``Stiltsville''.
       Sec. 130. The Secretary of the Interior is authorized to 
     make a grant of $1,300,000 to the State of Minnesota or its 
     political subdivision from funds available to the National 
     Park Service under the heading ``Land Acquisition and State 
     Assistance'' in Public Law 106-291 to cover the cost of 
     acquisition of land in Lower Phalen Creek near St. Paul, 
     Minnesota in the Mississippi National River and Recreation 
     Area.
       Sec. 131. Notwithstanding any provision of law or 
     regulation, funds appropriated in Public Law 106-291 for a 
     cooperative agreement for management of George Washington's 
     Boyhood Home, Ferry Farm, shall be transferred to the George 
     Washington's Fredericksburg Foundation, Inc. (formerly known 
     as Kenmore Association, Inc.) immediately upon signing of the 
     cooperative agreement.
       Sec. 132. During the period beginning on the date of the 
     enactment of this Act and ending on June 1, 2001, funds made 
     available to the Secretary of the Interior may not be used to 
     pay salaries or expenses related to the issuance of a request 
     for proposal related to a light rail system to service Grand 
     Canyon National Park.
       Sec. 133. None of the funds in this or any other Act may be 
     used by the Secretary of the Interior to remove the five foot 
     tall white cross located within the boundary of the Mojave 
     National Preserve in southern California first erected in 
     1934 by the Veterans of Foreign Wars along Cima Road 
     approximately 11 miles south of Interstate 15.
       Sec. 134. Section 6(g) of the Chesapeake and Ohio Canal 
     Development Act (16 U.S.C. 410y-4(g)) is amended by striking 
     ``thirty'' and inserting ``40''.
       Sec. 135. Funds provided in Public Law 106-291 for federal 
     land acquisition by the National Park Service in Fiscal Year 
     2001 for Brandywine Battlefield, Ice Age National Scenic 
     Trail, Mississippi National River and Recreation Area, 
     Shenandoah National Heritage Area, Fallen Timbers Battlefield 
     and Fort Miamis National Historic Site may be used for a 
     grant to a state, local government, or to a land management 
     entity for the acquisition of lands without regard to any 
     restriction on the use of federal land acquisition funds 
     provided through the Land and Water Conservation Act of 1965.
       Sec. 136. Notwithstanding any other provision of law, in 
     accordance with Title IV--Wildland Fire Emergency 
     Appropriations, Public Law 106-291, from the $35,000,000 
     provided for community and private land fire assistance, the 
     Secretary of Agriculture, may use up to $9,000,000 for 
     advance, direct lump sum payments for assistance to eligible 
     individuals, businesses, or other entities, to accomplish the 
     purposes of providing assistance to non-federal entities most 
     affected by fire. To expedite such financial assistance being 
     provided to eligible recipients, the lump sum payments shall 
     not be subject to CFR Title 7 Sec. 3015; Title 7 Sec. 3019; 
     Title 7 Sec. 3052 related to the administration of Federal 
     financial assistance.
       Sec. 137. (a) In General.--The first section of Public Law 
     91-660 (16 U.S.C. 459h) is amended--
       (1) in the first sentence, by striking ``That, in'' and 
     inserting the following:

     ``SECTION 1. GULF ISLANDS NATIONAL SEASHORE.

       ``(a) Establishment.--In''; and
       (2) in the second sentence--
       (A) by redesignating paragraphs (1) through (6) as 
     subparagraphs (A) through (F), respectively, and indenting 
     appropriately;
       (B) by striking ``The seashore shall comprise'' and 
     inserting the following:
       ``(b) Composition.--
       ``(1) In general.--The seashore shall comprise the areas 
     described in paragraphs (2) and (3).
       ``(2) Areas included in boundary plan numbered ns-gi-
     7100j.--The areas described in this paragraph are'': and
       (C) by adding at the end the following:
       ``(3) Cat island.--Upon its acquisition by the Secretary, 
     the area described in this paragraph is the parcel consisting 
     of approximately 2,000 acres of land on Cat Island, 
     Mississippi, as generally depicted on the map entitled 
     `Boundary Map, Gulf Islands National Seashore, Cat Island, 
     Mississippi', numbered 635/80085, and dated November 9, 1999 
     (referred to in this title as the `Cat Island Map').
       ``(4) Availability of map.--The Cat Island Map shall be on 
     file and available for public inspection in the appropriate 
     offices of the National Park Service.''.
       (b) Acquisition Authority.--Section 2 of Public Law 91-660 
     (16 U.S.C. 459h-1) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``lands,'' and inserting ``submerged land, land,''; and
       (2) by adding at the end the following:
       ``(e) Acquisition Authority.--
       ``(1) In general.--The Secretary may acquire, from a 
     willing seller only--
       ``(A) all land comprising the parcel described in 
     subsection (b)(3) that is above the mean line of ordinary 
     high tide, lying and being situated in Harrison County, 
     Mississippi;
       ``(B) an easement over the approximately 150-acre parcel 
     depicted as the `Boddie Family Tract' on the Cat Island Map 
     for the purpose of implementing an agreement with the owners 
     of the parcel concerning the development and use of the 
     parcel; and
       ``(C)(i) land and interests in land on Cat Island outside 
     the 2,000-acre area depicted on the Cat Island Map; and
       ``(ii) submerged land that lies within 1 mile seaward of 
     Cat Island (referred to in this title as the `buffer zone'), 
     except that submerged land owned by the State of Mississippi 
     (or a subdivision of the State) may be acquired only by 
     donation.
       ``(2) Administration.--
       ``(A) In general.--Land and interests in land acquired 
     under this subsection shall be administered by the Secretary, 
     acting through the Director of the National Park Service.
       ``(B) Buffer zone.--Nothing in this title or any other 
     provision of law shall require the State of Mississippi to 
     convey to the Secretary any right, title, or interest in or 
     to the buffer zone as a condition for the establishment of 
     the buffer zone.
       ``(3) Modification of boundary.--The boundary of the 
     seashore shall be modified to reflect the acquisition of land 
     under this subsection only after completion of the 
     acquisition.''.
       (c) Regulation of Fishing.--Section 3 of Public Law 91-660 
     (16 U.S.C. 459h-2) is amended--
       (1) by inserting ``(a) In General.--'' before ``The 
     Secretary''; and
       (2) by adding at the end the following:
       ``(b) No Authority To Regulate Maritime Activities.--
     Nothing in this title or any other provision of law shall 
     affect any right of the State of Mississippi, or give the 
     Secretary any authority, to regulate maritime activities, 
     including nonseashore fishing activities (including 
     shrimping), in any area that, on the date of enactment of 
     this subsection, is outside the designated boundary of the 
     seashore (including the buffer zone).''.
       (d) Authorization of Management Agreements.--Section 5 of 
     Public Law 91-660 (16 U.S.C. 459h-4) is amended--

[[Page 26850]]

       (1) by inserting ``(a) In General.--'' before ``Except''; 
     and
       (2) by adding at the end the following:
       ``(b) Agreements.--
       ``(1) In general.--The Secretary may enter into 
     agreements--
       ``(A) with the State of Mississippi for the purposes of 
     managing resources and providing law enforcement assistance, 
     subject to authorization by State law, and emergency services 
     on or within any land on Cat Island and any water and 
     submerged land within the buffer zone; and
       ``(B) with the owners of the approximately 150-acre parcel 
     depicted as the `Boddie Family Tract' on the Cat Island Map 
     concerning the development and use of the land.
       ``(2) No authority to enforce certain regulations.--Nothing 
     in this subsection authorizes the Secretary to enforce 
     Federal regulations outside the land area within the 
     designated boundary of the seashore.''.
       (e) Authorization of Appropriations.--Section 11 of Public 
     Law 91-660 (16 U.S.C. 459h-10) is amended--
       (1) by inserting ``(a) In General.--'' before ``There''; 
     and
       (2) by adding at the end the following:
       ``(b) Authorization for Acquisition of Land.--In addition 
     to the funds authorized by subsection (a), there are 
     authorized to be appropriated such sums as are necessary to 
     acquire land and submerged land on and adjacent to Cat 
     Island, Mississippi.''.
       Sec. 138. Percentage Limitations on Federal Thrift Savings 
     Plan Contributions. (a) Amendments Relating to FERS.--
       (1) In general.--Subsection (a) of section 8432 of title 5, 
     United States Code, is amended--
       (A) by striking ``(a)'' and inserting ``(a)(1)'';
       (B) by striking ``10 percent'' and all that follows through 
     ``period.'' and inserting ``the maximum percentage of such 
     employee's or Member's basic pay for such pay period 
     allowable under paragraph (2).''; and
       (C) by adding at the end the following:
       ``(2) The maximum percentage allowable under this paragraph 
     shall be determined in accordance with the following table:

``In the case of a pay period beginThe maximum percentage allowable is:
  2001..............................................................11 
  2002..............................................................12 
  2003..............................................................13 
  2004..............................................................14 
  2005..............................................................15 
  2006 or thereafter............................................100.''.
       (2) Justices and judges.--Paragraph (2) of section 8440a(b) 
     of title 5, United States Code, is amended to read as 
     follows:
       ``(2) The amount contributed by a justice or judge for any 
     pay period shall not exceed the maximum percentage of such 
     justice's or judge's basic pay for such pay period allowable 
     under section 8440f.''.
       (3) Bankruptcy judges and magistrates.--Paragraph (2) of 
     section 8440b(b) of title 5, United States Code, is amended 
     by striking ``5 percent'' and all that follows through 
     ``period.'' and inserting ``the maximum percentage of such 
     bankruptcy judge's or magistrate's basic pay for such pay 
     period allowable under section 8440f.''.
       (4) Court of federal claims judges.--Paragraph (2) of 
     section 8440c(b) of title 5, United States Code, is amended 
     by striking ``5 percent'' and all that follows through 
     ``period.'' and inserting ``the maximum percentage of such 
     judge's basic pay for such pay period allowable under section 
     8440f.''.
       (5) Judges of the united states court of appeals for 
     veterans claims.--The first sentence of section 8440d(b)(2) 
     of title 5, United States Code, is amended to read as 
     follows: ``The amount contributed by a judge of the United 
     States Court of Appeals for Veterans Claims for any pay 
     period may not exceed the maximum percentage of such judge's 
     basic pay for such pay period allowable under section 
     8440f.''.
       (6) Members of the uniformed services.--
       (A) Basic pay.--Subparagraph (A) of section 8440e(d)(1) of 
     title 5, United States Code, is amended by striking ``5 
     percent'' and all that follows through ``period.'' and 
     inserting ``the maximum percentage of such member's basic pay 
     for such pay period allowable under section 8440f.''.
       (B) Compensation.--Subparagraph (B) of section 8440e(d)(1) 
     of title 5, United States Code, is amended by striking ``5 
     percent'' and all that follows through ``period.'' and 
     inserting ``the maximum percentage of such member's 
     compensation for such pay period (received under such section 
     206) allowable under section 8440f.''.
       (7) Maximum percentage allowable.--
       (A) In general.--Title 5, United States Code, is amended by 
     inserting after section 8440e the following:

     ``Sec. 8440f. Maximum percentage allowable for certain 
       participants

       ``The maximum percentage allowable under this section shall 
     be determined in accordance with the following table:

``In the case of a pay period beginThe maximum percentage allowable is:
  2001...............................................................6 
  2002...............................................................7 
  2003...............................................................8 
  2004...............................................................9 
  2005..............................................................10 
  2006 or thereafter............................................100.''.
       (B) Conforming amendment.--The table of sections for 
     chapter 84 of title 5, United States Code, is amended by 
     inserting after the item relating to section 8440e the 
     following:

``8440f. Maximum percentage allowable for certain participants.''.
       (b) Amendments Relating to CSRS.--Paragraph (2) of section 
     8351(b) of title 5, United States Code, is amended--
       (1) by striking ``(2)'' and inserting ``(2)(A)'';
       (2) by striking ``5 percent'' and all that follows through 
     ``period.'' and inserting ``the maximum percentage of such 
     employee's or Member's basic pay for such pay period 
     allowable under subparagraph (B).''; and
       (3) by adding at the end the following:
       ``(B) The maximum percentage allowable under this 
     subparagraph shall be determined in accordance with the 
     following table:

``In the case of a pay period beginThe maximum percentage allowable is:
  2001...............................................................6 
  2002...............................................................7 
  2003...............................................................8 
  2004...............................................................9 
  2005..............................................................10 
  2006 or thereafter............................................100.''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on the date of enactment of this Act.
       (2) Coordination with election periods.--The Executive 
     Director shall by regulation determine the first election 
     period in which elections may be made consistent with the 
     amendments made by this section.
       (3) Definitions.--For purposes of this section--
       (A) the term ``election period'' means a period afforded 
     under section 8432(b) of title 5, United States Code; and
       (B) the term ``Executive Director'' has the meaning given 
     such term by section 8401(13) of title 5, United States Code.
       Sec. 139. Exclusion of Elements of United States Secret 
     Service From Certain Activities. Section 7103(a)(3) of title 
     5, United States Code, is amended--
       (1) in subparagraph (F), by striking ``or'' at the end;
       (2) in subparagraph (G), by striking the period and 
     inserting ``; or''; and
       (3) by adding at the end the following new subparagraph:
       ``(H) the United States Secret Service and the United 
     States Secret Service Uniformed Division.''.
       Sec. 140. (a) The adjustment in rates of basic pay for the 
     statutory pay systems that takes effect in fiscal year 2001 
     under sections 5303 and 5304 of title 5, United States Code, 
     shall be an increase of 3.7 percent.
       (b) Funds used to carry out this section shall be paid from 
     appropriations which are made to each applicable department 
     or agency for salaries and expenses for fiscal year 2001.
       Sec. 141. Repeal of Mandatory Separation Requirement. (a) 
     In General.--Section 8335 of title 5, United States Code, is 
     amended--
       (1) by striking subsection (c); and
       (2) by redesignating subsections (d) and (e) as subsections 
     (c) and (d), respectively.
       (b) Technical and Conforming Amendment.--Section 8339(q) of 
     title 5, United States Code, is amended by striking 
     ``8335(d)'' and inserting ``8335(c)''.
       Sec. 142. Section 223(a)(14) of the Juvenile Justice and 
     Delinquency Prevention Act of 1974 (42 U.S.C. 5633(a)(14) as 
     amended, is hereby amended by inserting after the phrase 
     ``twenty-four hours'' the following new phrase: ``(except in 
     the case of Alaska where such time limit may be forty-eight 
     hours in fiscal years 2000 through 2002)''.
       Sec. 143. (a) Section 336 of the Communications Act of 1934 
     (47 U.S.C. 336) is amended--
       (1) by redesignating subsection (h) as subsection (i); and
       (2) by inserting after subsection (g) the following:
       ``(h)(1) Within 60 days after receiving a request (made in 
     such form and manner and containing such information as the 
     Commission may require) under this subsection from a low-
     power television station to which this subsection applies, 
     the Commission shall authorize the licensee or permittee of 
     that station to provide digital data service subject to the 
     requirements of this subsection as a pilot project to 
     demonstrate the feasibility of using low-power television 
     stations to provide high-speed wireless digital data service, 
     including Internet access to unserved areas.
       ``(2) The low-power television stations to which this 
     subsection applies are as follows:
       ``(A) KHLM-LP, Houston, Texas.
       ``(B) WTAM-LP, Tampa, Florida.
       ``(C) WWRJ-LP, Jacksonville, Florida.
       ``(D) WVBG-LP, Albany, New York.
       ``(E) KHHI-LP, Honolulu, Hawaii.
       ``(F) KPHE-LP (K19DD), Phoenix, Arizona.
       ``(G) K34FI, Bozeman, Montana.
       ``(H) K65GZ, Bozeman, Montana.
       ``(I) WXOB-LP, Richmond, Virginia.
       ``(J) WIIW-LP, Nashville, Tennessee.
       ``(K) A station and repeaters to be determined by the 
     Federal Communications Commission for the sole purpose of 
     providing service to communities in the Kenai Peninsula 
     Borough and Matanuska Susitna Borough.
       ``(L) WSPY-LP, Plano, Illinois.
       ``(M) W24AJ, Aurora, Illinois.
       ``(3) Notwithstanding any requirement of section 553 of 
     title 5, United States Code, the Commission shall promulgate 
     regulations establishing the procedures, consistent with the 
     requirements of paragraphs (4) and (5), governing the pilot 
     projects for the provision of digital

[[Page 26851]]

     data services by certain low power television licensees 
     within 120 days after the date of enactment of LPTV Digital 
     Data Services Act. The regulations shall set forth--
       ``(A) requirements as to the form, manner, and information 
     required for submitting requests to the Commission to provide 
     digital data service as a pilot project;
       ``(B) procedures for testing interference to digital 
     television receivers caused by any pilot project station or 
     remote transmitter;
       ``(C) procedures for terminating any pilot project station 
     or remote transmitter or both that causes interference to any 
     analog or digital full-power television stations, class A 
     television station, television translators or any other users 
     of the core television band;
       ``(D) specifications for reports to be filed quarterly by 
     each low power television licensee participating in a pilot 
     project;
       ``(E) procedures by which a low power television licensee 
     participating in a pilot project shall notify television 
     broadcast stations in the same market upon commencement of 
     digital data services and for ongoing coordination with local 
     broadcasters during the test period; and
       ``(F) procedures for the receipt and review of interference 
     complaints on an expedited basis consistent with paragraph 
     (5)(D).
       ``(4) A low-power television station to which this 
     subsection applies may not provide digital data service 
     unless--
       ``(A) the provision of that service, including any remote 
     return-path transmission in the case of 2-way digital data 
     service, does not cause any interference in violation of the 
     Commission's existing rules, regarding interference caused by 
     low power television stations to full-service analog or 
     digital television stations, class A television stations, or 
     television translator stations; and
       ``(B) the station complies with the Commission's 
     regulations governing safety, environmental, and sound 
     engineering practices, and any other Commission regulation 
     under paragraph (3) governing pilot program operations.
       ``(5)(A) The Commission may limit the provision of digital 
     data service by a low-power television station to which this 
     subsection applies if the Commission finds that--
       ``(i) the provision of 2-way digital data service by that 
     station causes any interference that cannot otherwise be 
     remedied; or
       ``(ii) the provision of 1-way digital data service by that 
     station causes any interference.
       ``(B) The Commission shall grant any such station, upon 
     application (made in such form and manner and containing such 
     information as the Commission may require) by the licensee or 
     permittee of that station, authority to move the station to 
     another location, to modify its facilities to operate on a 
     different channel, or to use booster or auxiliary 
     transmitting locations, if the grant of authority will not 
     cause interference to the allowable or protected service 
     areas of full service digital television stations, National 
     Television Standards Committee assignments, or television 
     translator stations, and provided, however, no such authority 
     shall be granted unless it is consistent with existing 
     Commission regulations relating to the movement, 
     modification, and use of non-class A low power television 
     transmission facilities in order--
       ``(i) to operate within television channels 2 through 51, 
     inclusive; or
       ``(ii) to demonstrate the utility of low-power television 
     stations to provide high-speed 2-way wireless digital data 
     service.
       ``(C) The Commission shall require quarterly reports from 
     each station authorized to provide digital data services 
     under this subsection that include--
       ``(i) information on the station's experience with 
     interference complaints and the resolution thereof;
       ``(ii) information on the station's market success in 
     providing digital data service; and
       ``(iii) such other information as the Commission may 
     require in order to administer this subsection.
       ``(D) The Commission shall resolve any complaints of 
     interference with television reception caused by any station 
     providing digital data service authorized under this 
     subsection within 60 days after the complaint is received by 
     the Commission.
       ``(6) The Commission shall assess and collect from any low-
     power television station authorized to provide digital data 
     service under this subsection an annual fee or other schedule 
     or method of payment comparable to any fee imposed under the 
     authority of this Act on providers of similar services. 
     Amounts received by the Commission under this paragraph may 
     be retained by the Commission as an offsetting collection to 
     the extent necessary to cover the costs of developing and 
     implementing the pilot program authorized by this subsection, 
     and regulating and supervising the provision of digital data 
     service by low-power television stations under this 
     subsection. Amounts received by the Commission under this 
     paragraph in excess of any amount retained under the 
     preceding sentence shall be deposited in the Treasury in 
     accordance with chapter 33 of title 31, United States Code.
       ``(7) In this subsection, the term `digital data service' 
     includes--
       ``(A) digitally-based interactive broadcast service; and
       ``(B) wireless Internet access, without regard to--
       ``(i) whether such access is--

       ``(I) provided on a one-way or a two-way basis;
       ``(II) portable or fixed; or

       ``(III) connected to the Internet via a band allocated to 
     Interactive Video and Data Service; and

       ``(ii) the technology employed in delivering such service, 
     including the delivery of such service via multiple 
     transmitters at multiple locations.
       ``(8) Nothing in this subsection limits the authority of 
     the Commission under any other provision of law.''.
       (b) The Federal Communications Commission shall submit a 
     report to the Congress on June 30, 2001, and June 30, 2002, 
     evaluating the utility of using low-power television stations 
     to provide high-speed digital data service. The reports shall 
     be based on the pilot projects authorized by section 336(h) 
     of the Communications Act of 1934 (47 U.S.C. 336(h)).
       Sec. 144. (a) The Magnuson-Stevens Fishery Conservation and 
     Management Act (16 U.S.C. 1801 et. seq.) is amended--
       (1) in section 303(d)(1)(A) by striking ``October 1, 
     2000,'' and inserting ``October 1, 2002,'';
       (2) in section 303(d)(5) by striking ``October 1, 2000,'' 
     and inserting ``October 1, 2002,'';
       (3) in section 407(b) by striking ``October 1, 2000,'' and 
     inserting ``October 1, 2002,''; and
       (4) in section 407(c)(1) by striking ``October 1, 2000,'' 
     and inserting ``October 1, 2002,''.
       (b) Notwithstanding sections 303(d)(1)(A) and 303(d)(1)(B) 
     of the Magnuson-Stevens Fishery Conservation and Management 
     Act, as amended by this section, the Pacific Fishery 
     Management Council may recommend and the Secretary of 
     Commerce may approve and implement any fishery management 
     plan, plan amendment, or regulation, for fixed gear sablefish 
     subject to the jurisdiction of such Council, that--
       (1) allows the use of more than one groundfish fishing 
     permit by each fishing vessel; and/or
       (2) sets cumulative trip limit periods, up to twelve months 
     in any calendar year, that allow fishing vessels a reasonable 
     opportunity to harvest the full amount of the associated trip 
     limits.
     Notwithstanding subsection (a), the Gulf of Mexico Fishery 
     Management Council may develop a biological, economic, and 
     social profile of any fishery under its jurisdiction that may 
     be considered for management under a quota management system, 
     including the benefits and consequences of the quota 
     management systems considered. The North Pacific Fishery 
     Management Council shall examine the fisheries under its 
     jurisdiction, particularly the Gulf of Alaska groundfish and 
     Bering Sea crab fisheries, to determine whether 
     rationalization is needed. In particular, the North Pacific 
     Council shall analyze individual fishing quotas, processor 
     quotas, cooperatives, and quotas held by communities. The 
     analysis should include an economic analysis of the impact of 
     all options on communities and processors as well as the 
     fishing fleets. The North Pacific Council shall present its 
     analysis to the appropriations and authorizing committees of 
     the Senate and House of Representatives in a timely manner.
       (c)(1) Public Law 101-380, as amended by section 2204 of 
     chapter 2 of title II of Public Law 106-246, is amended 
     further--
       (A) by striking the second sentence of section 5008(c) and 
     inserting in lieu thereof ``The Federal Advisory Committee 
     Act (5 U.S.C. App. 2) shall not apply to the Institute.'';
       (B) by inserting the following sentence at the end of 
     section 5008(e): ``The administrative funds of the Institute 
     and the administrative funds of the North Pacific Research 
     Board created under Public Law 105-83 may be used to jointly 
     administer such programs at the discretion of the North 
     Pacific Research Board.''; and
       (C) in section 5006(c), as amended by this Act or any other 
     Act making appropriations for fiscal year 2001, by striking 
     the colon immediately before the first proviso and inserting 
     in lieu thereof, ``of which up to $3,000,000 may be used for 
     the lease payment to the Alaska SeaLife Center under section 
     5008(b)(2):''.
       (2) Section 401(e) of Public Law 105-83 is amended--
       (A) in paragraph (2) by striking ``and recommended for 
     Secretarial approval'';
       (B) in paragraph (3)(A) by striking ``, who shall be a co-
     chair of the Board'';
       (C) in paragraph (3)(F) by striking ``, who shall be a co-
     chair of the Board'';
       (D) in paragraph (4)(A) by striking ``and administer'';
       (E) in paragraph (4)(B) by striking the first sentence;
       (F) by adding at the end the following new paragraph:
       ``(5) All decisions of the Board, including grant 
     recommendations, shall be by majority vote of the members 
     listed in paragraphs (3)(A), (3)(F), (3)(G), (3)(J), and 
     (3)(N), in consultation with the other members. The five 
     voting members may act on behalf of the Board in all matters 
     of administration, including the disposition of research 
     funds not made available by this section, at any time on or 
     after October 1, 2000.''; and
       (G) in paragraph (3) by adding at the end the following:
       ``(N) one member who shall represent fishing interests and 
     shall be nominated by the Board and appointed by the 
     Secretary.''.
       (3) Funds made available for the construction of the NOAA 
     laboratory at Lena Point shall be considered incremental 
     funding for the initial phase of construction at Lena Point 
     for site work and related infrastructure and systems 
     installation.
       (4) Notwithstanding any other provision of law, funds made 
     available by this Act or any other Act for the Alaska SeaLife 
     Center shall be considered direct payments for all purposes 
     of applicable law.
       (5) Public Law 99-5 is amended--

[[Page 26852]]

       (A) by inserting after section 3(e) the following:
       ``(f) The United States shall be represented on the 
     Transboundary Panel by seven panel members, of whom--
       ``(1) one shall be an official of the United States 
     Government, with salmon fishery management responsibility and 
     expertise;
       ``(2) one shall be an official of the State of Alaska, with 
     salmon fishery management responsibility and expertise; and
       ``(3) five shall be individuals knowledgeable and 
     experienced in the salmon fisheries for which the 
     Transboundary Panel is responsible.'';
       (B) by renumbering the remaining subsections;
       (C) in section 3(g), as redesignated by this subsection, by 
     striking ``The appointing authorities'' and inserting in lieu 
     thereof ``For the northern, southern, and Fraser River 
     panels, the appointing authorities''; and
       (D) in section 3(h)(3), as redesignated by this subsection, 
     by striking ``northern and southern'' and inserting in lieu 
     thereof ``northern, southern, and transboundary''.
       (6) The fishery research vessel for which funds were 
     appropriated in Public Law 106-113 shall be homeported in 
     Kodiak, Alaska, and is hereby named ``OSCAR DYSON''.
       (d)(1) The Secretary of Commerce (hereinafter ``the 
     Secretary'') shall, after notice and opportunity for public 
     comment, adopt final regulations not later than May 1, 2001 
     to implement a fishing capacity reduction program for crab 
     fisheries included in the Fishery Management Plan for 
     Commercial King and Tanner Crab Fisheries in the Bering Sea 
     and Aleutian Islands (hereinafter ``BSAI crab fisheries''). 
     In implementing the program the Secretary shall--
       (A) reduce the fishing capacity in the BSAI crab fisheries 
     by permanently reducing the number of license limitation 
     program crab licenses;
       (B) permanently revoke all fishery licenses, fishery 
     permits, area and species endorsements, and any other fishery 
     privileges, for all fisheries subject to the jurisdiction of 
     the United States, issued to a vessel or vessels (or to 
     persons on the basis of their operation or ownership of that 
     vessel or vessels) for which a BSAI crab fisheries reduction 
     permit is surrendered and revoked under section 6011(b) of 
     title 50, Code of Federal Regulations;
       (C) ensure that the Secretary of Transportation is notified 
     of each vessel for which a reduction permit is surrendered 
     and revoked under the program, with a request that such 
     Secretary permanently revoke the fishery endorsement of each 
     such vessel and refuse permission to transfer any such vessel 
     to a foreign flag under paragraph (5);
       (D) ensure that vessels removed from the BSAI crab 
     fisheries under the program are made permanently ineligible 
     to participate in any fishery worldwide, and that the owners 
     of such vessels contractually agree that such vessels will 
     operate only under the United States flag or be scrapped as a 
     reduction vessel pursuant to section 600.1011(c) of title 50, 
     Code of Federal Regulations;
       (E) ensure that vessels removed from the BSAI crab 
     fisheries, the owners of such vessels, and the holders of 
     fishery permits for such vessels forever relinquish any claim 
     associated with such vessel, permits, and any catch history 
     associated with such vessel or permits that could qualify 
     such vessel, vessel owner, or permit holder for any present 
     or future limited access system fishing permits in the United 
     States fisheries based on such vessel, permits, or catch 
     history;
       (F) not include the purchase of Norton Sound red king crab 
     or Norton Sound blue king crab endorsements in the program, 
     though any such endorsements associated with a reduction 
     permit or vessel made ineligible or scrapped under the 
     program shall also be surrendered and revoked as if 
     surrendered and revoked pursuant to section 600.1011(b) of 
     title 50, Code of Federal Regulations;
       (G) seek to obtain the maximum sustained reduction in 
     fishing capacity at the least cost by establishing bidding 
     procedures that--
       (i) assign a bid score to each bid by dividing the price 
     bid for each reduction permit by the total value of the crab 
     landed in the most recent five-year period in each crab 
     fishery from 1990 through 1999 under that permit, with the 
     value for each year determined by multiplying the average 
     price per pound published by the State of Alaska in each year 
     for each crab fishery included in such reduction permit by 
     the total pounds landed in each crab fishery under that 
     permit in that year; and
       (ii) use a reverse auction in which the lowest bid score 
     ranks first, followed by each bid with the next lowest bid 
     score, until the total bid amount of all bids equals a 
     reduction cost that the next lowest bid would cause to exceed 
     $100,000,000;
       (H) not waive or otherwise make inapplicable any 
     requirements of the License Limitation Program applicable to 
     such crab fisheries, in particular any requirements in 
     sections 679.4(k) and (l) of title 50, Code of Federal 
     Regulations;
       (I) not waive or otherwise make inapplicable any catcher 
     vessel sideboards implemented under the American Fisheries 
     Act (AFA), except that the North Pacific Fishery Management 
     Council shall recommend to the Secretary and to the State of 
     Alaska, not later than February 16, 2001, and the Secretary 
     and the State of Alaska shall implement as appropriate, 
     modifications to such sideboards to the extent necessary to 
     permit AFA catcher vessels that remain in the crab fisheries 
     to share proportionately in any increase in crab harvest 
     opportunities that accrue to all remaining AFA and non-AFA 
     catcher vessels if the fishing capacity reduction program 
     required by this section is implemented;
       (J) establish sub-amounts and repayment fees for each BSAI 
     crab fishery prosecuted under a separate endorsement for 
     repayment of the reduction loan, such that--
       (i) a reduction loan sub-amount is established for each 
     separate BSAI crab fishery (other than Norton Sound red king 
     crab or Norton Sound blue king crab) by dividing the total 
     value of the crab landed in that fishery under all reduction 
     permits by the total value of all crab landed under such 
     permits in the BSAI crab fisheries (determined using the same 
     average prices and years used under subparagraph (G)(i) of 
     this paragraph), and multiplying the reduction loan amount by 
     the percentage expressed by such ratio; and
       (ii) fish sellers who participate in the crab fishery under 
     each endorsement repay the reduction loan sub-amount 
     attributable to that fishery; and
       (K) notwithstanding section 1111(b) of the Merchant Marine 
     Act, 1936 (46 U.S.C. App. 1279f(b)(4)), establish a repayment 
     period for the reduction loan of not less than 30 years.
       (2)(A) Only persons to whom a non-interim BSAI crab license 
     and an area/species endorsement have been issued (other than 
     persons to whom only a license and an area/species 
     endorsement for Norton Sound red king crab or Norton Sound 
     blue king crab have been issued) for vessels that--
       (i) qualify under the License Limitation Program criteria 
     set forth in section 679.4 of title 50, Code of Federal 
     Regulations, and
       (ii) have made at least one landing of BSAI crab in either 
     1996, 1997, or prior to February 7 in 1998, may submit a bid 
     in the fishing capacity reduction program established by this 
     section.
       (B) After the date of enactment of this section--
       (i) no vessel 60 feet or greater in length overall may 
     participate in any BSAI crab fishery (other than for Norton 
     Sound red king crab or Norton Sound blue king crab) unless 
     such vessel meets the requirements set forth in subparagraphs 
     (A)(i) and (A)(ii) of this paragraph; and
       (ii) no vessel between 33 and 60 feet in length overall may 
     participate in any BSAI crab fishery (other than for Norton 
     Sound red king crab or Norton Sound blue king crab) unless 
     such vessel meets the requirements set forth in subparagraph 
     (A)(i) of this paragraph. Nothing in this paragraph shall be 
     construed to affect the requirements for participation in the 
     fisheries for Norton Sound red king crab or Norton Sound blue 
     king crab. The Secretary may, on a case by case basis and 
     after notice and opportunity for public comment, waive the 
     application of subparagraph (A)(ii) of this paragraph if the 
     Secretary determines such waiver is necessary to implement 
     one of the specific exemptions to the recent participation 
     requirement that were recommended by the North Pacific 
     Fishery Management Council in the record of its October, 1998 
     meeting.
       (3) The fishing capacity reduction program required under 
     this subsection shall be implemented under this subsection 
     and sections 312(b)-(e) of the Magnuson-Stevens Fishery 
     Conservation and Management Act (16 U.S.C. 1861a(b)-(e)). 
     Section 312 and the regulations found in Subpart L of Part 
     600 of title 50, Code of Federal Regulations, shall apply 
     only to the extent such section or regulations are not 
     inconsistent with or made inapplicable by the specific 
     provisions of this subsection. Sections 600.1001, 600.1002, 
     600.1003, 600.1005, 600.1010(b), 600.1010(d)(1), 600.1011(d), 
     the last sentence of 600.1011(a), and the last sentence of 
     600.1014(f) of such Subpart shall not apply to the program 
     implemented under this subsection. The program shall be 
     deemed accepted under section 600.1004, and any time period 
     specified in Subpart L that would prevent the Secretary from 
     complying with the May 1, 2001 date required by this 
     subsection shall be modified as appropriate to permit 
     compliance with that date. The referendum required for the 
     program under this subsection shall be a post-bidding 
     referendum under section 600.1010 of title 50, Code of 
     Federal Regulations.
       (4)(A) The fishing capacity reduction program required 
     under this subsection is authorized to be financed in equal 
     parts through a reduction loan of $50,000,000 under sections 
     1111 and 1112 of title XI of the Merchant Marine Act, 1936 
     (46 U.S.C. App. 1279f and 1279g) and $50,000,000 which is 
     authorized to be appropriated for the purposes of such 
     program.
       (B) Of the $1,000,000 appropriated in section 120 of 
     Division A of Public Law 105-277 for the cost of a direct 
     loan in the Bering Sea and Aleutian Islands crab fisheries--
       (i) $500,000 shall be for the cost of guaranteeing the 
     reduction loan required under subparagraph (A) of this 
     paragraph in accordance with the requirements of the Federal 
     Credit Reform Act; and
       (ii) $500,000 shall be available to the Secretary to pay 
     for the cost of implementing the fishing capacity reduction 
     program required by this subsection.
       (C) The funds described in this subsection shall remain 
     available, without fiscal year limitation, until expended. 
     Any funds not used for the fishing capacity reduction program 
     required by this subsection, whether due to a rejection by 
     referendum or otherwise, shall be available on or after 
     October 15, 2002, without fiscal year limitation, for 
     assistance to fishermen or fishing communities.
       (5)(A) The Secretary of Transportation shall, upon 
     notification and request by the Secretary, for each vessel 
     identified in such notification and request--

[[Page 26853]]

       (i) permanently revoke any fishery endorsement issued to 
     such vessel under section 12108 of title 46, United States 
     Code; and
       (ii) refuse to grant the approval required under section 
     9(c)(2) of the Shipping Act, 1916 (46 U.S.C. App. 808(c)(2)) 
     for the placement of such vessel under foreign registry or 
     the operation of such vessel under the authority of a foreign 
     country.
       (B) The Secretary shall, after notice and opportunity for 
     public comment, adopt final regulations not later than May 1, 
     2001 to prohibit any vessel for which a reduction permit is 
     surrendered and revoked under the fishing capacity reduction 
     program required by this section from engaging in fishing 
     activities on the high seas or under the jurisdiction of any 
     foreign country while operating under the United States flag.
       (6) The purpose of this subsection is to implement a 
     fishing capacity reduction program for the BSAI crab 
     fisheries that results in final action to permanently remove 
     harvesting capacity from such fisheries prior to December 31, 
     2001. In implementing this subsection the Secretary is 
     directed to use, to the extent practicable, information 
     collected and maintained by the State of Alaska. Any 
     requirements of the Paperwork Reduction Act, the Regulatory 
     Flexibility Act, or any Executive Order that would, in the 
     opinion of the Secretary, prevent the Secretary from meeting 
     the deadlines set forth in this subsection shall not apply to 
     the fishing capacity reduction program or the promulgation of 
     regulations to implement such program required by this 
     subsection. Nothing in this subsection shall be construed to 
     prohibit the North Pacific Fishery Management Council from 
     recommending, or the Secretary from approving, changes to any 
     Fishery Management Plan, License Limitation Program, or 
     American Fisheries Act provisions affecting catcher vessel 
     sideboards in accordance with applicable law: Provided, That 
     except as specifically provided in this subsection, such 
     Council may not recommend, and the Secretary may not approve, 
     any action that would have the effect of increasing the 
     number of vessels eligible to participate in the BSAI crab 
     fisheries after March 1, 2001.
       (e)(1) This subsection may be referred to as the ``Pribilof 
     Islands Transition Act''.
       (2) The purpose of this subsection is to complete the 
     orderly withdrawal of the National Oceanic and Atmospheric 
     Administration from the civil administration of the Pribilof 
     Islands, Alaska.
       (3) Public Law 89-702 (16 U.S.C. 1151 et seq.), popularly 
     known and referred to in this subsection as the Fur Seal Act 
     of 1966, is amended by amending section 206 (16 U.S.C. 1166) 
     to read as follows:
       ``Sec. 206. (a)(1) Subject to the availability of 
     appropriations, the Secretary shall provide financial 
     assistance to any city government, village corporation, or 
     tribal council of St. George, Alaska, or St. Paul, Alaska.
       ``(2) Notwithstanding any other provision of law relating 
     to matching funds, funds provided by the Secretary as 
     assistance under this subsection may be used by the entity as 
     non-Federal matching funds under any Federal program that 
     requires such matching funds.
       ``(3) The Secretary may not use financial assistance 
     authorized by this Act--
       ``(A) to settle any debt owed to the United States;
       ``(B) for administrative or overhead expenses; or
       ``(C) for contributions sought or required from any person 
     for costs or fees to clean up any matter that was caused or 
     contributed to by such person on or after March 15, 2000.
       ``(4) In providing assistance under this subsection the 
     Secretary shall transfer any funds appropriated to carry out 
     this section to the Secretary of the Interior, who shall 
     obligate such funds through instruments and procedures that 
     are equivalent to the instruments and procedures required to 
     be used by the Bureau of Indian Affairs pursuant to title IV 
     of the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450 et seq.).
       ``(5) In any fiscal year for which less than all of the 
     funds authorized under subsection (c)(1) are appropriated, 
     such funds shall be distributed under this subsection on a 
     pro rata basis among the entities referred to in subsection 
     (c)(1) in the same proportions in which amounts are 
     authorized by that subsection for grants to those entities.
       ``(b)(1) Subject to the availability of appropriations, the 
     Secretary shall provide assistance to the State of Alaska for 
     designing, locating, constructing, redeveloping, permitting, 
     or certifying solid waste management facilities on the 
     Pribilof Islands to be operated under permits issued to the 
     City of St. George and the City of St. Paul, Alaska, by the 
     State of Alaska under section 46.03.100 of the Alaska 
     Statutes.
       ``(2) The Secretary shall transfer any appropriations 
     received under paragraph (1) to the State of Alaska for the 
     benefit of rural and Native villages in Alaska for obligation 
     under section 303 of Public Law 104-182, except that 
     subsection (b) of that section shall not apply to those 
     funds.
       ``(3) In order to be eligible to receive financial 
     assistance under this subsection, not later than 180 days 
     after the date of enactment of this paragraph, each of the 
     Cities of St. Paul and St. George shall enter into a written 
     agreement with the State of Alaska under which such City 
     shall identify by its legal boundaries the tract or tracts of 
     land that such City has selected as the site for its solid 
     waste management facility and any supporting infrastructure.
       ``(c) There are authorized to be appropriated to the 
     Secretary for fiscal years 2001, 2002, 2003, 2004, and 2005--
       ``(1) for assistance under subsection (a) a total not to 
     exceed--
       ``(A) $9,000,000, for grants to the City of St. Paul;
       ``(B) $6,300,000, for grants to the Tanadgusix Corporation;
       ``(C) $1,500,000, for grants to the St. Paul Tribal 
     Council;
       ``(D) $6,000,000, for grants to the City of St. George;
       ``(E) $4,200,000, for grants to the St. George Tanaq 
     Corporation; and
       ``(F) $1,000,000, for grants to the St. George Tribal 
     Council; and
       ``(2) for assistance under subsection (b), for fiscal years 
     2001, 2002, 2003, 2004, and 2005 a total not to exceed--
       ``(A) $6,500,000 for the City of St. Paul; and
       ``(B) $3,500,000 for the City of St. George.
       ``(d) None of the funds authorized by this section may be 
     available for any activity a purpose of which is to influence 
     legislation pending before the Congress, except that this 
     subsection shall not prevent officers or employees of the 
     United States or of its departments, agencies, or commissions 
     from communicating to Members of Congress, through proper 
     channels, requests for legislation or appropriations that 
     they consider necessary for the efficient conduct of public 
     business.
       ``(e) Neither the United States nor any of its agencies, 
     officers, or employees shall have any liability under this 
     Act or any other law associated with or resulting from the 
     designing, locating, contracting for, redeveloping, 
     permitting, certifying, operating, or maintaining any solid 
     waste management facility on the Pribilof Islands as a 
     consequence of--
       ``(1) having provided assistance to the State of Alaska 
     under subsection (b); or
       ``(2) providing funds for, or planning, constructing, or 
     operating, any interim solid waste management facilities that 
     may be required by the State of Alaska before permanent solid 
     waste management facilities constructed with assistance 
     provided under subsection (b) are complete and operational.
       ``(f) Each entity which receives assistance authorized 
     under subsection (c) shall submit an audited statement 
     listing the expenditure of that assistance to the Committee 
     on Appropriations and the Committee on Resources of the House 
     of Representatives and the Committee on Appropriations and 
     the Committee on Commerce, Science, and Transportation of the 
     Senate, on the last day of fiscal years 2002, 2004, and 2006.
       ``(g) Amounts authorized under subsection (c) are intended 
     by Congress to be provided in addition to the base funding 
     appropriated to the National Oceanic and Atmospheric 
     Administration in fiscal year 2000.''.
       (4) Section 205 of the Fur Seal Act of 1966 (16 U.S.C. 
     1165) is amended--
       (A) by amending subsection (c) to read as follows:
       ``(c) Not later than 3 months after the date of the 
     enactment of the Pribilof Islands Transition Act, the 
     Secretary shall submit to the Committee on Commerce, Science, 
     and Transportation of the Senate and the Committee on 
     Resources of the House of Representatives a report that 
     includes--
       ``(1) a description of all property specified in the 
     document referred to in subsection (a) that has been conveyed 
     under that subsection;
       ``(2) a description of all Federal property specified in 
     the document referred to in subsection (a) that is going to 
     be conveyed under that subsection; and
       ``(3) an identification of all Federal property on the 
     Pribilof Islands that will be retained by the Federal 
     Government to meet its responsibilities under this Act, the 
     Convention, and any other applicable law.''; and
       (B) by striking subsection (g).
       (5)(A)(i) The Secretary of Commerce shall not be considered 
     to have any obligation to promote or otherwise provide for 
     the development of any form of an economy not dependent on 
     sealing on the Pribilof Islands, Alaska, including any 
     obligation under section 206 of the Fur Seal Act of 1966 (16 
     U.S.C. 1166) or section 3(c)(1)(A) of Public Law 104-91 (16 
     U.S.C. 1165 note).
       (ii) This subparagraph shall not affect any cause of action 
     under section 206 of the Fur Seal Act of 1966 (16 U.S.C. 
     1166) or section 3(c)(1)(A) of Public Law 104-91 (16 U.S.C. 
     1165 note)--
       (I) that arose before the date of the enactment of this 
     title; and
       (II) for which a judicial action is filed before the 
     expiration of the 5-year period beginning on the date of the 
     enactment of this title.
       (iii) Nothing in this subsection shall be construed to 
     imply that--
       (I) any obligation to promote or otherwise provide for the 
     development in the Pribilof Islands of any form of an economy 
     not dependent on sealing was or was not established by 
     section 206 of the Fur Seal Act of 1966 (16 U.S.C. 1166), 
     section 3(c)(1)(A) of Public Law 104-91 (16 U.S.C. 1165 
     note), or any other provision of law; or
       (II) any cause of action could or could not arise with 
     respect to such an obligation.
       (iv) Section 3(c)(1) of Public Law 104-91 (16 U.S.C. 1165 
     note) is amended by striking subparagraph (A) and 
     redesignating subparagraphs (B) through (D) in order as 
     subparagraphs (A) through (C).
       (B)(i) Subject to paragraph (5)(B)(ii), there are 
     terminated all obligations of the Secretary of Commerce and 
     the United States to--
       (I) convey property under section 205 of the Fur Seal Act 
     of 1966 (16 U.S.C. 1165); and

[[Page 26854]]

       (II) carry out cleanup activities, including assessment, 
     response, remediation, and monitoring, except for 
     postremedial measures such as monitoring and operation and 
     maintenance activities related to National Oceanic and 
     Atmospheric Administration administration of the Pribilof 
     Islands, Alaska, under section 3 of Public Law 104-91 (16 
     U.S.C. 1165 note) and the Pribilof Islands Environmental 
     Restoration Agreement between the National Oceanic and 
     Atmospheric Administration and the State of Alaska, signed 
     January 26, 1996.
       (ii) Paragraph (5)(B)(i) shall apply on and after the date 
     on which the Secretary of Commerce certifies that--
       (I) the State of Alaska has provided written confirmation 
     that no further corrective action is required at the sites 
     and operable units covered by the Pribilof Islands 
     Environmental Restoration Agreement between the National 
     Oceanic and Atmospheric Administration and the State of 
     Alaska, signed January 26, 1996, with the exception of 
     postremedial measures, such as monitoring and operation and 
     maintenance activities;
       (II) the cleanup required under section 3(a) of Public Law 
     104-91 (16 U.S.C. 1165 note) is complete;
       (III) the properties specified in the document referred to 
     in subsection (a) of section 205 of the Fur Seal Act of 1966 
     (16 U.S.C. 1165(a)) can be unconditionally offered for 
     conveyance under that section; and
       (IV) all amounts appropriated under section 206(c)(1) of 
     the Fur Seal Act of 1966, as amended by this title, have been 
     obligated.
       (iii)(I) On and after the date on which section 3(b)(5) of 
     Public Law 104-91 (16 U.S.C. 1165 note) is repealed pursuant 
     to subparagraph (C), the Secretary of Commerce may not seek 
     or require financial contribution by or from any local 
     governmental entity of the Pribilof Islands, any official of 
     such an entity, or the owner of land on the Pribilof Islands, 
     for cleanup costs incurred pursuant to section 3(a) of Public 
     Law 104-91 (as in effect before such repeal), except as 
     provided in subparagraph (B)(iii)(II).
       (II) Subparagraph (B)(iii)(I) shall not limit the authority 
     of the Secretary of Commerce to seek or require financial 
     contribution from any person for costs or fees to clean up 
     any matter that was caused or contributed to by such person 
     on or after March 15, 2000.
       (iv) For purposes of paragraph (2)(C), the following 
     requirements shall not be considered to be conditions on 
     conveyance of property:
       (I) Any requirement that a potential transferee must allow 
     the National Oceanic and Atmospheric Administration continued 
     access to the property to conduct environmental monitoring 
     following remediation activities.
       (II) Any requirement that a potential transferee must allow 
     the National Oceanic and Atmospheric Administration access to 
     the property to continue the operation, and eventual closure, 
     of treatment facilities.
       (III) Any requirement that a potential transferee must 
     comply with institutional controls to ensure that an 
     environmental cleanup remains protective of human health or 
     the environment that do not unreasonably affect the use of 
     the property.
       (IV) Valid existing rights in the property, including 
     rights granted by contract, permit, right-of-way, or 
     easement.
       (V) The terms of the documents described in subparagraph 
     (d)(2).
       (C) Effective on the date on which the Secretary of 
     Commerce makes the certification described in subparagraph 
     (b)(2), the following provisions are repealed:
       (i) Section 205 of the Fur Seal Act of 1966 (16 U.S.C. 
     1165).
       (ii) Section 3 of Public Law 104-91 (16 U.S.C. 1165 note).
       (D)(i) Nothing in this subsection shall affect any 
     obligation of the Secretary of Commerce, or of any Federal 
     department or agency, under or with respect to any document 
     described in subparagraph (D)(ii) or with respect to any 
     lands subject to such a document.
       (ii) The documents referred to in subparagraph (D)(i) are 
     the following:
       (I) The Transfer of Property on the Pribilof Islands: 
     Description, Terms, and Conditions, dated February 10, 1984, 
     between the Secretary of Commerce and various Pribilof Island 
     entities.
       (II) The Settlement Agreement between Tanadgusix 
     Corporation and the City of St. Paul, dated January 11, 1988, 
     and approved by the Secretary of Commerce on February 23, 
     1988.
       (III) The Memorandum of Understanding between Tanadgusix 
     Corporation, Tanaq Corporation, and the Secretary of 
     Commerce, dated December 22, 1976.
       (E)(i) Except as provided in subparagraph (E)(ii), the 
     definitions set forth in section 101 of the Fur Seal Act of 
     1966 (16 U.S.C. 1151) shall apply to this paragraph.
       (ii) For purposes of this paragraph, the term ``Natives of 
     the Pribilof Islands'' includes the Tanadgusix Corporation, 
     the St. George Tanaq Corporation, and the city governments 
     and tribal councils of St. Paul and St. George, Alaska.
       (6)(A) Section 3 of Public Law 104-91 (16 U.S.C. 1165 note) 
     and the Fur Seal Act of 1966 (16 U.S.C. 1151 et seq.) are 
     amended by--
       (i) striking ``(d)'' and all that follows through the 
     heading for subsection (d) of section 3 of Public Law 104-91 
     and inserting ``SEC. 212.''; and
       (ii) moving and redesignating such subsection so as to 
     appear as section 212 of the Fur Seal Act of 1966.
       (B) Section 201 of the Fur Seal Act of 1966 (16 U.S.C. 
     1161) is amended by striking ``on such Islands'' and insert 
     ``on such property''.
       (C) The Fur Seal Act of 1966 (16 U.S.C. 1151 et seq.) is 
     amended by inserting before title I the following:
       ``Section 1. This Act may be cited as the `Fur Seal Act of 
     1966'.''.
       (7) Section 3 of Public Law 104-91 (16 U.S.C. 1165 note) is 
     amended--
       (A) by striking subsection (f) and inserting the following:
       ``(f)(1) There are authorized to be appropriated 
     $10,000,000 for each of fiscal years 2001, 2002, 2003, 2004, 
     and 2005 for the purposes of carrying out this section.
       ``(2) None of the funds authorized by this subsection may 
     be expended for the purpose of cleaning up or remediating any 
     landfills, wastes, dumps, debris, storage tanks, property, 
     hazardous or unsafe conditions, or contaminants, including 
     petroleum products and their derivatives, left by the 
     Department of Defense or any of its components on lands on 
     the Pribilof Islands, Alaska.''; and
       (B) by adding at the end the following:
       ``(g)(1) Of amounts authorized under subsection (f) for 
     each of fiscal years 2001, 2002, 2003, 2004, and 2005, the 
     Secretary may provide to the State of Alaska up to $2,000,000 
     per fiscal year to capitalize a revolving fund to be used by 
     the State for loans under this subsection.
       ``(2) The Secretary shall require that any revolving fund 
     established with amounts provided under this subsection shall 
     be used only to provide low-interest loans to Natives of the 
     Pribilof Islands to assess, respond to, remediate, and 
     monitor contamination from lead paint, asbestos, and 
     petroleum from underground storage tanks.
       ``(3) The definitions set forth in section 101 of the Fur 
     Seal Act of 1966 (16 U.S.C. 1151) shall apply to this 
     section, except that the term `Natives of the Pribilof 
     Islands' includes the Tanadgusix and Tanaq Corporations.
       ``(4) Before the Secretary may provide any funds to the 
     State of Alaska under this section, the State of Alaska and 
     the Secretary must agree in writing that, on the last day of 
     fiscal year 2011, and of each fiscal year thereafter until 
     the full amount provided to the State of Alaska by the 
     Secretary under this section has been repaid to the United 
     States, the State of Alaska shall transfer to the Treasury of 
     the United States monies remaining in the revolving fund, 
     including principal and interest paid into the revolving fund 
     as repayment of loans.''.
       (f)(1) The President, after consultation with the Governor 
     of the State of Hawaii, may designate any Northwestern 
     Hawaiian Islands coral reef or coral reef ecosystem as a 
     coral reef reserve to be managed by the Secretary of 
     Commerce.
       (2) Upon the designation of a reserve under paragraph (1) 
     by the President, the Secretary shall--
       (A) take action to initiate the designation of the reserve 
     as a National Marine Sanctuary under sections 303 and 304 of 
     the National Marine Sanctuaries Act (16 U.S.C. 1433);
       (B) establish a Northwestern Hawaiian Islands Reserve 
     Advisory Council under section 315 of that Act (16 U.S.C. 
     1445a), the membership of which shall include at least 1 
     representative from Native Hawaiian groups; and
       (C) until the reserve is designated as a National Marine 
     Sanctuary, manage the reserve in a manner consistent with the 
     purposes and policies of that Act.
       (3) Notwithstanding any other provision of law, no closure 
     areas around the Northwestern Hawaiian Islands shall become 
     permanent without adequate review and comment.
       (4) The Secretary shall work with other Federal agencies 
     and the Director of the National Science Foundation, to 
     develop a coordinated plan to make vessels and other 
     resources available for conservation or research activities 
     for the reserve.
       (5) If the Secretary has not designated a national marine 
     sanctuary in the Northwestern Hawaiian Islands under sections 
     303 and 304 of the National Marine Sanctuaries Act (16 U.S.C. 
     1433, 1434) before October 1, 2005, the Secretary shall 
     conduct a review of the management of the reserve under 
     section 304(e) of that Act (16 U.S.C. 1434(e)).
       (6) No later than 6 months after the date of enactment of 
     this Act, the Secretary shall submit a report to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Resources, describing 
     actions taken to implement this subsection, including costs 
     of monitoring, enforcing, and addressing marine debris, and 
     the extent to which the fiscal or other resources necessary 
     to carry out this subsection are reflected in the Budget of 
     the United States Government submitted by the President under 
     section 1104 of title 31, United States Code.
       (7) There are authorized to be appropriated to the 
     Secretary of Commerce to carry out the provisions of this 
     subsection such sums, not exceeding $4,000,000 for each of 
     fiscal years 2001, 2002, 2003, 2004, and 2005, as are 
     reported under paragraph (5) to be reflected in the Budget of 
     the United States Government.
       (g) Section 111(b)(1) of the Sustainable Fisheries Act (16 
     U.S.C. 1855 nt) is amended by striking the last sentence and 
     inserting, ``There are authorized to be appropriated to carry 
     out this subsection $500,000 for each fiscal year.''.
       Sec. 145. (a) Section 4(b)(1) of the Department of State 
     Special Agents Retirement Act of 1998 (22 U.S.C. 4044 note; 
     Public Law 105-382; 112 Stat. 3409) is amended by inserting 
     ``or participant who was serving as of January 1, 1997'' 
     after ``employed participant''.
       (b) The amendment made by this section shall take effect on 
     January 1, 2001.

[[Page 26855]]

       Sec. 146. (a) Congress makes the following findings:
       (1) Total steel imports in 2000 will be over 2\1/2\ times 
     higher than in 1991, continuing the alarming trend of sharply 
     increasing steel imports over the past decade.
       (2) Unprecedented levels of steel imports flooded the 
     United States market in 1998 and 1999, causing a crisis in 
     which thousands of steelworkers were laid off and 6 steel 
     companies went bankrupt.
       (3) The domestic steel industry still has not had an 
     opportunity to recover from the 1998-1999 steel import 
     crisis, and steel imports are again causing serious injury to 
     United States steel producers and workers.
       (4) Total steel imports through August 2000 are 17 percent 
     higher than over the same period in 1999 and greater even 
     than imports over the same period in 1998, a record year.
       (5) Steel prices continue to be depressed, with hot-rolled 
     steel prices 12 percent lower in August 2000 than in the 
     first quarter of 1998, and average import customs values for 
     all steel products more than 15 percent lower over the same 
     period.
       (6) The United States Government must maintain and fully 
     enforce all existing relief against foreign unfair trade.
       (7) The United States steel industry is a clean, highly 
     efficient industry having modernized itself at great human 
     and financial cost, shedding over 330,000 jobs and investing 
     more than $50,000,000,000 over the last 20 years.
       (8) Capacity utilization in the United States steel 
     industry has fallen sharply since the beginning of the year 
     and the market capitalization and debt ratings of the major 
     United States steel firms are at precarious levels.
       (9) The Department of Commerce recently documented the 
     underlying market-distorting practices and longstanding 
     structural problems that plague the global steel trade with 
     excess capacity and cause diversion of unfairly traded 
     foreign steel to the United States.
       (10) The President recognized that unfair trade played a 
     significant role in the devastating import surge of steel and 
     recognized the need to vigorously enforce the trade laws.
       (b) Congress calls upon the President--
       (1) to take all appropriate action within his power to 
     provide relief from injury caused by steel imports; and
       (2) to immediately request the United States International 
     Trade Commission to commence an expedited investigation for 
     positive adjustment under section 201 of the Trade Act of 
     1974 of such steel imports.
       Sec. 147. Section 5(b)(1) of the Act of January 2, 1951 (15 
     U.S.C. 1175(b)(1); popularly known as the ``Johnson Act'') is 
     amended by inserting ``for a voyage or a segment of a voyage 
     that begins and ends in the State of Hawaii, or'' after 
     ``Except''.
       Sec. 148. (a) Section 312(a)(7) of the Communications Act 
     of 1934 (47 U.S.C. 312(a)(7)) is amended by inserting ``, 
     other than a non-commercial educational broadcast station,'' 
     after ``use of a broadcasting station''.
       (b) The Federal Communications Commission shall take no 
     action against any non-commercial educational broadcast 
     station which declines to carry a political advertisement.
       Sec. 149. The Small Business Innovation Research program, 
     otherwise expiring at the end of fiscal year 2000, is 
     authorized to continue in effect during fiscal year 2001.
       Sec. 150. There is hereby appropriated for payment to the 
     Ricky Ray Hemophilia Relief Fund, as provided by Public Law 
     105-369, $105,000,000, of which notwithstanding any other 
     provision of law $10,000,000 shall be for program management 
     of the Health Resources and Services Administration, to 
     remain available until expended.
       Sec. 151. (a) There is hereby appropriated to a separate 
     account to be established in the Department of Labor for 
     expenses of administering the Energy Employees Occupational 
     Illness Compensation Act, $60,400,000, to remain available 
     until expended: Provided, That the Secretary of Labor is 
     authorized to transfer to any Executive agency with authority 
     under the Energy Employees Occupational Illness Compensation 
     Act, such sums as may be necessary in FY 2001 to carry out 
     those authorities.
       (b) For purposes of the Balanced Budget and Emergency 
     Deficit Control Act of 1985, amounts appropriated under 
     subsection (a) shall be direct spending: Provided, That 
     amounts appropriated annually thereafter for such 
     administrative expenses shall be direct spending.
       Sec. 152. Treatment of Certain Cancer Hospitals. (a) In 
     General.--Section 1886(d)(1)(B)(v) of the Social Security Act 
     (42 U.S.C. 1395ww(d)(1)(B)(v)) is amended--
       (1) in subclause (I) by striking ``or'' at the end;
       (2) in subclause (II) by striking the semicolon at the end 
     and inserting ``, or''; and
       (3) by adding at the end the following:
       ``(III) a hospital that was recognized as a clinical cancer 
     research center by the National Cancer Institute of the 
     National Institutes of Health as of February 18, 1998, that 
     has never been reimbursed for inpatient hospital services 
     pursuant to a reimbursement system under a demonstration 
     project under section 1814(b), that is a freestanding 
     facility organized primarily for treatment of and research on 
     cancer and is not a unit of another hospital, that as of the 
     date of the enactment of this subclause, is licensed for 162 
     acute care beds, and that demonstrates for the 4-year period 
     ending on June 30, 1999, that at least 50 percent of its 
     total discharges have a principal finding of neoplastic 
     disease, as defined in subparagraph (E);'' and
       (b) Conforming Amendment.--Section 1886(d)(1)(E) of the 
     Social Security Act (42 U.S.C. 1395ww(d)(1)(E)) is amended by 
     striking ``For purposes of subparagraph (B)(v)(II)'' and 
     inserting ``For purposes of subclauses (II) and (III) of 
     subparagraph (B)(v)''.
       (c) Payment.--
       (1) Application to cost reporting periods.--Any 
     classification by reason of section 1886(d)(1)(B)(v)(III) of 
     the Social Security Act (as added by subsection (a)) shall 
     apply to 12-month cost reporting periods beginning on or 
     after July 1, 1999.
       (2) Base year.--Notwithstanding the provisions of section 
     1886(b)(3)(E) of such Act (42 U.S.C. 1395ww(b)(3)(E)) or 
     other provisions to the contrary, the base cost reporting 
     period for purposes of determining the target amount for any 
     hospital classified by reason of section 
     1886(d)(1)(B)(v)(III) of such Act (as added by subsection 
     (a)) shall be the 12-month cost reporting period beginning on 
     July 1, 1995.
       (3) Deadline for payments.--Any payments owed to a hospital 
     by reason of this subsection shall be made expeditiously, but 
     in no event later than 1 year after the date of the enactment 
     of this Act.
       Sec. 153. (a) Section 4(2) of the Delta Development Act (42 
     U.S.C. 3121 note; Public Law 100-460) is amended--
       (1) by inserting ``Alabama,'' before ``Arkansas'';
       (2) in paragraph (G), by striking ``and'' at the end;
       (3) in paragraph (H)--
       (A) by striking ``and'' before ``such''; and
       (B) by inserting ``and'' after the semicolon at the end; 
     and
       (4) by adding at the end the following:
       ``(I) the Alabama counties of Pickens, Greene, Sumter, 
     Choctaw, Clarke, Washington, Marengo, Hale, Perry, Wilcox, 
     Lowndes, Bullock, Macon, Barbour, Russell, and Dallas;'';
       (b) At the end of section 382A of ``The Delta Regional 
     Authority Act of 2000'' as incorporated in this Act, insert 
     the following:
       ``(4) Notwithstanding any other provision of law, the State 
     of Alabama shall be a full member of the Delta Regional 
     Authority and shall be entitled to all rights and privileges 
     that said membership affords to all other participating 
     States in the Delta Regional Authority.''.

     SEC. 154. NORTHERN WISCONSIN.

       (a) Definition of Northern Wisconsin.--In this section, the 
     term ``northern Wisconsin'' means the counties of Douglas, 
     Ashland, Bayfield, and Iron, Wisconsin.
       (b) Establishment of Program.--The Secretary of the Army 
     may establish a pilot program to provide environmental 
     assistance to non-Federal interests in northern Wisconsin.
       (c) Form of Assistance.--Assistance under this section may 
     be in the form of design and reconstruction assistance or 
     water-related environmental infrastructure and resource 
     protection and development projects in northern Wisconsin, 
     including projects for wastewater treatment and related 
     facilities, water supply and related facilities, 
     environmental restoration, and surface water resource 
     protection and development.
       (d) Public Ownership Requirement.--The Secretary may 
     provide assistance for a project under this section only if 
     the project is publicly owned.
       (e) Local Cooperation Agreement.--
       (1) In general.--Before providing assistance under this 
     section, the Secretary shall enter into a local cooperation 
     agreement with a non-Federal interest to provide for design 
     and construction of the project to be carried out with the 
     assistance.
       (2) Requirements.--Each local cooperation agreement entered 
     into under this subsection shall provide for the following:
       (A) Plan.--Development by the Secretary, in consultation 
     with appropriate Federal and State officials, of a facilities 
     or restructure protection and development plan, including 
     appropriate engineering plans and specifications.
       (B) Legal and Institutional Structures.--Establishment of 
     such legal and institutional structures as are necessary to 
     ensure the effective long-term operation of the project by 
     the non-Federal interest.
       (3) Cost sharing.--
       (A) In general.--The Federal share of project costs under 
     each local cooperation agreement entered into under this 
     subsection shall be 75 percent. The Federal share may be in 
     the form of grants or reimbursements of project costs.
       (B) Credit for design work.--The non-Federal interest shall 
     receive credit for the reasonable costs of design work 
     completed by the non-Federal interest before entering into a 
     local cooperation agreement with the Secretary for a project. 
     The credit for the design work shall not exceed 6 percent of 
     the local construction costs of the project.
       (C) Credit for interest.--In case of a delay in the funding 
     of the non-Federal share of the costs of a project that is 
     the subject of an agreement under this subsection, the non-
     Federal interest shall receive credit for reasonable interest 
     incurred in providing the non-Federal share of the project's 
     costs.
       (D) Land, easements, and rights-of-way credit.--The non-
     Federal interest shall receive credit for land, easements, 
     rights-of-way, and reductions toward the non-Federal share of 
     project costs (including all reasonable costs associated with 
     obtaining permits necessary for the construction, operation, 
     and maintenance of the project on publicly owned or 
     controlled land), but not to exceed 25 percent of the total 
     project costs.
       (E) Operation and maintenance.--The non-Federal share of 
     operation and maintenance

[[Page 26856]]

     costs for projects constructed with assistance provided under 
     this section shall be 100 percent.
       (f) Applicability of Other Federal And State Laws.--Nothing 
     in this section waives, limits, or otherwise affects the 
     applicability of any provision of Federal or State law that 
     would otherwise apply to a project to be carried out with 
     assistance provided under this section.
       (g) Report.--Not later than December 31, 2001, the 
     Secretary shall transmit to Congress a report on the results 
     of the pilot program carried out under this section, 
     including recommendations concerning whether the program 
     should be implemented on a national basis.
       (h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $40,000,000. 
     Such sums shall remain available until expended.

           TITLE II--VIETNAM EDUCATION FOUNDATION ACT OF 2000

     SECTION 201. SHORT TITLE.

       This title may be cited as the ``Vietnam Education 
     Foundation Act of 2000''.

     SEC. 202. PURPOSES.

       The purposes of this title are the following:
       (1) To establish an international fellowship program under 
     which--
       (A) Vietnamese nationals can undertake graduate and post-
     graduate level studies in the sciences (natural, physical, 
     and environmental), mathematics, medicine, and technology 
     (including information technology); and
       (B) United States citizens can teach in the fields 
     specified in subparagraph (A) in appropriate Vietnamese 
     institutions.
       (2) To further the process of reconciliation between the 
     United States and Vietnam and the building of a bilateral 
     relationship serving the interests of both countries.

     SEC. 203. DEFINITIONS.

       In this title:
       (1) Board.--The term ``Board'' means the Board of Directors 
     of the Foundation.
       (2) Foundation.--The term ``Foundation'' means the Vietnam 
     Education Foundation established in section 204.
       (3) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a)).
       (4) United states-vietnam debt agreement.--The term 
     ``United States-Vietnam debt agreement'' means the Agreement 
     Between the Government of the United States of America and 
     the Government of the Socialist Republic of Vietnam Regarding 
     the Consolidation and Rescheduling of Certain Debts Owed to, 
     Guaranteed by, or Insured by the United States Government and 
     the Agency for International Development, dated April 7, 
     1997.

     SEC. 204. ESTABLISHMENT.

       There is established the Vietnam Education Foundation as an 
     independent establishment of the executive branch under 
     section 104 of title 5, United States Code.

     SEC. 205. BOARD OF DIRECTORS.

       (a) In General.--The Foundation shall be subject to the 
     supervision and direction of the Board of Directors, which 
     shall consist of 13 members, as follows:
       (1) Two members of the House of Representatives appointed 
     by the Speaker of the House of Representatives, one of whom 
     shall be appointed upon the recommendation of the Majority 
     Leader and one of whom shall be appointed upon the 
     recommendation of the Minority Leader, and who shall serve as 
     ex officio, nonvoting members.
       (2) Two members of the Senate, appointed by the President 
     pro tempore, one of whom shall be appointed upon the 
     recommendation of the Majority Leader and one of whom shall 
     be appointed upon the recommendation of the Minority Leader, 
     and who shall serve as ex officio, nonvoting members.
       (3) Secretary of State.
       (4) Secretary of Education.
       (5) Secretary of Treasury.
       (6) Six members to be appointed by the President from among 
     individuals in the nongovernmental sector who have academic 
     excellence or experience in the fields of concentration 
     specified in section 202(1)(A) or a general knowledge of 
     Vietnam, not less than three of whom shall be drawn from 
     academic life.
       (b) Rotation of Membership.--(1) The term of office of each 
     member appointed under subsection (a)(6) shall be 3 years, 
     except that of the members initially appointed under that 
     subsection, two shall serve for terms of one year, two shall 
     serve for terms of two years, and two shall serve for terms 
     of three years.
       (2) A member of Congress appointed under subsection (a)(1) 
     or (2) shall not serve as a member of the Board for more than 
     a total of six years.
       (c) Chair.--The Board shall elect one of the members 
     appointed under subsection (a)(6) to serve as Chair.
       (d) Meetings.--The Board shall meet upon the call of the 
     Chair but not less frequently than twice each year. A 
     majority of the voting members of the Board shall constitute 
     a quorum.
       (e) Duties.--The Board shall--
       (1) select the individuals who will be eligible to serve as 
     Fellows; and
       (2) provide overall supervision and direction of the 
     Foundation.
       (f) Compensation.--
       (1) In general.--Except as provided in paragraph (2), each 
     member of the Board shall serve without compensation, and 
     members who are officers or employees of the United States 
     shall serve without compensation in addition to that received 
     for their services as officers or employees of the United 
     States.
       (2) Travel expenses.--The members of the Board shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of service for the Board.

     SEC. 206. FELLOWSHIP PROGRAM.

       (a) Award of Fellowships.--
       (1) In general.--To carry out the purposes of this title, 
     the Foundation shall award fellowships to--
       (A) Vietnamese nationals to study at institutions of higher 
     education in the United States at graduate and post-graduate 
     levels in the following fields: physical sciences, natural 
     sciences, mathematics, environmental sciences, medicine, 
     technology, and computer sciences; and
       (B) United States citizens to teach in Vietnam in 
     appropriate Vietnamese institutions in the fields of study 
     described in subparagraph (A).
       (2) Special emphasis on scientific and technical vocabulary 
     in english.--Fellowships awarded under paragraph (1) may 
     include funding for the study of scientific and technical 
     vocabulary in English.
       (b) Criteria for Selection.--Fellowships under this title 
     shall be awarded to persons who meet the minimum criteria 
     established by the Foundation, including the following:
       (1) Vietnamese nationals.--Vietnamese candidates for 
     fellowships shall have basic English proficiency and must 
     have the ability to meet the criteria for admission into 
     graduate or post-graduate programs in United States 
     institutions of higher learning.
       (2) United states citizen teachers.--American teaching 
     candidates shall be highly competent in their fields and be 
     experienced and proficient teachers.
       (c) Implementation.--The Foundation may provide, directly 
     or by contract, for the conduct of nationwide competition for 
     the purpose of selecting recipients of fellowships awarded 
     under this section.
       (d) Authority To Award Fellowships on a Matching Basis.--
     The Foundation may require, as a condition of the 
     availability of funds for the award of a fellowship under 
     this title, that an institution of higher education make 
     available funds for such fellowship on a matching basis.
       (e) Fellowship Conditions.--A person awarded a fellowship 
     under this title may receive payments authorized under this 
     title only during such periods as the Foundation finds that 
     the person is maintaining satisfactory proficiency and 
     devoting full time to study or teaching, as appropriate, and 
     is not engaging in gainful employment other than employment 
     approved by the Foundation pursuant to regulations of the 
     Board.
       (f) Funding.--
       (1) Fiscal year 2001.--
       (A) Authorization of appropriations.--There are authorized 
     to be appropriated to the Foundation $5,000,000 for fiscal 
     year 2001 to carry out the activities of the Foundation.
       (B) Availability of funds.--Amounts appropriated pursuant 
     to subparagraph (A) are authorized to remain available until 
     expended.
       (2) Fiscal year 2002 and subsequent fiscal years.--
     Effective October 1, 2001, the Foundation shall utilize funds 
     transferred to the Foundation under section __07.

     SEC. 207. VIETNAM DEBT REPAYMENT FUND.

       (a) Establishment.--Notwithstanding any other provision of 
     law, there is established in the Treasury a separate account 
     which shall be known as the Vietnam Debt Repayment Fund (in 
     this subsection referred to as the ``Fund'').
       (b) Deposits.--There shall be deposited as offsetting 
     receipts into the Fund all payments (including interest 
     payments) made by the Socialist Republic of Vietnam under the 
     United States-Vietnam debt agreement.
       (c) Availability of the Funds.--
       (1) Fiscal year limitation.--Beginning with fiscal year 
     2002, and each subsequent fiscal year through fiscal year 
     2018, $5,000,000 of the amounts deposited into the Fund (or 
     accrued interest) each fiscal year shall be available to the 
     Foundation, without fiscal year limitation, under paragraph 
     (2).
       (2) Disbursement of funds.--The Secretary of the Treasury, 
     at least on a quarterly basis, shall transfer to the 
     Foundation amounts allotted to the Foundation under paragraph 
     (1) for the purpose of carrying out its activities.
       (3) Transfer of excess funds to miscellaneous receipts.--
     Beginning with fiscal year 2002, and each subsequent fiscal 
     year through fiscal year 2018, the Secretary of the Treasury 
     shall withdraw from the Fund and deposit in the Treasury of 
     the United States as miscellaneous receipts all moneys in the 
     Fund in excess of amounts made available to the Foundation 
     under paragraph (1).
       (d) Annual Report.--The Board shall prepare and submit 
     annually to Congress statements of financial condition of the 
     Fund, including the beginning balance, receipts, refunds to 
     appropriations, transfers to the general fund, and the ending 
     balance.

     SEC. 208. FOUNDATION PERSONNEL MATTERS.

       (a) Appointment by Board.--There shall be an Executive 
     Secretary of the Foundation who shall be appointed by the 
     Board without regard to the provisions of title 5, United 
     States Code, or any regulation thereunder, governing 
     appointment in the competitive service. The Executive 
     Director shall be the Chief Executive Officer

[[Page 26857]]

     of the Foundation and shall carry out the functions of the 
     Foundation subject to the supervision and direction of the 
     Board. The Executive Director shall carry out such other 
     functions consistent with the provisions of this title as the 
     Board shall prescribe. The decision to employ or terminate an 
     Executive Director shall be made by an affirmative vote of at 
     least 6 of the 9 voting members of the Board.
       (b) Professional Staff.--The Executive Director shall hire 
     Foundation staff on the basis of professional and nonpartisan 
     qualifications.
       (c) Experts and Consultants.--The Executive Director may 
     procure temporary and intermittent services of experts and 
     consultants as are necessary to the extent authorized by 
     section 3109 of title 5, United States Code to carry out the 
     purposes of the Foundation.
       (d) Compensation.--The Board may fix the compensation of 
     the Executive Director and other personnel without regard to 
     the provisions of chapter 51 and subchapter III of chapter 53 
     of title V, United States Code, relating to classification of 
     positions and General Schedule pay rates, except that the 
     rate of pay for the Executive Director and other personnel 
     may not exceed the rate payable for level V of the Executive 
     Schedule under section 5316 of such title.

     SEC. 209. ADMINISTRATIVE PROVISIONS.

       (a) In General.--In order to carry out this title, the 
     Foundation may--
       (1) prescribe such regulations as it considers necessary 
     governing the manner in which its functions shall be carried 
     out;
       (2) receive money and other property donated, bequeathed, 
     or devised, without condition or restriction other than it be 
     used for the purposes of the Foundation, and to use, sell, or 
     otherwise dispose of such property for the purpose of 
     carrying out its functions;
       (3) accept and use the services of voluntary and 
     noncompensated personnel;
       (4) enter into contracts or other arrangements, or make 
     grants, to carry out the provisions of this title, and enter 
     into such contracts or other arrangements, or make such 
     grants, with the concurrence of a majority of the members of 
     the Board, without performance or other bonds and without 
     regard to section 3709 of the Revised Statutes (41 U.S.C. 5);
       (5) rent office space in the District of Columbia; and
       (6) make other necessary expenditures.
       (b) Annual Report.--The Foundation shall submit to the 
     President and to the Committee on Foreign Relations of the 
     Senate and the Committee on International Relations of the 
     House of Representatives an annual report of its operations 
     under this title.

     SEC. 210. TERMINATION.

       (a) In General.--The Foundation may not award any new 
     fellowship, or extend any existing fellowship, after 
     September 30, 2016.
       (b) Abolishment.--Effective 120 days after the expiration 
     of the last fellowship in effect under this title, the 
     Foundation is abolished.

       TITLE III--COLORADO UTE SETTLEMENT ACT AMENDMENTS OF 2000

     SECTION 301. SHORT TITLE; FINDINGS; DEFINITIONS.

       (a) Short Title.--This title may be cited as the ``Colorado 
     Ute Settlement Act Amendments of 2000''.
       (b) Findings.--Congress makes the following findings:
       (1) In order to provide for a full and final settlement of 
     the claims of the Colorado Ute Indian Tribes on the Animas 
     and La Plata Rivers, the Tribes, the State of Colorado, and 
     certain of the non-Indian parties to the Agreement have 
     proposed certain modifications to the Colorado Ute Indian 
     Water Rights Settlement Act of 1988 (Public Law 100-585; 102 
     Stat. 2973).
       (2) The claims of the Colorado Ute Indian Tribes on all 
     rivers in Colorado other than the Animas and La Plata Rivers 
     have been settled in accordance with the provisions of the 
     Colorado Ute Indian Water Rights Settlement Act of 1988 
     (Public Law 100-585; 102 Stat. 2973).
       (3) The Indian and non-Indian communities of southwest 
     Colorado and northwest New Mexico will be benefited by a 
     settlement of the tribal claims on the Animas and La Plata 
     Rivers that provides the Tribes with a firm water supply 
     without taking water away from existing uses.
       (4) The Agreement contemplated a specific timetable for the 
     delivery of irrigation and municipal and industrial water and 
     other benefits to the Tribes from the Animas-La Plata 
     Project, which timetable has not been met. The provision of 
     irrigation water can not presently be satisfied under the 
     current implementation of the Federal Water Pollution Control 
     Act (33 U.S.C. 1251 et seq.) and the Endangered Species Act 
     of 1973 (16 U.S.C. 1531 et seq.).
       (5) In order to meet the requirements of the Endangered 
     Species Act of 1973 (16 U.S.C. 1531 et seq.), and in 
     particular the various biological opinions issued by the Fish 
     and Wildlife Service, the amendments made by this title are 
     needed to provide for a significant reduction in the 
     facilities and water supply contemplated under the Agreement.
       (6) The substitute benefits provided to the Tribes under 
     the amendments made by this title, including the waiver of 
     capital costs and the provisions of funds for natural 
     resource enhancement, result in a settlement that provides 
     the Tribes with benefits that are equivalent to those that 
     the Tribes would have received under the Colorado Ute Indian 
     Water Rights Settlement Act of 1988 (Public Law 100-585; 102 
     Stat. 2973).
       (7) The requirement that the Secretary of the Interior 
     comply with the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) and other national environmental laws 
     before implementing the proposed settlement will ensure that 
     the satisfaction of the tribal water rights is accomplished 
     in an environmentally responsible fashion.
       (8) In considering the full range of alternatives for 
     satisfying the water rights claims of the Southern Ute Indian 
     Tribe and Ute Mountain Ute Indian Tribe, Congress has held 
     numerous legislative hearings and deliberations, and reviewed 
     the considerable record including the following documents:
       (A) The Final EIS No. INT-FES-80-18, dated July 1, 1980.
       (B) The Draft Supplement to the FES No. INT-DES-92-41, 
     dated October 13, 1992.
       (C) The Final Supplemental to the FES No. 96-23, dated 
     April 26, 1996;
       (D) The Draft Supplemental EIS, dated January 14, 2000.
       (E) The Final Supplemental EIS, dated July 2000.
       (F) The Record of Decision for the Settlement of the 
     Colorado Ute Indian Waters, September 25, 2000.
       (9) In the Record of Decision referred to in paragraph 
     (8)(F), the Secretary determined that the preferred 
     alternative could only proceed if Congress amended the 
     Colorado Ute Indian Water Rights Settlement Act of 1988 
     (Public Law 100-585; 102 Stat. 2973) so as to satisfy the 
     Tribal water rights claim through the construction of the 
     features authorized by this title. The amendments to the 
     Colorado Ute Indian Water Rights Settlement Act of 1988 set 
     forth in this title will provide the Ute Tribes with 
     substitute benefits equivalent to those that the Tribes would 
     have received under the Colorado Ute Indian Water Rights 
     Settlement Act of 1988, in a manner consistent with paragraph 
     (8) and the Federal Government's trust obligation.
       (10) Based upon paragraph (8), it is the intent of Congress 
     to enact legislation that implements the Record of Decision 
     referred to in paragraph (8)(F).
       (c) Definitions.--In this title:
       (1) Agreement.--The term ``Agreement'' has the meaning 
     given that term in section 3(1) of the Colorado Ute Indian 
     Water Rights Settlement Act of 1988 (Public Law 100-585; 102 
     Stat. 2973).
       (2) Animas-la plata project.--The term ``Animas-La Plata 
     Project'' has the meaning given that term in section 3(2) of 
     the Colorado Ute Indian Water Rights Settlement Act of 1988 
     (Public Law 100-585; 102 Stat. 2973).
       (3) Dolores project.--The term ``Dolores Project'' has the 
     meaning given that term in section 3(3) of the Colorado Ute 
     Indian Water Rights Settlement Act of 1988 (Public Law 100-
     585; 102 Stat. 2974).
       (4) Tribe; tribes.--The term ``Tribe'' or ``Tribes'' has 
     the meaning given that term in section 3(6) of the Colorado 
     Ute Indian Water Rights Settlement Act of 1988 (Public Law 
     100-585; 102 Stat. 2974).

     SEC. 302. AMENDMENTS TO SECTION 6 OF THE COLORADO UTE INDIAN 
                   WATER RIGHTS SETTLEMENT ACT OF 1988.

       Subsection (a) of section 6 of the Colorado Ute Indian 
     Water Rights Settlement Act of 1988 (Public Law 100-585; 102 
     Stat. 2975) is amended to read as follows:
       ``(a) Reservoir; Municipal and Industrial Water.--
       ``(1) Facilities.--
       ``(A) In general.--After the date of enactment of this 
     subsection, but prior to January 1, 2005, or the date 
     established in the Amended Final Decree described in section 
     18(c), the Secretary, in order to settle the outstanding 
     claims of the Tribes on the Animas and La Plata Rivers, 
     acting through the Bureau of Reclamation, is specifically 
     authorized to--
       ``(i) complete construction of, and operate and maintain, a 
     reservoir, a pumping plant, a reservoir inlet conduit, and 
     appurtenant facilities with sufficient capacity to divert and 
     store water from the Animas River to provide for an average 
     annual depletion of 57,100 acre-feet of water to be used for 
     a municipal and industrial water supply, which facilities 
     shall--

       ``(I) be designed and operated in accordance with the 
     hydrologic regime necessary for the recovery of the 
     endangered fish of the San Juan River as determined by the 
     San Juan River Recovery Implementation Program;
       ``(II) be operated in accordance with the Animas-La Plata 
     Project Compact as approved by Congress in Public Law 90-537;
       ``(III) include an inactive pool of an appropriate size to 
     be determined by the Secretary following the completion of 
     required environmental compliance activities; and
       ``(IV) include those recreation facilities determined to be 
     appropriate by agreement between the State of Colorado and 
     the Secretary that shall address the payment of any of the 
     costs of such facilities by the State of Colorado in addition 
     to the costs described in paragraph (3); and

       ``(ii) deliver, through the use of the project components 
     referred to in clause (i), municipal and industrial water 
     allocations--

       ``(I) with an average annual depletion not to exceed 16,525 
     acre-feet of water, to the Southern Ute Indian Tribe for its 
     present and future needs;
       ``(II) with an average annual depletion not to exceed 
     16,525 acre-feet of water, to the Ute Mountain Ute Indian 
     Tribe for its present and future needs;
       ``(III) with an average annual depletion not to exceed 
     2,340 acre-feet of water, to the Navajo Nation for its 
     present and future needs;
       ``(IV) with an average annual depletion not to exceed 
     10,400 acre-feet of water, to the San Juan

[[Page 26858]]

     Water Commission for its present and future needs;
       ``(V) with an average annual depletion of an amount not to 
     exceed 2,600 acre-feet of water, to the Animas-La Plata 
     Conservancy District for its present and future needs;
       ``(VI) with an average annual depletion of an amount not to 
     exceed 5,230 acre-feet of water, to the State of Colorado for 
     its present and future needs; and

       ``(VII) with an average annual depletion of an amount not 
     to exceed 780 acre-feet of water, to the La Plata Conservancy 
     District of New Mexico for its present and future needs.

       ``(B) Applicability of other federal law.--The 
     responsibilities of the Secretary described in subparagraph 
     (A) are subject to the requirements of Federal laws related 
     to the protection of the environment and otherwise applicable 
     to the construction of the proposed facilities, including the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.), the Clean Water Act (42 U.S.C. 7401 et seq.), and the 
     Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.). 
     Nothing in this Act shall be construed to predetermine or 
     otherwise affect the outcome of any analysis conducted by the 
     Secretary or any other Federal official under applicable 
     laws.
       ``(C) Limitation.--
       ``(i) In general.--If constructed, the facilities described 
     in subparagraph (A) shall constitute the Animas-La Plata 
     Project. Construction of any other project features 
     authorized by Public Law 90-537 shall not be commenced 
     without further express authorization from Congress.
       ``(ii) Contingency in application.--If the facilities 
     described in subparagraph (A) are not constructed and 
     operated, clause (i) shall not take effect.
       ``(2) Tribal construction costs.--Construction costs 
     allocable to the facilities that are required to deliver the 
     municipal and industrial water allocations described in 
     subclauses (I), (II) and (III) of paragraph (1)(A)(ii) shall 
     be nonreimbursable to the United States.
       ``(3) Nontribal water capital obligations.--
       ``(A) In general.--Under the provisions of section 9 of the 
     Act of August 4, 1939 (43 U.S.C. 485h), the nontribal 
     municipal and industrial water capital repayment obligations 
     for the facilities described in paragraph (1)(A)(i) may be 
     satisfied upon the payment in full of the nontribal water 
     capital obligations prior to the initiation of construction. 
     The amount of the obligations described in the preceding 
     sentence shall be determined by agreement between the 
     Secretary of the Interior and the entity responsible for such 
     repayment as to the appropriate reimbursable share of the 
     construction costs allocated to that entity's municipal water 
     storage. Such repayment shall be consistent with Federal 
     reclamation law, including the Colorado River Storage Project 
     Act of 1956 (43 U.S.C. 620 et seq.). Such agreement shall 
     take into account the fact that the construction of certain 
     project facilities, including those facilities required to 
     provide irrigation water supplies from the Animas-La Plata 
     Project, is not authorized under paragraph (1)(A)(i) and no 
     costs associated with the design or development of such 
     facilities, including costs associated with environmental 
     compliance, shall be allocable to the municipal and 
     industrial users of the facilities authorized under such 
     paragraph.
       ``(B) Nontribal repayment obligation subject to final cost 
     allocation.--The nontribal repayment obligation set forth in 
     subparagraph (A) shall be subject to a final cost allocation 
     by the Secretary upon project completion. In the event that 
     the final cost allocation indicates that additional repayment 
     is warranted based on the applicable entity's share of 
     project water storage and determination of overall 
     reimbursable cost, that entity may elect to enter into a new 
     agreement to make the additional payment necessary to secure 
     the full water supply identified in paragraph (1)(A)(ii). If 
     the repayment entity elects not to enter into a new 
     agreement, the portion of project storage relinquished by 
     such election shall be available to the Secretary for 
     allocation to other project purposes. Additional repayment 
     shall only be warranted for reasonable and unforeseen costs 
     associated with project construction as determined by the 
     Secretary in consultation with the relevant repayment 
     entities.
       ``(C) Report.--Not later than April 1, 2001, the Secretary 
     shall report to Congress on the status of the cost-share 
     agreements contemplated in subparagraph (A). In the event 
     that no agreement is reached with either the Animas-La Plata 
     Conservancy District or the State of Colorado for the water 
     allocations set forth in subclauses (V) and (VI) of paragraph 
     (1)(A)(ii), those allocations shall be reallocated equally to 
     the Colorado Ute Tribes.
       ``(4) Tribal water allocations.--
       ``(A) In general.--With respect to municipal and industrial 
     water allocated to a Tribe from the Animas-La Plata Project 
     or the Dolores Project, until that water is first used by a 
     Tribe or used pursuant to a water use contract with the 
     Tribe, the Secretary shall pay the annual operation, 
     maintenance, and replacement costs allocable to that 
     municipal and industrial water allocation of the Tribe.
       ``(B) Treatment of costs.--A Tribe shall not be required to 
     reimburse the Secretary for the payment of any cost referred 
     to in subparagraph (A).
       ``(5) Repayment of pro rata share.--Upon a Tribe's first 
     use of an increment of a municipal and industrial water 
     allocation described in paragraph (4), or the Tribe's first 
     use of such water pursuant to the terms of a water use 
     contract--
       ``(A) repayment of that increment's pro rata share of those 
     allocable construction costs for the Dolores Project shall be 
     made by the Tribe; and
       ``(B) the Tribe shall bear a pro rata share of the 
     allocable annual operation, maintenance, and replacement 
     costs of the increment as referred to in paragraph (4).''.

     SEC. 303. MISCELLANEOUS.

       The Colorado Ute Indian Water Rights Settlement Act of 1988 
     (Public Law 100-585; 102 Stat. 2973) is amended by adding at 
     the end the following:

     ``SEC. 15. NEW MEXICO AND NAVAJO NATION WATER
                   MATTERS.

       ``(a) Assignment of Water Permit.--Upon the request of the 
     State Engineer of the State of New Mexico, the Secretary 
     shall, as soon as practicable, in a manner consistent with 
     applicable law, assign, without consideration, to the New 
     Mexico Animas-La Plata Project beneficiaries or to the New 
     Mexico Interstate Stream Commission in accordance with the 
     request of the State Engineer, the Department of the 
     Interior's interest in New Mexico State Engineer Permit 
     Number 2883, dated May 1, 1956, in order to fulfill the New 
     Mexico non-Navajo purposes of the Animas-La Plata Project, so 
     long as the permit assignment does not affect the application 
     of the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.) to the use of the water involved.
       ``(b) Navajo Nation Municipal Pipeline.--The Secretary is 
     specifically authorized to construct a water line to augment 
     the existing system that conveys the municipal water 
     supplies, in an amount not less than 4,680 acre-feet per 
     year, to the Navajo Indian Reservation at or near Shiprock, 
     New Mexico. The Secretary shall comply with all applicable 
     environmental laws with respect to such water line. 
     Construction costs allocated to the Navajo Nation for such 
     water line shall be nonreimbursable to the United States.
       ``(c) Protection of Navajo Water Claims.--Nothing in this 
     Act, including the permit assignment authorized by subsection 
     (a), shall be construed to quantify or otherwise adversely 
     affect the water rights and the claims of entitlement to 
     water of the Navajo Nation.

     ``SEC. 16. RESOURCE FUNDS.

       ``(a) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $8,000,000 for 
     each of fiscal years 2002 through 2006. Not later than 60 
     days after amounts are appropriated and available to the 
     Secretary for a fiscal year under this paragraph, the 
     Secretary shall make a payment to each of the Tribal Resource 
     Funds established under subsection (b). Each such payment 
     shall be equal to 50 percent of the amount appropriated for 
     the fiscal year involved.
       ``(b) Funds.--The Secretary shall establish a--
       ``(1) Southern Ute Tribal Resource Fund; and
       ``(2) Ute Mountain Ute Tribal Resource Fund.
       ``(c) Tribal Development.--
       ``(1) Investment.--The Secretary shall, in the absence of 
     an approved tribal investment plan provided for under 
     paragraph (2), invest the amount in each Tribal Resource Fund 
     established under subsection (b) in accordance with the Act 
     entitled, `An Act to authorize the deposit and investment of 
     Indian funds' approved June 24, 1938 (25 U.S.C. 162a). With 
     the exception of the funds referred to in paragraph 
     (3)(B)(i), the Secretary shall disburse, at the request of a 
     Tribe, the principal and income in its Resource Fund, or any 
     part thereof, in accordance with a resource acquisition and 
     enhancement plan approved under paragraph (3).
       ``(2) Investment plan.--
       ``(A) In general.--In lieu of the investment provided for 
     in paragraph (1), a Tribe may submit a tribal investment plan 
     applicable to all or part of the Tribe's Tribal Resource 
     Fund, except with respect to the funds referred to in 
     paragraph (3)(B)(i).
       ``(B) Approval.--Not later than 60 days after the date on 
     which an investment plan is submitted under subparagraph (A), 
     the Secretary shall approve such investment plan if the 
     Secretary finds that the plan is reasonable and sound. If the 
     Secretary does not approve such investment plan, the 
     Secretary shall set forth in writing and with particularity 
     the reasons for such disapproval. If such investment plan is 
     approved by the Secretary, the Tribal Resource Fund involved 
     shall be disbursed to the Tribe to be invested by the Tribe 
     in accordance with the approved investment plan, subject to 
     subsection (d).
       ``(C) Compliance.--The Secretary may take such steps as the 
     Secretary determines to be necessary to monitor the 
     compliance of a Tribe with an investment plan approved under 
     subparagraph (B). The United States shall not be responsible 
     for the review, approval, or audit of any individual 
     investment under the plan. The United States shall not be 
     directly or indirectly liable with respect to any such 
     investment, including any act or omission of the Tribe in 
     managing or investing such funds.
       ``(D) Economic development plan.--The principal and income 
     derived from tribal investments under an investment plan 
     approved under subparagraph (B) shall be subject to the 
     provisions of this section and shall be expended only in 
     accordance with an economic development plan approved under 
     paragraph (3)(B).
       ``(3) Economic development plan.--
       ``(A) In general.--Each Tribe shall submit to the Secretary 
     a resource acquisition and enhancement plan for all or any 
     portion of its Tribal Resource Fund.

[[Page 26859]]

       ``(B) Approval.--Not later than 60 days after the date on 
     which a plan is submitted under subparagraph (A), the 
     Secretary shall approve such plan if it is consistent with 
     the following requirements:
       ``(i) With respect to at least \3/4\ of the funds 
     appropriated pursuant to this section and consistent with the 
     long-standing practice of the Tribes and other local entities 
     and communities to work together to use their respective 
     water rights and resources for mutual benefit, at least \3/4\ 
     of the funds appropriated pursuant to this section shall be 
     utilized to enhance, restore, and utilize the Tribes' natural 
     resources in partnership with adjacent non-Indian communities 
     or entities in the area.
       ``(ii) The plan must be reasonably related to the 
     protection, acquisition, enhancement, or development of 
     natural resources for the benefit of the Tribe and its 
     members.
       ``(iii) Notwithstanding any other provision of law and in 
     order to ensure that the Federal Government fulfills the 
     objectives of the Record of Decision referred to in section 
     301(b)(8)(F) of the Colorado Ute Settlement Act Amendments of 
     2000 by requiring that the funds referred to in clause (i) 
     are expended directly by employees of the Federal Government, 
     the Secretary acting through the Bureau of Reclamation shall 
     expend not less than \1/3\ of the funds referred to in clause 
     (i) for municipal or rural water development and not less 
     than \2/3\ of the funds referred to such clause for resource 
     acquisition and enhancement.
       ``(C) Modification.--Subject to the provisions of this Act 
     and the approval of the Secretary, each Tribe may modify a 
     plan approved under subparagraph (B).
       ``(D) Liability.--The United States shall not be directly 
     or indirectly liable for any claim or cause of action arising 
     from the approval of a plan under this paragraph, or from the 
     use and expenditure by the Tribe of the principal or interest 
     of the Funds.
       ``(d) Limitation on Per Capita Distributions.--No part of 
     the principal contained in the Tribal Resource Fund, or of 
     the income accruing to such funds, or the revenue from any 
     water use contract, shall be distributed to any member of 
     either Tribe on a per capita basis.
       ``(e) Limitation on Setting Aside Final Consent Decree.--
     Neither the Tribes nor the United States shall have the right 
     to set aside the final consent decree solely because the 
     requirements of subsection (c) are not complied with or 
     implemented.
       ``(f) Limitation on Disbursement of Tribal Resource 
     Funds.--Any funds appropriated under this section shall be 
     placed into the Southern Ute Tribal Resource Fund and the Ute 
     Mountain Ute Tribal Resource Fund in the Treasury of the 
     United States but shall not be available for disbursement 
     under this section until the final settlement of the tribal 
     claims as provided in section 18. The Secretary of the 
     Interior may, in the Secretary's sole discretion, authorize 
     the disbursement of funds prior to the final settlement in 
     the event that the Secretary determines that substantial 
     portions of the settlement have been completed. In the event 
     that the funds are not disbursed under the terms of this 
     section by December 31, 2012, such funds shall be deposited 
     in the general fund of the Treasury.

     ``SEC. 17. COLORADO UTE SETTLEMENT FUND.

       ``(a) Establishment of Fund.--There is hereby established 
     within the Treasury of the United States a fund to be known 
     as the `Colorado Ute Settlement Fund'.
       ``(b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Colorado Ute Settlement Fund such 
     funds as are necessary to complete the construction of the 
     facilities described in sections 6(a)(1)(A) and 15(b) within 
     7 years of the date of enactment of this section. Such funds 
     are authorized to be appropriated for each of the first 5 
     fiscal years beginning with the first full fiscal year 
     following the date of enactment of this section.

     ``SEC. 18. FINAL SETTLEMENT.

       ``(a) In General.--The construction of the facilities 
     described in section 6(a)(1)(A), the allocation of the water 
     supply from those facilities to the Tribes as described in 
     that section, and the provision of funds to the Tribes in 
     accordance with section 16 and the issuance of an amended 
     final consent decree as contemplated in subsection (c) shall 
     constitute final settlement of the tribal claims to water 
     rights on the Animas and La Plata Rivers in the State of 
     Colorado.
       ``(b) Statutory Construction.--Nothing in this section 
     shall be construed to affect the right of the Tribes to water 
     rights on the streams and rivers described in the Agreement, 
     other than the Animas and La Plata Rivers, to receive the 
     amounts of water dedicated to tribal use under the Agreement, 
     or to acquire water rights under the laws of the State of 
     Colorado.
       ``(c) Action by the Attorney General.--The Attorney General 
     shall file with the District Court, Water Division Number 7, 
     of the State of Colorado, such instruments as may be 
     necessary to request the court to amend the final consent 
     decree to provide for the amendments made to this Act under 
     the Colorado Ute Indian Water Rights Settlement Act 
     Amendments of 2000. The amended final consent decree shall 
     specify terms and conditions to provide for an extension of 
     the current January 1, 2005, deadline for the Tribes to 
     commence litigation of their reserved rights claims on the 
     Animas and La Plata Rivers.

     ``SEC. 19. STATUTORY CONSTRUCTION; TREATMENT OF CERTAIN 
                   FUNDS.

       ``(a) In General.--Nothing in the amendments made by the 
     Colorado Ute Settlement Act Amendments of 2000 shall be 
     construed to affect the applicability of any provision of 
     this Act.
       ``(b) Treatment of Uncommitted Portion of Cost-Sharing 
     Obligation.--The uncommitted portion of the cost-sharing 
     obligation of the State of Colorado referred to in section 
     6(a)(3) shall be made available, upon the request of the 
     State of Colorado, to the State of Colorado after the date on 
     which payment is made of the amount specified in that 
     section.''.

                                TITLE IV

     SECTION 401. DESIGNATION OF AMERICAN MUSEUM OF SCIENCE AND 
                   ENERGY.  

       (a) In General.--The Museum--
       (1) is designated as the ``American Museum of Science and 
     Energy''; and
       (2) shall be the official museum of science and energy of 
     the United States.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     Museum is deemed to be a reference to the ``American Museum 
     of Science and Energy''.
       (c) Property of the United States.--
       (1) In general.--The name ``American Museum of Science and 
     Energy'' is declared the property of the United States.
       (2) Use.--The Museum shall have the sole right throughout 
     the United States and its possessions to have and use the 
     name ``American Museum of Science and Energy''.
       (3) Effect on other rights.--This subsection shall not be 
     construed to conflict or interfere with established or vested 
     rights.

     SEC. 402. AUTHORITY.

       To carry out the activities of the Museum, the Secretary 
     may--
       (1) accept and dispose of any gift, devise, or bequest of 
     services or property, real or personal, that is--
       (A) designated in a written document by the person making 
     the gift, devise, or bequest as intended for the Museum; and
       (B) determined by the Secretary to be suitable and 
     beneficial for use by the Museum;
       (2) operate a retail outlet on the premises of the Museum 
     for the purpose of selling or distributing items (including 
     mementos, food, educational materials, replicas, and 
     literature) that are--
       (A) relevant to the contents of the Museum; and
       (B) informative, educational, and tasteful;
       (3) collect reasonable fees where feasible and appropriate;
       (4) exhibit, perform, display, and publish materials and 
     information of or relating to the Museum in any media or 
     place;
       (5) consistent with guidelines approved by the Secretary, 
     lease space on the premises of the Museum at reasonable rates 
     and for uses consistent with such guidelines; and
       (6) use the proceeds of activities authorized under this 
     section to pay the costs of the Museum.

     SEC. 403. MUSEUM VOLUNTEERS.

       (a) Authority To Use Volunteers.--The Secretary may 
     recruit, train, and accept the services of individuals or 
     entities as volunteers for services or activities related to 
     the Museum.
       (b) Status of Volunteers.--
       (1) In general.--Except as provided in paragraph (2), 
     service by a volunteer under subsection (a) shall not be 
     considered Federal employment.
       (2) Exceptions.--
       (A) Federal tort claims act.--For purposes of chapter 171 
     of title 28, United States Code, a volunteer under subsection 
     (a) shall be treated as an employee of the Government (as 
     defined in section 2671 of that title).
       (B) Compensation for work injuries.--For purposes of 
     subchapter I of chapter 81 of title 5, United States Code, a 
     volunteer described in subsection (a) shall be treated as an 
     employee (as defined in section 8101 of title 5, United 
     States Code).
       (c) Compensation.--A volunteer under subsection (a) shall 
     serve without pay, but may receive nominal awards and 
     reimbursement for incidental expenses, including expenses for 
     a uniform or transportation in furtherance of Museum 
     activities.

     SEC. 404. DEFINITIONS.

       For purposes of this Act:
       (1) Museum.--The term ``Museum'' means the museum operated 
     by the Secretary of Energy and located at 300 South Tulane 
     Avenue in Oak Ridge, Tennessee.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy or a designated representative of the Secretary.

                TITLE V--LOWER MISSISSIPPI RIVER REGION

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Delta Regional Authority 
     Act of 2000''.

     SEC. 502. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) the lower Mississippi River region (referred to in this 
     title as the ``region''), though rich in natural and human 
     resources, lags behind the rest of the United States in 
     economic growth and prosperity;
       (2) the region suffers from a greater proportion of 
     measurable poverty and unemployment than any other region of 
     the United States;
       (3) the greatest hope for economic growth and 
     revitalization in the region lies in the development of 
     transportation infrastructure, creation of jobs, expansion of 
     businesses, and development of entrepreneurial local 
     economies;
       (4) the economic progress of the region requires an 
     adequate transportation and physical

[[Page 26860]]

     infrastructure, a skilled and trained workforce, and greater 
     opportunities for enterprise development and 
     entrepreneurship;
       (5) a concerted and coordinated effort among Federal, 
     State, and local agencies, the private sector, and nonprofit 
     groups is needed if the region is to achieve its full 
     potential for economic development;
       (6) economic development planning on a regional or 
     multicounty basis offers the best prospect for achieving the 
     maximum benefit from public and private investments; and
       (7) improving the economy of the region requires a special 
     emphasis on areas of the region that are most economically 
     distressed.
       (b) Purposes.--The purposes of this title are--
       (1) to promote and encourage the economic development of 
     the region--
       (A) to ensure that the communities and people in the region 
     have the opportunity for economic development; and
       (B) to ensure that the economy of the region reaches 
     economic parity with that of the rest of the United States;
       (2) to establish a formal framework for joint Federal-State 
     collaboration in meeting and focusing national attention on 
     the economic development needs of the region;
       (3) to assist the region in obtaining the transportation 
     and basic infrastructure, skills training, and opportunities 
     for economic development that are essential for strong local 
     economies;
       (4) to foster coordination among all levels of government, 
     the private sector, and nonprofit groups in crafting common 
     regional strategies that will lead to broader economic 
     growth;
       (5) to strengthen efforts that emphasize regional 
     approaches to economic development and planning;
       (6) to encourage the participation of interested citizens, 
     public officials, agencies, and others in developing and 
     implementing local and regional plans for broad-based 
     economic and community development; and
       (7) to focus special attention on areas of the region that 
     suffer from the greatest economic distress.

     SEC. 503. DELTA REGIONAL AUTHORITY.

       The Consolidated Farm and Rural Development Act (7 U.S.C. 
     1921 et seq.) is amended by adding at the end the following:

                 ``Subtitle F--Delta Regional Authority

     ``SEC. 382A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Authority.--The term `Authority' means the Delta 
     Regional Authority established by section 382B.
       ``(2) Region.--The term `region' means the Lower 
     Mississippi (as defined in section 4 of the Delta Development 
     Act (42 U.S.C. 3121 note; Public Law 100-460)).
       ``(3) Federal grant program.--The term `Federal grant 
     program' means a Federal grant program to provide assistance 
     in--
       ``(A) acquiring or developing land;
       ``(B) constructing or equipping a highway, road, bridge, or 
     facility; or
       ``(C) carrying out other economic development activities.

     ``SEC. 382B. DELTA REGIONAL AUTHORITY.

       ``(a) Establishment.--
       ``(1) In general.--There is established the Delta Regional 
     Authority.
       ``(2) Composition.--The Authority shall be composed of--
       ``(A) a Federal member, to be appointed by the President, 
     with the advice and consent of the Senate; and
       ``(B) the Governor (or a designee of the Governor) of each 
     State in the region that elects to participate in the 
     Authority.
       ``(3) Cochairpersons.--The Authority shall be headed by--
       ``(A) the Federal member, who shall serve--
       ``(i) as the Federal cochairperson; and
       ``(ii) as a liaison between the Federal Government and the 
     Authority; and
       ``(B) a State cochairperson, who--
       ``(i) shall be a Governor of a participating State in the 
     region; and
       ``(ii) shall be elected by the State members for a term of 
     not less than 1 year.
       ``(b) Alternate Members.--
       ``(1) State alternates.--The State member of a 
     participating State may have a single alternate, who shall 
     be--
       ``(A) a resident of that State; and
       ``(B) appointed by the Governor of the State.
       ``(2) Alternate federal cochairperson.--The President shall 
     appoint an alternate Federal cochairperson.
       ``(3) Quorum.--A State alternate shall not be counted 
     toward the establishment of a quorum of the Authority in any 
     instance in which a quorum of the State members is required 
     to be present.
       ``(4) Delegation of power.--No power or responsibility of 
     the Authority specified in paragraphs (2) and (3) of 
     subsection (c), and no voting right of any Authority member, 
     shall be delegated to any person--
       ``(A) who is not a Authority member; or
       ``(B) who is not entitled to vote in Authority meetings.
       ``(c) Voting.--
       ``(1) In general.--A decision by the Authority shall 
     require a majority vote of the Authority (not including any 
     member representing a State that is delinquent under 
     subsection (g)(2)(C)) to be effective.
       ``(2) Quorum.--A quorum of State members shall be required 
     to be present for the Authority to make any policy decision, 
     including--
       ``(A) a modification or revision of a Authority policy 
     decision;
       ``(B) approval of a State or regional development plan; and
       ``(C) any allocation of funds among the States.
       ``(3) Project and grant proposals.--The approval of project 
     and grant proposals shall be--
       ``(A) a responsibility of the Authority; and
       ``(B) conducted in accordance with section 382I.
       ``(4) Voting by alternate members.--An alternate member 
     shall vote in the case of the absence, death, disability, 
     removal, or resignation of the Federal or State 
     representative for which the alternate member is an 
     alternate.
       ``(d) Duties.--The Authority shall--
       ``(1) develop, on a continuing basis, comprehensive and 
     coordinated plans and programs to establish priorities and 
     approve grants for the economic development of the region, 
     giving due consideration to other Federal, State, and local 
     planning and development activities in the region;
       ``(2) not later than 220 days after the date of enactment 
     of this subtitle, establish priorities in a development plan 
     for the region (including 5-year regional outcome targets);
       ``(3) assess the needs and assets of the region based on 
     available research, demonstrations, investigations, 
     assessments, and evaluations of the region prepared by 
     Federal, State, and local agencies, universities, local 
     development districts, and other nonprofit groups;
       ``(4) formulate and recommend to the Governors and 
     legislatures of States that participate in the Authority 
     forms of interstate cooperation;
       ``(5) work with State and local agencies in developing 
     appropriate model legislation;
       ``(6)(A) enhance the capacity of, and provide support for, 
     local development districts in the region; or
       ``(B) if no local development district exists in an area in 
     a participating State in the region, foster the creation of a 
     local development district;
       ``(7) encourage private investment in industrial, 
     commercial, and other economic development projects in the 
     region; and
       ``(8) cooperate with and assist State governments with 
     economic development programs of participating States.
       ``(e) Administration.--In carrying out subsection (d), the 
     Authority may--
       ``(1) hold such hearings, sit and act at such times and 
     places, take such testimony, receive such evidence, and print 
     or otherwise reproduce and distribute a description of the 
     proceedings and reports on actions by the Authority as the 
     Authority considers appropriate;
       ``(2) authorize, through the Federal or State co-
     chairperson or any other member of the Authority designated 
     by the Authority, the administration of oaths if the 
     Authority determines that testimony should be taken or 
     evidence received under oath; and
       ``(3) request from any Federal, State, or local department 
     or agency such information as may be available to or 
     procurable by the department or agency that may be of use to 
     the Authority in carrying out duties of the Authority;
       ``(4) adopt, amend, and repeal bylaws and rules governing 
     the conduct of Authority business and the performance of 
     Authority duties;
       ``(5) request the head of any Federal department or agency 
     to detail to the Authority such personnel as the Authority 
     requires to carry out duties of the Authority, each such 
     detail to be without loss of seniority, pay, or other 
     employee status;
       ``(6) request the head of any State department or agency or 
     local government to detail to the Authority such personnel as 
     the Authority requires to carry out duties of the Authority, 
     each such detail to be without loss of seniority, pay, or 
     other employee status;
       ``(7) provide for coverage of Authority employees in a 
     suitable retirement and employee benefit system by--
       ``(A) making arrangements or entering into contracts with 
     any participating State government; or
       ``(B) otherwise providing retirement and other employee 
     benefit coverage;
       ``(8) accept, use, and dispose of gifts or donations of 
     services or real, personal, tangible, or intangible property;
       ``(9) enter into and perform such contracts, leases, 
     cooperative agreements, or other transactions as are 
     necessary to carry out Authority duties, including any 
     contracts, leases, or cooperative agreements with--
       ``(A) any department, agency, or instrumentality of the 
     United States;
       ``(B) any State (including a political subdivision, agency, 
     or instrumentality of the State); or
       ``(C) any person, firm, association, or corporation; and
       ``(10) establish and maintain a central office and field 
     offices at such locations as the Authority may select.
       ``(f) Federal Agency Cooperation.--A Federal agency shall--
       ``(1) cooperate with the Authority; and
       ``(2) provide, on request of the Federal cochairperson, 
     appropriate assistance in carrying out this subtitle, in 
     accordance with applicable Federal laws (including 
     regulations).
       ``(g) Administrative Expenses.--
       ``(1) In general.--Administrative expenses of the Authority 
     (except for the expenses of the Federal cochairperson, 
     including expenses of the alternate and staff of the Federal 
     cochairperson, which shall be paid solely by the Federal 
     Government) shall be paid--
       ``(A) by the Federal Government, in an amount equal to 50 
     percent of the administrative expenses; and

[[Page 26861]]

       ``(B) by the States in the region participating in the 
     Authority, in an amount equal to 50 percent of the 
     administrative expenses.
       ``(2) State share.--
       ``(A) In general.--The share of administrative expenses of 
     the Authority to be paid by each State shall be determined by 
     the Authority.
       ``(B) No federal participation.--The Federal cochairperson 
     shall not participate or vote in any decision under 
     subparagraph (A).
       ``(C) Delinquent states.--If a State is delinquent in 
     payment of the State's share of administrative expenses of 
     the Authority under this subsection--
       ``(i) no assistance under this subtitle shall be furnished 
     to the State (including assistance to a political subdivision 
     or a resident of the State); and
       ``(ii) no member of the Authority from the State shall 
     participate or vote in any action by the Authority.
       ``(h) Compensation.--
       ``(1) Federal cochairperson.--The Federal cochairperson 
     shall be compensated by the Federal Government at level III 
     of the Executive Schedule in subchapter II of chapter 53 of 
     title V, United States Code.
       ``(2) Alternate federal cochairperson.--The alternate 
     Federal cochairperson--
       ``(A) shall be compensated by the Federal Government at 
     level V of the Executive Schedule described in paragraph (1); 
     and
       ``(B) when not actively serving as an alternate for the 
     Federal cochairperson, shall perform such functions and 
     duties as are delegated by the Federal cochairperson.
       ``(3) State members and alternates.--
       ``(A) In general.--A State shall compensate each member and 
     alternate representing the State on the Authority at the rate 
     established by law of the State.
       ``(B) No additional compensation.--No State member or 
     alternate member shall receive any salary, or any 
     contribution to or supplementation of salary from any source 
     other than the State for services provided by the member or 
     alternate to the Authority.
       ``(4) Detailed employees.--
       ``(A) In general.--No person detailed to serve the 
     Authority under subsection (e)(6) shall receive any salary or 
     any contribution to or supplementation of salary for services 
     provided to the Authority from--
       ``(i) any source other than the State, local, or 
     intergovernmental department or agency from which the person 
     was detailed; or
       ``(ii) the Authority.
       ``(B) Violation.--Any person that violates this paragraph 
     shall be fined not more than $5,000, imprisoned not more than 
     1 year, or both.
       ``(C) Applicable law.--The Federal cochairperson, the 
     alternate Federal cochairperson, and any Federal officer or 
     employee detailed to duty on the Authority under subsection 
     (e)(5) shall not be subject to subparagraph (A), but shall 
     remain subject to sections 202 through 209 of title 18, 
     United States Code.
       ``(5) Additional personnel.--
       ``(A) Compensation.--
       ``(i) In general.--The Authority may appoint and fix the 
     compensation of an executive director and such other 
     personnel as are necessary to enable the Authority to carry 
     out the duties of the Authority.
       ``(ii) Exception.--Compensation under clause (i) shall not 
     exceed the maximum rate for the Senior Executive Service 
     under section 5382 of title 5, United States Code, including 
     any applicable locality-based comparability payment that may 
     be authorized under section 5304(h)(2)(C) of that title.
       ``(B) Executive director.--The executive director shall be 
     responsible for--
       ``(i) the carrying out of the administrative duties of the 
     Authority;
       ``(ii) direction of the Authority staff; and
       ``(iii) such other duties as the Authority may assign.
       ``(C) No federal employee status.--No member, alternate, 
     officer, or employee of the Authority (except the Federal 
     cochairperson of the Authority, the alternate and staff for 
     the Federal cochairperson, and any Federal employee detailed 
     to the Authority under subsection (e)(5)) shall be considered 
     to be a Federal employee for any purpose.
       ``(i) Conflicts of Interest.--
       ``(1) In general.--Except as provided under paragraph (2), 
     no State member, alternate, officer, or employee of the 
     Authority shall participate personally and substantially as a 
     member, alternate, officer, or employee of the Authority, 
     through decision, approval, disapproval, recommendation, the 
     rendering of advice, investigation, or otherwise, in any 
     proceeding, application, request for a ruling or other 
     determination, contract, claim, controversy, or other matter 
     in which, to knowledge of the member, alternate, officer, or 
     employee--
       ``(A) the member, alternate, officer, or employee;
       ``(B) the spouse, minor child, partner, or organization 
     (other than a State or political subdivision of the State) of 
     the member, alternate, officer, or employee, in which the 
     member, alternate, officer, or employee is serving as 
     officer, director, trustee, partner, or employee; or
       ``(C) any person or organization with whom the member, 
     alternate, officer, or employee is negotiating or has any 
     arrangement concerning prospective employment;
       has a financial interest.
       ``(2) Disclosure.--Paragraph (1) shall not apply if the 
     State member, alternate, officer, or employee--
       ``(A) immediately advises the Authority of the nature and 
     circumstances of the proceeding, application, request for a 
     ruling or other determination, contract, claim, controversy, 
     or other particular matter presenting a potential conflict of 
     interest;
       ``(B) makes full disclosure of the financial interest; and
       ``(C) before the proceeding concerning the matter 
     presenting the conflict of interest, receives a written 
     determination by the Authority that the interest is not so 
     substantial as to be likely to affect the integrity of the 
     services that the Authority may expect from the State member, 
     alternate, officer, or employee.
       ``(3) Violation.--Any person that violates this subsection 
     shall be fined not more than $10,000, imprisoned not more 
     than 2 years, or both.
       ``(j) Validity of Contracts, Loans, and Grants.--The 
     Authority may declare void any contract, loan, or grant of or 
     by the Authority in relation to which the Authority 
     determines that there has been a violation of any provision 
     under subsection (h)(4), subsection (i), or sections 202 
     through 209 of title 18, United States Code.

     ``SEC. 382C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

       ``(a) In General.--The Authority may approve grants to 
     States and public and nonprofit entities for projects, 
     approved in accordance with section 382I--
       ``(1) to develop the transportation infrastructure of the 
     region for the purpose of facilitating economic development 
     in the region (except that grants for this purpose may only 
     be made to a State or local government);
       ``(2) to assist the region in obtaining the job training, 
     employment-related education, and business development (with 
     an emphasis on entrepreneurship) that are needed to build and 
     maintain strong local economies;
       ``(3) to provide assistance to severely distressed and 
     underdeveloped areas that lack financial resources for 
     improving basic public services;
       ``(4) to provide assistance to severely distressed and 
     underdeveloped areas that lack financial resources for 
     equipping industrial parks and related facilities; and
       ``(5) to otherwise achieve the purposes of this subtitle.
       ``(b) Funding.--
       ``(1) In general.--Funds for grants under subsection (a) 
     may be provided--
       ``(A) entirely from appropriations to carry out this 
     section;
       ``(B) in combination with funds available under another 
     Federal or Federal grant program; or
       ``(C) from any other source.
       ``(2) Priority of funding.--To best build the foundations 
     for long-term economic development and to complement other 
     Federal and State resources in the region, Federal funds 
     available under this subtitle shall be focused on the 
     activities in the following order or priority:
       ``(A) Basic public infrastructure in distressed counties 
     and isolated areas of distress.
       ``(B) Transportation infrastructure for the purpose of 
     facilitating economic development in the region.
       ``(C) Business development, with emphasis on 
     entrepreneurship.
       ``(D) Job training or employment-related education, with 
     emphasis on use of existing public educational institutions 
     located in the region.
       ``(3) Federal share in grant programs.--Notwithstanding any 
     provision of law limiting the Federal share in any grant 
     program, funds appropriated to carry out this section may be 
     used to increase a Federal share in a grant program, as the 
     Authority determines appropriate.

     ``SEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

       ``(a) Finding.--Congress finds that certain States and 
     local communities of the region, including local development 
     districts, may be unable to take maximum advantage of Federal 
     grant programs for which the States and communities are 
     eligible because--
       ``(1) they lack the economic resources to meet the required 
     matching share; or
       ``(2) there are insufficient funds available under the 
     applicable Federal grant law authorizing the program to meet 
     pressing needs of the region.
       ``(b) Federal Grant Program Funding.--In accordance with 
     subsection (c), the Federal cochairperson may use amounts 
     made available to carry out this subtitle, without regard to 
     any limitations on areas eligible for assistance or 
     authorizations for appropriation under any other Act, to fund 
     all or any portion of the basic Federal contribution to a 
     project or activity under a Federal grant program in the 
     region in an amount that is above the fixed maximum portion 
     of the cost of the project otherwise authorized by applicable 
     law, but not to exceed 90 percent of the costs of the project 
     (except as provided in section 382F(b)).
       ``(c) Certification.--
       ``(1) In general.--In the case of any program or project 
     for which all or any portion of the basic Federal 
     contribution to the project under a Federal grant program is 
     proposed to be made under this section, no Federal 
     contribution shall be made until the Federal official 
     administering the Federal law authorizing the contribution 
     certifies that the program or project--
       ``(A) meets the applicable requirements of the applicable 
     Federal grant law; and
       ``(B) could be approved for Federal contribution under the 
     law if funds were available under the law for the program or 
     project.
       ``(2) Certification by authority.--
       ``(A) In general.--The certifications and determinations 
     required to be made by the Authority for approval of projects 
     under this subtitle in accordance with section 382I--

[[Page 26862]]

       ``(i) shall be controlling; and
       ``(ii) shall be accepted by the Federal agencies.
       ``(B) Acceptance by federal cochairperson.--Any finding, 
     report, certification, or documentation required to be 
     submitted to the head of the department, agency, or 
     instrumentality of the Federal Government responsible for the 
     administration of any Federal grant program shall be accepted 
     by the Federal cochairperson with respect to a supplemental 
     grant for any project under the program.

     ``SEC. 382E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND 
                   ADMINISTRATIVE EXPENSES.

       ``(a) Definition of Local Development District.--In this 
     section, the term `local development district' means an 
     entity that--
       ``(1) is--
       ``(A) a planning district in existence on the date of 
     enactment of this subtitle that is recognized by the Economic 
     Development Administration of the Department of Commerce; or
       ``(B) where an entity described in subparagraph (A) does 
     not exist--
       ``(i) organized and operated in a manner that ensures 
     broad-based community participation and an effective 
     opportunity for other nonprofit groups to contribute to the 
     development and implementation of programs in the region;
       ``(ii) governed by a policy board with at least a simple 
     majority of members consisting of elected officials or 
     employees of a general purpose unit of local government who 
     have been appointed to represent the government;
       ``(iii) certified to the Authority as having a charter or 
     authority that includes the economic development of counties 
     or parts of counties or other political subdivisions within 
     the region--

       ``(I) by the Governor of each State in which the entity is 
     located; or
       ``(II) by the State officer designated by the appropriate 
     State law to make the certification; and

       ``(iv)(I) a nonprofit incorporated body organized or 
     chartered under the law of the State in which the entity is 
     located;
       ``(II) a nonprofit agency or instrumentality of a State or 
     local government;
       ``(III) a public organization established before the date 
     of enactment of this subtitle under State law for creation of 
     multi-jurisdictional, area-wide planning organizations; or
       ``(IV) a nonprofit association or combination of bodies, 
     agencies, and instrumentalities described in subclauses (I) 
     through (III); and
       ``(2) has not, as certified by the Federal cochairperson--
       ``(A) inappropriately used Federal grant funds from any 
     Federal source; or
       ``(B) appointed an officer who, during the period in which 
     another entity inappropriately used Federal grant funds from 
     any Federal source, was an officer of the other entity.
       ``(b) Grants to Local Development Districts.--
       ``(1) In general.--The Authority may make grants for 
     administrative expenses under this section.
       ``(2) Conditions for grants.--
       ``(A) Maximum amount.--The amount of any grant awarded 
     under paragraph (1) shall not exceed 80 percent of the 
     administrative expenses of the local development district 
     receiving the grant.
       ``(B) Maximum period.--No grant described in paragraph (1) 
     shall be awarded to a State agency certified as a local 
     development district for a period greater than 3 years.
       ``(C) Local share.--The contributions of a local 
     development district for administrative expenses may be in 
     cash or in kind, fairly evaluated, including space, 
     equipment, and services.
       ``(c) Duties of Local Development Districts.--A local 
     development district shall--
       ``(1) operate as a lead organization serving multicounty 
     areas in the region at the local level; and
       ``(2) serve as a liaison between State and local 
     governments, nonprofit organizations (including community-
     based groups and educational institutions), the business 
     community, and citizens that--
       ``(A) are involved in multijurisdictional planning;
       ``(B) provide technical assistance to local jurisdictions 
     and potential grantees; and
       ``(C) provide leadership and civic development assistance.

     ``SEC. 382F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED 
                   COUNTIES.

       ``(a) Designations.--Not later than 90 days after the date 
     of enactment of this subtitle, and annually thereafter, the 
     Authority, in accordance with such criteria as the Authority 
     may establish, shall designate--
       ``(1) as distressed counties, counties in the region that 
     are the most severely and persistently distressed and 
     underdeveloped and have high rates of poverty or 
     unemployment;
       ``(2) as nondistressed counties, counties in the region 
     that are not designated as distressed counties under 
     paragraph (1); and
       ``(3) as isolated areas of distress, areas located in 
     nondistressed counties (as designated under paragraph (2)) 
     that have high rates of poverty or unemployment.
       ``(b) Distressed Counties.--
       ``(1) In general.--The Authority shall allocate at least 75 
     percent of the appropriations made available under section 
     382M for programs and projects designed to serve the needs of 
     distressed counties and isolated areas of distress in the 
     region.
       ``(2) Funding limitations.--The funding limitations under 
     section 382D(b) shall not apply to a project providing 
     transportation or basic public services to residents of 1 or 
     more distressed counties or isolated areas of distress in the 
     region.
       ``(c) Nondistressed Counties.--
       ``(1) In general.--Except as provided in this subsection, 
     no funds shall be provided under this subtitle for a project 
     located in a county designated as a nondistressed county 
     under subsection (a)(2).
       ``(2) Exceptions.--
       ``(A) In general.--The funding prohibition under paragraph 
     (1) shall not apply to grants to fund the administrative 
     expenses of local development districts under section 
     382E(b).
       ``(B) Multicounty projects.--The Authority may waive the 
     application of the funding prohibition under paragraph (1) 
     to--
       ``(i) a multicounty project that includes participation by 
     a nondistressed county; or
       ``(ii) any other type of project;
     if the Authority determines that the project could bring 
     significant benefits to areas of the region outside a 
     nondistressed county.
       ``(C) Isolated areas of distress.--For a designation of an 
     isolated area of distress for assistance to be effective, the 
     designation shall be supported--
       ``(i) by the most recent Federal data available; or
       ``(ii) if no recent Federal data are available, by the most 
     recent data available through the government of the State in 
     which the isolated area of distress is located.
       ``(d) Transportation and Basic Public Infrastructure.--The 
     Authority shall allocate at least 50 percent of any funds 
     made available under section 382M for transportation and 
     basic public infrastructure projects authorized under 
     paragraphs (1) and (3) of section 382C(a).

     ``SEC. 382G. DEVELOPMENT PLANNING PROCESS.

       ``(a) State Development Plan.--In accordance with policies 
     established by the Authority, each State member shall submit 
     a development plan for the area of the region represented by 
     the State member.
       ``(b) Content of Plan.--A State development plan submitted 
     under subsection (a) shall reflect the goals, objectives, and 
     priorities identified in the regional development plan 
     developed under section 382B(d)(2).
       ``(c) Consultation With Interested Local Parties.--In 
     carrying out the development planning process (including the 
     selection of programs and projects for assistance), a State 
     may--
       ``(1) consult with--
       ``(A) local development districts; and
       ``(B) local units of government; and
       ``(2) take into consideration the goals, objectives, 
     priorities, and recommendations of the entities described in 
     paragraph (1).
       ``(d) Public Participation.--
       ``(1) In general.--The Authority and applicable State and 
     local development districts shall encourage and assist, to 
     the maximum extent practicable, public participation in the 
     development, revision, and implementation of all plans and 
     programs under this subtitle.
       ``(2) Regulations.--The Authority shall develop guidelines 
     for providing public participation described in paragraph 
     (1), including public hearings.

     ``SEC. 382H. PROGRAM DEVELOPMENT CRITERIA.

       ``(a) In General.--In considering programs and projects to 
     be provided assistance under this subtitle, and in 
     establishing a priority ranking of the requests for 
     assistance provided by the Authority, the Authority shall 
     follow procedures that ensure, to the maximum extent 
     practicable, consideration of--
       ``(1) the relationship of the project or class of projects 
     to overall regional development;
       ``(2) the per capita income and poverty and unemployment 
     rates in an area;
       ``(3) the financial resources available to the applicants 
     for assistance seeking to carry out the project, with 
     emphasis on ensuring that projects are adequately financed to 
     maximize the probability of successful economic development;
       ``(4) the importance of the project or class of projects in 
     relation to other projects or classes of projects that may be 
     in competition for the same funds;
       ``(5) the prospects that the project for which assistance 
     is sought will improve, on a continuing rather than a 
     temporary basis, the opportunities for employment, the 
     average level of income, or the economic development of the 
     area served by the project; and
       ``(6) the extent to which the project design provides for 
     detailed outcome measurements by which grant expenditures and 
     the results of the expenditures may be evaluated.
       ``(b) No Relocation Assistance.--No financial assistance 
     authorized by this subtitle shall be used to assist a person 
     or entity in relocating from 1 area to another, except that 
     financial assistance may be used as otherwise authorized by 
     this title to attract businesses from outside the region to 
     the region.
       ``(c) Reduction of Funds.--Funds may be provided for a 
     program or project in a State under this subtitle only if the 
     Authority determines that the level of Federal or State 
     financial assistance provided under a law other than this 
     subtitle, for the same type of program or project in the same 
     area of the State within the region, will not be reduced as a 
     result of funds made available by this subtitle.

     ``SEC. 382I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

       ``(a) In General.--A State or regional development plan or 
     any multistate subregional plan that is proposed for 
     development under this subtitle shall be reviewed by the 
     Authority.

[[Page 26863]]

       ``(b) Evaluation by State Member.--An application for a 
     grant or any other assistance for a project under this 
     subtitle shall be made through and evaluated for approval by 
     the State member of the Authority representing the applicant.
       ``(c) Certification.--An application for a grant or other 
     assistance for a project shall be approved only on 
     certification by the State member that the application for 
     the project--
       ``(1) describes ways in which the project complies with any 
     applicable State development plan;
       ``(2) meets applicable criteria under section 382H;
       ``(3) provides adequate assurance that the proposed project 
     will be properly administered, operated, and maintained; and
       ``(4) otherwise meets the requirements of this subtitle.
       ``(d) Votes for Decisions.--On certification by a State 
     member of the Authority of an application for a grant or 
     other assistance for a specific project under this section, 
     an affirmative vote of the Authority under section 382B(c) 
     shall be required for approval of the application.

     ``SEC. 382J. CONSENT OF STATES.

       ``Nothing in this subtitle requires any State to engage in 
     or accept any program under this subtitle without the consent 
     of the State.

     ``SEC. 382K. RECORDS.

       ``(a) Records of the Authority.--
       ``(1) In general.--The Authority shall maintain accurate 
     and complete records of all transactions and activities of 
     the Authority.
       ``(2) Availability.--All records of the Authority shall be 
     available for audit and examination by the Comptroller 
     General of the United States and the Inspector General of the 
     Department of Agriculture (including authorized 
     representatives of the Comptroller General and the Inspector 
     General of the Department of Agriculture).
       ``(b) Records of Recipients of Federal Assistance.--
       ``(1) In general.--A recipient of Federal funds under this 
     subtitle shall, as required by the Authority, maintain 
     accurate and complete records of transactions and activities 
     financed with Federal funds and report on the transactions 
     and activities to the Authority.
       ``(2) Availability.--All records required under paragraph 
     (1) shall be available for audit by the Comptroller General 
     of the United States, the Inspector General of the Department 
     of Agriculture, and the Authority (including authorized 
     representatives of the Comptroller General, the Inspector 
     General of the Department of Agriculture, and the Authority).
       ``(c) Annual Audit.--The Inspector General of the 
     Department of Agriculture shall audit the activities, 
     transactions, and records of the Authority on an annual 
     basis.

     ``SEC. 382L. ANNUAL REPORT.

       ``Not later than 180 days after the end of each fiscal 
     year, the Authority shall submit to the President and to 
     Congress a report describing the activities carried out under 
     this subtitle.

     ``SEC. 382M. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There is authorized to be appropriated 
     to the Authority to carry out this subtitle $30,000,000 for 
     each of fiscal years 2001 through 2002, to remain available 
     until expended.
       ``(b) Administrative Expenses.--Not more than 5 percent of 
     the amount appropriated under subsection (a) for a fiscal 
     year shall be used for administrative expenses of the 
     Authority.

     ``SEC. 382N. TERMINATION OF AUTHORITY.

       ``This subtitle and the authority provided under this 
     subtitle expire on October 1, 2002.''.

     SEC. 504. AREA COVERED BY LOWER MISSISSIPPI DELTA DEVELOPMENT 
                   COMMISSION.

       (a) In General.--Section 4(2)(D) of the Delta Development 
     Act (42 U.S.C. 3121 note; 102 Stat. 2246) is amended by 
     inserting ``Natchitoches,'' after ``Winn,''.
       (b) Conforming Amendment.--The matter under the heading 
     ``salaries and expenses'' under the heading ``Farmers Home 
     Administration'' in title II of Public Law 100-460 (102 Stat. 
     2246) is amended in the fourth proviso by striking ``carry 
     out'' and all that follows through ``bills are hereby'' and 
     inserting ``carry out S. 2836, the Delta Development Act, as 
     introduced in the Senate on September 27, 1988, and that bill 
     is''.

              TITLE VI--DAKOTA WATER RESOURCES ACT OF 2000

     SECTION 601. SHORT TITLE.

       This title may be cited as the ``Dakota Water Resources Act 
     of 2000''.

     SEC. 602. PURPOSES AND AUTHORIZATION.

       Section 1 of Public Law 89-108 (79 Stat. 433; 100 Stat. 
     418) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2), by striking ``of'' and inserting 
     ``within'';
       (B) in paragraph (5), by striking ``more timely'' and 
     inserting ``appropriate''; and
       (C) in paragraph (7), by striking ``federally-assisted 
     water resource development project providing irrigation for 
     130,940 acres of land'' and inserting ``multipurpose 
     federally assisted water resource project providing 
     irrigation, municipal, rural, and industrial water systems, 
     fish, wildlife, and other natural resource conservation and 
     development, recreation, flood control, ground water 
     recharge, and augmented stream flows'';
       (2) in subsection (b)--
       (A) by inserting ``, jointly with the State of North 
     Dakota,'' after ``construct'';
       (B) by striking ``the irrigation of 130,940 acres'' and 
     inserting ``irrigation'';
       (C) by striking ``fish and wildlife conservation'' and 
     inserting ``fish, wildlife, and other natural resource 
     conservation'';
       (D) by inserting ``augmented stream flows, ground water 
     recharge,'' after ``flood control,''; and
       (E) by inserting ``(as modified by the Dakota Water 
     Resources Act of 2000)'' before the period at the end;
       (3) in subsection (e), by striking ``terminated'' and all 
     that follows and inserting ``terminated.''; and
       (4) by striking subsections (f) and (g) and inserting the 
     following:
       ``(f) Costs.--
       ``(1) Estimate.--The Secretary shall estimate--
       ``(A) the actual construction costs of the facilities 
     (including mitigation facilities) in existence as of the date 
     of enactment of the Dakota Water Resources Act of 2000; and
       ``(B) the annual operation, maintenance, and replacement 
     costs associated with the used and unused capacity of the 
     features in existence as of that date.
       ``(2) Repayment contract.--An appropriate repayment 
     contract shall be negotiated that provides for the making of 
     a payment for each payment period in an amount that is 
     commensurate with the percentage of the total capacity of the 
     project that is in actual use during the payment period.
       ``(3) Operation and maintenance costs.--Except as otherwise 
     provided in this Act or Reclamation Law--
       ``(A) The Secretary shall be responsible for the costs of 
     operation and maintenance of the proportionate share of unit 
     facilities in existence on the date of enactment of the 
     Dakota Water Resources Act of 2000 attributable to the 
     capacity of the facilities (including mitigation facilities) 
     that remain unused;
       ``(B) The State of North Dakota shall be responsible for 
     costs of operation and maintenance of the proportionate share 
     of existing unit facilities that are used and shall be 
     responsible for the full costs of operation and maintenance 
     of any facility constructed after the date of enactment of 
     the Dakota Water Resources Act of 2000; and
       ``(C) The State of North Dakota shall be responsible for 
     the costs of providing energy to authorized unit facilities.
       ``(g) Agreement Between the Secretary and the State.--The 
     Secretary shall enter into 1 or more agreements with the 
     State of North Dakota to carry out this Act, including 
     operation and maintenance of the completed unit facilities 
     and the design and construction of authorized new unit 
     facilities by the State.
       ``(h) Boundary Waters Treaty of 1909.--
       ``(1) Delivery of water into the hudson bay basin.--Prior 
     to construction of any water systems authorized under this 
     Act to deliver Missouri River water into the Hudson Bay 
     basin, the Secretary, in consultation with the Secretary of 
     State and the Administrator of the Environmental Protection 
     Agency, must determine that adequate treatment can be 
     provided to meet the requirements of the Treaty between the 
     United States and Great Britain relating to Boundary Waters 
     Between the United States and Canada, signed at Washington, 
     January 11, 1909 (26 Stat. 2448; TS 548) (commonly known as 
     the Boundary Waters Treaty of 1909).
       ``(2) Costs.--All costs of construction, operation, 
     maintenance, and replacement of water treatment and related 
     facilities authorized by this Act and attributable to meeting 
     the requirements of the treaty referred to in paragraph (1) 
     shall be nonreimbursable.''.

     SEC. 603. FISH AND WILDLIFE.

       Section 2 of Public Law 89-108 (79 Stat. 433; 100 Stat. 
     419) is amended--
       (1) by striking subsections (b), (c), and (d) and inserting 
     the following:
       ``(b) Fish and Wildlife Costs.--All fish and wildlife 
     enhancement costs incurred in connection with waterfowl 
     refuges, waterfowl production areas, and wildlife 
     conservation areas proposed for Federal or State 
     administration shall be nonreimbursable.
       ``(c) Recreation Areas.--
       ``(1) Costs.--If non-Federal public bodies continue to 
     agree to administer land and water areas approved for 
     recreation and agree to bear not less than 50 percent of the 
     separable costs of the unit allocated to recreation and 
     attributable to those areas and all the costs of operation, 
     maintenance, and replacement incurred in connection 
     therewith, the remainder of the separable capital costs so 
     allocated and attributed shall be nonreimbursable.
       ``(2) Approval.--The recreation areas shall be approved by 
     the Secretary in consultation and coordination with the State 
     of North Dakota.
       ``(d) Non-Federal Share.--The non-Federal share of the 
     separable capital costs of the unit allocated to recreation 
     shall be borne by non-Federal interests, using the following 
     methods, as the Secretary may determine to be appropriate:
       ``(1) Services in kind.
       ``(2) Payment, or provision of lands, interests therein, or 
     facilities for the unit.
       ``(3) Repayment, with interest, within 50 years of first 
     use of unit recreation facilities.'';
       (2) in subsection (e)--
       (A) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (3), respectively;
       (B) by inserting ``(1)'' after ``(e)'';
       (C) in paragraph (2) (as redesignated by subparagraph 
     (A))--
       (i) in the first sentence--

[[Page 26864]]

       (I) by striking ``within ten years after initial unit 
     operation to administer for recreation and fish and wildlife 
     enhancement'' and inserting ``to administer for recreation''; 
     and
       (II) by striking ``which are not included within Federal 
     waterfowl refuges and waterfowl production areas''; and

       (ii) in the second sentence, by striking ``or fish and 
     wildlife enhancement''; and
       (D) in the first sentence of paragraph (3) (as redesignated 
     by subparagraph (A))--
       (i) by striking ``, within ten years after initial 
     operation of the unit,''; and
       (ii) by striking ``paragraph (1) of this subsection'' and 
     inserting ``paragraph (2)'';
       (3) in subsection (f), by striking ``and fish and wildlife 
     enhancement''; and
       (4) in subsection (j)--
       (A) in paragraph (1), by striking ``prior to the completion 
     of construction of Lonetree Dam and Reservoir''; and
       (B) by adding at the end the following:
       ``(4) Taayer reservoir.--Taayer Reservoir is deauthorized 
     as a project feature. The Secretary, acting through the 
     Commissioner of Reclamation, shall acquire (including 
     acquisition through donation or exchange) up to 5,000 acres 
     in the Kraft and Pickell Slough areas and to manage the area 
     as a component of the National Wildlife Refuge System giving 
     consideration to the unique wildlife values of the area. In 
     acquiring the lands which comprise the Kraft and Pickell 
     Slough complex, the Secretary shall acquire wetlands in the 
     immediate vicinity which may be hydrologically related and 
     nearby uplands as may be necessary to provide for proper 
     management of the complex. The Secretary shall provide for 
     appropriate visitor access and control at the refuge.
       ``(5) Deauthorization of lonetree dam and reservoir.--The 
     Lonetree Dam and Reservoir is deauthorized, and the Secretary 
     shall designate the lands acquired for the former reservoir 
     site as a wildlife conservation area. The Secretary shall 
     enter into an agreement with the State of North Dakota 
     providing for the operation and maintenance of the wildlife 
     conservation area as an enhancement feature, the costs of 
     which shall be paid by the Secretary.''.

     SEC. 604. INTEREST CALCULATION.

       Section 4 of Public Law 89-108 (100 Stat. 435) is amended 
     by adding at the end the following: ``Interest during 
     construction shall be calculated only until such date as the 
     Secretary declares any particular feature to be substantially 
     complete, regardless of whether the feature is placed into 
     service.''.

     SEC. 605. IRRIGATION FACILITIES.

       Section 5 of Public Law 89-108 (100 Stat. 419) is amended--
       (1) by striking ``Sec. 5. (a)(1)'' and all that follows 
     through subsection (c) and inserting the following:

     ``SEC. 5. IRRIGATION FACILITIES.

       ``(a) In General.--
       ``(1) Authorized development.--In addition to the 5,000-
     acre Oakes Test Area in existence on the date of enactment of 
     the Dakota Water Resources Act of 2000, the Secretary may 
     develop irrigation in--
       ``(A) the Turtle Lake service area (13,700 acres);
       ``(B) the McClusky Canal service area (10,000 acres); and
       ``(C) if the investment costs are fully reimbursed without 
     aid to irrigation from the Pick- Sloan Missouri Basin 
     Program, the New Rockford Canal service area (1,200 acres).
       ``(2) Development not authorized.--None of the irrigation 
     authorized by this section may be developed in the Hudson 
     Bay/Devils Lake Basin.
       ``(3) No excess development.--The Secretary shall not 
     develop irrigation in the service areas described in 
     paragraph (1) in excess of the acreage specified in that 
     paragraph, except that the Secretary shall develop up to 
     28,000 acres of irrigation in other areas of North Dakota 
     (such as the Elk/Charbonneau, Mon-Dak, Nesson Valley, 
     Horsehead Flats, and Oliver-Mercer areas) that are not 
     located in the Hudson Bay/Devils Lake drainage basin or James 
     River drainage basin.
       ``(4) Pumping power.--Irrigation development authorized by 
     this section shall be considered authorized units of the 
     Pick-Sloan Missouri Basin Program and eligible to receive 
     project pumping power.
       ``(5) Principal supply works.--The Secretary shall maintain 
     the Snake Creek Pumping Plant, New Rockford Canal, and 
     McClusky Canal features of the principal supply works. 
     Subject to the provisions of section (8) of this Act, the 
     Secretary shall select a preferred alternative to implement 
     the Dakota Water Resources Act of 2000. In making this 
     section, one of the alternatives the Secretary shall consider 
     is whether to connect the principal supply works in existence 
     on the date of enactment.'';
       (2) by redesignating subsections (d), (e), and (f) as 
     subsections (b), (c), and (d), respectively;
       (3) in the first sentence of subsection (b) (as 
     redesignated by paragraph (2)), by striking ``(a)(1)'' and 
     inserting ``(a)'';
       (4) in the first sentence of subsection (c) (as 
     redesignated by paragraph (2)), by striking ``Lucky Mound 
     (7,700 acres), Upper Six Mile Creek (7,500 acres)'' and 
     inserting ``Lucky Mound (7,700 acres) and Upper Six Mile 
     Creek (7,500 acres), or such other lands at Fort Berthold of 
     equal acreage as may be selected by the tribe and approved by 
     the Secretary,''; and
       (5) by adding at the end the following:
       ``(e) Irrigation Report to Congress.--
       ``(1) In general.--The Secretary shall investigate and 
     prepare a detailed report on the undesignated 28,000 acres in 
     subsection (a)(3) as to costs and benefits for any irrigation 
     units to be developed under Reclamation law.
       ``(2) Finding.--The report shall include a finding on the 
     economic, financial and engineering feasibility of the 
     proposed irrigation unit, but shall be limited to the 
     undesignated 28,000 acres.
       ``(3) Authorization.--If the Secretary finds that the 
     proposed construction is feasible, such irrigation units are 
     authorized without further Act of Congress.
       ``(4) Documentation.--No expenditure for the construction 
     of facilities authorized under this section shall be made 
     until after the Secretary, in cooperation with the State of 
     North Dakota, has prepared the appropriate documentation in 
     accordance with section 1 and pursuant to the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     analyzing the direct and indirect impacts of implementing the 
     report.''.

     SEC. 606. POWER.

       Section 6 of Public Law 89-108 (79 Stat. 435; 100 Stat. 
     421) is amended--
       (1) in subsection (b)--
       (A) by striking ``Notwithstanding the provisions of'' and 
     inserting ``Pursuant to the provisions of''; and
       (B) by striking ``revenues,'' and all that follows and 
     inserting ``revenues.''; and
       (2) by striking subsection (c) and inserting the following:
       ``(c) No Increase in Rates or Affect on Repayment 
     Methodology.--In accordance with the last sentence of section 
     302(a)(3) of the Department of Energy Organization Act (42 
     U.S.C. 7152(a)(3)), section 1(e) shall not result in any 
     reallocation of project costs and shall not result in 
     increased rates to Pick-Sloan Missouri Basin Program 
     customers. Nothing in the Dakota Water Resources Act of 2000 
     alters or affects in any way the repayment methodology in 
     effect as of the date of enactment of that Act for other 
     features of the Pick-Sloan Missouri Basin Program.''.

     SEC. 607. MUNICIPAL, RURAL, AND INDUSTRIAL WATER SERVICE.

       Section 7 of Public Law 89-108 (100 Stat. 422) is amended--
       (1) in subsection (a)(3)--
       (A) in the second sentence--
       (i) by striking ``The non-Federal share'' and inserting 
     ``Unless otherwise provided in this Act, the non-Federal 
     share'';
       (ii) by striking ``each water system'' and inserting 
     ``water systems'';
       (iii) by inserting after the second sentence the following: 
     ``The State may use the Federal and non-Federal funds to 
     provide grants or loans for municipal, rural, and industrial 
     water systems. The State shall use the proceeds of repaid 
     loans for municipal, rural, and industrial water systems. 
     Proceeds from loan repayments and any interest thereon shall 
     be treated as Federal funds.''; and
       (iv) by striking the last sentence and inserting the 
     following: ``The Southwest Pipeline Project, the Northwest 
     Area Water Supply Project, the Red River Valley Water Supply 
     Project, and other municipal, industrial, and rural water 
     systems in the State of North Dakota shall be eligible for 
     funding under the terms of this section. Funding provided 
     under this section for the Red River Valley Water Supply 
     Project shall be in addition to funding for that project 
     under section 10(a)(1)(B). The amount of non-Federal 
     contributions made after May 12, 1986, that exceeds the 25 
     percent requirement shall be credited to the State for future 
     use in municipal, rural, and industrial projects under this 
     section.''; and
       (2) by striking subsections (b), (c), and (d) and inserting 
     the following:
       ``(b) Water Conservation Program.--The State of North 
     Dakota may use funds provided under subsections (a) and 
     (b)(1)(A) of section 10 to develop and implement a water 
     conservation program. The Secretary and the State shall 
     jointly establish water conservation goals to meet the 
     purposes of the State program and to improve the availability 
     of water supplies to meet the purposes of this Act. If the 
     State achieves the established water conservation goals, the 
     non-Federal cost share for future projects under subsection 
     (a)(3) shall be reduced to 24.5 percent.
       ``(c) Nonreimbursability of Costs.--With respect to the 
     Southwest Pipeline Project, the Northwest Area Water Supply 
     Project, the Red River Valley Water Supply Project, and other 
     municipal, industrial, and rural water systems in North 
     Dakota, the costs of the features constructed on the Missouri 
     River by the Secretary of the Army before the date of 
     enactment of the Dakota Water Resources Act of 2000 shall be 
     nonreimbursable.
       ``(d) Indian Municipal Rural and Industrial Water Supply.--
     The Secretary shall construct, operate, and maintain such 
     municipal, rural, and industrial water systems as the 
     Secretary determines to be necessary to meet the economic, 
     public health, and environmental needs of the Fort Berthold, 
     Standing Rock, Turtle Mountain (including the Trenton Indian 
     Service Area), and Fort Totten Indian Reservations and 
     adjacent areas.''.

     SEC. 608. SPECIFIC FEATURES.

       (a) Sykeston Canal.--Sykeston Canal is hereby deauthorized.
       (b) In General.--Public Law 89-108 (100 Stat. 423) is 
     amended by striking section 8 and inserting the following:

     ``SEC. 8. SPECIFIC FEATURES.

       ``(a) Red River Valley Water Supply Project.--
       ``(1) In general.--Subject to the requirements of this 
     section, the Secretary shall construct a

[[Page 26865]]

     feature or features to provide water to the Sheyenne River 
     water supply and release facility or such other feature or 
     features as are selected under subsection (d).
       ``(2) Design and construction.--The feature or features 
     shall be designed and constructed to meet only the following 
     water supply requirements as identified in the report 
     prepared pursuant to subsection (b) of this section: 
     Municipal, rural, and industrial water supply needs; ground 
     water recharge; and streamflow augmentation.
       ``(3) Commencement of construction.--(A) If the Secretary 
     selects a project feature under this section that would 
     provide water from the Missouri River or its tributaries to 
     the Sheyenne River water supply and release facility or from 
     the Missouri River or its tributaries to such other 
     conveyance facility as the Secretary selects under this 
     section, no later than 90 days after the completion of the 
     final environmental impact statement, the Secretary shall 
     transmit to Congress a comprehensive report which provides--
       ``(i) a detailed description of the proposed project 
     feature;
       ``(ii) a summary of major issues addressed in the 
     environmental impact statement;
       ``(iii) likely effects, if any, on other States bordering 
     the Missouri River and on the State of Minnesota; and
       ``(iv) a description of how the project feature complies 
     with the requirements of section 1(h)(1) of this Act 
     (relating to the Boundary Waters Treaty of 1909).
       ``(B) No project feature or features that would provide 
     water from the Missouri River or its tributaries to the 
     Sheyenne River water supply and release facility or from the 
     Missouri River or its tributaries to such other conveyance 
     facility as the Secretary selects under this section shall be 
     constructed unless such feature is specifically authorized by 
     an Act of Congress approved subsequent to the Secretary's 
     transmittal of the report required in subparagraph (A). If, 
     after complying with subsections (b) through (d) of this 
     section, the Secretary selects a feature or features using 
     only in-basin sources of water to meet the water needs of the 
     Red River Valley identified in subsection (b), such features 
     are authorized without further Act of Congress. The Act of 
     Congress referred to in this subparagraph must be an 
     authorization bill, and shall not be a bill making 
     appropriations.
       ``(C) The Secretary may not commence construction on the 
     feature until a master repayment contract or water service 
     agreement consistent with this Act between the Secretary and 
     the appropriate non-Federal entity has been executed.
       ``(b) Report on Red River Valley Water Needs and Options.--
       ``(1) In general.--The Secretary of the Interior shall 
     conduct a comprehensive study of the water quality and 
     quantity needs of the Red River Valley in North Dakota and 
     possible options for meeting those needs.
       ``(2) Needs.--The needs addressed in the report shall 
     include such needs as--
       ``(A) municipal, rural, and industrial water supplies;
       ``(B) water quality;
       ``(C) aquatic environment;
       ``(D) recreation; and
       ``(E) water conservation measures.
       ``(3) Process.--In conducting the study, the Secretary 
     through an open and public process shall solicit input from 
     gubernatorial designees from states that may be affected by 
     possible options to meet such needs as well as designees from 
     other federal agencies with relevant expertise. For any 
     option that includes an out-of-basin solution, the Secretary 
     shall consider the effect of the option on other states that 
     may be affected by such option, as well as other appropriate 
     considerations. Upon completion, a draft of the study shall 
     be provided by the Secretary to such states and federal 
     agencies. Such states and agencies shall be given not less 
     than 120 days to review and comment on the study method, 
     findings and conclusions leading to any alternative that may 
     have an impact on such states or on resources subject to such 
     federal agencies' jurisdiction. The Secretary shall receive 
     and take into consideration any such comments and produce a 
     final report and transmit the final report to Congress.
       ``(4) Limitation.--No design or construction of any feature 
     or features that facilitate an out-of-basin transfer from the 
     Missouri River drainage basin shall be authorized under the 
     provisions of this subsection.
       ``(c) Environmental Impact Statement.--
       ``(1) In general.--Nothing in this section shall be 
     construed to supersede any requirements under the National 
     Environmental Policy Act or the Administrative Procedures 
     Act.
       ``(2) Draft.--
       ``(A) Deadline.--Pursuant to an agreement between the 
     Secretary and State of North Dakota as authorized under 
     section 1(g), not later than 1 year after the date of 
     enactment of the Dakota Water Resources Act of 2000, the 
     Secretary and the State of North Dakota shall jointly prepare 
     and complete a draft environmental impact statement 
     concerning all feasible options to meet the comprehensive 
     water quality and quantity needs of the Red River Valley and 
     the options for meeting those needs, including the delivery 
     of Missouri River water to the Red River Valley.
       ``(B) Report on status.--If the Secretary and State of 
     North Dakota cannot prepare and complete the draft 
     environmental impact statement within 1 year after the date 
     of enactment of the Dakota Water Resources Act of 2000, the 
     Secretary, in consultation and coordination with the State of 
     North Dakota, shall report to Congress on the status of this 
     activity, including an estimate of the date of completion.
       ``(3) Final.--
       ``(A) Deadline.--Not later than 1 year after filing the 
     draft environmental impact statement, a final environmental 
     impact statement shall be prepared and published.
       ``(B) Report on status.--If the Secretary and State of 
     North Dakota cannot prepare and complete a final 
     environmental impact statement within 1 year of the 
     completion of the draft environmental impact statement, the 
     Secretary, in consultation and coordination with the State of 
     North Dakota, shall report to Congress on the status of this 
     activity, including an estimate of the date of completion.
       ``(d) Process for Selection.--
       ``(1) In general.--After reviewing the final report 
     required by subsection (b)(1) and complying with subsection 
     (c), the Secretary, in consultation and coordination with the 
     State of North Dakota in coordination with affected local 
     communities, shall select 1 or more project features 
     described in subsection (a) that will meet the comprehensive 
     water quality and quantity needs of the Red River Valley. The 
     Secretary's selection of an alternative shall be subject to 
     judicial review.
       ``(2) Agreements.--If the Secretary selects an option under 
     paragraph (1) that uses only in-basin sources of water, not 
     later than 180 days after the record of decision has been 
     executed, the Secretary shall enter into a cooperative 
     agreement with the State of North Dakota to construct the 
     feature or features selected. If the Secretary selects an 
     option under paragraph (1) that would require a further act 
     of Congress under the provisions of subsection (a), not later 
     than 180 days after the date of enactment of legislation 
     required under subsection (a) the Secretary shall enter into 
     a cooperative agreement with the State of North Dakota to 
     construct the feature or features authorized by that 
     legislation.
       ``(e) Sheyenne River Water Supply and Release or Alternate 
     Features.--The Secretary shall construct, operate, and 
     maintain a Sheyenne River water supply and release feature 
     (including a water treatment plant) capable of delivering 100 
     cubic feet per second of water or any other amount determined 
     in the reports under this section, for the cities of Fargo 
     and Grand Forks and surrounding communities, or such other 
     feature or features as may be selected under subsection (d).
       ``(f) Devils Lake.--No funds authorized under this Act may 
     be used to carry out the portion of the feasibility study of 
     the Devils Lake basin, North Dakota, authorized under the 
     Energy and Water Development Appropriations Act of 1993 
     (Public Law 102-377), that addresses the needs of the area 
     for stabilized lake levels through inlet controls, or to 
     otherwise study any facility or carry out any activity that 
     would permit the transfer of water from the Missouri River 
     drainage basin into Devils Lake, North Dakota.''.

     SEC. 609. OAKES TEST AREA TITLE TRANSFER.

       Public Law 89-108 (100 Stat. 423) is amended by striking 
     section 9 and inserting the following:

     ``SEC. 9. OAKES TEST AREA TITLE TRANSFER.

       ``(a) In General.--Not later than 2 years after execution 
     of a record of decision under section 8(d) on whether to use 
     the New Rockford Canal as a means of delivering water to the 
     Red River Basin as described in section 8, the Secretary 
     shall enter into an agreement with the State of North Dakota, 
     or its designee, to convey title and all or any rights, 
     interests, and obligations of the United States in and to the 
     Oakes Test Area as constructed and operated under Public Law 
     99-294 (100 Stat. 418) under such terms and conditions as the 
     Secretary believes would fully protect the public interest.
       ``(b) Terms and Conditions.--The agreement shall define the 
     terms and conditions of the transfer of the facilities, 
     lands, mineral estate, easements, rights-of-way and water 
     rights including the avoidance of costs that the Federal 
     Government would otherwise incur in the case of a failure to 
     agree under subsection (d).
       ``(c) Compliance.--The action of the Secretary under this 
     section shall comply with all applicable requirements of 
     Federal, State, and local law.
       ``(d) Failure To Agree.--If an agreement is not reached 
     within the time limit specified in subsection (a), the 
     Secretary shall dispose of the Oakes Test Area facilities 
     under the Federal Property and Administrative Services Act of 
     1949 (40 U.S.C. 471 et seq.).''.

     SEC. 610. AUTHORIZATION OF APPROPRIATIONS.

       Section 10 of Public Law 89-108 (100 Stat. 424; 106 Stat. 
     4669, 4739) is amended--
       (1) in subsection (a)--
       (A) by striking ``(a)(1) There are authorized'' and 
     inserting the following:
       ``(a) Water Distribution Features.--
       ``(1) In general.--
       ``(A) Main stem supply works.--There is authorized'';
       (B) in paragraph (1)--
       (i) in the first sentence, by striking ``$270,395,000 for 
     carrying out the provisions of section 5(a) through 5(c) and 
     section 8(a)(1) of this Act'' and inserting ``$164,000,000 to 
     carry out section 5(a)'';
       (ii) by inserting after subparagraph (A) (as designated by 
     clause (i)) the following:
       ``(B) Red river valley water supply project.--There is 
     authorized to be appropriated to carry out section 8(a)(1) 
     $200,000,000.''; and
       (iii) by striking ``Such sums'' and inserting the 
     following:

[[Page 26866]]

       ``(C) Availability.--Such sums''; and
       (C) in paragraph (2)--
       (i) by striking ``(2) There is'' and inserting the 
     following:
       ``(2) Indian irrigation.--
       ``(A) In general.--There is'';
       (ii) by striking ``for carrying out section 5(e) of this 
     Act'' and inserting ``to carry out section 5(c)''; and
       (iii) by striking ``Such sums'' and inserting the 
     following:
       ``(B) Availability.--Such sums'';
       (2) in subsection (b)--
       (A) by striking ``(b)(1) There is'' and inserting the 
     following:
       ``(b) Municipal, Rural, and Industrial Water Supply.--
       ``(1) Statewide.--
       ``(A) Initial amount.--There is'';
       (B) in paragraph (1)--
       (i) by inserting before ``Such sums'' the following:
       ``(B) Additional amount.--In addition to the amount under 
     subparagraph (A), there is authorized to be appropriated to 
     carry out section 7(a) $200,000,000.''; and
       (ii) by striking ``Such sums'' and inserting the following:
       ``(C) Availability.--Such sums''; and
       (C) in paragraph (2)--
       (i) by striking ``(2) There are authorized to be 
     appropriated $61,000,000'' and all that follows through 
     ``Act.'' and inserting the following:
       ``(2) Indian municipal, rural, and industrial and other 
     delivery features.--
       ``(A) Initial amount.--There is authorized to be 
     appropriated--
       ``(i) to carry out section 8(a)(1), $40,500,000; and
       ``(ii) to carry out section 7(d), $20,500,000.'';
       (ii) by inserting before ``Such sums'' the following:
       ``(B) Additional amount.--
       ``(i) In general.--In addition to the amount under 
     subparagraph (A), there is authorized to be appropriated to 
     carry out section 7(d) $200,000,000.
       ``(ii) Allocation.--The amount under clause (i) shall be 
     allocated as follows:

       ``(I) $30,000,000 to the Fort Totten Indian Reservation.
       ``(II) $70,000,000 to the Fort Berthold Indian Reservation.
       ``(IV) $80,000,000 to the Standing Rock Indian Reservation.
       ``(V) $20,000,000 to the Turtle Mountain Indian 
     Reservation.''; and

       (ii) by striking ``Such sums'' and inserting the following:
       ``(C) Availability.--Such sums'';
       (3) in subsection (c)--
       (A) by striking ``(c) There is'' and inserting the 
     following:
       ``(c) Resources Trust and Other Provisions.--
       ``(1) Initial amount.--There is''; and
       (B) by striking the second and third sentences and 
     inserting the following:
       ``(2) Additional amount.--In addition to amount under 
     paragraph (1), there are authorized to be appropriated--
       ``(A) $6,500,000 to carry out recreational projects; and
       ``(B) an additional $25,000,000 to carry out section 11;

     to remain available until expended.
       ``(3) Recreational projects.--Of the funds authorized under 
     paragraph (2) for recreational projects, up to $1,500,000 may 
     be used to fund a wetland interpretive center in the State of 
     North Dakota.
       ``(4) Operation and maintenance.--
       ``(A) In general.-- There are authorized to be appropriated 
     such sums as are necessary for operation and maintenance of 
     the unit (including the mitigation and enhancement features).
       ``(B) Authorization limits.--Expenditures for operation and 
     maintenance of features substantially completed and features 
     constructed before the date of enactment of the Dakota Water 
     Resources Act of 2000, including funds expended for such 
     purposes since the date of enactment of Public Law 99-294, 
     shall not be counted against the authorization limits in this 
     section.
       ``(5) Mitigation and enhancement land.--On or about the 
     date on which the features authorized by section 8(a) are 
     operational, a separate account in the Natural Resources 
     Trust authorized by section 11 shall be established for 
     operation and maintenance of the mitigation and enhancement 
     land associated with the unit.''; and
       (4) by striking subsection (e) and inserting the following:
       ``(e) Indexing.--The $200,000,000 amount under subsection 
     (b)(1)(B), the $200,000,000 amount under subsection 
     (a)(1)(B), and the funds authorized under subsection (b)(2) 
     shall be indexed as necessary to allow for ordinary 
     fluctuations of construction costs incurred after the date of 
     enactment of the Dakota Water Resources Act of 2000 as 
     indicated by engineering cost indices applicable for the type 
     of construction involved. All other authorized cost ceilings 
     shall remain unchanged.''.

     SEC. 611. NATURAL RESOURCES TRUST.

       Section 11 of Public Law 89-108 (100 Stat. 424) is 
     amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Contribution.--
       ``(1) Initial authorization.--
       ``(A) In general.--From the sums appropriated under section 
     10 for the Garrison Diversion Unit, the Secretary shall make 
     an annual Federal contribution to a Natural Resources Trust 
     established by non-Federal interests in accordance with 
     subsection (b) and operated in accordance with subsection 
     (c).
       ``(B) Amount.--The total amount of Federal contributions 
     under subparagraph (A) shall not exceed $12,000,000.
       ``(2) Additional authorization.--
       ``(A) In general.--In addition to the amount authorized in 
     paragraph (1), the Secretary shall make annual Federal 
     contributions to the Natural Resources Trust until the amount 
     authorized by section 10(c)(2)(B) is reached, in the manner 
     stated in subparagraph (B).
       ``(B) Annual amount.--The amount of the contribution under 
     subparagraph (A) for each fiscal year shall be the amount 
     that is equal to 5 percent of the total amount that is 
     appropriated for the fiscal year under subsections (a)(1)(B) 
     and (b)(1)(B) of section 10.''.
       (2) in subsection (b), by striking ``Wetlands Trust'' and 
     inserting ``Natural Resources Trust''; and
       (3) in subsection (c)--
       (A) by striking ``Wetland Trust'' and inserting ``Natural 
     Resources Trust'';
       (B) by striking ``are met'' and inserting ``is met'';
       (C) in paragraph (1), by inserting ``, grassland 
     conservation and riparian areas'' after ``habitat''; and
       (D) in paragraph (2), by adding at the end the following:
       ``(C) The power to fund incentives for conservation 
     practices by landowners.''

                               TITLE VII

     SECTION 701. FINDINGS.

       Congress finds that--
       (1) there is a continuing need for reconciliation between 
     Indians and non-Indians;
       (2) the need may be met partially through the promotion of 
     the understanding of the history and culture of Sioux Indian 
     tribes;
       (3) the establishment of a Sioux Nation Tribal Supreme 
     Court will promote economic development on reservations of 
     the Sioux Nation and provide investors that contribute to 
     that development a greater degree of certainty and confidence 
     by--
       (A) reconciling conflicting tribal laws; and
       (B) strengthening tribal court systems;
       (4) the reservations of the Sioux Nation--
       (A) contain the poorest counties in the United States; and
       (B) lack adequate tools to promote economic development and 
     the creation of jobs;
       (5) the establishment of a Native American Economic 
     Development Council will assist in promoting economic growth 
     and reducing poverty on reservations of the Sioux Nation by--
       (A) coordinating economic development efforts;
       (B) centralizing expertise concerning Federal assistance; 
     and
       (C) facilitating the raising of funds from private 
     donations to meet matching requirements under certain Federal 
     assistance programs;
       (6) there is a need to enhance and strengthen the capacity 
     of Indian tribal governments and tribal justice systems to 
     address conflicts which impair relationships within Indian 
     communities and between Indian and non-Indian communities and 
     individuals; and
       (7) the establishment of the National Native American 
     Mediation Training Center, with the technical assistance of 
     tribal and Federal agencies, including the Community 
     Relations Service of the Department of Justice, would enhance 
     and strengthen the mediation skills that are useful in 
     reducing tensions and resolving conflicts in Indian 
     communities and between Indian and non-Indian communities and 
     individuals.

     SEC. 702. DEFINITIONS.

       In this Title:
       (1) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given that term in section 4(e) of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 
     450b(e)).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (3) Sioux nation.--The term ``Sioux Nation'' means the 
     Indian tribes comprising the Sioux Nation.

     SEC. 703. RECONCILIATION CENTER.

       (a) Establishment.--The Secretary of Housing and Urban 
     Development, in cooperation with the Secretary, shall 
     establish, in accordance with this section, a reconciliation 
     center, to be known as ``Reconciliation Place''.
       (b) Location.--Notwithstanding any other provision of law, 
     the Secretary shall take into trust for the benefit of the 
     Sioux Nation the parcel of land in Stanley County, South 
     Dakota, that is described as ``The Reconciliation Place 
     Addition'' that is owned on the date of enactment of this Act 
     by the Wakpa Sica Historical Society, Inc., for the purpose 
     of establishing and operating The Reconciliation Place.
       (c) Purposes.--The purposes of Reconciliation Place shall 
     be as follows:
       (1) To enhance the knowledge and understanding of the 
     history of Native Americans by--
       (A) displaying and interpreting the history, art, and 
     culture of Indian tribes for Indians and non-Indians; and
       (B) providing an accessible repository for--
       (i) the history of Indian tribes; and
       (ii) the family history of members of Indian tribes.
       (2) To provide for the interpretation of the encounters 
     between Lewis and Clark and the Sioux Nation.
       (3) To house the Sioux Nation Tribal Supreme Court.
       (4) To house the Native American Economic Development 
     Council.

[[Page 26867]]

       (5) To house the National Native American Mediation 
     Training Center to train tribal personnel in conflict 
     resolution and alternative dispute resolution.
       (d) Grant.--
       (1) In general.--The Secretary of Housing and Urban 
     Development shall offer to award a grant to the Wakpa Sica 
     Historical Society of Fort Pierre, South Dakota, for the 
     construction of Reconciliation Place.
       (2) Grant agreement.--
       (A) In general.--As a condition to receiving the grant 
     under this subsection, the appropriate official of the Wakpa 
     Sica Historical Society shall enter into a grant agreement 
     with the Secretary of Housing and Urban Development.
       (B) Consultation.--Before entering into a grant agreement 
     under this paragraph, the Secretary of Housing and Urban 
     Development shall consult with the Secretary concerning the 
     contents of the agreement.
       (C) Duties of the wakpa sica historical society.--The grant 
     agreement under this paragraph shall specify the duties of 
     the Wakpa Sica Historical Society under this section and 
     arrangements for the maintenance of Reconciliation Place.
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated to the Department of Housing and Urban 
     Development $18,258,441, to be used for the grant under this 
     section.

     SEC. 704. SIOUX NATION SUPREME COURT AND NATIONAL NATIVE 
                   AMERICAN MEDIATION TRAINING CENTER.

       (a) In General.--To ensure the development and operation of 
     the Sioux Nation Tribal Supreme Court and the National Native 
     American Mediation Training Center, the Attorney General of 
     the United States shall use available funds to provide 
     technical and financial assistance to the Sioux Nation.
       (b) Authorization of Appropriations.--To carry out this 
     section, there are authorized to be appropriated to the 
     Department of Justice such sums as are necessary.

          TITLE VIII--ERIE CANALWAY NATIONAL HERITAGE CORRIDOR

     SEC. 801. SHORT TITLE; DEFINITIONS.

       (a) Short Title.--This title may be cited as the ``Erie 
     Canalway National Heritage Corridor Act''.
       (b) Definitions.--For the Purposes of this title, the 
     following definitions shall apply:
       (1) Erie canalway.--The Term ``Erie Canalway'' means the 
     524 miles of navigable canal that comprise the New York State 
     Canal System, including the Erie, Cayuga and Seneca, Oswego, 
     and Champlain Canals and the historic alignments of these 
     canals, including the cities of Albany and Buffalo.
       (2) Canalway plan.--The term ``Canalway Plan'' means the 
     comprehensive preservation and management plan for the 
     Corridor required under section 806.
       (3) Commission.--The term ``Commission'' means the Erie 
     Canalway National Heritage Corridor Commission established 
     under section 804.
       (4) Corridor.--The term ``Corridor'' means the Erie 
     Canalway National Heritage Corridor established under section 
     803.
       (5) Governor.--The term ``Governor'' means the Governor of 
     the State of New York.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 802. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress finds that--
       (1) the year 2000 marks the 175th Anniversary of New York 
     State's creation and stewardship of the Erie Canalway for 
     commerce, transportation and recreational purposes, 
     establishing the network which made new York the ``Empire 
     State'' and the Nation's premier commercial and financial 
     center;
       (2) the canals and adjacent areas that comprise the Erie 
     Canalway are a nationally significant resource of historic 
     and recreational value, which merit Federal recognition and 
     assistance;
       (3) the Erie Canalway was instrumental in the establishment 
     of strong political and cultural ties between New England, 
     upstate New York and the old Northwest and facilitated the 
     movement of ideas and people ensuring that social reforms 
     like the abolition of slavery and the women's rights movement 
     spread across upstate New York to the rest of the country;
       (4) the construction of the Erie Canalway was considered a 
     supreme engineering feat, and most American canals were 
     modeled after New York State's canal;
       (5) at the time of construction, the Erie Canalway was the 
     largest public works project ever undertaken by a state, 
     resulting in the creation of critical transportation and 
     commercial routes to transport passengers and goods;
       (6) the Erie Canalway played a key role in turning New York 
     City into a major port and New York State into the preeminent 
     center for commerce, industry, and finance in North America 
     and provided a permanent commercial link between the Port of 
     New York and the cities of eastern Canada, a cornerstone of 
     the peaceful relationship between the two countries;
       (7) the Erie Canalway proved the depth and force of 
     American ingenuity, solidified a national identity, and found 
     an enduring place in American legend, song, and art;
       (8) there is national interest in the preservation and 
     interpretation of the Erie Canalway's important historical, 
     natural, cultural, and scenic resources; and
       (9) partnerships among Federal, State, and local 
     governments and their regional entities, non-profit 
     organizations, and the private sector offer the most 
     effective opportunities for the preservation and 
     interpretation of the Erie Canalway.
       (b) Purposes.--The purposes of this title are--
       (1) to designate the Erie Canalway National Heritage 
     Corridor;
       (2) to provide for and assist in the identification, 
     preservation, promotion, maintenance and interpretation of 
     the historical, natural, cultural, scenic, and recreational 
     resources of the Erie Canalway in ways that reflect its 
     national significance for the benefit of current and future 
     generations;
       (3) to promote and provide access to the Erie Canalway's 
     historical, natural, cultural, scenic and recreational 
     resources;
       (4) to provide a frame work to assist the State of New 
     York, its units of local government, and the communities 
     within the Erie Canalway in the development of integrated 
     cultural, historical, recreational, economic, and community 
     development programs in order to enhance and interpret the 
     unique and nationally significant resources of the Erie 
     Canalway; and
       (5) to authorize Federal financial and technical assistance 
     to the Commission to serve these purposes for the benefit of 
     the people of the State of New York and the nation.

     SEC. 803. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR.

       (a) Establishment.--To carry out the purposes of this title 
     there is established the Erie Canalway National Heritage 
     Corridor in the State of New York.
       (b) Boundaries.--The boundaries of the Corridor shall 
     include those lands generally depicted on a map entitled 
     ``Erie Canalway National Heritage Area'' numbered ERIE/80,000 
     and dated October 2000. This map shall be on file and 
     available for public inspection in the appropriate office of 
     the National Park Service, the office of the Commission, and 
     the office of the New York State Canal Corporation in Albany, 
     New York.
       (c) Ownership and Operation of the New York State Canal 
     System.--The New York State Canal System shall continue to be 
     owned, operated, and managed by the State of New York.

     SEC. 804. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR 
                   COMMISSION.

       (a) Establishment.--There is established the Erie Canalway 
     National Heritage Corridor Commission. The purpose of the 
     Commission shall be--
       (1) to work with Federal, State, and local authorities to 
     develop and implement the Canalway Plan; and
       (2) to foster the integration of canal-related historical, 
     cultural, recreational, scenic, economic and community 
     development initiatives within the Corridor.
       (b) Membership.--The Commission shall be composed of 27 
     members as follows:
       (1) The Secretary of the Interior, ex-officio or the 
     Secretary's designee.
       (2) 7 members, appointed by the Secretary after 
     consideration of recommendations submitted by the Governor 
     and other appropriate officials, with knowledge and 
     experience of the following agencies or those agencies' 
     successors: The New York State Secretary of State, the New 
     York State Department of Environment Conservation, the New 
     York State Office of Parks, Recreation and Historic 
     Preservation, the New York State Department of Agriculture 
     and Markets, the New York State Department of Transportation, 
     and the New York State Canal Corporation, and the Empire 
     State Development Corporation.
       (3) The remaining 19 members who reside within the Corridor 
     and are geographically dispersed throughout the Corridor 
     shall be from local governments and the private sector with 
     knowledge of tourism, economic and community development, 
     regional planning, historic preservation, cultural or natural 
     resource management, conservation, recreation, and education 
     or museum services. These members will be appointed by the 
     Secretary as follows--
       (A) 11 members based on a recommendation from each member 
     of the United States House of Representatives whose district 
     shall encompass the Corridor. Each shall be a resident of the 
     district from which they shall be recommended.
       (B) 2 members based on a recommendation from each United 
     States Senator from New York State.
       (C) 6 members who shall be residents of any county 
     constituting the Corridor. One such member shall have 
     knowledge and experience of the Canal Recreationway 
     Commission.
       (c) Appointments and Vacancies.--Members of the Commission 
     other than ex-officio members shall be appointed for terms of 
     3 years. Of the original appointments, 6 shall be for a term 
     of 1 year, 6 shall be for a term of 2 years and 7 shall be 
     for a term of 3 years. Any member of the Commission appointed 
     for a definite term may serve after expiration of the term 
     until the successor of the member is appointed. Any member 
     appointed to fill a vacancy shall serve for the remainder of 
     the term for which the predecessor was appointed. Any vacancy 
     on the Commission shall be filled in the same manner in which 
     the original appointment was made.
       (d) Compensation.--Members of the Commission shall receive 
     no compensation for their service on the Commission. Members 
     of the Commission, other than employees of the State and 
     Canal Corporation, while away from their homes or regular 
     places of business to perform services for the Commission, 
     shall be allowed travel expenses, including per diem in lieu 
     of subsistence, in the same manner as persons employed 
     intermittently in Government service are

[[Page 26868]]

     allowed under section 5703 of title 5, United States Code.
       (e) Election of Offices.--The Commission shall elect the 
     chairperson and the vice chairperson on an annual basis. The 
     vice chairperson shall serve as the chairperson in the 
     absence of the chairperson.
       (f) Quorum and Voting.--14 members of the Commission shall 
     constitute a quorum but a lesser number may hold hearings. 
     Any member of the Commission may vote by means of a signed 
     proxy exercised by another member of the Commission, however, 
     any member voting by proxy shall not be considered present 
     for purposes of establishing a quorum. For the transaction of 
     any business or the exercise of any power of the Commission, 
     the Commission shall have the power to act by a majority vote 
     of the members present at any meeting at which a quorum is in 
     attendance.
       (g) Meetings.--The Commission shall meet at least quarterly 
     at the call of the chairperson or 14 of its members. Notice 
     of Commission meetings and agendas for the meeting shall be 
     published in local newspapers throughout the Corridor. 
     Meetings of the Commission shall be subject to section 552b 
     of title 5, United States Code (relating to open meetings).
       (h) Powers of the Commission.--To the extent that Federal 
     funds are appropriated, the Commission is authorized--
       (1) to procure temporary and intermittent services and 
     administrative facilities at rates determined to be 
     reasonable by the Commission to carry out the 
     responsibilities of the Commission;
       (2) to request and accept the services of personnel 
     detailed from the State of New York or any political 
     subdivision, and to reimburse the State or political 
     subdivision for such services;
       (3) to request and accept the services of any Federal 
     agency personnel, and to reimburse the Federal agency for 
     such services;
       (4) to appoint and fix the compensation of staff to carry 
     out its duties;
       (5) to enter into cooperative agreements with the State of 
     New York, with any political subdivision of the State, or any 
     person for the purposes of carrying out the duties of the 
     Commission;
       (6) to make grants to assist in the preparation and 
     implementation of the Canalway Plan;
       (7) to seek, accept, and dispose of gifts, bequests, 
     grants, or donations of money, personal property, or 
     services, received from any source. For purposes of section 
     170(c) of the Internal Revenue Code of 1986, any gift to the 
     Commission shall be deemed to be a gift to the United States;
       (8) to assist others in developing educational, 
     informational, and interpretive programs and facilities, and 
     other such activities that may promote the implementation of 
     the Canalway Plan;
       (9) to hold hearings, sit and act at such times and places, 
     take such testimony, and receive such evidence, as the 
     Commission may consider appropriate; the Commission may not 
     issue subpoenas or exercise any subpoena authority;
       (10) to use the United States mails in the same manner as 
     other departments or agencies of the United States;
       (11) to request and receive from the Administrator of 
     General Services, on a reimbursable basis, such 
     administrative support services as the Commission may 
     request; and
       (12) to establish such advisory groups as the Commission 
     deems necessary.
       (i) Acquisition of Property.--Except as provided for 
     leasing administrative facilities under subsection 804(h)(1), 
     the Commission may not acquire any real property or interest 
     in real property.
       (j) Termination.--The Commission shall terminate on the day 
     occurring 10 years after the date of the enactment of this 
     title.

     SEC. 805. DUTIES OF THE COMMISSION.

       (a) Preparation of Canalway Plan.--Not later than 3 years 
     after the Commission receives Federal funding for this 
     purpose, the Commission shall prepare and submit a 
     comprehensive preservation and management Canalway Plan for 
     the Corridor to the Secretary and the Governor for review and 
     approval. In addition to the requirements outlined for the 
     Canalway Plan in section 806, the Canalway Plan shall 
     incorporate and integrate existing federal, state, and local 
     plans to the extent appropriate regarding historic 
     preservation, conservation, education and interpretation, 
     community development, and tourism-related economic 
     development for the Corridor that are consistent with the 
     purpose of this title. The Commission shall solicit public 
     comment on the development of the Canalway Plan.
       (b) Implementation of Canalway Plan.--After the Commission 
     receives Federal funding for this purpose, and after review 
     and upon approval of the Canalway Plan by the Secretary and 
     the Governor, the Commission shall--
       (1) undertake action to implement the Canalway Plan so as 
     to assist the people of the State of New York in enhancing 
     and interpreting the historical, cultural, educational, 
     natural, scenic, and recreational potential of the Corridor 
     identified in the Canalway Plan; and
       (2) support public and private efforts in conservation and 
     preservation of the Canalway's cultural and natural resources 
     and economic revitalization consistent with the goals of the 
     Canalway Plan.
       (c) Priority Actions.--Priority actions which may be 
     carried out by the Commission under subsection 805(b), 
     include the following:
       (1) assisting in the appropriate preservation treatment of 
     the remaining elements of the original Erie Canal;
       (2) assisting the State, and local governments, and 
     nonprofit organizations in designing, establishing and 
     maintaining visitor centers, museums, and other interpretive 
     exhibits in the Corridor;
       (3) assisting in the public awareness and appreciation for 
     the historic, cultural, natural, scenic, and recreational 
     resources and sites in the Corridor;
       (4) assisting the State of New York, local governments, and 
     nonprofit organizations in the preservation and restoration 
     of any historic building, site, or district in the Corridor;
       (5) encouraging, by appropriate means, enhanced economic 
     development in the Corridor consistent with the goals of the 
     Canalway Plan and the purposes of this title; and
       (6) ensuring that clear, consistent signs identifying 
     access points and sites of interest are put in place in the 
     Corridor.
       (d) Annual Reports and Audits.--For any year in which 
     Federal funds have been received under this title, the 
     Commission shall submit an annual report and shall make 
     available an audit of all relevant records to the Governor 
     and the Secretary identifying its expenses and any income, 
     the entities to which any grants or technical assistance were 
     made during the year for which the report was made, and 
     contributions by other parties toward achieving Corridor 
     purposes.

     SEC. 806. CANALWAY PLAN.

       (a) Canalway Plan Requirements.--The Canalway Plan shall--
       (1) include a review of existing plans for the Corridor, 
     including the Canal Recreationway Plan and Canal 
     Revitalization Program, and incorporate them to the extent 
     feasible to ensure consistence with local, regional and state 
     planning efforts;
       (2) provide a thematic inventory, survey, and evaluation of 
     historic properties that should be conserved, restored, 
     developed, or maintained because of their natural, cultural, 
     or historic significance within the Corridor in accordance 
     with the regulations for the National Register of Historic 
     Places;
       (3) identify public and private-sector preservation goals 
     and strategies for the Corridor;
       (4) include a comprehensive interpretive plan that 
     identifies, develops, supports, and enhances interpretation 
     and education programs within the Corridor that may include--
       (A) research related to the construction and history of the 
     canals and the cultural heritage of the canal workers, their 
     families, those that traveled along the canals, the 
     associated farming activities, the landscape, and the 
     communities;
       (B) documentation of and methods to support the 
     perpetuation of music, art, poetry, literature and folkways 
     associated with the canals; and
       (C) educational and interpretative programs related to the 
     Erie Canalway developed in cooperation with State and local 
     governments, educational institutions, and nonprofit 
     institutions;
       (5) include a strategy to further the recreational 
     development of the Corridor that will enable users to 
     uniquely experience the canal system;
       (6) propose programs to protect, interpret and promote the 
     Corridor's historical, cultural, recreational, educational, 
     scenic and natural resources;
       (7) include an inventory of canal-related natural, cultural 
     and historic sites and resources located in the Area;
       (8) recommend Federal, State, and local strategies and 
     policies to support economic development, especially tourism-
     related development and recreation, consistent with the 
     purposes of the Corridor;
       (9) develop criteria and priorities for financial 
     preservation assistance;
       (10) identify and foster strong cooperative relationships 
     between the National Parks Service, the New York State Canal 
     Corporation, other Federal and State agencies, and 
     nongovernmental organizations;
       (11) recommend specific areas for development of 
     interpretive, educational, and technical assistance centers 
     associated with the Corridor; and
       (12) contain a program for implementation of the Canalway 
     Plan by all necessary parties.
       (b) Approval of the Canalway Plan.--The Secretary and the 
     Governor shall approve or disapprove the Canalway Plan not 
     later than 90 days after receiving the Canalway Plan.
       (c) Criteria.--The Secretary may not approve the plan 
     unless the Secretary finds that the plan, if implemented, 
     would adequately protect the significant historical, 
     cultural, natural, and recreational resources of the Corridor 
     and consistent with such protection provide adequate and 
     appropriate outdoor recreational opportunities and economic 
     activities within the Corridor. In determining whether or not 
     to approve the Canalway Plan, the Secretary shall consider 
     whether--
       (1) the Commission has afforded adequate opportunity, 
     including public hearings, for public and governmental 
     involvement in the preparation of the Canalway Plan; and
       (2) the Secretary has received adequate assurances from the 
     Governor and appropriate state officials that the recommended 
     implementation program identified in the plan will be 
     initiated within a reasonable time after the date of approval 
     of the Canalway Plan and such program will ensure effective 
     implementation of State and local aspects of the Canalway 
     Plan.
       (d) Disapproval of Canalway Plan.--If the Secretary or the 
     Governor do not approve the Canalway Plan, the Secretary or 
     the Governor

[[Page 26869]]

     shall advise the Commission in writing within 90 days the 
     reasons therefore and shall indicate any recommendations for 
     revisions. Following completion of any necessary revisions of 
     the Canalway Plan, the Secretary and the Governor shall have 
     90 days to either approve or disapprove of the revised 
     Canalway Plan.
       (e) Amendments to Canalway Plan.--The Secretary and the 
     Governor shall review substantial amendments to the Canalway 
     Plan. Funds appropriated pursuant to this title may not be 
     expended to implement the changes made by such amendments 
     until the Secretary and the Governor approve the amendments.

     SEC. 807. DUTIES OF THE SECRETARY.

       (a) In General.--The Secretary is authorized to assist the 
     Commission in the preparation of the Canalway Plan.
       (b) Technical Assistance.--Pursuant to an approved Canalway 
     Plan, the Secretary is authorized to enter into cooperative 
     agreements with, provide technical assistance to and award 
     grants to the Commission to provide for the preservation and 
     interpretation of the natural, cultural, historical, 
     recreational, and scenic resources of the Corridor, if 
     requested by the Commission.
       (c) Early Actions.--Prior to approval of the Canalway Plan, 
     with the approval of the Commission, the Secretary may 
     provide technical and planning assistance for early actions 
     that are important to the purposes of this title and that 
     protect and preserve resources.
       (d) Canalway Plan Implementation.--Upon approval of the 
     Canalway Plan, the Secretary is authorized to implement those 
     activities that the Canalway Plan has identified that are the 
     responsibility of the Secretary or agent of the Secretary to 
     undertake in the implementation of the Canalway Plan.
       (e) Detail.--Each fiscal year during the existence of the 
     Commission and upon the request of the Commission, the 
     Secretary shall detail to the Commission, on a 
     nonreimbursable basis, 2 employees of the Department of the 
     Interior to enable the Commission to carry out the 
     Commission's duties with regard to the preparation and 
     approval of the Canalway Plan. Such detail shall be without 
     interruption or loss of civil service status, benefits, or 
     privileges.

     SEC. 808. DUTIES OF OTHER FEDERAL ENTITIES.

       Any Federal entity conducting or supporting any activity 
     directly affecting the Corridor, and any unit of government 
     acting pursuant to a grant of Federal funds or a Federal 
     permit or agreement conducting or supporting such activities 
     may--
       (1) consult with the Secretary and the Commission with 
     respect to such activities;
       (2) cooperate with the Secretary and the Commission in 
     carrying out their duties under this title and coordinate 
     such activities with the carrying out of such duties; and
       (3) conduct or support such activities in a manner 
     consistent with the Canalway Plan unless the Federal entity, 
     after consultation with the Secretary and the Commission, 
     determines there is no practicable alternative.

     SEC. 809. SAVINGS PROVISIONS.

       (a) Authority of Governments.--Nothing in this title shall 
     be construed to modify, enlarge, or diminish any authority of 
     the Federal, State, or local governments to regulate any use 
     of land as provided for by law or regulation.
       (b) Zoning or Land.--Nothing in this title shall be 
     construed to grant powers of zoning or land use to the 
     Commission.
       (c) Local Authority and Private Property.--Nothing in this 
     title shall be construed to affect or to authorize the 
     Commission to interfere with--
       (1) the rights of any person with respect to private 
     property;
       (2) any local zoning ordinance or land use plan of the 
     State of New York or political subdivision thereof; or
       (3) any State or local canal related development plans 
     including but not limited to the Canal Recreationway Plan and 
     the Canal Revitalization Program.
       (d) Fish and Wildlife.--The designation of the Corridor 
     shall not be diminish the authority of the State of New York 
     to manage fish and wildlife, including the regulation of 
     fishing and hunting within the Corridor.

     SEC. 810. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--
       (1) Corridor.--There is authorized to be appropriated for 
     the Corridor not more than $1,000,000 for any fiscal year. 
     Not more than a total of $10,000,000 may be appropriated for 
     the Corridor under this title.
       (2) Matching requirement.--Federal funding provided under 
     this paragraph may not exceed 50 percent of the total cost of 
     any activity carried out with such funds. The non-Federal 
     share of such support may be in the form of cash, services, 
     or in-kind contributions, fairly valued.
       (b) Other Funding.--In addition to the sums authorized in 
     subsection (a), there are authorized to be appropriated to 
     the Secretary of the Interior such sums as are necessary for 
     the Secretary for planning and technical assistance.

                  TITLE IX--LAW ENFORCEMENT PAY EQUITY

     SEC. 901. SHORT TITLE

       This title may be cited as the ``Law Enforcement Pay Equity 
     Act of 2000''.

     SEC. 902. ESTABLISHMENT OF UNIFORM SALARY SCHEDULE FOR UNITED 
                   STATES SECRET SERVICE UNIFORMED DIVISION AND 
                   UNITED STATES PARK POLICE.

       (a) In General.--Section 501(c)(1) of the District of 
     Columbia Police and Firemen's Salary Act of 1958 (sec. 4-
     416(c)(1), DC Code) is amended to read as follows:
       ``(c)(1) The annual rates of basic compensation of officers 
     and members of the United States Secret Service Uniformed 
     Division and the United States Park Police, serving in 
     classes corresponding or similar to those in the salary 
     schedule in section 101, shall be fixed in accordance with 
     the following schedule of rates:

 
----------------------------------------------------------------------------------------------------------------
      ``Salary class and title         Step 1     Step 2     Step 3     Step 4     Step 5     Step 6     Step 7
----------------------------------------------------------------------------------------------------------------
         Time between steps                      52 weeks
                                                      104 weeks
----------------------------------------------------------------------------------------------------------------
          Years in service                          1          2          3          5          7          9
----------------------------------------------------------------------------------------------------------------
1: Private.........................     32,623     34,587     36,626     38,306     41,001     43,728     45,407
3: Detective.......................                           42,378     44,502     46,620     48,746     50,837
4: Sergeant........................                                      46,151     48,446     50,746     53,056
5: Lieutenant \1\..................                                                 50,910     53,462     56,545
7: Captain \1\.....................                                                            59,802     62,799
8: Inspector/Major \1\.............                                                            69,163     72,760
9: Deputy Chief \1\................                                                            79,768     85,158
10: Assistant Chief \2\
11: Chief, United States Secret
 Service Uniformed Division, United
 States Park Police \3\
----------------------------------------------------------------------------------------------------------------
\1\ The rate of basic pay for positions in Salary Class 5, 7, 8, and 9 is limited to 95 percent of the rate of
  pay for level V of the Executive Schedule.
\2\ The rate of basic pay for positions in Salary Class 10 will be equal to 95 percent of the rate of pay for
  level V of the Executive Schedule.
\3\ The rate of basic pay for positions in Salary Class 11 will be equal to the rate of pay for level V of the
  Executive Schedule.


 
----------------------------------------------------------------------------------------------------------------
      ``Salary class and title         Step 8     Step 9    Step 10    Step 11    Step 12    Step 13    Step 14
----------------------------------------------------------------------------------------------------------------
         Time between steps                104 weeks
                                                      208 weeks
----------------------------------------------------------------------------------------------------------------
          Years in service               11         13         15         18         22         26         30
----------------------------------------------------------------------------------------------------------------
1: Private.........................     47,107     48,801     50,498     53,448     55,394     57,036     58,746
3: Detective.......................     52,972     55,086     57,204     61,212     63,337     65,462     67,426
4: Sergeant........................     55,372     57,691     59,999     63,558     65,867     68,176     70,221
5: Lieutenant \1\..................     59,120     61,688     64,258     68,197     70,744     73,290     75,489
7: Captain \1\.....................     65,797     68,757     71,747     76,292     79,309     82,325     84,796
8: Inspector/Major \1\.............     76,542     80,524     83,983     87,645     91,827     95,464     99,075
9: Deputy Chief \1\................     90,578     95,980     99,968    103,957    107,945    111,933    115,291
10: Assistant Chief \2\

[[Page 26870]]

 
11: Chief, United States Secret
 Service Uniformed Division, United
 States Park Police \3\
----------------------------------------------------------------------------------------------------------------
\1\ The rate of basic pay for positions in Salary Class 5, 7, 8, and 9 is limited to 95 percent of the rate of
  pay for level V of the Executive Schedule.
\2\ The rate of basic pay for positions in Salary Class 10 will be equal to 95 percent of the rate of pay for
  level V of the Executive Schedule.
\3\ The rate of basic pay for positions in Salary Class 11 will be equal to the rate of pay for level V of the
  Executive Schedule.

       (b) Freeze of Current Rate for Locality-based Comparability 
     Adjustments.--Notwithstanding any other provision of law, 
     including this title or any provision of law amended by this 
     title, no officer or member of the United States Secret 
     Service Uniformed Division or the United States Park Police 
     may be paid locality pay under section 5304 or section 5304a 
     of title 5, United States Code, at a percentage rate for the 
     applicable locality in excess of the rate in effect for pay 
     periods during calendar year 2000.
       (c) Conforming Amendments.--
       (1) Application of provisions to park police.--Section 
     501(c) of such Act (sec. 4-416(c), DC Code) is amended--
       (A) in paragraph (2), by striking ``Treasury'' and 
     inserting the following: ``Treasury, and the annual rates of 
     basic compensation of officers and members of the United 
     States Park Police shall be adjusted by the Secretary of the 
     Interior,'';
       (B) in paragraph (5), by inserting after ``Uniformed 
     Division'' the following: ``or officers and members of the 
     United States Park Police'';
       (C) in paragraph (6)(A), by inserting after ``Uniformed 
     Division'' the following: ``or the United States Park 
     Police''; and
       (D) in paragraph (7)(A), by inserting after ``Uniformed 
     Division'' the following: ``or the United States Park 
     Police''.
       (2) Termination of current adjustment authority.--Section 
     501(b) of such Act (sec. 4-416(b), DC Code) is amended by 
     adding at the end the following new paragraph:
       ``(4) This subsection shall not apply with respect to any 
     pay period for which the salary schedule under subsection (c) 
     applies to the United States Park Police.''.

     SEC. 903. REVISION OF CAPS ON MAXIMUM COMPENSATION.

       (a) Annual Salary Under Schedule.--Section 501(c)(2) of the 
     District of Columbia Police and Firemen's Salary Act of 1958 
     (sec. 4-416(c)(2), DC Code) is amended by striking the period 
     at the end and inserting the following: ``, except that in no 
     case may the annual rate of basic compensation for any such 
     officer or member exceed the rate of basic pay payable for 
     level IV of the Executive Schedule contained in subchapter II 
     of chapter 53 of title 5, United States Code.''.
       (b) Repeal of Cap on Combined Basic Pay and Longevity 
     Pay.--Section 501(c) of such Act (sec. 4-416(c), DC Code) is 
     amended by striking paragraph (4).
       (c) Limitation on Pay Period Earnings for Comp Time.--
     Section 1(h) of the Act entitled ``An Act to provide a five-
     day week for officers and members of the Metropolitan Police 
     force, the United States Park Police force, and the White 
     House Police force, and for other purposes'', approved August 
     15, 1950 (sec. 4-1104(h), DC Code), is amended--
       (1) in paragraphs (1) and (2), by striking ``Metropolitan 
     Police force; or of the Fire Department of the District of 
     Columbia; or of the United States Park Police'' each place it 
     appears and inserting ``Metropolitan Police force or of the 
     Fire Department of the District of Columbia''; and
       (2) in paragraph (3), by inserting after ``United States 
     Secret Service Uniformed Division'' each place it appears the 
     following: ``or of the United States Park Police''.

     SEC. 904. DETERMINATION OF SERVICE STEP ADJUSTMENTS.

       (a) Method for Determination of Adjustments.--Section 
     303(a) of the District of Columbia Police and Firemen's 
     Salary Act of 1958 (sec. 4-412(a), DC Code) is amended--
       (1) in the matter preceding paragraph (1), by ``Each'' and 
     inserting ``Except as provided in paragraph (5), each''; and
       (2) by adding at the end the following new paragraph:
       ``(5) Each officer and member of the United States Secret 
     Service Uniformed Division and the United States Park Police 
     with a current performance rating of `satisfactory' or 
     better, shall have a service step adjustment in the following 
     manner:
       ``(A) Each officer and member in service step 1, 2, or 3 
     shall be advanced in compensation successively to the next 
     higher service step at the beginning of the 1st pay period 
     immediately subsequent to the completion of 52 calendar weeks 
     of active service in the officer's or member's service step.
       ``(B) Each officer and member in service step 4, 5, 6, 7, 
     8, or 9 shall be advanced in compensation successively to the 
     next higher service step at the beginning of the 1st pay 
     period immediately subsequent to the completion of 104 
     calendar weeks of active service in the officer's or member's 
     service step.
       ``(C) Each officer and member in service step 10 shall be 
     advanced in compensation successively to the next higher 
     service step at the beginning of the 1st pay period 
     immediately subsequent to the completion of 156 calendar 
     weeks of active service in the officer's or member's service 
     step.
       ``(D) Each officer and member in service steps 11 or 12, or 
     13 shall be advanced in compensation successively to the next 
     higher service step at the beginning of the 1st pay period 
     immediately subsequent to the completion of 208 calendar 
     weeks of active service in the officer's or member's service 
     step.''.
       (b) Use of Total Creditable Service To Determine Step 
     Placement.--Section 304 of such Act (sec. 4-413, DC Code) is 
     amended--
       (1) in subsection (a), by striking ``(b)'' and inserting 
     ``(b) or (c)''; and
       (2) by adding at the end the following new subsection:
       ``(c)(1) Each officer and member of the United States 
     Secret Service Uniformed Division or the United States Park 
     Police who is promoted or transferred to a higher salary 
     shall receive basic compensation in accordance with the 
     officer's or member's total creditable service.
       ``(2) For purposes of this subsection, an officer's or 
     member's creditable service is any police service in pay 
     status with the United States Secret Service Uniformed 
     Division, United States Park Police, or Metropolitan Police 
     Department.''.
       (c) Conforming Amendment.--Section 401(a) of such Act (sec. 
     4-415(a), DC Code) is amended by adding at the end the 
     following new paragraph:
       ``(4) This subsection shall not apply to officers and 
     members of the United States Secret Service Uniformed 
     Division or the United States Park Police.''.

     SEC. 905. CONVERSION TO NEW SALARY SCHEDULE.

       (a) In General.--
       (1) Determination of rates of basic pay.--Effective on the 
     1st day of the 1st pay period beginning six months after the 
     date of enactment of this Act, the Secretary of the Treasury 
     shall fix the rates of basic pay for officers and members of 
     the United States Secret Service Uniformed Division, and the 
     Secretary of the Interior shall fix the rates of basic pay 
     for officers and members of the United States Park Police, in 
     accordance with this subsection.
       (2) Placement on revised salary schedule.--
       (A) In general.--Each officer and member shall be placed in 
     and receive basic compensation at the corresponding scheduled 
     service step of the salary schedule under section 501(c) of 
     the District of Columbia Police and Firemen's Salary Act of 
     1958 (as amended by section 902(a)) in accordance with the 
     member's total years of creditable service, receiving credit 
     for all service step adjustments. If the scheduled rate of 
     pay for the step to which the officer or member would be 
     assigned in accordance with this paragraph is lower than the 
     officer's or member's salary immediately prior to the 
     enactment of this paragraph, the officer or member will be 
     placed in and receive compensation at the next higher service 
     step.
       (B) Credit for increases during transition.--Each member 
     whose position is to be converted to the salary schedule 
     under section 501(b) of the District of Columbia Police and 
     Firemen's Salary Act of 1958 (as amended by subsection (a)) 
     and who, prior to the effective date of this section has 
     earned, but has not been credited with, an increase in his or 
     her rate of pay shall be afforded that increase before such 
     member is placed in the corresponding service step in the 
     salary schedule under section 501(b).
       (C) Creditable service described.--For purposes of this 
     paragraph, an officer's or member's creditable service is any 
     police service in pay status with the United States Secret 
     Service Uniformed Division, United States Park Police, or 
     Metropolitan Police Department.
       (b) Hold Harmless for Current Total Compensation.--
     Notwithstanding any other provision of law, if the total rate 
     of compensation for an officer or employee for any pay period 
     occurring after conversion to the salary schedule pursuant to 
     subsection (a) (determined by taking into account any 
     locality-based comparability adjustments, longevity pay, and 
     other adjustments paid in addition to the rate of basic 
     compensation) is less than the officer's or employee's total 
     rate of compensation (as so determined) on the date of 
     enactment, the rate of compensation for the officer or 
     employee for the pay period shall be equal to--
       (1) the rate of compensation on the date of enactment (as 
     so determined); increased by
       (2) a percentage equal to 50 percent of sum of the 
     percentage adjustments made in the rate of basic compensation 
     under section 501(c) of the District of Columbia Police and 
     Firemen's Salary Act of 1958 (as amended by subsection (a)) 
     for pay periods occurring after the date of enactment and 
     prior to the pay period involved.
       (c) Conversion Not Treated as Transfer or Promotion.--The 
     conversion of positions and individuals to appropriate 
     classes of the salary schedule under section 501(c) of the 
     District of Columbia Police and Firemen's Salary Act of 1958 
     (as amended by section 902(a)) and the initial adjustments of 
     rates of basic pay of those

[[Page 26871]]

     positions and individuals in accordance with subsection (a) 
     shall not be considered to be transfers or promotions within 
     the meaning of section 304 of the District of Columbia Police 
     and Firemen's Salary Act of 1958 (sec. 4-413, DC Code).
       (d) Transfer of Credit for Satisfactory Service.--Each 
     individual whose position is converted to the salary schedule 
     under section 501(c) of the District of Columbia Police and 
     Firemen's Salary Act of 1958 (as amended by section 902(a)) 
     in accordance with subsection (a) shall be granted credit for 
     purposes of such individual's first service step adjustment 
     under the salary schedule in such section 501(c) for all 
     satisfactory service performed by the individual since the 
     individual's last increase in basic pay prior to the 
     adjustment under that section.
       (e) Adjustment To Take Into Account General Schedule 
     Adjustments During Transition.--The rates provided under the 
     salary schedule under section 501(c) of the District of 
     Columbia Police and Firemen's Salary Act of 1958 (as amended 
     by section 902(a)) shall be increased by the percentage of 
     any annual adjustment applicable to the General Schedule 
     authorized under section 5303 of title 5, United States Code, 
     which takes effect during the period which begins on the date 
     of the enactment of this Act and ends on the 1st day of the 
     1st pay period beginning six months after the date of 
     enactment of this Act.
       (f) Conversion Not Treated as Salary Increase for Purposes 
     of Certain Pensions and Allowances.--The conversion of 
     positions and individuals to appropriate classes of the 
     salary schedule under section 501(c) of the District of 
     Columbia Police and Firemen's Salary Act of 1958 (as amended 
     by section 2(a)) and the initial adjustments of rates of 
     basic pay of those positions and individuals in accordance 
     with subsection (a) shall not be treated as an increase in 
     salary for purposes of section 3 of the Act entitled ``An Act 
     to provide increased pensions for widows and children of 
     deceased members of the Police Department and the Fire 
     Department of the District of Columbia'', approved August 4, 
     1949 (sec. 4-604, DC Code), or section 301 of the District of 
     Columbia Police and Firemen's Salary Act of 1953 (sec. 4-605, 
     DC Code).

     SEC. 906. PAY ADJUSTMENTS FOR CERTAIN POSITIONS.

       (a) Technician Duty.--Section 302 of the District of 
     Columbia Police and Firemen's Salary Act of 1958 (sec. 4-411, 
     DC Code) is amended--
       (1) in subsection (b), by striking ``$810 per annum'' and 
     inserting the following: ``$810 per annum, except in the case 
     of an officer or member of the United States Secret Service 
     Uniformed Division or the United States Park Police, who 
     shall receive a per annum amount equal to 6 percent of the 
     sum of such officer's or member's rate of basic compensation 
     plus locality pay adjustments'';

     SEC. 907. CONFORMING PROVISIONS RELATING TO FEDERAL LAW 
                   ENFORCEMENT PAY REFORM ACT.

       (a) Termination of Existing Special Salary Rates and 
     Adjustments.--Beginning on the effective date of this Act--
       (1) no existing special salary rates shall be authorized 
     for members of the United States Park Police under section 
     5305 of title 5, United States Code (or any previous similar 
     provision of law); and
       (2) no special rates of pay or special pay adjustments 
     shall be applicable to members of the United States Park 
     Police pursuant to section 405 of the Federal Law Enforcement 
     Pay Reform Act of 1990.
       (b) Conforming Amendments.--(1) Section 405(b) of the 
     Federal Law Enforcement Pay Reform Act of 1990 (5 U.S.C. 5303 
     note) is amended to read as follows:
       ``(b) This subsection applies with respect to any--
       ``(1) special agent within the Diplomatic Security Service;
       ``(2) probation officer (referred to in section 3672 of 
     title 18, United States Code); or
       ``(3) pretrial services officer (referred to in section 
     3153 of title 18, United States Code).''.
       (2) Section 405(c) of such Act (5 U.S.C. 5303 note) is 
     amended to read as follows:
       ``(c) For purposes of this section, the term `appropriate 
     agency head' means--
       ``(1) with respect to any individual under subsection 
     (b)(1), the Secretary of State; or
       ``(2) with respect to any individual under subsection 
     (b)(2) or (b)(3), the Director of the Administrative Office 
     of the United States Courts.''.

     SEC. 908. SERVICE LONGEVITY PAYMENTS FOR METROPOLITAN POLICE 
                   DEPARTMENT.

       (a) Inclusion of Service Longevity Payments in Amount of 
     Federal Benefit Payments Made to Metropolitan Police 
     Department Officers and Members.--Section 11012 of the 
     District of Columbia Retirement Protection Act of 1997 
     (Public Law 105-33; 111 Stat. 718; D.C. Code, sec. 1-762.2) 
     is amended by adding at the end the following new subsection:
       ``(e) Treatment of Increases in Certain Police Service 
     Longevity Payments.--For purposes of subsection (a), in 
     determining the amount of a Federal benefit payment made to 
     an officer or member of the Metropolitan Police Department, 
     the benefit payment to which the officer or member is 
     entitled under the District Retirement Program shall include 
     any amounts which would have been included in the benefit 
     payment under such Program if the amendments made by the 
     Police Recruiting and Retention Enhancement Amendment Act of 
     1999 had taken effect prior to the freeze date.''.
       (b) Conforming Amendment.--Section 11003(5) of such Act 
     (Public Law 105-33; 111 Stat. 717; D.C. Code, sec. 1-
     761.2(5)) is amended by inserting after ``except as'' the 
     following: ``provided under section 11012(e) and as''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to Federal benefit payments made 
     after the date of the enactment of this Act.

     SEC. 909. EFFECTIVE DATE.

       Except as provided in section 908(c), this title and the 
     amendments made by this title shall become effective on the 
     1st day of the 1st pay period beginning 6 months after the 
     date of enactment.

          TITLE X--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                       Administrative Provisions

       Sec. 1001. Section 206(d) of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 2000 (42 U.S.C. 12701 note) is 
     amended--
       (1) in paragraph (1), by striking ``V'' and inserting 
     ``III''; and
       (2) in paragraph (4), by striking ``reimbursable'' and 
     inserting ``non-reimbursable''.
       Sec. 1002. For purposes of Part 2, Subpart B of the Federal 
     Housing Enterprises Financial Safety and Soundness Act of 
     1992 (Public Law 102-550), notwithstanding any other 
     provision of law or regulation, for purposes of measuring the 
     extent of compliance with the housing goals for the years 
     2001, 2002, and 2003, the Secretary of Housing and Urban 
     Development shall assign, in the case of the Federal Home 
     Loan Mortgage Corporation, 1.35 units of credit toward 
     achievement of each housing goal for each unit of multifamily 
     housing (excepting units located in properties having between 
     five and fifty units) qualifying as affordable under such 
     housing goal.
       Sec. 1003. Notwithstanding any other provision of law, 
     neither the City of Toledo, Ohio, nor the Secretary of 
     Housing and Urban Development (HUD) is required to enforce 
     any requirements associated with Housing Development Grant 
     number 00H006H6402 provided to the City of Toledo, Ohio, that 
     prohibit or restrict the conversion of the rental units in 
     the Beacon Place project to condominium ownership: Provided, 
     that the City of Toledo and the Secretary of HUD are 
     authorized to take any actions necessary to cause any such 
     prohibition or restriction to be removed from the appropriate 
     land records and otherwise terminated: Provided further, That 
     converted units shall remain available as rental housing to 
     those persons, including low- and very-low income persons who 
     presently reside in the units: Provided further, That the 
     conversion proposal for Beacon Place apartments shall not 
     reduce the number of affordable housing units in Toledo: 
     Provided further, That any and all proceeds from such 
     conversion are used to retire debt associated with the Beacon 
     Place project or to rehabilitate the properties known as the 
     Cubbon Properties.
       Sec. 1004. The Comptroller General of the United States 
     shall conduct a study on the following topics--
       (a)(1) The adequacy of the capital structure of the Federal 
     Home Loan Bank (FHLB) System as it relates to the risks posed 
     by: (A) the traditional advances business of the FHLB System; 
     (B) the expanded collateral provisions and permissible uses 
     of advances under the Gramm-Leach-Bliley Act of 1999; and (C) 
     the MPF, and other programs providing for the direct 
     acquisition of mortgages. The analysis should examine the 
     credit risk, interest rate risk, and operations risk 
     associated with each structure;
       (2) The risks associated with further growth in the direct 
     acquisition of mortgages by the Federal Home Loan Bank 
     System; and
       (3) A comparison of the risk-based capital standard 
     proposed by the Federal Housing Finance Board for the Federal 
     Home Loan Bank System to the standard proposed by the Office 
     of Federal Housing Enterprise Oversight for the Federal 
     National Mortgage Association and the Federal Home Loan 
     Mortgage Corporation.
       (b) Not later than six months after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to the Committee on Banking, Housing, and Urban Affairs of 
     the Senate and the Committee on Banking and Financial 
     Services of the House of Representatives a report on the 
     study required under subsection (a).

                  TITLE XI--DEPARTMENT OF THE TREASURY

                        Administrative Provision

     SEC. 1102. HONORING THE NAVAJO CODE TALKERS.

       (a) Congress finds that--
       (1) On December 7, 1941, the Japanese Empire attacked Pearl 
     Harbor and war was declared by Congress the following day;
       (2) The military code, developed by the United States for 
     transmitting messages, had been deciphered by the Japanese, 
     and a search by United States Intelligence was made to 
     develop new means to counter the enemy;
       (3) The United States government called upon the Navajo 
     Nation to support the military effort by recruiting and 
     enlisting twenty-nine Navajo men to serve as Marine Corps 
     Radio Operators;
       (4) the number of Navajo enlistees later increased to more 
     than three hundred and fifty;
       (5) at the time, the Navajos were often treated as second-
     class citizens, and they were a people who were discouraged 
     from using their own native language;
       (6) the Navajo Marine Corps Radio Operators, who became 
     known as the ``Navajo Code Talkers'', were used to develop a 
     code using their native language to communicate military 
     messages in the Pacific;

[[Page 26872]]

       (7) to the enemy's frustration, the code developed by these 
     Native Americans proved to be unbreakable, and was used 
     extensively throughout the Pacific theater;
       (8) the Navajo language, discouraged in the past, was 
     instrumental in developing the most significant and 
     successful military code of the time;
       (9) at Iwo Jima alone, the Navajo Code Talkers passed over 
     800 error-free messages in a 48-hour period;
       (10) Use of the Navajo Code was so successful, that--
       (A) military commanders credited it in saving the lives of 
     countless American soldiers and in the success of the 
     engagements of the United States in the battles of 
     Guadalcanal, Tarawa, Saipan, Iwo Jima, and Okinawa;
       (B) some Code Talkers were guarded by fellow marines, whose 
     role was to kill them in case of imminent capture by the 
     enemy; and
       (C) the Navajo code was kept secret for 23 years after the 
     end of World War II;
       (11) following the conclusion of World War II, the 
     Department of Defense maintained the secrecy of the Navajo 
     code until it was declassified in 1968; and
       (12) only then did a realization of the sacrifice and valor 
     of these brave Native Americans emerge from history.
       (b)(1) To express recognition by the United States and its 
     citizens in honoring the Navajo Code Talkers, who 
     distinguished themselves in performing a unique, highly 
     successful communications operation that greatly assisted in 
     saving countless lives and hastening the end of World War II 
     in the Pacific, the President is authorized--
       (A) to award to each of the original twenty-nine Navajo 
     Code Talkers, or a surviving family member, on behalf of the 
     Congress, a gold medal of appropriate design, honoring the 
     Navajo Code Talkers; and
       (B) to award to each person who qualified as a Navajo Code 
     Talker (MOS 642), or a surviving family member, on behalf of 
     the Congress, a silver medal of appropriate design, honoring 
     the Navajo Code Talkers.
       (2) For purposes of the awards authorized by paragraph (l), 
     the Secretary of the Treasury (in this section referrd to as 
     the ``Secretary'') shall strike gold and silver medals with 
     suitable emblems, devices, and inscriptions, to be determined 
     by the Secretary.
       (c) The Secretary may strike and sell duplicates in bronze 
     of the medals struck pursuant to this section, under such 
     regulations as the Secretary may prescribe, and a price 
     sufficient to cover the costs thereof, including labor, 
     materials, dies, use of machinery, and overhead expenses, and 
     the cost of the medals.
       (d) The medals struck pursuant to this section are national 
     medals for purposes of chapter 51, of title 31, United States 
     Code.
       (e)(1) There is authorized to be charged against the United 
     States Mint Public Enterprise Fund, such sums as may be 
     necessary to pay for the costs of the medals authorized by 
     this section.
       (3) Amounts received from the sale of duplicate medals 
     under this section shall be deposited in the United States 
     Mint Public Enterprise Fund.

               TITLE XII--ENVIRONMENTAL PROTECTION AGENCY

                        Administrative Provision

     SEC. 1201. ABOVEGROUND STORAGE TANK GRANT PROGRAM.

       (a) Definitions.--In this provision:
       (1) Aboveground Storage Tank.--The term ``aboveground 
     storage tank'' means any tank or combination of tanks 
     (including any connected pipe)--
       (A) that is used to contain an accumulation of regulated 
     substances; and
       (B) the volume of which (including the volume of any 
     connected pipe) is located wholly above the surface of the 
     ground.
       (2) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (3) Denali Commission.--The term ``Denali Commission'' 
     means the commission established by section 303(a) of the 
     Denali Commission Act of 1998 (42 U.S.C. 3121 note).
       (4) Federal Environmental Law.--The term ``Federal 
     environmental law'' means--
       (A) the Oil Pollution Control Act of 1990 (33 U.S.C. 2701 
     et seq.);
       (B) the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9601 et seq.);
       (C) the Soild Waste Disposal Act (42 U.S.C. 6901 et seq.); 
     or
       (D) the Federal Water Pollution Control Act (33 U.S.C. 1251 
     et seq.); or
       (E) any other Federal law that is applicable to the release 
     into the environment of a regulated substance, as determined 
     by the Administrator.
       (5) Native Village.--The term ``Native village'' has the 
     meaning given the term in section 11(b) in Public Law 92-203 
     (85 Stat. 688).
       (6) Program.--The term ``program'' means the Aboveground 
     Storage Tank Grant Program established by subsection (b)(1).
       (7) Regulated Substance.--The term ``regulated substance'' 
     has the meaning given the term in section 9001 of the Solid 
     Waste Disposal Act (42 U.S.C. 6991).
       (8) State.--The term ``State'' means the State of Alaska.
         (b) Establishment.--
       (1) In General.--There is established a grant program to be 
     known as the ``Aboveground Storage Tank Grant Program''.
       (2) Grants.--Under the program, the Administrator shall 
     award a grant to--
       (A) the State, on behalf of a Native village; or
       (B) the Denali Commission.
         (c) Use of Grants.--The State or the Denali Commission 
     shall use the funds of a grant under subsection (b) to 
     repair, upgrade, or replace 1 or more aboveground storage 
     tanks that--
       (l) leaks or poses an imminent threat of leaking, as 
     certified by the Administrator, the Commandant of the Coast 
     Guard, or any other appropriate Federal or State agency (as 
     determined by the Administrator); and
       (2) is located in a Native village--
       (A) the median household income of which is less than 80 
     percent of the median household income in the State;
       (B) that is located--
       (i) within the boundaries of--

       (I) a unit of the National Park System;
       (II) a unit of the National Wildlife Refuge System; or
       (III) a National Forest; or

       (ii) on public land under the administrative jurisdiction 
     of the Bureau of Land Management; or
       (C) that receives payments from the Federal Government 
     under chapter 69 of title 31, United States Code (commonly 
     known as ``payments in lieu of taxes'').
       (d) Reports.--Not later than 1 year after the date on which 
     the State or the Denali Commission receives a grant under 
     subsection (c), and annually thereafter, the State or the 
     Denali Commission, as the case may be, shall submit a report 
     describing each project completed with grant funds and any 
     projects planned for the following year, to--
       (1) the Administrator;
       (2) the Committee on Resources of the House of 
     Representatives;
       (3) the Committee on Environment and Public Works of the 
     Senate;
       (4) the Committee on Appropriations of the House of 
     Representatives; and
       (5) the Committee on Appropriations of the Senate.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this Act, to remain available 
     until expended--
       (1) $20,000,000 for year 2001; and
       (2) such sums as are necessary for each fiscal year 
     thereafter.

       TITLE XIII--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

                        ADMINISTRATIVE PROVISION

       Sec. 1301. Of the proceeds in any fiscal year from the sale 
     of timber on Federal property at the John C. Stennis Space 
     Center, or on additional real property within the restricted 
     easement area adjacent to the Center, any funds that are in 
     excess of the amount necessary for the expenses of commonly 
     accepted forest management practices on such properties may 
     be retained and used by the National Aeronautics and Space 
     Administration for the acquisition from willing sellers of up 
     to a total of 500 acres of real property to establish 
     education and visitor programs and facilities that promote 
     and preserve the regional and national history of the area, 
     including the contributions of Stennis Space Center, and, as 
     necessary, for wetlands mitigation.

           TITLE XIV--CERTAIN ALASKAN CRUISE SHIP OPERATIONS

     SECTION 1401. PURPOSE.

       The purpose of this Title is to--
       (a) Ensure that cruise vessels operating in the waters of 
     the Alexander Archipelago and the navigable waters of the 
     United States within the State of Alaska and within the 
     Kachemak Bay National Estuarine Research Reserve comply with 
     all applicable environmental laws, including, but not limited 
     to, the Federal Water Pollution Control Act, as amended (33 
     U.S.C. 1251 et seq.), the Act to Prevent Pollution from 
     Ships, as amended (33 U.S.C. 1901 et seq.), and the 
     protections contained within this Title.
       (b) Ensure that cruise vessels do not discharge untreated 
     sewage within the waters of the Alexander Archipelago, the 
     navigable waters of the United States in the State of Alaska, 
     or within the Kachemak Bay National Estuarine Research 
     Reserve.
       (c) Prevent the unregulated discharge of treated sewage and 
     graywater while in ports in the State of Alaska or traveling 
     near the shore in the Alexander Archipelago and the navigable 
     waters of the United States in the State of Alaska or within 
     the Kachemak Bay National Estuarine Research Reserve.
       (d) Ensure that discharges of sewage and graywater from 
     cruise vessels operating in the Alexander Archipelago and the 
     navigable waters of the United States in the State of Alaska 
     or within the Kachemak Bay National Estuarine Research 
     Reserve can be monitored for compliance with the requirements 
     contained in this Title.

     SEC. 1402. APPLICABILITY.

       (a) This Title applies to all cruise vessels authorized to 
     carry 500 or more passengers for hire.

     SEC. 1403. PROHIBITION ON DISCHARGE OF UNTREATED SEWAGE.

       No person shall discharge any untreated sewage from a 
     cruise vessel into the waters of the Alexander Archipelago or 
     the navigable waters of the United States within the State of 
     Alaska or within the Kachemak Bay National Estuarine Research 
     Reserve.

     SEC. 1404. LIMITATIONS ON DISCHARGE OF TREATED SEWAGE OR 
                   GRAYWATER.

       (a) No person shall discharge any treated sewage or 
     graywater from a cruise vessel into the

[[Page 26873]]

     waters of the Alexander Archipelago or the navigable waters 
     of the United States within the State of Alaska or within the 
     Kachemak Bay National Estuarine Research Reserve unless--
       (1) the cruise vessel is underway and proceeding at a speed 
     of not less than six knots;
       (2) the cruise vessel is not less than one nautical mile 
     from the nearest shore, except in areas designated by the 
     Secretary, in consultation with the State of Alaska;
       (3) the discharge complies with all applicable cruise 
     vessel effluent standards established pursuant to this Title 
     and any other applicable law; and
       (4) the cruise vessel is not in an area where the discharge 
     of treated sewage or graywater is prohibited.
       (b) The Administrator, in consultation with the Secretary, 
     may promulgate regulations allowing the discharge of treated 
     sewage or graywater, otherwise prohibited under paragraphs 
     (a)(1) and (a)(2) of this section, where the discharge meets 
     effluent standards determined by the Administrator as 
     appropriate for discharges into the marine environment. In 
     promulgating such regulations, the Administrator shall take 
     into account the best available scientific information on the 
     environmental effects of the regulated discharges. The 
     effluent discharge standards promulgated under this section 
     shall, at a minimum, be consistent with all relevant State of 
     Alaska water quality standards in force at the time of the 
     enactment of this Title.
       (c) Until such time as the Administrator promulgates 
     regulations under paragraph (b) of this section, treated 
     sewage and graywater may be discharged from vessels subject 
     to this Title in circumstances otherwise prohibited under 
     paragraphs (a)(1) and (a)(2) of this section, provided that--
       (1) the discharge satisfies the minimum level of effluent 
     quality specified in 40 CFR 133.102, as in effect on the date 
     of enactment of this Section;
       (2) the geometric mean of the samples from the discharge 
     during any 30-day period does not exceed 20 fecal coliform/
     100 ml and not more than 10 percent of the samples exceed 40 
     fecal coliform/100 ml;
       (3) concentrations of total residual chlorine may not 
     exceed 10.0 mg/l; and,
       (4) prior to any such discharge occurring, the owner, 
     operator or master, or other person in charge of a cruise 
     vessel, can demonstrate test results from at least five 
     samples taken from the vessel representative of the effluent 
     to be discharged, on different days over a 30-day period, 
     conducted in accordance with the guidelines promulgated by 
     the Administrator in 40 CFR Part 136, which confirm that the 
     water quality of the effluents proposed for discharge is in 
     compliance with paragraphs (1), (2) and (3) of this 
     subsection. To the extent not otherwise being done by the 
     owner, operator, master or other person in charge of a cruise 
     vessel pursuant to section 1406, the owner, operator, master 
     or other person in charge of a cruise vessel shall 
     demonstrate continued compliance through periodic sampling. 
     Such sampling and test results shall be considered 
     environmental compliance records that must be made available 
     for inspection pursuant to section 1406(d) of this Title.

     SEC. 1405. SAFETY EXCEPTION.

       Sections 1403 and 1404 of this Title shall not apply to 
     discharges made for the purpose of securing the safety of the 
     cruise vessel or saving life at sea, provided that all 
     reasonable precautions have been taken for the purpose of 
     preventing or minimizing the discharge.

     SEC. 1406. INSPECTION AND SAMPLING REGIME.

       (a) The Secretary shall incorporate into the commercial 
     vessel examination program an inspection regime sufficient to 
     verify that cruise vessels visiting ports in the State of 
     Alaska or operating in the waters of the Alexander 
     Archipelago or the navigable waters of the United States 
     within the State of Alaska or within the Kachemak Bay 
     National Estuarine Research Reserve are in full compliance 
     with this Title, the Federal Water Pollution Control Act, as 
     amended, and any regulations issued thereunder, other 
     applicable Federal laws and regulations, and all applicable 
     international treaty requirements.
       (b) The inspection regime shall, at a minimum, include--
       (1) examination of environmental compliance records and 
     procedures;
       (2) inspection of the functionality and proper operation of 
     installed equipment for abatement and control of any 
     discharge;
       (c) The inspection regime may--
       (1) include unannounced inspections of any aspect of cruise 
     vessel operations, equipment or discharges pertinent to the 
     verification under subsection (a) of this section; and
       (2) require the owner, operator or master, or other person 
     in charge of a cruise vessel subject to this Title to 
     maintain and produce a logbook detailing the times, types, 
     volumes or flow rates and locations of any discharges of 
     sewage or graywater under this Title.
       (d) The inspection regime shall incorporate a plan for 
     sampling and testing cruise vessel discharges to ensure that 
     any discharges of sewage or graywater are in compliance with 
     this Title, the Federal Water Pollution Control Act, as 
     amended, and any other applicable laws and regulations, and 
     may require the owner, operator or master, or other person in 
     charge of a cruise vessel subject to this Title to conduct 
     such samples or tests, and to produce any records of such 
     sampling or testing at the request of the Secretary or 
     Administrator.

     SEC. 1407. CRUISE VESSEL EFFLUENT STANDARDS.

       Pursuant to this Title and the authority of the Federal 
     Water Pollution Control Act, as amended, the Administrator 
     may promulgate effluent standards for treated sewage and 
     graywater from cruise vessels operating in the waters of the 
     Alexander Archipelago or the navigable waters of the United 
     States within the State of Alaska or within the Kachemak Bay 
     National Estuarine Research Reserve. Regulations implementing 
     such standards shall take into account the best available 
     scientific information on the environmental effects of the 
     regulated discharges and the availability of new technologies 
     for wastewater treatment. Until such time as the 
     Administrator promulgates such effluent standards, treated 
     sewage effluent discharges shall not have a fecal coliform 
     bacterial count of greater than 200 per 100 milliliters nor 
     suspended solids greater than 150 milligrams per liter.

     SEC. 1408. REPORTS.

       (a) Any owner, operator or master, or other person in 
     charge of a cruise vessel who has knowledge of a discharge 
     from the cruise vessel in violation of section 1403 or 1404 
     or pursuant to section 1405 of this Title, or any regulations 
     promulgated thereunder, shall immediately report that 
     discharge to the Secretary, who shall provide a copy to the 
     Administrator upon request.
       (b) The Secretary may prescribe the form of reports 
     required under this section.

     SEC. 1409. ENFORCEMENT.

       (a) Administrative Penalties.--
       (1) Violations.--Any person who violates section 1403, 
     1404, 1408, or 1413 of this Title, or any regulations 
     promulgated pursuant to this Title may be assessed a class I 
     or class II civil penalty by the Secretary or the 
     Administrator.
       (2) Classes of penalties.--
       (A) Class i.--The amount of a class I civil penalty under 
     this section may not exceed $10,000 per violation, except 
     that the maximum amount of any class I civil penalty under 
     this section shall not exceed $25,000. Before assessing a 
     civil penalty under this clause, the Secretary or 
     Administrator, as the case may be, shall give to the person 
     to be assessed such penalty written notice of the Secretary's 
     or Administrator's proposal to assess the penalty and the 
     opportunity to request, within 30 days of the date the notice 
     is received by such person, a hearing on the proposed 
     penalty. Such hearing shall not be subject to section 554 or 
     556 of Title 5, but shall provide a reasonable opportunity to 
     be heard and to present evidence.
       (B) Class ii.--The amount of a class II civil penalty under 
     this section may not exceed $10,000 per day for each day 
     during which the violation continues, except that the maximum 
     amount of any class II civil penalty under this section shall 
     not exceed $125,000. Except as otherwise provided in this 
     subsection, a class II civil penalty shall be assessed and 
     collected in the same manner, and subject to the same 
     provisions as in the case of civil penalties assessed and 
     collected after notice and an opportunity for a hearing on 
     the record in accordance with section 554 of Title 5, United 
     States Code. The Secretary and Administrator may issue rules 
     for discovery procedures for hearings under this paragraph.
       (3) Rights of interested persons.--
       (A) Public notice.--Before issuing an order assessing a 
     class II civil penalty under this section, the Secretary or 
     Administrator, as the case may be, shall provide public 
     notice of and reasonable opportunity to comment on the 
     proposed issuance of each order.
       (B) Presentation of evidence.--Any person who comments on a 
     proposed assessment of a class II civil penalty under this 
     section shall be given notice of any hearing held under this 
     paragraph and of the order assessing such penalty. In any 
     hearing held under this paragraph, such person shall have a 
     reasonable opportunity to be heard and present evidence.
       (C) Rights of interested persons to a hearing.--If no 
     hearing is held under subsection (2) before issuance of an 
     order assessing a class II civil penalty under this section, 
     any person who commented on the proposed assessment may 
     petition, within 30 days after the issuance of such order, 
     the Administrator or Secretary, as the case may be, to set 
     aside such order and to provide a hearing on the penalty. If 
     the evidence presented by the petitioner in support of the 
     petition is material and was not considered in the issuance 
     of the order, the Administrator or Secretary shall 
     immediately set aside such order and provide a hearing in 
     accordance with subsection (2)(B). If the Administrator or 
     Secretary denies a hearing under this clause, the 
     Administrator or Secretary shall provide to the petitioner, 
     and publish in the Federal Register, notice of and the 
     reasons for such denial.
       (4) Finality of order.--An order assessing a class II civil 
     penalty under this paragraph shall become final 30 days after 
     its issuance unless a petition for judicial review is filed 
     under subparagraph (6) or a hearing is requested under 
     subsection (3)(C). If such a hearing is denied, such order 
     shall become final 30 days after such denial.
       (5) Effect of action on compliance.--No action by the 
     Administrator or Secretary under this paragraph shall affect 
     any person's obligation to comply with any section of this 
     Title.
       (6) Judicial review.--Any person against whom a civil 
     penalty is assessed under this paragraph or who commented on 
     the proposed assessment of such penalty in accordance with 
     subsection (3) may obtain review of such assessment--
       (A) in the case of assessment of a class I civil penalty, 
     in the United States District Court for

[[Page 26874]]

     the District of Columbia or in the District of Alaska, or
       (B) in the case of assessment of a class II civil penalty, 
     in United States Court of Appeals for the District of 
     Columbia Circuit or for any other circuit in which such 
     person resides or transacts business, by filing a notice of 
     appeal in such court within the 30-day period beginning on 
     the date the civil penalty order is issued and by 
     simultaneously sending a copy of such notice by certified 
     mail to the Administrator or Secretary, as the case may be, 
     and the Attorney General. The Administrator or Secretary 
     shall promptly file in such court a certified copy of the 
     record on which the order was issued. Such court shall not 
     set aside or remand such order unless there is not 
     substantial evidence in the record, taken as a whole, to 
     support the finding of a violation or unless the 
     Administrator's or Secretary's assessment of the penalty 
     constitutes an abuse of discretion and shall not impose 
     additional civil penalties for the same violation unless the 
     Administrator's or Secretary's assessment of the penalty 
     constitutes an abuse of discretion.
       (7) Collection.--If any person fails to pay an assessment 
     of a civil penalty--
       (A) after the assessment has become final, or
       (B) after a court in an action brought under subsection (6) 
     has entered a final judgment in favor of the Administrator or 
     Secretary, as the case may be, the Administrator or Secretary 
     shall request the Attorney General to bring a civil action in 
     an appropriate district court to recover the amount assessed 
     (plus interest at currently prevailing rates from the date of 
     the final order or the date of the final judgment, as the 
     case may be). In such an action, the validity, amount, and 
     appropriateness of such penalty shall not be subject to 
     review. Any person who fails to pay on a timely basis the 
     amount of an assessment of a civil penalty as described in 
     the first sentence of this subparagraph shall be required to 
     pay, in addition to such amount and interest, attorneys fees 
     and costs for collection proceedings and a quarterly 
     nonpayment penalty for each quarter during which such failure 
     to pay persists. Such nonpayment penalty shall be in an 
     amount equal to 20 percent of the aggregate amount of such 
     person's penalties and nonpayment penalties which are unpaid 
     as of the beginning of such quarter.
       (8) Subpoenas.--The Administrator or Secretary, as the case 
     may be, may issue subpoenas for the attendance and testimony 
     of witnesses and the production of relevant papers, books, or 
     documents in connection with hearings under this section. In 
     case of contumacy or refusal to obey a subpoena issued 
     pursuant to this subsection and served upon any person, the 
     district court of the United States for any district in which 
     such person is found, resides, or transacts business, upon 
     application by the United States and after notice to such 
     person, shall have jurisdiction to issue an order requiring 
     such person to appear and give testimony before the 
     Administrator or Secretary or to appear and produce documents 
     before the Administrator or Secretary, or both, and any 
     failure to obey such order of the court may be punished by 
     such court as a contempt thereof.
       (b) Civil Penalties.--
       (1) Generally.--Any person who violates section 1403, 1404, 
     1408 or 1413 of this Title, or any regulations promulgated 
     pursuant to this Title shall be subject to a civil penalty 
     not to exceed $25,000 per day for each violation. Each day a 
     violation continues constitutes a separate violation.
       (2) Jurisdiction.--An action to impose a civil penalty 
     under this section may be brought in the district court of 
     the United States for the district in which the defendant is 
     located, resides, or transacts business, and such court shall 
     have jurisdiction to assess such penalty.
       (3) Limitation.--A person is not liable for a civil 
     judicial penalty under this paragraph for a violation if the 
     person has been assessed a civil administrative penalty under 
     paragraph (a) for the violation.
       (c) Determination of Amount.--In determining the amount of 
     a civil penalty under paragraphs (a) or (b) of this section, 
     the court, the Secretary or the Administrator, as the case 
     may be, shall consider the seriousness of the violation or 
     violations, the economic benefit (if any) resulting from the 
     violation, any history of such violations, any good-faith 
     efforts to comply with the applicable requirements, the 
     economic impact of the penalty on the violator, and other 
     such matters as justice may require.
       (d) Criminal Penalties.--
       (1) Negligent violations.--Any person who negligently 
     violates section 1403, 1404, 1408 or 1413 of this Title, or 
     any regulations promulgated pursuant to this Title commits a 
     Class A misdemeanor.
       (2) Knowing violations.--Any person who knowingly violates 
     section 1403, 1404, 1408 or 1413 of this Title, or any 
     regulations promulgated pursuant to this Title commits a 
     Class D felony.
       (3) False statements.--Any person who knowingly makes any 
     false statement, representation, or certification in any 
     record, report or other document filed or required to be 
     maintained under this Title or the regulations issued 
     thereunder, or who falsifies, tampers with, or knowingly 
     renders inaccurate any testing or monitoring device or method 
     required to be maintained under this Title, or the 
     regulations issued thereunder, commits a Class D felony.
       (e) Awards.--
       (1) The Secretary, the Administrator or the court, when 
     assessing any fines or civil penalties, as the case may be, 
     may pay from any fines or civil penalties collected under 
     this section an amount not to exceed one-half of the penalty 
     or fine collected, to any individual who furnishes 
     information which leads to the payment of the penalty or 
     fine. If several individuals provide such information, the 
     amount shall be divided equitably among such individuals. No 
     officer or employee of the United States, the State of Alaska 
     or any Federally recognized Tribe who furnishes information 
     or renders service in the performance of his or her official 
     duties shall be eligible for payment under this subsection.
       (2) The Secretary, Administrator or the court, when 
     assessing any fines or civil penalties, as the case may be, 
     may pay, from any fines or civil penalties collected under 
     this section, to the State of Alaska or to any Federally 
     recognized Tribe providing information or investigative 
     assistance which leads to payment of the penalty or fine, an 
     amount which reflects the level of information or 
     investigative assistance provided. Should the State of Alaska 
     or a Federally recognized Tribe and an individual under 
     paragraph (1) of this section be eligible for an award, the 
     Secretary, the Administrator or the court, as the case may 
     be, shall divide the amount equitably.
       (f) Liability in Rem.--A cruise vessel operated in 
     violation of this Title or the regulations issued thereunder 
     is liable in rem for any fine imposed under subsection (d) of 
     this section or for any civil penalty imposed under 
     subsections (a) or (b) of this section, and may be proceeded 
     against in the United States district court of any district 
     in which the cruise vessel may be found.
       (g) Compliance Orders.--
       (1) In general.--Whenever on the basis of any information 
     available to him the Administrator finds that any person is 
     in violation of section 1403, 1404, 1408 or 1413 of this 
     Title, or any regulations promulgated pursuant to this Title, 
     the Administrator shall issue an order requiring such person 
     to comply with such section or requirement, or shall bring a 
     civil action in accordance with subsection (b).
       (2) Copies of orders, service.--A copy of any order issued 
     under this subsection shall be sent immediately by the 
     Administrator to the State of Alaska. In any case in which an 
     order under this subsection is issued to a corporation, a 
     copy of such order shall be served on any appropriate 
     corporate officer. Any order issued under this subsection 
     shall be by personal service, shall state with reasonable 
     specificity the nature of the violation, and shall specify a 
     time for compliance not to exceed thirty days in the case of 
     a violation of an interim compliance schedule or operation 
     and maintenance requirement and not to exceed a time the 
     Administrator determines to be reasonable in the case of a 
     violation of a final deadline, taking into account the 
     seriousness of the violation and any good faith efforts to 
     comply with applicable requirements.
       (h) Civil Actions.--The Administrator is authorized to 
     commence a civil action for appropriate relief, including a 
     permanent or temporary injunction, for any violation for 
     which he is authorized to issue a compliance order under this 
     subsection. Any action under subsection (h) may be brought in 
     the district court of the United States for the district in 
     which the defendant is located or resides or is doing 
     business, and such court shall have jurisdiction to restrain 
     such violation and to require compliance. Notice of the 
     commencement of such action shall be given immediately to the 
     State of Alaska.

     SEC. 1410. DESIGNATION OF CRUISE VESSEL NO-DISCHARGE ZONES.

       If the State of Alaska determines that the protection and 
     enhancement of the quality of some or all of the waters of 
     the Alexander Archipelago or the navigable waters of the 
     United States within the State of Alaska or within the 
     Kachemak Bay National Estuarine Research Reserve require 
     greater environmental protection, the State of Alaska may 
     petition the Administrator to prohibit the discharge of 
     graywater and sewage from cruise vessels operating in such 
     waters. The establishment of such a prohibition shall be 
     achieved in the same manner as the petitioning process and 
     prohibition of the discharge of sewage pursuant to Section 
     312(f) of the Federal Water Pollution Control Act, as 
     amended, and the regulations promulgated thereunder.

     SEC. 1411. SAVINGS CLAUSE.

       (a) Nothing in this Title shall be construed as 
     restricting, affecting or amending any other law or the 
     authority of any department, instrumentality or agency of the 
     United States.
       (b) Nothing in this Title shall in any way affect or 
     restrict, or be construed to affect or restrict, the 
     authority of the State of Alaska or any political subdivision 
     thereof--
       (1) to impose additional liability or additional 
     requirements; or
       (2) to impose, or determine the amount of an fine or 
     penalty (whether criminal or civil in nature) for any 
     violation of law; relating to the discharge of sewage 
     (whether treated or untreated) or graywater in the waters of 
     the Alexander Archipelago and the navigable waters of the 
     United States within the State of Alaska or within the 
     Kachemak Bay National Estuarine Research Reserve.

     SEC. 1412. REGULATIONS.

       The Secretary and the Administrator each may prescribe any 
     regulations necessary to carry out the provisions of this 
     Title.

     SEC. 1413. INFORMATION GATHERING AUTHORITY.

       The authority of Sections 308(a) and (b) of the Federal 
     Water Pollution Control Act, as amended, shall be available 
     to the Administrator to

[[Page 26875]]

     carry out the provisions of this Title. The Administrator and 
     the Secretary shall minimize, to the extent practicable, 
     duplication of or inconsistency with the inspection, 
     sampling, testing, record-keeping and reporting requirements 
     established by the Secretary under section 1406 of this 
     Title.

     SEC. 1414. DEFINITIONS.

       In this title:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the United States Environmental Protection 
     Agency.
       (2) Cruise vessel.--The term ``cruise vessel'' means a 
     passenger vessel as defined in section 2101(22) of Title 46, 
     United States Code. The term ``cruise vessel'' does not 
     include a vessel of the United States operated by the Federal 
     Government or a vessel owned and operated by the government 
     of a State.
       (3) Discharge.--The term ``discharge'' means any release 
     however caused from a cruise vessel, and includes any escape, 
     disposal, spilling, leaking, pumping, emitting or emptying.
       (4) Graywater.--The term ``graywater'' means only galley, 
     dishwasher, bath, and laundry waste water. The term does not 
     include other wastes or waste streams.
       (5) Navigable waters.--The term ``navigable waters'' has 
     the same meaning as in section 502 of the Federal Water 
     Pollution Control Act, as amended.
       (6) Person.--The term ``person'' means an individual, 
     corporation, partnership, limited liability company, 
     association, State, municipality, commission or political 
     subdivision of a State, or any Federally recognized Tribe.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of the department in which the United States Coast Guard is 
     operating.
       (8) Sewage.--The term ``sewage'' means human body wastes 
     and the wastes from toilets and other receptacles intended to 
     receive or retain body waste.
       (9) Treated sewage.--The term ``treated sewage'' means 
     sewage meeting all applicable effluent limitation standards 
     and processing requirements of the Federal Water Pollution 
     Control Act, as amended and of this Title, and regulations 
     promulgated under either.
       (10) Untreated sewage.--The term ``untreated sewage'' means 
     sewage that is not treated sewage.
       (11) Waters of the alexander archipelago.--The term 
     ``waters of the Alexander Archipelago'' means all waters 
     under the sovereignty of the United States within or near 
     Southeast Alaska, beginning at a point 58 deg.11'41''N, 
     136 deg.39'25''W [near Cape Spencer Light], thence 
     southeasterly along a line three nautical miles seaward of 
     the baseline from which the breadth of the territorial sea is 
     measured in the Pacific Ocean and the Dixon Entrance, except 
     where this line intersects geodesics connecting the following 
     five pairs of points:
       (1) 58 deg.05'17''N, 136 deg.33'49''W and 58 deg.11'41''N, 
     136 deg.39'25''W [Cross Sound]
       (2) 56 deg.09'40''N, 134 deg.40'00''W and 55 deg.49'15''N, 
     134 deg.17'40''W [Chatham Strait]
       (3) 55 deg.49'15''N, 134 deg.17'40''W and 55 deg.50'30''N, 
     133 deg.54'15''W [Sumner Strait]
       (4) 54 deg.41'30''N, 132 deg.01'00''W and 54 deg.51''30''N, 
     131 deg.20'45''W [Clarence Strait]
       (5) 54 deg.51'30''N, 131 deg.20'45''W and 54 deg.46'15''N, 
     130 deg.52'00''W [Revillagigedo Channel]
       The portion of each such geodesic situated beyond 3 
     nautical miles from the baseline from which the breadth of 
     the territorial sea is measured forms the outer limit of the 
     waters of the Alexander Archipelago in those five locations.

                     TITLE XV--LIFE ACT AMENDMENTS

     SEC. 1501. SHORT TITLE.

       This title may be cited as the ``LIFE Act Amendments of 
     2000''.

     SEC. 1502. SUBSTITUTION OF ALTERNATIVE ADJUSTMENT PROVISION.

       (a) Extended Application of Section 245(i).--
       (1) In general.--Paragraph (1) of section 245(i) of the 
     Immigration and Nationality Act (8 U.S.C. 1255(i)) is 
     amended--
       (A) in subparagraph (A), by striking ``and'' at the end;
       (B) in subparagraph (B)(i), by striking ``January 14, 
     1998'' and inserting ``April 30, 2001'';
       (C) in subparagraph (B), by adding ``and'' at the end; and
       (D) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) who, in the case of a beneficiary of a petition for 
     classification, or an application for labor certification, 
     described in subparagraph (B) that was filed after January 
     14, 1998, is physically present in the United States on the 
     date of the enactment of the LIFE Act Amendments of 2000;''.
       (2) Modification in use of funds.--Paragraph (3)(B) of such 
     section is amended by inserting before the period the 
     following: ``, except that in the case of fees attributable 
     to applications for a beneficiary with respect to whom a 
     petition for classification, or an application for labor 
     certification, described in paragraph (1)(B) was filed after 
     January 14, 1998, one-half of such remaining portion shall be 
     deposited by the Attorney General into the Immigration 
     Examinations Fee Account established under section 286(m)''.
       (b) Conforming Amendments.--
       (1) Subsection (m) of section 245 of the Immigration and 
     Nationality Act, as added by section 1102(c) of the Legal 
     Immigration Family Equity Act, is repealed.
       (2) Section 245 of the Immigration and Nationality Act, as 
     amended by section 1102(d)(2) of the Legal Immigration Family 
     Equity Act, is amended by striking ``or (m)'' each place it 
     appears.

     SEC. 1503. MODIFICATION OF SECTION 1104 ADJUSTMENT 
                   PROVISIONS.

       (a) Inclusion of Additional Class.--Section 1104(b) of the 
     Legal Immigration Family Equity Act is amended--
       (1) in paragraph (1), by striking ``or'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following new paragraph:
       ``(3) Zambrano v. INS, vacated sub nom. Immigration and 
     Naturalization Service v. Zambrano, 509 U.S. 918 (1993).''.
       (b) Conforming Application of Consent Provision.--Section 
     1104(c) of the Legal Immigration Family Equity Act is amended 
     by adding at the end the following new paragraph:
       ``(10) Conforming application of consent provision.--In 
     addition to the waivers provided in subsection (d)(2) of such 
     section 245A of the Immigration and Nationality Act, the 
     Attorney General may grant the alien a waiver of the grounds 
     of inadmissibility under subparagraphs (A) and (C) of section 
     212(a)(9) of such Act (8 U.S.C. 1182(a)(9)). In granting such 
     waivers, the Attorney General shall use standards used in 
     granting consent under subparagraphs (A)(iii) and (C)(ii) of 
     such section.''.
       (c) Inapplicability of Removal Order Reinstatement.--
     Section 1104 of such Act is further amended--
       (1) by redesignating subsection (g) as subsection (h); and
       (2) by inserting after subsection (f) the following new 
     subsection:
       ``(g) Inapplicability of Removal Order Reinstatement.--
     Section 241(a)(5) of the Immigration and Nationality Act 
     shall not apply with respect to an alien who is applying for 
     adjusmtent of status under this section.''.

     SEC. 1504. APPLICATION OF FAMILY UNITY PROVISIONS TO SPOUSES 
                   AND UNMARRIED CHILDREN OF CERTAIN LIFE ACT 
                   BENEFICIARIES.

       (a) Immigration Benefits.--Except as provided in subsection 
     (d), in the case of an eligible spouse or child (as described 
     in subsection (b)), the Attorney General--
       (1) shall not remove the alien on a ground specified in 
     paragraph (1)(A), (1)(B), (1)(C), or (3)(A) of section 237(a) 
     of the Immigration and Nationality Act (8 U.S.C. 1227(a)), 
     other than so much of paragraph (1)(A) of such section as 
     relates to a ground of inadmissibility described in paragraph 
     (2) or (3) of section 212(a) of such Act (8 U.S.C. 1182(a)); 
     and
       (2) shall authorize the alien to engage in employment in 
     the United States during the period of time in which 
     protection is provided under paragraph (1) and shall provide 
     the alien with an ``employment authorized'' endorsement or 
     other appropriate document signifying authorization of 
     employment.
       (b) Eligible Spouses and Children.--For purposes of this 
     section, the term ``eligible spouse or child'' means an alien 
     who is the spouse or unmarried child of an alien described in 
     section 1104(b) of the Legal Immigration Family Equity Act if 
     the spouse or child--
       (1) entered the United States before December 1, 1988; and
       (2) resided in the United States on such date.
       (c) Process for Relief for Eligible Spouses and Children 
     Outside the United States.--If an alien has obtained lawful 
     permanent resident status under section 1104 of the Legal 
     Immigration Family Equity Act and the alien has an eligible 
     spouse or child who is no longer physically present in the 
     United States, the Attorney General shall establish a process 
     under which the eligible spouse or child may be paroled into 
     the United States in order to obtain the benefits of 
     subsection (a) unless the Attorney General finds that the 
     spouse or child would be inadmissible or deportable on any 
     ground, other than a ground for which the alien would not be 
     subject to removal under subsection (a)(1). An alien so 
     paroled shall not be treated as paroled into the United 
     States for purposes of section 201(c)(4) of the Immigration 
     and Nationality Act (8 U.S.C. 1151(c)(4)).
       (d) Exception.--An alien is not eligible for the benefits 
     of this section if the Attorney General finds that--
       (1) the alien has been convicted of a felony or three or 
     more misdemeanors in the United States; or
       (2) the alien is described in section 241(b)(3)(B) of the 
     Immigration and Nationality Act (8 U.S.C. 1231(b)(3)(B)).
       (e) Application of Definitions.--Except as otherwise 
     specifically provided in this section, the definitions 
     contained in the Immigration and Nationality Act shall apply 
     in the administration of this section.

     SEC. 1505. MISCELLANEOUS AMENDMENTS TO VARIOUS ADJUSTMENT AND 
                   RELIEF ACTS.

       (a) Nicaraguan Adjustment and Central American Relief 
     Act.--
       (1) In general.--Section 202(a) of the Nicaraguan 
     Adjustment and Central American Relief Act is amended--
       (A) by redesignating paragraph (2) as paragraph (3); and
       (B) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Rules in applying certain provisions.--In the case of 
     an alien described in subsection (b) or (d) who is applying 
     for adjustment of status under this section--
       ``(A) the provisions of section 241(a)(5) of the 
     Immigration and Nationality Act shall not apply; and
       ``(B) the Attorney General may grant the alien a waiver of 
     the grounds of inadmissibility

[[Page 26876]]

     under subparagraphs (A) and (C) of section 212(a)(9) of such 
     Act.
     In granting waivers under subparagraph (B), the Attorney 
     General shall use standards used in granting consent under 
     subparagraphs (A)(iii) and (C)(ii) of such section 
     212(a)(9).''.
       (2) Permitting motion to reopen.--Notwithstanding any time 
     and number limitations imposed by law on motions to reopen 
     exclusion, removal, or deportation proceedings (except 
     limitations premised on an alien's conviction of an 
     aggravated felony (as defined by section 101(a) of the 
     Immigration and Nationality Act)), a national of Cuba or 
     Nicaragua who has become eligible for adjustment of status 
     under the Nicaraguan Adjustment and Central American Relief 
     Act as a result of the amendments made by paragraph (1), may 
     file one motion to reopen exclusion, deportation, or removal 
     proceedings to apply for such adjustment under that Act. The 
     scope of any proceeding reopened on this basis shall be 
     limited to a determination of the alien's eligibility for 
     adjustment of status under that Act. All such motions shall 
     be filed within 180 days of the date of the enactment of this 
     Act.
       (b) Haitian Refugee Immigration Fairness Act of 1998.--
       (1) Inapplicability of certain provisions.--Section 902(a) 
     of the Haitian Refugee Immigration Fairness Act of 1998 is 
     amended--
       (A) by redesignating paragraph (2) as paragraph (3); and
       (B) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Inapplicability of certain provisions.--In the case 
     of an alien described in subsection (b) or (d) who is 
     applying for adjustment of status under this section--
       ``(A) the provisions of section 241(a)(5) of the 
     Immigration and Nationality Act shall not apply; and
       ``(B) the Attorney General may grant the alien a waiver of 
     the grounds of inadmissibility under subparagraphs (A) and 
     (C) of section 212(a)(9) of such Act.
     In granting waivers under subparagraph (B), the Attorney 
     General shall use standards used in granting consent under 
     subparagraphs (A)(iii) and (C)(ii) of such section 
     212(a)(9).''.
       (2) Permitting motion to reopen.--Notwithstanding any time 
     and number limitations imposed by law on motions to reopen 
     exclusion, removal, or deportation proceedings (except 
     limitations premised on an alien's conviction of an 
     aggravated felony (as defined by section 101(a) of the 
     Immigration and Nationality Act)), a national of Haiti who 
     has become eligible for adjustment of status under the 
     Haitian Refugee Immigration Fairness Act of 1998 as a result 
     of the amendments made by paragraph (1), may file one motion 
     to reopen exclusion, deportation, or removal proceedings to 
     apply for such adjustment under that Act. The scope of any 
     proceeding reopened on this basis shall be limited to a 
     determination of the alien's eligibility for adjustment of 
     status under that Act. All such motions shall be filed within 
     180 days of the date of the enactment of this Act.
       (c) Section 309 of IIRIRA.--Section 309 of the Illegal 
     Immigration Reform and Immigrant Responsibility Act of 1996 
     is amended by adding at the end the following new subsection:
       ``(h) Relief and Motions to Reopen.--
       ``(1) Relief.--An alien described in subsection 
     (c)(5)(C)(i) who is otherwise eligible for--
       ``(A) suspension of deportation pursuant to section 244(a) 
     of the Immigration and Nationality Act, as in effect before 
     the title III-A effective date; or
       ``(B) cancellation of removal, pursuant to section 240A(b) 
     of the Immigration and Nationality Act and subsection (f) of 
     this section;
     shall not be barred from applying for such relief by 
     operation of section 241(a)(5) of the Immigration and 
     National Act, as in effect after the title III-A effective 
     date.
       ``(2) Additional motion to reopen permitted.--
     Notwithstanding any limitation imposed by law on motions to 
     reopen removal or deportation proceedings (except limitations 
     premised on an alien's conviction of an aggravated felony (as 
     defined by section 101(a) of the Immigration and Nationality 
     Act)), any alien who is described in subsection (c)(5)(C)(i) 
     and who has become eligible for cancellation of removal or 
     suspension of deportation as a result of the enactment of 
     paragraph (1) may file one motion to reopen removal or 
     deportation proceedings in order to apply for cancellation of 
     removal or suspension of deportation. The scope of any 
     proceeding reopened on this basis shall be limited to a 
     determination of the alien's eligibility for cancellation of 
     removal or suspension of deportation. The Attorney General 
     shall designate a specific time period in which all such 
     motions to reopen are required to be filed. The period shall 
     begin not later than 60 days after the date of the enactment 
     of this subsection and shall extend for a period not to 
     exceed 240 days.
       ``(3) Construction.--Nothing in this subsection shall 
     preclude an alien from filing a motion to reopen pursuant to 
     section 240(b)(5)(C)(ii) of the Immigration and Nationality 
     Act, or section 242B(c)(3)(B) of such Act (as in effect 
     before the title III-A effective date).''.

     SEC. 1506. EFFECTIVE DATE.

       This title shall take effect as if included in the 
     enactment of the Legal Immigration Family Equity Act.

     TITLE XVI--IMPROVING LITERACY THROUGH FAMILY LITERACY PROJECTS

     SEC. 1601. SHORT TITLE.

       This title may be cited as the ``Literacy Involves Families 
     Together Act''.

     SEC. 1602. AUTHORIZATION OF APPROPRIATIONS.

       Section 1002(b) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6302(b)) is amended by striking 
     ``$118,000,000 for fiscal year 1995'' and inserting 
     ``$250,000,000 for fiscal year 2001''.

     SEC. 1603. IMPROVING BASIC PROGRAMS OPERATED BY LOCAL 
                   EDUCATIONAL AGENCIES.

       Section 1111(c) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6311(c)) is amended--
       (1) in paragraph (5), by striking ``and'' at the end;
       (2) in paragraph (6), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(7) the State educational agency will encourage local 
     educational agencies and individual schools participating in 
     a program assisted under this part to offer family literacy 
     services (using funds under this part), if the agency or 
     school determines that a substantial number of students 
     served under this part by the agency or school have parents 
     who do not have a high school diploma or its recognized 
     equivalent or who have low levels of literacy.''.

     SEC. 1604. EVEN START FAMILY LITERACY PROGRAMS.

       (a) Part Heading.--The part heading for part B of title I 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 6361 et seq.) is amended to read as follows:

  ``PART B--WILLIAM F. GOODLING EVEN START FAMILY LITERACY PROGRAMS''.

       (b) Statement of Purpose.--Section 1201 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6361) is 
     amended--
       (1) in paragraph (1), by inserting ``high quality'' after 
     ``build on''; and
       (2) by amending paragraph (2) to read as follows:
       ``(2) promote the academic achievement of children and 
     adults;'';
       (3) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (4) by adding at the end the following:
       ``(4) use instructional programs based on scientifically 
     based reading research (as defined in section 2252) and the 
     prevention of reading difficulties for children and adults, 
     to the extent such research is available.''.
       (c) Program Authorized.--
       (1) Reservation for migrant programs, outlying areas, and 
     indian tribes.--Section 1202(a) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6362(a)) is 
     amended--
       (A) in paragraph (1), in the matter preceding subparagraph 
     (A), by inserting ``(or, if such appropriated amount exceeds 
     $200,000,000, 6 percent of such amount)'' after ``1002(b)'';
       (B) in paragraph (2), by striking ``If the amount of funds 
     made available under this subsection exceeds $4,600,000,'' 
     and inserting ``After the date of the enactment of the 
     Literacy Involves Families Together Act,''; and
       (C) by adding at the end the following:
       ``(3) Coordination of programs for american indians.--The 
     Secretary shall ensure that programs under paragraph (1)(C) 
     are coordinated with family literacy programs operated by the 
     Bureau of Indian Affairs in order to avoid duplication and to 
     encourage the dissemination of information on high quality 
     family literacy programs serving American Indians.''.
       (2) Reservation for federal activities.--Section 1202(b) of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6362(b)) is amended to read as follows:
       ``(b) Reservation for Federal Activities.--
       ``(1) Evaluation, technical assistance, program 
     improvement, and replication activities.--From amounts 
     appropriated under section 1002(b), the Secretary may reserve 
     not more than 3 percent of such amounts for purposes of--
       ``(A) carrying out the evaluation required by section 1209; 
     and
       ``(B) providing, through grants or contracts with eligible 
     organizations, technical assistance, program improvement, and 
     replication activities.
       ``(2) Research.--In the case of fiscal years 2001 through 
     2004, if the amount appropriated under section 1002(b) for 
     any of such years--
       ``(A) is equal to or less than the amounts appropriated for 
     the preceding fiscal year, the Secretary may reserve from 
     such amount only the amount necessary to continue multi-year 
     activities carried out pursuant to section 1211(b) that began 
     during or prior to the preceding fiscal year; or
       ``(B) exceeds the amount appropriated for the preceding 
     fiscal year, the Secretary shall reserve from such excess 
     amount $2,000,000 or 50 percent, whichever is less, to carry 
     out section 1211(b).''.
       (d) Reservation for Grants.--Section 1202(c)(1) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6362(c)(1)) is amended--
       (1) by striking ``From funds reserved under section 
     2260(b)(3), the Secretary shall award grants,'' and inserting 
     ``For any fiscal year for which at least one State applies 
     and submits an application that meets the requirements and 
     goals of this subsection and for which the amount 
     appropriated under section 1002(b) exceeds the amount 
     appropriated under such section for the preceding fiscal 
     year, the Secretary shall reserve, from the amount of such 
     excess remaining after the application of subsection (b)(2), 
     the amount of such remainder or $1,000,000, whichever is 
     less, to award grants,''; and
       (2) by adding at the end ``No State may receive more than 
     one grant under this subsection.''.

[[Page 26877]]

       (e) Allocations.--Section 1202(d)(2) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6362(d)(2)) is 
     amended by striking ``that section'' and inserting ``that 
     part''.
       (f) State Level Activities.--Section 1203(a) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6363(a)) is amended--
       (1) by striking ``5 percent'' and inserting ``a total of 6 
     percent''; and
       (2) in paragraph (1), by inserting before the semicolon the 
     following: ``, not to exceed half of such total''.
       (g) Subgrants for Local Programs.--Section 1203(b)(2) of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6363(b)(2)) is amended to read as follows:
       ``(2) Minimum subgrant amounts.--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C), no State shall award a subgrant under paragraph (1) 
     in an amount less than $75,000.
       ``(B) Subgrantees in ninth and succeeding years.--No State 
     shall award a subgrant under paragraph (1) in an amount less 
     than $52,500 to an eligible entity for a fiscal year to carry 
     out an Even Start program that is receiving assistance under 
     this part or its predecessor authority for the ninth (or any 
     subsequent) fiscal year.
       ``(C) Exception for single subgrant.--A State may award one 
     subgrant in each fiscal year of sufficient size, scope, and 
     quality to be effective in an amount less than $75,000 if, 
     after awarding subgrants under paragraph (1) for such fiscal 
     year in accordance with subparagraphs (A) and (B), less than 
     $75,000 is available to the State to award such subgrants.''.
       (h) Uses of Funds.--Section 1204 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6364) is amended--
       (1) in subsection (a), by striking ``family-centered 
     education programs'' and inserting ``family literacy 
     services''; and
       (2) by adding at the end the following:
       ``(c) Use of Funds for Family Literacy Services.--
       ``(1) In general.--From funds reserved under 1203(a), a 
     State may use a portion of such funds to assist eligible 
     entities receiving a subgrant under section 1203(b) in 
     improving the quality of family literacy services provided 
     under Even Start programs under this part, except that in no 
     case may a State's use of funds for this purpose for a fiscal 
     year result in a decrease from the level of activities and 
     services provided to program participants in the preceding 
     year.
       ``(2) Priority.--In carrying out paragraph (1), a State 
     shall give priority to programs that were of low quality, as 
     evaluated based on the indicators of program quality 
     developed by the State under section 1210.
       ``(3) Technical assistance to help local programs raise 
     additional funds.--In carrying out paragraph (1), a State may 
     use the funds referred to in such paragraph to provide 
     technical assistance to help local programs of demonstrated 
     effectiveness to access and leverage additional funds for the 
     purpose of expanding services and reducing waiting lists, 
     including requesting and applying for non-Federal resources.
       ``(4) Technical assistance and training.--Assistance under 
     paragraph (1) shall be in the form of technical assistance 
     and training, provided by a State through a grant, contract, 
     or cooperative agreement with an entity that has experience 
     in offering high quality training and technical assistance to 
     family literacy providers.''.
       (i) Program Elements.--Section 1205 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6365) is amended--
       (1) by redesignating paragraphs (9) and (10) as paragraphs 
     (14) and (15), respectively;
       (2) by redesignating paragraphs (5) through (8) as 
     paragraphs (6) through (9), respectively;
       (3) by inserting after paragraph (4) the following:
       ``(5) with respect to the qualifications of staff the cost 
     of whose salaries are paid, in whole or in part, with Federal 
     funds provided under this part, ensure that--
       ``(A) not later than 4 years after the date of the 
     enactment of the Literacy Involves Families Together Act--
       ``(i) a majority of the individuals providing academic 
     instruction--

       ``(I) shall have obtained an associate's, bachelor's, or 
     graduate degree in a field related to early childhood 
     education, elementary or secondary school education, or adult 
     education; and
       ``(II) if applicable, shall meet qualifications established 
     by the State for early childhood education, elementary or 
     secondary school education, or adult education provided as 
     part of an Even Start program or another family literacy 
     program;

       ``(ii) the individual responsible for administration of 
     family literacy services under this part has received 
     training in the operation of a family literacy program; and
       ``(iii) paraprofessionals who provide support for academic 
     instruction have a high school diploma or its recognized 
     equivalent; and
       ``(B) beginning on the date of the enactment of the 
     Literacy Involves Families Together Act, all new personnel 
     hired to provide academic instruction--
       ``(i) have obtained an associate's, bachelor's, or graduate 
     degree in a field related to early childhood education, 
     elementary or secondary school education, or adult education; 
     and
       ``(ii) if applicable, meet qualifications established by 
     the State for early childhood education, elementary or 
     secondary school education, or adult education provided as 
     part of an Even Start program or another family literacy 
     program;'';
       (4) in paragraph (8) (as so redesignated by paragraph (2), 
     by striking ``or enrichment'' and inserting ``and 
     enrichment''.
       (5) by inserting after paragraph (9) (as so redesignated by 
     paragraph (2)) the following:
       ``(10) use instructional programs based on scientifically 
     based reading research (as defined in section 2252) for 
     children and adults, to the extent such research is 
     available;
       ``(11) encourage participating families to attend regularly 
     and to remain in the program a sufficient time to meet their 
     program goals;
       ``(12) include reading readiness activities for preschool 
     children based on scientifically based reading research (as 
     defined in section 2252), to the extent available, to ensure 
     children enter school ready to learn to read;
       ``(13) if applicable, promote the continuity of family 
     literacy to ensure that individuals retain and improve their 
     educational outcomes''; and
       (5) in paragraph (14) (as so redesignated), by striking 
     ``program.'' and inserting ``program to be used for program 
     improvement.''.
       (j) Eligible Participants.--Section 1206 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6366) is 
     amended--
       (1) in subsection (a)(1)(B) by striking ``part;'' and 
     inserting ``part, or who are attending secondary school;''; 
     and
       (2) in subsection (b), by adding at the end the following:
       ``(3) Children 8 years of age or older.--If an Even Start 
     program assisted under this part collaborates with a program 
     under part A, and funds received under such part A program 
     contribute to paying the cost of providing programs under 
     this part to children 8 years of age or older, the Even Start 
     program, notwithstanding subsection (a)(2), may permit the 
     participation of children 8 years of age or older if the 
     focus of the program continues to remain on families with 
     young children.''.
       (k) Plan.--Section 1207(c) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6367(c)) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``and continuous improvement'' after ``plan of operation'';
       (B) in subparagraph (A), by striking ``goals;'' and 
     inserting ``objectives, strategies to meet such objectives, 
     and how they are consistent with the program indicators 
     established by the State;'';
       (C) in subparagraph (E), by striking ``and'' at the end;
       (D) in subparagraph (F)--
       (i) by striking ``Act, the Goals 2000: Educate America 
     Act,'' and inserting ``Act''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (E) by adding at the end the following:
       ``(G) a description of how the plan provides for rigorous 
     and objective evaluation of progress toward the program 
     objectives described in subparagraph (A) and for continuing 
     use of evaluation data for program improvement.''; and
       (2) in paragraph (2), in the matter preceding subparagraph 
     (A), by striking ``(1)(A)'' and inserting ``(1)''.
       (l) Award of Subgrants.--Section 1208 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6368) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)(B)--
       (i) by striking ``including a high'' and inserting ``such 
     as a high''; and
       (ii) by striking ``part A;'' and inserting ``part A, a high 
     number or percentage of parents who have been victims of 
     domestic violence, or a high number or percentage of parents 
     who are receiving assistance under a State program funded 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.);'';
       (B) in paragraph (1)(F), by striking ``Federal'' and 
     inserting ``non-Federal'';
       (C) in paragraph (1)(H), by inserting ``family literacy 
     projects and other'' before ``local educational agencies''; 
     and
       (D) in paragraph (3), in the matter preceding subparagraph 
     (A), by striking ``one or more of the following 
     individuals:'' and inserting ``one individual with expertise 
     in family literacy programs, and may include other 
     individuals, such as one or more of the following:''; and
       (2) in subsection (b)--
       (A) by striking paragraph (3) and inserting the following:
       ``(3) Continuing eligibility.--In awarding subgrant funds 
     to continue a program under this part after the first year, 
     the State educational agency shall review the progress of 
     each eligible entity in meeting the objectives of the program 
     referred to in section 1207(c)(1)(A) and shall evaluate the 
     program based on the indicators of program quality developed 
     by the State under section 1210.''; and
       (B) by amending paragraph (5)(B) to read as follows:
       ``(B) The Federal share of any subgrant renewed under 
     subparagraph (A) shall be limited in accordance with section 
     1204(b).''.
       (m) Research.--Section 1211 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6369b) is amended--
       (1) in subsection (b), by striking ``subsection (a)'' and 
     inserting ``subsections (a) and (b)'';
       (2) by redesignating subsection (b) as subsection (c); and
       (3) by inserting after subsection (a) the following:
       ``(b) Scientifically Based Research on Family Literacy.--
       ``(1) In general.--From amounts reserved under section 
     1202(b)(2), the National Institute for Literacy, in 
     consultation with the Secretary, shall carry out research 
     that--

[[Page 26878]]

       ``(A) is scientifically based reading research (as defined 
     in section 2252); and
       ``(B) determines--
       ``(i) the most effective ways of improving the literacy 
     skills of adults with reading difficulties; and
       ``(ii) how family literacy services can best provide 
     parents with the knowledge and skills they need to support 
     their children's literacy development.
       ``(2) Use of expert entity.--The National Institute for 
     Literacy, in consultation with the Secretary, shall carry out 
     the research under paragraph (1) through an entity, including 
     a Federal agency, that has expertise in carrying out 
     longitudinal studies of the development of literacy skills in 
     children and has developed effective interventions to help 
     children with reading difficulties.''.
       (n) Indicators of Program Quality.--Not later than 30 days 
     after the date of the enactment of this Act, the Secretary 
     shall notify each State that receives funds under part B of 
     title I of the Elementary and Secondary Education Act of 1965 
     that to be eligible to receive fiscal year 2001 funds under 
     part B, such State shall submit to the Secretary, not later 
     than June 30, 2001, its indicators of program quality as 
     described in section 1210 of the Elementary and Secondary 
     Education Act of 1965. A State that fails to comply with this 
     subsection shall be ineligible to receive funds under such 
     part in subsequent years unless such State submits to the 
     Secretary, not later than June 30 of the year in which funds 
     are requested, its indicators of program quality as described 
     in section 1210 of the Elementary and Secondary Education Act 
     of 1965.

     SEC. 1605. EDUCATION OF MIGRATORY CHILDREN.

       Section 1304(b) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6394(b)) is amended--
       (1) in paragraph (5), by striking ``and'' at the end;
       (2) in paragraph (6), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(7) a description of how the State will encourage 
     programs and projects assisted under this part to offer 
     family literacy services if the program or project serves a 
     substantial number of migratory children who have parents who 
     do not have a high school diploma or its recognized 
     equivalent or who have low levels of literacy.''.

     SEC. 1606. DEFINITIONS.

       (a) In General.--Section 14101 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8801) is amended--
       (1) by redesignating paragraphs (15) through (29) as 
     paragraphs (16) through (30), respectively; and
       (2) by inserting after paragraph (14) the following:
       ``(15) Family literacy services.--The term `family literacy 
     services' means services provided to participants on a 
     voluntary basis that are of sufficient intensity in terms of 
     hours, and of sufficient duration, to make sustainable 
     changes in a family, and that integrate all of the following 
     activities:
       ``(A) Interactive literacy activities between parents and 
     their children.
       ``(B) Training for parents regarding how to be the primary 
     teacher for their children and full partners in the education 
     of their children.
       ``(C) Parent literacy training that leads to economic self-
     sufficiency.
       ``(D) An age-appropriate education to prepare children for 
     success in school and life experiences.''.
       (b) Conforming Amendments.--
       (1) Even start family literacy programs.--Section 1202(e) 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 6362(e)) is amended--
       (A) by striking paragraph (3); and
       (B) by redesignating paragraphs (4) and (5) as paragraphs 
     (3) and (4), respectively.
       (2) Reading and literacy grants.--(A) Section 2252 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6661a) is amended--
       (i) by striking paragraph (2); and
       (ii) by redesignating paragraphs (3) through (5) as 
     paragraphs (2) through (4), respectively.
       (B) Section 2260 of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6661i) is amendmed--
       (i) in subsection (a), by striking ``and section 1202(c)'' 
     each place it appears, and
     (ii) in subsection (b)--
       (I) in paragraph (1), by inserting ``and'' after the 
     semicolon;
       (II) in paragraph (2), by striking ``; and '' and inserting 
     a period; and
       (III) by striking paragraph (3).

     SEC. 1607. INDIAN EDUCATION.

       (a) Early Childhood Development Program.--Section 1143 of 
     the Education Amendments of 1978 (25 U.S.C. 2023) is 
     amended--
       (1) in subsection (b)(1), in the matter preceding 
     subparagraph (A)--
       (A) by striking ``(f)'' and inserting ``(g)''; and
       (B) by striking ``(e))'' and inserting ``(f))'';
       (2) in subsection (d)(1)--
       (A) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (E) and (F), respectively; and
       (B) by inserting after subparagraph (C) the following:
       ``(D) family literacy services,'';
       (3) in subsection (e), by striking ``(f),'' and inserting 
     ``(g),'';
       (4) by redesignating subsections (e) and (f) as subsections 
     (f) and (g), respectively; and
       (5) by inserting after subsection (d) the following:
       ``(e) Family literacy programs operated under this section, 
     and other family literacy programs operated by the Bureau of 
     Indian Affairs, shall be coordinated with family literacy 
     programs for American Indian children under part B of title I 
     of the Elementary and Secondary Education Act of 1965 in 
     order to avoid duplication and to encourage the dissemination 
     of information on quality family literacy programs serving 
     American Indians.''.
       (b) Definitions.--Section 1146 of the Education Amendments 
     of 1978 (25 U.S.C. 2026) is amended--
       (1) by redesignating paragraphs (7) through (14) as 
     paragraphs (8) through (15), respectively; and
       (2) by inserting after paragraph (6) the following:
       ``(7) the term `family literacy services' has the meaning 
     given such term in section 14101 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8801);''.

               TITLE XVII--CHILDREN'S INTERNET PROTECTION

     SEC. 1701. SHORT TITLE.

       This title may be cited as the ``Children's Internet 
     Protection Act''.

     SEC. 1702. DISCLAIMERS.

       (a) Disclaimer Regarding Content.--Nothing in this title or 
     the amendments made by this title shall be construed to 
     prohibit a local educational agency, elementary or secondary 
     school, or library from blocking access on the Internet on 
     computers owned or operated by that agency, school, or 
     library to any content other than content covered by this 
     title or the amendments made by this title.
       (b) Disclaimer Regarding Privacy.--Nothing in this title or 
     the amendments made by this title shall be construed to 
     require the tracking of Internet use by any identifiable 
     minor or adult user.

     SEC. 1703. STUDY OF TECHNOLOGY PROTECTION MEASURES.

       (a) In General.--Not later than 18 months after the date of 
     the enactment of this Act, the National Telecommunications 
     and Information Administration shall initiate a notice and 
     comment proceeding for purposes of--
       (1) evaluating whether or not currently available 
     technology protection measures, including commercial Internet 
     blocking and filtering software, adequately addresses the 
     needs of educational institutions;
       (2) making recommendations on how to foster the development 
     of measures that meet such needs; and
       (3) evaluating the development and effectiveness of local 
     Internet safety policies that are currently in operation 
     after community input.
       (b) Definitions.--In this section:
       (1) Technology protection measure.--The term ``technology 
     protection measure'' means a specific technology that blocks 
     or filters Internet access to visual depictions that are--
       (A) obscene, as that term is defined in section 1460 of 
     title 18, United States Code;
       (B) child pornography, as that term is defined in section 
     2256 of title 18, United States Code; or
       (C) harmful to minors.
       (2) Harmful to minors.--The term ``harmful to minors'' 
     means any picture, image, graphic image file, or other visual 
     depiction that--
       (A) taken as a whole and with respect to minors, appeals to 
     a prurient interest in nudity, sex, or excretion;
       (B) depicts, describes, or represents, in a patently 
     offensive way with respect to what is suitable for minors, an 
     actual or simulated sexual act or sexual contact, actual or 
     simulated normal or perverted sexual acts, or a lewd 
     exhibition of the genitals; and
       (C) taken as a whole, lacks serious literary, artistic, 
     political, or scientific value as to minors.
       (3) Sexual act; sexual contact.--The terms ``sexual act'' 
     and ``sexual contact'' have the meanings given such terms in 
     section 2246 of title 18, United States Code.

   Subtitle A--Federal Funding for Educational Institution Computers

     SEC. 1711. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR 
                   SCHOOLS.

       Title III of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6801 et seq.) is amended by adding at the end 
     the following:

   ``PART F--LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR SCHOOLS

     ``SEC. 3601. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR 
                   SCHOOLS.

       ``(a) Internet Safety.--
       ``(1) In general.--No funds made available under this title 
     to a local educational agency for an elementary or secondary 
     school that does not receive services at discount rates under 
     section 254(h)(5) of the Communications Act of 1934, as added 
     by section 1721 of Children's Internet Protection Act, may be 
     used to purchase computers used to access the Internet, or to 
     pay for direct costs associated with accessing the Internet, 
     for such school unless the school, school board, local 
     educational agency, or other authority with responsibility 
     for administration of such school both--
       ``(A)(i) has in place a policy of Internet safety for 
     minors that includes the operation of a technology protection 
     measure with respect to any of its computers with Internet 
     access that protects against access through such computers to 
     visual depictions that are--
       ``(I) obscene;
       ``(II) child pornography; or
       ``(III) harmful to minors; and
       ``(ii) is enforcing the operation of such technology 
     protection measure during any use of such computers by 
     minors; and

[[Page 26879]]

       ``(B)(i) has in place a policy of Internet safety that 
     includes the operation of a technology protection measure 
     with respect to any of its computers with Internet access 
     that protects against access through such computers to visual 
     depictions that are--
       ``(I) obscene; or
       ``(II) child pornography; and
       ``(ii) is enforcing the operation of such technology 
     protection measure during any use of such computers.
       ``(2) Timing and applicability of implementation.--
       ``(A) In general.--The local educational agency with 
     responsibility for a school covered by paragraph (1) shall 
     certify the compliance of such school with the requirements 
     of paragraph (1) as part of the application process for the 
     next program funding year under this Act following the 
     effective date of this section, and for each subsequent 
     program funding year thereafter.
       ``(B) Process.--
       ``(i) Schools with internet safety policies and technology 
     protection measures in place.--A local educational agency 
     with responsibility for a school covered by paragraph (1) 
     that has in place an Internet safety policy meeting the 
     requirements of paragraph (1) shall certify its compliance 
     with paragraph (1) during each annual program application 
     cycle under this Act.
       ``(ii) Schools without internet safety policies and 
     technology protection measures in place.--A local educational 
     agency with responsibility for a school covered by paragraph 
     (1) that does not have in place an Internet safety policy 
     meeting the requirements of paragraph (1)--

       ``(I) for the first program year after the effective date 
     of this section in which the local educational agency is 
     applying for funds for such school under this Act, shall 
     certify that it is undertaking such actions, including any 
     necessary procurement procedures, to put in place an Internet 
     safety policy that meets such requirements; and
       ``(II) for the second program year after the effective date 
     of this section in which the local educational agency is 
     applying for funds for such school under this Act, shall 
     certify that such school is in compliance with such 
     requirements.

     Any school covered by paragraph (1) for which the local 
     educational agency concerned is unable to certify compliance 
     with such requirements in such second program year shall be 
     ineligible for all funding under this title for such second 
     program year and all subsequent program years until such time 
     as such school comes into compliance with such requirements.
       ``(iii) Waivers.--Any school subject to a certification 
     under clause (ii)(II) for which the local educational agency 
     concerned cannot make the certification otherwise required by 
     that clause may seek a waiver of that clause if State or 
     local procurement rules or regulations or competitive bidding 
     requirements prevent the making of the certification 
     otherwise required by that clause. The local educational 
     agency concerned shall notify the Secretary of the 
     applicability of that clause to the school. Such notice shall 
     certify that the school will be brought into compliance with 
     the requirements in paragraph (1) before the start of the 
     third program year after the effective date of this section 
     in which the school is applying for funds under this title.
       ``(3) Disabling during certain use.--An administrator, 
     supervisor, or person authorized by the responsible authority 
     under paragraph (1) may disable the technology protection 
     measure concerned to enable access for bona fide research or 
     other lawful purposes.
       ``(4) Noncompliance.--
       ``(A) Use of general education provisions act remedies.--
     Whenever the Secretary has reason to believe that any 
     recipient of funds under this title is failing to comply 
     substantially with the requirements of this subsection, the 
     Secretary may--
       ``(i) withhold further payments to the recipient under this 
     title,
       ``(ii) issue a complaint to compel compliance of the 
     recipient through a cease and desist order, or
       ``(iii) enter into a compliance agreement with a recipient 
     to bring it into compliance with such requirements,
     in same manner as the Secretary is authorized to take such 
     actions under sections 455, 456, and 457, respectively, of 
     the General Education Provisions Act (20 U.S.C. 1234d).
       ``(B) Recovery of funds prohibited.--The actions authorized 
     by subparagraph (A) are the exclusive remedies available with 
     respect to the failure of a school to comply substantially 
     with a provision of this subsection, and the Secretary shall 
     not seek a recovery of funds from the recipient for such 
     failure.
       ``(C) Recommencement of payments.--Whenever the Secretary 
     determines (whether by certification or other appropriate 
     evidence) that a recipient of funds who is subject to the 
     withholding of payments under subparagraph (A)(i) has cured 
     the failure providing the basis for the withholding of 
     payments, the Secretary shall cease the withholding of 
     payments to the recipient under that subparagraph.
       ``(5) Definitions.--In this section:
       ``(A) Computer.--The term `computer' includes any hardware, 
     software, or other technology attached or connected to, 
     installed in, or otherwise used in connection with a 
     computer.
       ``(B) Access to internet.--A computer shall be considered 
     to have access to the Internet if such computer is equipped 
     with a modem or is connected to a computer network which has 
     access to the Internet.
       ``(C) Acquisition or operation.--A elementary or secondary 
     school shall be considered to have received funds under this 
     title for the acquisition or operation of any computer if 
     such funds are used in any manner, directly or indirectly--
       ``(i) to purchase, lease, or otherwise acquire or obtain 
     the use of such computer; or
       ``(ii) to obtain services, supplies, software, or other 
     actions or materials to support, or in connection with, the 
     operation of such computer.
       ``(D) Minor.--The term `minor' means an individual who has 
     not attained the age of 17.
       ``(E) Child pornography.--The term `child pornography' has 
     the meaning given such term in section 2256 of title 18, 
     United States Code.
       ``(F) Harmful to minors.--The term `harmful to minors' 
     means any picture, image, graphic image file, or other visual 
     depiction that--
       ``(i) taken as a whole and with respect to minors, appeals 
     to a prurient interest in nudity, sex, or excretion;
       ``(ii) depicts, describes, or represents, in a patently 
     offensive way with respect to what is suitable for minors, an 
     actual or simulated sexual act or sexual contact, actual or 
     simulated normal or perverted sexual acts, or a lewd 
     exhibition of the genitals; and
       ``(iii) taken as a whole, lacks serious literary, artistic, 
     political, or scientific value as to minors.
       ``(G) Obscene.--The term `obscene' has the meaning given 
     such term in section 1460 of title 18, United States Code.
       ``(H) Sexual act; sexual contact.--The terms `sexual act' 
     and `sexual contact' have the meanings given such terms in 
     section 2246 of title 18, United States Code.
       ``(b) Effective Date.--This section shall take effect 120 
     days after the date of the enactment of the Children's 
     Internet Protection Act.
       ``(c) Separability.--If any provision of this section is 
     held invalid, the remainder of this section shall not be 
     affected thereby.''.

     SEC. 1712. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR 
                   LIBRARIES.

       (a) Amendment.--Section 224 of the Museum and Library 
     Services Act (20 U.S.C. 9134(b)) is amended--
       (1) in subsection (b)--
       (A) by redesignating paragraph (6) as paragraph (7); and
       (B) by inserting after paragraph (5) the following new 
     paragraph:
       ``(6) provide assurances that the State will comply with 
     subsection (f); and''; and
       (2) by adding at the end the following new subsection:
       ``(f) Internet Safety.--
       ``(1) In general.--No funds made available under this Act 
     for a library described in section 213(2)(A) or (B) that does 
     not receive services at discount rates under section 
     254(h)(6) of the Communications Act of 1934, as added by 
     section 1721 of this Children's Internet Protection Act, may 
     be used to purchase computers used to access the Internet, or 
     to pay for direct costs associated with accessing the 
     Internet, for such library unless--
       ``(A) such library--
       ``(i) has in place a policy of Internet safety for minors 
     that includes the operation of a technology protection 
     measure with respect to any of its computers with Internet 
     access that protects against access through such computers to 
     visual depictions that are--

       ``(I) obscene;
       ``(II) child pornography; or
       ``(III) harmful to minors; and

       ``(ii) is enforcing the operation of such technology 
     protection measure during any use of such computers by 
     minors; and
       ``(B) such library--
       ``(i) has in place a policy of Internet safety that 
     includes the operation of a technology protection measure 
     with respect to any of its computers with Internet access 
     that protects against access through such computers to visual 
     depictions that are--

       ``(I) obscene; or
       ``(II) child pornography; and

       ``(ii) is enforcing the operation of such technology 
     protection measure during any use of such computers.
       ``(2) Access to other materials.--Nothing in this 
     subsection shall be construed to prohibit a library from 
     limiting Internet access to or otherwise protecting against 
     materials other than those referred to in subclauses (I), 
     (II), and (III) of paragraph (1)(A)(i).
       ``(3) Disabling during certain use.--An administrator, 
     supervisor, or other authority may disable a technology 
     protection measure under paragraph (1) to enable access for 
     bona fide research or other lawful purposes.
       ``(4) Timing and applicability of implementation.--
       ``(A) In general.--A library covered by paragraph (1) shall 
     certify the compliance of such library with the requirements 
     of paragraph (1) as part of the application process for the 
     next program funding year under this Act following the 
     effective date of this subsection, and for each subsequent 
     program funding year thereafter.
       ``(B) Process.--
       ``(i) Libraries with internet safety policies and 
     technology protection measures in place.--A library covered 
     by paragraph (1) that has in place an Internet safety policy 
     meeting the requirements of paragraph (1) shall certify its 
     compliance with paragraph (1) during each annual program 
     application cycle under this Act.
       ``(ii) Libraries without internet safety policies and 
     technology protection measures in place.--A library covered 
     by paragraph

[[Page 26880]]

     (1) that does not have in place an Internet safety policy 
     meeting the requirements of paragraph (1)--

       ``(I) for the first program year after the effective date 
     of this subsection in which the library applies for funds 
     under this Act, shall certify that it is undertaking such 
     actions, including any necessary procurement procedures, to 
     put in place an Internet safety policy that meets such 
     requirements; and
       ``(II) for the second program year after the effective date 
     of this subsection in which the library applies for funds 
     under this Act, shall certify that such library is in 
     compliance with such requirements.

     Any library covered by paragraph (1) that is unable to 
     certify compliance with such requirements in such second 
     program year shall be ineligible for all funding under this 
     Act for such second program year and all subsequent program 
     years until such time as such library comes into compliance 
     with such requirements.
       ``(iii) Waivers.--Any library subject to a certification 
     under clause (ii)(II) that cannot make the certification 
     otherwise required by that clause may seek a waiver of that 
     clause if State or local procurement rules or regulations or 
     competitive bidding requirements prevent the making of the 
     certification otherwise required by that clause. The library 
     shall notify the Director of the Institute of Museum and 
     Library Services of the applicability of that clause to the 
     library. Such notice shall certify that the library will 
     comply with the requirements in paragraph (1) before the 
     start of the third program year after the effective date of 
     this subsection for which the library is applying for funds 
     under this Act.
       ``(5) Noncompliance.--
       ``(A) Use of general education provisions act remedies.--
     Whenever the Director of the Institute of Museum and Library 
     Services has reason to believe that any recipient of funds 
     this Act is failing to comply substantially with the 
     requirements of this subsection, the Director may--
       ``(i) withhold further payments to the recipient under this 
     Act,
       ``(ii) issue a complaint to compel compliance of the 
     recipient through a cease and desist order, or
       ``(iii) enter into a compliance agreement with a recipient 
     to bring it into compliance with such requirements.
       ``(B) Recovery of funds prohibited.--The actions authorized 
     by subparagraph (A) are the exclusive remedies available with 
     respect to the failure of a library to comply substantially 
     with a provision of this subsection, and the Director shall 
     not seek a recovery of funds from the recipient for such 
     failure.
       ``(C) Recommencement of payments.--Whenever the Director 
     determines (whether by certification or other appropriate 
     evidence) that a recipient of funds who is subject to the 
     withholding of payments under subparagraph (A)(i) has cured 
     the failure providing the basis for the withholding of 
     payments, the Director shall cease the withholding of 
     payments to the recipient under that subparagraph.
       ``(6) Separability.--If any provision of this subsection is 
     held invalid, the remainder of this subsection shall not be 
     affected thereby.
       ``(7) Definitions.--In this section:
       ``(A) Child pornography.--The term `child pornography' has 
     the meaning given such term in section 2256 of title 18, 
     United States Code.
       ``(B) Harmful to minors.--The term `harmful to minors' 
     means any picture, image, graphic image file, or other visual 
     depiction that--
       ``(i) taken as a whole and with respect to minors, appeals 
     to a prurient interest in nudity, sex, or excretion;
       ``(ii) depicts, describes, or represents, in a patently 
     offensive way with respect to what is suitable for minors, an 
     actual or simulated sexual act or sexual contact, actual or 
     simulated normal or perverted sexual acts, or a lewd 
     exhibition of the genitals; and
       ``(iii) taken as a whole, lacks serious literary, artistic, 
     political, or scientific value as to minors.
       ``(C) Minor.--The term `minor' means an individual who has 
     not attained the age of 17.
       ``(D) Obscene.--The term `obscene' has the meaning given 
     such term in section 1460 of title 18, United States Code.
       ``(E) Sexual act; sexual contact.--The terms `sexual act' 
     and `sexual contact' have the meanings given such terms in 
     section 2246 of title 18, United States Code.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect 120 days after the date of the enactment of 
     this Act.

                Subtitle B--Universal Service Discounts

     SEC. 1721. REQUIREMENT FOR SCHOOLS AND LIBRARIES TO ENFORCE 
                   INTERNET SAFETY POLICIES WITH TECHNOLOGY 
                   PROTECTION MEASURES FOR COMPUTERS WITH INTERNET 
                   ACCESS AS CONDITION OF UNIVERSAL SERVICE 
                   DISCOUNTS.

       (a) Schools.--Section 254(h) of the Communications Act of 
     1934 (47 U.S.C. 254(h)) is amended--
       (1) by redesignating paragraph (5) as paragraph (7); and
       (2) by inserting after paragraph (4) the following new 
     paragraph (5):
       ``(5) Requirements for certain schools with computers 
     having internet access.--
       ``(A) Internet safety.--
       ``(i) In general.--Except as provided in clause (ii), an 
     elementary or secondary school having computers with Internet 
     access may not receive services at discount rates under 
     paragraph (1)(B) unless the school, school board, local 
     educational agency, or other authority with responsibility 
     for administration of the school--

       ``(I) submits to the Commission the certifications 
     described in subparagraphs (B) and (C);
       ``(II) submits to the Commission a certification that an 
     Internet safety policy has been adopted and implemented for 
     the school under subsection (l); and
       ``(III) ensures the use of such computers in accordance 
     with the certifications.

       ``(ii) Applicability.--The prohibition in clause (i) shall 
     not apply with respect to a school that receives services at 
     discount rates under paragraph (1)(B) only for purposes other 
     than the provision of Internet access, Internet service, or 
     internal connections.
       ``(iii) Public notice; hearing.--An elementary or secondary 
     school described in clause (i), or the school board, local 
     educational agency, or other authority with responsibility 
     for administration of the school, shall provide reasonable 
     public notice and hold at least 1 public hearing or meeting 
     to address the proposed Internet safety policy. In the case 
     of an elementary or secondary school other than an elementary 
     or secondary school as defined in section 14101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8801), the notice and hearing required by this clause may be 
     limited to those members of the public with a relationship to 
     the school.
       ``(B) Certification with respect to minors.--A 
     certification under this subparagraph is a certification that 
     the school, school board, local educational agency, or other 
     authority with responsibility for administration of the 
     school--
       ``(i) is enforcing a policy of Internet safety for minors 
     that includes monitoring the online activities of minors and 
     the operation of a technology protection measure with respect 
     to any of its computers with Internet access that protects 
     against access through such computers to visual depictions 
     that are--

       ``(I) obscene;
       ``(II) child pornography; or
       ``(III) harmful to minors; and

       ``(ii) is enforcing the operation of such technology 
     protection measure during any use of such computers by 
     minors.
       ``(C) Certification with respect to adults.--A 
     certification under this paragraph is a certification that 
     the school, school board, local educational agency, or other 
     authority with responsibility for administration of the 
     school--
       ``(i) is enforcing a policy of Internet safety that 
     includes the operation of a technology protection measure 
     with respect to any of its computers with Internet access 
     that protects against access through such computers to visual 
     depictions that are--

       ``(I) obscene; or
       ``(II) child pornography; and

       ``(ii) is enforcing the operation of such technology 
     protection measure during any use of such computers.
       ``(D) Disabling during adult use.--An administrator, 
     supervisor, or other person authorized by the certifying 
     authority under subparagraph (A)(i) may disable the 
     technology protection measure concerned, during use by an 
     adult, to enable access for bona fide research or other 
     lawful purpose.
       ``(E) Timing of implementation.--
       ``(i) In general.--Subject to clause (ii) in the case of 
     any school covered by this paragraph as of the effective date 
     of this paragraph under section 1721(h) of the Children's 
     Internet Protection Act, the certification under 
     subparagraphs (B) and (C) shall be made--

       ``(I) with respect to the first program funding year under 
     this subsection following such effective date, not later than 
     120 days after the beginning of such program funding year; 
     and
       ``(II) with respect to any subsequent program funding year, 
     as part of the application process for such program funding 
     year.

       ``(ii) Process.--

       ``(I) Schools with internet safety policy and technology 
     protection measures in place.--A school covered by clause (i) 
     that has in place an Internet safety policy and technology 
     protection measures meeting the requirements necessary for 
     certification under subparagraphs (B) and (C) shall certify 
     its compliance with subparagraphs (B) and (C) during each 
     annual program application cycle under this subsection, 
     except that with respect to the first program funding year 
     after the effective date of this paragraph under section 
     1721(h) of the Children's Internet Protection Act, the 
     certifications shall be made not later than 120 days after 
     the beginning of such first program funding year.
       ``(II) Schools without internet safety policy and 
     technology protection measures in place.--A school covered by 
     clause (i) that does not have in place an Internet safety 
     policy and technology protection measures meeting the 
     requirements necessary for certification under subparagraphs 
     (B) and (C)--

       ``(aa) for the first program year after the effective date 
     of this subsection in which it is applying for funds under 
     this subsection, shall certify that it is undertaking such 
     actions, including any necessary procurement procedures, to 
     put in place an Internet safety policy and technology 
     protection measures meeting the requirements necessary for 
     certification under subparagraphs (B) and (C); and
       ``(bb) for the second program year after the effective date 
     of this subsection in which it is applying for funds under 
     this subsection, shall certify that it is in compliance with 
     subparagraphs (B) and (C).


[[Page 26881]]



     Any school that is unable to certify compliance with such 
     requirements in such second program year shall be ineligible 
     for services at discount rates or funding in lieu of services 
     at such rates under this subsection for such second year and 
     all subsequent program years under this subsection, until 
     such time as such school comes into compliance with this 
     paragraph.
       ``(III) Waivers.--Any school subject to subclause (II) that 
     cannot come into compliance with subparagraphs (B) and (C) in 
     such second year program may seek a waiver of subclause 
     (II)(bb) if State or local procurement rules or regulations 
     or competitive bidding requirements prevent the making of the 
     certification otherwise required by such subclause. A school, 
     school board, local educational agency, or other authority 
     with responsibility for administration of the school shall 
     notify the Commission of the applicability of such subclause 
     to the school. Such notice shall certify that the school in 
     question will be brought into compliance before the start of 
     the third program year after the effective date of this 
     subsection in which the school is applying for funds under 
     this subsection.

       ``(F) Noncompliance.--
       ``(i) Failure to submit certification.--Any school that 
     knowingly fails to comply with the application guidelines 
     regarding the annual submission of certification required by 
     this paragraph shall not be eligible for services at discount 
     rates or funding in lieu of services at such rates under this 
     subsection.
       ``(ii) Failure to comply with certification.--Any school 
     that knowingly fails to ensure the use of its computers in 
     accordance with a certification under subparagraphs (B) and 
     (C) shall reimburse any funds and discounts received under 
     this subsection for the period covered by such certification.
       ``(iii) Remedy of noncompliance.--

       ``(I) Failure to submit.--A school that has failed to 
     submit a certification under clause (i) may remedy the 
     failure by submitting the certification to which the failure 
     relates. Upon submittal of such certification, the school 
     shall be eligible for services at discount rates under this 
     subsection.
       ``(II) Failure to comply.--A school that has failed to 
     comply with a certification as described in clause (ii) may 
     remedy the failure by ensuring the use of its computers in 
     accordance with such certification. Upon submittal to the 
     Commission of a certification or other appropriate evidence 
     of such remedy, the school shall be eligible for services at 
     discount rates under this subsection.''.

       (b) Libraries.--Such section 254(h) is further amended by 
     inserting after paragraph (5), as amended by subsection (a) 
     of this section, the following new paragraph:
       ``(6) Requirements for certain libraries with computers 
     having internet access.--
       ``(A) Internet safety.--
       ``(i) In general.--Except as provided in clause (ii), a 
     library having one or more computers with Internet access may 
     not receive services at discount rates under paragraph (1)(B) 
     unless the library--

       ``(I) submits to the Commission the certifications 
     described in subparagraphs (B) and (C); and
       ``(II) submits to the Commission a certification that an 
     Internet safety policy has been adopted and implemented for 
     the library under subsection (l); and
       ``(III) ensures the use of such computers in accordance 
     with the certifications.

       ``(ii) Applicability.--The prohibition in clause (i) shall 
     not apply with respect to a library that receives services at 
     discount rates under paragraph (1)(B) only for purposes other 
     than the provision of Internet access, Internet service, or 
     internal connections.
       ``(iii) Public notice; hearing.--A library described in 
     clause (i) shall provide reasonable public notice and hold at 
     least 1 public hearing or meeting to address the proposed 
     Internet safety policy.
       ``(B) Certification with respect to minors.--A 
     certification under this subparagraph is a certification that 
     the library--
       ``(i) is enforcing a policy of Internet safety that 
     includes the operation of a technology protection measure 
     with respect to any of its computers with Internet access 
     that protects against access through such computers to visual 
     depictions that are--

       ``(I) obscene;
       ``(II) child pornography; or
       ``(III) harmful to minors; and

       ``(ii) is enforcing the operation of such technology 
     protection measure during any use of such computers by 
     minors.
       ``(C) Certification with respect to adults.--A 
     certification under this paragraph is a certification that 
     the library--
       ``(i) is enforcing a policy of Internet safety that 
     includes the operation of a technology protection measure 
     with respect to any of its computers with Internet access 
     that protects against access through such computers to visual 
     depictions that are--

       ``(I) obscene; or
       ``(II) child pornography; and

       ``(ii) is enforcing the operation of such technology 
     protection measure during any use of such computers.
       ``(D) Disabling during adult use.--An administrator, 
     supervisor, or other person authorized by the certifying 
     authority under subparagraph (A)(i) may disable the 
     technology protection measure concerned, during use by an 
     adult, to enable access for bona fide research or other 
     lawful purpose.
       ``(E) Timing of implementation.--
       ``(i) In general.--Subject to clause (ii) in the case of 
     any library covered by this paragraph as of the effective 
     date of this paragraph under section 1721(h) of the 
     Children's Internet Protection Act, the certification under 
     subparagraphs (B) and (C) shall be made--

       ``(I) with respect to the first program funding year under 
     this subsection following such effective date, not later than 
     120 days after the beginning of such program funding year; 
     and
       ``(II) with respect to any subsequent program funding year, 
     as part of the application process for such program funding 
     year.

       ``(ii) Process.--

       ``(I) Libraries with internet safety policy and technology 
     protection measures in place.--A library covered by clause 
     (i) that has in place an Internet safety policy and 
     technology protection measures meeting the requirements 
     necessary for certification under subparagraphs (B) and (C) 
     shall certify its compliance with subparagraphs (B) and (C) 
     during each annual program application cycle under this 
     subsection, except that with respect to the first program 
     funding year after the effective date of this paragraph under 
     section 1721(h) of the Children's Internet Protection Act, 
     the certifications shall be made not later than 120 days 
     after the beginning of such first program funding year.
       ``(II) Libraries without internet safety policy and 
     technology protection measures in place.--A library covered 
     by clause (i) that does not have in place an Internet safety 
     policy and technology protection measures meeting the 
     requirements necessary for certification under subparagraphs 
     (B) and (C)--

       ``(aa) for the first program year after the effective date 
     of this subsection in which it is applying for funds under 
     this subsection, shall certify that it is undertaking such 
     actions, including any necessary procurement procedures, to 
     put in place an Internet safety policy and technology 
     protection measures meeting the requirements necessary for 
     certification under subparagraphs (B) and (C); and
       ``(bb) for the second program year after the effective date 
     of this subsection in which it is applying for funds under 
     this subsection, shall certify that it is in compliance with 
     subparagraphs (B) and (C).

     Any library that is unable to certify compliance with such 
     requirements in such second program year shall be ineligible 
     for services at discount rates or funding in lieu of services 
     at such rates under this subsection for such second year and 
     all subsequent program years under this subsection, until 
     such time as such library comes into compliance with this 
     paragraph.
       ``(III) Waivers.--Any library subject to subclause (II) 
     that cannot come into compliance with subparagraphs (B) and 
     (C) in such second year may seek a waiver of subclause 
     (II)(bb) if State or local procurement rules or regulations 
     or competitive bidding requirements prevent the making of the 
     certification otherwise required by such subclause. A 
     library, library board, or other authority with 
     responsibility for administration of the library shall notify 
     the Commission of the applicability of such subclause to the 
     library. Such notice shall certify that the library in 
     question will be brought into compliance before the start of 
     the third program year after the effective date of this 
     subsection in which the library is applying for funds under 
     this subsection.

       ``(F) Noncompliance.--
       ``(i) Failure to submit certification.--Any library that 
     knowingly fails to comply with the application guidelines 
     regarding the annual submission of certification required by 
     this paragraph shall not be eligible for services at discount 
     rates or funding in lieu of services at such rates under this 
     subsection.
       ``(ii) Failure to comply with certification.--Any library 
     that knowingly fails to ensure the use of its computers in 
     accordance with a certification under subparagraphs (B) and 
     (C) shall reimburse all funds and discounts received under 
     this subsection for the period covered by such certification.
       ``(iii) Remedy of noncompliance.--

       ``(I) Failure to submit.--A library that has failed to 
     submit a certification under clause (i) may remedy the 
     failure by submitting the certification to which the failure 
     relates. Upon submittal of such certification, the library 
     shall be eligible for services at discount rates under this 
     subsection.
       ``(II) Failure to comply.--A library that has failed to 
     comply with a certification as described in clause (ii) may 
     remedy the failure by ensuring the use of its computers in 
     accordance with such certification. Upon submittal to the 
     Commission of a certification or other appropriate evidence 
     of such remedy, the library shall be eligible for services at 
     discount rates under this subsection.''.

       (c) Definitions.--Paragraph (7) of such section, as 
     redesignated by subsection (a)(1) of this section, is amended 
     by adding at the end the following:
       ``(D) Minor.--The term `minor' means any individual who has 
     not attained the age of 17 years.
       ``(E) Obscene.--The term `obscene' has the meaning given 
     such term in section 1460 of title 18, United States Code.
       ``(F) Child pornography.--The term `child pornography' has 
     the meaning given such term in section 2256 of title 18, 
     United States Code.
       ``(G) Harmful to minors.--The term `harmful to minors' 
     means any picture, image, graphic image file, or other visual 
     depiction that--
       ``(i) taken as a whole and with respect to minors, appeals 
     to a prurient interest in nudity, sex, or excretion;

[[Page 26882]]

       ``(ii) depicts, describes, or represents, in a patently 
     offensive way with respect to what is suitable for minors, an 
     actual or simulated sexual act or sexual contact, actual or 
     simulated normal or perverted sexual acts, or a lewd 
     exhibition of the genitals; and
       ``(iii) taken as a whole, lacks serious literary, artistic, 
     political, or scientific value as to minors.
       ``(H) Sexual act; sexual contact.--The terms `sexual act' 
     and `sexual contact' have the meanings given such terms in 
     section 2246 of title 18, United States Code.
       ``(I) Technology protection measure.--The term `technology 
     protection measure' means a specific technology that blocks 
     or filters Internet access to the material covered by a 
     certification under paragraph (5) or (6) to which such 
     certification relates.''.
       (d) Conforming Amendment.--Paragraph (4) of such section is 
     amended by striking ``paragraph (5)(A)'' and inserting 
     ``paragraph (7)(A)''.
       (e) Separability.--If any provision of paragraph (5) or (6) 
     of section 254(h) of the Communications Act of 1934, as 
     amended by this section, or the application thereof to any 
     person or circumstance is held invalid, the remainder of such 
     paragraph and the application of such paragraph to other 
     persons or circumstances shall not be affected thereby.
       (f) Regulations.--
       (1) Requirement.--The Federal Communications Commission 
     shall prescribe regulations for purposes of administering the 
     provisions of paragraphs (5) and (6) of section 254(h) of the 
     Communications Act of 1934, as amended by this section.
       (2) Deadline.--Notwithstanding any other provision of law, 
     the Commission shall prescribe regulations under paragraph 
     (1) so as to ensure that such regulations take effect 120 
     days after the date of the enactment of this Act.
       (g) Availability of Certain Funds for Acquisition of 
     Technology Protection Measures.
       (1) In general.--Notwithstanding any other provision of 
     law, funds available under section 3134 or part A of title VI 
     of the Elementary and Secondary Education Act of 1965, or 
     under section 231 of the Library Services and Technology Act, 
     may be used for the purchase or acquisition of technology 
     protection measures that are necessary to meet the 
     requirements of this title and the amendments made by this 
     title. No other sources of funds for the purchase or 
     acquisition of such measures are authorized by this title, or 
     the amendments made by this title.
       (2) Technology protection measure defined.--In this 
     section, the term ``technology protection measure'' has the 
     meaning given that term in section 1703.
       (h) Effective Date.--The amendments made by this section 
     shall take effect 120 days after the date of the enactment of 
     this Act.

        Subtitle C--Neighborhood Children's Internet Protection

     SEC. 1731. SHORT TITLE.

       This subtitle may be cited as the ``Neighborhood Children's 
     Internet Protection Act''.

     SEC. 1732. INTERNET SAFETY POLICY REQUIRED.

       Section 254 of the Communications Act of 1934 (47 U.S.C. 
     254) is amended by adding at the end the following:
       ``(l) Internet Safety Policy Requirement for Schools and 
     Libraries.--
       ``(1) In general.--In carrying out its responsibilities 
     under subsection (h), each school or library to which 
     subsection (h) applies shall--
       ``(A) adopt and implement an Internet safety policy that 
     addresses--
       ``(i) access by minors to inappropriate matter on the 
     Internet and World Wide Web;
       ``(ii) the safety and security of minors when using 
     electronic mail, chat rooms, and other forms of direct 
     electronic communications;
       ``(iii) unauthorized access, including so-called `hacking', 
     and other unlawful activities by minors online;
       ``(iv) unauthorized disclosure, use, and dissemination of 
     personal identification information regarding minors; and
       ``(v) measures designed to restrict minors' access to 
     materials harmful to minors; and
       ``(B) provide reasonable public notice and hold at least 
     one public hearing or meeting to address the proposed 
     Internet safety policy.
       ``(2) Local determination of content.--A determination 
     regarding what matter is inappropriate for minors shall be 
     made by the school board, local educational agency, library, 
     or other authority responsible for making the determination. 
     No agency or instrumentality of the United States Government 
     may--
       ``(A) establish criteria for making such determination;
       ``(B) review the determination made by the certifying 
     school, school board, local educational agency, library, or 
     other authority; or
       ``(C) consider the criteria employed by the certifying 
     school, school board, local educational agency, library, or 
     other authority in the administration of subsection 
     (h)(1)(B).
       ``(3) Availability for review.--Each Internet safety policy 
     adopted under this subsection shall be made available to the 
     Commission, upon request of the Commission, by the school, 
     school board, local educational agency, library, or other 
     authority responsible for adopting such Internet safety 
     policy for purposes of the review of such Internet safety 
     policy by the Commission.
       ``(4) Effective date.--This subsection shall apply with 
     respect to schools and libraries on or after the date that is 
     120 days after the date of the enactment of the Children's 
     Internet Protection Act.''.

     SEC. 1733. IMPLEMENTING REGULATIONS.

       Not later than 120 days after the date of enactment of this 
     Act, the Federal Communications Commission shall prescribe 
     regulations for purposes of section 254(l) of the 
     Communications Act of 1934, as added by section 1732 of this 
     Act.

                      Subtitle D--Expedited Review

     SEC. 1741. EXPEDITED REVIEW.

       (a) Three-Judge District Court Hearing.--Notwithstanding 
     any other provision of law, any civil action challenging the 
     constitutionality, on its face, of this title or any 
     amendment made by this title, or any provision thereof, shall 
     be heard by a district court of 3 judges convened pursuant to 
     the provisions of section 2284 of title 28, United States 
     Code.
       (b) Appellate Review.--Notwithstanding any other provision 
     of law, an interlocutory or final judgment, decree, or order 
     of the court of 3 judges in an action under subsection (a) 
     holding this title or an amendment made by this title, or any 
     provision thereof, unconstitutional shall be reviewable as a 
     matter of right by direct appeal to the Supreme Court. Any 
     such appeal shall be filed not more than 20 days after entry 
     of such judgment, decree, or order.
       This Act may be cited as the ``Miscellaneous Appropriations 
     Act, 2001''.

                      MISCELLANEOUS APPROPRIATIONS

       Following is explanatory language on H.R. 5666, as 
     introduced on December 15, 2000.
       The conferees on H.R. 4577 agree with the matter included 
     in H.R. 5666 and enacted in this conference report by 
     reference and the following description of it.

                               DIVISION A

                               CHAPTER 1

                    General Provisions--This Chapter

       The conference agreement includes language which: provides 
     that not more than $100,000 shall be available for guarantees 
     of private sector rural electrification and 
     telecommunications loans; clarifies that a housing 
     demonstration program is to be carried out in Mississippi and 
     Alaska; clarifies that the Initiative for Future Agriculture 
     and Food Systems shall be used to make grants only to 
     colleges, universities, or research foundations maintained by 
     a college or university; makes a technical correction to the 
     Rural Community Advancement Program to specify that funds may 
     be used in counties which have received an emergency 
     designation after January 1, 2000; provides certain transfers 
     under the livestock assistance program; clarifies eligibility 
     for quality losses; clarifies that Emergency Conservation 
     Program funds previously appropriated for the Cerro Grande 
     fire can be made available for drought benefits; clarifies a 
     provision regarding payments to producers that suffered 
     losses because of the insolvency of an agriculture 
     cooperative in the State of California; provides that Burley, 
     Flue-cured, and Cigar Binder Type 54-55 tobacco will be 
     treated identically for loan forfeiture purposes; and 
     establishes an effective date for a provision of the 
     Agricultural Risk Protection Act of 2000 regarding 
     limitations on Burley tobacco quota adjustments. The 
     effective date of these provisions is the date of enactment 
     of the Agriculture, Rural Development, Food and Drug 
     Administration, and Related Agencies Appropriations Act, 
     2001.
       The conference agreement includes a section maintaining the 
     eligibility of certain rural areas for U.S. Department of 
     Agriculture rural housing programs.
       The conference agreement includes a section that authorizes 
     a study on the feasibility of including ethanol, biodiesel, 
     and other bio-based fuels as part of the Strategic Petroleum 
     Reserve.
       The conference agreement includes a section that makes the 
     City of Wilson, NC, eligible for certain U.S. Department of 
     Agriculture rural development programs.
       The conference agreement includes a section that provides 
     $26,000,000 for the Environmental Quality Incentives Program.
       The conference agreement includes a section regarding the 
     operation of the ongoing bovine tuberculosis eradication 
     program. The intent of the conferees is that funding for this 
     program, which is financed through the Commodity Credit 
     Corporation, shall provide a total of not less than 
     $60,259,000.
       The conferees expect that, in developing any consumer 
     guidance regarding mercury exposure from seafood consumption, 
     the Department of Health and Human Services will rely upon 
     the results of more than one relevant study. The Secretary is 
     directed to submit a report to the Committees on 
     Appropriations by February 28, 2001, on any actions regarding 
     a consumer advisory on this subject.
       The conferees urge USDA's Animal and Plant Health 
     Inspection Service (APHIS) to uphold approved sanitary and 
     phytosanitary measures in relation to shipping and cargo 
     materials returning to the United States as a result of trade 
     with Cuba. The conferees urge APHIS to exercise vigilance in 
     the adoption of internal measures to insure that returning 
     containers and shipping materials do not present sanitary or 
     phytosanitary risks to American agriculture or the 
     environment, and to explore the formation of a bilateral 
     cooperative agreement with Cuba to provide for pre-departure 
     inspections of containers leaving Cuba. The conferees also 
     encourage APHIS to work in cooperation with the Departments 
     of Agriculture of the states which will serve as the ports of 
     reentry for these shipping materials and containers.

[[Page 26883]]

       The conference agreement includes a section that makes 
     funding provided in Section 211(b) of the Agriculture Risk 
     Protection Act of 2000 (P.L. 106-224) available for the 
     Farmland Protection Program.
       The conference agreement provides an additional $500,000 to 
     hire additional attorneys for the Trade Practices Division of 
     the Office of the General Counsel to enforce the Packers and 
     Stockyards Act.
       The conference agreement provides an additional $200,000 
     for the Grain Inspection, Packers and Stockyards 
     Administration to establish a hog contract library.
       The conference agreement includes language making available 
     funds of the Emergency Watershed Program to accelerate 
     completion of the Hamakua Ditch project in Hawaii.

                               CHAPTER 2

                         DEPARTMENT OF JUSTICE

                         Federal Prison System


                         Salaries and Expenses

       The conference agreement includes $500,000 for the National 
     Institute of Corrections (NIC) for a comprehensive assessment 
     of medical care and incidents of inmate mortality in the 
     Wisconsin State Prison System.

                       Office of Justice Programs


                           Justice Assistance

       The conference agreement includes $300,000 to expand the 
     collection of data on prisoner deaths while in law 
     enforcement custody.


                  Community Oriented Policing Services

       The conference agreement includes $3,080,000 under this 
     heading, of which $1,880,000 is for a grant to the Pasadena, 
     California, Police Department for equipment; $200,000 is for 
     a grant to the City of Signal Hill, California, for equipment 
     and technology for an emergency operations center; and of 
     which $1,000,000 is for a grant to the State of Alabama 
     Department of Forensic Sciences for equipment.


                       Juvenile Justice Programs

       The conference agreement includes $1,000,000 for a grant to 
     Mobile County, Alabama, for a juvenile court network program.

                           General Provisions

       Sec. 201. The conference agreement includes a provision 
     making technical changes to Chapter 2 of title II of division 
     B of Public Law 106-246.
       Sec. 202. The conference agreement includes a provision 
     appropriating $10,000,000 to the State of Texas and 
     $2,000,000 to the State of Arizona to reimburse county and 
     municipal governments only for Federal costs associated with 
     the handling and processing of illegal immigration and drug 
     and alien smuggling cases.
       Sec. 203. The conference agreement includes $9,000,000 to 
     establishment of the Strom Thurmond Boy & Girls Club National 
     Training Center.
       Sec. 204. The conference agreement includes $500,000 for 
     the New Hampshire Department of Safety to investigate and 
     support the prosecution of violations of federal trucking 
     laws.
       Sec. 205. The conference agreement includes $4,000,000 for 
     the State of South Dakota to establish a regional radio 
     system.

                         DEPARTMENT OF COMMERCE

                   Economic and Statistical Analysis


                         salaries and expenses

       The conference agreement includes $200,000 for the 
     establishment of satellite accounts for the travel and 
     tourism industry.

            National Oceanic and Atmospheric Administration


                  operations, research, and facilities

       The conference agreement includes $750,000 for a study by 
     the National Academy of Sciences pursuant to H.R. 2090, as 
     passed by the House of Representatives on September 12, 2000.
       In addition, the conferees encourage the National Oceanic 
     and Atmospheric Administration (NOAA) and the Federal 
     Maritime Administration (FMA) to work collaboratively with 
     the Great Lakes Science Center in Cleveland, Ohio in support 
     of its Great Lakes Tour simulator and related education 
     programming.
       The conferees also direct the National Oceanic and 
     Atmospheric Administration (NOAA) to develop a plan to 
     establish a program for migrating the 8 mm NEXRAD Level II 
     data archives onto a modern retrievable media, and to report 
     back to the Committees on Appropriations by February 1, 2001.
       Sec. 206. The conference agreement includes a technical 
     change to funding provided to the National Marine Fisheries 
     Management Service regarding Stellar sea lion related 
     funding.
       Sec. 207. The conference agreement includes $7,500,000 for 
     assistance to certain Alaska fisheries.
       Sec. 208. The conference agreement includes $3,000,000 for 
     assistance to certain Hawaii fisheries.
       Sec. 209. The conference agreement includes a provision 
     regarding the Bering Sea/Aleutian Island and Gulf of Alaska 
     fisheries.
       Sec. 210. The conference agreement includes $500,000 for 
     the Irish Institute.
       Sec. 211. The conference agreement includes $5,000,000 to 
     increase coverage and hours of Radio Free Europe/Radio 
     Liberty (RFE/RL) and Voice of America (VOA) broadcasts to 
     Russia and surrounding areas affected by the recent 
     restrictions on media instituted by the Putin regime. In 
     addition, the conference agreement includes $5,000,000 for 
     Radio Free Asia and the Voice of America to increase both the 
     quantity and quality of their broadcasts to China, in 
     accordance with authorization contained in the China PNTR 
     enacting legislation, Section 701(b)(2) of H.R. 4444.
       Before using any of the transfer authority provided in this 
     section and within sixty days of enactment of this act, the 
     Broadcasting Board of Governors shall provide to the 
     Committees on Appropriations a spending plan for the total 
     amount provided. This plan should emphasize new RL and VOA 
     Russian and related broadcasts in specific areas most 
     impacted by the recent media restrictions. Also included in 
     the spending plan should be a projection concerning shortwave 
     and medium wave technology needs in this newly closed 
     environment. Amounts proposed for transfer to the 
     Broadcasting Capital Improvements account should be based 
     solely on increased broadcasting to Russia and surrounding 
     areas and to China.

                            RELATED AGENCIES

                 Commission on Online Child Protection

       The conference agreement includes $750,000 for the 
     Commission on Online Child Protection.

                     Small Business Administration


                         salaries and expenses

       The conference agreement includes $1,000,000 for a grant to 
     establish an electronic commerce technology distribution 
     center in Scranton, Pennsylvania.
       Sec. 212. The conference agreement includes $1,000,000 for 
     the National Museum of Jazz.

                    General Provision--This Chapter

       Sec. 213. The conference agreement includes a provision 
     striking sections 406, 635 and 636, and making technical 
     changes to H.R. 5548.

                               CHAPTER 3

                         DEPARTMENT OF DEFENSE


                      Indirect Airfreight Carriers

       The conferees urge the Air Mobility Command (AMC) to ensure 
     that military air freight is moved in the most time efficient 
     manner possible. In furtherance of that goal, the conferees 
     believe that the Civil Reserve Air Fleet (CRAF) program 
     should admit and encourage indirect airfreight carriers which 
     have demonstrated ability to provide efficient, cost 
     effective service.


                Distributive Training Technology Program

       Public Law 106-259 provided $29,100,000 in ``Other 
     Procurement, Army'' and $65,700,000 in ``Operation and 
     Maintenance, Army National Guard'' for the National Guard 
     Distance Learning Program. It is the conferees' intention 
     that the funds appropriated for this program shall also be 
     available for courseware development and commercial off-the-
     shelf (COTS) management system software and hardware.


                       Biological Warfare Defense

       The conferees direct that of the funds appropriated in the 
     Department of Defense Appropriations Act, 2001 (Public Law 
     106-259) for the Biological Warfare Defense program, under 
     ``Research, Development, Test and Evaluation, Defense-Wide'', 
     $2,000,000 shall be used only for sensor development in the 
     Defense Advanced Research Projects Agency's Standoff/Bioagent 
     Pathogen Detector System program.


                            Cancer Research

       The conferees direct that, using funds appropriated in the 
     Department of Defense Appropriations Act, 2001 for medical 
     research programs, the Assistant Secretary of Defense (Health 
     Affairs) conduct a study on whether environmental factors, 
     such as air pollutants and electromagnetic radiation, 
     contribute to a higher than usual rate of incidence of breast 
     cancer in large populations.


                 Ballistic Missile Defense Organization

       In the Department of Defense Appropriations Act, 2001 
     (Public Law 106-259), the Congress provided additional funds 
     for National Missile Defense risk reduction activities. The 
     Defense Department is reviewing carefully potential 
     enhancements to the NMD test program, including the addition 
     of flight tests as well as the collection of data on various 
     targets and countermeasures. To support these flight test 
     program enhancements, the conferees direct that $3,000,000 of 
     the NMD risk reduction increase be allocated to sensor 
     enhancements and flight test activities outlined in the 
     Arctic Missile Signature Measurement Program (AMSP).

                    General Provisions--This Chapter

       The conference agreement includes a general provision 
     (section 301) allowing obligation of a portion of the fiscal 
     year 2001 procurement funds for the F-22 aircraft, under 
     specified circumstances.
       The conference agreement includes a general provision 
     (section 302) which transfers primary jurisdiction over 
     Shemya Island.
       The conference agreement includes a general provision 
     (section 303) requiring the Ballistic Missile Defense 
     Organization to purchase no less than 40 PAC-3 missiles, the 
     budgeted quantity, with fiscal year 2001 appropriated funds.
       The conference agreement includes a general provision 
     (section 304) which amends

[[Page 26884]]

     section 8133 of the Department of Defense Appropriations Act, 
     2001 (Public Law 106-259), regarding the amount of transfer 
     authority available to the Secretary of the Navy for ship 
     cost changes.
       The conference agreement includes a general provision 
     (section 305) which provides the Secretary of a military 
     department with authority to transfer funds in support of 
     Fisher Houses and Fisher Suites.
       The conference agreement includes a general provision 
     (section 306) providing such sums as required to the Defense 
     Vessel Transfer Program Account for the costs of the lease-
     sale transfers authorized by the National Defense 
     Authorization Act, 2001.
       The conference agreement includes a general provision 
     (section 307) clarifying congressional intent concerning a 
     Gulf War illness research program.
       The conference agreement includes a general provision 
     (section 308) providing $150,000,000 in emergency 
     appropriations to the Department of Defense, for ``Operation 
     and Maintenance, Navy'', for the repair of the U.S.S. Cole, 
     which was severely damaged in a terrorist attack in the port 
     of Aden, Yemen, on October 12, 2000. These funds are in 
     addition to any amounts appropriated in the Department of 
     Defense Appropriations Act, 2001 (Public Law 106-259), and 
     are designated as an emergency requirement pursuant to 
     section 251(b)(2)(A) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended. In addition to the 
     repair, the Navy may expend necessary amounts from these 
     funds for the necessary stabilization of the vessel and its 
     transportation to the United States.
       The conference agreement includes a general provision 
     (section 309) making technical corrections to Section 1092 of 
     the National Defense Authorization Act, 2001, regarding the 
     establishment of an Aerospace Commission.
       The conference agreement includes a general provision 
     (section 310) which provides $2,000,000 only for planning and 
     National Environmental Protection Act documentation for the 
     proposed airfield and heliport at the Marine Corps Air Ground 
     Task Training Command.
       The conference agreement includes a general provision 
     (section 311) which transfers $5,000,000 to carry out the 
     provisions of the Minuteman Missile National Historic Site 
     Establishment Act of 1999 (Public Law 106-115; 113 Stat. 
     1540).
       The conference agreement includes a general provision 
     (section 312) providing the Secretary of the Air Force with 
     authority to transfer certain excess property.
       The conference agreement includes a general provision 
     (section 313) providing $100,000,000 in emergency 
     appropriations for the Overseas Contingency Operations 
     Transfer Fund, to meet classified requirements requested by 
     the Administration. Further details are provided in a 
     classified annex to the Statement of Managers.
       The conference agreement includes a general provision 
     (section 314) providing for the use of up to $3,000,000 for 
     Marine Corps research into nanotechnology for consequence 
     management.
       The conference agreement includes a general provision 
     (section 315) specifying the use of funds made available in 
     the Department of Defense Appropriations Act, 2000, for 
     certain defense medical initiatives.
       The conference agreement includes a general provision 
     (section 316) providing for the acquisition of certain real 
     property by the Secretary of the Navy.
       The conference agreement includes a general provision 
     (section 317) regarding the establishment of Marine Fire 
     Training Centers.
       The conference agreement includes a general provision 
     (section 318) providing the Navy authority to use funds 
     provided in the Department of Defense Appropriations Act, 
     2001, for the repair of the ex-Turner Joy.
       The conference agreement includes a general provision 
     (section 319) providing funds to accelerate transition of the 
     information technology and information services outsourcing 
     activity within the National Imagery and Mapping Agency.
       The conference agreement includes a general provision 
     (section 320) restricting the use of funds provided in the 
     Department of Defense Appropriations Act, 2001 for Air Force 
     radar operations maintenance and support programs or 
     contracts.
       The conference agreement includes a general provision 
     (section 321) providing $1,000,000 for ``Research, 
     Development, Test and Evaluation, Air Force'', to develop 
     rapid diagnostic and fingerprinting techniques along with 
     molecular monitoring systems for the detection of nosocomial 
     infections.
       The conference agreement includes a general provision 
     (section 322), making technical adjustments associated with 
     funding provided in the Department of Defense Appropriations 
     Act, 2001 for the C3RP initiative.
       The conference agreement includes a general provision 
     (section 323) which establishes procedures under which the 
     Departments of Defense and Interior shall provide the 
     Congress with a comprehensive plan and proposed legislation 
     for expansion of the U.S. Army's National Training Center at 
     Fort Irwin, California. These procedures, including specific 
     timelines for developing and implementing a proposed 
     expansion plan and meeting the requirements of the Endangered 
     Species and National Environmental Policy Acts, are the joint 
     recommendations of the Secretaries of Defense and Interior to 
     the Congress.
       The Secretaries have informed the Congress that, given the 
     urgency of the national security considerations involved and 
     the significant amount of research and analysis which has 
     already been conducted, their Departments can expedite the 
     various substantive and procedural reviews required to 
     implement this expansion. The conferees commend the 
     Secretaries of Defense and Interior for the considerable 
     progress made in recent months amongst the various executive 
     branch agencies involved in this process, and for committing 
     their Departments to meet the specific objectives contained 
     in the general provision.

                               CHAPTER 4

                   DISTRICT OF COLUMBIA FEDERAL FUNDS

           Federal Payment of the District of Columbia Courts

       The conference agreement appropriates $400,000 in Federal 
     funds to the District of Columbia courts to cover the costs 
     of a fire that broke out on November 22, 2000, in the H. Carl 
     Moultrie I Courthouse. The appropriation includes $350,000 
     for capital repairs and $50,000 for miscellaneous operating 
     expenses in connection with the fire damage. The conference 
     agreement also includes language that allows the courts to 
     reallocate not more than $1,000,000 of funds already 
     appropriated for fiscal year 2001 in the event the $400,000 
     is not sufficient to cover the costs. The fire caused 
     extensive damage to the Superior Court's Family Division 
     Quality Control Office and less severe damage to six adjacent 
     judges' chambers, electrical damage to the court's cell block 
     area, and damage to electrical and communications wiring.

                    General Provisions--This Chapter

       Sec. 401. The conference agreement inserts a new section 
     concerning water and sewer payments by Federal agencies to 
     the District of Columbia and requires the inspector general 
     of each Federal entity to submit quarterly reports to the 
     House and Senate Committees on Appropriations on the 
     promptness of payment by the agency for water and sewer 
     services furnished by the District.
       Sec. 402. The conference agreement inserts a new section as 
     requested by District officials that repeals a Federal 
     statute enacted in 1866 to convey certain parcels of land to 
     the District to be used solely for schools. The property is 
     at 12th and E Streets, N.E., in the North Lincoln Park 
     neighborhood of Capitol Hill and is the site of the Lovejoy 
     School which ceased being used as a school in 1984, 118 years 
     after the land was conveyed. The DC public school system is 
     under contract to sell the property and although the City 
     Council has passed local legislation to repeal the 1866 law, 
     Federal legislation in necessary because the District 
     government does not have the authority to pass legislation 
     affecting a Federal land interest.
       Sec. 403. The conference agreement inserts a new section 
     that amends language in section 160 of the FY 2000 DC 
     Appropriations Act concerning the Victims of Violent Crime 
     Compensation Act of 1996 that would have required any 
     unobligated balance in excess of $250,000 to be transferred 
     to miscellaneous receipts of the U.S. Treasury. The new 
     section allows the use of $250,000 at the discretion of 
     District officials and requires that amounts in excess of 
     $250,000 be used in accordance with a plan developed by the 
     District and approved by the House and Senate Committees on 
     Appropriations, the House Committee on Government Reform, and 
     the Senate Committee on Governmental Affairs. The language 
     also requires that not less than 80 percent of the amounts in 
     excess of $250,000 be used for direct compensation payments 
     to crime victims.
       Sec. 404. The conference agreement includes a new section 
     concerning the Reserve Fund for the District of Columbia 
     established pursuant to the District of Columbia 
     Appropriations Act, 2001 (Public Law 106-522, approved 
     November 22, 2000).
       Sec. 405. The conference agreement includes a new section 
     that conforms the enrollment count of the District of 
     Columbia charter schools with existing District of Columbia 
     law.
       Sec. 406. The conference agreement amends H.R. 4942 by 
     repealing the District of Columbia Appropriations Act, 2001, 
     as contained therein. Since this appropriations Act has 
     already been enacted in H.R. 5633 (Public Law 106-428) 
     including it in H.R. 4942 is no longer necessary.

                               CHAPTER 5

                      ENERGY AND WATER DEVELOPMENT

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil


                         General Investigations

       The conference agreement includes an additional $900,000 
     for General Investigations. Of the funds provided, $100,000 
     is for a reconnaissance study of shore protection needs at 
     North Topsail Beach, North Carolina;

[[Page 26885]]

     $100,000 is for a reconnaissance study for a water 
     infrastructure project in Passaic County, New Jersey; 
     $100,000 is for a reconnaissance study of flooding, drainage, 
     and other related problems in the Cayuga Creek Watershed, New 
     York; and $600,000 is for a cost-shared feasibility study of 
     the restoration of the lower St. Anthony's Falls natural 
     rapids in Minnesota.


                         Construction, General

       The conference agreement includes an additional $2,750,000 
     for Construction, General. Of the funds provided, $75,000 
     shall be available for planning and design of a project to 
     provide for floodplain evacuation in the watershed of Pond 
     Creek, Kentucky; $100,000 shall be available for the design 
     of recreation and access features at the Louisville 
     Waterfront Park in Kentucky; $75,000 shall be available for 
     research on the eradication of Eurasian water milfoil in 
     Houghton Lake, Michigan; and $500,000 shall be available for 
     a Limited Reevaluation Report for the Central Boca Raton 
     segment of the Palm Beach County, Florida, shore protection 
     project. The conferees are concerned that the utter lack of 
     sand on some stretches of beach in Boca Raton is negatively 
     impacting the local economy that is dependent on tourism. 
     Therefore, the conferees recommend that the Corps of 
     Engineers proceed as expeditiously as possible to renourish 
     the beach in Boca Raton.
       In addition, $2,000,000 of the funds provided shall be 
     available to initiate design and construction of the Hawaii 
     Water Management Project, including Waiahole Ditch on Oahu, 
     Kau Ditch on Maui, Pioneer Mill Ditch on Hawaii, and the 
     complex system on the west side of Kauai.
       In addition, language has been included which provides that 
     the Secretary of the Army may use up to $5,000,000 of 
     previously appropriated funds to carry out the Abandoned and 
     Inactive Noncoal Mine Restoration program authorized by 
     section 560 of Public Law 106-53.


 Flood Control, Mississippi River and Tributaries, Arkansas, Illinois, 
       Kentucky, Louisiana, Mississippi, Missouri, and Tennessee

       The conference agreement includes an additional $3,500,000 
     for Flood Control, Mississippi River and Tributaries to be 
     used for the repair, restoration or maintenance of 
     Mississippi River levees and for the correction of 
     deficiencies in the mainline Mississippi River levees.

                       DEPARTMENT OF THE INTERIOR

                         Bureau of Reclamation


                      Water and Related Resources

       The conference agreement includes an additional $2,000,000 
     for Water and Related Resources for construction of the Mid-
     Dakota Rural Water System project in South Dakota.

                          DEPARTMENT OF ENERGY

                            Energy Programs


                             Energy Supply

       The conference agreement includes an additional $800,000 
     for Energy Supply for the Prime, LLC, of central South 
     Dakota, for final engineering and project development of the 
     integrated ethanol complex, including an ethanol unit, waste 
     treatment system, and enclosed cattle feed lot.


                                Science

       The conference agreement includes an additional $1,000,000 
     for Science for high temperature superconducting research and 
     development at Boston College.

                               CHATPER 6

                    General Provisions--This Chapter

       Sec. 601. The conference agreement mandates that not less 
     than $1,350,000 from funds appropriated under this heading in 
     the Foreign Operations, Export Financing, and Related 
     Programs Appropriations Act, 2001, shall be available only 
     for the Protection Project to continue its study of 
     international trafficking, prostitution, slavery, debt 
     bondage and other abuses of women and children.
       Sec. 602. Embassy Compensation Authority.--The conference 
     agreement contains language that authorizes the use of funds 
     appropriated to the account ``Economic Support Fund'' in 
     Public Law 106-429 for payment to the government of the 
     People's Republic of China for property loss and damage 
     arising out of the May 7, 1999 incident in Belgrade, Federal 
     Republic of Yugoslavia. These funds may be made available 
     notwithstanding any other provision of law.

                               CHAPTER 7

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management


                            Land Acquisition

       The conference agreement provides $5,000,000 for land 
     exchanges authorized by Title VI of the Steens Mountain 
     Cooperative Management and Protection Act.

                United States Fish and Wildlife Service


                          resource management

       The conference agreement provides $500,000 for a grant to 
     the Center for Reproductive Biology at Washington State 
     University for basic research on reproduction abnormalities 
     that could be causing reductions in salmon in the Columbia/
     Snake River system due to presence of high estrogen levels in 
     the water. The research may also be beneficial to human 
     health conditions affected by the same water borne chemicals.


                multinational species conservation fund

       The conference agreement provides $750,000 for recently 
     authorized Great Ape conservation activities.

                         National Park Service


                 operation of the national park system

       The conference agreement provides $100,000 for the National 
     Capital Region to complete a feasibility study and select a 
     preferred alternative site for constructing a boathouse in 
     Arlington County, Virginia.
       The Department of Justice, in cooperation with the City of 
     Alexandria and the National Park Service, is encouraged to 
     seek expeditious settlement with the remaining six landowners 
     on the Alexandria, Virginia waterfront to achieve the urban 
     land use and design objectives of the city and the National 
     Park Service in bringing this longstanding lawsuit to 
     resolution. In settling these claims, the Justice Department 
     should use, to the extent authorized by law, the permanent 
     judgment appropriation established pursuant to 31 U.S.C. 1304 
     as the source of any compensation to the landowners that may 
     be required.


                  national recreation and preservation

       The conference agreement provides $1,600,000 for National 
     Recreation and Preservation. Within the statutory aid 
     account, $500,000 is specifically for continued activities at 
     the National Constitution Center in Philadelphia, 
     Pennsylvania. The remaining $1,100,000 is for a grant to the 
     Historic New Bridge Landing Park Commission for acquisition 
     of land immediately adjacent to the Historic New Bridge 
     Landing, which is a site listed on the National Register of 
     Historic Places and is a site of historic significance in the 
     revolutionary war.


                       historic preservation fund

       The conference agreement provides $100,000 to be provided 
     to the Massillon Heritage Foundation, Inc. in Massillon, 
     Ohio. The Secretary is directed to provide this grant as soon 
     as possible for critical repair and replacement needs.


                              construction

       The conference agreement provides $3,500,000 for 
     construction. Within that amount $1,500,000 is for 
     reconstruction and renovation at the Stones River National 
     Battlefield and $2,000,000 is for the Millennium Cultural 
     Cooperative Park in Ohio.

                          Department of Energy


                          energy conservation

       The conference agreement provides $300,000 for a grant to 
     the Oak Ridge National Laboratory/Nevada Test Site 
     Development Corporation. These funds will be used to develop 
     cooling, refrigeration, and thermal energy management 
     equipment capable of using natural gas or hydrogen fuels, and 
     to improve the reliability of heat-activated cooling, 
     refrigeration, and thermal energy management equipment used 
     in combined heating, cooling, and power applications.

                             RELATED AGENCY

            Woodrow Wilson International Center for Scholars


                       payment to endowment fund

       The conference agreement provides $5,000,000 for the 
     endowment fund of the Woodrow Wilson International Center for 
     Scholars.

                    General Provision--This Chapter

       Section 701 appropriates $30 million to the Indian Health 
     Service, of which $15 million is for Alaska Native alcohol 
     control and sobriety programs and $15 million is for drug and 
     alcohol prevention and treatment for non-Alaska tribes.

                               CHAPTER 8

                    General Provisions--This Chapter

       The conference agreement provides funding to the Health 
     Resources and Services Administration in the Department of 
     Health and Human Services, for the construction of the 
     Christian Nurses Hospice in Brentwood, New York ($400,000).
       The conference agreement provides funding to the Institute 
     of Museum and Library Services, for expansion of the marine 
     biology program at the Long Island Maritime Museum 
     ($250,000).

                               CHAPTER 9

                           LEGISLATIVE BRANCH

                        CONGRESSIONAL OPERATIONS

                        House of Representatives


     payments to widows and heirs of decreased members of congress

       The conference agreement includes the traditional death 
     gratuity for the widow of Herbert H. Bateman, late a 
     Representative from the State of Virginia, the widow of Bruce 
     F. Vento, late a Representative from the State of Minnesota, 
     and the widow of Julian C. Dixon, late a Representative from 
     the State of California.

                        Archtect of the Capitol

                     Capitol Buildings and Grounds


                         salaries and expenses

       An amount of $1,033,000 is provided to construct an 
     emergency egress stair from the fourth floor of the Capitol. 
     These funds are designated as an emergency requirement.

[[Page 26886]]



                          Library of Congress


                         salaries and expenses

       The agreement provides $100,000,000 to the Library of 
     Congress to establish a national digital information 
     infrastructure and preservation program. Of this amount, 
     $25,000,000 is provided immediately and remains available 
     until expended. An additional amount up to $75,000,000 is 
     provided to match dollar-for-dollar any non-federal 
     contributions to this program, including in-kind 
     contributions, that are received before March 31, 2003. The 
     information and technology industry that has created this new 
     medium should be a contributing partner in addressing digital 
     access and preservation issues inherent in the new digital 
     information environment. This program is a major undertaking 
     to develop standards and a nationwide collecting strategy to 
     build a national repository of digital materials.
       The Library is directed to develop a phased implementation 
     plan for this program jointly with Federal entities with 
     expertise in telecommunications technology and electronic 
     commerce policy and with participation of other Federal and 
     non-Federal entities. After consultation with the Joint 
     Committee on the Library, membership of which is changed to 
     include the chair of the Legislative Subcommittee of the 
     Committee on Appropriations of the House of Representatives, 
     the Library shall seek approval of the program plan from the 
     Committee on House Administration, the Committee on Rules and 
     Administration of the Senate, and the Committees on 
     Appropriations of the House of Representatives and the 
     Senate. The Library of Congress is authorized to expend up to 
     $5,000,000, before approval of the plan, for the development 
     of the plan and for collecting or preserving digital 
     information that may otherwise vanish during the plan 
     development and approval cycle.
       The overall plan should set forth a strategy for the 
     Library of Congress, in collaboration with other Federal and 
     non-Federal entities, to identify a national network of 
     libraries and other organizations with responsibilities for 
     collecting digital materials that will provide access to and 
     maintain those materials. In addition to developing this 
     strategy, the plan shall set forth, in concert with the 
     Copyright Office, the policies, protocols, and strategies for 
     the long-term preservation of such materials, including the 
     technological infrastructure required at the Library of 
     Congress. In developing the plan, the Library should be 
     mindful of the conclusions drawn in a recent National Academy 
     of Sciences report concerning the Library's trend toward 
     insularity and isolation from its clients and peers in the 
     transition toward digital content.

                    General Provisions--This Chapter

       The conference agreement includes a section concerning the 
     Civil Service Retirement System and the Federal Employees 
     Retirement System. Under current law, certain service as an 
     employee of a congressional campaign committee performed 
     before December 12, 1980 is creditable under the Civil 
     Service Retirement System (CSRS), provided that the applicant 
     makes the required employee contributions to the Civil 
     Service Retirement and Disability Fund. The conference report 
     extends the date of eligible service to December 31, 1990 and 
     allows service that began after 1983 to be creditable under 
     the Federal Employees Retirement System (FERS). The provision 
     also permits an employee of a legislative service 
     organization of the House of Representatives to have such 
     service credited under CSRS or FERS (as applicable), upon 
     payment of the required employee contributions to the 
     retirement fund.
       The conference agreement amends, at the request of the 
     managers on the part of the Senate, the amount provided for 
     Senate ``miscellaneous items'' in the 2001 Legislative Branch 
     Appropriations Act by striking ``$8,655,000'' and inserting 
     ``$25,155,000''. The managers on the part of the House have 
     receded to the request of the Senate.
       The conferees have included a new provision relating to the 
     application of Senate procedure to conference reports.

                               CHAPTER 10

              DEPARTMENT OF DEFENSE--MILITARY CONSTRUCTION

       The conferees provide a total of $443,500,000 to the 
     Department of Defense for Planning and Design, Military 
     Construction, and Family Housing. These amounts are provided 
     as follows:


        Account/location/facility                                Amount
Military Construction, Army:
  Planning and Design for Efficient Basing in Europe........$25,000,000
  Presido of Monterey: Information Management Computer Center.2,000,000
Military Construction, Air Force: MacDill AFB, Florida: Runway 
  Improvements...............................................12,000,000
Military Construction, Army National Guard:
  Helena, Montana: Fixed Wing Parking Apron...................3,000,000
  Fort Lewis, Washington: Planning and Design for 66th Aviation Brigade 
    Readiness Center..........................................1,500,000
                                                       ________________
                                                       
    Total....................................................43,500,000


                             land transfers

       The conferees include two provisions, sections 1002 and 
     1003 which direct the Department of Interior to transfer, 
     without consideration, parcels of public domain land to the 
     Department of the Army and the Department of the Air Force. 
     Section 1003 transfers land surrounding the Yakima Training 
     Center in Washington to the Department of the Army, and 
     section transfers land located near Cannon AFB in New Mexico 
     to the Department of the Air Force. Both transfers will 
     facilitate military training exercises.

                               CHAPTER 11

                      DEPARTMENT OF TRANSPORTATION

                    General Provisions--This Chapter

       The conference agreement includes a provision that 
     clarifies that the Dulles corridor project shall include a 
     rail extension from the West Falls Church, Virginia metrorail 
     station to Tysons Corner, Virginia.
       The conference agreement includes a provision that amends 
     item 630 of section 1602 of Public Law 105-178 regarding a 
     highway project in Buffalo, New York.
       The conference agreement directs the Secretary of 
     Transportation to credit the State of Arkansas with the fair 
     market value of land in Fort Chaffee, Arkansas, incorporated 
     as right of way on the U.S. 71 relocation project, for the 
     state share of the relocation project.
       The conference agreement includes an appropriation of 
     $2,500,000 from the airport and airway trust fund for various 
     airport improvements at the Huntsville International Airport 
     in Alabama.
       The conference agreement includes an appropriation of 
     $1,000,000 from the mass transit account of the highway trust 
     fund for the Southeast Corridor light rail project in Dallas, 
     Texas.
       The conference agreement includes a provision that would 
     designate the Ports-to-Plains corridor within the State of 
     Texas if the Texas Transportation Commission does not 
     designate that corridor within the State of Texas by June 30, 
     2001. The Federal Highway Administration is expected to 
     submit to the House and Senate Committees on Appropriations, 
     the Senate Environment and Public Works Committee, and the 
     House Transportation and Infrastructure Committee a 
     recommendation for the remaining elements of the Ports-to-
     Plains corridor by September 30, 2001 should the states of 
     New Mexico, Colorado, Oklahoma and Texas not reach a unified 
     consensus on the designation of the Ports-to-Plains corridor 
     from Dumas, Texas to Denver, Colorado. The Federal Highway 
     Administration's recommendation shall also include the basis 
     for its recommendation.
       The conference agreement includes an appropriation of 
     $3,000,000 from the mass transit account of the highway trust 
     fund for the Newark-Elizabeth rail link project in New 
     Jersey.
       The conference agreement includes a provision that waives 
     the requirements of section 5309(m)(3)(C) of title 49, United 
     States Code, for the capital investment grants made available 
     in the Department of Transportation and Related Agencies 
     Appropriations Act, 2001 (Public Law 106-346). The provision 
     also makes eligible for highway bridge replacement and 
     rehabilitation program funds in fiscal year 2001 those 
     projects specified in House report 106-940, the conference 
     report accompanying the Department of Transportation and 
     Related Agencies Appropriations Act, 2001 (Public Law 106-
     346). The provision also amends section 378 of the Department 
     of Transportation and Related Agencies Appropriations Act, 
     2001 by inserting after ``U.S. 101'' the following: ``and 
     Interstate 5 Trade Corridor''.
       The conference agreement includes an appropriation of 
     $4,000,000 from the highway trust fund for commercial remote 
     sensing products and spatial information technologies 
     authorized in section 5113 of Public Law 105-178, as amended.
       The conference agreement includes a provision that permits 
     Amtrak to continue leasing vehicles from the General Services 
     Administration's interagency fleet management system in 
     fiscal year 2001 and for each fiscal year thereafter that 
     Amtrak continues to receive a federal operating grant.
       The conference agreement includes a provision which 
     clarifies financial and project management authority for a 
     project funded in the Department of Transportation and 
     Related Agencies Appropriations Act, 2001. The agreement 
     requires the Secretary of Transportation to transfer to the 
     City of Oshkosh, Wisconsin the $575,000 previously 
     appropriated for removal of the Fox River Bridge, and to 
     assume no management responsibility for this project.
       The conference agreement includes a provision authorizing 
     the Secretary of Transportation to issue a certificate of 
     documentation with endorsement for employment in the 
     coastwise trade for the M/V Wells Gray and the Annandale.
       The conference agreement includes a provision authorizing 
     the Administrator of the General Services Administration to 
     convey Coast Guard property in Middletown, California to Lake 
     County, California.

[[Page 26887]]

       The conference agreement includes a provision authorizing 
     the Administrator of the General Services Administration or 
     the Commandant of the U.S. Coast Guard to convey to the Town 
     of Nantucket, Massachusetts part of U.S. Coast Guard LORAN 
     Station Nantucket and additional land located in Nantucket.
       The conference agreement includes a provision authorizing 
     the Administrator of the General Services Administration or 
     the Commandant of the U.S. Coast Guard to convey to the City 
     of Newburyport, Massachusetts the Plum Island Boat House and 
     the Plum Island Lighthouse, located in Essex County, 
     Massachusetts.
       The conference agreement includes a provision authorizing 
     the Administrator of General Services Administration to 
     transfer to the National Oceanic and Atmospheric 
     Administration the property known as Coast Guard Station 
     Scituate in Massachusetts, contingent upon the relocation of 
     Coast Guard Station Scituate to a suitable site.
       The conference agreement includes a provision which extends 
     from 2002 to 2004 the Coast Guard's current practice relating 
     to the disposal of dry bulk cargo residue on the Great Lakes; 
     requires a study on the effectiveness of the current 
     practice; and authorizes the promulgation of regulations to 
     regulate incidental discharges of such cargo into the Great 
     Lakes, taking into account the findings of the study required 
     in this section.
       The conference agreement includes a provision that amends 
     the appointment process and qualifications for individuals 
     serving on the Great Lakes Pilotage Advisory Committee.
       The conference agreement includes a provision that requires 
     only a vessel of the United States may perform certain 
     specified escort operations and towing assistance, except for 
     a vessel in distress.
       The conference agreement includes a provision authorizing 
     the expenditure of $100,000 in fiscal year 2001 funding for 
     Coast Guard environmental compliance and restoration to 
     reimburse the owner of the former Coast Guard lighthouse 
     facility in Cape May, New Jersey for costs incurred for 
     cleanup of lead contaminated soil. The Department of 
     Transportation and Related Agencies Appropriations Act, 2001 
     included $100,000 for this purpose.
       The conference agreement includes an appropriation of 
     $2,400,000 to be derived from the Highway Trust Fund, for the 
     planning, development and construction of rural farm-to-
     market roads in Tulare County, California. The non-federal 
     share of such improvements shall be 20 percent.
       The Department of Transportation is instructed that the 
     grantee for the Nashua, New Hampshire project identified in 
     section 378 of Public Law 106-346 shall be the City of 
     Nashua, New Hampshire.
       The conference agreement includes a provision authorizing 
     the Coast Guard to transfer not to exceed $200,000 to the 
     Traverse City Area Public School District for the demolition 
     and removal of Building 402 at former Coast Guard property in 
     Traverse City, Michigan. The provision makes the transfer 
     contingent upon receipt by the Coast Guard of a detailed, 
     fixed price estimate for this work. Funding in the amount of 
     $200,000 was appropriated for this purpose in the Department 
     of Transportation and Related Agencies Appropriations Act, 
     2001.
       The conference agreement includes an appropriation of 
     $500,000 from the mass transit account of the highway trust 
     fund for buses and bus facilities at Alabama A&M University. 
     These funds are to be available until expended.
       The conference agreement includes a provision which directs 
     the Federal Transit Administration to distribute $7,047,502 
     to an urbanized area over 200,000 in population which did not 
     receive fiscal year 1999, 2000 and 2001 fixed guideway 
     modernization funds to which it was lawfully entitled, prior 
     to the formula apportionment of ``Fixed guideway 
     modernization'' funds in fiscal year 2002.
       The conference agreement includes a provision that requires 
     that airport improvement program formula changes provided 
     under Public Law 106-181 and defined in section 104 of that 
     Act shall be applied without regard to the overall funding 
     levels for the airport improvement program in fiscal year 
     2001.
       The conference agreement includes a provision that amends 
     item number 473 contained in section 1602 of the 
     Transportation Equity Act for the 21st Century relating to a 
     high priority project in Minnesota.
       The conference agreement includes a provision that delays 
     the issuance of the final train horn rule until July 1, 2001. 
     This issue will not be addressed again in subsequent 
     legislation.
       The conference agreement provides $8,700,000 for four 
     transportation projects in Texas, Minnesota, Wisconsin, 
     Indiana and Colorado.

                               CHAPTER 12

                    GENERAL SERVICES ADMINISTRATION

                        Real Property Activities


                         federal buildings fund

       The conference agreement includes a new provision providing 
     $2,070,000 for the renovation and redevelopment of portions 
     of the historic Federal building in Terre Haute, Indiana. The 
     conferees direct the General Services Administration to 
     report to the Committees on Appropriations by March 15, 2001 
     on steps it will take to ensure long-term Federal occupancy 
     of this building.

                       DEPARTMENT OF THE TREASURY

                     United States Customs Service


 operations, maintenance and procurement, air and marine interdiction 
                                programs

       The conference agreement includes $7,000,000 for necessary 
     expenses related to the procurement of two aircraft and 
     related equipment expenses at the Customs National Aviation 
     Center in Oklahoma City, Oklahoma. The conference agreement 
     provides that none of the funds shall be available for 
     obligation until an expenditure plan is submitted for 
     approval to the Committees on Appropriations.

                      UNITED STATES POSTAL SERVICE


                        tinton falls, new jersey

       The conferees are aware that the Postal Service has 
     identified Tinton Falls, New Jersey as a town to receive a 
     new postal facility, but are concerned that this need for a 
     new postal facility is not being addressed in a timely 
     manner. The conferees urge the Postal Service to give this 
     project a high priority in its capital facility plan for the 
     next fiscal year.

                               CHAPTER 13

                     DEPARTMENT OF VETERANS AFFAIRS

                      Departmental Administration


                      construction, minor projects

       The conferees have included $8,840,000 for Construction, 
     minor projects. Of this amount, $8,440,000 is recommended for 
     projects related to the integration of facilities at the 
     Boston VA Medical Center. These funds are to supplement 
     amounts previously provided for minor construction projects 
     in fiscal year 2001 in Veterans Integrated Service Network 1.
       In addition, the conferees recommend $400,000 to be used 
     towards construction costs of a cover for the Riverside 
     National Cemetery amphitheater.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                   Community Planning and Development


                empowerment zones/enterprise communities

       Provides an additional $110,000,000 for urban empowerment 
     zones, as authorized by the Taxpayer Relief Act of 1997.


                       community development fund

       Language is included which makes a technical amendment to 
     an economic development initiative grant provided in Public 
     Law 106-377.
       Language is included which transfers unobligated grant 
     funds from a specific city to a county in order to carry out 
     the purposes for which the grant was made.
       The conferees have amended Public Law 106-377 to provide an 
     additional $66,128,000 for targeted Economic Development 
     Initiative grants under the terms and conditions as provided 
     in Public Law 106-377, as follows:
       --$425,000 for Project Home, Allied-Dunn's Marsh 
     Neighborhood Center and Prairie Crossing low income housing 
     rehabilitation project in Wisconsin;
       --$1,000,000 for F.E.A.T. for the establishment of the 
     Merle Travis Park in Muhlenberg County, Kentucky;
       --$750,000 for the Washington County Commission for the 
     World Wildlife Educational Museum addition to the Dixie 
     Chapter in St. George, Utah;
       --$250,000 for the Henry Ford Museum--Greefield Village in 
     Dearborn, Michigan for expenses related to the design, 
     planning and construction of the ``Great American Road 
     Exhibit'';
       --$6,000,000 for Shepherd College in Shepherdstown, West 
     Virginia for construction, related activities, and programs 
     at the Scarborough Library;
       --$633,000 for the State of Nevada to establish a state-
     wide computer database of utilities and infrastructure needs 
     for rural communities and Indian reservations;
       --$850,000 for the University of South Carolina for the 
     operation of an historical archive at the University of South 
     Carolina, Department of Archives, South Carolina;
       --$500,000 for the Idaho City Parks and Recreation 
     Commission for the Idaho City Mien Tailings Site Restoration 
     Project and Park in Idaho City, Idaho;
       --$250,000 for the Swiss Center of North America, New 
     Glarus, Wisconsin;
       --$750,000 for the City of Madison, Wisconsin for the Troy 
     Housing and Gardens Development;
       --$750,000 for the City of New Loft, Wisconsin for 
     acquisition and restoration of a teen facility;
       --$2,000,000 for the City of Pasadena, Texas for a Police 
     Academy driver training track;
       --$1,300,000 for the City of Baytown, Texas for its 
     Emergency Operations Center;
       --$750,000 for the City of Las Vegas, Nevada for downtown 
     development initiatives;
       --$800,000 to support the Innovative Brownfields Site 
     Assessment and Remediation Technology Demonstration at the 
     Defense Fuel Support Point, in Lynn Haven, Florida;
       --$200,000 for the Tri-County Agricultural Complex in 
     Calhoun, Gulf, and Liberty Counties, Florida

[[Page 26888]]

       --$100,000 for the CCTV Central Coast partnership 
     (California) to promote environmentally friendly, sustainable 
     agriculture practices;
       --$600,000 for the Central California Coast Research 
     Partnership;
       --$500,000 for the Santa Barbara County, California Water 
     Agency for costs associated with emergency sediment removal 
     in the Twitchell Reservoir;
       --$500,000 for the City of Paso Robles, California for the 
     Oak Parks Housing Project for modernization and 
     rehabilitation projects;
       --$100,000 for the Cambridge, Massachusetts Redevelopment 
     Authority public spaces initiative;
       --$1,000,000 for the Sidney R. Yates and Addie Yates 
     Exhibition Center at the Field Museum in Chicago, Illinois;
       --$750,000 for the Greater Dwight Development Corporation 
     in New Haven, Connecticut for its child care center and 
     offices;
       --$500,000 for methamphetamine site clean-up activities of 
     the Fresno, California Sheriff's Department;
       --$3,000,000 to the Cross Valley Rail Corridor Joint Powers 
     Authority, California for rehabilitation of the San Joaquin 
     Railroad;
       --$1,000,000 to the City of Monterrey, California to 
     upgrade 911 emergency response services;
       --$2,035,000 for Eastern Connecticut University for upgrade 
     of its technology systems;
       --$500,000 for the City of Vernon, Connecticut for 
     brownfields remediation activities;
       --$1,000,000 for the Mystic Seaport Maritime Education and 
     Research Center in Mystic, Connecticut;
       --$2,700,000 for the Southeastern Pennsylvania Consortium 
     on Higher Education for a collaborative Math and Science 
     Institute;
       --$900,000 for the Town of Towamencin, Pennsylvania for its 
     urban park and recreation recovery project;
       --$1,400,000 for Temple University, Pennsylvania for its 
     Center for a Sustainable Environment;
       --$600,000 for the Township of Plainsboro, New Jersey for 
     its Nature and Education Center;
       --$300,000 for the Saint Mary's County, Maryland River 
     Project;
       --$450,000 for the Truitt Laboratory of the Chesapeake 
     Biological Laboratory for the Bayscapes Habitat 
     Reconstruction Project, Maryland;
       --$800,000 for the Edmonds Community College Foundation, 
     Washington for a Center on Families;
       --$400,000 for the Access Community Health Network in 
     Chicago, Illinois;
       --$500,000 for the City of Seymour, Connecticut Police 
     Department for upgrades of law enforcement technology;
       --$2,500,000 for the Town of Beacon Falls, Connecticut for 
     the Pinebridge Industrial Park;
       --$150,000 for the City of Sacramento, California for the 
     Emerging Technology Institute;
       --$200,000 for the Kansas City, Kansas foresics crime 
     laboratory;
       --$700,000 for the Kansas City, Kansas Humane Society for 
     expenses associated with relocation of its facilities;
       --$350,000 for the expansion of the Dunbar Community Center 
     in Springfield, Massachusetts;
       --$500,000 to the West Virginia High Technology Consortium 
     Foundation, Inc. for high priority economic development 
     initiatives including land acquisition;
       --$1,000,000 for the Medford Area School District, 
     Wisconsin for after-school programs;
       --$300,000 for the North Central Wisconsin Workforce 
     Development Board for education, training, counseling, 
     emergency assistance and related services for displaced 
     workers and their families in central Wisconsin;
       --$250,000 for the Portage County, Wisconsin Business 
     Council Foundation in Stevens Point for activities including 
     construction and training related to a business education and 
     training center and a regional training clearinghouse;
       --$200,000 for the Development Association of Superior/
     Douglas Counties, Wisconsin for a microenterprise loan and 
     technical assistance fund;
       --$500,000 for the Chippewa County Economic Corporation in 
     Wisconsin for construction of a workforce development center;
       --$365,000 for the City of Wausau, Wisconsin for 
     brownfields remediation in Marathon County;
       --$1,000,000 for the Unity School District, Balsam Lake, 
     Wisconsin for after-school activities;
       --$100,000 for the Marathon County, Wisconsin Sheriff's 
     Department for Central Wisconsin drug prevention initiatives;
       --$500,000 for the Santa Ana, California Police Department 
     crime analysis unit;
       --$1,300,000 for the City of Jackson, Mississippi for its 
     brownfields clean-up activities;
       --$500,000 for Essex County, Massachusetts for its 
     wastewater and combined sewer overflow program;
       --$500,000 for Pacific Union College, California for the 
     Napa Valley Resource in Napa County, California
       --$400,000 for the establishment of the Wolfe Center for 
     teen substance abuse in Napa County, California;
       --$500,000 for Dyer, Indiana for a water diversion project;
       --$500,000 for the Community and Family Resource Center 
     renovation project in Newberg, Oregon;
       --$2,000,000 for the George Meany Center for Labor Studies 
     in Silver Spring, Maryland;
       --$1,000,000 for the Rhode Island State Police for 
     technology upgrade initiatives;
       --$2,000,000 for the War Memorial Museum in Milwaukee, 
     Wisconsin;
       --$500,000 for the Mott Community College Workforce 
     Development Institute in Michigan;
       --$1,000,000 for Maricopa County Community College for the 
     Achieving a College Education Initiative (ACE) in Arizona;
       --$1,000,000 to Coffee County, Tennessee for the Coffee 
     County Industrial Park;
       --$1,500,000 to the Tennessee Fire Services and Codes 
     Enforcement Academy in Bedford County, Tennessee;
       --$600,000 to the 21st Century Council of Lawrence for the 
     Lawrence County Industrial Park in Tennessee;
       --$350,000 to the Fayetteville-Lincoln County Library Board 
     in Tennessee for the Lincoln County Library;
       --$150,000 to the University of Tennessee Center for 
     Business and Economic Research to study the economic impact 
     of alternative management policies of TVA-managed lakes in 
     rural East Tennessee;
       --$2,500,000 to Winston-Salem University in Winston-Salem, 
     North Carolina for the reconstruction of St. Phillips Church 
     ($2,000,000) and Atkins House ($500,000);
       --$1,575,000 to Escambia County in Florida for development 
     costs for infrastructure of Central Commerce Park;
       --$1,000,000 to Ashland University in Ashland, Ohio for 
     rehabilitation and expansion of the Kettering Science Center;
       --$640,000 to Waukegan, Illinois for renovation of the 
     historic Genesee Theater;
       --$1,155,000 to the Tampa Housing Authority in Tampa, 
     Florida for costs associated with the Tom Dyer Elderly 
     Housing Redevelopment Project.

                       DEPARTMENT OF THE TREASURY

              Community Development Financial Institutions


   community development financial institutions fund program account

       Increases the cap on administrative expenses by $1,000,000, 
     in order to accommodate increased responsibilities assigned 
     to the Fund by the New Markets Initiative. The conferees 
     direct the CDFI Fund to submit a report to the Committees on 
     Appropriations within 60 days of enactment describing plans 
     for carrying out these responsibilities, including staffing 
     and resource requirements. The conferees would consider 
     supplemental appropriations for this purpose if CDFI 
     demonstrates that additional funds are needed.

                    Environmental Protection Agency


                         science and technology

       Language is included which provides $1,000,000 in 
     additional appropriations for the continuation of the South 
     Bronx Air Pollution Study being conducted by New York 
     University.


                 environmental programs and management

       Language is included which makes a technical correction to 
     a grant provided to the San Bernardino Valley Municipal Water 
     District in Public Law 106-377.


                   state and tribal assistance grants

       Language is included which clarifies that funds 
     appropriated for infrastructure needs in the New York City 
     watershed shall be awarded under section 1443(d) of the Safe 
     Drinking Water Act, as amended.
       Language is included which makes funds appropriated in 
     Public Law 106-377 for a specific project in Indiana 
     available for an alternative project.
       The conferees have amended Public Law 106-377 to include an 
     additional $20,630,000 to communities or other entities for 
     construction of water and wastewater treatment facilities. 
     Cost share requirements and all other terms and conditions 
     provided in Public Law 106-377 for these grants shall also 
     apply to these grants, distributed as follows:
       1. $1,000,000 for combined sewer overflow infrastructure 
     improvements on the Connecticut River.
       2. $7,280,000 to Grand Rapids, Michigan for combined sewer 
     overflow infrastructure improvements.
       3. $3,000,000 for water delivery system infrastructure 
     improvements for the cities of Arcadia and Sierra Madre, 
     California.
       4. $7,850,000 for wastewater facility, drinking water, and 
     water system delivery infrastructure improvements in Milton 
     Township ($5,000,000), the Village of McDonald ($350,000), 
     and the Village of Wellsville ($2,500,000), Ohio.
       5. $1,000,000 for wastewater treatment infrastructure 
     improvements in Carmel, Indiana.

                  Federal Emergency Management Agency


              emergency management planning and assistance

       Language is included which provides $100,000,000 for new 
     fire fighting programs as authorized by the Federal Fire 
     Prevention and Control Act, as amended.

[[Page 26889]]



                               CHAPTER 14

                    General Provisions--This Chapter

       The conference agreement includes the adoption of H. Con. 
     Res. 234 by the Senate.
       The conference agreement includes a new provision relating 
     to the application of the Federal Reports Elimination and 
     Sunset Act of 1995 to certain reports.
       The conferees direct the Comptroller General of the United 
     States to (1) ascertain the ownership of the West Campus 
     Buildings of the Saint Elizabeth's Hospital complex in the 
     District of Columbia; (2) review and comment on existing cost 
     estimates for mothballing/stabilization, phase II 
     environmental mediation, phase II archaeological study, 
     environmental impact study, and land use study; (3) report on 
     any existing historic designations and corresponding 
     responsibilities; and (4) identify action required to 
     facilitate transfer of the property. The conferees request 
     that the report be completed and submitted to the House and 
     Senate Committees on Appropriations within 45 days of the 
     enactment of this Act.
       The conference agreement includes a new provisions 
     rescinding 0.22 percent of the discretionary budget authority 
     provided (or obligation limit imposed) for fiscal year 2001, 
     except for those programs, projects, and activities which are 
     specifically exempted. The provision exempts from rescission 
     the Military Personnel accounts of the of the Department of 
     Defense Appropriations Act, 2001, and fiscal year 2001 
     amounts for activities funded in the Departments of Labor, 
     Health and Human Services, and Education, and Related 
     Agencies Appropriations Act.

                               DIVISION B

                                TITLE I

       The conference agreement includes a section that provides 
     greater availability of food assistance in day care centers 
     by modifying eligibility criteria in the Child and Adult Care 
     Food Program.
       The conference agreement includes a section to authorize a 
     pilot program through the Summer Food Service Program to 
     examine whether reducing burdensome paperwork would increase 
     the availability of food assistance for children during the 
     summer who, during the school year, have access to meals 
     through the School Lunch Program.
       The conference agreement includes language which authorizes 
     the Secretary of the Interior to conduct a feasibility study 
     for a Sacramento River, California, diversion project.
       The conference agreement includes language which modifies 
     the authorization for the Saint Francis River Basin, Missouri 
     and Arkansas, project to expand the boundaries of the project 
     to include Ten- and Fifteen-Mile Bayous near West Memphis, 
     Arkansas.
       The conference agreement includes language which authorizes 
     the Secretary of the Army to enter into an agreement to 
     permit the City of Alton, Illinois, to construct recreational 
     facilities at the Melvin Price Lock and Dam.
       The conference agreement includes language which authorizes 
     the Secretary of the Interior, in cooperation with Washoe 
     County, Nevada, to participate in the planning, design, and 
     construction of the Truckee Watershed Reclamation Project.
       The conference agreement includes language which authorizes 
     the Secretary of the Army to widen and deepen the Alafia 
     Channel in Tampa Harbor, Florida.
       The conference agreement includes language which authorizes 
     a number of environmental infrastructure projects.
       The conference agreement includes language which authorizes 
     the Secretary of the Army to provide technical and financial 
     assistance to carry out projects to improve the water quality 
     in the Florida Keys National Marine Sanctuary.
       The conference agreement includes language to provide for 
     the restoration of the San Gabriel Basin in California.
       The conference agreement includes language which authorizes 
     the Secretary of the Army to participate in studies and the 
     planning and design of projects which offer a long-term 
     solution to the problem of groundwater pollution caused by 
     perchlorates.
       The conference agreement includes language which authorizes 
     the construction of fish passage facilities at the New 
     Savannah Bluff Lock and Dam in Georgia and South Carolina.
       The conference agreement includes language which provides 
     for the extinguishment of reversionary interests and use 
     restrictions at the Port of Umatilla, Oregon.
       The conference agreement includes language which repeals 
     section 101(b)(6) of the Water Resources Development Act of 
     2000.
       The conference agreement includes language which directs 
     the Secretary of the Army to reimburse the East Bay Municipal 
     Water District for the Federal share of costs incurred by the 
     district for the Penn Mine, Calaveras County, California, 
     aquatic ecosystem restoration project.
       The conference agreement includes language which authorizes 
     the Secretary of the Army to construct intake facilities at 
     Greer Ferry Lake, Arkansas, for the benefit of Lonoke and 
     White Counties in Arkansas.
       The conference agreement includes language which authorizes 
     the Secretary of the Army to provide the non-Federal sponsor 
     of the Chehalis River and Tributaries, Washington, project 
     credit toward the non-Federal share of the cost of the 
     project for work carried out by the non-Federal sponsor 
     before the date of enactment of a project cooperation 
     agreement.
       Section 119 includes a technical correction to permit the 
     National Park Service to issue a grant to the city of Ocean 
     Beach, New York.
       Section 120 directs the National Park Service to work with 
     Fort Sumter Tours, Inc., the concessionaire at Fort Sumter 
     National Monument in South Carolina, on an amicable solution 
     to the current legal dispute. In addition, the Director shall 
     immediately extend the current contract through March 15, 
     2001, and for 180 days if the final settlement is agreed to 
     by both parties.
       Section 121 amends title VIII of the Department of the 
     Interior and Related Agencies Appropriations Act, 2001 to 
     derive funding under that title from the Land and Water 
     Conservation Fund. This reference was inadvertently omitted 
     from the original legislation.
       Section 122 amends the Energy Policy Act of 1992 to include 
     a reference to liquid fuels domestically produced from 
     natural gas.
       Section 123 incorporates by reference the text of the bill 
     H.R. 4904, as passed by the House of Representatives on 
     September 26, 2000, expressing the policy of the United 
     States regarding the U.S. relationship with Native Hawaiians. 
     The text of H.R. 4904 is as follows:
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled.

     SECTION 1. FINDINGS.

       Congress makes the following findings:
       (1) The Constitution vests Congress with the authority to 
     address the conditions of the indigenous, native people of 
     the United States.
       (2) Native Hawaiians, the native people of the Hawaiian 
     archipelago which is now part of the United States, are 
     indigenous, native people of the United States.
       (3) The United States has a special trust relationship to 
     promote the welfare of the native people of the United 
     States, including Native Hawaiians.
       (4) Under the treaty making power of the United States, 
     Congress exercised its constitutional authority to confirm a 
     treaty between the United States and the government that 
     represented the Hawaiian people, and from 1826 until 1893, 
     the United States recognized the independence of the Kingdom 
     of Hawaii, extended full diplomatic recognition to the 
     Hawaiian government, and entered into treaties and 
     conventions with the Hawaiian monarchs to govern commerce and 
     navigation in 1826, 1842, 1849, 1875, and 1887.
       (5) Pursuant to the provisions of the Hawaiian Homes 
     Commission Act, 1920 (42 Stat. 108, chapter 42), the United 
     States set aside 203,500 acres of land in the Federal 
     territory that later became the State of Hawaii to address 
     the conditions of Native Hawaiians.
       (6) By setting aside 203,500 acres of land for Native 
     Hawaiian homesteads and farms, the Act assists the Native 
     Hawaiian community in maintaining distinct native settlements 
     throughout the State of Hawaii.
       (7) Approximately 6,800 Native Hawaiian lessees and their 
     family members reside on Hawaiian Home Lands and 
     approximately 18,000 Native Hawaiians who are eligible to 
     reside on the Home Lands are on a waiting list to receive 
     assignments of land.
       (8) In 1959, as part of the compact admitting Hawaii into 
     the United States, Congress established the Ceded Lands Trust 
     for five purposes, one of which is the betterment of the 
     conditions of Native Hawaiians. Such trust consists of 
     approximately 1,800,000 acres of land, submerged lands, and 
     the revenues derived from such lands, the assets of which 
     have never been completely inventoried or segregated.
       (9) Throughout the years, Native Hawaiians have repeatedly 
     sought access to the Ceded Lands Trust and its resources and 
     revenues in order to establish and maintain native 
     settlements and distinct native communities throughout the 
     State.
       (10) The Hawaiian Home Lands and the Ceded Lands provide an 
     important foundation for the ability of the Native Hawaiian 
     community to maintain the practice of Native Hawaiian 
     culture, language, and traditions, and for the survival of 
     the Native Hawaiian people.
       (11) Native Hawaiians have maintained other distinctly 
     native areas in Hawaii.
       (12) On November 23, 1993, Public Law 103-150 (107 Stat. 
     1510) (commonly known as the Apology Resolution) was enacted 
     into law, extending an apology on behalf of the United States 
     to the Native people of Hawaii for the United States role in 
     the overthrow of the Kingdom of Hawaii.
       (13) The Apology Resolution acknowledges that the overthrow 
     of the Kingdom of Hawaii occurred with the active 
     participation of agents and citizens of the United States and 
     further acknowledges that the Native Hawaiian people never 
     directly relinquished their claims to their inherent 
     sovereignty as a people over their national lands to the 
     United States, either through their monarchy or through a 
     plebiscite or referendum.
       (14) The Apology Resolution expresses the commitment of 
     Congress and the President to acknowledge the ramifications 
     of the overthrow of the Kingdom of Hawaii and to support 
     reconciliation efforts between the United States and Native 
     Hawaiians; and to have Congress and the President, through 
     the President's designated officials, consult with Native 
     Hawaiians

[[Page 26890]]

     on the reconciliation process as called for under the Apology 
     Resolution.
       (15) Despite the overthrow of the Hawaiian government, 
     Native Hawaiians have continued to maintain their separate 
     identity as a distinct native community through the formation 
     of cultural, social, and political institutions, and to give 
     expression to their rights as native people to self-
     determination and self-governance as evidenced through their 
     participation in the Office of Hawaiian Affairs.
       (16) Native Hawaiians also maintain a distinct Native 
     Hawaiian community through the provision of governmental 
     services to Native Hawaiians, including the provision of 
     health care services, educational programs, employment and 
     training programs, children's services, conservation 
     programs, fish and wildlife protection, agricultural 
     programs, native language immersion programs and native 
     language immersion schools from kindergarten through high 
     school, as well as college and master's degree programs in 
     native language immersion instruction, and traditional 
     justice programs, and by continuing their efforts to enhance 
     Native Hawaiian self-determination and local control.
       (17) Native Hawaiians are actively engaged in Native 
     Hawaiian cultural practices, traditional agricultural 
     methods, fishing and subsistence practices, maintenance of 
     cultural use areas and sacred sites, protection of burial 
     sites, and the exercise of their traditional rights to gather 
     medicinal plants and herbs, and food sources.
       (18) The Native Hawaiian people wish to preserve, develop, 
     and transmit to future Native Hawaiian generations their 
     ancestral lands and Native Hawaiian political and cultural 
     identity in accordance with their traditions, beliefs, 
     customs and practices, language, and social and political 
     institutions, and to achieve greater self-determination over 
     their own affairs.
       (19) This Act provides for a process within the framework 
     of Federal law for the Native Hawaiian people to exercise 
     their inherent rights as a distinct aboriginal, indigenous, 
     native community to reorganize a Native Hawaiian government 
     for the purpose of giving expression to their rights as 
     native people to self-determination and self-governance.
       (20) The United States has declared that--
       (A) the United States has a special responsibility for the 
     welfare of the native peoples of the United States, including 
     Native Hawaiians;
       (B) Congress has identified Native Hawaiians as a distinct 
     indigenous group within the scope of its Indian affairs 
     power, and has enacted dozens of statutes on their behalf 
     pursuant to its recognized trust responsibility; and
       (C) Congress has also delegated broad authority to 
     administer a portion of the Federal trust responsibility to 
     the State of Hawaii.
       (21) The United States has recognized and reaffirmed the 
     special trust relationship with the Native Hawaiian people 
     through--
       (A) the enactment of the Act entitled ``An Act to provide 
     for the admission of the State of Hawaii into the Union'', 
     approved March 18, 1959 (Public Law 86-3; 73 Stat. 4) by--
       (i) ceding to the State of Hawaii title to the public lands 
     formerly held by the United States, and mandating that those 
     lands be held in public trust for five purposes, one of which 
     is for the betterment of the conditions of Native Hawaiians; 
     and
       (ii) transferring the United States responsibility for the 
     administration of the Hawaiian Home Lands to the State of 
     Hawaii, but retaining the authority to enforce the trust, 
     including the exclusive right of the United States to consent 
     to any actions affecting the lands which comprise the corpus 
     of the trust and any amendments to the Hawaiian Homes 
     Commission Act, 1920 (42 Stat. 108, chapter 42) that are 
     enacted by the legislature of the State of Hawaii affecting 
     the beneficiaries under the Act.
       (22) The United States continually has recognized and 
     reaffirmed that--
       (A) Native Hawaiians have a cultural, historic, and land-
     based link to the aboriginal, native people who exercised 
     sovereignty over the Hawaiian Islands;
       (B) Native Hawaiians have never relinquished their claims 
     to sovereignty or their sovereign lands;
       (C) the United States extends services to Native Hawaiians 
     because of their unique status as the aboriginal, native 
     people of a once sovereign nation with whom the United States 
     has a political and legal relationship; and
       (D) the special trust relationship of American Indians, 
     Alaska Natives, and Native Hawaiians to the United States 
     arises out of their status as aboriginal, indigenous, native 
     people of the United States.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Aboriginal, indigenous, native people.--The term 
     ``aboriginal, indigenous, native people'' means those people 
     whom Congress has recognized as the original inhabitants of 
     the lands and who exercised sovereignty prior to European 
     contact in the areas that later became part of the United 
     States.
       (2) Adult members.--The term ``adult members'' means those 
     Native Hawaiians who have attained the age of 18 at the time 
     the Secretary publishes the final roll, as provided in 
     section 7(a)(3) of this Act.
       (3) Apology resolution.--The term ``Apology Resolution'' 
     means Public Law 103-150 (107 Stat. 1510), a joint resolution 
     offering an apology to Native Hawaiians on behalf of the 
     United States for the participation of agents of the United 
     States in the January 17, 1893 overthrow of the Kingdom of 
     Hawaii.
       (4) Ceded lands.--The term ``ceded lands'' means those 
     lands which were ceded to the United States by the Republic 
     of Hawaii under the Joint Resolution to provide for annexing 
     the Hawaiian Islands to the United States of July 7, 1898 (30 
     Stat. 750), and which were later transferred to the State of 
     Hawaii in the Act entitled ``An Act to provide for the 
     admission of the State of Hawaii into the Union'' approved 
     March 18, 1959 (Public Law 86-3; 73 Stat. 4).
       (5) Commission.--The term ``Commission'' means the 
     commission established in section 7 of this Act to certify 
     that the adult members of the Native Hawaiian community 
     contained on the roll developed under that section meet the 
     definition of Native Hawaiian, as defined in paragraph 
     (7)(A).
       (6) Indigenous, native people.--The term ``indigenous, 
     native people'' means the lineal descendants of the 
     aboriginal, indigenous, native people of the United States.
       (7) Native hawaiian.--
       (A) Prior to the recognition by the United States of a 
     Native Hawaiian government under the authority of section 
     7(d)(2) of this Act, the term ``Native Hawaiian'' means the 
     indigenous, native people of Hawaii who are the lineal 
     descendants of the aboriginal, indigenous, native people who 
     resided in the islands that now comprise the State of Hawaii 
     on or before January 1, 1893, and who occupied and exercised 
     sovereignty in the Hawaiian archipelago, including the area 
     that now constitutes the State of Hawaii, and includes all 
     Native Hawaiians who were eligible in 1921 for the programs 
     authorized by the Hawaiian Homes Commission Act (42 Stat. 
     108, chapter 42) and their lineal descendants.
       (B) Following the recognition by the United States of the 
     Native Hawaiian government under section 7(d)(2) of this Act, 
     the term ``Native Hawaiian'' shall have the meaning given to 
     such term in the organic governing documents of the Native 
     Hawaiian government.
       (8) Native hawaiian government.--The term ``Native Hawaiian 
     government'' means the citizens of the government of the 
     Native Hawaiian people that is recognized by the United 
     States under the authority of section 7(d)(2) of this Act.
       (9) Native hawaiian interim governing council.--The term 
     ``Native Hawaiian Interim Governing Council'' means the 
     interim governing council that is organized under section 
     7(c) of this Act.
       (10) Roll.--The term ``roll'' means the roll that is 
     developed under the authority of section 7(a) of this Act.
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (12) Task force.--The term ``Task Force'' means the Native 
     Hawaiian Interagency Task Force established under the 
     authority of section 6 of this Act.

     SEC. 3. UNITED STATES POLICY AND PURPOSE.

       (a) Policy.--The United States reaffirms that--
       (1) Native Hawaiians are a unique and distinct aboriginal, 
     indigenous, native people, with whom the United States has a 
     political and legal relationship;
       (2) the United States has a special trust relationship to 
     promote the welfare of Native Hawaiians;
       (3) Congress possesses the authority under the Constitution 
     to enact legislation to address the conditions of Native 
     Hawaiians and has exercised this authority through the 
     enactment of--
       (A) the Hawaiian Homes Commission Act, 1920 (42 Stat. 108, 
     chapter 42);
       (B) the Act entitled ``An Act to provide for the admission 
     of the State of Hawaii into the Union'', approved March 18, 
     1959 (Public Law 86-3; 73 Stat. 4); and
       (C) more than 150 other Federal laws addressing the 
     conditions of Native Hawaiians;
       (4) Native Hawaiians have--
       (A) an inherent right to autonomy in their internal 
     affairs;
       (B) an inherent right of self-determination and self-
     governance;
       (C) the right to reorganize a Native Hawaiian government; 
     and
       (D) the right to become economically self-sufficient; and
       (5) the United States shall continue to engage in a process 
     of reconciliation and political relations with the Native 
     Hawaiian people.
       (b) Purpose.--It is the intent of Congress that the purpose 
     of this Act is to provide a process for the reorganization of 
     a Native Hawaiian government and for the recognition by the 
     United States of the Native Hawaiian government for purposes 
     of continuing a government-to-government relationship.

     SEC. 4. ESTABLISHMENT OF THE UNITED STATES OFFICE FOR NATIVE 
                   HAWAIIAN AFFAIRS.

       (a) In General.--There is established within the Office of 
     the Secretary the United States Office for Native Hawaiian 
     Affairs.
       (b) Duties of the Office.--The United States Office for 
     Native Hawaiian Affairs shall--
       (1) effectuate and coordinate the special trust 
     relationship between the Native Hawaiian people and the 
     United States through the Secretary, and with all other 
     Federal agencies;
       (2) upon the recognition of the Native Hawaiian government 
     by the United States as provided for in section 7(d)(2) of 
     this Act, effectuate and coordinate the special trust 
     relationship between the Native Hawaiian government and the 
     United States through the Secretary, and with all other 
     Federal agencies;
       (3) fully integrate the principle and practice of 
     meaningful, regular, and appropriate consultation with the 
     Native Hawaiian people by providing timely notice to, and 
     consulting with

[[Page 26891]]

     the Native Hawaiian people prior to taking any actions that 
     may affect traditional or current Native Hawaiian practices 
     and matters that may have the potential to significantly or 
     uniquely affect Native Hawaiian resources, rights, or lands, 
     and upon the recognition of the Native Hawaiian government as 
     provided for in section 7(d)(2) of this Act, fully integrate 
     the principle and practice of meaningful, regular, and 
     appropriate consultation with the Native Hawaiian government 
     by providing timely notice to, and consulting with the Native 
     Hawaiian people and the Native Hawaiian government prior to 
     taking any actions that may have the potential to 
     significantly affect Native Hawaiian resources, rights, or 
     lands;
       (4) consult with the Native Hawaiian Interagency Task 
     Force, other Federal agencies, and with relevant agencies of 
     the State of Hawaii on policies, practices, and proposed 
     actions affecting Native Hawaiian resources, rights, or 
     lands;
       (5) be responsible for the preparation and submittal to the 
     Committee on Indian Affairs of the Senate, the Committee on 
     Energy and Natural Resources of the Senate, and the Committee 
     on Resources of the House of Representatives of an annual 
     report detailing the activities of the Interagency Task Force 
     established under section 6 of this Act that are undertaken 
     with respect to the continuing process of reconciliation and 
     to effect meaningful consultation with the Native Hawaiian 
     people and the Native Hawaiian government and providing 
     recommendations for any necessary changes to existing Federal 
     statutes or regulations promulgated under the authority of 
     Federal law;
       (6) be responsible for continuing the process of 
     reconciliation with the Native Hawaiian people, and upon the 
     recognition of the Native Hawaiian government by the United 
     States as provided for in section 7(d)(2) of this Act, be 
     responsible for continuing the process of reconciliation with 
     the Native Hawaiian government; and
       (7) assist the Native Hawaiian people in facilitating a 
     process for self-determination, including but not limited to 
     the provision of technical assistance in the development of 
     the roll under section 7(a) of this Act, the organization of 
     the Native Hawaiian Interim Governing Council as provided for 
     in section 7(c) of this Act, and the recognition of the 
     Native Hawaiian government as provided for in section 7(d) of 
     this Act.
       (c) Authority.--The United States Office for Native 
     Hawaiian Affairs is authorized to enter into a contract with 
     or make grants for the purposes of the activities authorized 
     or addressed in section 7 of this Act for a period of 3 years 
     from the date of the enactment of this Act.

     SEC. 5. DESIGNATION OF DEPARTMENT OF JUSTICE REPRESENTATIVE.

       The Attorney General shall designate an appropriate 
     official within the Department of Justice to assist the 
     United States Office for Native Hawaiian Affairs in the 
     implementation and protection of the rights of Native 
     Hawaiians and their political, legal, and trust relationship 
     with the United States, and upon the recognition of the 
     Native Hawaiian government as provided for in section 7(d)(2) 
     of this Act, in the implementation and protection of the 
     rights of the Native Hawaiian government and its political, 
     legal, and trust relationship with the United States.

     SEC. 6. NATIVE HAWAIIAN INTERAGENCY TASK FORCE.

       (a) Establishment.--There is established an interagency 
     task force to be known as the ``Native Hawaiian Interagency 
     Task Force''.
       (b) Composition.--The Task Force shall be composed of 
     officials, to be designated by the President, from--
       (1) each Federal agency that establishes or implements 
     policies that affect Native Hawaiians or whose actions may 
     significantly or uniquely impact on Native Hawaiian 
     resources, rights, or lands;
       (2) the United States Office for Native Hawaiian Affairs 
     established under section 4 of this Act; and
       (3) the Executive Office of the President.
       (c) Lead Agencies.--The Department of the Interior and the 
     Department of Justice shall serve as the lead agencies of the 
     Task Force, and meetings of the Task Force shall be convened 
     at the request of either of the lead agencies.
       (d) Co-Chairs.--The Task Force representative of the United 
     States Office for Native Hawaiian Affairs established under 
     the authority of section 4 of this Act and the Attorney 
     General's designee under the authority of section 5 of this 
     Act shall serve as co-chairs of the Task Force.
       (e) Duties.--The responsibilities of the Task Force shall 
     be--
       (1) the coordination of Federal policies that affect Native 
     Hawaiians or actions by any agency or agencies of the Federal 
     Government which may significantly or uniquely impact on 
     Native Hawaiian resources, rights, or lands;
       (2) to assure that each Federal agency develops a policy on 
     consultation with the Native Hawaiian people, and upon 
     recognition of the Native Hawaiian government by the United 
     States as provided in section 7(d)(2) of this Act, 
     consultation with the Native Hawaiian government; and
       (3) to assure the participation of each Federal agency in 
     the development of the report to Congress authorized in 
     section 4(b)(5) of this Act.

     SEC. 7. PROCESS FOR THE DEVELOPMENT OF A ROLL FOR THE 
                   ORGANIZATION OF A NATIVE HAWAIIAN INTERIM 
                   GOVERNING COUNCIL, FOR THE ORGANIZATION OF A 
                   NATIVE HAWAIIAN INTERIM GOVERNING COUNCIL AND A 
                   NATIVE HAWAIIAN GOVERNMENT, AND FOR THE 
                   RECOGNITION OF THE NATIVE HAWAIIAN GOVERNMENT.

       (a) Roll.--
       (1) Preparation of roll.--The United States Office for 
     Native Hawaiian Affairs shall assist the adult members of the 
     Native Hawaiian community who wish to participate in the 
     reorganization of a Native Hawaiian government in preparing a 
     roll for the purpose of the organization of a Native Hawaiian 
     Interim Governing Council. The roll shall include the names 
     of the--
       (A) adult members of the Native Hawaiian community who wish 
     to become citizens of a Native Hawaiian government and who 
     are--
       (i) the lineal descendants of the aboriginal, indigenous, 
     native people who resided in the islands that now comprise 
     the State of Hawaii on or before January 1, 1893, and who 
     occupied and exercised sovereignty in the Hawaiian 
     archipelago; or
       (ii) Native Hawaiians who were eligible in 1921 for the 
     programs authorized by the Hawaiian Homes Commission Act (42 
     Stat. 108, chapter 42) or their lineal descendants; and
       (B) the children of the adult members listed on the roll 
     prepared under this subsection.
       (2) Certification and submission.--
       (A) Commission.--
       (i) In general.--There is authorized to be established a 
     Commission to be composed of nine members for the purpose of 
     certifying that the adult members of the Native Hawaiian 
     community on the roll meet the definition of Native Hawaiian, 
     as defined in section 2(7)(A) of this Act.
       (ii) Membership.--

       (I) Appointment.--The Secretary shall appoint the members 
     of the Commission in accordance with subclause (II). Any 
     vacancy on the Commission shall not affect its powers and 
     shall be filled in the same manner as the original 
     appointment.

       (II) Requirements.--The members of the Commission shall be 
     Native Hawaiian, as defined in section 2(7)(A) of this Act, 
     and shall have expertise in the certification of Native 
     Hawaiian ancestry.
       (III) Congressional submission of suggested candidates.--In 
     appointing members of the Commission, the Secretary may 
     choose such members from among--

       (aa) five suggested candidates submitted by the Majority 
     Leader of the Senate and the Minority Leader of the Senate 
     from a list of candidates provided to such leaders by the 
     Chairman and Vice Chairman of the Committee on Indian Affairs 
     of the Senate; and
       (bb) four suggested candidates submitted by the Speaker of 
     the House of Representatives and the Minority Leader of the 
     House of Representatives from a list provided to the Speaker 
     and the Minority Leader by the Chairman and Ranking member of 
     the Committee on Resources of the House of Representatives.
       (iii) Expenses.--Each member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (B) Certification.--The Commission shall certify that the 
     individuals listed on the roll developed under the authority 
     of this subsection are Native Hawaiians, as defined in 
     section 2(7)(A) of this Act.
       (3) Secretary.--
       (A) Certification.--The Secretary shall review the 
     Commission's certification of the membership roll and 
     determine whether it is consistent with applicable Federal 
     law, including the special trust relationship between the 
     United States and the indigenous, native people of the United 
     States.
       (B) Publication.--Upon making the determination authorized 
     in subparagraph (A), the Secretary shall publish a final 
     roll.
       (C) Appeal.--
       (i) Establishment of mechanism.--The Secretary is 
     authorized to establish a mechanism for an appeal of the 
     Commission's determination as it concerns--

       (I) the exclusion of the name of a person who meets the 
     definition of Native Hawaiian, as defined in section 2(7)(A) 
     of this Act, from the roll; or
       (II) a challenge to the inclusion of the name of a person 
     on the roll on the grounds that the person does not meet the 
     definition of Native Hawaiian, as so defined.

       (ii) Publication; update.--The Secretary shall publish the 
     final roll while appeals are pending, and shall update the 
     final roll and the publication of the final roll upon the 
     final disposition of any appeal.
       (D) Failure to act.--If the Secretary fails to make the 
     certification authorized in subparagraph (A) within 90 days 
     of the date that the Commission submits the membership roll 
     to the Secretary, the certification shall be deemed to have 
     been made, and the Commission shall publish the final roll.
       (4) Effect of publication.--The publication of the final 
     roll shall serve as the basis for the eligibility of adult 
     members listed on the roll to participate in all referenda 
     and elections associated with the organization of a Native 
     Hawaiian Interim Governing Council and the Native Hawaiian 
     government.
       (b) Recognition of Rights.--The right of the Native 
     Hawaiian people to organize for their common welfare and to 
     adopt appropriate organic governing documents is hereby 
     recognized by the United States.
       (c) Organization of the Native Hawaiian Interim Governing 
     Council.--
       (1) Organization.--The adult members listed on the roll 
     developed under the authority of subsection (a) are 
     authorized to--

[[Page 26892]]

       (A) develop criteria for candidates to be elected to serve 
     on the Native Hawaiian Interim Governing Council;
       (B) determine the structure of the Native Hawaiian Interim 
     Governing Council; and
       (C) elect members to the Native Hawaiian Interim Governing 
     Council.
       (2) Election.--Upon the request of the adult members listed 
     on the roll developed under the authority of subsection (a), 
     the United States Office for Native Hawaiian Affairs may 
     assist the Native Hawaiian community in holding an election 
     by secret ballot (absentee and mail balloting permitted), to 
     elect the membership of the Native Hawaiian Interim Governing 
     Council.
       (3) Powers.--
       (A) In general.--The Native Hawaiian Interim Governing 
     Council is authorized to represent those on the roll in the 
     implementation of this Act and shall have no powers other 
     than those given to it in accordance with this Act.
       (B) Funding.--The Native Hawaiian Interim Governing Council 
     is authorized to enter into a contract or grant with any 
     Federal agency, including but not limited to, the United 
     States Office for Native Hawaiian Affairs within the 
     Department of the Interior and the Administration for Native 
     Americans within the Department of Health and Human Services, 
     to carry out the activities set forth in subparagraph (C).
       (C) Activities.--
       (i) In general.--The Native Hawaiian Interim Governing 
     Council is authorized to conduct a referendum of the adult 
     members listed on the roll developed under the authority of 
     subsection (a) for the purpose of determining (but not 
     limited to) the following:

       (I) The proposed elements of the organic governing 
     documents of a Native Hawaiian government.
       (II) The proposed powers and authorities to be exercised by 
     a Native Hawaiian government, as well as the proposed 
     privileges and immunities of a Native Hawaiian government.
       (III) The proposed civil rights and protection of such 
     rights of the citizens of a Native Hawaiian government and 
     all persons subject to the authority of a Native Hawaiian 
     government.

       (ii) Development of organic governing documents.--Based 
     upon the referendum, the Native Hawaiian Interim Governing 
     Council is authorized to develop proposed organic governing 
     documents for a Native Hawaiian government.
       (iii) Distribution.--The Native Hawaiian Interim Governing 
     Council is authorized to distribute to all adult members of 
     those listed on the roll, a copy of the proposed organic 
     governing documents, as drafted by the Native Hawaiian 
     Interim Governing Council, along with a brief impartial 
     description of the proposed organic governing documents.
       (iv) Consultation.--The Native Hawaiian Interim Governing 
     Council is authorized to freely consult with those members 
     listed on the roll concerning the text and description of the 
     proposed organic governing documents.
       (D) Elections.--
       (i) In general.--The Native Hawaiian Interim Governing 
     Council is authorized to hold elections for the purpose of 
     ratifying the proposed organic governing documents, and upon 
     ratification of the organic governing documents, to hold 
     elections for the officers of the Native Hawaiian government.
       (ii) Assistance.--Upon the request of the Native Hawaiian 
     Interim Governing Council, the United States Office of Native 
     Hawaiian Affairs may assist the Council in conducting such 
     elections.
       (4) Termination.--The Native Hawaiian Interim Governing 
     Council shall have no power or authority under this Act after 
     the time at which the duly elected officers of the Native 
     Hawaiian government take office.
       (d) Recognition of the Native Hawaiian Government.--
       (1) Process for recognition.--
       (A) Submittal of organic governing documents.--The duly 
     elected officers of the Native Hawaiian government shall 
     submit the organic governing documents of the Native Hawaiian 
     government to the Secretary.
       (B) Certifications.--Within 90 days of the date that the 
     duly elected officers of the Native Hawaiian government 
     submit the organic governing documents to the Secretary, the 
     Secretary shall certify that the organic governing 
     documents--
       (i) were adopted by a majority vote of the adult members 
     listed on the roll prepared under the authority of subsection 
     (a);
       (ii) are consistent with applicable Federal law and the 
     special trust relationship between the United States and the 
     indigenous native people of the United States;
       (iii) provide for the exercise of those governmental 
     authorities that are recognized by the United States as the 
     powers and authorities that are exercised by other 
     governments representing the indigenous, native people of the 
     United States;
       (iv) provide for the protection of the civil rights of the 
     citizens of the Native Hawaiian government and all persons 
     subject to the authority of the Native Hawaiian government, 
     and to assure that the Native Hawaiian government exercises 
     its authority consistent with the requirements of section 202 
     of the Act of April 11, 1968 (25 U.S.C. 1302);
       (v) prevent the sale, disposition, lease, or encumbrance of 
     lands, interests in lands, or other assets of the Native 
     Hawaiian government without the consent of the Native 
     Hawaiian government;
       (vi) establish the criteria for citizenship in the Native 
     Hawaiian government; and
       (vii) provide authority for the Native Hawaiian government 
     to negotiate with Federal, State, and local governments, and 
     other entities.
       (C) Failure to act.--If the Secretary fails to act within 
     90 days of the date that the duly elected officers of the 
     Native Hawaiian government submitted the organic governing 
     documents of the Native Hawaiian government to the Secretary, 
     the certifications authorized in subparagraph (B) shall be 
     deemed to have been made.
       (D) Resubmission in case of noncompliance with federal 
     law.--
       (i) Resubmission by the secretary.--If the Secretary 
     determines that the organic governing documents, or any part 
     thereof, are not consistent with applicable Federal law, the 
     Secretary shall resubmit the organic governing documents to 
     the duly elected officers of the Native Hawaiian government 
     along with a justification for each of the Secretary's 
     findings as to why the provisions are not consistent with 
     such law.
       (ii) Amendment and resubmission by the native hawaiian 
     government.--If the organic governing documents are 
     resubmitted to the duly elected officers of the Native 
     Hawaiian government by the Secretary under clause (i), the 
     duly elected officers of the Native Hawaiian government 
     shall--

       (I) amend the organic governing documents to ensure that 
     the documents comply with applicable Federal law; and
       (II) resubmit the amended organic governing documents to 
     the Secretary for certification in accordance with 
     subparagraphs (B) and (C).

       (2) Federal recognition.--
       (A) Recognition.--Notwithstanding any other provision of 
     law, upon the election of the officers of the Native Hawaiian 
     government and the certifications (or deemed certifications) 
     by the Secretary authorized in paragraph (1), Federal 
     recognition is hereby extended to the Native Hawaiian 
     government as the representative governing body of the Native 
     Hawaiian people.
       (B) No diminishment of rights or privileges.--Nothing 
     contained in this Act shall diminish, alter, or amend any 
     existing rights or privileges enjoyed by the Native Hawaiian 
     people which are not inconsistent with the provisions of this 
     Act.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated such sums as may be 
     necessary to carry out the activities authorized in this Act.

     SEC. 9. REAFFIRMATION OF DELEGATION OF FEDERAL AUTHORITY; 
                   NEGOTIATIONS.

       (a) Reaffirmation.--The delegation by the United States of 
     authority to the State of Hawaii to address the conditions of 
     Native Hawaiians contained in the Act entitled ``An Act to 
     provide for the admission of the State of Hawaii into the 
     Union'' approved March 18, 1959 (Public Law 86-3; 73 Stat. 5) 
     is hereby reaffirmed.
       (b) Negotiations.--Upon the Federal recognition of the 
     Native Hawaiian government pursuant to section 7(d)(2) of 
     this Act, the United States is authorized to negotiate and 
     enter into an agreement with the State of Hawaii and the 
     Native Hawaiian government regarding the transfer of lands, 
     resources, and assets dedicated to Native Hawaiian use under 
     existing law as in effect on the date of the enactment of 
     this Act to the Native Hawaiian government.

     SEC. 10. DISCLAIMER.

       Nothing in this Act is intended to serve as a settlement of 
     any claims against the United States, or to affect the rights 
     of the Native Hawaiian people under international law.

     SEC. 11. REGULATIONS.

       The Secretary is authorized to make such rules and 
     regulations and such delegations of authority as the 
     Secretary deems necessary to carry out the provisions of this 
     Act.

     SEC. 12. SEVERABILITY.

       In the event that any section or provision of this Act, or 
     any amendment made by this Act is held invalid, it is the 
     intent of Congress that the remaining sections or provisions 
     of this Act, and the amendments made by this Act, shall 
     continue in full force and effect.

       Section 124 includes a technical correction to allow the 
     use of National Park Service funds for the acquisition of 
     lands near Saddleback Mountain, Maine for inclusion in the 
     Appalachian National Scenic Trail.
       Section 125 incorporates by reference the text of the bill 
     S. 2273, the Black Rock Desert-High Rock Canyon Emigrant 
     Trails National Conservation Area Act of 2000, as passed by 
     the United States Senate on October 5, 2000. The text of S. 
     2273 is as follows:
     AN ACT To establish the Black Rock Desert-High Rock Canyon 
     Emigrant Trails National Conservation Area, and for other 
     purposes.
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Black Rock Desert-High Rock 
     Canyon Emigrant Trails National Conservation Area Act of 
     2000''.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) The areas of northwestern Nevada known as the Black 
     Rock Desert and High Rock Canyon contain and surround the 
     last nationally significant, untouched segments of the 
     historic California emigrant Trails, including wagon ruts, 
     historic inscriptions, and a wilderness landscape largely 
     unchanged since the days of the pioneers.
       (2) The relative absence of development in the Black Rock 
     Desert and high Rock Canyon areas

[[Page 26893]]

     from emigrant times to the present day offers a unique 
     opportunity to capture the terrain, sights, and conditions of 
     the overland trails as they were experienced by the emigrants 
     and to make available to both present and future generations 
     of Americans the opportunity of experiencing emigrant 
     conditions in an unaltered setting.
       (3) The Black Rock Desert and High Rock Canyon areas are 
     unique segments of the Northern Great Basin and contain broad 
     representation of the Great Basin's land forms and plant and 
     animal species, including golden eagles and other birds of 
     prey, sage grouse, mule deer, pronghorn antelope, bighorn 
     sheep, free roaming horses and burros, threatened fish and 
     sensitive plants.
       (4) The Black Rock-High Rock region contains a number of 
     cultural and natural resources that have been declared 
     eligible for National Historic Landmark and Natural Landmark 
     status, including a portion of the 1843-44 John Charles 
     Fremont exploration route, the site of the death of Peter 
     Lassen, early military facilities, and examples of early 
     homesteading and mining.
       (5) The archeological, paleontological, and geographical 
     resources of the Black Rock-High Rock region include numerous 
     prehistoric and historic Native American sites, wooly mammoth 
     sites, some of the largest natural potholes of North America, 
     and a remnant dry Pleistocene lakebed (playa) where the 
     curvature of the Earth may be observed.
       (6) The two large wilderness mosaics that frame the 
     conservation area offer exceptional opportunities for 
     solitude and serve to protect the integrity of the viewshed 
     of the historic emigrant trails.
       (7) Public lands in the conservation area have been used 
     for domestic livestock grazing for over a century, with 
     resultant benefits to community stability and contributions 
     to the local and State economies. It has not been 
     demonstrated that continuation of this use would be 
     incompatible with appropriate protection and sound management 
     of the resource values of these lands; therefore, it is 
     expected that such grazing will continue in accordance with 
     the management plan for the conservation area and other 
     applicable laws and regulations.
       (8) The Black Rock Desert playa is a unique natural 
     resource that serves as the primary destination for the 
     majority of visitors to the conservation area, including 
     visitors associated with large-scale permitted events. It is 
     expected that such permitted events will continue to be 
     administered in accordance with the management plan for the 
     conservation area and other applicable laws and regulations.

     SEC. 3. DEFINITIONS.

       As used in this Act:
       (1) The term ``Secretary'' means the Secretary of the 
     Interior.
       (2) The term ``public lands'' has the meaning stated in 
     section 103(e) of the Federal Land Policy and Management Act 
     of 1976 (43 U.S.C. 1702(e)).
       (3) The term ``conservation area'' means the Black Rock 
     Desert-High Rock Canyon Emigrant Trails National Conservation 
     Area established pursuant to section 4 of this Act.

     SEC. 4. ESTABLISHMENT OF THE CONSERVATION AREA.

       (a) Establishment and Purposes.--In order to conserve, 
     protect, and enhance for the benefit and enjoyment of present 
     and future generations the unique and nationally important 
     historical, cultural, paleontological, scenic, scientific, 
     biological, educational, wildlife, riparian, wilderness, 
     endangered species, and recreational values and resources 
     associated with the Applegate-Lassen and Nobles Trails 
     corridors and surrounding areas, there is hereby established 
     the Black Rock Desert-High Rock Canyon Emigrant Trails 
     National Conservation Area in the State of Nevada.
       (b) Areas Included.--The conservation area shall consist of 
     approximately 797,100 acres of public lands as generally 
     depicted on the map entitled ``Black Rock Desert Emigrant 
     Trail National Conservation Area'' and dated July 19, 2000.
       (c) Maps and Legal Description.--As soon as practicable 
     after the date of the enactment of this Act, the Secretary 
     shall submit to Congress a map and legal description of the 
     conservation area. The map and legal description shall have 
     the same force and effect as if included in this Act, except 
     the Secretary may correct clerical and typographical errors 
     in such map and legal description. Copies of the map and 
     legal description shall be on file and available for public 
     inspection in the appropriate offices of the Bureau of Land 
     Management.

     SEC. 5. MANAGEMENT.

       (a) Management.--The Secretary, acting through the Bureau 
     of Land Management, shall manage the conservation area in a 
     manner that conserves, protects and enhances its resources 
     and values, including those resources and values specified in 
     subsection 4(a), in accordance with this Act, the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1701 et 
     seq.), and other applicable provisions of law.
       (b) Access.--
       (1) In general.--The Secretary shall maintain adequate 
     access for the reasonable use and enjoyment of the 
     conservation area.
       (2) Private land.--The Secretary shall provide reasonable 
     access to privately owned land or interests in land within 
     the boundaries of the conservation area.
       (3) Existing public roads.--The Secretary is authorized to 
     maintain existing public access within the boundaries of the 
     conservation area in a manner consistent with the purposes 
     for which the conservation area was established.
       (c) Uses.--
       (1) In general.--The Secretary shall only allow such uses 
     of the conservation area as the Secretary finds will further 
     the purposes for which the conservation area is established.
       (2) Off-highway vehicle use.--Except where needed for 
     administrative purposes or to respond to an emergency, use of 
     motorized vehicles in the conservation area shall be 
     permitted only on roads and trails and in other areas 
     designated for use of motorized vehicles as part of the 
     management plan prepared pursuant to subsection (e).
       (3) Permitted events.--The Secretary may continue to permit 
     large-scale events in defined, low impact areas of the Black 
     Rock Desert playa in the conservation area in accordance with 
     the management plan prepared pursuant to subsection (e).
       (d) Hunting, Trapping, and Fishing.--Nothing in this Act 
     shall be deemed to diminish the jurisdiction of the State of 
     Nevada with respect to fish and wildlife management, 
     including regulation of hunting and fishing, on public lands 
     within the conservation area.
       (e) Management Plan.--Within three years following the date 
     of enactment of this Act, the Secretary shall develop a 
     comprehensive resource management plan for the long-term 
     protection and management of the conservation area. The plan 
     shall be developed with full public participation and shall 
     describe the appropriate uses and management of the 
     conservation area consistent with the provisions of this Act. 
     The plan may incorporate appropriate decisions contained in 
     any current management or activity plan for the area and may 
     use information developed in previous studies of the lands 
     within or adjacent to the conservation area.
       (f) Grazing.--Where the Secretary of the Interior currently 
     permits livestock grazing in the conservation area, such 
     grazing shall be allowed to continue subject to all 
     applicable laws, regulations, and executive orders.
       (g) Visitor Service Facilities.--The Secretary is 
     authorized to establish, in cooperation with other public or 
     private entities as the Secretary may deem appropriate, 
     visitor service facilities for the purpose of providing 
     information about the historical, cultural, ecological, 
     recreational, and other resources of the conservation area.

     SEC. 6. WITHDRAWAL.

       (a) In General.--Subject to valid existing rights, all 
     Federal lands within the conservation area and all lands and 
     interests therein which are hereafter acquired by the United 
     States are hereby withdrawn from all forms of entry, 
     appropriation, or disposal under the public land laws, from 
     location, entry, and patent under the mining laws, from 
     operation of the mineral leasing and geothermal leasing laws 
     and from the minerals materials laws and all amendments 
     thereto.

     SEC. 7. NO BUFFER ZONES.

       The Congress does not intend for the establishment of the 
     conservation area to lead to the creation of protective 
     perimeters or buffer zones around the conservation area. The 
     fact that there may be activities or uses on lands outside 
     the conservation area that would not be permitted in the 
     conservation area shall not preclude such activities or uses 
     on such lands up to the boundary of the conservation area 
     consistent with other applicable laws.

     SEC. 8. WILDERNESS.

       (a) Designation.--In furtherance of the purposes of the 
     Wilderness Act of 1964 (16 U.S.C. 1131 et seq.), the 
     following lands in the State of Nevada are designated as 
     wilderness, and, therefore, as components of the National 
     Wilderness Preservation System:
       (1) Certain lands in the Black Rock Desert Wilderness Study 
     Area comprised of approximately 315,700 acres, as generally 
     depicted on a map entitled ``Black Rock Desert Wilderness--
     Proposed'' and dated July 19, 2000, and which shall be known 
     as the Black Rock Desert Wilderness.
       (2) Certain lands in the Pahute Peak Wilderness Study Area 
     comprised of approximately 57,400 acres, as generally 
     depicted on a map entitled ``Pahute Peak Wilderness--
     Proposed'' and dated July 19, 2000, and which shall be known 
     as the Pahute Peak Wilderness.
       (3) Certain lands in the North Black Rock Range Wilderness 
     Study Area comprised of approximately 30,800 acres, as 
     generally depicted on a map entitled ``North Black Rock Range 
     Wilderness--Proposed'' and dated July 19, 2000, and which 
     shall be known as the North Black Rock Range Wilderness.
       (4) Certain lands in the East Fork High Rock Canyon 
     Wilderness Study Area comprised of approximately 52,800 
     acres, as generally depicted on a map entitled ``East Fork 
     High Rock Canyon Wilderness--Proposed'' and dated July 19, 
     2000, and which shall be known as the East Fork High Rock 
     Canyon Wilderness.
       (5) Certain lands in the High Rock Lake Wilderness Study 
     Area comprised of approximately 59,300 acres, as generally 
     depicted on a map entitled ``High Rock Lake Wilderness--
     Proposed'' and dated July 19, 2000, and which shall be known 
     as the High Rock Lake Wilderness.
       (6) Certain lands in the Little High Rock Canyon Wilderness 
     Study Area comprised of approximately 48,700 acres, as 
     generally depicted on a map entitled ``Little High Rock 
     Canyon Wilderness--Proposed'' and dated July 19, 2000, and 
     which shall be known as the Little High Rock Canyon 
     Wilderness.
       (7) Certain lands in the High Rock Canyon Wilderness Study 
     Area and Yellow Rock Canyon Wilderness Study Area comprised 
     of approximately 46,600 acres, as generally depicted

[[Page 26894]]

     on a map entitled ``High Rock Canyon Wilderness--Proposed'' 
     and dated July 19, 2000, and which shall be known as the High 
     Rock Canyon Wilderness.
       (8) Certain lands in the Calico Mountains Wilderness Study 
     Area comprised of approximately 65,400 acres, as generally 
     depicted on a map entitled ``Calico Mountains Wilderness--
     Proposed'' and dated July 19, 2000, and which shall be known 
     as the Calico Mountains Wilderness.
       (9) Certain lands in the South Jackson Mountains Wilderness 
     Study Area comprised of approximately 56,800 acres, as 
     generally depicted on a map entitled ``South Jackson 
     Mountains Wilderness--Proposed'' and dated July 19, 2000, and 
     which shall be known as the South Jackson Mountains 
     Wilderness.
       (10) Certain lands in the North Jackson Mountains 
     Wilderness Study Area comprised of approximately 24,000 
     acres, as generally depicted on a map entitled ``North 
     Jackson Mountains Wilderness--Proposed'' and dated July 19, 
     2000, and which shall be known as the North Jackson Mountains 
     Wilderness.
       (b) Administration of Wilderness Areas.--Subject to valid 
     existing rights, each wilderness area designated by this Act 
     shall be administered by the Secretary in accordance with the 
     provisions of the Wilderness Act, except that any reference 
     in such provisions to the effective date of the Wilderness 
     Act shall be deemed to be a reference to the date of 
     enactment of this Act and any reference to the Secretary of 
     Agriculture shall be deemed to be a reference to the 
     Secretary of the Interior.
       (c) Maps and Legal Description.--As soon as practicable 
     after the date of the enactment of this Act, the Secretary 
     shall submit to Congress a map and legal description of the 
     wilderness areas designated under this Act. The map and legal 
     description shall have the same force and effect as if 
     included in this Act, except the Secretary may correct 
     clerical and typographical errors in such map and legal 
     description. Copies of the map and legal description shall be 
     on file and available for public inspection in the 
     appropriate offices of the Bureau of Land Management.
       (d) Grazing.--Within the wilderness areas designated under 
     subsection (a), the grazing of livestock, where established 
     prior to the date of enactment of this Act, shall be 
     permitted to continue subject to such reasonable regulations, 
     policies, and practices as the Secretary deems necessary, as 
     long as such regulations, policies, and practices fully 
     conform with and implement the intent of Congress regarding 
     grazing in such areas as such intent is expressed in the 
     Wilderness Act and section 101(f) of Public Law 101-628.

     SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

       There is hereby authorized to be appropriated such sums as 
     may be necessary to carry out the provisions of this Act.

       Section 126 increases the annual authorized funding level 
     for the Illinois and Michigan Canal National Heritage 
     Corridor Commission from $250,000 to $1,000,000.
       Section 127. The bill S. 2885, the Jamestown 400th 
     Commemoration Commission Act of 2000, as passed in the United 
     States Senate on October 5, 2000, is incorporated by 
     reference. The text of S. 2885 is as follows:

 An Act to establish the Jamestown 400th Commemoration Commission, and 
                           for other purposes

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Jamestown 400th 
     Commemoration Commission Act of 2000''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) the founding of the colony at Jamestown, Virginia in 
     1607, the first permanent English colony in the New World, 
     and the capital of Virginia for 92 years, has major 
     significance in the history of the United States;
       (2) the settlement brought people from throughout the 
     Atlantic Basin together to form a multicultural society, 
     including English, other Europeans, Native Americans, and 
     Africans;
       (3) the economic, political, religious, and social 
     institutions that developed during the first 9 decades of the 
     existence of Jamestown continue to have profound effects on 
     the United States, particularly in English common law and 
     language, cross cultural relationships, and economic 
     structure and status;
       (4) the National Park Service, the Association for the 
     Preservation of Virginia Antiquities, and the Jamestown-
     Yorktown Foundation of the Commonwealth of Virginia 
     collectively own and operate significant resources related to 
     the early history of Jamestown; and
       (5) in 1996--
       (A) the Commonwealth of Virginia designated the Jamestown-
     Yorktown Foundation as the State agency responsible for 
     planning and implementing the Commonwealth's portion of the 
     commemoration of the 400th anniversary of the founding of the 
     Jamestown settlement;
       (B) the Foundation created the Celebration 2007 Steering 
     Committee, known as the Jamestown 2007 Steering Committee; 
     and
       (C) planning for the commemoration began.
       (b) Purpose.--The purpose of this Act is to establish the 
     Jamestown 400th Commemoration Commission to--
       (1) ensure a suitable national observance of the Jamestown 
     2007 anniversary by complementing the programs and activities 
     of the Commonwealth of Virginia;
       (2) cooperate with and assist the programs and activities 
     of the State in observance of the Jamestown 2007 anniversary;
       (3) assist in ensuring that Jamestown 2007 observances 
     provide an excellent visitor experience and beneficial 
     interaction between visitors and the natural and cultural 
     resources of the Jamestown sites;
       (4) assist in ensuring that the Jamestown 2007 observances 
     are inclusive and appropriately recognize the experiences of 
     all people present in 17th century Jamestown;
       (5) provide assistance to the development of Jamestown-
     related programs and activities;
       (6) facilitate international involvement in the Jamestown 
     2007 observances;
       (7) support and facilitate marketing efforts for a 
     commemorative coin, stamp, and related activities for the 
     Jamestown 2007 observances; and
       (8) assist in the appropriate development of heritage 
     tourism and economic benefits to the United States.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Commemoration.--The term ``commemoration'' means the 
     commemoration of the 400th anniversary of the founding of the 
     Jamestown settlement.
       (2) Commission.--The term ``Commission'' means the 
     Jamestown 400th Commemoration Commission established by 
     section 4(a).
       (3) Governor.--The term ``Governor'' means the Governor of 
     Virginia.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (5) State.--The term ``State'' means the Commonwealth of 
     Virginia, including agencies and entities of the 
     Commonwealth.

     SEC. 4. JAMESTOWN 400TH COMMEMORATION COMMISSION.

       (a) In General.--There is established a commission to be 
     known as the ``Jamestown 400th Commemoration Commission''.
       (b) Membership.--
       (1) In general.--The Commission shall be composed of 15 
     members, of whom--
       (A) 4 members shall be appointed by the Secretary, taking 
     into consideration the recommendations of the Chairperson of 
     the Jamestown 2007 Steering Committee;
       (B) 4 members shall be appointed by the Secretary, taking 
     into consideration the recommendations of the Governor;
       (C) 2 members shall be employees of the National Park 
     Service, of which--
       (i) 1 shall be the Director of the National Park Service 
     (or a designee); and
       (ii) 1 shall be an employee of the National Park Service 
     having experience relevant to the commemoration, to be 
     appointed by the Secretary; and
       (D) 5 members shall be individuals that have an interest 
     in, support for, and expertise appropriate to, the 
     commemoration, to be appointed by the Secretary.
       (2) Term; vacancies.--
       (A) Term.--A member of the Commission shall be appointed 
     for the life of the Commission.
       (B) Vacancies.--
       (i) In general.--A vacancy on the Commission shall be 
     filled in the same manner in which the original appointment 
     was made.
       (ii) Partial term.--A member appointed to fill a vacancy on 
     the Commission shall serve for the remainder of the term for 
     which the predecessor of the member was appointed.
       (3) Meetings.--
       (A) In general.--The Commission shall meet--
       (i) at least twice each year; or
       (ii) at the call of the Chairperson or the majority of the 
     members of the Commission.
       (B) Initial meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold the initial meeting of the 
     Commission.
       (4) Voting.--
       (A) In general.--The Commission shall act only on an 
     affirmative vote of a majority of the members of the 
     Commission.
       (B) Quorum.--A majority of the Commission shall constitute 
     a quorum.
       (5) Chairperson.--The Secretary shall appoint a Chairperson 
     of the Commission, taking into consideration any 
     recommendations of the Governor.
       (c) Duties.--
       (1) In general.--The Commission shall--
       (A) plan, develop, and execute programs and activities 
     appropriate to commemorate the 400th anniversary of the 
     founding of Jamestown;
       (B) generally facilitate Jamestown-related activities 
     throughout the United States;
       (C) encourage civic, patriotic, historical, educational, 
     religious, economic, and other organizations throughout the 
     United States to organize and participate in anniversary 
     activities to expand the understanding and appreciation of 
     the significance of the founding and early history of 
     Jamestown;
       (D) coordinate and facilitate for the public scholarly 
     research on, publication about, and interpretation of, 
     Jamestown; and
       (E) ensure that the 400th anniversary of Jamestown provides 
     a lasting legacy and long-term public benefit by assisting in 
     the development of appropriate programs and facilities.
       (2) Plans; reports.--
       (A) Strategic plan; annual performance plans.--In 
     accordance with the Government Performance and Results Act of 
     1993 (Public Law 103-62; 107 Stat. 285), the Commission shall 
     prepare a strategic plan and annual performance plans for the 
     activities of the Commission carried out under this Act.
       (B) Final report.--Not later than September 30, 2008, the 
     Commission shall complete a final report that contains--

[[Page 26895]]

       (i) a summary of the activities of the Commission;
       (ii) a final accounting of funds received and expended by 
     the Commission; and
       (iii) the findings and recommendations of the Commission.
       (d) Powers of the Commission.--The Commission may--
       (1) accept donations and make dispersions of money, 
     personal services, and real and personal property related to 
     Jamestown and of the significance of Jamestown in the history 
     of the United States;
       (2) appoint such advisory committees as the Commission 
     determines to be necessary to carry out this Act;
       (3) authorize any member or employee of the Commission to 
     take any action that the Commission is authorized to take by 
     this Act;
       (4) procure supplies, services, and property, and make or 
     enter into contracts, leases or other legal agreements, to 
     carry out this Act (except that any contracts, leases or 
     other legal agreements made or entered into by the Commission 
     shall not extend beyond the date of termination of the 
     Commission);
       (5) use the United States mails in the same manner and 
     under the same conditions as other Federal agencies;
       (6) subject to approval by the Commission, make grants in 
     amounts not to exceed $10,000 to communities and nonprofit 
     organizations to develop programs to assist in the 
     commemoration;
       (7) make grants to research and scholarly organizations to 
     research, publish, or distribute information relating to the 
     early history of Jamestown; and
       (8) provide technical assistance to States, localities, and 
     nonprofit organizations to further the commemoration.
       (e) Commission Personnel Matters.--
       (1) Compensation of members of the commission.--
       (A) In general.--Except as provided in subparagraph (B), a 
     member of the Commission shall serve without compensation.
       (B) Federal employees.--A member of the Commission who is 
     an officer or employee of the Federal Government shall serve 
     without compensation in addition to the compensation received 
     for the services of the member as an officer or employee of 
     the Federal Government.
       (C) Travel expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Commission.
       (2) Staff.--
       (A) In general.--The Chairperson of the Commission may, 
     without regard to the civil service laws (including 
     regulations), appoint and terminate an executive director and 
     such other additional personnel as are necessary to enable 
     the Commission to perform the duties of the Commission.
       (B) Confirmation of executive director.--The employment of 
     an executive director shall be subject to confirmation by the 
     Commission.
       (3) Compensation.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Chairperson of the Commission may fix the compensation of 
     the executive director and other personnel without regard to 
     the provisions of chapter 51 and subchapter III of chapter 53 
     of title 5, United States Code, relating to classification of 
     positions and General Schedule pay rates.
       (B) Maximum rate of pay.--The rate of pay for the executive 
     director and other personnel shall not exceed the rate 
     payable for level V of the Executive Schedule under section 
     5316 of title 5, United States Code.
       (4) Detail of government employees.--
       (A) Federal employees.--
       (i) In general.--On the request of the Commission, the head 
     of any Federal agency may detail, on a reimbursable or non-
     reimbursable basis, any of the personnel of the agency to the 
     Commission to assist the Commission in carrying out the 
     duties of the Commission under this Act.
       (ii) Civil service status.--The detail of an employee under 
     clause (i) shall be without interruption or loss of civil 
     service status or privilege.
       (B) State employees.--The Commission may--
       (i) accept the services of personnel detailed from States 
     (including subdivisions of States); and
       (ii) reimburse States for services of detailed personnel.
       (5) Volunteer and uncompensated services.--Notwithstanding 
     section 1342 of title 31, United States Code, the Commission 
     may accept and use voluntary and uncompensated services as 
     the Commission determines necessary.
       (6) Support services.--The Director of the National Park 
     Service shall provide to the Commission, on a reimbursable 
     basis, such administrative support services as the Commission 
     may request.
       (f) Procurement of Temporary and Intermittent Services.--
     The Chairperson of the Commission may procure temporary and 
     intermittent services in accordance with section 3109(b) of 
     title 5, United States Code, at rates for individuals that do 
     not exceed the daily equivalent of the annual rate of basic 
     pay prescribed for level V of the Executive Schedule under 
     section 5316 of that title.
       (g) FACA Nonapplicability.--Section 14(b) of the Federal 
     Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
     Commission.
       (h) No Effect on Authority.--Nothing in this section 
     supersedes the authority of the State, the National Park 
     Service, or the Association for the Preservation of Virginia 
     Antiquities, concerning the commemoration.
       (i) Termination.--The Commission shall terminate on 
     December 31, 2008.

     SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this Act.
       Section 128 provides guidance to the National Park Service 
     on restricting the use of snowmobiles in units of the 
     National Park System.
       Section 129 extends an agreement, through March 31, 2001, 
     dealing with seven campsite leases in the Biscayne Bay, 
     Miami/Dade County area of Florida, collectively known as 
     ``Stiltsville''.
       Section 130 authorizes a grant of $1.3 million for the 
     National Park Service to acquire land in Lower Phalen Creek 
     near St. Paul, Minnesota for the Mississippi National River 
     and Recreation Area. The land is for a trail that is being 
     named after the late Congressman Bruce Vento.
       Section 131 authorizes the transfer of funds to the George 
     Washington's Fredericksburg Foundation, Inc. for a 
     cooperative agreement to manage Ferry Farm, which was George 
     Washington's boyhood home.
       Section 132 prohibits the Secretary of the Interior from 
     using funds to pay the salaries or expenses related to the 
     issuance of a request for proposal related to a light rail 
     system at Grand Canyon National Park until June 1, 2001. In 
     addition, the Secretary is directed to report directly to the 
     Committee prior to any additional action regarding a request 
     for proposal on alternative transportation options for the 
     park. These options should include a phase-in period based on 
     newly updated visitation numbers. The report should also 
     address using a bus/transit option only during high peak 
     visitation months. Alternatives to be analyzed and costed in 
     the report include: (1) an alternative fueled bus alternative 
     with parking outside the park; (2) a rapid transit 
     alternative and (3) a combination bus/rapid transit 
     alternative.
       Section 133 prohibits the Secretary of the Interior from 
     removing a white cross erected in 1934 by the Veterans of 
     Foreign Wars to honor the memory of fallen World War I 
     veterans. The cross is located within the boundary of the 
     Mojave National Preserve along Cima Road, approximately 11 
     miles south of Interstate 15.
       Section 134 extends the term of the Chesapeake and Ohio 
     Canal National Historical Park Commission.
       Section 135 allows funds provided in Public Law 106-291 for 
     land acquisition by the National Park Service in fiscal year 
     2001 for Brandywine Battlefield, Ice Age National Scenic 
     Trail, Mississippi National River and Recreation Area, 
     Shenandoah National Heritage Area, and Fallen Timbers 
     Battlefield and Fort Miamis National Historic Site to be used 
     for a grant to a state, local government, or to a land 
     management entity.
       Section 137 extends the boundary of Gulf Islands National 
     Seashore in Mississippi to include Cat Island.
       Section 138. The conference agreement includes a new 
     provision regarding limitations on Federal Thrift Savings 
     Plan contributions.
       Section 139. The conference agreement includes a new 
     provision regarding the exclusion of elements of the United 
     States Secret Service from certain activities.
       Section 140. The conference agreement includes a new 
     provision providing for an average 3.7 percent salary 
     adjustment for Federal employees in January, 2001, consistent 
     with the alternative pay plan submitted by the Administration 
     on November 30, 2000.
       Section 141. The conference agreement includes a new 
     provision repealing mandatory retirement for the Alaska 
     Railroad.
       Section 142. The conference agreement includes a provision 
     amending the Juvenile Justice and Delinquency Prevention Act 
     to allow a two year exception for the State of Alaska with 
     respect to the holding of juveniles in adult facilities.
       Section 143. The conference agreement contains the ``LPTV 
     Pilot Project Digital Data Services Act''.
       Section 144. The conference agreement includes a provision 
     to amend the following: the Magnuson-Stevens Fishery 
     Conservation and Management Act; P.L. 106-246; P.L. 105-83; 
     P.L. 99-5; P.L. 106-113 regarding a fishery research vessel; 
     the implementation of a fishing capacity reduction program 
     for the Commercial King and Tanner Crab Fisheries in the 
     Bering Sea and Aleutian Islands; P.L. 89-702 to be referred 
     to as the Fur Seal Act of 1966; the National Marine 
     Sanctuaries Act (16 U.S.C. 1433, 1434); and the Sustainable 
     Fisheries Act (16 U.S.C. 1855 note).
       Section 145. The conference agreement includes language 
     amending the Department of State Special Agents Retirment Act 
     of 1998 to allow agents who retired between January 1, 1997, 
     and the enactment of the Act on November 13, 1998, to also be 
     eligible for the increased benefits provided by the Act.
       Section 146. The conference agreement includes a provision 
     expressing the sense of Congress calling upon the President 
     of the United States to take action to provide relief from 
     injury caused by steel imports.
       Section 147. The conference agreement includes a provision 
     amending the Johnson Act

[[Page 26896]]

     to prohibit gambling on peri-Hawaiian cruises.
       Section 148. The conference agreement includes language to 
     ban political advertising by public broadcasters.
       Section 149. The conference agreement includes language 
     extending a certain small business program, which would 
     otherwise expire.
       Section 150. The conference agreement includes $105,000,000 
     in direct spending to the Department of Health and Human 
     Services for the Ricky Ray Hemophilia Relief Fund, of which 
     $10,000,000 is for program management.
       Section 151. The conference agreement includes $60,400,000 
     in direct spending to the Department of Labor for costs 
     related to administering the Energy Employees Occupational 
     Illness Compensation Program enacted as Title XXXVI of the 
     Defense Authorization Act of 2000. This program was 
     established to compensate individuals who have suffered 
     disabling and potentially fatal illnesses as a result of 
     their work in the Department of Energy's nuclear weapons 
     complex. The Secretary of Labor is authorized to transfer 
     these funds to other federal agencies to the extent necessary 
     to implement the Energy Employees Occupational Illness 
     Compensation Act.
       Section 152. The conference agreement includes a provision 
     to make certain technical and conforming amendments to the 
     Medicare/PPS law to allow the Moffit Cancer Research and 
     Treatment Center to be treated under existing law the same as 
     the other ten Medicare/PPS exempt institutions in the United 
     States.
       The conference agreement includes language which provides 
     that the Secretary of the Army may establish a pilot program 
     to provide environmental assistance to non-Federal interests 
     in northern Wisconsin.

           TITLE II--VIETNAM EDUCATION FOUNDATION ACT OF 2000

       This title enacts a bill to establish a Vietnam Education 
     Foundation, to provide fellowships for Vietnamese to study in 
     the United States at the graduate and post-graduate level in 
     the sciences, math, and medicine. It would also support 
     American professors to teach these subjects in appropriate 
     Vietnamese institutions. The bill authorizes an appropriation 
     of $5,000,000 in fiscal year 2001. Beginning in FY2002, the 
     Secretary of the Treasury would transfer $5,000,000 annually 
     to the Foundation from debt repayments that Vietnam has 
     agreed to make to the United States in settlement of debt 
     incurred prior to 1976 by the Republic of South Vietnam. The 
     Foundation can also solicit and accept private funds.

       TITLE III--COLORADO UTE SETTLEMENT ACT AMENDMENTS OF 2000

       The conference agreement includes the text of S. 2508, the 
     Colorado Ute Settlement Act Amendments of 2000.

     TITLE IV--DESIGNATION OF AMERICAN MUSEUM OF SCIENCE AND ENERGY

       The conference agreement includes language which will 
     permit the American Museum of Science and Energy located in 
     Oak Ridge, Tennessee, to accept and use donations, fees, and 
     gifts to offset the cost of operating the facility.

             TITLE V--DELTA REGIONAL AUTHORITY ACT OF 2000

       The conference agreement includes language which authorizes 
     the Delta Regional Authority.

              TITLE VI--DAKOTA WATER RESOURCES ACT OF 2000

       The conference agreement includes the text of S. 623, the 
     Dakota Water Resources Act of 2000.

                               TITLE VII

       The conference agreement includes an Act authorizing the 
     construction of a Reconciliation Place in Fort Pierre, South 
     Dakota.

                   TITLE VIII--ERIE CANALWAY NATIONAL


                           HERITAGE CORRIDOR

       The conference agreement includes an Act to designate the 
     Erie Canalway a National Heritage Corridor.

                TITLE IX--LAW ENFORCEMENT PAY EQUITY ACT

       The conference agreement includes a new provision regarding 
     pay comparability for the United States Park Police, the 
     Uniformed Division of the United States Secret Service, and 
     the D.C. Metropolitan Police Department.

          TITLE X--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                       administrative provisions

       Language is included which makes technical changes to the 
     fiscal year 2000 Appropriations Act regarding the Millennial 
     Housing Commission.
       Language is included which codifies the multiplier the 
     Federal Home Loan Mortgage Corporation can use for reaching 
     the multi-family affordable housing goal.
       Language is included to allow the conversion of a HUD 
     rental housing project in Toledo, Ohio to condominiums as 
     long as the housing remains affordable, either as rental or 
     homeownership housing, to low- and very-low income families 
     that currently reside in the apartments.
       Language has been included which directs the General 
     Accounting Office to study and report on financial standards 
     related to the Federal Home Loan Bank System.

                  TITLE XI--DEPARTMENT OF THE TREASURY


                        administrative provision

       Language is included which honors the Navajo Code Talkers 
     of World War II by authorizing the striking and presentation 
     of a gold medal of appropriate design to each of the original 
     29 Navajo Code Talkers or a surviving family member, striking 
     and presentation of a silver medal to each man or surviving 
     family member qualified as a Navajo Code Talker, and by 
     further authorizing the striking of duplicate medals in 
     bronze for sale to the general public.

               TITLE XII--ENVIRONMENTAL PROTECTION AGENCY


                       administrative provisions

       Language is included authorizing the aboveground storage 
     tank grant program.

       TITLE XIII--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION


                        administrative provision

       Language is included which permits NASA to use certain 
     proceeds from the sale of timber on lands associated with the 
     John C. Stennis Space Center for the purchase of additional 
     property to establish education and visitor programs and 
     facilities, and for wetlands mitigation.

           TITLE XIV--CERTAIN ALASKAN CRUISE SHIP OPERATIONS

       Language is included which regulates the discharge of 
     sewage and wastewater from cruise ships in certain waters in 
     and adjacent to the State of Alaska.

                     TITLE XV--LIFE ACT AMENDMENTS

       The conference agreement includes a new title, titled the 
     LIFE Act Amendments of 2000.

     TITLE XVI--IMPROVING LITERACY THROUGH FAMILY LITERACY PROJECTS

       The conference agreement includes the Literacy Involves 
     Families Together Act of 2000.

               TITLE XVII--CHILDREN'S INTERNET PROTECTION

       The conference agreement includes the Children's Internet 
     Protection Act of 2000.

              COMMODITY FUTURES MODERNIZATION ACT OF 2000

       The conference agreement would enact the provisions of H.R. 
     5660, as introduced on December 14, 2000. The text of that 
     bill follows:
     A BILL To reauthorize and amend the Commodity Exchange Act to 
     promote legal certainty, enhance competition, and reduce 
     systemic risk in markets for futures and over-the-counter 
     derivatives, and for other purposes
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Commodity 
     Futures Modernization Act of 2000''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.

                TITLE I--COMMODITY FUTURES MODERNIZATION

Sec. 101. Definitions.
Sec. 102. Agreements, contracts, and transactions in foreign currency, 
              government securities, and certain other commodities.
Sec. 103. Legal certainty for excluded derivative transactions.
Sec. 104. Excluded electronic trading facilities.
Sec. 105. Hybrid instruments; swap transactions.
Sec. 106. Transactions in exempt commodities.
Sec. 107. Application of commodity futures laws.
Sec. 108. Protection of the public interest.
Sec. 109. Prohibited transactions.
Sec. 110. Designation of boards of trade as contract markets.
Sec. 111. Derivatives transaction execution facilities.
Sec. 112. Derivatives clearing.
Sec. 113. Common provisions applicable to registered entities.
Sec. 114. Exempt boards of trade.
Sec. 115. Suspension or revocation of designation as contract market.
Sec. 116. Authorization of appropriations.
Sec. 117. Preemption.
Sec. 118. Predispute resolution agreements for institutional customers.
Sec. 119. Consideration of costs and benefits and antitrust laws.
Sec. 120. Contract enforcement between eligible counterparties.
Sec. 121. Special procedures to encourage and facilitate bona fide 
              hedging by agricultural producers.
Sec. 122. Rule of construction.
Sec. 123. Technical and conforming amendments.
Sec. 124. Privacy.
Sec. 125. Report to Congress.
Sec. 126. International activities of the Commodity Futures Trading 
              Commission.

[[Page 26897]]

     TITLE II--COORDINATED REGULATION OF SECURITY FUTURES PRODUCTS

                 Subtitle A--Securities Law Amendments

Sec. 201. Definitions under the Securities Exchange Act of 1934.
Sec. 202. Regulatory relief for markets trading security futures 
              products.
Sec. 203. Regulatory relief for intermediaries trading security futures 
              products.
Sec. 204. Special provisions for interagency cooperation.
Sec. 205. Maintenance of market integrity for security futures 
              products.
Sec. 206. Special provisions for the trading of security futures 
              products.
Sec. 207. Clearance and settlement.
Sec. 208. Amendments relating to registration and disclosure issues 
              under the Securities Act of 1933 and the Securities 
              Exchange Act of 1934.
Sec. 209. Amendments to the Investment Company Act of 1940 and the 
              Investment Advisers Act of 1940.
Sec. 210. Preemption of State laws.

          Subtitle B--Amendments To the Commodity Exchange Act

Sec. 251. Jurisdiction of Securities and Exchange Commission; other 
              provisions.
Sec. 252. Application of the Commodity Exchange Act to national 
              securities exchanges and national securities associations 
              that trade security futures.
Sec. 253. Notification of investigations and enforcement actions.

             TITLE III--LEGAL CERTAINTY FOR SWAP AGREEMENTS

Sec. 301. Swap agreement.
Sec. 302. Amendments to the Securities Act of 1933.
Sec. 303. Amendments to the Securities Exchange Act of 1934.
Sec. 304. Savings provision.

         TITLE IV--REGULATORY RESPONSIBILITY FOR BANK PRODUCTS

Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Exclusion of identified banking products commonly offered on 
              or before December 5, 2000.
Sec. 404. Exclusion of certain identified banking products offered by 
              banks after December 5, 2000.
Sec. 405. Exclusion of certain other identified banking products.
Sec. 406. Administration of the predominance test.
Sec. 407. Exclusion of covered swap agreements.
Sec. 408. Contract enforcement.

     SEC. 2. PURPOSES.

       The purposes of this Act are--
       (1) to reauthorize the appropriation for the Commodity 
     Futures Trading Commission;
       (2) to streamline and eliminate unnecessary regulation for 
     the commodity futures exchanges and other entities regulated 
     under the Commodity Exchange Act;
       (3) to transform the role of the Commodity Futures Trading 
     Commission to oversight of the futures markets;
       (4) to provide a statutory and regulatory framework for 
     allowing the trading of futures on securities;
       (5) to clarify the jurisdiction of the Commodity Futures 
     Trading Commission over certain retail foreign exchange 
     transactions and bucket shops that may not be otherwise 
     regulated;
       (6) to promote innovation for futures and derivatives and 
     to reduce systemic risk by enhancing legal certainty in the 
     markets for certain futures and derivatives transactions;
       (7) to reduce systemic risk and provide greater stability 
     to markets during times of market disorder by allowing the 
     clearing of transactions in over-the-counter derivatives 
     through appropriately regulated clearing organizations; and
       (8) to enhance the competitive position of United States 
     financial institutions and financial markets.

                TITLE I--COMMODITY FUTURES MODERNIZATION

     SEC. 101. DEFINITIONS.

       Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is 
     amended--
       (1) by redesignating paragraphs (1) through (7), (8) 
     through (12), (13) through (15), and (16) as paragraphs (2) 
     through (8), (16) through (20), (22) through (24), and (28), 
     respectively;
       (2) by inserting before paragraph (2) (as redesignated by 
     paragraph (1)) the following:
       ``(1) Alternative trading system.--The term `alternative 
     trading system' means an organization, association, or group 
     of persons that--
       ``(A) is registered as a broker or dealer pursuant to 
     section 15(b) of the Securities Exchange Act of 1934 (except 
     paragraph (11) thereof);
       ``(B) performs the functions commonly performed by an 
     exchange (as defined in section 3(a)(1) of the Securities 
     Exchange Act of 1934);
       ``(C) does not--
       ``(i) set rules governing the conduct of subscribers other 
     than the conduct of such subscribers' trading on the 
     alternative trading system; or
       ``(ii) discipline subscribers other than by exclusion from 
     trading; and
       ``(D) is exempt from the definition of the term `exchange' 
     under such section 3(a)(1) by rule or regulation of the 
     Securities and Exchange Commission on terms that require 
     compliance with regulations of its trading functions.'';
       (3) by striking paragraph (2) (as redesignated by paragraph 
     (1)) and inserting the following:
       ``(2) Board of trade.--The term `board of trade' means any 
     organized exchange or other trading facility.'';
       (4) by inserting after paragraph (8) (as redesignated by 
     paragraph (1)) the following:
       ``(9) Derivatives clearing organization.--
       ``(A) In general.--The term `derivatives clearing 
     organization' means a clearinghouse, clearing association, 
     clearing corporation, or similar entity, facility, system, or 
     organization that, with respect to an agreement, contract, or 
     transaction--
       ``(i) enables each party to the agreement, contract, or 
     transaction to substitute, through novation or otherwise, the 
     credit of the derivatives clearing organization for the 
     credit of the parties;
       ``(ii) arranges or provides, on a multilateral basis, for 
     the settlement or netting of obligations resulting from such 
     agreements, contracts, or transactions executed by 
     participants in the derivatives clearing organization; or
       ``(iii) otherwise provides clearing services or 
     arrangements that mutualize or transfer among participants in 
     the derivatives clearing organization the credit risk arising 
     from such agreements, contracts, or transactions executed by 
     the participants.
       ``(B) Exclusions.--The term `derivatives clearing 
     organization' does not include an entity, facility, system, 
     or organization solely because it arranges or provides for--
       ``(i) settlement, netting, or novation of obligations 
     resulting from agreements, contracts, or transactions, on a 
     bilateral basis and without a central counterparty;
       ``(ii) settlement or netting of cash payments through an 
     interbank payment system; or
       ``(iii) settlement, netting, or novation of obligations 
     resulting from a sale of a commodity in a transaction in the 
     spot market for the commodity.
       ``(10) Electronic trading facility.--The term `electronic 
     trading facility' means a trading facility that--
       ``(A) operates by means of an electronic or 
     telecommunications network; and
       ``(B) maintains an automated audit trail of bids, offers, 
     and the matching of orders or the execution of transactions 
     on the facility.
       ``(11) Eligible commercial entity.--The term `eligible 
     commercial entity' means, with respect to an agreement, 
     contract or transaction in a commodity--
       ``(A) an eligible contract participant described in clause 
     (i), (ii), (v), (vii), (viii), or (ix) of paragraph (12)(A) 
     that, in connection with its business--
       ``(i) has a demonstrable ability, directly or through 
     separate contractual arrangements, to make or take delivery 
     of the underlying commodity;
       ``(ii) incurs risks, in addition to price risk, related to 
     the commodity; or
       ``(iii) is a dealer that regularly provides risk management 
     or hedging services to, or engages in market-making 
     activities with, the foregoing entities involving 
     transactions to purchase or sell the commodity or derivative 
     agreements, contracts, or transactions in the commodity;
       ``(B) an eligible contract participant, other than a 
     natural person or an instrumentality, department, or agency 
     of a State or local governmental entity, that--
       ``(i) regularly enters into transactions to purchase or 
     sell the commodity or derivative agreements, contracts, or 
     transactions in the commodity; and
       ``(ii) either--

       ``(I) in the case of a collective investment vehicle whose 
     participants include persons other than--

       ``(aa) qualified eligible persons, as defined in Commission 
     rule 4.7(a) (17 C.F.R. 4.7(a));
       ``(bb) accredited investors, as defined in Regulation D of 
     the Securities and Exchange Commission under the Securities 
     Act of 1933 (17 C.F.R. 230.501(a)), with total assets of 
     $2,000,000; or
       ``(cc) qualified purchasers, as defined in section 
     2(a)(51)(A) of the Investment Company Act of 1940;

     in each case as in effect on the date of the enactment of the 
     Commodity Futures Modernization Act of 2000, has, or is one 
     of a group of vehicles under common control or management 
     having in the aggregate, $1,000,000,000 in total assets; or
       ``(II) in the case of other persons, has, or is one of a 
     group of persons under common control or management having in 
     the aggregate, $100,000,000 in total assets; or

       ``(C) such other persons as the Commission shall determine 
     appropriate and shall designate by rule, regulation, or 
     order.
       ``(12) Eligible contract participant.--The term `eligible 
     contract participant' means--
       ``(A) acting for its own account--
       ``(i) a financial institution;
       ``(ii) an insurance company that is regulated by a State, 
     or that is regulated by a foreign government and is subject 
     to comparable regulation as determined by the Commission, 
     including a regulated subsidiary or affiliate of such an 
     insurance company;
       ``(iii) an investment company subject to regulation under 
     the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.) 
     or a foreign person performing a similar role or function 
     subject as such to foreign regulation (regardless of whether 
     each investor in the investment company or the foreign person 
     is itself an eligible contract participant);
       ``(iv) a commodity pool that--

       ``(I) has total assets exceeding $5,000,000; and
       ``(II) is formed and operated by a person subject to 
     regulation under this Act or a foreign

[[Page 26898]]

     person performing a similar role or function subject as such 
     to foreign regulation (regardless of whether each investor in 
     the commodity pool or the foreign person is itself an 
     eligible contract participant);

       ``(v) a corporation, partnership, proprietorship, 
     organization, trust, or other entity--

       ``(I) that has total assets exceeding $10,000,000;
       ``(II) the obligations of which under an agreement, 
     contract, or transaction are guaranteed or otherwise 
     supported by a letter of credit or keepwell, support, or 
     other agreement by an entity described in subclause (I), in 
     clause (i), (ii), (iii), (iv), or (vii), or in subparagraph 
     (C); or
       ``(III) that--

       ``(aa) has a net worth exceeding $1,000,000; and
       ``(bb) enters into an agreement, contract, or transaction 
     in connection with the conduct of the entity's business or to 
     manage the risk associated with an asset or liability owned 
     or incurred or reasonably likely to be owned or incurred by 
     the entity in the conduct of the entity's business;
       ``(vi) an employee benefit plan subject to the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1001 et 
     seq.), a governmental employee benefit plan, or a foreign 
     person performing a similar role or function subject as such 
     to foreign regulation--

       ``(I) that has total assets exceeding $5,000,000; or
       ``(II) the investment decisions of which are made by--

       ``(aa) an investment adviser or commodity trading advisor 
     subject to regulation under the Investment Advisers Act of 
     1940 (15 U.S.C. 80b-1 et seq.) or this Act;
       ``(bb) a foreign person performing a similar role or 
     function subject as such to foreign regulation;
       ``(cc) a financial institution; or
       ``(dd) an insurance company described in clause (ii), or a 
     regulated subsidiary or affiliate of such an insurance 
     company;
       ``(vii)(I) a governmental entity (including the United 
     States, a State, or a foreign government) or political 
     subdivision of a governmental entity;
       ``(II) a multinational or supranational government entity; 
     or
       ``(III) an instrumentality, agency, or department of an 
     entity described in subclause (I) or (II);

     except that such term does not include an entity, 
     instrumentality, agency, or department referred to in 
     subclause (I) or (III) of this clause unless (aa) the entity, 
     instrumentality, agency, or department is a person described 
     in clause (i), (ii), or (iii) of section 1a(11)(A); (bb) the 
     entity, instrumentality, agency, or department owns and 
     invests on a discretionary basis $25,000,000 or more in 
     investments; or (cc) the agreement, contract, or transaction 
     is offered by, and entered into with, an entity that is 
     listed in any of subclauses (I) through (VI) of section 
     2(c)(2)(B)(ii);
       ``(viii)(I) a broker or dealer subject to regulation under 
     the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
     or a foreign person performing a similar role or function 
     subject as such to foreign regulation, except that, if the 
     broker or dealer or foreign person is a natural person or 
     proprietorship, the broker or dealer or foreign person shall 
     not be considered to be an eligible contract participant 
     unless the broker or dealer or foreign person also meets the 
     requirements of clause (v) or (xi);
       ``(II) an associated person of a registered broker or 
     dealer concerning the financial or securities activities of 
     which the registered person makes and keeps records under 
     section 15C(b) or 17(h) of the Securities Exchange Act of 
     1934 (15 U.S.C. 78o-5(b), 78q(h));
       ``(III) an investment bank holding company (as defined in 
     section 17(i) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78q(i));
       ``(ix) a futures commission merchant subject to regulation 
     under this Act or a foreign person performing a similar role 
     or function subject as such to foreign regulation, except 
     that, if the futures commission merchant or foreign person is 
     a natural person or proprietorship, the futures commission 
     merchant or foreign person shall not be considered to be an 
     eligible contract participant unless the futures commission 
     merchant or foreign person also meets the requirements of 
     clause (v) or (xi);
       ``(x) a floor broker or floor trader subject to regulation 
     under this Act in connection with any transaction that takes 
     place on or through the facilities of a registered entity or 
     an exempt board of trade, or any affiliate thereof, on which 
     such person regularly trades; or
       ``(xi) an individual who has total assets in an amount in 
     excess of--

       ``(I) $10,000,000; or
       ``(II) $5,000,000 and who enters into the agreement, 
     contract, or transaction in order to manage the risk 
     associated with an asset owned or liability incurred, or 
     reasonably likely to be owned or incurred, by the individual;

       ``(B)(i) a person described in clause (i), (ii), (iv), (v), 
     (viii), (ix), or (x) of subparagraph (A) or in subparagraph 
     (C), acting as broker or performing an equivalent agency 
     function on behalf of another person described in 
     subparagraph (A) or (C); or
       ``(ii) an investment adviser subject to regulation under 
     the Investment Advisers Act of 1940, a commodity trading 
     advisor subject to regulation under this Act, a foreign 
     person performing a similar role or function subject as such 
     to foreign regulation, or a person described in clause (i), 
     (ii), (iv), (v), (viii), (ix), or (x) of subparagraph (A) or 
     in subparagraph (C), in any such case acting as investment 
     manager or fiduciary (but excluding a person acting as broker 
     or performing an equivalent agency function) for another 
     person described in subparagraph (A) or (C) and who is 
     authorized by such person to commit such person to the 
     transaction; or
       ``(C) any other person that the Commission determines to be 
     eligible in light of the financial or other qualifications of 
     the person.
       ``(13) Excluded commodity.--The term `excluded commodity' 
     means--
       ``(i) an interest rate, exchange rate, currency, security, 
     security index, credit risk or measure, debt or equity 
     instrument, index or measure of inflation, or other 
     macroeconomic index or measure;
       ``(ii) any other rate, differential, index, or measure of 
     economic or commercial risk, return, or value that is--

       ``(I) not based in substantial part on the value of a 
     narrow group of commodities not described in clause (i); or
       ``(II) based solely on 1 or more commodities that have no 
     cash market;

       ``(iii) any economic or commercial index based on prices, 
     rates, values, or levels that are not within the control of 
     any party to the relevant contract, agreement, or 
     transaction; or
       ``(iv) an occurrence, extent of an occurrence, or 
     contingency (other than a change in the price, rate, value, 
     or level of a commodity not described in clause (i)) that 
     is--

       ``(I) beyond the control of the parties to the relevant 
     contract, agreement, or transaction; and
       ``(II) associated with a financial, commercial, or economic 
     consequence.

       ``(14) Exempt commodity.--The term `exempt commodity' means 
     a commodity that is not an excluded commodity or an 
     agricultural commodity.
       ``(15) Financial institution.--The term `financial 
     institution' means--
       ``(A) a corporation operating under the fifth undesignated 
     paragraph of section 25 of the Federal Reserve Act (12 U.S.C. 
     603), commonly known as `an agreement corporation';
       ``(B) a corporation organized under section 25A of the 
     Federal Reserve Act (12 U.S.C. 611 et seq.), commonly known 
     as an `Edge Act corporation';
       ``(C) an institution that is regulated by the Farm Credit 
     Administration;
       ``(D) a Federal credit union or State credit union (as 
     defined in section 101 of the Federal Credit Union Act (12 
     U.S.C. 1752));
       ``(E) a depository institution (as defined in section 3 of 
     the Federal Deposit Insurance Act (12 U.S.C. 1813));
       ``(F) a foreign bank or a branch or agency of a foreign 
     bank (each as defined in section 1(b) of the International 
     Banking Act of 1978 (12 U.S.C. 3101(b)));
       ``(G) any financial holding company (as defined in section 
     2 of the Bank Holding Company Act of 1956);
       ``(H) a trust company; or
       ``(I) a similarly regulated subsidiary or affiliate of an 
     entity described in any of subparagraphs (A) through (H).'';
       (5) by inserting after paragraph (20) (as redesignated by 
     paragraph (1)) the following:
       ``(21) Hybrid instrument.--The term `hybrid instrument' 
     means a security having 1 or more payments indexed to the 
     value, level, or rate of, or providing for the delivery of, 1 
     or more commodities.'';
       (6) by striking paragraph (24) (as redesignated by 
     paragraph (1)) and inserting the following:
       ``(24) Member of a contract market; member of a derivatives 
     transaction execution facility.--The term `member' means, 
     with respect to a contract market or derivatives transaction 
     execution facility, an individual, association, partnership, 
     corporation, or trust--
       ``(A) owning or holding membership in, or admitted to 
     membership representation on, the contract market or 
     derivatives transaction execution facility; or
       ``(B) having trading privileges on the contract market or 
     derivatives transaction execution facility.
       ``(25) Narrow-based security index.--
       ``(A) The term `narrow-based security index' means an 
     index--
       ``(i) that has 9 or fewer component securities;
       ``(ii) in which a component security comprises more than 30 
     percent of the index's weighting;
       ``(iii) in which the 5 highest weighted component 
     securities in the aggregate comprise more than 60 percent of 
     the index's weighting; or
       ``(iv) in which the lowest weighted component securities 
     comprising, in the aggregate, 25 percent of the index's 
     weighting have an aggregate dollar value of average daily 
     trading volume of less than $50,000,000 (or in the case of an 
     index with 15 or more component securities, $30,000,000), 
     except that if there are two or more securities with equal 
     weighting that could be included in the calculation of the 
     lowest weighted component securities comprising, in the 
     aggregate, 25 percent of the index's weighting, such 
     securities shall be ranked from lowest to highest dollar 
     value of average daily trading volume and shall be included 
     in the calculation based on their ranking starting with the 
     lowest ranked security.
       ``(B) Notwithstanding subparagraph (A), an index is not a 
     narrow-based security index if--
       ``(i)(I) it has at least 9 component securities;
       ``(II) no component security comprises more than 30 percent 
     of the index's weighting; and
       ``(III) each component security is--

       ``(aa) registered pursuant to section 12 of the Securities 
     Exchange Act of 1934;
       ``(bb) 1 of 750 securities with the largest market 
     capitalization; and

[[Page 26899]]

       ``(cc) 1 of 675 securities with the largest dollar value of 
     average daily trading volume;

       ``(ii) a board of trade was designated as a contract market 
     by the Commodity Futures Trading Commission with respect to a 
     contract of sale for future delivery on the index, before the 
     date of enactment of the Commodity Futures Modernization Act 
     of 2000;
       ``(iii)(I) a contract of sale for future delivery on the 
     index traded on a designated contract market or registered 
     derivatives transaction execution facility for at least 30 
     days as a contract of sale for future delivery on an index 
     that was not a narrow-based security index; and
       ``(II) it has been a narrow-based security index for no 
     more than 45 business days over 3 consecutive calendar 
     months;
       ``(iv) a contract of sale for future delivery on the index 
     is traded on or subject to the rules of a foreign board of 
     trade and meets such requirements as are jointly established 
     by rule or regulation by the Commission and the Securities 
     and Exchange Commission;
       ``(v) no more than 18 months have passed since the date of 
     enactment of the Commodity Futures Modernization Act of 2000 
     and--

       ``(I) it is traded on or subject to the rules of a foreign 
     board of trade;
       ``(II) the offer and sale in the United States of a 
     contract of sale for future delivery on the index was 
     authorized before the date of the enactment of the Commodity 
     Futures Modernization Act of 2000; and
       ``(III) the conditions of such authorization continue to be 
     met; or

       ``(vi) a contract of sale for future delivery on the index 
     is traded on or subject to the rules of a board of trade and 
     meets such requirements as are jointly established by rule, 
     regulation, or order by the Commission and the Securities and 
     Exchange Commission.
       ``(C) Within 1 year after the date of the enactment of the 
     Commodity Futures Modernization Act of 2000, the Commission 
     and the Securities and Exchange Commission jointly shall 
     adopt rules or regulations that set forth the requirements 
     under subparagraph (B)(iv).
       ``(D) An index that is a narrow-based security index solely 
     because it was a narrow-based security index for more than 45 
     business days over 3 consecutive calendar months pursuant to 
     clause (iii) of subparagraph (B) shall not be a narrow-based 
     security index for the 3 following calendar months.
       ``(E) For purposes of subparagraphs (A) and (B)--
       ``(i) the dollar value of average daily trading volume and 
     the market capitalization shall be calculated as of the 
     preceding 6 full calendar months; and
       ``(ii) the Commission and the Securities and Exchange 
     Commission shall, by rule or regulation, jointly specify the 
     method to be used to determine market capitalization and 
     dollar value of average daily trading volume.
       ``(26) Option.--The term `option' means an agreement, 
     contract, or transaction that is of the character of, or is 
     commonly known to the trade as, an `option', `privilege', 
     `indemnity', `bid', `offer', `put', `call', `advance 
     guaranty', or `decline guaranty'.
       ``(27) Organized exchange.--The term `organized exchange' 
     means a trading facility that--
       ``(A) permits trading--
       ``(i) by or on behalf of a person that is not an eligible 
     contract participant; or
       ``(ii) by persons other than on a principal-to-principal 
     basis; or
       ``(B) has adopted (directly or through another 
     nongovernmental entity) rules that--
       ``(i) govern the conduct of participants, other than rules 
     that govern the submission of orders or execution of 
     transactions on the trading facility; and
       ``(ii) include disciplinary sanctions other than the 
     exclusion of participants from trading.''; and
       (7) by adding at the end the following:
       ``(29) Registered entity.--The term `registered entity' 
     means--
       ``(A) a board of trade designated as a contract market 
     under section 5;
       ``(B) a derivatives transaction execution facility 
     registered under section 5a;
       ``(C) a derivatives clearing organization registered under 
     section 5b; and
       ``(D) a board of trade designated as a contract market 
     under section 5f.
       ``(30) Security.--The term `security' means a security as 
     defined in section 2(a)(1) of the Securities Act of 1933 (15 
     U.S.C. 77b(a)(1)) or section 3(a)(10) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78c(a)(10)).
       ``(31) Security future.--The term `security future' means a 
     contract of sale for future delivery of a single security or 
     of a narrow-based security index, including any interest 
     therein or based on the value thereof, except an exempted 
     security under section 3(a)(12) of the Securities Exchange 
     Act of 1934 as in effect on the date of enactment of the 
     Futures Trading Act of 1982 (other than any municipal 
     security as defined in section 3(a)(29) of the Securities 
     Exchange Act of 1934 as in effect on the date of enactment of 
     the Futures Trading Act of 1982). The term `security future' 
     does not include any agreement, contract, or transaction 
     excluded from this Act under section 2(c), 2(d), 2(f), or 
     2(g) of this Act (as in effect on the date of the enactment 
     of the Commodity Futures Modernization Act of 2000) or title 
     IV of the Commodity Futures Modernization Act of 2000.
       ``(32) Security futures product.--The term `security 
     futures product' means a security future or any put, call, 
     straddle, option, or privilege on any security future.
       ``(33) Trading facility.--
       ``(A) In general.--The term `trading facility' means a 
     person or group of persons that constitutes, maintains, or 
     provides a physical or electronic facility or system in which 
     multiple participants have the ability to execute or trade 
     agreements, contracts, or transactions by accepting bids and 
     offers made by other participants that are open to multiple 
     participants in the facility or system.
       ``(B) Exclusions.--The term `trading facility' does not 
     include--
       ``(i) a person or group of persons solely because the 
     person or group of persons constitutes, maintains, or 
     provides an electronic facility or system that enables 
     participants to negotiate the terms of and enter into 
     bilateral transactions as a result of communications 
     exchanged by the parties and not from interaction of multiple 
     bids and multiple offers within a predetermined, 
     nondiscretionary automated trade matching and execution 
     algorithm;
       ``(ii) a government securities dealer or government 
     securities broker, to the extent that the dealer or broker 
     executes or trades agreements, contracts, or transactions in 
     government securities, or assists persons in communicating 
     about, negotiating, entering into, executing, or trading an 
     agreement, contract, or transaction in government securities 
     (as the terms `government securities dealer', `government 
     securities broker', and `government securities' are defined 
     in section 3(a) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78c(a))); or
       ``(iii) facilities on which bids and offers, and 
     acceptances of bids and offers effected on the facility, are 
     not binding.
     Any person, group of persons, dealer, broker, or facility 
     described in clause (i) or (ii) is excluded from the meaning 
     of the term `trading facility' for the purposes of this Act 
     without any prior specific approval, certification, or other 
     action by the Commission.
       ``(C) Special rule.--A person or group of persons that 
     would not otherwise constitute a trading facility shall not 
     be considered to be a trading facility solely as a result of 
     the submission to a derivatives clearing organization of 
     transactions executed on or through the person or group of 
     persons.''.

     SEC. 102. AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN FOREIGN 
                   CURRENCY, GOVERNMENT SECURITIES, AND CERTAIN 
                   OTHER COMMODITIES.

       Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3, 
     4, 4a) is amended by adding at the end the following:
       ``(c) Agreements, Contracts, and Transactions in Foreign 
     Currency, Government Securities, and Certain Other 
     Commodities.--
       ``(1) In general.--Except as provided in paragraph (2), 
     nothing in this Act (other than section 5a (to the extent 
     provided in section 5a(g)), 5b, 5d, or 12(e)(2)(B)) governs 
     or applies to an agreement, contract, or transaction in--
       ``(A) foreign currency;
       ``(B) government securities;
       ``(C) security warrants;
       ``(D) security rights;
       ``(E) resales of installment loan contracts;
       ``(F) repurchase transactions in an excluded commodity; or
       ``(G) mortgages or mortgage purchase commitments.
       ``(2) Commission jurisdiction.--
       ``(A) Agreements, contracts, and transactions traded on an 
     organized exchange.--This Act applies to, and the Commission 
     shall have jurisdiction over, an agreement, contract, or 
     transaction described in paragraph (1) that is--
       ``(i) a contract of sale of a commodity for future delivery 
     (or an option on such a contract), or an option on a 
     commodity (other than foreign currency or a security or a 
     group or index of securities), that is executed or traded on 
     an organized exchange; or
       ``(ii) an option on foreign currency executed or traded on 
     an organized exchange that is not a national securities 
     exchange registered pursuant to section 6(a) of the 
     Securities Exchange Act of 1934.
       ``(B) Agreements, contracts, and transactions in retail 
     foreign currency.--This Act applies to, and the Commission 
     shall have jurisdiction over, an agreement, contract, or 
     transaction in foreign currency that--
       ``(i) is a contract of sale of a commodity for future 
     delivery (or an option on such a contract) or an option 
     (other than an option executed or traded on a national 
     securities exchange registered pursuant to section 6(a) of 
     the Securities Exchange Act of 1934); and
       ``(ii) is offered to, or entered into with, a person that 
     is not an eligible contract participant, unless the 
     counterparty, or the person offering to be the counterparty, 
     of the person is--

       ``(I) a financial institution;
       ``(II) a broker or dealer registered under section 15(b) or 
     15C of the Securities Exchange Act of 1934 (15 U.S.C. 78o(b), 
     78o-5) or a futures commission merchant registered under this 
     Act;
       ``(III) an associated person of a broker or dealer 
     registered under section 15(b) or 15C of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78o(b), 78o-5), or an 
     affiliated person of a futures commission merchant registered 
     under this Act, concerning the financial or securities 
     activities of which the registered person makes and keeps 
     records under section 15C(b) or 17(h) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78o-5(b), 78q(h)) or section 
     4f(c)(2)(B) of this Act;
       ``(IV) an insurance company described in section 
     1a(12)(A)(ii) of this Act, or a regulated subsidiary or 
     affiliate of such an insurance company;

[[Page 26900]]

       ``(V) a financial holding company (as defined in section 2 
     of the Bank Holding Company Act of 1956); or
       ``(VI) an investment bank holding company (as defined in 
     section 17(i) of the Securities Exchange Act of 1934).

       ``(C) Notwithstanding subclauses (II) and (III) of 
     subparagraph (B)(ii), agreements, contracts, or transactions 
     described in subparagraph (B) shall be subject to sections 
     4b, 4c(b), 6(c) and 6(d) (to the extent that sections 6(c) 
     and 6(d) prohibit manipulation of the market price of any 
     commodity, in interstate commerce, or for future delivery on 
     or subject to the rules of any market), 6c, 6d, and 8(a) if 
     they are entered into by a futures commission merchant or an 
     affiliate of a futures commission merchant that is not also 
     an entity described in subparagraph (B)(ii) of this 
     paragraph.''.

     SEC. 103. LEGAL CERTAINTY FOR EXCLUDED DERIVATIVE 
                   TRANSACTIONS.

       Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3, 
     4, 4a) is further amended by adding at the end the following:
       ``(d) Excluded Derivative Transactions.--
       ``(1) In general.--Nothing in this Act (other than section 
     5b or 12(e)(2)(B)) governs or applies to an agreement, 
     contract, or transaction in an excluded commodity if--
       ``(A) the agreement, contract, or transaction is entered 
     into only between persons that are eligible contract 
     participants at the time at which the persons enter into the 
     agreement, contract, or transaction; and
       ``(B) the agreement, contract, or transaction is not 
     executed or traded on a trading facility.
       ``(2) Electronic trading facility exclusion.--Nothing in 
     this Act (other than section 5a (to the extent provided in 
     section 5a(g)), 5b, 5d, or 12(e)(2)(B)) governs or applies to 
     an agreement, contract, or transaction in an excluded 
     commodity if--
       ``(A) the agreement, contract, or transaction is entered 
     into on a principal-to-principal basis between parties 
     trading for their own accounts or as described in section 
     1a(12)(B)(ii);
       ``(B) the agreement, contract, or transaction is entered 
     into only between persons that are eligible contract 
     participants described in subparagraph (A), (B)(ii), or (C) 
     of section 1a(12)) at the time at which the persons enter 
     into the agreement, contract, or transaction; and
       ``(C) the agreement, contract, or transaction is executed 
     or traded on an electronic trading facility.''.

     SEC. 104. EXCLUDED ELECTRONIC TRADING FACILITIES.

       Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3, 
     4, 4a) is further amended by adding at the end the following:
       ``(e) Excluded Electronic Trading Facilities.--
       ``(1) In general.--Nothing in this Act (other than section 
     12(e)(2)(B)) governs or is applicable to an electronic 
     trading facility that limits transactions authorized to be 
     conducted on its facilities to those satisfying the 
     requirements of section 2(d)(2), 2(g), or 2(h)(3).
       ``(2) Effect on authority to establish and operate.--
     Nothing in this Act shall prohibit a board of trade 
     designated by the Commission as a contract market or 
     derivatives transaction execution facility, or operating as 
     an exempt board of trade from establishing and operating an 
     electronic trading facility excluded under this Act pursuant 
     to paragraph (1).
       ``(3) Effect on transactions.--No failure by an electronic 
     trading facility to limit transactions as required by 
     paragraph (1) of this subsection or to comply with section 
     2(h)(5) shall in itself affect the legality, validity, or 
     enforceability of an agreement, contract, or transaction 
     entered into or traded on the electronic trading facility or 
     cause a participant on the system to be in violation of this 
     Act.
       ``(4) Special rule.--A person or group of persons that 
     would not otherwise constitute a trading facility shall not 
     be considered to be a trading facility solely as a result of 
     the submission to a derivatives clearing organization of 
     transactions executed on or through the person or group of 
     persons.''.

     SEC. 105. HYBRID INSTRUMENTS; SWAP TRANSACTIONS.

       (a) Hybrid Instruments.--Section 2 of the Commodity 
     Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) is further amended by 
     adding at the end the following:
       ``(f) Exclusion for Qualifying Hybrid Instruments.--
       ``(1) In general.--Nothing in this Act (other than section 
     12(e)(2)(B)) governs or is applicable to a hybrid instrument 
     that is predominantly a security.
       ``(2) Predominance.--A hybrid instrument shall be 
     considered to be predominantly a security if--
       ``(A) the issuer of the hybrid instrument receives payment 
     in full of the purchase price of the hybrid instrument, 
     substantially contemporaneously with delivery of the hybrid 
     instrument;
       ``(B) the purchaser or holder of the hybrid instrument is 
     not required to make any payment to the issuer in addition to 
     the purchase price paid under subparagraph (A), whether as 
     margin, settlement payment, or otherwise, during the life of 
     the hybrid instrument or at maturity;
       ``(C) the issuer of the hybrid instrument is not subject by 
     the terms of the instrument to mark-to-market margining 
     requirements; and
       ``(D) the hybrid instrument is not marketed as a contract 
     of sale of a commodity for future delivery (or option on such 
     a contract) subject to this Act.
       ``(3) Mark-to-market margining requirements.--For the 
     purposes of paragraph (2)(C), mark-to-market margining 
     requirements do not include the obligation of an issuer of a 
     secured debt instrument to increase the amount of collateral 
     held in pledge for the benefit of the purchaser of the 
     secured debt instrument to secure the repayment obligations 
     of the issuer under the secured debt instrument.''.
       (b) Swap Transactions.--Section 2 of the Commodity Exchange 
     Act (7 U.S.C. 2, 2a, 3, 4, 4a) is further amended by adding 
     at the end the following:
       ``(g) Excluded Swap Transactions.--No provision of this Act 
     (other than section 5a (to the extent provided in section 
     5a(g)), 5b, 5d, or 12(e)(2)) shall apply to or govern any 
     agreement, contract, or transaction in a commodity other than 
     an agricultural commodity if the agreement, contract, or 
     transaction is--
       ``(1) entered into only between persons that are eligible 
     contract participants at the time they enter into the 
     agreement, contract, or transaction;
       ``(2) subject to individual negotiation by the parties; and
       ``(3) not executed or traded on a trading facility.''.
       (c) Study Regarding Retail Swaps.--
       (1) In general.--The Board of Governors of the Federal 
     Reserve System, the Secretary of the Treasury, the Commodity 
     Futures Trading Commission, and the Securities and Exchange 
     Commission shall conduct a study of issues involving the 
     offering of swap agreements to persons other than eligible 
     contract participants (as defined in section 1a of the 
     Commodity Exchange Act).
       (2) Matters to be addressed.--The study shall address--
       (A) the potential uses of swap agreements by persons other 
     than eligible contract participants;
       (B) the extent to which financial institutions are willing 
     to offer swap agreements to persons other than eligible 
     contract participants;
       (C) the appropriate regulatory structure to address 
     customer protection issues that may arise in connection with 
     the offer of swap agreements to persons other than eligible 
     contract participants; and
       (D) such other relevant matters deemed necessary or 
     appropriate to address.
       (3) Report.--Before the end of the 1-year period beginning 
     on the date of enactment of this Act, a report on the 
     findings and conclusions of the study required by paragraph 
     (1) shall be submitted to Congress, together with such 
     recommendations for legislative action as are deemed 
     necessary and appropriate.

     SEC. 106. TRANSACTIONS IN EXEMPT COMMODITIES.

       Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3, 
     4, 4a) is further amended by adding at the end the following.
       ``(h) Legal Certainty for Certain Transactions in Exempt 
     Commodities.--
       ``(1) Except as provided in paragraph (2), nothing in this 
     Act shall apply to a contract, agreement or transaction in an 
     exempt commodity which--
       ``(A) is entered into solely between persons that are 
     eligible contract participants at the time the persons enter 
     into the agreement, contract, or transaction; and
       ``(B) is not entered into on a trading facility.
       ``(2) An agreement, contract, or transaction described in 
     paragraph (1) of this subsection shall be subject to--
       ``(A) sections 5b and 12(e)(2)(B);
       ``(B) sections 4b, 4o, 6(c), 6(d), 6c, 6d, and 8a, and the 
     regulations of the Commission pursuant to section 4c(b) 
     proscribing fraud in connection with commodity option 
     transactions, to the extent the agreement, contract, or 
     transaction is not between eligible commercial entities 
     (unless 1 of the entities is an instrumentality, department, 
     or agency of a State or local governmental entity) and would 
     otherwise be subject to such sections and regulations; and
       ``(C) sections 6(c), 6(d), 6c, 6d, 8a, and 9(a)(2), to the 
     extent such sections prohibit manipulation of the market 
     price of any commodity in interstate commerce and the 
     agreement, contract, or transaction would otherwise be 
     subject to such sections.
       ``(3) Except as provided in paragraph (4), nothing in this 
     Act shall apply to an agreement, contract, or transaction in 
     an exempt commodity which is--
       ``(A) entered into on a principal-to-principal basis solely 
     between persons that are eligible commercial entities at the 
     time the persons enter into the agreement, contract, or 
     transaction; and
       ``(B) executed or traded on an electronic trading facility.
       ``(4) An agreement, contract, or transaction described in 
     paragraph (3) of this subsection shall be subject to--
       ``(A) sections 5a (to the extent provided in section 
     5a(g)), 5b, 5d, and 12(e)(2)(B);
       ``(B) sections 4b and 4o and the regulations of the 
     Commission pursuant to section 4c(b) proscribing fraud in 
     connection with commodity option transactions to the extent 
     the agreement, contract, or transaction would otherwise be 
     subject to such sections and regulations;
       ``(C) sections 6(c) and 9(a)(2), to the extent such 
     sections prohibit manipulation of the market price of any 
     commodity in interstate commerce and to the extent the 
     agreement, contract, or transaction would otherwise be 
     subject to such sections; and
       ``(D) such rules and regulations as the Commission may 
     prescribe if necessary to ensure timely dissemination by the 
     electronic trading facility of price, trading volume, and 
     other trading data to the extent appropriate, if the 
     Commission determines that the electronic trading

[[Page 26901]]

     facility performs a significant price discovery function for 
     transactions in the cash market for the commodity underlying 
     any agreement, contract, or transaction executed or traded on 
     the electronic trading facility.
       ``(5) An electronic trading facility relying on the 
     exemption provided in paragraph (3) shall--
       ``(A) notify the Commission of its intention to operate an 
     electronic trading facility in reliance on the exemption set 
     forth in paragraph (3), which notice shall include--
       ``(i) the name and address of the facility and a person 
     designated to receive communications from the Commission;
       ``(ii) the commodity categories that the facility intends 
     to list or otherwise make available for trading on the 
     facility in reliance on the exemption set forth in paragraph 
     (3);
       ``(iii) certifications that--

       ``(I) no executive officer or member of the governing board 
     of, or any holder of a 10 percent or greater equity interest 
     in, the facility is a person described in any of 
     subparagraphs (A) through (H) of section 8a(2);
       ``(II) the facility will comply with the conditions for 
     exemption under this paragraph; and
       ``(III) the facility will notify the Commission of any 
     material change in the information previously provided by the 
     facility to the Commission pursuant to this paragraph; and

       ``(iv) the identity of any derivatives clearing 
     organization to which the facility transmits or intends to 
     transmit transaction data for the purpose of facilitating the 
     clearance and settlement of transactions conducted on the 
     facility in reliance on the exemption set forth in paragraph 
     (3);
       ``(B)(i)(I) provide the Commission with access to the 
     facility's trading protocols and electronic access to the 
     facility with respect to transactions conducted in reliance 
     on the exemption set forth in paragraph (3); or
       ``(II) provide such reports to the Commission regarding 
     transactions executed on the facility in reliance on the 
     exemption set forth in paragraph (3) as the Commission may 
     from time to time request to enable the Commission to satisfy 
     its obligations under this Act;
       ``(ii) maintain for 5 years, and make available for 
     inspection by the Commission upon request, records of 
     activities related to its business as an electronic trading 
     facility exempt under paragraph (3), including--
       ``(I) information relating to data entry and transaction 
     details sufficient to enable the Commission to reconstruct 
     trading activity on the facility conducted in reliance on the 
     exemption set forth in paragraph (3); and
       ``(II) the name and address of each participant on the 
     facility authorized to enter into transactions in reliance on 
     the exemption set forth in paragraph (3); and
       ``(iii) upon special call by the Commission, provide to the 
     Commission, in a form and manner and within the period 
     specified in the special call, such information related to 
     its business as an electronic trading facility exempt under 
     paragraph (3), including information relating to data entry 
     and transaction details in respect of transactions entered 
     into in reliance on the exemption set forth in paragraph (3), 
     as the Commission may determine appropriate--
       ``(I) to enforce the provisions specified in subparagraphs 
     (B) and (C) of paragraph (4);
       ``(II) to evaluate a systemic market event; or
       ``(III) to obtain information requested by a Federal 
     financial regulatory authority in order to enable the 
     regulator to fulfill its regulatory or supervisory 
     responsibilities;
       ``(C)(i) upon receipt of any subpoena issued by or on 
     behalf of the Commission to any foreign person who the 
     Commission believes is conducting or has conducted 
     transactions in reliance on the exemption set forth in 
     paragraph (3) on or through the electronic trading facility 
     relating to the transactions, promptly notify the foreign 
     person of, and transmit to the foreign person, the subpoena 
     in a manner reasonable under the circumstances, or as 
     specified by the Commission; and
       ``(ii) if the Commission has reason to believe that a 
     person has not timely complied with a subpoena issued by or 
     on behalf of the Commission pursuant to clause (i), and the 
     Commission in writing has directed that a facility relying on 
     the exemption set forth in paragraph (3) deny or limit 
     further transactions by the person, the facility shall deny 
     that person further trading access to the facility or, as 
     applicable, limit that person's access to the facility for 
     liquidation trading only;
       ``(D) comply with the requirements of this paragraph 
     applicable to the facility and require that each participant, 
     as a condition of trading on the facility in reliance on the 
     exemption set forth in paragraph (3), agree to comply with 
     all applicable law;
       ``(E) have a reasonable basis for believing that 
     participants authorized to conduct transactions on the 
     facility in reliance on the exemption set forth in paragraph 
     (3) are eligible commercial entities; and
       ``(F) not represent to any person that the facility is 
     registered with, or designated, recognized, licensed or 
     approved by the Commission.
       ``(6) A person named in a subpoena referred to in paragraph 
     (5)(C) that believes the person is or may be adversely 
     affected or aggrieved by action taken by the Commission under 
     this section, shall have the opportunity for a prompt hearing 
     after the Commission acts under procedures that the 
     Commission shall establish by rule, regulation, or order.''.

     SEC. 107. APPLICATION OF COMMODITY FUTURES LAWS.

       Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3, 
     4, 4a) is further amended by adding at the end the following:
       ``(i) Application of Commodity Futures Laws.--
       ``(1) No provision of this Act shall be construed as 
     implying or creating any presumption that--
       ``(A) any agreement, contract, or transaction that is 
     excluded from this Act under section 2(c), 2(d), 2(e), 2(f), 
     or 2(g) of this Act or title IV of the Commodity Futures 
     Modernization Act of 2000, or exempted under section 2(h) or 
     4(c) of this Act; or
       ``(B) any agreement, contract, or transaction, not 
     otherwise subject to this Act, that is not so excluded or 
     exempted,
     is or would otherwise be subject to this Act.
       ``(2) No provision of, or amendment made by, the Commodity 
     Futures Modernization Act of 2000 shall be construed as 
     conferring jurisdiction on the Commission with respect to any 
     such agreement, contract, or transaction, except as expressly 
     provided in section 5a of this Act (to the extent provided in 
     section 5a(g) of this Act), 5b of this Act, or 5d of this 
     Act.''.

     SEC. 108. PROTECTION OF THE PUBLIC INTEREST.

       The Commodity Exchange Act is amended by striking section 3 
     (7 U.S.C. 5) and inserting the following:

     ``SEC. 3. FINDINGS AND PURPOSE.

       ``(a) Findings.--The transactions subject to this Act are 
     entered into regularly in interstate and international 
     commerce and are affected with a national public interest by 
     providing a means for managing and assuming price risks, 
     discovering prices, or disseminating pricing information 
     through trading in liquid, fair and financially secure 
     trading facilities.
       ``(b) Purpose.--It is the purpose of this Act to serve the 
     public interests described in subsection (a) through a system 
     of effective self-regulation of trading facilities, clearing 
     systems, market participants and market professionals under 
     the oversight of the Commission. To foster these public 
     interests, it is further the purpose of this Act to deter and 
     prevent price manipulation or any other disruptions to market 
     integrity; to ensure the financial integrity of all 
     transactions subject to this Act and the avoidance of 
     systemic risk; to protect all market participants from 
     fraudulent or other abusive sales practices and misuses of 
     customer assets; and to promote responsible innovation and 
     fair competition among boards of trade, other markets and 
     market participants.''.

     SEC. 109. PROHIBITED TRANSACTIONS.

       Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) is 
     amended by striking ``Sec. 4c.'' and all that follows through 
     subsection (a) and inserting the following:

     ``SEC. 4C. PROHIBITED TRANSACTIONS.

       ``(a) In General.--
       ``(1) Prohibition.--It shall be unlawful for any person to 
     offer to enter into, enter into, or confirm the execution of 
     a transaction described in paragraph (2) involving the 
     purchase or sale of any commodity for future delivery (or any 
     option on such a transaction or option on a commodity) if the 
     transaction is used or may be used to--
       ``(A) hedge any transaction in interstate commerce in the 
     commodity or the product or byproduct of the commodity;
       ``(B) determine the price basis of any such transaction in 
     interstate commerce in the commodity; or
       ``(C) deliver any such commodity sold, shipped, or received 
     in interstate commerce for the execution of the transaction.
       ``(2) Transaction.--A transaction referred to in paragraph 
     (1) is a transaction that--
       ``(A)(i) is, is of the character of, or is commonly known 
     to the trade as, a `wash sale' or `accommodation trade'; or
       ``(ii) is a fictitious sale; or
       ``(B) is used to cause any price to be reported, 
     registered, or recorded that is not a true and bona fide 
     price.''.

     SEC. 110. DESIGNATION OF BOARDS OF TRADE AS CONTRACT MARKETS.

       The Commodity Exchange Act is amended--
       (1) by redesignating section 5b (7 U.S.C. 7b) as section 
     5e; and
       (2) by striking sections 5 and 5a (7 U.S.C. 7, 7a) and 
     inserting the following:

     ``SEC. 5. DESIGNATION OF BOARDS OF TRADE AS CONTRACT MARKETS.

       ``(a) Applications.--A board of trade applying to the 
     Commission for designation as a contract market shall submit 
     an application to the Commission that includes any relevant 
     materials and records the Commission may require consistent 
     with this Act.
       ``(b) Criteria for Designation.--
       ``(1) In general.--To be designated as a contract market, 
     the board of trade shall demonstrate to the Commission that 
     the board of trade meets the criteria specified in this 
     subsection.
       ``(2) Prevention of market manipulation.--The board of 
     trade shall have the capacity to prevent market manipulation 
     through market surveillance, compliance, and enforcement 
     practices and procedures, including methods for conducting 
     real-time monitoring of trading and comprehensive and 
     accurate trade reconstructions.
       ``(3) Fair and equitable trading.--The board of trade shall 
     establish and enforce trading rules to ensure fair and 
     equitable trading through the facilities of the contract 
     market, and the capacity to detect, investigate, and 
     discipline any person that violates the rules. The rules may 
     authorize--
       ``(A) transfer trades or office trades;
       ``(B) an exchange of--

[[Page 26902]]

       ``(i) futures in connection with a cash commodity 
     transaction;
       ``(ii) futures for cash commodities; or
       ``(iii) futures for swaps; or
       ``(C) a futures commission merchant, acting as principal or 
     agent, to enter into or confirm the execution of a contract 
     for the purchase or sale of a commodity for future delivery 
     if the contract is reported, recorded, or cleared in 
     accordance with the rules of the contract market or a 
     derivatives clearing organization.
       ``(4) Trade execution facility.--The board of trade shall--
       ``(A) establish and enforce rules defining, or 
     specifications detailing, the manner of operation of the 
     trade execution facility maintained by the board of trade, 
     including rules or specifications describing the operation of 
     any electronic matching platform; and
       ``(B) demonstrate that the trade execution facility 
     operates in accordance with the rules or specifications.
       ``(5) Financial integrity of transactions.--The board of 
     trade shall establish and enforce rules and procedures for 
     ensuring the financial integrity of transactions entered into 
     by or through the facilities of the contract market, 
     including the clearance and settlement of the transactions 
     with a derivatives clearing organization.
       ``(6) Disciplinary procedures.--The board of trade shall 
     establish and enforce disciplinary procedures that authorize 
     the board of trade to discipline, suspend, or expel members 
     or market participants that violate the rules of the board of 
     trade, or similar methods for performing the same functions, 
     including delegation of the functions to third parties.
       ``(7) Public access.--The board of trade shall provide the 
     public with access to the rules, regulations, and contract 
     specifications of the board of trade.
       ``(8) Ability to obtain information.--The board of trade 
     shall establish and enforce rules that will allow the board 
     of trade to obtain any necessary information to perform any 
     of the functions described in this subsection, including the 
     capacity to carry out such international information-sharing 
     agreements as the Commission may require.
       ``(c) Existing Contract Markets.--A board of trade that is 
     designated as a contract market on the date of the enactment 
     of the Commodity Futures Modernization Act of 2000 shall be 
     considered to be a designated contract market under this 
     section.
       ``(d) Core Principles for Contract Markets.--
       ``(1) In general.--To maintain the designation of a board 
     of trade as a contract market, the board of trade shall 
     comply with the core principles specified in this subsection. 
     The board of trade shall have reasonable discretion in 
     establishing the manner in which it complies with the core 
     principles.
       ``(2) Compliance with rules.--The board of trade shall 
     monitor and enforce compliance with the rules of the contract 
     market, including the terms and conditions of any contracts 
     to be traded and any limitations on access to the contract 
     market.
       ``(3) Contracts not readily subject to manipulation.--The 
     board of trade shall list on the contract market only 
     contracts that are not readily susceptible to manipulation.
       ``(4) Monitoring of trading.--The board of trade shall 
     monitor trading to prevent manipulation, price distortion, 
     and disruptions of the delivery or cash-settlement process.
       ``(5) Position limitations or accountability.--To reduce 
     the potential threat of market manipulation or congestion, 
     especially during trading in the delivery month, the board of 
     trade shall adopt position limitations or position 
     accountability for speculators, where necessary and 
     appropriate.
       ``(6) Emergency authority.--The board of trade shall adopt 
     rules to provide for the exercise of emergency authority, in 
     consultation or cooperation with the Commission, where 
     necessary and appropriate, including the authority to--
       ``(A) liquidate or transfer open positions in any contract;
       ``(B) suspend or curtail trading in any contract; and
       ``(C) require market participants in any contract to meet 
     special margin requirements.
       ``(7) Availability of general information.--The board of 
     trade shall make available to market authorities, market 
     participants, and the public information concerning--
       ``(A) the terms and conditions of the contracts of the 
     contract market; and
       ``(B) the mechanisms for executing transactions on or 
     through the facilities of the contract market.
       ``(8) Daily publication of trading information.--The board 
     of trade shall make public daily information on settlement 
     prices, volume, open interest, and opening and closing ranges 
     for actively traded contracts on the contract market.
       ``(9) Execution of transactions.--The board of trade shall 
     provide a competitive, open, and efficient market and 
     mechanism for executing transactions.
       ``(10) Trade information.--The board of trade shall 
     maintain rules and procedures to provide for the recording 
     and safe storage of all identifying trade information in a 
     manner that enables the contract market to use the 
     information for purposes of assisting in the prevention of 
     customer and market abuses and providing evidence of any 
     violations of the rules of the contract market.
       ``(11) Financial integrity of contracts.--The board of 
     trade shall establish and enforce rules providing for the 
     financial integrity of any contracts traded on the contract 
     market (including the clearance and settlement of the 
     transactions with a derivatives clearing organization), and 
     rules to ensure the financial integrity of any futures 
     commission merchants and introducing brokers and the 
     protection of customer funds.
       ``(12) Protection of market participants.--The board of 
     trade shall establish and enforce rules to protect market 
     participants from abusive practices committed by any party 
     acting as an agent for the participants.
       ``(13) Dispute resolution.--The board of trade shall 
     establish and enforce rules regarding and provide facilities 
     for alternative dispute resolution as appropriate for market 
     participants and any market intermediaries.
       ``(14) Governance fitness standards.--The board of trade 
     shall establish and enforce appropriate fitness standards for 
     directors, members of any disciplinary committee, members of 
     the contract market, and any other persons with direct access 
     to the facility (including any parties affiliated with any of 
     the persons described in this paragraph).
       ``(15) Conflicts of interest.--The board of trade shall 
     establish and enforce rules to minimize conflicts of interest 
     in the decisionmaking process of the contract market and 
     establish a process for resolving such conflicts of interest.
       ``(16) Composition of boards of mutually owned contract 
     markets.--In the case of a mutually owned contract market, 
     the board of trade shall ensure that the composition of the 
     governing board reflects market participants.
       ``(17) Recordkeeping.--The board of trade shall maintain 
     records of all activities related to the business of the 
     contract market in a form and manner acceptable to the 
     Commission for a period of 5 years.
       ``(18) Antitrust considerations.--Unless necessary or 
     appropriate to achieve the purposes of this Act, the board of 
     trade shall endeavor to avoid--
       ``(A) adopting any rules or taking any actions that result 
     in any unreasonable restraints of trade; or
       ``(B) imposing any material anticompetitive burden on 
     trading on the contract market.
       ``(e) Current Agricultural Commodities.--
       ``(1) Subject to paragraph (2) of this subsection, a 
     contract for purchase or sale for future delivery of an 
     agricultural commodity enumerated in section 1a(4) that is 
     available for trade on a contract market, as of the date of 
     the enactment of this subsection, may be traded only on a 
     contract market designated under this section.
       ``(2) In order to promote responsible economic or financial 
     innovation and fair competition, the Commission, on 
     application by any person, after notice and public comment 
     and opportunity for hearing, may prescribe rules and 
     regulations to provide for the offer and sale of contracts 
     for future delivery or options on such contracts to be 
     conducted on a derivatives transaction execution facility.''.

     SEC. 111. DERIVATIVES TRANSACTION EXECUTION FACILITIES.

       The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended 
     by inserting after section 5 (as amended by section 110(2)) 
     the following:

     ``SEC. 5A. DERIVATIVES TRANSACTION EXECUTION FACILITIES.

       ``(a) In General.--In lieu of compliance with the contract 
     market designation requirements of sections 4(a) and 5, a 
     board of trade may elect to operate as a registered 
     derivatives transaction execution facility if the facility 
     is--
       ``(1) designated as a contract market and meets the 
     requirements of this section; or
       ``(2) registered as a derivatives transaction execution 
     facility under subsection (c) of this section.
       ``(b) Requirements for Trading.--
       ``(1) In general.--A registered derivatives transaction 
     execution facility under subsection (a) may trade any 
     contract of sale of a commodity for future delivery (or 
     option on such a contract) on or through the facility only by 
     satisfying the requirements of this section.
       ``(2) Requirements for underlying commodities.--A 
     registered derivatives transaction execution facility may 
     trade any contract of sale of a commodity for future delivery 
     (or option on such a contract) only if--
       ``(A) the underlying commodity has a nearly inexhaustible 
     deliverable supply;
       ``(B) the underlying commodity has a deliverable supply 
     that is sufficiently large that the contract is highly 
     unlikely to be susceptible to the threat of manipulation;
       ``(C) the underlying commodity has no cash market;
       ``(D)(i) the contract is a security futures product, and 
     (ii) the registered derivatives transaction execution 
     facility is a national securities exchange registered under 
     the Securities Exchange Act of 1934;
       ``(E) the Commission determines, based on the market 
     characteristics, surveillance history, self-regulatory 
     record, and capacity of the facility that trading in the 
     contract (or option) is highly unlikely to be susceptible to 
     the threat of manipulation; or
       ``(F) except as provided in section 5(e)(2), the underlying 
     commodity is a commodity other than an agricultural commodity 
     enumerated in section 1a(4), and trading access to the 
     facility is limited to eligible commercial entities trading 
     for their own account.
       ``(3) Eligible traders.--To trade on a registered 
     derivatives transaction execution facility, a person shall--

[[Page 26903]]

       ``(A) be an eligible contract participant; or
       ``(B) be a person trading through a futures commission 
     merchant that--
       ``(i) is registered with the Commission;
       ``(ii) is a member of a futures self-regulatory 
     organization or, if the person trades only security futures 
     products on the facility, a national securities association 
     registered under section 15A(a) of the Securities Exchange 
     Act of 1934;
       ``(iii) is a clearing member of a derivatives clearing 
     organization; and
       ``(iv) has net capital of at least $20,000,000.
       ``(4) Trading by contract markets.--A board of trade that 
     is designated as a contract market shall, to the extent that 
     the contract market also operates a registered derivatives 
     transaction execution facility--
       ``(A) provide a physical location for the contract market 
     trading of the board of trade that is separate from trading 
     on the derivatives transaction execution facility of the 
     board of trade; or
       ``(B) if the board of trade uses the same electronic 
     trading system for trading on the contract market and 
     derivatives transaction execution facility of the board of 
     trade, identify whether the electronic trading is taking 
     place on the contract market or the derivatives transaction 
     execution facility.
       ``(c) Criteria for Registration.--
       ``(1) In general.--To be registered as a registered 
     derivatives transaction execution facility, the board of 
     trade shall be required to demonstrate to the Commission only 
     that the board of trade meets the criteria specified in 
     subsection (b) and this subsection.
       ``(2) Deterrence of abuses.--The board of trade shall 
     establish and enforce trading and participation rules that 
     will deter abuses and has the capacity to detect, 
     investigate, and enforce those rules, including means to--
       ``(A) obtain information necessary to perform the functions 
     required under this section; or
       ``(B) use technological means to--
       ``(i) provide market participants with impartial access to 
     the market; and
       ``(ii) capture information that may be used in establishing 
     whether rule violations have occurred.
       ``(3) Trading procedures.--The board of trade shall 
     establish and enforce rules or terms and conditions defining, 
     or specifications detailing, trading procedures to be used in 
     entering and executing orders traded on the facilities of the 
     board of trade. The rules may authorize--
       ``(A) transfer trades or office trades;
       ``(B) an exchange of--
       ``(i) futures in connection with a cash commodity 
     transaction;
       ``(ii) futures for cash commodities; or
       ``(iii) futures for swaps; or
       ``(C) a futures commission merchant, acting as principal or 
     agent, to enter into or confirm the execution of a contract 
     for the purchase or sale of a commodity for future delivery 
     if the contract is reported, recorded, or cleared in 
     accordance with the rules of the registered derivatives 
     transaction execution facility or a derivatives clearing 
     organization.
       ``(4) Financial integrity of transactions.--The board of 
     trade shall establish and enforce rules or terms and 
     conditions providing for the financial integrity of 
     transactions entered on or through the facilities of the 
     board of trade, and rules or terms and conditions to ensure 
     the financial integrity of any futures commission merchants 
     and introducing brokers and the protection of customer funds.
       ``(d) Core Principles for Registered Derivatives 
     Transaction Execution Facilities.--
       ``(1) In general.--To maintain the registration of a board 
     of trade as a derivatives transaction execution facility, a 
     board of trade shall comply with the core principles 
     specified in this subsection. The board of trade shall have 
     reasonable discretion in establishing the manner in which the 
     board of trade complies with the core principles.
       ``(2) Compliance with rules.--The board of trade shall 
     monitor and enforce the rules of the facility, including any 
     terms and conditions of any contracts traded on or through 
     the facility and any limitations on access to the facility.
       ``(3) Monitoring of trading.--The board of trade shall 
     monitor trading in the contracts of the facility to ensure 
     orderly trading in the contract and to maintain an orderly 
     market while providing any necessary trading information to 
     the Commission to allow the Commission to discharge the 
     responsibilities of the Commission under the Act.
       ``(4) Disclosure of general information.--The board of 
     trade shall disclose publicly and to the Commission 
     information concerning--
       ``(A) contract terms and conditions;
       ``(B) trading conventions, mechanisms, and practices;
       ``(C) financial integrity protections; and
       ``(D) other information relevant to participation in 
     trading on the facility.
       ``(5) Daily publication of trading information.--The board 
     of trade shall make public daily information on settlement 
     prices, volume, open interest, and opening and closing ranges 
     for contracts traded on the facility if the Commission 
     determines that the contracts perform a significant price 
     discovery function for transactions in the cash market for 
     the commodity underlying the contracts.
       ``(6) Fitness standards.--The board of trade shall 
     establish and enforce appropriate fitness standards for 
     directors, members of any disciplinary committee, members, 
     and any other persons with direct access to the facility, 
     including any parties affiliated with any of the persons 
     described in this paragraph.
       ``(7) Conflicts of interest.--The board of trade shall 
     establish and enforce rules to minimize conflicts of interest 
     in the decision making process of the derivatives transaction 
     execution facility and establish a process for resolving such 
     conflicts of interest.
       ``(8) Recordkeeping.--The board of trade shall maintain 
     records of all activities related to the business of the 
     derivatives transaction execution facility in a form and 
     manner acceptable to the Commission for a period of 5 years.
       ``(9) Antitrust considerations.--Unless necessary or 
     appropriate to achieve the purposes of this Act, the board of 
     trade shall endeavor to avoid--
       ``(A) adopting any rules or taking any actions that result 
     in any unreasonable restraint of trade; or
       ``(B) imposing any material anticompetitive burden on 
     trading on the derivatives transaction execution facility.
       ``(e) Use of Broker-Dealers, Depository Institutions, and 
     Farm Credit System Institutions as Intermediaries.--
       ``(1) In general.--With respect to transactions other than 
     transactions in security futures products, a registered 
     derivatives transaction execution facility may by rule allow 
     a broker-dealer, depository institution, or institution of 
     the Farm Credit System that meets the requirements of 
     paragraph (2) to--
       ``(A) act as an intermediary in transactions executed on 
     the facility on behalf of customers of the broker-dealer, 
     depository institution, or institution of the Farm Credit 
     System; and
       ``(B) receive funds of customers to serve as margin or 
     security for the transactions.
       ``(2) Requirements.--The requirements referred to in 
     paragraph (1) are that--
       ``(A) the broker-dealer be in good standing with the 
     Securities and Exchange Commission, or the depository 
     institution or institution of the Farm Credit System be in 
     good standing with Federal bank regulatory agencies 
     (including the Farm Credit Administration), as applicable; 
     and
       ``(B) if the broker-dealer, depository institution, or 
     institution of the Farm Credit System carries or holds 
     customer accounts or funds for transactions on the 
     derivatives transaction execution facility for more than 1 
     business day, the broker-dealer, depository institution, or 
     institution of the Farm Credit System is registered as a 
     futures commission merchant and is a member of a registered 
     futures association.
       ``(3) Implementation.--The Commission shall cooperate and 
     coordinate with the Securities and Exchange Commission, the 
     Secretary of the Treasury, and Federal banking regulatory 
     agencies (including the Farm Credit Administration) in 
     adopting rules and taking any other appropriate action to 
     facilitate the implementation of this subsection.
       ``(f) Segregation of Customer Funds.--Not later than 180 
     days after the date of the enactment of the Commodity Futures 
     Modernization Act of 2000, consistent with regulations 
     adopted by the Commission, a registered derivatives 
     transaction execution facility may authorize a futures 
     commission merchant to offer any customer of the futures 
     commission merchant that is an eligible contract participant 
     the right to not segregate the customer funds of the customer 
     that are carried with the futures commission merchant for 
     purposes of trading on or through the facilities of the 
     registered derivatives transaction execution facility.
       ``(g) Election To Trade Excluded and Exempt Commodities.--
       ``(1) In general.--Notwithstanding subsection (b)(2) of 
     this section, a board of trade that is or elects to become a 
     registered derivatives transaction execution facility may 
     trade on the facility any agreements, contracts, or 
     transactions involving excluded or exempt commodities other 
     than securities, except contracts of sale for future delivery 
     of exempt securities under section 3(a)(12) of the Securities 
     Exchange Act of 1934 as in effect on the date of enactment of 
     the Futures Trading Act of 1982, that are otherwise excluded 
     from this Act under section 2(c), 2(d), or 2(g) of this Act, 
     or exempt under section 2(h) of this Act.
       ``(2) Exclusive jurisdiction of the commission.--The 
     Commission shall have exclusive jurisdiction over agreements, 
     contracts, or transactions described in paragraph (1) to the 
     extent that the agreements, contracts, or transactions are 
     traded on a derivatives transaction execution facility.''.

     SEC. 112. DERIVATIVES CLEARING.

       (a) In General.--Subtitle A of title IV of the Federal 
     Deposit Insurance Corporation Improvement Act of 1991 is 
     amended--
       (1) by inserting before the section heading for section 
     401, the following new heading:

      ``CHAPTER 1--BILATERAL AND CLEARING ORGANIZATION NETTING'';

       (2) in section 402, by striking ``this subtitle'' and 
     inserting ``this chapter''; and
       (3) by inserting after section 407, the following new 
     chapter:

            ``CHAPTER 2--MULTILATERAL CLEARING ORGANIZATIONS

     ``SEC. 408. DEFINITIONS.

       For purposes of this chapter, the following definitions 
     shall apply:
       ``(1) Multilateral clearing organization.--The term 
     `multilateral clearing organization' means a system utilized 
     by more than 2 participants in which the bilateral credit 
     exposures of participants arising from the transactions 
     cleared are effectively eliminated and replaced by a system 
     of guarantees, insurance, or mutualized risk of loss.

[[Page 26904]]

       ``(2) Over-the-counter derivative instrument.--The term 
     `over-the-counter derivative instrument' includes--
       ``(A) any agreement, contract, or transaction, including 
     the terms and conditions incorporated by reference in any 
     such agreement, contract, or transaction, which is an 
     interest rate swap, option, or forward agreement, including a 
     rate floor, rate cap, rate collar, cross-currency rate swap, 
     basis swap, and forward rate agreement; a same day-tomorrow, 
     tomorrow-next, forward, or other foreign exchange or precious 
     metals agreement; a currency swap, option, or forward 
     agreement; an equity index or equity swap, option, or forward 
     agreement; a debt index or debt swap, option, or forward 
     agreement; a credit spread or credit swap, option, or forward 
     agreement; a commodity index or commodity swap, option, or 
     forward agreement; and a weather swap, weather derivative, or 
     weather option;
       ``(B) any agreement, contract or transaction similar to any 
     other agreement, contract, or transaction referred to in this 
     clause that is presently, or in the future becomes, regularly 
     entered into by parties that participate in swap transactions 
     (including terms and conditions incorporated by reference in 
     the agreement) and that is a forward, swap, or option on 1 or 
     more occurrences of any event, rates, currencies, 
     commodities, equity securities or other equity instruments, 
     debt securities or other debt instruments, economic or other 
     indices or measures of economic or other risk or value;
       ``(C) any agreement, contract, or transaction excluded from 
     the Commodity Exchange Act under section 2(c), 2(d), 2(f), or 
     2(g) of such Act, or exempted under section 2(h) or 4(c) of 
     such Act; and
       ``(D) any option to enter into any, or any combination of, 
     agreements, contracts or transactions referred to in this 
     subparagraph.
       ``(3) Other definitions.--The terms `insured State 
     nonmember bank', `State member bank', and `affiliate' have 
     the same meanings as in section 3 of the Federal Deposit 
     Insurance Act.

     ``SEC. 409. MULTILATERAL CLEARING ORGANIZATIONS.

       ``(a) In General.--Except with respect to clearing 
     organizations described in subsection (b), no person may 
     operate a multilateral clearing organization for over-the-
     counter derivative instruments, or otherwise engage in 
     activities that constitute such a multilateral clearing 
     organization unless the person is a national bank, a State 
     member bank, an insured State nonmember bank, an affiliate of 
     a national bank, a State member bank, or an insured State 
     nonmember bank, or a corporation chartered under section 25A 
     of the Federal Reserve Act.
       ``(b) Clearing Organizations.--Subsection (a) shall not 
     apply to any clearing organization that--
       ``(1) is registered as a clearing agency under the 
     Securities Exchange Act of 1934;
       ``(2) is registered as a derivatives clearing organization 
     under the Commodity Exchange Act; or
       ``(3) is supervised by a foreign financial regulator that 
     the Comptroller of the Currency, the Board of Governors of 
     the Federal Reserve System, the Federal Deposit Insurance 
     Corporation, the Securities and Exchange Commission, or the 
     Commodity Futures Trading Commission, as applicable, has 
     determined satisfies appropriate standards.''.
       (b) Resolution of Clearing Banks.--The Federal Reserve Act 
     (12 U.S.C. 221 et seq.) is amended by inserting after section 
     9A the following new section:

     ``SEC. 9B. RESOLUTION OF CLEARING BANKS.

       ``(a) Conservatorship or Receivership.--
       ``(1) Appointment.--The Board may appoint a conservator or 
     receiver to take possession and control of any uninsured 
     State member bank which operates, or operates as, a 
     multilateral clearing organization pursuant to section 409 of 
     the Federal Deposit Insurance Corporation Improvement Act of 
     1991 to the same extent and in the same manner as the 
     Comptroller of the Currency may appoint a conservator or 
     receiver for a national bank.
       ``(2) Powers.--The conservator or receiver for an uninsured 
     State member bank referred to in paragraph (1) shall exercise 
     the same powers, functions, and duties, subject to the same 
     limitations, as a conservator or receiver for a national 
     bank.
       ``(b) Board Authority.--The Board shall have the same 
     authority with respect to any conservator or receiver 
     appointed under subsection (a), and the uninsured State 
     member bank for which the conservator or receiver has been 
     appointed, as the Comptroller of the Currency has with 
     respect to a conservator or receiver for a national bank and 
     the national bank for which the conservator or receiver has 
     been appointed.
       ``(c) Bankruptcy Proceedings.--The Board (in the case of an 
     uninsured State member bank which operates, or operates as, 
     such a multilateral clearing organization) may direct a 
     conservator or receiver appointed for the bank to file a 
     petition pursuant to title 11, United States Code, in which 
     case, title 11, United States Code, shall apply to the bank 
     in lieu of otherwise applicable Federal or State insolvency 
     law.''.
       (c) Technical and Conforming Amendments to Title 11, United 
     States Code.--
       (1) Bankruptcy code debtors.--Section 109(b)(2) of title 
     11, United States Code, is amended by striking ``; or'' and 
     inserting the following: ``, except that an uninsured State 
     member bank, or a corporation organized under section 25A of 
     the Federal Reserve Act, which operates, or operates as, a 
     multilateral clearing organization pursuant to section 409 of 
     the Federal Deposit Insurance Corporation Improvement Act of 
     1991 may be a debtor if a petition is filed at the direction 
     of the Board of Governors of the Federal Reserve System; 
     or''.
       (2) Chapter 7 debtors.--Section 109(d) of title 11, United 
     States Code, is amended to read as follows:
       ``(d) Only a railroad, a person that may be a debtor under 
     chapter 7 of this title (except a stockbroker or a commodity 
     broker), and an uninsured State member bank, or a corporation 
     organized under section 25A of the Federal Reserve Act, which 
     operates, or operates as, a multilateral clearing 
     organization pursuant to section 409 of the Federal Deposit 
     Insurance Corporation Improvement Act of 1991 may be a debtor 
     under chapter 11 of this title.''.
       (3) Definition of financial institution.--Section 101(22) 
     of title 11, United States Code, is amended to read as 
     follows:
       ``(22) the term `financial institution'--
       ``(A) means--
       ``(i) a Federal reserve bank or an entity (domestic or 
     foreign) that is a commercial or savings bank, industrial 
     savings bank, savings and loan association, trust company, or 
     receiver or conservator for such entity and, when any such 
     Federal reserve bank, receiver, conservator, or entity is 
     acting as agent or custodian for a customer in connection 
     with a securities contract, as defined in section 741 of this 
     title, the customer; or
       ``(ii) in connection with a securities contract, as defined 
     in section 741 of this title, an investment company 
     registered under the Investment Company Act of 1940; and
       ``(B) includes any person described in subparagraph (A) 
     which operates, or operates as, a multilateral clearing 
     organization pursuant to section 409 of the Federal Deposit 
     Insurance Corporation Improvement Act of 1991;''.
       (4) Definition of uninsured state member bank.--Section 101 
     of title 11, United States Code, is amended by inserting 
     after paragraph (54) the following new paragraph--
       ``(54A) the term `uninsured State member bank' means a 
     State member bank (as defined in section 3 of the Federal 
     Deposit Insurance Act) the deposits of which are not insured 
     by the Federal Deposit Insurance Corporation; and''.
       (5) Subchapter v of chapter 7.--
       (A) In general.--Section 103 of title 11, United States 
     Code, is amended--
       (i) by redesignating subsections (e) through (i) as 
     subsections (f) through (j), respectively; and
       (ii) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Scope of Application.--Subchapter V of chapter 7 of 
     this title shall apply only in a case under such chapter 
     concerning the liquidation of an uninsured State member bank, 
     or a corporation organized under section 25A of the Federal 
     Reserve Act, which operates, or operates as, a multilateral 
     clearing organization pursuant to section 409 of the Federal 
     Deposit Insurance Corporation Improvement Act of 1991.''.
       (B) Clearing bank liquidation.--Chapter 7 of title 11, 
     United States Code, is amended by adding at the end the 
     following new subchapter:

               ``SUBCHAPTER V--CLEARING BANK LIQUIDATION

     ``Sec. 781. Definitions

       ``For purposes of this subchapter, the following 
     definitions shall apply:
       ``(1) Board.--The term `Board' means the Board of Governors 
     of the Federal Reserve System.
       ``(2) Depository institution.--The term `depository 
     institution' has the same meaning as in section 3 of the 
     Federal Deposit Insurance Act.
       ``(3) Clearing bank.--The term `clearing bank' means an 
     uninsured State member bank, or a corporation organized under 
     section 25A of the Federal Reserve Act, which operates, or 
     operates as, a multilateral clearing organization pursuant to 
     section 409 of the Federal Deposit Insurance Corporation 
     Improvement Act of 1991.

     ``Sec. 782. Selection of trustee

       ``(a) In General.--
       ``(1) Appointment.--Notwithstanding any other provision of 
     this title, the conservator or receiver who files the 
     petition shall be the trustee under this chapter, unless the 
     Board designates an alternative trustee.
       ``(2) Successor.--The Board may designate a successor 
     trustee if required.
       ``(b) Authority of Trustee.--Whenever the Board appoints or 
     designates a trustee, chapter 3 and sections 704 and 705 of 
     this title shall apply to the Board in the same way and to 
     the same extent that they apply to a United States trustee.

     ``Sec. 783. Additional powers of trustee

       ``(a) Distribution of Property Not of the Estate.--The 
     trustee under this subchapter has power to distribute 
     property not of the estate, including distributions to 
     customers that are mandated by subchapters III and IV of this 
     chapter.
       ``(b) Disposition of Institution.--The trustee under this 
     subchapter may, after notice and a hearing--
       ``(1) sell the clearing bank to a depository institution or 
     consortium of depository institutions (which consortium may 
     agree on the allocation of the clearing bank among the 
     consortium);
       ``(2) merge the clearing bank with a depository 
     institution;
       ``(3) transfer contracts to the same extent as could a 
     receiver for a depository institution under paragraphs (9) 
     and (10) of section 11(e) of the Federal Deposit Insurance 
     Act;
       ``(4) transfer assets or liabilities to a depository 
     institution;

[[Page 26905]]

       ``(5) transfer assets and liabilities to a bridge bank as 
     provided in paragraphs (1), (3)(A), (5), (6), of section 
     11(n) of the Federal Deposit Insurance Act, paragraphs (9) 
     through (13) of such section, and subparagraphs (A) through 
     (H) and subparagraph (K) of paragraph (4) of such section 
     11(n), except that--
       ``(A) the bridge bank to which such assets or liabilities 
     are transferred shall be treated as a clearing bank for the 
     purpose of this subsection; and
       ``(B) any references in any such provision of law to the 
     Federal Deposit Insurance Corporation shall be construed to 
     be references to the appointing agency and that references to 
     deposit insurance shall be omitted.
       ``(c) Certain Transfers Included.--Any reference in this 
     section to transfers of liabilities includes a ratable 
     transfer of liabilities within a priority class.

     ``Sec. 784. Right to be heard

       ``The Board or a Federal reserve bank (in the case of a 
     clearing bank that is a member of that bank) may raise and 
     may appear and be heard on any issue in a case under this 
     subchapter.''.
       (6) Definitions of clearing organization, contract market, 
     and related definitions.--
       (A) Section 761(2) of title 11, United States Code, is 
     amended to read as follows:
       ``(2) `clearing organization' means a derivatives clearing 
     organization registered under the Act;''.
       (B) Section 761(7) of title 11, United States Code, is 
     amended to read as follows:
       ``(7) `contract market' means a registered entity;''.
       (C) Section 761(8) of title 11, United States Code, is 
     amended to read as follows:
       ``(8) `contract of sale', `commodity', `derivatives 
     clearing organization', `future delivery', `board of trade', 
     `registered entity', and `futures commission merchant' have 
     the meanings assigned to those terms in the Act;''.
       (d) Clerical Amendment.--The table of sections for chapter 
     7 of title 11, United States Code, is amended by adding at 
     the end the following new items:

               ``SUBCHAPTER V--CLEARING BANK LIQUIDATION

``Sec.
``781. Definitions.
``782. Selection of trustee.
``783. Additional powers of trustee.
``784. Right to be heard.''.
       (e) Resolution of Edge Act Corporations.--The 16th 
     undesignated paragraph of section 25A of the Federal Reserve 
     Act (12 U.S.C. 624) is amended to read as follows:
       ``(16) Appointment of receiver or conservator.--
       ``(A) In general.--The Board may appoint a conservator or 
     receiver for a corporation organized under the provisions of 
     this section to the same extent and in the same manner as the 
     Comptroller of the Currency may appoint a conservator or 
     receiver for a national bank, and the conservator or receiver 
     for such corporation shall exercise the same powers, 
     functions, and duties, subject to the same limitations, as a 
     conservator or receiver for a national bank.
       ``(B) Equivalent authority.--The Board shall have the same 
     authority with respect to any conservator or receiver 
     appointed for a corporation organized under the provisions of 
     this section under this paragraph and any such corporation as 
     the Comptroller of the Currency has with respect to a 
     conservator or receiver of a national bank and the national 
     bank for which a conservator or receiver has been appointed.
       ``(C) Title 11 petitions.--The Board may direct the 
     conservator or receiver of a corporation organized under the 
     provisions of this section to file a petition pursuant to 
     title 11, United States Code, in which case, title 11, United 
     States Code, shall apply to the corporation in lieu of 
     otherwise applicable Federal or State insolvency law.''.
       (f) Derivatives Clearing Organizations.--The Commodity 
     Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting 
     after section 5a, as added by section 111 of this Act, the 
     following:

     ``SEC. 5B. DERIVATIVES CLEARING ORGANIZATIONS.

       ``(a) Registration Requirement.--It shall be unlawful for a 
     derivatives clearing organization, unless registered with the 
     Commission, directly or indirectly to make use of the mails 
     or any means or instrumentality of interstate commerce to 
     perform the functions of a derivatives clearing organization 
     described in section 1a(9) of this Act with respect to a 
     contract of sale of a commodity for future delivery (or 
     option on such a contract) or option on a commodity, in each 
     case unless the contract or option--
       ``(1) is excluded from this Act by section 2(a)(1)(C)(i), 
     2(c), 2(d), 2(f), or 2(g) of this Act or title IV of the 
     Commodity Futures Modernization Act of 2000, or exempted 
     under section 2(h) or 4(c) of this Act; or
       ``(2) is a security futures product cleared by a clearing 
     agency registered under the Securities Exchange Act of 1934.
       ``(b) Voluntary Registration.--A derivatives clearing 
     organization that clears agreements, contracts, or 
     transactions excluded from this Act by section 2(c), 2(d), 
     2(f) or 2(g) of this Act or title IV of the Commodity Futures 
     Modernization Act of 2000, or exempted under section 2(h) or 
     4(c) of this Act, or other over-the-counter derivative 
     instruments (as defined in the Federal Deposit Insurance 
     Corporation Improvement Act of 1991) may register with the 
     Commission as a derivatives clearing organization.
       ``(c) Registration of Derivatives Clearing Organizations.--
       ``(1) Application.--A person desiring to register as a 
     derivatives clearing organization shall submit to the 
     Commission an application in such form and containing such 
     information as the Commission may require for the purpose of 
     making the determinations required for approval under 
     paragraph (2).
       ``(2) Core principles.--
       ``(A) In general.--To be registered and to maintain 
     registration as a derivatives clearing organization, an 
     applicant shall demonstrate to the Commission that the 
     applicant complies with the core principles specified in this 
     paragraph. The applicant shall have reasonable discretion in 
     establishing the manner in which it complies with the core 
     principles.
       ``(B) Financial resources.--The applicant shall demonstrate 
     that the applicant has adequate financial, operational, and 
     managerial resources to discharge the responsibilities of a 
     derivatives clearing organization.
       ``(C) Participant and product eligibility.--The applicant 
     shall establish--
       ``(i) appropriate admission and continuing eligibility 
     standards (including appropriate minimum financial 
     requirements) for members of and participants in the 
     organization; and
       ``(ii) appropriate standards for determining eligibility of 
     agreements, contracts, or transactions submitted to the 
     applicant.
       ``(D) Risk management.--The applicant shall have the 
     ability to manage the risks associated with discharging the 
     responsibilities of a derivatives clearing organization 
     through the use of appropriate tools and procedures.
       ``(E) Settlement procedures.--The applicant shall have the 
     ability to--
       ``(i) complete settlements on a timely basis under varying 
     circumstances;
       ``(ii) maintain an adequate record of the flow of funds 
     associated with each transaction that the applicant clears; 
     and
       ``(iii) comply with the terms and conditions of any 
     permitted netting or offset arrangements with other clearing 
     organizations.
       ``(F) Treatment of funds.--The applicant shall have 
     standards and procedures designed to protect and ensure the 
     safety of member and participant funds.
       ``(G) Default rules and procedures.--The applicant shall 
     have rules and procedures designed to allow for efficient, 
     fair, and safe management of events when members or 
     participants become insolvent or otherwise default on their 
     obligations to the derivatives clearing organization.
       ``(H) Rule enforcement.--The applicant shall--
       ``(i) maintain adequate arrangements and resources for the 
     effective monitoring and enforcement of compliance with rules 
     of the applicant and for resolution of disputes; and
       ``(ii) have the authority and ability to discipline, limit, 
     suspend, or terminate a member's or participant's activities 
     for violations of rules of the applicant.
       ``(I) System safeguards.--The applicant shall demonstrate 
     that the applicant--
       ``(i) has established and will maintain a program of 
     oversight and risk analysis to ensure that the automated 
     systems of the applicant function properly and have adequate 
     capacity and security; and
       ``(ii) has established and will maintain emergency 
     procedures and a plan for disaster recovery, and will 
     periodically test backup facilities sufficient to ensure 
     daily processing, clearing, and settlement of transactions.
       ``(J) Reporting.--The applicant shall provide to the 
     Commission all information necessary for the Commission to 
     conduct the oversight function of the applicant with respect 
     to the activities of the derivatives clearing organization.
       ``(K) Recordkeeping.--The applicant shall maintain records 
     of all activities related to the business of the applicant as 
     a derivatives clearing organization in a form and manner 
     acceptable to the Commission for a period of 5 years.
       ``(L) Public information.--The applicant shall make 
     information concerning the rules and operating procedures 
     governing the clearing and settlement systems (including 
     default procedures) available to market participants.
       ``(M) Information sharing.--The applicant shall--
       ``(i) enter into and abide by the terms of all appropriate 
     and applicable domestic and international information-sharing 
     agreements; and
       ``(ii) use relevant information obtained from the 
     agreements in carrying out the clearing organization's risk 
     management program.
       ``(N) Antitrust considerations.--Unless appropriate to 
     achieve the purposes of this Act, the derivatives clearing 
     organization shall avoid--
       ``(i) adopting any rule or taking any action that results 
     in any unreasonable restraint of trade; or
       ``(ii) imposing any material anticompetitive burden on 
     trading on the contract market.
       ``(3) Orders concerning competition.--A derivatives 
     clearing organization may request the Commission to issue an 
     order concerning whether a rule or practice of the applicant 
     is the least anticompetitive means of achieving the 
     objectives, purposes, and policies of this Act.
       ``(d) Existing Derivatives Clearing Organizations.--A 
     derivatives clearing organization shall be deemed to be 
     registered under this section to the extent that the 
     derivatives clearing organization clears agreements, 
     contracts, or transactions for a board of trade that has been 
     designated by the Commission as a contract market for such 
     agreements, contracts, or transactions before the date of 
     enactment of this section.

[[Page 26906]]

       ``(e) Appointment of Trustee.--
       ``(1) In general.--If a proceeding under section 5e results 
     in the suspension or revocation of the registration of a 
     derivatives clearing organization, or if a derivatives 
     clearing organization withdraws from registration, the 
     Commission, on notice to the derivatives clearing 
     organization, may apply to the appropriate United States 
     district court where the derivatives clearing organization is 
     located for the appointment of a trustee.
       ``(2) Assumption of jurisdiction.--If the Commission 
     applies for appointment of a trustee under paragraph (1)--
       ``(A) the court may take exclusive jurisdiction over the 
     derivatives clearing organization and the records and assets 
     of the derivatives clearing organization, wherever located; 
     and
       ``(B) if the court takes jurisdiction under subparagraph 
     (A), the court shall appoint the Commission, or a person 
     designated by the Commission, as trustee with power to take 
     possession and continue to operate or terminate the 
     operations of the derivatives clearing organization in an 
     orderly manner for the protection of participants, subject to 
     such terms and conditions as the court may prescribe.
       ``(f) Linking of Regulated Clearing Facilities.--
       ``(1) In general.--The Commission shall facilitate the 
     linking or coordination of derivatives clearing organizations 
     registered under this Act with other regulated clearance 
     facilities for the coordinated settlement of cleared 
     transactions.
       ``(2) Coordination.--In carrying out paragraph (1), the 
     Commission shall coordinate with the Federal banking agencies 
     and the Securities and Exchange Commission.''.

     SEC. 113. COMMON PROVISIONS APPLICABLE TO REGISTERED 
                   ENTITIES.

       The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended 
     by inserting after section 5b (as added by section 112(f)) 
     the following:

     ``SEC. 5C. COMMON PROVISIONS APPLICABLE TO REGISTERED 
                   ENTITIES.

       ``(a) Acceptable Business Practices Under Core 
     Principles.--
       ``(1) In general.--Consistent with the purposes of this 
     Act, the Commission may issue interpretations, or approve 
     interpretations submitted to the Commission, of sections 
     5(d), 5a(d), and 5b(d)(2) to describe what would constitute 
     an acceptable business practice under such sections.
       ``(2) Effect of interpretation.--An interpretation issued 
     under paragraph (1) shall not provide the exclusive means for 
     complying with such sections.
       ``(b) Delegation of Functions Under Core Principles.--
       ``(1) In general.--A contract market or derivatives 
     transaction execution facility may comply with any applicable 
     core principle through delegation of any relevant function to 
     a registered futures association or another registered 
     entity.
       ``(2) Responsibility.--A contract market or derivatives 
     transaction execution facility that delegates a function 
     under paragraph (1) shall remain responsible for carrying out 
     the function.
       ``(3) Noncompliance.--If a contract market or derivatives 
     transaction execution facility that delegates a function 
     under paragraph (1) becomes aware that a delegated function 
     is not being performed as required under this Act, the 
     contract market or derivatives transaction execution facility 
     shall promptly take steps to address the noncompliance.
       ``(c) New Contracts, New Rules, and Rule Amendments.--
       ``(1) In general.--Subject to paragraph (2), a registered 
     entity may elect to list for trading or accept for clearing 
     any new contract or other instrument, or may elect to approve 
     and implement any new rule or rule amendment, by providing to 
     the Commission (and the Secretary of the Treasury, in the 
     case of a contract of sale of a government security for 
     future delivery (or option on such a contract) or a rule or 
     rule amendment specifically related to such a contract) a 
     written certification that the new contract or instrument or 
     clearing of the new contract or instrument, new rule, or rule 
     amendment complies with this Act (including regulations under 
     this Act).
       ``(2) Prior approval.--
       ``(A) In general.--A registered entity may request that the 
     Commission grant prior approval to any new contract or other 
     instrument, new rule, or rule amendment.
       ``(B) Prior approval required.--Notwithstanding any other 
     provision of this section, a designated contract market shall 
     submit to the Commission for prior approval each rule 
     amendment that materially changes the terms and conditions, 
     as determined by the Commission, in any contract of sale for 
     future delivery of a commodity specifically enumerated in 
     section 1a(4) (or any option thereon) traded through its 
     facilities if the rule amendment applies to contracts and 
     delivery months which have already been listed for trading 
     and have open interest.
       ``(C) Deadline.--If prior approval is requested under 
     subparagraph (A), the Commission shall take final action on 
     the request not later than 90 days after submission of the 
     request, unless the person submitting the request agrees to 
     an extension of the time limitation established under this 
     subparagraph.
       ``(3) Approval.--The Commission shall approve any such new 
     contract or instrument, new rule, or rule amendment unless 
     the Commission finds that the new contract or instrument, new 
     rule, or rule amendment would violate this Act.
       ``(d) Violation of Core Principles.--
       ``(1) In general.--If the Commission determines, on the 
     basis of substantial evidence, that a registered entity is 
     violating any applicable core principle specified in section 
     5(d), 5a(d), or 5b(d)(2), the Commission shall--
       ``(A) notify the registered entity in writing of the 
     determination; and
       ``(B) afford the registered entity an opportunity to make 
     appropriate changes to bring the registered entity into 
     compliance with the core principles.
       ``(2) Failure to make changes.--If, not later than 30 days 
     after receiving a notification under paragraph (1), a 
     registered entity fails to make changes that, in the opinion 
     of the Commission, are necessary to comply with the core 
     principles, the Commission may take further action in 
     accordance with this Act.
       ``(e) Reservation of Emergency Authority.--Nothing in this 
     section shall limit or in any way affect the emergency powers 
     of the Commission provided in section 8a(9).''.

     SEC. 114. EXEMPT BOARDS OF TRADE.

       The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended 
     by inserting after section 5c (as added by section 113) the 
     following:

     ``SEC. 5D. EXEMPT BOARDS OF TRADE.

       ``(a) Election To Register With the Commission.--A board of 
     trade that meets the requirements of subsection (b) of this 
     section may operate as an exempt board of trade on receipt 
     from the board of trade of a notice, provided in such manner 
     as the Commission may by rule or regulation prescribe, that 
     the board of trade elects to operate as an exempt board of 
     trade. Except as otherwise provided in this section, no 
     provision of this Act (other than subparagraphs (C) and (D) 
     of section 2(a)(1) and section 12(e)(2)(B)) shall apply with 
     respect to a contract of sale of a commodity for future 
     delivery (or option on such a contract) traded on or through 
     the facilities of an exempt board of trade.
       ``(b) Criteria for Exemption.--To qualify for an exemption 
     under subsection (a), a board of trade shall limit trading on 
     or through the facilities of the board of trade to contracts 
     of sale of a commodity for future delivery (or options on 
     such contracts or on a commodity)--
       ``(1) for which the underlying commodity has--
       ``(A) a nearly inexhaustible deliverable supply;
       ``(B) a deliverable supply that is sufficiently large, and 
     a cash market sufficiently liquid, to render any contract 
     traded on the commodity highly unlikely to be susceptible to 
     the threat of manipulation; or
       ``(C) no cash market;
       ``(2) that are entered into only between persons that are 
     eligible contract participants at the time at which the 
     persons enter into the contract; and
       ``(3) that are not contracts of sale (or options on such a 
     contract or on a commodity) for future delivery of any 
     security, including any group or index of securities or any 
     interest in, or based on the value of, any security or any 
     group or index of securities.
       ``(c) Antimanipulation Requirements.--A party to a contract 
     of sale of a commodity for future delivery (or option on such 
     a contract or on a commodity) that is traded on an exempt 
     board of trade shall be subject to sections 4b, 4c(b), 4o, 
     6(c), and 9(a)(2), and the Commission shall enforce those 
     provisions with respect to any such trading.
       ``(d) Price Discovery.--If the Commission finds that an 
     exempt board of trade is a significant source of price 
     discovery for transactions in the cash market for the 
     commodity underlying any contract, agreement, or transaction 
     traded on or through the facilities of the board of trade, 
     the board of trade shall disseminate publicly on a daily 
     basis trading volume, opening and closing price ranges, open 
     interest, and other trading data as appropriate to the 
     market.
       ``(e) Jurisdiction.--The Commission shall have exclusive 
     jurisdiction over any account, agreement, contract, or 
     transaction involving a contract of sale of a commodity for 
     future delivery, or option on such a contract or on a 
     commodity, to the extent that the account, agreement, 
     contract, or transaction is traded on an exempt board of 
     trade.
       ``(f) Subsidiaries.--A board of trade that is designated as 
     a contract market or registered as a derivatives transaction 
     execution facility may operate an exempt board of trade by 
     establishing a separate subsidiary or other legal entity and 
     otherwise satisfying the requirements of this section.
       ``(g) An exempt board of trade that meets the requirements 
     of subsection (b) shall not represent to any person that the 
     board of trade is registered with, or designated, recognized, 
     licensed, or approved by the Commission.''.

     SEC. 115. SUSPENSION OR REVOCATION OF DESIGNATION AS CONTRACT 
                   MARKET.

       Section 5e of the Commodity Exchange Act (7 U.S.C. 7b) (as 
     redesignated by section 20(1)) is amended to read as follows:

     ``SEC. 5E. SUSPENSION OR REVOCATION OF DESIGNATION AS 
                   REGISTERED ENTITY.

       ``The failure of a registered entity to comply with any 
     provision of this Act, or any regulation or order of the 
     Commission under this Act, shall be cause for the suspension 
     of the registered entity for a period not to exceed 180 days, 
     or revocation of designation as a registered entity in 
     accordance with the procedures and subject to the judicial 
     review provided in section 6(b).''.

     SEC. 116. AUTHORIZATION OF APPROPRIATIONS.

       Section 12(d) of the Commodity Exchange Act (7 U.S.C. 
     16(d)) is amended by striking ``2000'' and inserting 
     ``2005''.

[[Page 26907]]



     SEC. 117. PREEMPTION.

       Section 12 of the Commodity Exchange Act (7 U.S.C. 16(e)) 
     is amended by striking subsection (e) and inserting the 
     following:
       ``(e) Relation to Other Law, Departments, or Agencies.--
       ``(1) Nothing in this Act shall supersede or preempt--
       ``(A) criminal prosecution under any Federal criminal 
     statute;
       ``(B) the application of any Federal or State statute 
     (except as provided in paragraph (2)), including any rule or 
     regulation thereunder, to any transaction in or involving any 
     commodity, product, right, service, or interest--
       ``(i) that is not conducted on or subject to the rules of a 
     registered entity or exempt board of trade;
       ``(ii) (except as otherwise specified by the Commission by 
     rule or regulation) that is not conducted on or subject to 
     the rules of any board of trade, exchange, or market located 
     outside the United States, its territories or possessions; or
       ``(iii) that is not subject to regulation by the Commission 
     under section 4c or 19; or
       ``(C) the application of any Federal or State statute, 
     including any rule or regulation thereunder, to any person 
     required to be registered or designated under this Act who 
     shall fail or refuse to obtain such registration or 
     designation.
       ``(2) This Act shall supersede and preempt the application 
     of any State or local law that prohibits or regulates gaming 
     or the operation of bucket shops (other than antifraud 
     provisions of general applicability) in the case of--
       ``(A) an electronic trading facility excluded under section 
     2(e) of this Act;
       ``(B) an agreement, contract, or transaction that is 
     excluded from this Act under section 2(c), 2(d), 2(f), or 
     2(g) of this Act or title IV of the Commodity Futures 
     Modernization Act of 2000, or exempted under section 2(h) or 
     4(c) of this Act (regardless of whether any such agreement, 
     contract, or transaction is otherwise subject to this 
     Act).''.

     SEC. 118. PREDISPUTE RESOLUTION AGREEMENTS FOR INSTITUTIONAL 
                   CUSTOMERS.

       Section 14 of the Commodity Exchange Act (7 U.S.C. 18) is 
     amended by striking subsection (g) and inserting the 
     following:
       ``(g) Predispute Resolution Agreements for Institutional 
     Customers.--Nothing in this section prohibits a registered 
     futures commission merchant from requiring a customer that is 
     an eligible contract participant, as a condition to the 
     commission merchant's conducting a transaction for the 
     customer, to enter into an agreement waiving the right to 
     file a claim under this section.''.

     SEC. 119. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST 
                   LAWS.

       Section 15 of the Commodity Exchange Act (7 U.S.C. 19) is 
     amended by striking ``Sec. 15. The Commission'' and inserting 
     the following:

     ``SEC. 15. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST 
                   LAWS.

       ``(a) Costs and Benefits.--
       ``(1) In general.--Before promulgating a regulation under 
     this Act or issuing an order (except as provided in paragraph 
     (3)), the Commission shall consider the costs and benefits of 
     the action of the Commission.
       ``(2) Considerations.--The costs and benefits of the 
     proposed Commission action shall be evaluated in light of--
       ``(A) considerations of protection of market participants 
     and the public;
       ``(B) considerations of the efficiency, competitiveness, 
     and financial integrity of futures markets;
       ``(C) considerations of price discovery;
       ``(D) considerations of sound risk management practices; 
     and
       ``(E) other public interest considerations.
       ``(3) Applicability.--This subsection does not apply to the 
     following actions of the Commission:
       ``(A) An order that initiates, is part of, or is the result 
     of an adjudicatory or investigative process of the 
     Commission.
       ``(B) An emergency action.
       ``(C) A finding of fact regarding compliance with a 
     requirement of the Commission.
       ``(b) Antitrust Laws.--The Commission''.

     SEC. 120. CONTRACT ENFORCEMENT BETWEEN ELIGIBLE 
                   COUNTERPARTIES.

       Section 22(a) of the Commodity Exchange Act (7 U.S.C. 
     25(a)) is amended by adding at the end the following:
       ``(4) Contract enforcement between eligible 
     counterparties.--No agreement, contract, or transaction 
     between eligible contract participants or persons reasonably 
     believed to be eligible contract participants, and no hybrid 
     instrument sold to any investor, shall be void, voidable, or 
     unenforceable, and no such party shall be entitled to 
     rescind, or recover any payment made with respect to, such an 
     agreement, contract, transaction, or instrument under this 
     section or any other provision of Federal or State law, based 
     solely on the failure of the agreement, contract, 
     transaction, or instrument to comply with the terms or 
     conditions of an exemption or exclusion from any provision of 
     this Act or regulations of the Commission.''.

     SEC. 121. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE BONA 
                   FIDE HEDGING BY AGRICULTURAL PRODUCERS.

       The Commodity Exchange Act, as otherwise amended by this 
     Act, is amended by inserting after section 4o the following:

     ``SEC. 4P. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE 
                   BONA FIDE HEDGING BY AGRICULTURAL PRODUCERS.

       ``(a) Authority.--The Commission shall consider issuing 
     rules or orders which--
       ``(1) prescribe procedures under which each contract market 
     is to provide for orderly delivery, including temporary 
     storage costs, of any agricultural commodity enumerated in 
     section 1a(4) which is the subject of a contract for purchase 
     or sale for future delivery;
       ``(2) increase the ease with which domestic agricultural 
     producers may participate in contract markets, including by 
     addressing cost and margin requirements, so as to better 
     enable the producers to hedge price risk associated with 
     their production;
       ``(3) provide flexibility in the minimum quantities of such 
     agricultural commodities that may be the subject of a 
     contract for purchase or sale for future delivery that is 
     traded on a contract market, to better allow domestic 
     agricultural producers to hedge such price risk; and
       ``(4) encourage contract markets to provide information and 
     otherwise facilitate the participation of domestic 
     agricultural producers in contract markets.
       ``(b) Report.--Within 1 year after the date of enactment of 
     this section, the Commission shall submit to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate a 
     report on the steps it has taken to implement this section 
     and on the activities of contract markets pursuant to this 
     section.''.

     SEC. 122. RULE OF CONSTRUCTION.

       Except as expressly provided in this Act or an amendment 
     made by this Act, nothing in this Act or an amendment made by 
     this Act supersedes, affects, or otherwise limits or expands 
     the scope and applicability of laws governing the Securities 
     and Exchange Commission.

     SEC. 123. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Commodity Exchange Act.--
       (1) Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) 
     (as amended by section 101) is amended--
       (A) in paragraphs (5), (6), (16), (17), (20), and (23), by 
     inserting ``or derivatives transaction execution facility'' 
     after ``contract market'' each place it appears; and
       (B) in paragraph (24)--
       (i) in the paragraph heading, by striking ``contract 
     market'' and inserting ``registered entity'';
       (ii) by striking ``contract market'' each place it appears 
     and inserting ``registered entity''; and
       (iii) by adding at the end the following:
     ``A participant in an alternative trading system that is 
     designated as a contract market pursuant to section 5f is 
     deemed a member of the contract market for purposes of 
     transactions in security futures products through the 
     contract market.''.
       (2) Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 
     2a, 4, 4a, 3) is amended--
       (A) by striking ``Sec. 2. (a)(1)(A)(i) The'' and inserting 
     the following:

     ``SEC. 2. JURISDICTION OF COMMISSION; LIABILITY OF PRINCIPAL 
                   FOR ACT OF AGENT; COMMODITY FUTURES TRADING 
                   COMMISSION; TRANSACTION IN INTERSTATE COMMERCE.

       ``(a) Jurisdiction of Commission; Commodity Futures Trading 
     Commission.--
       ``(1) Jurisdiction of commission.--
       ``(A) In general.--The''; and
       (B) in subsection (a)(1)--
       (i) in subparagraph (A) (as amended by subparagraph (A) of 
     this paragraph)--

       (II) by striking ``subparagraph (B) of this subparagraph'' 
     and inserting ``subparagraphs (C) and (D) of this paragraph 
     and subsections (c) through (i) of this section'';
       (III) by striking ``contract market designated pursuant to 
     section 5 of this Act'' and inserting ``contract market 
     designated or derivatives transaction execution facility 
     registered pursuant to section 5 or 5a'';
       (IV) by striking clause (ii); and
       (V) in clause (iii), by striking ``(iii) The'' and 
     inserting the following:

       ``(B) Liability of principal for act of agent.--The''; and
       (ii) in subparagraph (B)--

       (I) by striking ``(B)'' and inserting ``(C)'';
       (II) in clause (v)--

       (aa) by striking ``section 3 of the Securities Act of 
     1933''; and
       (bb) by inserting ``or subparagraph (D)'' after 
     ``subparagraph''; and

       (III) by moving clauses (i) through (v) 4 ems to the right;

       (C) in subsection (a)(7), by striking ``contract market'' 
     and inserting ``registered entity'';
       (D) in subsection (a)(8)(B)(ii)--
       (i) in the first sentence, by striking ``designation as a 
     contract market'' and inserting ``designation or registration 
     as a contract market or derivatives transaction execution 
     facility'';
       (ii) in the second sentence, by striking ``designate a 
     board of trade as a contract market'' and inserting 
     ``designate or register a board of trade as a contract market 
     or derivatives transaction execution facility''; and
       (iii) in the fourth sentence, by striking ``designating, or 
     refusing, suspending, or revoking the designation of, a board 
     of trade as a contract market involving transactions for 
     future delivery referred to in this clause or in considering 
     possible emergency action under section 8a(9) of this Act'' 
     and inserting ``designating, registering, or refusing, 
     suspending, or revoking the designation or registration of, a 
     board of trade as a contract market or derivatives 
     transaction execution facility involving transactions for 
     future delivery referred to in this clause or in considering 
     any possible action under this

[[Page 26908]]

     Act (including without limitation emergency action under 
     section 8a(9))'', and by striking ``designation, suspension, 
     revocation, or emergency action'' and inserting 
     ``designation, registration, suspension, revocation, or 
     action''; and
       (E) in subsection (a), by moving paragraphs (2) through (9) 
     2 ems to the right.
       (3) Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is 
     amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``designated by the 
     Commission as a `contract market' for'' and inserting 
     ``designated or registered by the Commission as a contract 
     market or derivatives transaction execution facility for'';
       (ii) in paragraph (2), by striking ``member of such''; and
       (iii) in paragraph (3), by inserting ``or derivatives 
     transaction execution facility'' after ``contract market''; 
     and
       (B) in subsection (c)--
       (i) in paragraph (1)--

       (I) by striking ``designated as a contract market'' and 
     inserting ``designated or registered as a contract market or 
     derivatives transaction execution facility''; and
       (II) by striking ``section 2(a)(1)(B)'' and inserting 
     ``subparagraphs (C)(ii) and (D) of section 2(a)(1), except 
     that the Commission and the Securities and Exchange 
     Commission may by rule, regulation, or order jointly exclude 
     any agreement, contract, or transaction from section 
     2(a)(1)(D)''; and

       (ii) in paragraph (2)(B)(ii), by inserting ``or derivatives 
     transaction execution facility'' after ``contract market''.
       (4) Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) 
     is amended--
       (A) in subsection (a)--
       (i) in the first sentence, by inserting ``or derivatives 
     transaction execution facilities'' after ``contract 
     markets''; and
       (ii) in the second sentence, by inserting ``or derivatives 
     transaction execution facility'' after ``contract market'';
       (B) in subsection (b)--
       (i) in paragraph (1), by inserting ``, or derivatives 
     transaction execution facility or facilities,'' after 
     ``markets''; and
       (ii) in paragraph (2), by inserting ``or derivatives 
     transaction execution facility'' after ``contract market''; 
     and
       (C) in subsection (e)--
       (i) by striking ``contract market or'' each place it 
     appears and inserting ``contract market, derivatives 
     transaction execution facility, or'';
       (ii) by striking ``licensed or designated'' each place it 
     appears and inserting ``licensed, designated, or 
     registered''; and
       (iii) by striking ``contract market, or'' and inserting 
     ``contract market or derivatives transaction execution 
     facility, or''.
       (5) Section 4b(a) of the Commodity Exchange Act (7 U.S.C. 
     6b(a)) is amended by striking ``contract market'' each place 
     it appears and inserting ``registered entity''.
       (6) Sections 4c(g), 4d, 4e, and 4f of the Commodity 
     Exchange Act (7 U.S.C. 6c(g), 6d, 6e, 6f) are amended by 
     inserting ``or derivatives transaction execution facility'' 
     after ``contract market'' each place it appears.
       (7) Section 4g of the Commodity Exchange Act (7 U.S.C. 6g) 
     is amended--
       (A) in subsection (b), by striking ``clearinghouse and 
     contract market'' and inserting ``registered entity''; and
       (B) in subsection (f), by striking ``clearinghouses, 
     contract markets, and exchanges'' and inserting ``registered 
     entities''.
       (8) Section 4h of the Commodity Exchange Act (7 U.S.C. 6h) 
     is amended by striking ``contract market'' each place it 
     appears and inserting ``registered entity''.
       (9) Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) 
     is amended in the first sentence by inserting ``or 
     derivatives transaction execution facility'' after ``contract 
     market''.
       (10) Section 4l of the Commodity Exchange Act (7 U.S.C. 6l) 
     is amended by inserting ``or derivatives transaction 
     execution facilities'' after ``contract markets'' each place 
     it appears.
       (11) Section 4p of the Commodity Exchange Act (7 U.S.C. 6p) 
     is amended--
       (A) in the third sentence of subsection (a), by striking 
     ``Act or contract markets'' and inserting ``Act, contract 
     markets, or derivatives transaction execution facilities''; 
     and
       (B) in subsection (b), by inserting ``derivatives 
     transaction execution facility,'' after ``contract market,''.
       (12) Section 6 of the Commodity Exchange Act (7 U.S.C. 8, 
     9, 9a, 9b, 13b, 15) is amended--
       (A) in subsection (a)--
       (i) in the first sentence--

       (I) by striking ``board of trade desiring to be designated 
     a `contract market' shall make application to the Commission 
     for such designation'' and inserting ``person desiring to be 
     designated or registered as a contract market or derivatives 
     transaction execution facility shall make application to the 
     Commission for the designation or registration'';
       (II) by striking ``above conditions'' and inserting 
     ``conditions set forth in this Act''; and
       (III) by striking ``above requirements'' and inserting 
     ``the requirements of this Act'';

       (ii) in the second sentence, by striking ``designation as a 
     contract market within one year'' and inserting ``designation 
     or registration as a contract market or derivatives 
     transaction execution facility within 180 days'';
       (iii) in the third sentence--

       (I) by striking ``board of trade'' and inserting 
     ``person''; and
       (II) by striking ``one-year period'' and inserting ``180-
     day period''; and

       (iv) in the last sentence, by striking ``designate as a 
     `contract market' any board of trade that has made 
     application therefor, such board of trade'' and inserting 
     ``designate or register as a contract market or derivatives 
     transaction execution facility any person that has made 
     application therefor, the person'';
       (B) in subsection (b)--
       (i) in the first sentence--

       (I) by striking ``designation of any board of trade as a 
     `contract market' upon'' and inserting ``designation or 
     registration of any contract market or derivatives 
     transaction execution facility on'';
       (II) by striking ``board of trade'' each place it appears 
     and inserting ``contract market or derivatives transaction 
     execution facility''; and
       (III) by striking ``designation as set forth in section 5 
     of this Act'' and inserting ``designation or registration as 
     set forth in sections 5 through 5b or section 5f'';

       (ii) in the second sentence--

       (I) by striking ``board of trade'' the first place it 
     appears and inserting ``contract market or derivatives 
     transaction execution facility''; and
       (II) by striking ``board of trade'' the second and third 
     places it appears and inserting ``person''; and

       (iii) in the last sentence, by striking ``board of trade'' 
     each place it appears and inserting ``person'';
       (C) in subsection (c)--
       (i) by striking ``contract market'' each place it appears 
     and inserting ``registered entity'';
       (ii) by striking ``contract markets'' each place it appears 
     and inserting ``registered entities''; and
       (iii) by striking ``trading privileges'' each place it 
     appears and inserting ``privileges'';
       (D) in subsection (d), by striking ``contract market'' each 
     place it appears and inserting ``registered entity''; and
       (E) in subsection (e), by striking ``trading on all 
     contract markets'' each place it appears and inserting ``the 
     privileges of all registered entities''.
       (13) Section 6a of the Commodity Exchange Act (7 U.S.C. 
     10a) is amended--
       (A) in the first sentence of subsection (a), by striking 
     ``designated as a `contract market' shall'' and inserting 
     ``designated or registered as a contract market or a 
     derivatives transaction execution facility''; and
       (B) in subsection (b), by striking ``designated as a 
     contract market'' and inserting ``designated or registered as 
     a contract market or a derivatives transaction execution 
     facility''.
       (14) Section 6b of the Commodity Exchange Act (7 U.S.C. 
     13a) is amended--
       (A) by striking ``contract market'' each place it appears 
     and inserting ``registered entity'';
       (B) in the first sentence, by striking ``designation as set 
     forth in section 5 of this Act'' and inserting ``designation 
     or registration as set forth in sections 5 through 5c''; and
       (C) in the last sentence, by striking ``the contract 
     market's ability'' and inserting ``the ability of the 
     registered entity''.
       (15) Section 6c(a) of the Commodity Exchange Act (7 U.S.C. 
     13a-1(a)) by striking ``contract market'' and inserting 
     ``registered entity''.
       (16) Section 6d(1) of the Commodity Exchange Act (7 U.S.C. 
     13a-2(1)) is amended by inserting ``derivatives transaction 
     execution facility,'' after ``contract market,''.
       (17) Section 7 of the Commodity Exchange Act (7 U.S.C. 11) 
     is amended--
       (A) in the first sentence--
       (i) by striking ``board of trade'' and inserting 
     ``person'';
       (ii) by inserting ``or registered'' after ``designated'';
       (iii) by inserting ``or registration'' after 
     ``designation'' each place it appears; and
       (iv) by striking ``contract market'' each place it appears 
     and inserting ``registered entity'';
       (B) in the second sentence--
       (i) by striking ``designation of such board of trade as a 
     contract market'' and inserting ``designation or registration 
     of the registered entity''; and
       (ii) by striking ``contract markets'' and inserting 
     ``registered entities''; and
       (C) in the last sentence--
       (i) by striking ``board of trade'' and inserting 
     ``person''; and
       (ii) by striking ``designated again a contract market'' and 
     inserting ``designated or registered again a registered 
     entity''.
       (18) Section 8(c) of the Commodity Exchange Act (7 U.S.C. 
     12(c)) is amended in the first sentence by striking ``board 
     of trade'' and inserting ``registered entity''.
       (19) Section 8a of the Commodity Exchange Act (7 U.S.C. 
     12a) is amended--
       (A) by striking ``contract market'' each place it appears 
     and inserting ``registered entity''; and
       (B) in paragraph (2)(F), by striking ``trading privileges'' 
     and inserting ``privileges''.
       (20) Sections 8b and 8c(e) of the Commodity Exchange Act (7 
     U.S.C. 12b, 12c(e)) are amended by striking ``contract 
     market'' each place it appears and inserting ``registered 
     entity''.
       (21) Section 8e of the Commodity Exchange Act (7 U.S.C. 
     12e) is repealed.
       (22) Section 9 of the Commodity Exchange Act (7 U.S.C. 13) 
     is amended by striking ``contract market'' each place it 
     appears and inserting ``registered entity''.
       (23) Section 14 of the Commodity Exchange Act (7 U.S.C. 18) 
     is amended--
       (A) in subsection (a)(1)(B), by striking ``contract 
     market'' and inserting ``registered entity''; and
       (B) in subsection (f), by striking ``contract markets'' and 
     inserting ``registered entities''.
       (24) Section 17 of the Commodity Exchange Act (7 U.S.C. 21) 
     is amended by striking ``contract market'' each place it 
     appears and inserting ``registered entity''.

[[Page 26909]]

       (25) Section 22 of the Commodity Exchange Act (7 U.S.C. 25) 
     is amended--
       (A) in subsection (a)--
       (i) in paragraph (1)--

       (I) by striking ``contract market, clearing organization of 
     a contract market, licensed board of trade,'' and inserting 
     ``registered entity''; and
       (II) in subparagraph (C)(i), by striking ``contract 
     market'' and inserting ``registered entity'';

       (ii) in paragraph (2), by striking ``sections 5a(11),'' and 
     inserting ``sections 5(d)(13), 5b(b)(1)(E),''; and
       (iii) in paragraph (3), by striking ``contract market'' and 
     inserting ``registered entity''; and
       (B) in subsection (b)--
       (i) in paragraph (1)--

       (I) by striking ``contract market or clearing organization 
     of a contract market'' and inserting ``registered entity'';
       (II) by striking ``section 5a(8) and section 5a(9) of this 
     Act'' and inserting ``sections 5 through 5c'';
       (III) by striking ``contract market, clearing organization 
     of a contract market, or licensed board of trade'' and 
     inserting ``registered entity''; and
       (IV) by striking ``contract market or licensed board of 
     trade'' and inserting ``registered entity'';

       (ii) in paragraph (3)--

       (I) by striking ``a contract market, clearing organization, 
     licensed board of trade,'' and inserting ``registered 
     entity''; and
       (II) by striking ``contract market, licensed board of 
     trade'' and inserting ``registered entity'';

       (iii) in paragraph (4), by striking ``contract market, 
     licensed board of trade, clearing organization,'' and 
     inserting ``registered entity''; and
       (iv) in paragraph (5), by striking ``contract market, 
     licensed board of trade, clearing organization,'' and 
     inserting ``registered entity''.
       (b) Federal Deposit Insurance Corporation Improvement Act 
     of 1991.--Section 402(2) of the Federal Deposit Insurance 
     Corporation Improvement Act of 1991 (12 U.S.C. 4402(2)) is 
     amended by striking subparagraph (B) and inserting the 
     following:
       ``(B) that is registered as a derivatives clearing 
     organization under section 5b of the Commodity Exchange 
     Act.''.

     SEC. 124. PRIVACY.

       The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended 
     by inserting after section 5f (as added by section 252) the 
     following:

     ``SEC. 5G. PRIVACY.

       ``(a) Treatment as Financial Institutions.--Notwithstanding 
     section 509(3)(B) of the Gramm-Leach-Bliley Act, any futures 
     commission merchant, commodity trading advisor, commodity 
     pool operator, or introducing broker that is subject to the 
     jurisdiction of the Commission under this Act with respect to 
     any financial activity shall be treated as a financial 
     institution for purposes of title V of such Act with respect 
     to such financial activity.
       ``(b) Treatment of CFTC as Federal Functional Regulator.--
     For purposes of title V of such Act, the Commission shall be 
     treated as a Federal functional regulator within the meaning 
     of section 509(2) of such Act and shall prescribe regulations 
     under such title within 6 months after the date of enactment 
     of this section.''.

     SEC. 125. REPORT TO CONGRESS.

       (a) The Commodity Futures Trading Commission (in this 
     section referred to as the ``Commission'') shall undertake 
     and complete a study of the Commodity Exchange Act (in this 
     section referred to as ``the Act'') and the Commission's 
     rules, regulations and orders governing the conduct of 
     persons required to be registered under the Act, not later 
     than 1 year after the date of the enactment of this Act. The 
     study shall identify--
       (1) the core principles and interpretations of acceptable 
     business practices that the Commission has adopted or intends 
     to adopt to replace the provisions of the Act and the 
     Commission's rules and regulations thereunder;
       (2) the rules and regulations that the Commission has 
     determined must be retained and the reasons therefor;
       (3) the extent to which the Commission believes it can 
     effect the changes identified in paragraph (1) of this 
     subsection through its exemptive authority under section 4(c) 
     of the Act; and
       (4) the regulatory functions the Commission currently 
     performs that can be delegated to a registered futures 
     association (within the meaning of the Act) and the 
     regulatory functions that the Commission has determined must 
     be retained and the reasons therefor.
       (b) In conducting the study, the Commission shall solicit 
     the views of the public as well as Commission registrants, 
     registered entities, and registered futures associations (all 
     within the meaning of the Act).
       (c) The Commission shall transmit to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate a 
     report of the results of its study, which shall include an 
     analysis of comments received.

     SEC. 126. INTERNATIONAL ACTIVITIES OF THE COMMODITY FUTURES 
                   TRADING COMMISSION.

       (a) Findings.--The Congress finds that--
       (1) derivatives markets serving United States industry are 
     increasingly global in scope;
       (2) developments in data processing and communications 
     technologies enable users of risk management services to 
     analyze and compare those services on a worldwide basis;
       (3) financial services regulatory policy must be flexible 
     to account for rapidly changing derivatives industry business 
     practices;
       (4) regulatory impediments to the operation of global 
     business interests can compromise the competitiveness of 
     United States businesses;
       (5) events that disrupt financial markets and economies are 
     often global in scope, require rapid regulatory response, and 
     coordinated regulatory effort across international 
     jurisdictions;
       (6) through its membership in the International 
     Organisation of Securities Commissions, the Commodity Futures 
     Trading Commission has promoted beneficial communication 
     among market regulators and international regulatory 
     cooperation; and
       (7) the Commodity Futures Trading Commission and other 
     United States financial regulators and self-regulatory 
     organizations should continue to foster productive and 
     cooperative working relationships with their counterparts in 
     foreign jurisdictions.
       (b) Sense of the Congress.--It is the sense of the Congress 
     that, consistent with its responsibilities under the 
     Commodity Exchange Act, the Commodity Futures Trading 
     Commission should, as part of its international activities, 
     continue to coordinate with foreign regulatory authorities, 
     to participate in international regulatory organizations and 
     forums, and to provide technical assistance to foreign 
     government authorities, in order to encourage--
       (1) the facilitation of cross-border transactions through 
     the removal or lessening of any unnecessary legal or 
     practical obstacles;
       (2) the development of internationally accepted regulatory 
     standards of best practice;
       (3) the enhancement of international supervisory 
     cooperation and emergency procedures;
       (4) the strengthening of international cooperation for 
     customer and market protection; and
       (5) improvements in the quality and timeliness of 
     international information sharing.

     TITLE II--COORDINATED REGULATION OF SECURITY FUTURES PRODUCTS

                 Subtitle A--Securities Law Amendments

     SEC. 201. DEFINITIONS UNDER THE SECURITIES EXCHANGE ACT OF 
                   1934.

       Section 3(a) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78c(a)) is amended--
       (1) in paragraph (10), by inserting ``security future,'' 
     after ``treasury stock,'';
       (2) by striking paragraph (11) and inserting the following:
       ``(11) The term `equity security' means any stock or 
     similar security; or any security future on any such 
     security; or any security convertible, with or without 
     consideration, into such a security, or carrying any warrant 
     or right to subscribe to or purchase such a security; or any 
     such warrant or right; or any other security which the 
     Commission shall deem to be of similar nature and consider 
     necessary or appropriate, by such rules and regulations as it 
     may prescribe in the public interest or for the protection of 
     investors, to treat as an equity security.'';
       (3) in paragraph (13), by adding at the end the following: 
     ``For security futures products, such term includes any 
     contract, agreement, or transaction for future delivery.'';
       (4) in paragraph (14), by adding at the end the following: 
     ``For security futures products, such term includes any 
     contract, agreement, or transaction for future delivery.''; 
     and
       (5) by adding at the end the following:
       ``(55)(A) The term `security future' means a contract of 
     sale for future delivery of a single security or of a narrow-
     based security index, including any interest therein or based 
     on the value thereof, except an exempted security under 
     section 3(a)(12) of the Securities Exchange Act of 1934 as in 
     effect on the date of enactment of the Futures Trading Act of 
     1982 (other than any municipal security as defined in section 
     3(a)(29) as in effect on the date of enactment of the Futures 
     Trading Act of 1982). The term `security future' does not 
     include any agreement, contract, or transaction excluded from 
     the Commodity Exchange Act under section 2(c), 2(d), 2(f) or 
     2(g) of the Commodity Exchange Act (as in effect on the date 
     of enactment of the Commodity Futures Modernization Act of 
     2000) or title IV of the Commodity Futures Modernization Act 
     of 2000.
       ``(B) The term `narrow-based security index' means an 
     index--
       ``(i) that has 9 or fewer component securities;
       ``(ii) in which a component security comprises more than 30 
     percent of the index's weighting;
       ``(iii) in which the 5 highest weighted component 
     securities in the aggregate comprise more than 60 percent of 
     the index's weighting; or
       ``(iv) in which the lowest weighted component securities 
     comprising, in the aggregate, 25 percent of the index's 
     weighting have an aggregate dollar value of average daily 
     trading volume of less than $50,000,000 (or in the case of an 
     index with 15 or more component securities, $30,000,000), 
     except that if there are two or more securities with equal 
     weighting that could be included in the calculation of the 
     lowest weighted component securities comprising, in the 
     aggregate, 25 percent of the index's weighting, such 
     securities shall be ranked from lowest to highest dollar 
     value of average daily trading volume and shall be included 
     in the calculation based on their ranking starting with the 
     lowest ranked security.
       ``(C) Notwithstanding subparagraph (B), an index is not a 
     narrow-based security index if--
       ``(i)(I) it has at least 9 component securities;
       ``(II) no component security comprises more than 30 percent 
     of the index's weighting; and
       ``(III) each component security is--

       ``(aa) registered pursuant to section 12 of the Securities 
     Exchange Act of 1934;

[[Page 26910]]

       ``(bb) 1 of 750 securities with the largest market 
     capitalization; and
       ``(cc) 1 of 675 securities with the largest dollar value of 
     average daily trading volume;

       ``(ii) a board of trade was designated as a contract market 
     by the Commodity Futures Trading Commission with respect to a 
     contract of sale for future delivery on the index, before the 
     date of enactment of the Commodity Futures Modernization Act 
     of 2000;
       ``(iii)(I) a contract of sale for future delivery on the 
     index traded on a designated contract market or registered 
     derivatives transaction execution facility for at least 30 
     days as a contract of sale for future delivery on an index 
     that was not a narrow-based security index; and
       ``(II) it has been a narrow-based security index for no 
     more than 45 business days over 3 consecutive calendar 
     months;
       ``(iv) a contract of sale for future delivery on the index 
     is traded on or subject to the rules of a foreign board of 
     trade and meets such requirements as are jointly established 
     by rule or regulation by the Commission and the Commodity 
     Futures Trading Commission;
       ``(v) no more than 18 months have passed since the date of 
     enactment of the Commodity Futures Modernization Act of 2000 
     and--

       ``(I) it is traded on or subject to the rules of a foreign 
     board of trade;
       ``(II) the offer and sale in the United States of a 
     contract of sale for future delivery on the index was 
     authorized before the date of the enactment of the Commodity 
     Futures Modernization Act of 2000; and
       ``(III) the conditions of such authorization continue to be 
     met; or

       ``(vi) a contract of sale for future delivery on the index 
     is traded on or subject to the rules of a board of trade and 
     meets such requirements as are jointly established by rule, 
     regulation, or order by the Commission and the Commodity 
     Futures Trading Commission.
       ``(D) Within 1 year after the enactment of the Commodity 
     Futures Modernization Act of 2000, the Commission and the 
     Commodity Futures Trading Commission jointly shall adopt 
     rules or regulations that set forth the requirements under 
     clause (iv) of subparagraph (C).
       ``(E) An index that is a narrow-based security index solely 
     because it was a narrow-based security index for more than 45 
     business days over 3 consecutive calendar months pursuant to 
     clause (iii) of subparagraph (C) shall not be a narrow-based 
     security index for the 3 following calendar months.
       ``(F) For purposes of subparagraphs (B) and (C) of this 
     paragraph--
       ``(i) the dollar value of average daily trading volume and 
     the market capitalization shall be calculated as of the 
     preceding 6 full calendar months; and
       ``(ii) the Commission and the Commodity Futures Trading 
     Commission shall, by rule or regulation, jointly specify the 
     method to be used to determine market capitalization and 
     dollar value of average daily trading volume.
       ``(56) The term `security futures product' means a security 
     future or any put, call, straddle, option, or privilege on 
     any security future.
       ``(57)(A) The term `margin', when used with respect to a 
     security futures product, means the amount, type, and form of 
     collateral required to secure any extension or maintenance of 
     credit, or the amount, type, and form of collateral required 
     as a performance bond related to the purchase, sale, or 
     carrying of a security futures product.
       ``(B) The terms `margin level' and `level of margin', when 
     used with respect to a security futures product, mean the 
     amount of margin required to secure any extension or 
     maintenance of credit, or the amount of margin required as a 
     performance bond related to the purchase, sale, or carrying 
     of a security futures product.
       ``(C) The terms `higher margin level' and `higher level of 
     margin', when used with respect to a security futures 
     product, mean a margin level established by a national 
     securities exchange registered pursuant to section 6(g) that 
     is higher than the minimum amount established and in effect 
     pursuant to section 7(c)(2)(B).''.

     SEC. 202. REGULATORY RELIEF FOR MARKETS TRADING SECURITY 
                   FUTURES PRODUCTS.

       (a) Expedited Registration and Exemption.--Section 6 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended by 
     adding at the end the following:
       ``(g) Notice Registration of Security Futures Product 
     Exchanges.--
       ``(1) Registration required.--An exchange that lists or 
     trades security futures products may register as a national 
     securities exchange solely for the purposes of trading 
     security futures products if--
       ``(A) the exchange is a board of trade, as that term is 
     defined by the Commodity Exchange Act (7 U.S.C. 1a(2)), 
     that--
       ``(i) has been designated a contract market by the 
     Commodity Futures Trading Commission and such designation is 
     not suspended by order of the Commodity Futures Trading 
     Commission; or
       ``(ii) is registered as a derivative transaction execution 
     facility under section 5a of the Commodity Exchange Act and 
     such registration is not suspended by the Commodity Futures 
     Trading Commission; and
       ``(B) such exchange does not serve as a market place for 
     transactions in securities other than--
       ``(i) security futures products; or
       ``(ii) futures on exempted securities or groups or indexes 
     of securities or options thereon that have been authorized 
     under section 2(a)(1)(C) of the Commodity Exchange Act.
       ``(2) Registration by notice filing.--
       ``(A) Form and content.--An exchange required to register 
     only because such exchange lists or trades security futures 
     products may register for purposes of this section by filing 
     with the Commission a written notice in such form as the 
     Commission, by rule, may prescribe containing the rules of 
     the exchange and such other information and documents 
     concerning such exchange, comparable to the information and 
     documents required for national securities exchanges under 
     section 6(a), as the Commission, by rule, may prescribe as 
     necessary or appropriate in the public interest or for the 
     protection of investors. If such exchange has filed documents 
     with the Commodity Futures Trading Commission, to the extent 
     that such documents contain information satisfying the 
     Commission's informational requirements, copies of such 
     documents may be filed with the Commission in lieu of the 
     required written notice.
       ``(B) Immediate effectiveness.--Such registration shall be 
     effective contemporaneously with the submission of notice, in 
     written or electronic form, to the Commission, except that 
     such registration shall not be effective if such registration 
     would be subject to suspension or revocation.
       ``(C) Termination.--Such registration shall be terminated 
     immediately if any of the conditions for registration set 
     forth in this subsection are no longer satisfied.
       ``(3) Public availability.--The Commission shall promptly 
     publish in the Federal Register an acknowledgment of receipt 
     of all notices the Commission receives under this subsection 
     and shall make all such notices available to the public.
       ``(4) Exemption of exchanges from specified provisions.--
       ``(A) Transaction exemptions.--An exchange that is 
     registered under paragraph (1) of this subsection shall be 
     exempt from, and shall not be required to enforce compliance 
     by its members with, and its members shall not, solely with 
     respect to those transactions effected on such exchange in 
     security futures products, be required to comply with, the 
     following provisions of this title and the rules thereunder:
       ``(i) Subsections (b)(2), (b)(3), (b)(4), (b)(7), (b)(9), 
     (c), (d), and (e) of this section.
       ``(ii) Section 8.
       ``(iii) Section 11.
       ``(iv) Subsections (d), (f), and (k) of section 17.
       ``(v) Subsections (a), (f), and (h) of section 19.
       ``(B) Rule change exemptions.--An exchange that registered 
     under paragraph (1) of this subsection shall also be exempt 
     from submitting proposed rule changes pursuant to section 
     19(b) of this title, except that--
       ``(i) such exchange shall file proposed rule changes 
     related to higher margin levels, fraud or manipulation, 
     recordkeeping, reporting, listing standards, or decimal 
     pricing for security futures products, sales practices for 
     security futures products for persons who effect transactions 
     in security futures products, or rules effectuating such 
     exchange's obligation to enforce the securities laws pursuant 
     to section 19(b)(7);
       ``(ii) such exchange shall file pursuant to sections 
     19(b)(1) and 19(b)(2) proposed rule changes related to 
     margin, except for changes resulting in higher margin levels; 
     and
       ``(iii) such exchange shall file pursuant to section 
     19(b)(1) proposed rule changes that have been abrogated by 
     the Commission pursuant to section 19(b)(7)(C).
       ``(5) Trading in security futures products.--
       ``(A) In general.--Subject to subparagraph (B), it shall be 
     unlawful for any person to execute or trade a security 
     futures product until the later of--
       ``(i) 1 year after the date of enactment of the Commodity 
     Futures Modernization Act of 2000; or
       ``(ii) such date that a futures association registered 
     under section 17 of the Commodity Exchange Act has met the 
     requirements set forth in section 15A(k)(2) of this title.
       ``(B) Principal-to-principal transactions.--Notwithstanding 
     subparagraph (A), a person may execute or trade a security 
     futures product transaction if--
       ``(i) the transaction is entered into--

       ``(I) on a principal-to-principal basis between parties 
     trading for their own accounts or as described in section 
     1a(12)(B)(ii) of the Commodity Exchange Act; and
       ``(II) only between eligible contract participants (as 
     defined in subparagraphs (A), (B)(ii), and (C) of such 
     section 1a(12)) at the time at which the persons enter into 
     the agreement, contract, or transaction; and

       ``(ii) the transaction is entered into on or after the 
     later of--

       ``(I) 8 months after the date of enactment of the Commodity 
     Futures Modernization Act of 2000; or
       ``(II) such date that a futures association registered 
     under section 17 of the Commodity Exchange Act has met the 
     requirements set forth in section 15A(k)(2) of this title.''.

       (b) Commission Review of Proposed Rule Changes.--
       (1) Expedited review.--Section 19(b) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by adding 
     at the end the following:
       ``(7) Security futures product rule changes.--
       ``(A) Filing required.--A self-regulatory organization that 
     is an exchange registered with the Commission pursuant to 
     section 6(g) of this title or that is a national securities 
     association registered pursuant to section 15A(k) of this 
     title

[[Page 26911]]

     shall file with the Commission, in accordance with such rules 
     as the Commission may prescribe, copies of any proposed rule 
     change or any proposed change in, addition to, or deletion 
     from the rules of such self-regulatory organization 
     (hereinafter in this paragraph collectively referred to as a 
     `proposed rule change') that relates to higher margin levels, 
     fraud or manipulation, recordkeeping, reporting, listing 
     standards, or decimal pricing for security futures products, 
     sales practices for security futures products for persons who 
     effect transactions in security futures products, or rules 
     effectuating such self-regulatory organization's obligation 
     to enforce the securities laws. Such proposed rule change 
     shall be accompanied by a concise general statement of the 
     basis and purpose of such proposed rule change. The 
     Commission shall, upon the filing of any proposed rule 
     change, promptly publish notice thereof together with the 
     terms of substance of the proposed rule change or a 
     description of the subjects and issues involved. The 
     Commission shall give interested persons an opportunity to 
     submit data, views, and arguments concerning such proposed 
     rule change.
       ``(B) Filing with cftc.--A proposed rule change filed with 
     the Commission pursuant to subparagraph (A) shall be filed 
     concurrently with the Commodity Futures Trading Commission. 
     Such proposed rule change may take effect upon filing of a 
     written certification with the Commodity Futures Trading 
     Commission under section 5c(c) of the Commodity Exchange Act, 
     upon a determination by the Commodity Futures Trading 
     Commission that review of the proposed rule change is not 
     necessary, or upon approval of the proposed rule change by 
     the Commodity Futures Trading Commission.
       ``(C) Abrogation of rule changes.--Any proposed rule change 
     of a self-regulatory organization that has taken effect 
     pursuant to subparagraph (B) may be enforced by such self-
     regulatory organization to the extent such rule is not 
     inconsistent with the provisions of this title, the rules and 
     regulations thereunder, and applicable Federal law. At any 
     time within 60 days of the date of the filing of a written 
     certification with the Commodity Futures Trading Commission 
     under section 5c(c) of the Commodity Exchange Act, the date 
     the Commodity Futures Trading Commission determines that 
     review of such proposed rule change is not necessary, or the 
     date the Commodity Futures Trading Commission approves such 
     proposed rule change, the Commission, after consultation with 
     the Commodity Futures Trading Commission, may summarily 
     abrogate the proposed rule change and require that the 
     proposed rule change be refiled in accordance with the 
     provisions of paragraph (1), if it appears to the Commission 
     that such proposed rule change unduly burdens competition or 
     efficiency, conflicts with the securities laws, or is 
     inconsistent with the public interest and the protection of 
     investors. Commission action pursuant to the preceding 
     sentence shall not affect the validity or force of the rule 
     change during the period it was in effect and shall not be 
     reviewable under section 25 of this title nor deemed to be a 
     final agency action for purposes of section 704 of title 5, 
     United States Code.
       ``(D) Review of resubmitted abrogated rules.--
       ``(i) Proceedings.--Within 35 days of the date of 
     publication of notice of the filing of a proposed rule change 
     that is abrogated in accordance with subparagraph (C) and 
     refiled in accordance with paragraph (1), or within such 
     longer period as the Commission may designate up to 90 days 
     after such date if the Commission finds such longer period to 
     be appropriate and publishes its reasons for so finding or as 
     to which the self-regulatory organization consents, the 
     Commission shall--

       ``(I) by order approve such proposed rule change; or
       ``(II) after consultation with the Commodity Futures 
     Trading Commission, institute proceedings to determine 
     whether the proposed rule change should be disapproved. 
     Proceedings under subclause (II) shall include notice of the 
     grounds for disapproval under consideration and opportunity 
     for hearing and be concluded within 180 days after the date 
     of publication of notice of the filing of the proposed rule 
     change. At the conclusion of such proceedings, the 
     Commission, by order, shall approve or disapprove such 
     proposed rule change. The Commission may extend the time for 
     conclusion of such proceedings for up to 60 days if the 
     Commission finds good cause for such extension and publishes 
     its reasons for so finding or for such longer period as to 
     which the self-regulatory organization consents.

       ``(ii) Grounds for approval.--The Commission shall approve 
     a proposed rule change of a self-regulatory organization 
     under this subparagraph if the Commission finds that such 
     proposed rule change does not unduly burden competition or 
     efficiency, does not conflict with the securities laws, and 
     is not inconsistent with the public interest or the 
     protection of investors. The Commission shall disapprove such 
     a proposed rule change of a self-regulatory organization if 
     it does not make such finding. The Commission shall not 
     approve any proposed rule change prior to the 30th day after 
     the date of publication of notice of the filing thereof, 
     unless the Commission finds good cause for so doing and 
     publishes its reasons for so finding.''.
       (2) Decimal pricing provisions.--Section 19(b) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended 
     by inserting after paragraph (7), as added by paragraph (1), 
     the following:
       ``(8) Decimal pricing.--Not later than 9 months after the 
     date on which trading in any security futures product 
     commences under this title, all self-regulatory organizations 
     listing or trading security futures products shall file 
     proposed rule changes necessary to implement decimal pricing 
     of security futures products. The Commission may not require 
     such rules to contain equal minimum increments in such 
     decimal pricing.''.
       (3) Consultation provisions.--Section 19(b) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended 
     by inserting after paragraph (8), as added by paragraph (2), 
     the following:
       ``(9) Consultation with cftc.--
       ``(A) Consultation required.--The Commission shall consult 
     with and consider the views of the Commodity Futures Trading 
     Commission prior to approving or disapproving a proposed rule 
     change filed by a national securities association registered 
     pursuant to section 15A(a) or a national securities exchange 
     subject to the provisions of subsection (a) that primarily 
     concerns conduct related to transactions in security futures 
     products, except where the Commission determines that an 
     emergency exists requiring expeditious or summary action and 
     publishes its reasons therefor.
       ``(B) Responses to cftc comments and findings.--If the 
     Commodity Futures Trading Commission comments in writing to 
     the Commission on a proposed rule that has been published for 
     comment, the Commission shall respond in writing to such 
     written comment before approving or disapproving the proposed 
     rule. If the Commodity Futures Trading Commission determines, 
     and notifies the Commission, that such rule, if implemented 
     or as applied, would--
       ``(i) adversely affect the liquidity or efficiency of the 
     market for security futures products; or
       ``(ii) impose any burden on competition not necessary or 
     appropriate in furtherance of the purposes of this section,
     the Commission shall, prior to approving or disapproving the 
     proposed rule, find that such rule is necessary and 
     appropriate in furtherance of the purposes of this section 
     notwithstanding the Commodity Futures Trading Commission's 
     determination.''.
       (c) Review of Disciplinary Proceedings.--Section 19(d) of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78s(d)) is 
     amended by adding at the end the following:
       ``(3) The provisions of this subsection shall apply to an 
     exchange registered pursuant to section 6(g) of this title or 
     a national securities association registered pursuant to 
     section 15A(k) of this title only to the extent that such 
     exchange or association imposes any final disciplinary 
     sanction for--
       ``(A) a violation of the Federal securities laws or the 
     rules and regulations thereunder; or
       ``(B) a violation of a rule of such exchange or 
     association, as to which a proposed change would be required 
     to be filed under section 19 of this title, except that, to 
     the extent that the exchange or association rule violation 
     relates to any account, agreement, contract, or transaction, 
     this subsection shall apply only to the extent such violation 
     involves a security futures product.''.

     SEC. 203. REGULATORY RELIEF FOR INTERMEDIARIES TRADING 
                   SECURITY FUTURES PRODUCTS.

       (a) Expedited Registration and Exemptions.--
       (1) Amendment.--Section 15(b) of the Securities Exchange 
     Act of 1934 (15 U.S.C. 78o(b)) is amended by adding at the 
     end the following:
       ``(11) Broker/dealer registration with respect to 
     transactions in security futures products.--
       ``(A) Notice registration.--
       ``(i) Contents of notice.--Notwithstanding paragraphs (1) 
     and (2), a broker or dealer required to register only because 
     it effects transactions in security futures products on an 
     exchange registered pursuant to section 6(g) may register for 
     purposes of this section by filing with the Commission a 
     written notice in such form and containing such information 
     concerning such broker or dealer and any persons associated 
     with such broker or dealer as the Commission, by rule, may 
     prescribe as necessary or appropriate in the public interest 
     or for the protection of investors. A broker or dealer may 
     not register under this paragraph unless that broker or 
     dealer is a member of a national securities association 
     registered under section 15A(k).
       ``(ii) Immediate effectiveness.--Such registration shall be 
     effective contemporaneously with the submission of notice, in 
     written or electronic form, to the Commission, except that 
     such registration shall not be effective if the registration 
     would be subject to suspension or revocation under paragraph 
     (4).
       ``(iii) Suspension.--Such registration shall be suspended 
     immediately if a national securities association registered 
     pursuant to section 15A(k) of this title suspends the 
     membership of that broker or dealer.
       ``(iv) Termination.--Such registration shall be terminated 
     immediately if any of the above stated conditions for 
     registration set forth in this paragraph are no longer 
     satisfied.
       ``(B) Exemptions for registered brokers and dealers.--A 
     broker or dealer registered pursuant to the requirements of 
     subparagraph (A) shall be exempt from the following 
     provisions of this title and the rules thereunder with 
     respect to transactions in security futures products:
       ``(i) Section 8.
       ``(ii) Section 11.
       ``(iii) Subsections (c)(3) and (c)(5) of this section.

[[Page 26912]]

       ``(iv) Section 15B.
       ``(v) Section 15C.
       ``(vi) Subsections (d), (e), (f), (g), (h), and (i) of 
     section 17.''.
       (2) Conforming amendment.--Section 28(e) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78bb(e)) is amended by adding 
     at the end the following:
       ``(4) The provisions of this subsection shall not apply 
     with regard to securities that are security futures 
     products.''.
       (b) Floor Brokers and Floor Traders.--Section 15(b) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78o(b)) is amended 
     by inserting after paragraph (11), as added by subsection 
     (a), the following:
       ``(12) Exemption for security futures product exchange 
     members.--
       ``(A) Registration exemption.--A natural person shall be 
     exempt from the registration requirements of this section if 
     such person--
       ``(i) is a member of a designated contract market 
     registered with the Commission as an exchange pursuant to 
     section 6(g);
       ``(ii) effects transactions only in securities on the 
     exchange of which such person is a member; and
       ``(iii) does not directly accept or solicit orders from 
     public customers or provide advice to public customers in 
     connection with the trading of security futures products.
       ``(B) Other exemptions.--A natural person exempt from 
     registration pursuant to subparagraph (A) shall also be 
     exempt from the following provisions of this title and the 
     rules thereunder:
       ``(i) Section 8.
       ``(ii) Section 11.
       ``(iii) Subsections (c)(3), (c)(5), and (e) of this 
     section.
       ``(iv) Section 15B.
       ``(v) Section 15C.
       ``(vi) Subsections (d), (e), (f), (g), (h), and (i) of 
     section 17.''.
       (c) Limited Purpose National Securities Association.--
     Section 15A of the Securities Exchange Act of 1934 (15 U.S.C. 
     78o-3) is amended by adding at the end the following:
       ``(k) Limited Purpose National Securities Association.--
       ``(1) Regulation of members with respect to security 
     futures products.--A futures association registered under 
     section 17 of the Commodity Exchange Act shall be a 
     registered national securities association for the limited 
     purpose of regulating the activities of members who are 
     registered as brokers or dealers in security futures products 
     pursuant to section 15(b)(11).
       ``(2) Requirements for registration.--Such a securities 
     association shall--
       ``(A) be so organized and have the capacity to carry out 
     the purposes of the securities laws applicable to security 
     futures products and to comply, and (subject to any rule or 
     order of the Commission pursuant to section 19(g)(2)) to 
     enforce compliance by its members and persons associated with 
     its members, with the provisions of the securities laws 
     applicable to security futures products, the rules and 
     regulations thereunder, and its rules;
       ``(B) have rules that--
       ``(i) are designed to prevent fraudulent and manipulative 
     acts and practices, to promote just and equitable principles 
     of trade, and, in general, to protect investors and the 
     public interest, including rules governing sales practices 
     and the advertising of security futures products reasonably 
     comparable to those of other national securities associations 
     registered pursuant to subsection (a) that are applicable to 
     security futures products; and
       ``(ii) are not designed to regulate by virtue of any 
     authority conferred by this title matters not related to the 
     purposes of this title or the administration of the 
     association;
       ``(C) have rules that provide that (subject to any rule or 
     order of the Commission pursuant to section 19(g)(2)) its 
     members and persons associated with its members shall be 
     appropriately disciplined for violation of any provision of 
     the securities laws applicable to security futures products, 
     the rules or regulations thereunder, or the rules of the 
     association, by expulsion, suspension, limitation of 
     activities, functions, and operations, fine, censure, being 
     suspended or barred from being associated with a member, or 
     any other fitting sanction; and
       ``(D) have rules that ensure that members and natural 
     persons associated with members meet such standards of 
     training, experience, and competence necessary to effect 
     transactions in security futures products and are tested for 
     their knowledge of securities and security futures products.
       ``(3) Exemption from rule change submission.--Such a 
     securities association shall be exempt from submitting 
     proposed rule changes pursuant to section 19(b) of this 
     title, except that--
       ``(A) the association shall file proposed rule changes 
     related to higher margin levels, fraud or manipulation, 
     recordkeeping, reporting, listing standards, or decimal 
     pricing for security futures products, sales practices for, 
     advertising of, or standards of training, experience, 
     competence, or other qualifications for security futures 
     products for persons who effect transactions in security 
     futures products, or rules effectuating the association's 
     obligation to enforce the securities laws pursuant to section 
     19(b)(7);
       ``(B) the association shall file pursuant to sections 
     19(b)(1) and 19(b)(2) proposed rule changes related to 
     margin, except for changes resulting in higher margin levels; 
     and
       ``(C) the association shall file pursuant to section 
     19(b)(1) proposed rule changes that have been abrogated by 
     the Commission pursuant to section 19(b)(7)(C).
       ``(4) Other exemptions.--Such a securities association 
     shall be exempt from and shall not be required to enforce 
     compliance by its members, and its members shall not, solely 
     with respect to their transactions effected in security 
     futures products, be required to comply, with the following 
     provisions of this title and the rules thereunder:
       ``(A) Section 8.
       ``(B) Subsections (b)(1), (b)(3), (b)(4), (b)(5), (b)(8), 
     (b)(10), (b)(11), (b)(12), (b)(13), (c), (d), (e), (f), (g), 
     (h), and (i) of this section.
       ``(C) Subsections (d), (f), and (k) of section 17.
       ``(D) Subsections (a), (f), and (h) of section 19.''.
       (d) Exemption Under the Securities Investor Protection Act 
     of 1970.--
       (1) Section 16(14) of the Securities Investor Protection 
     Act of 1970 (15 U.S.C. 78lll(14)) is amended by inserting 
     ``or any security future as that term is defined in section 
     3(a)(55)(A) of the Securities Exchange Act of 1934,'' after 
     ``certificate of deposit for a security,''.
       (2) Section 3(a)(2)(A) of the Securities Investor 
     Protection Act of 1970 (15 U.S.C. 78ccc(a)(2)(A)) is 
     amended--
       (A) in clause (i), by striking ``and'' after the semicolon;
       (B) in clause (ii), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(iii) persons who are registered as a broker or dealer 
     pursuant to section 15(b)(11)(A) of the Securities Exchange 
     Act of 1934.''.

     SEC. 204. SPECIAL PROVISIONS FOR INTERAGENCY COOPERATION.

       Section 17(b) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78q(b)) is amended--
       (1) by striking ``(b) All'' and inserting the following:
       ``(b) Records Subject to Examination.--
       ``(1) Procedures for cooperation with other agencies.--
     All'';
       (2) by striking ``prior to conducting any such examination 
     of a registered clearing'' and inserting the following: 
     ``prior to conducting any such examination of a--
       ``(A) registered clearing'';
       (3) by redesignating the last sentence as paragraph (4)(C);
       (4) by striking the period at the end of the first sentence 
     and inserting the following: ``; or
       ``(B) broker or dealer registered pursuant to section 
     15(b)(11), exchange registered pursuant to section 6(g), or 
     national securities association registered pursuant to 
     section 15A(k) gives notice to the Commodity Futures Trading 
     Commission of such proposed examination and consults with the 
     Commodity Futures Trading Commission concerning the 
     feasibility and desirability of coordinating such examination 
     with examinations conducted by the Commodity Futures Trading 
     Commission in order to avoid unnecessary regulatory 
     duplication or undue regulatory burdens for such broker or 
     dealer or exchange.'';
       (5) by adding at the end the following new paragraphs:
       ``(2) Furnishing data and reports to cftc.--The Commission 
     shall notify the Commodity Futures Trading Commission of any 
     examination conducted of any broker or dealer registered 
     pursuant to section 15(b)(11), exchange registered pursuant 
     to section 6(g), or national securities association 
     registered pursuant to section 15A(k) and, upon request, 
     furnish to the Commodity Futures Trading Commission any 
     examination report and data supplied to, or prepared by, the 
     Commission in connection with such examination.
       ``(3) Use of cftc reports.--Prior to conducting an 
     examination under paragraph (1), the Commission shall use the 
     reports of examinations, if the information available therein 
     is sufficient for the purposes of the examination, of--
       ``(A) any broker or dealer registered pursuant to section 
     15(b)(11);
       ``(B) exchange registered pursuant to section 6(g); or
       ``(C) national securities association registered pursuant 
     to section 15A(k);
     that is made by the Commodity Futures Trading Commission, a 
     national securities association registered pursuant to 
     section 15A(k), or an exchange registered pursuant to section 
     6(g).
       ``(4) Rules of construction.--
       ``(A) Notwithstanding any other provision of this 
     subsection, the records of a broker or dealer registered 
     pursuant to section 15(b)(11), an exchange registered 
     pursuant to section 6(g), or a national securities 
     association registered pursuant to section 15A(k) described 
     in this subparagraph shall not be subject to routine periodic 
     examinations by the Commission.
       ``(B) Any recordkeeping rules adopted under this subsection 
     for a broker or dealer registered pursuant to section 
     15(b)(11), an exchange registered pursuant to section 6(g), 
     or a national securities association registered pursuant to 
     section 15A(k) shall be limited to records with respect to 
     persons, accounts, agreements, contracts, and transactions 
     involving security futures products.''; and
       (6) in paragraph (4)(C) (as redesignated by paragraph (3) 
     of this section), by striking ``Nothing in the proviso to the 
     preceding sentence'' and inserting ``Nothing in the proviso 
     in paragraph (1)''.

     SEC. 205. MAINTENANCE OF MARKET INTEGRITY FOR SECURITY 
                   FUTURES PRODUCTS.

       (a) Addition of Security Futures Products to Option-
     Specific Enforcement Provisions.--
       (1) Prohibition against manipulation.--Section 9(b) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78i(b)) is 
     amended--

[[Page 26913]]

       (A) in paragraph (1)--
       (i) by inserting ``(A)'' after ``acquires''; and
       (ii) by striking ``; or'' and inserting ``; or (B) any 
     security futures product on the security; or'';
       (B) in paragraph (2)--
       (i) by inserting ``(A)'' after ``interest in any''; and
       (ii) by striking ``; or'' and inserting ``; or (B) such 
     security futures product; or''; and
       (C) in paragraph (3)--
       (i) by inserting ``(A)'' after ``interest in any''; and
       (ii) by inserting ``; or (B) such security futures 
     product'' after ``privilege''.
       (2) Manipulation in options and other derivative 
     products.--Section 9(g) of the Securities Exchange Act of 
     1934 (15 U.S.C. 78i(g)) is amended--
       (A) by inserting ``(1)'' after ``(g)'';
       (B) by inserting ``other than a security futures product'' 
     after ``future delivery''; and
       (C) by adding at the end following:
       ``(2) Notwithstanding the Commodity Exchange Act, the 
     Commission shall have the authority to regulate the trading 
     of any security futures product to the extent provided in the 
     securities laws.''.
       (3) Liability of controlling persons and persons who aid 
     and abet violations.--Section 20(d) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78t(d)) is amended by 
     striking ``or privilege'' and inserting ``, privilege, or 
     security futures product''.
       (4) Liability to contemporaneous traders for insider 
     trading.--Section 21A(a)(1) of the Securities Exchange Act of 
     1934 (15 U.S.C. 78u-1(a)(1)) is amended by striking 
     ``standardized options, the Commission--'' and inserting 
     ``standardized options or security futures products, the 
     Commission--''.
       (5) Enforcement consultation.--Section 21 of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78u) is amended by adding at 
     the end the following:
       ``(i) Information to CFTC.--The Commission shall provide 
     the Commodity Futures Trading Commission with notice of the 
     commencement of any proceeding and a copy of any order 
     entered by the Commission against any broker or dealer 
     registered pursuant to section 15(b)(11), any exchange 
     registered pursuant to section 6(g), or any national 
     securities association registered pursuant to section 
     15A(k).''.

     SEC. 206. SPECIAL PROVISIONS FOR THE TRADING OF SECURITY 
                   FUTURES PRODUCTS.

       (a) Listing Standards and Conditions for Trading.--Section 
     6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f) is 
     amended by inserting after subsection (g), as added by 
     section 202, the following:
       ``(h) Trading in Security Futures Products.--
       ``(1) Trading on exchange or association required.--It 
     shall be unlawful for any person to effect transactions in 
     security futures products that are not listed on a national 
     securities exchange or a national securities association 
     registered pursuant to section 15A(a).
       ``(2) Listing standards required.--Except as otherwise 
     provided in paragraph (7), a national securities exchange or 
     a national securities association registered pursuant to 
     section 15A(a) may trade only security futures products that 
     (A) conform with listing standards that such exchange or 
     association files with the Commission under section 19(b) and 
     (B) meet the criteria specified in section 2(a)(1)(D)(i) of 
     the Commodity Exchange Act.
       ``(3) Requirements for listing standards and conditions for 
     trading.--Such listing standards shall--
       ``(A) except as otherwise provided in a rule, regulation, 
     or order issued pursuant to paragraph (4), require that any 
     security underlying the security future, including each 
     component security of a narrow-based security index, be 
     registered pursuant to section 12 of this title;
       ``(B) require that if the security futures product is not 
     cash settled, the market on which the security futures 
     product is traded have arrangements in place with a 
     registered clearing agency for the payment and delivery of 
     the securities underlying the security futures product;
       ``(C) be no less restrictive than comparable listing 
     standards for options traded on a national securities 
     exchange or national securities association registered 
     pursuant to section 15A(a) of this title;
       ``(D) except as otherwise provided in a rule, regulation, 
     or order issued pursuant to paragraph (4), require that the 
     security future be based upon common stock and such other 
     equity securities as the Commission and the Commodity Futures 
     Trading Commission jointly determine appropriate;
       ``(E) require that the security futures product is cleared 
     by a clearing agency that has in place provisions for linked 
     and coordinated clearing with other clearing agencies that 
     clear security futures products, which permits the security 
     futures product to be purchased on one market and offset on 
     another market that trades such product;
       ``(F) require that only a broker or dealer subject to 
     suitability rules comparable to those of a national 
     securities association registered pursuant to section 15A(a) 
     effect transactions in the security futures product;
       ``(G) require that the security futures product be subject 
     to the prohibition against dual trading in section 4j of the 
     Commodity Exchange Act (7 U.S.C. 6j) and the rules and 
     regulations thereunder or the provisions of section 11(a) of 
     this title and the rules and regulations thereunder, except 
     to the extent otherwise permitted under this title and the 
     rules and regulations thereunder;
       ``(H) require that trading in the security futures product 
     not be readily susceptible to manipulation of the price of 
     such security futures product, nor to causing or being used 
     in the manipulation of the price of any underlying security, 
     option on such security, or option on a group or index 
     including such securities;
       ``(I) require that procedures be in place for coordinated 
     surveillance among the market on which the security futures 
     product is traded, any market on which any security 
     underlying the security futures product is traded, and other 
     markets on which any related security is traded to detect 
     manipulation and insider trading;
       ``(J) require that the market on which the security futures 
     product is traded has in place audit trails necessary or 
     appropriate to facilitate the coordinated surveillance 
     required in subparagraph (I);
       ``(K) require that the market on which the security futures 
     product is traded has in place procedures to coordinate 
     trading halts between such market and any market on which any 
     security underlying the security futures product is traded 
     and other markets on which any related security is traded; 
     and
       ``(L) require that the margin requirements for a security 
     futures product comply with the regulations prescribed 
     pursuant to section 7(c)(2)(B), except that nothing in this 
     subparagraph shall be construed to prevent a national 
     securities exchange or national securities association from 
     requiring higher margin levels for a security futures product 
     when it deems such action to be necessary or appropriate.
       ``(4) Authority to modify certain listing standard 
     requirements.--
       ``(A) Authority to modify.--The Commission and the 
     Commodity Futures Trading Commission, by rule, regulation, or 
     order, may jointly modify the listing standard requirements 
     specified in subparagraph (A) or (D) of paragraph (3) to the 
     extent such modification fosters the development of fair and 
     orderly markets in security futures products, is necessary or 
     appropriate in the public interest, and is consistent with 
     the protection of investors.
       ``(B) Authority to grant exemptions.--The Commission and 
     the Commodity Futures Trading Commission, by order, may 
     jointly exempt any person from compliance with the listing 
     standard requirement specified in subparagraph (E) of 
     paragraph (3) to the extent such exemption fosters the 
     development of fair and orderly markets in security futures 
     products, is necessary or appropriate in the public interest, 
     and is consistent with the protection of investors.
       ``(5) Requirements for other persons trading security 
     future products.--It shall be unlawful for any person (other 
     than a national securities exchange or a national securities 
     association registered pursuant to section 15A(a)) to 
     constitute, maintain, or provide a marketplace or facilities 
     for bringing together purchasers and sellers of security 
     future products or to otherwise perform with respect to 
     security future products the functions commonly performed by 
     a stock exchange as that term is generally understood, unless 
     a national securities association registered pursuant to 
     section 15A(a) or a national securities exchange of which 
     such person is a member--
       ``(A) has in place procedures for coordinated surveillance 
     among such person, the market trading the securities 
     underlying the security future products, and other markets 
     trading related securities to detect manipulation and insider 
     trading;
       ``(B) has rules to require audit trails necessary or 
     appropriate to facilitate the coordinated surveillance 
     required in subparagraph (A); and
       ``(C) has rules to require such person to coordinate 
     trading halts with markets trading the securities underlying 
     the security future products and other markets trading 
     related securities.
       ``(6) Deferral of options on security futures trading.--No 
     person shall offer to enter into, enter into, or confirm the 
     execution of any put, call, straddle, option, or privilege on 
     a security future, except that, after 3 years after the date 
     of enactment of this subsection, the Commission and the 
     Commodity Futures Trading Commission may by order jointly 
     determine to permit trading of puts, calls, straddles, 
     options, or privileges on any security future authorized to 
     be traded under the provisions of this Act and the Commodity 
     Exchange Act.
       ``(7) Deferral of linked and coordinated clearing.--
       ``(A) Notwithstanding paragraph (2), until the compliance 
     date, a national securities exchange or national securities 
     association registered pursuant to section 15A(a) may trade a 
     security futures product that does not--
       ``(i) conform with any listing standard promulgated to meet 
     the requirement specified in subparagraph (E) of paragraph 
     (3); or
       ``(ii) meet the criterion specified in section 
     2(a)(1)(D)(i)(IV) of the Commodity Exchange Act.
       ``(B) The Commission and the Commodity Futures Trading 
     Commission shall jointly publish in the Federal Register a 
     notice of the compliance date no later than 165 days before 
     the compliance date.
       ``(C) For purposes of this paragraph, the term `compliance 
     date' means the later of--
       ``(i) 180 days after the end of the first full calendar 
     month period in which the average aggregate comparable share 
     volume for all security futures products based on single 
     equity securities traded on all national securities 
     exchanges,

[[Page 26914]]

     any national securities associations registered pursuant to 
     section 15A(a), and all other persons equals or exceeds 10 
     percent of the average aggregate comparable share volume of 
     options on single equity securities traded on all national 
     securities exchanges and any national securities associations 
     registered pursuant to section 15A(a); or
       ``(ii) 2 years after the date on which trading in any 
     security futures product commences under this title.''.
       (b) Margin.--Section 7 of the Securities Exchange Act of 
     1934 (15 U.S.C. 78g) is amended--
       (1) in subsection (a), by inserting ``or a security futures 
     product'' after ``exempted security'';
       (2) in subsection (c)(1)(A), by inserting ``except as 
     provided in paragraph (2),'' after ``security),'';
       (3) by redesignating paragraph (2) of subsection (c) as 
     paragraph (3) of such subsection; and
       (4) by inserting after paragraph (1) of such subsection the 
     following:
       ``(2) Margin regulations.--
       ``(A) Compliance with margin rules required.--It shall be 
     unlawful for any broker, dealer, or member of a national 
     securities exchange to, directly or indirectly, extend or 
     maintain credit to or for, or collect margin from any 
     customer on, any security futures product unless such 
     activities comply with the regulations--
       ``(i) which the Board shall prescribe pursuant to 
     subparagraph (B); or
       ``(ii) if the Board determines to delegate the authority to 
     prescribe such regulations, which the Commission and the 
     Commodity Futures Trading Commission shall jointly prescribe 
     pursuant to subparagraph (B).
     If the Board delegates the authority to prescribe such 
     regulations under clause (ii) and the Commission and the 
     Commodity Futures Trading Commission have not jointly 
     prescribed such regulations within a reasonable period of 
     time after the date of such delegation, the Board shall 
     prescribe such regulations pursuant to subparagraph (B).
       ``(B) Criteria for issuance of rules.--The Board shall 
     prescribe, or, if the authority is delegated pursuant to 
     subparagraph (A)(ii), the Commission and the Commodity 
     Futures Trading Commission shall jointly prescribe, such 
     regulations to establish margin requirements, including the 
     establishment of levels of margin (initial and maintenance) 
     for security futures products under such terms, and at such 
     levels, as the Board deems appropriate, or as the Commission 
     and the Commodity Futures Trading Commission jointly deem 
     appropriate--
       ``(i) to preserve the financial integrity of markets 
     trading security futures products;
       ``(ii) to prevent systemic risk;
       ``(iii) to require that--

       ``(I) the margin requirements for a security future product 
     be consistent with the margin requirements for comparable 
     option contracts traded on any exchange registered pursuant 
     to section 6(a) of this title; and
       ``(II) initial and maintenance margin levels for a security 
     future product not be lower than the lowest level of margin, 
     exclusive of premium, required for any comparable option 
     contract traded on any exchange registered pursuant to 
     section 6(a) of this title, other than an option on a 
     security future;

     except that nothing in this subparagraph shall be construed 
     to prevent a national securities exchange or national 
     securities association from requiring higher margin levels 
     for a security future product when it deems such action to be 
     necessary or appropriate; and
       ``(iv) to ensure that the margin requirements (other than 
     levels of margin), including the type, form, and use of 
     collateral for security futures products, are and remain 
     consistent with the requirements established by the Board, 
     pursuant to subparagraphs (A) and (B) of paragraph (1).''.
       (c) Incorporation of Security Futures Products Into the 
     National Market System.--Section 11A of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78k-1) is amended by adding 
     at the end the following:
       ``(e) National Markets System for Security Futures 
     Products.--
       ``(1) Consultation and cooperation required.--With respect 
     to security futures products, the Commission and the 
     Commodity Futures Trading Commission shall consult and 
     cooperate so that, to the maximum extent practicable, their 
     respective regulatory responsibilities may be fulfilled and 
     the rules and regulations applicable to security futures 
     products may foster a national market system for security 
     futures products if the Commission and the Commodity Futures 
     Trading Commission jointly determine that such a system would 
     be consistent with the congressional findings in subsection 
     (a)(1). In accordance with this objective, the Commission 
     shall, at least 15 days prior to the issuance for public 
     comment of any proposed rule or regulation under this section 
     concerning security futures products, consult and request the 
     views of the Commodity Futures Trading Commission.
       ``(2) Application of rules by order of cftc.--No rule 
     adopted pursuant to this section shall be applied to any 
     person with respect to the trading of security futures 
     products on an exchange that is registered under section 6(g) 
     unless the Commodity Futures Trading Commission has issued an 
     order directing that such rule is applicable to such 
     persons.''.
       (d) Incorporation of Security Futures Products Into the 
     National System for Clearance and Settlement.--Section 17A(b) 
     of the Securities Exchange Act of 1934 (15 U.S.C. 78q-1(b)) 
     is amended by adding at the end the following:
       ``(7)(A) A clearing agency that is regulated directly or 
     indirectly by the Commodity Futures Trading Commission 
     through its association with a designated contract market for 
     security futures products that is a national securities 
     exchange registered pursuant to section 6(g), and that would 
     be required to register pursuant to paragraph (1) of this 
     subsection only because it performs the functions of a 
     clearing agency with respect to security futures products 
     effected pursuant to the rules of the designated contract 
     market with which such agency is associated, is exempted from 
     the provisions of this section and the rules and regulations 
     thereunder, except that if such a clearing agency performs 
     the functions of a clearing agency with respect to a security 
     futures product that is not cash settled, it must have 
     arrangements in place with a registered clearing agency to 
     effect the payment and delivery of the securities underlying 
     the security futures product.
       ``(B) Any clearing agency that performs the functions of a 
     clearing agency with respect to security futures products 
     must coordinate with and develop fair and reasonable links 
     with any and all other clearing agencies that perform the 
     functions of a clearing agency with respect to security 
     futures products, in order to permit, as of the compliance 
     date (as defined in section 6(h)(6)(C)), security futures 
     products to be purchased on one market and offset on another 
     market that trades such products.''.
       (e) Market Emergency Powers and Circuit Breakers.--Section 
     12(k) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78l(k)) is amended--
       (1) in paragraph (1), by adding at the end the following: 
     ``If the actions described in subparagraph (A) or (B) involve 
     a security futures product, the Commission shall consult with 
     and consider the views of the Commodity Futures Trading 
     Commission.''; and
       (2) in paragraph (2)(B), by inserting after the first 
     sentence the following: ``If the actions described in 
     subparagraph (A) involve a security futures product, the 
     Commission shall consult with and consider the views of the 
     Commodity Futures Trading Commission.''.
       (f) Transaction Fees.--Section 31 of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78ee) is amended--
       (1) in subsection (a), by inserting ``and assessments'' 
     after ``fees'';
       (2) in subsections (b), (c), and (d)(1), by striking ``and 
     other evidences of indebtedness'' and inserting ``other 
     evidences of indebtedness, and security futures products'';
       (3) in subsection (f), by inserting ``or assessment'' after 
     ``fee'';
       (4) in subsection (g), by inserting ``and assessment'' 
     after ``fee'';
       (5) by redesignating subsections (e), (f), and (g) as 
     subsections (f), (g), and (h), respectively; and
       (6) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Assessments on Security Futures Transactions.--Each 
     national securities exchange and national securities 
     association shall pay to the Commission an assessment equal 
     to $0.02 for each round turn transaction (treated as 
     including one purchase and one sale of a contract of sale for 
     future delivery) on a security future traded on such national 
     securities exchange or by or through any member of such 
     association otherwise than on a national securities exchange, 
     except that for fiscal year 2007 or any succeeding fiscal 
     year such assessment shall be equal to $0.0075 for each such 
     transaction. Assessments collected pursuant to this 
     subsection shall be deposited and collected as general 
     revenue of the Treasury.''.
       (g) Exemption From Short Sale Provisions.--Section 10(a) of 
     the Securities Exchange Act of 1934 (15 U.S.C 78j(a)) is 
     amended--
       (1) by inserting ``(1)'' after ``(a)''; and
       (2) by adding at the end the following:
       ``(2) Paragraph (1) of this subsection shall not apply to 
     security futures products.''.
       (h) Rulemaking Authority To Address Duplicative Regulation 
     of Dual Registrants.--Section 15(c)(3) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78o(c)(3))is amended--
       (1) by inserting ``(A)'' after ``(3)''; and
       (2) by adding at the end the following:
       ``(B) Consistent with this title, the Commission, in 
     consultation with the Commodity Futures Trading Commission, 
     shall issue such rules, regulations, or orders as are 
     necessary to avoid duplicative or conflicting regulations 
     applicable to any broker or dealer registered with the 
     Commission pursuant to section 15(b) (except paragraph (11) 
     thereof), that is also registered with the Commodity Futures 
     Trading Commission pursuant to section 4f(a) of the Commodity 
     Exchange Act (except paragraph (2) thereof), with respect to 
     the application of (i) the provisions of section 8, section 
     15(c)(3), and section 17 of this title and the rules and 
     regulations thereunder related to the treatment of customer 
     funds, securities, or property, maintenance of books and 
     records, financial reporting, or other financial 
     responsibility rules, involving security futures products and 
     (ii) similar provisions of the Commodity Exchange Act and 
     rules and regulations thereunder involving security futures 
     products.''.
       (i) Obligation To Address Duplicative Regulation of Dual 
     Registrants.--Section 6 of the Securities Exchange Act of 
     1934 (15 U.S.C 78f) is amended by inserting after subsection 
     (h), as added by subsection (a) of this section, the 
     following:

[[Page 26915]]

       ``(i) Consistent with this title, each national securities 
     exchange registered pursuant to subsection (a) of this 
     section shall issue such rules as are necessary to avoid 
     duplicative or conflicting rules applicable to any broker or 
     dealer registered with the Commission pursuant to section 
     15(b) (except paragraph (11) thereof), that is also 
     registered with the Commodity Futures Trading Commission 
     pursuant to section 4f(a) of the Commodity Exchange Act 
     (except paragraph (2) thereof), with respect to the 
     application of--
       (1) rules of such national securities exchange of the type 
     specified in section 15(c)(3)(B) involving security futures 
     products; and
       (2) similar rules of national securities exchanges 
     registered pursuant to section 6(g) and national securities 
     associations registered pursuant to section 15A(k) involving 
     security futures products.''.
       (j) Obligation To Address Duplicative Regulation of Dual 
     Registrants.--Section 15A of the Securities Exchange Act of 
     1934 (15 U.S.C 78o-3) is amended by inserting after 
     subsection (k), as added by section 203, the following:
       ``(l) Consistent with this title, each national securities 
     association registered pursuant to subsection (a) of this 
     section shall issue such rules as are necessary to avoid 
     duplicative or conflicting rules applicable to any broker or 
     dealer registered with the Commission pursuant to section 
     15(b) (except paragraph (11) thereof), that is also 
     registered with the Commodity Futures Trading Commission 
     pursuant to section 4f(a) of the Commodity Exchange Act 
     (except paragraph (2) thereof), with respect to the 
     application of--
       ``(1) rules of such national securities association of the 
     type specified in section 15(c)(3)(B) involving security 
     futures products; and
       ``(2) similar rules of national securities associations 
     registered pursuant to subsection (k) of this section and 
     national securities exchanges registered pursuant to section 
     6(g) involving security futures products.''.
       (k) Obligation To Put in Place Procedures and Adopt 
     Rules.--
       (1) National securities associations.--Section 15A of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78o-3) is amended 
     by inserting after subsection (l), as added by subsection (j) 
     of this section, the following new subsection:
       ``(m) Procedures and Rules for Security Future Products.--A 
     national securities association registered pursuant to 
     subsection (a) shall, not later than 8 months after the date 
     of enactment of the Commodity Futures Modernization Act of 
     2000, implement the procedures specified in section 
     6(h)(5)(A) of this title and adopt the rules specified in 
     subparagraphs (B) and (C) of section 6(h)(5) of this 
     title.''.
       (2) National securities exchanges.--Section 6 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended by 
     inserting after subsection (i), as added by subsection (i) of 
     this section, the following new subsection:
       ``(j) Procedures and Rules for Security Future Products.--A 
     national securities exchange registered pursuant to 
     subsection (a) shall implement the procedures specified in 
     section 6(h)(5)(A) of this title and adopt the rules 
     specified in subparagraphs (B) and (C) of section 6(h)(5) of 
     this title not later than 8 months after the date of receipt 
     of a request from an alternative trading system for such 
     implementation and rules.''.
       (l) Obligation To Address Security Futures Products Traded 
     on Foreign Exchanges.--Section 6 of the Securities Exchange 
     Act of 1934 (15 U.S.C. 78f) is amended by adding after 
     subsection (j), as added by subsection (k) of this section, 
     the following--
       ``(k)(1) To the extent necessary or appropriate in the 
     public interest, to promote fair competition, and consistent 
     with the promotion of market efficiency, innovation, and 
     expansion of investment opportunities, the protection of 
     investors, and the maintenance of fair and orderly markets, 
     the Commission and the Commodity Futures Trading Commission 
     shall jointly issue such rules, regulations, or orders as are 
     necessary and appropriate to permit the offer and sale of a 
     security futures product traded on or subject to the rules of 
     a foreign board of trade to United States persons.
       ``(2) The rules, regulations, or orders adopted under 
     paragraph (1) shall take into account, as appropriate, the 
     nature and size of the markets that the securities underlying 
     the security futures product reflect.''.

     SEC. 207. CLEARANCE AND SETTLEMENT.

       Section 17A(b) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78q-1(b)) is amended--
       (1) in paragraph (3)(A), by inserting ``and derivative 
     agreements, contracts, and transactions'' after ``prompt and 
     accurate clearance and settlement of securities 
     transactions'';
       (2) in paragraph (3)(F), by inserting ``and, to the extent 
     applicable, derivative agreements, contracts, and 
     transactions'' after ``designed to promote the prompt and 
     accurate clearance and settlement of securities 
     transactions''; and
       (3) by inserting after paragraph (7), as added by section 
     206(d), the following:
       ``(8) A registered clearing agency shall be permitted to 
     provide facilities for the clearance and settlement of any 
     derivative agreements, contracts, or transactions that are 
     excluded from the Commodity Exchange Act, subject to the 
     requirements of this section and to such rules and 
     regulations as the Commission may prescribe as necessary or 
     appropriate in the public interest, for the protection of 
     investors, or otherwise in furtherance of the purposes of 
     this title.''.

     SEC. 208. AMENDMENTS RELATING TO REGISTRATION AND DISCLOSURE 
                   ISSUES UNDER THE SECURITIES ACT OF 1933 AND THE 
                   SECURITIES EXCHANGE ACT OF 1934.

       (a) Amendments to the Securities Act of 1933.--
       (1) Treatment of security futures products.--Section 2(a) 
     of the Securities Act of 1933 (15 U.S.C. 77b(a)) is amended--
       (A) in paragraph (1), by inserting ``security future,'' 
     after ``treasury stock,'';
       (B) in paragraph (3), by adding at the end the following: 
     ``Any offer or sale of a security futures product by or on 
     behalf of the issuer of the securities underlying the 
     security futures product, an affiliate of the issuer, or an 
     underwriter, shall constitute a contract for sale of, sale 
     of, offer for sale, or offer to sell the underlying 
     securities.'';
       (C) by adding at the end the following:
       ``(16) The terms `security future', `narrow-based security 
     index', and `security futures product' have the same meanings 
     as provided in section 3(a)(55) of the Securities Exchange 
     Act of 1934.''.
       (2) Exemption from registration.--Section 3(a) of the 
     Securities Act of 1933 (15 U.S.C. 77c(a)) is amended by 
     adding at the end the following:
       ``(14) Any security futures product that is--
       ``(A) cleared by a clearing agency registered under section 
     17A of the Securities Exchange Act of 1934 or exempt from 
     registration under subsection (b)(7) of such section 17A; and
       ``(B) traded on a national securities exchange or a 
     national securities association registered pursuant to 
     section 15A(a) of the Securities Exchange Act of 1934.''.
       (3) Conforming amendment.--Section 12(a)(2) of the 
     Securities Act of 1933 (15 U.S.C. 77l(a)(2)) is amended by 
     striking ``paragraph (2)'' and inserting ``paragraphs (2) and 
     (14)''.
       (b) Amendments to the Securities Exchange Act of 1934.--
       (1) Exemption from registration.--Section 12(a) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78l(a)) is amended 
     by adding at the end the following: ``The provisions of this 
     subsection shall not apply in respect of a security futures 
     product traded on a national securities exchange.''.
       (2) Exemptions from reporting requirement.--Section 
     12(g)(5) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78l(g)(5)) is amended by adding at the end the following: 
     ``For purposes of this subsection, a security futures product 
     shall not be considered a class of equity security of the 
     issuer of the securities underlying the security futures 
     product.''.
       (3) Transactions by corporate insiders.--Section 16 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78p) is amended by 
     adding at the end the following:
       ``(f) Treatment of Transactions in Security Futures 
     Products.--The provisions of this section shall apply to 
     ownership of and transactions in security futures 
     products.''.

     SEC. 209. AMENDMENTS TO THE INVESTMENT COMPANY ACT OF 1940 
                   AND THE INVESTMENT ADVISERS ACT OF 1940.

       (a) Definitions Under the Investment Company Act of 1940 
     and the Investment Advisers Act of 1940.--
       (1) Section 2(a)(36) of the Investment Company Act of 1940 
     (15 U.S.C. 80a-2(a)(36)) is amended by inserting ``security 
     future,'' after ``treasury stock,''.
       (2) Section 202(a)(18) of the Investment Advisers Act of 
     1940 (15 U.S.C. 80b-2(a)(18)) is amended by inserting 
     ``security future,'' after ``treasury stock,''.
       (3) Section 2(a) of the Investment Company Act of 1940 (15 
     U.S.C. 80a-2(a)) is amended by adding at the end the 
     following:
       ``(52) The terms `security future' and `narrow-based 
     security index' have the same meanings as provided in section 
     3(a)(55) of the Securities Exchange Act of 1934.''.
       (4) Section 202(a) of the Investment Advisers Act of 1940 
     (15 U.S.C. 80b-2(a)) is amended by adding at the end the 
     following:
       ``(27) The terms `security future' and `narrow-based 
     security index' have the same meanings as provided in section 
     3(a)(55) of the Securities Exchange Act of 1934.''.
       (b) Other Provision.--Section 203(b) of the Investment 
     Advisers Act of 1940 (15 U.S.C. 80b-3(b)) is amended--
       (1) by striking ``or'' at the end of paragraph (4);
       (2) by striking the period at the end of paragraph (5) and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(6) any investment adviser that is registered with the 
     Commodity Futures Trading Commission as a commodity trading 
     advisor whose business does not consist primarily of acting 
     as an investment adviser, as defined in section 202(a)(11) of 
     this title, and that does not act as an investment adviser 
     to--
       ``(A) an investment company registered under title I of 
     this Act; or
       ``(B) a company which has elected to be a business 
     development company pursuant to section 54 of title I of this 
     Act and has not withdrawn its election.''.

     SEC. 210. PREEMPTION OF STATE LAWS.

       Section 28(a) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78bb(a)) is amended--
       (1) in the last sentence--
       (A) by inserting ``subject to this title'' after 
     ``privilege, or other security''; and
       (B) by striking ``any such instrument, if such instrument 
     is traded pursuant to rules and regulations of a self-
     regulatory organization that are filed with the Commission 
     pursuant to section 19(b) of this Act'' and inserting ``any 
     such security''; and

[[Page 26916]]

       (2) by adding at the end the following new sentence: ``No 
     provision of State law regarding the offer, sale, or 
     distribution of securities shall apply to any transaction in 
     a security futures product, except that this sentence shall 
     not be construed as limiting any State antifraud law of 
     general applicability.''.

          Subtitle B--Amendments to the Commodity Exchange Act

     SEC. 251. JURISDICTION OF SECURITIES AND EXCHANGE COMMISSION; 
                   OTHER PROVISIONS.

       (a) Jurisdiction of Securities and Exchange Commission.--
       (1) Section 2(a)(1)(C) of the Commodity Exchange Act (7 
     U.S.C. 2a) (as redesignated by section 34(a)(2)(C)) is 
     amended--
       (A) in clause (ii)--
       (i) by inserting ``or register a derivatives transaction 
     execution facility that trades or executes,'' after 
     ``contract market in,'';
       (ii) by inserting after ``contracts) for future delivery'' 
     the following: ``, and no derivatives transaction execution 
     facility shall trade or execute such contracts of sale (or 
     options on such contracts) for future delivery,'';
       (iii) by striking ``making such application demonstrates 
     and the Commission expressly finds that the specific contract 
     (or option on such contract) with respect to which the 
     application has been made meets'' and inserting ``or the 
     derivatives transaction execution facility, and the 
     applicable contract, meet'';
       (iv) by striking subclause (III) of clause (ii) and 
     inserting the following:
       ``(III) Such group or index of securities shall not 
     constitute a narrow-based security index.'';
       (B) by striking clause (iii);
       (C) by striking clause (iv) and inserting the following:
       ``(iii) If, in its discretion, the Commission determines 
     that a stock index futures contract, notwithstanding its 
     conformance with the requirements in clause (ii) of this 
     subparagraph, can reasonably be used as a surrogate for 
     trading a security (including a security futures product), it 
     may, by order, require such contract and any option thereon 
     be traded and regulated as security futures products as 
     defined in section 3(a)(56) of the Securities Exchange Act of 
     1934 and section 1a of this Act subject to all rules and 
     regulations applicable to security futures products under 
     this Act and the securities laws as defined in section 
     3(a)(47) of the Securities Exchange Act of 1934.''; and
       (D) by redesignating clause (v) as clause (iv).
       (2) Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C. 
     2, 2a, 4) is amended by adding at the end the following:
       ``(D)(i) Notwithstanding any other provision of this Act, 
     the Securities and Exchange Commission shall have 
     jurisdiction and authority over security futures as defined 
     in section 3(a)(55) of the Securities Exchange Act of 1934, 
     section 2(a)(16) of the Securities Act of 1933, section 
     2(a)(52) of the Investment Company Act of 1940, and section 
     202(a)(27) of the Investment Advisers Act of 1940, options on 
     security futures, and persons effecting transactions in 
     security futures and options thereon, and this Act shall 
     apply to and the Commission shall have jurisdiction with 
     respect to accounts, agreements (including any transaction 
     which is of the character of, or is commonly known to the 
     trade as, an `option', `privilege', `indemnity', `bid', 
     `offer', `put', `call', `advance guaranty', or `decline 
     guaranty'), contracts, and transactions involving, and may 
     designate a board of trade as a contract market in, or 
     register a derivatives transaction execution facility that 
     trades or executes, a security futures product as defined in 
     section 1a of this Act: Provided, however, That, except as 
     provided in clause (vi) of this subparagraph, no board of 
     trade shall be designated as a contract market with respect 
     to, or registered as a derivatives transaction execution 
     facility for, any such contracts of sale for future delivery 
     unless the board of trade and the applicable contract meet 
     the following criteria:
       ``(I) Except as otherwise provided in a rule, regulation, 
     or order issued pursuant to clause (v) of this subparagraph, 
     any security underlying the security future, including each 
     component security of a narrow-based security index, is 
     registered pursuant to section 12 of the Securities Exchange 
     Act of 1934.
       ``(II) If the security futures product is not cash settled, 
     the board of trade on which the security futures product is 
     traded has arrangements in place with a clearing agency 
     registered pursuant to section 17A of the Securities Exchange 
     Act of 1934 for the payment and delivery of the securities 
     underlying the security futures product.
       ``(III) Except as otherwise provided in a rule, regulation, 
     or order issued pursuant to clause (v) of this subparagraph, 
     the security future is based upon common stock and such other 
     equity securities as the Commission and the Securities and 
     Exchange Commission jointly determine appropriate.
       ``(IV) The security futures product is cleared by a 
     clearing agency that has in place provisions for linked and 
     coordinated clearing with other clearing agencies that clear 
     security futures products, which permits the security futures 
     product to be purchased on a designated contract market, 
     registered derivatives transaction execution facility, 
     national securities exchange registered under section 6(a) of 
     the Securities Exchange Act of 1934, or national securities 
     association registered pursuant to section 15A(a) of the 
     Securities Exchange Act of 1934 and offset on another 
     designated contract market, registered derivatives 
     transaction execution facility, national securities exchange 
     registered under section 6(a) of the Securities Exchange Act 
     of 1934, or national securities association registered 
     pursuant to section 15A(a) of the Securities Exchange Act of 
     1934.
       ``(V) Only futures commission merchants, introducing 
     brokers, commodity trading advisors, commodity pool operators 
     or associated persons subject to suitability rules comparable 
     to those of a national securities association registered 
     pursuant to section 15A(a) of the Securities Exchange Act of 
     1934 solicit, accept any order for, or otherwise deal in any 
     transaction in or in connection with the security futures 
     product.
       ``(VI) The security futures product is subject to a 
     prohibition against dual trading in section 4j of this Act 
     and the rules and regulations thereunder or the provisions of 
     section 11(a) of the Securities Exchange Act of 1934 and the 
     rules and regulations thereunder, except to the extent 
     otherwise permitted under the Securities Exchange Act of 1934 
     and the rules and regulations thereunder.
       ``(VII) Trading in the security futures product is not 
     readily susceptible to manipulation of the price of such 
     security futures product, nor to causing or being used in the 
     manipulation of the price of any underlying security, option 
     on such security, or option on a group or index including 
     such securities;
       ``(VIII) The board of trade on which the security futures 
     product is traded has procedures in place for coordinated 
     surveillance among such board of trade, any market on which 
     any security underlying the security futures product is 
     traded, and other markets on which any related security is 
     traded to detect manipulation and insider trading, except 
     that, if the board of trade is an alternative trading system, 
     a national securities association registered pursuant to 
     section 15A(a) of the Securities Exchange Act of 1934 or 
     national securities exchange registered pursuant to section 
     6(a) of the Securities Exchange Act of 1934 of which such 
     alternative trading system is a member has in place such 
     procedures.
       ``(IX) The board of trade on which the security futures 
     product is traded has in place audit trails necessary or 
     appropriate to facilitate the coordinated surveillance 
     required in subclause (VIII), except that, if the board of 
     trade is an alternative trading system, a national securities 
     association registered pursuant to section 15A(a) of the 
     Securities Exchange Act of 1934 or national securities 
     exchange registered pursuant to section 6(a) of the 
     Securities Exchange Act of 1934 of which such alternative 
     trading system is a member has rules to require such audit 
     trails.
       ``(X) The board of trade on which the security futures 
     product is traded has in place procedures to coordinate 
     trading halts between such board of trade and markets on 
     which any security underlying the security futures product is 
     traded and other markets on which any related security is 
     traded, except that, if the board of trade is an alternative 
     trading system, a national securities association registered 
     pursuant to section 15A(a) of the Securities Exchange Act of 
     1934 or national securities exchange registered pursuant to 
     section 6(a) of the Securities Exchange Act of 1934 of which 
     such alternative trading system is a member has rules to 
     require such coordinated trading halts.
       ``(XI) The margin requirements for a security futures 
     product comply with the regulations prescribed pursuant to 
     section 7(c)(2)(B) of the Securities Exchange Act of 1934, 
     except that nothing in this subclause shall be construed to 
     prevent a board of trade from requiring higher margin levels 
     for a security futures product when it deems such action to 
     be necessary or appropriate.
       ``(ii) It shall be unlawful for any person to offer, to 
     enter into, to execute, to confirm the execution of, or to 
     conduct any office or business anywhere in the United States, 
     its territories or possessions, for the purpose of 
     soliciting, or accepting any order for, or otherwise dealing 
     in, any transaction in, or in connection with, a security 
     futures product unless--
       ``(I) the transaction is conducted on or subject to the 
     rules of a board of trade that--
       ``(aa) has been designated by the Commission as a contract 
     market in such security futures product; or
       ``(bb) is a registered derivatives transaction execution 
     facility for the security futures product that has provided a 
     certification with respect to the security futures product 
     pursuant to clause (vii);
       ``(II) the contract is executed or consummated by, through, 
     or with a member of the contract market or registered 
     derivatives transaction execution facility; and
       ``(III) the security futures product is evidenced by a 
     record in writing which shows the date, the parties to such 
     security futures product and their addresses, the property 
     covered, and its price, and each contract market member or 
     registered derivatives transaction execution facility member 
     shall keep the record for a period of 3 years from the date 
     of the transaction, or for a longer period if the Commission 
     so directs, which record shall at all times be open to the 
     inspection of any duly authorized representative of the 
     Commission.
       ``(iii)(I) Except as provided in subclause (II) but 
     notwithstanding any other provision of this Act, no person 
     shall offer to enter into, enter into, or confirm the 
     execution of any option on a security future.
       ``(II) After 3 years after the date of the enactment of the 
     Commodity Futures Modernization Act of 2000, the Commission 
     and the Securities and Exchange Commission may by order 
     jointly determine to permit trading of options on any 
     security future authorized to be traded under

[[Page 26917]]

     the provisions of this Act and the Securities Exchange Act of 
     1934.
       ``(iv)(I) All relevant records of a futures commission 
     merchant or introducing broker registered pursuant to section 
     4f(a)(2), floor broker or floor trader exempt from 
     registration pursuant to section 4f(a)(3), associated person 
     exempt from registration pursuant to section 4k(6), or board 
     of trade designated as a contract market in a security 
     futures product pursuant to section 5f shall be subject to 
     such reasonable periodic or special examinations by 
     representatives of the Commission as the Commission deems 
     necessary or appropriate in the public interest, for the 
     protection of investors, or otherwise in furtherance of the 
     purposes of this Act, and the Commission, before conducting 
     any such examination, shall give notice to the Securities and 
     Exchange Commission of the proposed examination and consult 
     with the Securities and Exchange Commission concerning the 
     feasibility and desirability of coordinating the examination 
     with examinations conducted by the Securities and Exchange 
     Commission in order to avoid unnecessary regulatory 
     duplication or undue regulatory burdens for the registrant or 
     board of trade.
       ``(II) The Commission shall notify the Securities and 
     Exchange Commission of any examination conducted of any 
     futures commission merchant or introducing broker registered 
     pursuant to section 4f(a)(2), floor broker or floor trader 
     exempt from registration pursuant to section 4f(a)(3), 
     associated person exempt from registration pursuant to 
     section 4k(6), or board of trade designated as a contract 
     market in a security futures product pursuant to section 5f, 
     and, upon request, furnish to the Securities and Exchange 
     Commission any examination report and data supplied to or 
     prepared by the Commission in connection with the 
     examination.
       ``(III) Before conducting an examination under subclause 
     (I), the Commission shall use the reports of examinations, 
     unless the information sought is unavailable in the reports, 
     of any futures commission merchant or introducing broker 
     registered pursuant to section 4f(a)(2), floor broker or 
     floor trader exempt from registration pursuant to section 
     4f(a)(3), associated person exempt from registration pursuant 
     to section 4k(6), or board of trade designated as a contract 
     market in a security futures product pursuant to section 5f 
     that is made by the Securities and Exchange Commission, a 
     national securities association registered pursuant to 
     section 15A(a) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78o-3(a)), or a national securities exchange 
     registered pursuant to section 6(a) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78f(a)).
       ``(IV) Any records required under this subsection for a 
     futures commission merchant or introducing broker registered 
     pursuant to section 4f(a)(2), floor broker or floor trader 
     exempt from registration pursuant to section 4f(a)(3), 
     associated person exempt from registration pursuant to 
     section 4k(6), or board of trade designated as a contract 
     market in a security futures product pursuant to section 5f, 
     shall be limited to records with respect to accounts, 
     agreements, contracts, and transactions involving security 
     futures products.
       ``(v)(I) The Commission and the Securities and Exchange 
     Commission, by rule, regulation, or order, may jointly modify 
     the criteria specified in subclause (I) or (III) of clause 
     (i), including the trading of security futures based on 
     securities other than equity securities, to the extent such 
     modification fosters the development of fair and orderly 
     markets in security futures products, is necessary or 
     appropriate in the public interest, and is consistent with 
     the protection of investors.
       ``(II) The Commission and the Securities and Exchange 
     Commission, by order, may jointly exempt any person from 
     compliance with the criterion specified in clause (i)(IV) to 
     the extent such exemption fosters the development of fair and 
     orderly markets in security futures products, is necessary or 
     appropriate in the public interest, and is consistent with 
     the protection of investors.
       ``(vi)(I) Notwithstanding clauses (i) and (vii), until the 
     compliance date, a board of trade shall not be required to 
     meet the criterion specified in clause (i)(IV).
       ``(II) The Commission and the Securities and Exchange 
     Commission shall jointly publish in the Federal Register a 
     notice of the compliance date no later than 165 days before 
     the compliance date.
       ``(III) For purposes of this clause, the term `compliance 
     date' means the later of--
       ``(aa) 180 days after the end of the first full calendar 
     month period in which the average aggregate comparable share 
     volume for all security futures products based on single 
     equity securities traded on all designated contract markets 
     and registered derivatives transaction execution facilities 
     equals or exceeds 10 percent of the average aggregate 
     comparable share volume of options on single equity 
     securities traded on all national securities exchanges 
     registered pursuant to section 6(a) of the Securities 
     Exchange Act of 1934 and any national securities associations 
     registered pursuant to section 15A(a) of such Act; or
       ``(bb) 2 years after the date on which trading in any 
     security futures product commences under this Act.
       ``(vii) It shall be unlawful for a board of trade to trade 
     or execute a security futures product unless the board of 
     trade has provided the Commission with a certification that 
     the specific security futures product and the board of trade, 
     as applicable, meet the criteria specified in subclauses (I) 
     through (XI) of clause (i), except as otherwise provided in 
     clause (vi).''.
       (b) Margin on Security Futures.--Section 2(a)(1)(C)(vi) of 
     the Commodity Exchange Act (7 U.S.C. 2a(vi)) (as redesignated 
     by section 34) is amended--
       (1) by redesignating subclause (V) as subclause (VI); and
       (2) by striking ``(vi)(I)'' and all that follows through 
     subclause (IV) and inserting the following:
       ``(v)(I) Notwithstanding any other provision of this Act, 
     any contract market in a stock index futures contract (or 
     option thereon) other than a security futures product, or any 
     derivatives transaction execution facility on which such 
     contract or option is traded, shall file with the Board of 
     Governors of the Federal Reserve System any rule establishing 
     or changing the levels of margin (initial and maintenance) 
     for such stock index futures contract (or option thereon) 
     other than security futures products.
       ``(II) The Board may at any time request any contract 
     market or derivatives transaction execution facility to set 
     the margin for any stock index futures contract (or option 
     thereon), other than for any security futures product, at 
     such levels as the Board in its judgment determines are 
     appropriate to preserve the financial integrity of the 
     contract market or derivatives transaction execution 
     facility, or its clearing system, or to prevent systemic 
     risk. If the contract market or derivatives transaction 
     execution facility fails to do so within the time specified 
     by the Board in its request, the Board may direct the 
     contract market or derivatives transaction execution facility 
     to alter or supplement the rules of the contract market or 
     derivatives transaction execution facility as specified in 
     the request.
       ``(III) Subject to such conditions as the Board may 
     determine, the Board may delegate any or all of its 
     authority, relating to margin for any stock index futures 
     contract (or option thereon), other than security futures 
     products, under this clause to the Commission.
       ``(IV) It shall be unlawful for any futures commission 
     merchant to, directly or indirectly, extend or maintain 
     credit to or for, or collect margin from any customer on any 
     security futures product unless such activities comply with 
     the regulations prescribed pursuant to section 7(c)(2)(B) of 
     the Securities Exchange Act of 1934.
       ``(V) Nothing in this clause shall supersede or limit the 
     authority granted to the Commission in section 8a(9) to 
     direct a contract market or registered derivatives 
     transaction execution facility, on finding an emergency to 
     exist, to raise temporary margin levels on any futures 
     contract, or option on the contract covered by this clause, 
     or on any security futures product.''.
       (c) Dual Trading.--Section 4j of the Commodity Exchange Act 
     (7 U.S.C. 6j) is amended to read as follows:

     ``SEC. 4J. RESTRICTIONS ON DUAL TRADING IN SECURITY FUTURES 
                   PRODUCTS ON DESIGNATED CONTRACT MARKETS AND 
                   REGISTERED DERIVATIVES TRANSACTION EXECUTION 
                   FACILITIES.

       ``(a) The Commission shall issue regulations to prohibit 
     the privilege of dual trading in security futures products on 
     each contract market and registered derivatives transaction 
     execution facility. The regulations issued by the Commission 
     under this section--
       ``(1) shall provide that the prohibition of dual trading 
     thereunder shall take effect upon issuance of the 
     regulations; and
       ``(2) shall provide exceptions, as the Commission 
     determines appropriate, to ensure fairness and orderly 
     trading in security futures product markets, including--
       ``(A) exceptions for spread transactions and the correction 
     of trading errors;
       ``(B) allowance for a customer to designate in writing not 
     less than once annually a named floor broker to execute 
     orders for such customer, notwithstanding the regulations to 
     prohibit the privilege of dual trading required under this 
     section; and
       ``(C) other measures reasonably designed to accommodate 
     unique or special characteristics of individual boards of 
     trade or contract markets, to address emergency or unusual 
     market conditions, or otherwise to further the public 
     interest consistent with the promotion of market efficiency, 
     innovation, and expansion of investment opportunities, the 
     protection of investors, and with the purposes of this 
     section.
       ``(b) As used in this section, the term `dual trading' 
     means the execution of customer orders by a floor broker 
     during the same trading session in which the floor broker 
     executes any trade in the same contract market or registered 
     derivatives transaction execution facility for--
       ``(1) the account of such floor broker;
       ``(2) an account for which such floor broker has trading 
     discretion; or
       ``(3) an account controlled by a person with whom such 
     floor broker has a relationship through membership in a 
     broker association.
       ``(c) As used in this section, the term `broker 
     association' shall include two or more contract market 
     members or registered derivatives transaction execution 
     facility members with floor trading privileges of whom at 
     least one is acting as a floor broker, who--
       ``(1) engage in floor brokerage activity on behalf of the 
     same employer,
       ``(2) have an employer and employee relationship which 
     relates to floor brokerage activity,
       ``(3) share profits and losses associated with their 
     brokerage or trading activity, or
       ``(4) regularly share a deck of orders.''.
       (d) Exemption From Registration for Investment Advisers.--
     Section 4m of the Commodity Exchange Act (7 U.S.C. 6m) is 
     amended by adding at the end the following:

[[Page 26918]]

       ``(3) Subsection (1) of this section shall not apply to any 
     commodity trading advisor that is registered with the 
     Securities and Exchange Commission as an investment adviser 
     whose business does not consist primarily of acting as a 
     commodity trading advisor, as defined in section 1a(6), and 
     that does not act as a commodity trading advisor to any 
     investment trust, syndicate, or similar form of enterprise 
     that is engaged primarily in trading in any commodity for 
     future delivery on or subject to the rules of any contract 
     market or registered derivatives transaction execution 
     facility.''.
       (e) Exemption From Investigations of Markets in Underlying 
     Securities.--Section 16 of the Commodity Exchange Act (7 
     U.S.C. 20) is amended by adding at the end the following:
       ``(e) This section shall not apply to investigations 
     involving any security underlying a security futures 
     product.''.
       (f) Rulemaking Authority To Address Duplicative Regulation 
     of Dual Registrants.--Section 4d of the Commodity Exchange 
     Act (7 U.S.C. 6d) is amended--
       (1) by inserting ``(a)'' before the first undesignated 
     paragraph;
       (2) by inserting ``(b)'' before the second undesignated 
     paragraph; and
       (3) by adding at the end the following:
       ``(c) Consistent with this Act, the Commission, in 
     consultation with the Securities and Exchange Commission, 
     shall issue such rules, regulations, or orders as are 
     necessary to avoid duplicative or conflicting regulations 
     applicable to any futures commission merchant registered with 
     the Commission pursuant to section 4f(a) (except paragraph 
     (2) thereof), that is also registered with the Securities and 
     Exchange Commission pursuant to section 15(b) of the 
     Securities Exchange Act (except paragraph (11) thereof), 
     involving the application of--
       ``(1) section 8, section 15(c)(3), and section 17 of the 
     Securities Exchange Act of 1934 and the rules and regulations 
     thereunder related to the treatment of customer funds, 
     securities, or property, maintenance of books and records, 
     financial reporting or other financial responsibility rules 
     (as defined in section 3(a)(40) of the Securities Exchange 
     Act of 1934), involving security futures products; and
       ``(2) similar provisions of this Act and the rules and 
     regulations thereunder involving security futures 
     products.''.
       (g) Obligation To Address Duplicative Regulation of Dual 
     Registrants.--Section 17 of the Commodity Exchange Act (7 
     U.S.C. 21) is amended by adding at the end the following:
       ``(r) Consistent with this Act, each futures association 
     registered under this section shall issue such rules as are 
     necessary to avoid duplicative or conflicting rules 
     applicable to any futures commission merchant registered with 
     the Commission pursuant to section 4f(a) of this Act (except 
     paragraph (2) thereof), that is also registered with the 
     Securities and Exchange Commission pursuant to section 15(b) 
     of the Securities and Exchange Act of 1934 (except paragraph 
     (11) thereof), with respect to the application of--
       ``(1) rules of such futures association of the type 
     specified in section 4d(3) of this Act involving security 
     futures products; and
       ``(2) similar rules of national securities associations 
     registered pursuant to section 15A(a) of the Securities and 
     Exchange Act of 1934 involving security futures products.''.
       (h) Obligation to Address Duplicative Regulation of Dual 
     Registrants.--Section 5c of the Commodity Exchange Act (as 
     added by section 114) is amended by adding at the end the 
     following:
       ``(f) Consistent with this Act, each designated contract 
     market and registered derivatives transaction execution 
     facility shall issue such rules as are necessary to avoid 
     duplicative or conflicting rules applicable to any futures 
     commission merchant registered with the Commission pursuant 
     to section 4f(a) of this Act (except paragraph (2) thereof), 
     that is also registered with the Securities and Exchange 
     Commission pursuant to section 15(b) of the Securities 
     Exchange Act of 1934 (except paragraph (11) thereof) with 
     respect to the application of--
       ``(1) rules of such designated contract market or 
     registered derivatives transaction execution facility of the 
     type specified in section 4d(3) of this Act involving 
     security futures products; and
       ``(2) similar rules of national securities associations 
     registered pursuant to section 15A(a) of the Securities 
     Exchange Act of 1934 and national securities exchanges 
     registered pursuant to section 6(g) of such Act involving 
     security futures products.''.
       (i) Obligation To Address Security Futures Products Traded 
     on Foreign Exchanges.--Section 2(a)(1) of the Commodity 
     Exchange Act (7 U.S.C. 2, 2a, and 4)) is amended by adding at 
     the end the following:
       ``(E)(i) To the extent necessary or appropriate in the 
     public interest, to promote fair competition, and consistent 
     with promotion of market efficiency, innovation, and 
     expansion of investment opportunities, the protection of 
     investors, and the maintenance of fair and orderly markets, 
     the Commission and the Securities and Exchange Commission 
     shall jointly issue such rules, regulations, or orders as are 
     necessary and appropriate to permit the offer and sale of a 
     security futures product traded on or subject to the rules of 
     a foreign board of trade to United States persons.
       ``(ii) The rules, regulations, or orders adopted under 
     clause (i) shall take into account, as appropriate, the 
     nature and size of the markets that the securities underlying 
     the security futures product reflects.''.
       (j) Security Futures Products Traded on Foreign Boards of 
     Trade.--Section 2(a)(1) of the Commodity Exchange Act (7 
     U.S.C. 2, 2a, and 4) is amended by adding at the end the 
     following:
       ``(F)(i) Nothing in this Act is intended to prohibit a 
     futures commission merchant from carrying security futures 
     products traded on or subject to the rules of a foreign board 
     of trade in the accounts of persons located outside of the 
     United States.
       ``(ii) Nothing in this Act is intended to prohibit any 
     eligible contract participant located in the United States 
     from purchasing or carrying securities futures products 
     traded on or subject to the rules of a foreign board of 
     trade, exchange, or market to the same extent such person may 
     be authorized to purchase or carry other securities traded on 
     a foreign board of trade, exchange, or market so long as any 
     underlying security for such security futures products is 
     traded principally on, by, or through any exchange or market 
     located outside the United States.''.

     SEC. 252. APPLICATION OF THE COMMODITY EXCHANGE ACT TO 
                   NATIONAL SECURITIES EXCHANGES AND NATIONAL 
                   SECURITIES ASSOCIATIONS THAT TRADE SECURITY 
                   FUTURES.

       (a) Notice Designation of National Securities Exchanges and 
     National Securities Associations.--The Commodity Exchange Act 
     is amended by inserting after section 5e (7 U.S.C. 7b), as 
     redesignated by section 21(1), the following:

     ``SEC. 5F. DESIGNATION OF SECURITIES EXCHANGES AND 
                   ASSOCIATIONS AS CONTRACT MARKETS.

       ``(a) Any board of trade that is registered with the 
     Securities and Exchange Commission as a national securities 
     exchange, is a national securities association registered 
     pursuant to section 15A(a) of the Securities Exchange Act of 
     1934, or is an alternative trading system shall be a 
     designated contract market in security futures products if--
       ``(1) such national securities exchange, national 
     securities association, or alternative trading system lists 
     or trades no other contracts of sale for future delivery, 
     except for security futures products;
       ``(2) such national securities exchange, national 
     securities association, or alternative trading system files 
     written notice with the Commission in such form as the 
     Commission, by rule, may prescribe containing such 
     information as the Commission, by rule, may prescribe as 
     necessary or appropriate in the public interest or for the 
     protection of customers; and
       ``(3) the registration of such national securities 
     exchange, national securities association, or alternative 
     trading system is not suspended pursuant to an order by the 
     Securities and Exchange Commission.
     Such designation shall be effective contemporaneously with 
     the submission of notice, in written or electronic form, to 
     the Commission.
       ``(b)(1) A national securities exchange, national 
     securities association, or alternative trading system that is 
     designated as a contract market pursuant to section 5f shall 
     be exempt from the following provisions of this Act and the 
     rules thereunder:
       ``(A) Subsections (c), (e), and (g) of section 4c.
       ``(B) Section 4j.
       ``(C) Section 5.
       ``(D) Section 5c.
       ``(E) Section 6a.
       ``(F) Section 8(d).
       ``(G) Section 9(f).
       ``(H) Section 16.
       ``(2) An alternative trading system that is a designated 
     contract market under this section shall be required to be a 
     member of a futures association registered under section 17 
     and shall be exempt from any provision of this Act that would 
     require such alternative trading system to--
       ``(A) set rules governing the conduct of subscribers other 
     than the conduct of such subscribers' trading on such 
     alternative trading system; or
       ``(B) discipline subscribers other than by exclusion from 
     trading.
       ``(3) To the extent that an alternative trading system is 
     exempt from any provision of this Act pursuant to paragraph 
     (2) of this subsection, the futures association registered 
     under section 17 of which the alternative trading system is a 
     member shall set rules governing the conduct of subscribers 
     to the alternative trading system and discipline the 
     subscribers.
       ``(4)(A) Except as provided in subparagraph (B), but 
     notwithstanding any other provision of this Act, the 
     Commission, by rule, regulation, or order, may conditionally 
     or unconditionally exempt any designated contract market in 
     security futures subject to the designation requirement of 
     this section from any provision of this Act or of any rule or 
     regulation thereunder, to the extent such exemption is 
     necessary or appropriate in the public interest and is 
     consistent with the protection of investors.
       ``(B) The Commission shall, by rule or regulation, 
     determine the procedures under which an exemptive order under 
     this section is granted and may, in its sole discretion, 
     decline to entertain any application for an order of 
     exemption under this section.
       ``(C) An alternative trading system shall not be deemed to 
     be an exchange for any purpose as a result of the designation 
     of such alternative trading system as a contract market under 
     this section.''.
       (b) Notice Registration of Certain Securities Broker-
     Dealers; Exemption From Registration for Certain Securities 
     Broker-Dealers.--Section 4f(a) of the Commodity Exchange Act 
     (7 U.S.C. 6f(a)) is amended--

[[Page 26919]]

       (1) by inserting ``(1)'' after ``(a)''; and
       (2) by adding at the end the following:
       ``(2) Notwithstanding paragraph (1), and except as provided 
     in paragraph (3), any broker or dealer that is registered 
     with the Securities and Exchange Commission shall be 
     registered as a futures commission merchant or introducing 
     broker, as applicable, if--
       ``(A) the broker or dealer limits its solicitation of 
     orders, acceptance of orders, or execution of orders, or 
     placing of orders on behalf of others involving any contracts 
     of sale of any commodity for future delivery, on or subject 
     to the rules of any contract market or registered derivatives 
     transaction execution facility to security futures products;
       ``(B) the broker or dealer files written notice with the 
     Commission in such form as the Commission, by rule, may 
     prescribe containing such information as the Commission, by 
     rule, may prescribe as necessary or appropriate in the public 
     interest or for the protection of investors;
       ``(C) the registration of the broker or dealer is not 
     suspended pursuant to an order of the Securities and Exchange 
     Commission; and
       ``(D) the broker or dealer is a member of a national 
     securities association registered pursuant to section 15A(a) 
     of the Securities Exchange Act of 1934.
     The registration shall be effective contemporaneously with 
     the submission of notice, in written or electronic form, to 
     the Commission.
       ``(3) A floor broker or floor trader shall be exempt from 
     the registration requirements of section 4e and paragraph (1) 
     of this subsection if--
       ``(A) the floor broker or floor trader is a broker or 
     dealer registered with the Securities and Exchange 
     Commission;
       ``(B) the floor broker or floor trader limits its 
     solicitation of orders, acceptance of orders, or execution of 
     orders, or placing of orders on behalf of others involving 
     any contracts of sale of any commodity for future delivery, 
     on or subject to the rules of any contract market to security 
     futures products; and
       ``(C) the registration of the floor broker or floor trader 
     is not suspended pursuant to an order of the Securities and 
     Exchange Commission.''.
       (c) Exemption for Securities Broker-Dealers From Certain 
     Provisions of the Commodity Exchange Act.--Section 4f(a) of 
     the Commodity Exchange Act (7 U.S.C. 6f(a)) is amended by 
     inserting after paragraph (3), as added by subsection (b) of 
     this section, the following:
       ``(4)(A) A broker or dealer that is registered as a futures 
     commission merchant or introducing broker pursuant to 
     paragraph (2), or that is a floor broker or floor trader 
     exempt from registration pursuant to paragraph (3), shall be 
     exempt from the following provisions of this Act and the 
     rules thereunder:
       ``(i) Subsections (b), (d), (e), and (g) of section 4c.
       ``(ii) Sections 4d, 4e, and 4h.
       ``(iii) Subsections (b) and (c) of this section.
       ``(iv) Section 4j.
       ``(v) Section 4k(1).
       ``(vi) Section 4p.
       ``(vii) Section 6d.
       ``(viii) Subsections (d) and (g) of section 8.
       ``(ix) Section 16.
       ``(B)(i) Except as provided in clause (ii) of this 
     subparagraph, but notwithstanding any other provision of this 
     Act, the Commission, by rule, regulation, or order, may 
     conditionally or unconditionally exempt any broker or dealer 
     subject to the registration requirement of paragraph (2), or 
     any broker or dealer exempt from registration pursuant to 
     paragraph (3), from any provision of this Act or of any rule 
     or regulation thereunder, to the extent the exemption is 
     necessary or appropriate in the public interest and is 
     consistent with the protection of investors.
       ``(ii) The Commission shall, by rule or regulation, 
     determine the procedures under which an exemptive order under 
     this section shall be granted and may, in its sole 
     discretion, decline to entertain any application for an order 
     of exemption under this section.
       ``(C)(i) A broker or dealer that is registered as a futures 
     commission merchant or introducing broker pursuant to 
     paragraph (2) or an associated person thereof, or that is a 
     floor broker or floor trader exempt from registration 
     pursuant to paragraph (3), shall not be required to become a 
     member of any futures association registered under section 
     17.
       ``(ii) No futures association registered under section 17 
     shall limit its members from carrying an account, accepting 
     an order, or transacting business with a broker or dealer 
     that is registered as a futures commission merchant or 
     introducing broker pursuant to paragraph (2) or an associated 
     person thereof, or that is a floor broker or floor trader 
     exempt from registration pursuant to paragraph (3).''.
       (d) Exemptions for Associated Persons of Securities Broker-
     Dealers.--Section 4k of the Commodity Exchange Act (7 U.S.C. 
     6k), is amended by inserting after paragraph (4), as added by 
     subsection (c) of this section, the following:
       ``(5) Any associated person of a broker or dealer that is 
     registered with the Securities and Exchange Commission, and 
     who limits its solicitation of orders, acceptance of orders, 
     or execution of orders, or placing of orders on behalf of 
     others involving any contracts of sale of any commodity for 
     future delivery or any option on such a contract, on or 
     subject to the rules of any contract market or registered 
     derivatives transaction execution facility to security 
     futures products, shall be exempt from the following 
     provisions of this Act and the rules thereunder:
       ``(A) Subsections (b), (d), (e), and (g) of section 4c.
       ``(B) Sections 4d, 4e, and 4h.
       ``(C) Subsections (b) and (c) of section 4f.
       ``(D) Section 4j.
       ``(E) Paragraph (1) of this section.
       ``(F) Section 4p.
       ``(G) Section 6d.
       ``(H) Subsections (d) and (g) of section 8.
       ``(I) Section 16.''.

     SEC. 253. NOTIFICATION OF INVESTIGATIONS AND ENFORCEMENT 
                   ACTIONS.

       (a) Section 8(a) of the Commodity Exchange Act (7 U.S.C. 
     12(a)) is amended by adding at the end the following:
       ``(3) The Commission shall provide the Securities and 
     Exchange Commission with notice of the commencement of any 
     proceeding and a copy of any order entered by the Commission 
     against any futures commission merchant or introducing broker 
     registered pursuant to section 4f(a)(2), any floor broker or 
     floor trader exempt from registration pursuant to section 
     4f(a)(3), any associated person exempt from registration 
     pursuant to section 4k(6), or any board of trade designated 
     as a contract market pursuant to section 5f.''.
       (b) Section 6 of the Commodity Exchange Act (7 U.S.C. 8, 9, 
     9a, 9b, 13b, 15) is amended by adding at the end the 
     following:
       ``(g) The Commission shall provide the Securities and 
     Exchange Commission with notice of the commencement of any 
     proceeding and a copy of any order entered by the Commission 
     pursuant to subsections (c) and (d) of this section against 
     any futures commission merchant or introducing broker 
     registered pursuant to section 4f(a)(2), any floor broker or 
     floor trader exempt from registration pursuant to section 
     4f(a)(3), any associated person exempt from registration 
     pursuant to section 4k(6), or any board of trade designated 
     as a contract market pursuant to section 5f.''.
       (c) Section 6c of the Commodity Exchange Act (7 U.S.C. 13a-
     1) is amended by adding at the end the following:
       ``(h) The Commission shall provide the Securities and 
     Exchange Commission with notice of the commencement of any 
     proceeding and a copy of any order entered by the Commission 
     against any futures commission merchant or introducing broker 
     registered pursuant to section 4f(a)(2), any floor broker or 
     floor trader exempt from registration pursuant to section 
     4f(a)(3), any associated person exempt from registration 
     pursuant to section 4k(6), or any board of trade designated 
     as a contract market pursuant to section 5f.''.

             TITLE III--LEGAL CERTAINTY FOR SWAP AGREEMENTS

     SEC. 301. SWAP AGREEMENT.

       (a) Amendment.--Title II of the Gramm-Leach-Bliley Act 
     (Public Law 106-102) is amended by inserting after section 
     206 the following new sections:

     ``SEC. 206A. SWAP AGREEMENT.

       ``(a) In General.--Except as provided in subsection (b), as 
     used in this section, the term `swap agreement' means any 
     agreement, contract, or transaction between eligible contract 
     participants (as defined in section 1a(12) of the Commodity 
     Exchange Act as in effect on the date of enactment of this 
     section), other than a person that is an eligible contract 
     participant under section 1a(12)(C) of the Commodity Exchange 
     Act, the material terms of which (other than price and 
     quantity) are subject to individual negotiation, and that--
       ``(1) is a put, call, cap, floor, collar, or similar option 
     of any kind for the purchase or sale of, or based on the 
     value of, one or more interest or other rates, currencies, 
     commodities, indices, quantitative measures, or other 
     financial or economic interests or property of any kind;
       ``(2) provides for any purchase, sale, payment or delivery 
     (other than a dividend on an equity security) that is 
     dependent on the occurrence, non-occurrence, or the extent of 
     the occurrence of an event or contingency associated with a 
     potential financial, economic, or commercial consequence;
       ``(3) provides on an executory basis for the exchange, on a 
     fixed or contingent basis, of one or more payments based on 
     the value or level of one or more interest or other rates, 
     currencies, commodities, securities, instruments of 
     indebtedness, indices, quantitative measures, or other 
     financial or economic interests or property of any kind, or 
     any interest therein or based on the value thereof, and that 
     transfers, as between the parties to the transaction, in 
     whole or in part, the financial risk associated with a future 
     change in any such value or level without also conveying a 
     current or future direct or indirect ownership interest in an 
     asset (including any enterprise or investment pool) or 
     liability that incorporates the financial risk so 
     transferred, including any such agreement, contract, or 
     transaction commonly known as an interest rate swap, 
     including a rate floor, rate cap, rate collar, cross-currency 
     rate swap, basis swap, currency swap, equity index swap, 
     equity swap, debt index swap, debt swap, credit spread, 
     credit default swap, credit swap, weather swap, or commodity 
     swap;
       ``(4) provides for the purchase or sale, on a fixed or 
     contingent basis, of any commodity, currency, instrument, 
     interest, right, service, good, article, or property of any 
     kind; or
       ``(5) is any combination or permutation of, or option on, 
     any agreement, contract, or transaction described in any of 
     paragraphs (1) through (4).
       ``(b) Exclusions.--The term `swap agreement' does not 
     include--
       ``(1) any put, call, straddle, option, or privilege on any 
     security, certificate of deposit, or

[[Page 26920]]

     group or index of securities, including any interest therein 
     or based on the value thereof;
       ``(2) any put, call, straddle, option, or privilege entered 
     into on a national securities exchange registered pursuant to 
     section 6(a) of the Securities Exchange Act of 1934 relating 
     to foreign currency;
       ``(3) any agreement, contract, or transaction providing for 
     the purchase or sale of one or more securities on a fixed 
     basis;
       ``(4) any agreement, contract, or transaction providing for 
     the purchase or sale of one or more securities on a 
     contingent basis, unless such agreement, contract, or 
     transaction predicates such purchase or sale on the 
     occurrence of a bona fide contingency that might reasonably 
     be expected to affect or be affected by the creditworthiness 
     of a party other than a party to the agreement, contract, or 
     transaction;
       ``(5) any note, bond, or evidence of indebtedness that is a 
     security as defined in section 2(a)(1) of the Securities 
     Exchange Act of 1933 or section 3(a)(10) of the Securities 
     Exchange Act of 1934; or
       ``(6) any agreement, contract, or transaction that is--
       ``(A) based on a security; and
       ``(B) entered into directly or through an underwriter (as 
     defined in section 2(a) of the Securities Act of 1933) by the 
     issuer of such security for the purposes of raising capital, 
     unless such agreement, contract, or transaction is entered 
     into to manage a risk associated with capital raising.
       ``(c) Rule of Construction Regarding Master Agreements.--As 
     used in this section, the term `swap agreement' shall be 
     construed to include a master agreement that provides for an 
     agreement, contract, or transaction that is a swap agreement 
     pursuant to subsections (a) and (b), together with all 
     supplements to any such master agreement, without regard to 
     whether the master agreement contains an agreement, contract, 
     or transaction that is not a swap agreement pursuant to 
     subsections (a) and (b), except that the master agreement 
     shall be considered to be a swap agreement only with respect 
     to each agreement, contract, or transaction under the master 
     agreement that is a swap agreement pursuant to subsections 
     (a) and (b).

     ``SEC. 206B. SECURITY-BASED SWAP AGREEMENT.

       ``As used in this section, the term `security-based swap 
     agreement' means a swap agreement (as defined in section 
     206A) of which a material term is based on the price, yield, 
     value, or volatility of any security or any group or index of 
     securities, or any interest therein.

     ``SEC. 206C. NON-SECURITY-BASED SWAP AGREEMENT.

       ``As used in this section, the term `non-security-based 
     swap agreement' means any swap agreement (as defined in 
     section 206A) that is not a security-based swap agreement (as 
     defined in section 206B).''.
       (b) Security Definition.--As used in the amendment made by 
     subsection (a), the term ``security'' has the same meaning as 
     in section 2(a)(1) of the Securities Act of 1933 or section 
     3(a)(10) of the Securities Exchange Act of 1934.

     SEC. 302. AMENDMENTS TO THE SECURITIES ACT OF 1933.

       (a) Enforcement Focus.--The Securities Act of 1933 is 
     amended by inserting after section 2 (15 U.S.C.77b) the 
     following new section:

     ``SEC. 2A. SWAP AGREEMENTS.

       ``(a) Non-Security-Based Swap Agreements.--The definition 
     of `security' in section 2(a)(1) of this title does not 
     include any non-security-based swap agreement (as defined in 
     section 206C of the Gramm-Leach-Bliley Act).
       ``(b) Security-Based Swap Agreements.--
       ``(1) The definition of `security' in section 2(a)(1) of 
     this title does not include any security-based swap agreement 
     (as defined in section 206B of the Gramm-Leach-Bliley Act).
       ``(2) The Commission is prohibited from registering, or 
     requiring, recommending, or suggesting, the registration 
     under this title of any security-based swap agreement (as 
     defined in section 206B of the Gramm-Leach-Bliley Act). If 
     the Commission becomes aware that a registrant has filed a 
     registration statement with respect to such a swap agreement, 
     the Commission shall promptly so notify the registrant. Any 
     such registration statement with respect to such a swap 
     agreement shall be void and of no force or effect.
       ``(3) The Commission is prohibited from--
       ``(A) promulgating, interpreting, or enforcing rules; or
       ``(B) issuing orders of general applicability;

     under this title in a manner that imposes or specifies 
     reporting or recordkeeping requirements, procedures, or 
     standards as prophylactic measures against fraud, 
     manipulation, or insider trading with respect to any 
     security-based swap agreement (as defined in section 206B of 
     the Gramm-Leach-Bliley Act).
       ``(4) References in this title to the `purchase' or `sale' 
     of a security-based swap agreement shall be deemed to mean 
     the execution, termination (prior to its scheduled maturity 
     date), assignment, exchange, or similar transfer or 
     conveyance of, or extinguishing of rights or obligations 
     under, a security-based swap agreement (as defined in section 
     206B of the Gramm-Leach-Bliley Act), as the context may 
     require.''.
       (b) Anti-Fraud and Anti-Manipulation Enforcement 
     Authority.--Section 17(a) of the Securities Act of 1933 (15 
     U.S.C. 77q(a)) is amended to read as follows:
       ``(a) It shall be unlawful for any person in the offer or 
     sale of any securities or any security- based swap agreement 
     (as defined in section 206B of the Gramm-Leach-Bliley Act) by 
     the use of any means or instruments of transportation or 
     communication in interstate commerce or by use of the mails, 
     directly or indirectly--
       ``(1) to employ any device, scheme, or artifice to defraud, 
     or
       ``(2) to obtain money or property by means of any untrue 
     statement of a material fact or any omission to state a 
     material fact necessary in order to make the statements made, 
     in light of the circumstances under which they were made, not 
     misleading; or
       ``(3) to engage in any transaction, practice, or course of 
     business which operates or would operate as a fraud or deceit 
     upon the purchaser.''.
       (c) Limitation.--Section 17 of the Securities Act of 1933 
     is amended by adding at the end the following new subsection:
       ``(d) The authority of the Commission under this section 
     with respect to security-based swap agreements (as defined in 
     section 206B of the Gramm-Leach-Bliley Act) shall be subject 
     to the restrictions and limitations of section 2A(b) of this 
     title.''.

     SEC. 303. AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF 1934.

       (a) Enforcement Focus.--The Securities Exchange Act of 1934 
     is amended by inserting after section 3 (15 U.S.C. 78c) the 
     following new section:

     ``SEC. 3A. SWAP AGREEMENTS.

       ``(a) Non-Security-Based Swap Agreements.--The definition 
     of `security' in section 3(a)(10) of this title does not 
     include any non-security-based swap agreement (as defined in 
     section 206C of the Gramm-Leach-Bliley Act).
       ``(b) Security-Based Swap Agreements.--
       ``(1) The definition of `security' in section 3(a)(10) of 
     this title does not include any security-based swap agreement 
     (as defined in section 206B of the Gramm-Leach-Bliley Act).
       ``(2) The Commission is prohibited from registering, or 
     requiring, recommending, or suggesting, the registration 
     under this title of any security-based swap agreement (as 
     defined in section 206B of the Gramm-Leach-Bliley Act). If 
     the Commission becomes aware that a registrant has filed a 
     registration application with respect to such a swap 
     agreement, the Commission shall promptly so notify the 
     registrant. Any such registration with respect to such a swap 
     agreement shall be void and of no force or effect.
       ``(3) Except as provided in section 16(a) with respect to 
     reporting requirements, the Commission is prohibited from--
       ``(A) promulgating, interpreting, or enforcing rules; or
       ``(B) issuing orders of general applicability;

     under this title in a manner that imposes or specifies 
     reporting or recordkeeping requirements, procedures, or 
     standards as prophylactic measures against fraud, 
     manipulation, or insider trading with respect to any 
     security-based swap agreement (as defined in section 206B of 
     the Gramm-Leach-Bliley Act).
       ``(4) References in this title to the `purchase' or `sale' 
     of a security-based swap agreement (as defined in section 
     206B of the Gramm-Leach-Bliley Act) shall be deemed to mean 
     the execution, termination (prior to its scheduled maturity 
     date), assignment, exchange, or similar transfer or 
     conveyance of, or extinguishing of rights or obligations 
     under, a security-based swap agreement, as the context may 
     require.''.
       (b) Anti-Fraud, Anti-Manipulation Enforcement Authority.--
     Paragraphs (2) through (5) of section 9(a) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78i(a)(2)-(5)) are amended to 
     read as follows:
       ``(2) To effect, alone or with one or more other persons, a 
     series of transactions in any security registered on a 
     national securities exchange or in connection with any 
     security-based swap agreement (as defined in section 206B of 
     the Gramm-Leach-Bliley Act) with respect to such security 
     creating actual or apparent active trading in such security, 
     or raising or depressing the price of such security, for the 
     purpose of inducing the purchase or sale of such security by 
     others.
       ``(3) If a dealer or broker, or other person selling or 
     offering for sale or purchasing or offering to purchase the 
     security or a security-based swap agreement (as defined in 
     section 206B of the Gramm-Leach-Bliley Act) with respect to 
     such security, to induce the purchase or sale of any security 
     registered on a national securities exchange or any security-
     based swap agreement (as defined in section 206B of the 
     Gramm-Leach-Bliley Act) with respect to such security by the 
     circulation or dissemination in the ordinary course of 
     business of information to the effect that the price of any 
     such security will or is likely to rise or fall because of 
     market operations of any one or more persons conducted for 
     the purpose of raising or depressing the price of such 
     security.
       ``(4) If a dealer or broker, or the person selling or 
     offering for sale or purchasing or offering to purchase the 
     security or a security-based swap agreement (as defined in 
     section 206B of the Gramm-Leach-Bliley Act) with respect to 
     such security, to make, regarding any security registered on 
     a national securities exchange or any security-based swap 
     agreement (as defined in section 206B of the Gramm-Leach-
     Bliley Act) with respect to such security, for the purpose of 
     inducing the purchase or sale of such security or such 
     security-based swap agreement, any statement which was at the 
     time and in the light of the circumstances under which it was 
     made, false or misleading with respect to any material fact, 
     and which he knew or had reasonable ground to believe was so 
     false or misleading.
       ``(5) For a consideration, received directly or indirectly 
     from a dealer or broker, or other person selling or offering 
     for sale or purchasing or

[[Page 26921]]

     offering to purchase the security or a security-based swap 
     agreement (as defined in section 206B of the Gramm-Leach-
     Bliley Act) with respect to such security, to induce the 
     purchase of any security registered on a national securities 
     exchange or any security-based swap agreement (as defined in 
     section 206B of the Gramm-Leach-Bliley Act) with respect to 
     such security by the circulation or dissemination of 
     information to the effect that the price of any such security 
     will or is likely to rise or fall because of the market 
     operations of any one or more persons conducted for the 
     purpose of raising or depressing the price of such 
     security.''.
       (c) Limitation.--Section 9 of the Securities Exchange Act 
     of 1934 is amended by adding at the end the following new 
     subsection:
       ``(i) The authority of the Commission under this section 
     with respect to security-based swap agreements shall be 
     subject to the restrictions and limitations of section 3A(b) 
     of this title.''.
       (d) Regulations on the Use of Manipulative and Deceptive 
     Devices.--Section 10 of the Securities Exchange Act of 1934 
     (15 U.S.C. 78j) is amended--
       (1) in subsection (b), by inserting ``or any securities-
     based swap agreement (as defined in section 206B of the 
     Gramm-Leach-Bliley Act),'' before ``any manipulative or 
     deceptive device''; and
       (2) by adding at the end the following:
     ``Rules promulgated under subsection (b) that prohibit fraud, 
     manipulation, or insider trading (but not rules imposing or 
     specifying reporting or recordkeeping requirements, 
     procedures, or standards as prophylactic measures against 
     fraud, manipulation, or insider trading), and judicial 
     precedents decided under subsection (b) and rules promulgated 
     thereunder that prohibit fraud, manipulation, or insider 
     trading, shall apply to security-based swap agreements (as 
     defined in section 206B of the Gramm-Leach-Bliley Act) to the 
     same extent as they apply to securities. Judicial precedents 
     decided under section 17(a) of the Securities Act of 1933 and 
     sections 9, 15, 16, 20, and 21A of this title, and judicial 
     precedents decided under applicable rules promulgated under 
     such sections, shall apply to security-based swap agreements 
     (as defined in section 206B of the Gramm-Leach-Bliley Act) to 
     the same extent as they apply to securities.''.
       (e) Broker, Dealer Anti-Fraud, Anti-Manipulation 
     Enforcement Authority.--Section 15(c)(1) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78o(c)(1)) is amended to read 
     as follows:
       ``(c)(1)(A) No broker or dealer shall make use of the mails 
     or any means or instrumentality of interstate commerce to 
     effect any transaction in, or to induce or attempt to induce 
     the purchase or sale of, any security (other than commercial 
     paper, bankers' acceptances, or commercial bills) otherwise 
     than on a national securities exchange of which it is a 
     member, or any security-based swap agreement (as defined in 
     section 206B of the Gramm-Leach-Bliley Act), by means of any 
     manipulative, deceptive, or other fraudulent device or 
     contrivance.
       ``(B) No municipal securities dealer shall make use of the 
     mails or any means or instrumentality of interstate commerce 
     to effect any transaction in, or to induce or attempt to 
     induce the purchase or sale of, any municipal security or any 
     security-based swap agreement (as defined in section 206B of 
     the Gramm-Leach-Bliley Act) involving a municipal security by 
     means of any manipulative, deceptive, or other fraudulent 
     device or contrivance.
       ``(C) No government securities broker or government 
     securities dealer shall make use of the mails or any means or 
     instrumentality of interstate commerce to effect any 
     transaction in, or to induce or to attempt to induce the 
     purchase or sale of, any government security or any security-
     based swap agreement (as defined in section 206B of the 
     Gramm-Leach-Bliley Act) involving a government security by 
     means of any manipulative, deceptive, or other fraudulent 
     device or contrivance.''.
       (f) Limitation.--Section 15 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78o) is amended by adding at the end the 
     following new subsection:
       ``(i) The authority of the Commission under this section 
     with respect to security-based swap agreements (as defined in 
     section 206B of the Gramm-Leach-Bliley Act) shall be subject 
     to the restrictions and limitations of section 3A(b) of this 
     title.''.
       (g) Anti-Insider Trading Enforcement Authority.--
     Subsections (a) and (b) of section 16 (15 U.S.C. 78p(a), (b)) 
     of the Securities Exchange of 1934 are amended to read as 
     follows:
       ``(a) Every person who is directly or indirectly the 
     beneficial owner of more than 10 per centum of any class of 
     any equity security (other than an exempted security) which 
     is registered pursuant to section 12 of this title, or who is 
     a director or an officer of the issuer of such security, 
     shall file, at the time of the registration of such security 
     on a national securities exchange or by the effective date of 
     a registration statement filed pursuant to section 12 (g) of 
     this title, or within ten days after he becomes such 
     beneficial owner, director, or officer, a statement with the 
     Commission (and, if such security is registered on a national 
     securities exchange, also with the exchange) of the amount of 
     all equity securities of such issuer of which he is the 
     beneficial owner, and within ten days after the close of each 
     calendar month thereafter, if there has been a change in such 
     ownership or if such person shall have purchased or sold a 
     security-based swap agreement (as defined in section 206B of 
     the Gramm-Leach-Bliley Act) involving such equity security 
     during such month, shall file with the Commission (and if 
     such security is registered on a national securities 
     exchange, shall also file with the exchange), a statement 
     indicating his ownership at the close of the calendar month 
     and such changes in his ownership and such purchases and 
     sales of such security-based swap agreements as have occurred 
     during such calendar month.
       ``(b) For the purpose of preventing the unfair use of 
     information which may have been obtained by such beneficial 
     owner, director, or officer by reason of his relationship to 
     the issuer, any profit realized by him from any purchase and 
     sale, or any sale and purchase, of any equity security of 
     such issuer (other than an exempted security) or a security-
     based swap agreement (as defined in section 206B of the 
     Gramm-Leach-Bliley Act) involving any such equity security 
     within any period of less than six months, unless such 
     security or security-based swap agreement was acquired in 
     good faith in connection with a debt previously contracted, 
     shall inure to and be recoverable by the issuer, irrespective 
     of any intention on the part of such beneficial owner, 
     director, or officer in entering into such transaction of 
     holding the security or security-based swap agreement 
     purchased or of not repurchasing the security or security-
     based swap agreement sold for a period exceeding six months. 
     Suit to recover such profit may be instituted at law or in 
     equity in any court of competent jurisdiction by the issuer, 
     or by the owner of any security of the issuer in the name and 
     in behalf of the issuer if the issuer shall fail or refuse to 
     bring such suit within sixty days after request or shall fail 
     diligently to prosecute the same thereafter; but no such suit 
     shall be brought more than two years after the date such 
     profit was realized. This subsection shall not be construed 
     to cover any transaction where such beneficial owner was not 
     such both at the time of the purchase and sale, or the sale 
     and purchase, of the security or security-based swap 
     agreement (as defined in section 206B of the Gramm-Leach-
     Bliley Act) involved, or any transaction or transactions 
     which the Commission by rules and regulations may exempt as 
     not comprehended within the purpose of this subsection.''.
       (h) Limitation.--Section 16 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78p) is amended by adding at the end the 
     following new subsection:
       ``(g) The authority of the Commission under this section 
     with respect to security-based swap agreements (as defined in 
     section 206B of the Gramm-Leach-Bliley Act) shall be subject 
     to the restrictions and limitations of section 3A(b) of this 
     title.''.
       (i) Material Nonpublic Information.--Section 20(d) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78t(d)) is amended 
     to read as follows:
       ``(d) Wherever communicating, or purchasing or selling a 
     security while in possession of, material nonpublic 
     information would violate, or result in liability to any 
     purchaser or seller of the security under any provisions of 
     this title, or any rule or regulation thereunder, such 
     conduct in connection with a purchase or sale of a put, call, 
     straddle, option, privilege or security-based swap agreement 
     (as defined in section 206B of the Gramm-Leach-Bliley Act) 
     with respect to such security or with respect to a group or 
     index of securities including such security, shall also 
     violate and result in comparable liability to any purchaser 
     or seller of that security under such provision, rule, or 
     regulation.''.
       (j) Limitation.--Section 20 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78t) is amended by adding at the end the 
     following new subsection:
       ``(f) The authority of the Commission under this section 
     with respect to security-based swap agreements (as defined in 
     section 206B of the Gramm-Leach-Bliley Act) shall be subject 
     to the restrictions and limitations of section 3A(b) of this 
     title.''.
       (k) Civil Penalties.--Section 21A(a)(1) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78u-1)a)(1)) is amended by 
     inserting after ``purchasing or selling a security'' the 
     following: ``or security-based swap agreement (as defined in 
     section 206B of the Gramm-Leach-Bliley Act)''.
       (l) Limitation.--Section 21A of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78u-1) is amended by adding at the end the 
     following new subsection:
       ``(g) The authority of the Commission under this section 
     with respect to security-based swap agreements (as defined in 
     section 206B of the Gramm-Leach-Bliley Act) shall be subject 
     to the restrictions and limitations of section 3A(b) of this 
     title.''.

     SEC. 304. SAVINGS PROVISIONS.

       Nothing in this Act or the amendments made by this Act 
     shall be construed as finding or implying that any swap 
     agreement is or is not a security for any purpose under the 
     securities laws. Nothing in this Act or the amendments made 
     by this Act shall be construed as finding or implying that 
     any swap agreement is or is not a futures contract or 
     commodity option for any purpose under the Commodity Exchange 
     Act.

         TITLE IV--REGULATORY RESPONSIBILITY FOR BANK PRODUCTS

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Legal Certainty for Bank 
     Products Act of 2000''.

     SEC. 402. DEFINITIONS.

       (a) Bank.--In this title, the term ``bank'' means--
       (1) any depository institution (as defined in section 3(c) 
     of the Federal Deposit Insurance Act);
       (2) any foreign bank or branch or agency of a foreign bank 
     (each as defined in section 1(b) of the International Banking 
     Act of 1978);

[[Page 26922]]

       (3) any Federal or State credit union (as defined in 
     section 101 of the Federal Credit Union Act);
       (4) any corporation organized under section 25A of the 
     Federal Reserve Act;
       (5) any corporation operating under section 25 of the 
     Federal Reserve Act;
       (6) any trust company; or
       (7) any subsidiary of any entity described in paragraph (1) 
     through (6) of this subsection, if the subsidiary is 
     regulated as if the subsidiary were part of the entity and is 
     not a broker or dealer (as such terms are defined in section 
     3 of the Securities Exchange Act of 1934) or a futures 
     commission merchant (as defined in section 1a(20) of the 
     Commodity Exchange Act).
       (b) Identified Banking Product.--In this title, the term 
     ``identified banking product'' shall have the same meaning as 
     in paragraphs (1) through (5) of section 206(a) of the Gramm-
     Leach-Bliley Act, except that in applying such section for 
     purposes of this title--
       (1) the term ``bank'' shall have the meaning given in 
     subsection (a) of this section; and
       (2) the term ``qualified investor'' means eligible contract 
     participant (as defined in section 1a(12) of the Commodity 
     Exchange Act, as in effect on the date of enactment of the 
     Commodity Futures Modernization Act of 2000).
       (c) Hybrid Instrument.--In this title, the term ``hybrid 
     instrument'' means an identified banking product not excluded 
     by section 403 of this Act, offered by a bank, having 1 or 
     more payments indexed to the value, level, or rate of, or 
     providing for the delivery of, 1 or more commodities (as 
     defined in section 1a(4) of the Commodity Exchange Act).
       (d) Covered Swap Agreement.--In this title, the term 
     ``covered swap agreement'' means a swap agreement (as defined 
     in section 206(b) of the Gramm-Leach-Bliley Act), including a 
     credit or equity swap, based on a commodity other than an 
     agricultural commodity enumerated in section 1a(4) of the 
     Commodity Exchange Act if--
       (1) the swap agreement--
       (A) is entered into only between persons that are eligible 
     contract participants (as defined in section 1a(12) of the 
     Commodity Exchange Act, as in effect on the date of enactment 
     of the Commodity Futures Modernization Act of 2000) at the 
     time the persons enter into the swap agreement; and
       (B) is not entered into or executed on a trading facility 
     (as defined in section 1a(33) of the Commodity Exchange Act); 
     or
       (2) the swap agreement--
       (A) is entered into or executed on an electronic trading 
     facility (as defined in section 1a(10) of the Commodity 
     Exchange Act);
       (B) is entered into on a principal-to-principal basis 
     between parties trading for their own accounts or as 
     described in section 1a(12)(B)(ii) of the Commodity Exchange 
     Act;
       (C) is entered into only between persons that are eligible 
     contract participants as described in subparagraphs (A), 
     (B)(ii), or (C) of section 1a(12) of the Commodity Exchange 
     Act, as in effect on the date of enactment of the Commodity 
     Futures Modernization Act of 2000, at the time the persons 
     enter into the swap agreement; and
       (D) is an agreement, contract or transaction in an excluded 
     commodity (as defined in section 1a(13) of the Commodity 
     Exchange Act).

     SEC. 403. EXCLUSION OF IDENTIFIED BANKING PRODUCTS COMMONLY 
                   OFFERED ON OR BEFORE DECEMBER 5, 2000.

       No provision of the Commodity Exchange Act shall apply to, 
     and the Commodity Futures Trading Commission shall not 
     exercise regulatory authority with respect to, an identified 
     banking product if--
       (1) an appropriate banking agency certifies that the 
     product has been commonly offered, entered into, or provided 
     in the United States by any bank on or before December 5, 
     2000, under applicable banking law; and
       (2) the product was not prohibited by the Commodity 
     Exchange Act and not regulated by the Commodity Futures 
     Trading Commission as a contract of sale of a commodity for 
     future delivery (or an option on such a contract) or an 
     option on a commodity, on or before December 5, 2000.

     SEC. 404. EXCLUSION OF CERTAIN IDENTIFIED BANKING PRODUCTS 
                   OFFERED BY BANKS AFTER DECEMBER 5, 2000.

       No provision of the Commodity Exchange Act shall apply to, 
     and the Commodity Futures Trading Commission shall not 
     exercise regulatory authority with respect to, an identified 
     banking product which had not been commonly offered, entered 
     into, or provided in the United States by any bank on or 
     before December 5, 2000, under applicable banking law if--
       (1) the product has no payment indexed to the value, level, 
     or rate of, and does not provide for the delivery of, any 
     commodity (as defined in section 1a(4) of the Commodity 
     Exchange Act); or
       (2) the product or commodity is otherwise excluded from the 
     Commodity Exchange Act.

     SEC. 405. EXCLUSION OF CERTAIN OTHER IDENTIFIED BANKING 
                   PRODUCTS.

       (a) In General.--No provision of the Commodity Exchange Act 
     shall apply to, and the Commodity Futures Trading Commission 
     shall not exercise regulatory authority with respect to, a 
     banking product if the product is a hybrid instrument that is 
     predominantly a banking product under the predominance test 
     set forth in subsection (b).
       (b) Predominance Test.--A hybrid instrument shall be 
     considered to be predominantly a banking product for purposes 
     of this section if--
       (1) the issuer of the hybrid instrument receives payment in 
     full of the purchase price of the hybrid instrument 
     substantially contemporaneously with delivery of the hybrid 
     instrument;
       (2) the purchaser or holder of the hybrid instrument is not 
     required to make under the terms of the instrument, or any 
     arrangement referred to in the instrument, any payment to the 
     issuer in addition to the purchase price referred to in 
     paragraph (1), whether as margin, settlement payment, or 
     otherwise during the life of the hybrid instrument or at 
     maturity;
       (3) the issuer of the hybrid instrument is not subject by 
     the terms of the instrument to mark-to-market margining 
     requirements; and
       (4) the hybrid instrument is not marketed as a contract of 
     sale of a commodity for future delivery (or option on such a 
     contract) subject to the Commodity Exchange Act.
       (c) Mark-to-Market Margining Requirement.--For purposes of 
     subsection (b)(3), mark- to-market margining requirements 
     shall not include the obligation of an issuer of a secured 
     debt instrument to increase the amount of collateral held in 
     pledge for the benefit of the purchaser of the secured debt 
     instrument to secure the repayment obligations of the issuer 
     under the secured debt instrument.

     SEC. 406. ADMINISTRATION OF THE PREDOMINANCE TEST.

       (a) In General.--No provision of the Commodity Exchange Act 
     shall apply to, and the Commodity Futures Trading Commission 
     shall not regulate, a hybrid instrument, unless the 
     Commission determines, by or under a rule issued in 
     accordance with this section, that--
       (1) the action is necessary and appropriate in the public 
     interest;
       (2) the action is consistent with the Commodity Exchange 
     Act and the purposes of the Commodity Exchange Act; and
       (3) the hybrid instrument is not predominantly a banking 
     product under the predominance test set forth in section 
     405(b) of this Act.
       (b) Consultation.--Before commencing a rulemaking or making 
     a determination pursuant to a rule issued under this title, 
     the Commodity Futures Trading Commission shall consult with 
     and seek the concurrence of the Board of Governors of the 
     Federal Reserve System concerning--
       (1) the nature of the hybrid instrument; and
       (2) the history, purpose, extent, and appropriateness of 
     the regulation of the hybrid instrument under the Commodity 
     Exchange Act and under appropriate banking laws.
       (c) Objection to Commission Regulation.--
       (1) Filing of petition for review.--The Board of Governors 
     of the Federal Reserve System may obtain review of any rule 
     or determination referred to in subsection (a) in the United 
     States Court of Appeals for the District of Columbia Circuit 
     by filing in the court, not later than 60 days after the date 
     of publication of the rule or determination, a written 
     petition requesting that the rule or determination be set 
     aside. Any proceeding to challenge any such rule or 
     determination shall be expedited by the court.
       (2) Transmittal of petition and record.--A copy of a 
     petition described in paragraph (1) shall be transmitted as 
     soon as possible by the Clerk of the court to an officer or 
     employee of the Commodity Futures Trading Commission 
     designated for that purpose. Upon receipt of the petition, 
     the Commission shall file with the court the rule or 
     determination under review and any documents referred to 
     therein, and any other relevant materials prescribed by the 
     court.
       (3) Exclusive jurisdiction.--On the date of the filing of a 
     petition under paragraph (1), the court shall have 
     jurisdiction, which shall become exclusive on the filing of 
     the materials set forth in paragraph (2), to affirm and 
     enforce or to set aside the rule or determination at issue.
       (4) Standard of review.--The court shall determine to 
     affirm and enforce or set aside a rule or determination of 
     the Commodity Futures Trading Commission under this section, 
     based on the determination of the court as to whether--
       (A) the subject product is predominantly a banking product; 
     and
       (B) making the provision or provisions of the Commodity 
     Exchange Act at issue applicable to the subject instrument is 
     appropriate in light of the history, purpose, and extent of 
     regulation under such Act, this title, and under the 
     appropriate banking laws, giving deference neither to the 
     views of the Commodity Futures Trading Commission nor the 
     Board of Governors of the Federal Reserve System.
       (5) Judicial stay.--The filing of a petition by the Board 
     pursuant to paragraph (1) shall operate as a judicial stay, 
     until the date on which the determination of the court is 
     final (including any appeal of the determination).
       (6) Other authority to challenge.--Any aggrieved party may 
     seek judicial review pursuant to section 6(c) of the 
     Commodity Exchange Act of a determination or rulemaking by 
     the Commodity Futures Trading Commission under this section.

     SEC. 407. EXCLUSION OF COVERED SWAP AGREEMENTS.

       No provision of the Commodity Exchange Act (other than 
     section 5b of such Act with respect to the clearing of 
     covered swap agreements) shall apply to, and the Commodity 
     Futures Trading Commission shall not exercise regulatory 
     authority with respect to, a covered swap agreement offered, 
     entered into, or provided by a bank.

     SEC. 408. CONTRACT ENFORCEMENT.

       (a) Hybrid Instruments.--No hybrid instrument shall be 
     void, voidable, or unenforceable, and no party to a hybrid 
     instrument shall be entitled to rescind, or recover any 
     payment made

[[Page 26923]]

     with respect to, a hybrid instrument under any provision of 
     Federal or State law, based solely on the failure of the 
     hybrid instrument to satisfy the predominance test set forth 
     in section 405(b) of this Act or to comply with the terms or 
     conditions of an exemption or exclusion from any provision of 
     the Commodity Exchange Act or any regulation of the Commodity 
     Futures Trading Commission.
       (b) Covered Swap Agreements.--No covered swap agreement 
     shall be void, voidable, or unenforceable, and no party to a 
     covered swap agreement shall be entitled to rescind, or 
     recover any payment made with respect to, a covered swap 
     agreement under any provision of Federal or State law, based 
     solely on the failure of the covered swap agreement to comply 
     with the terms or conditions of an exemption or exclusion 
     from any provision of the Commodity Exchange Act or any 
     regulation of the Commodity Futures Trading Commission.
       (c) Preemption.--This title shall supersede and preempt the 
     application of any State or local law that prohibits or 
     regulates gaming or the operation of bucket shops (other than 
     antifraud provisions of general applicability) in the case 
     of--
       (1) a hybrid instrument that is predominantly a banking 
     product; or
       (2) a covered swap agreement.

 MEDICARE, MEDICAID, AND SCHIP BENEFITS IMPROVEMENT AND PROTECTION ACT 
                                OF 2000

       The conference agreement would enact the provisions of H.R. 
     5661, as introduced on December 14, 2000. The text of that 
     bill follows:
     A BILL To amend titles XVIII, XIX, and XXI of the Social 
     Security Act to provide benefits improvements and beneficiary 
     protections in the Medicare and Medicaid Programs and the 
     State child health insurance program (SCHIP), as revised by 
     the Balanced Budget Act of 1997 and the Medicare, Medicaid, 
     and SCHIP Balanced Budget Refinement Act of 1999, and for 
     other purposes.
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; AMENDMENTS TO SOCIAL SECURITY ACT; 
                   REFERENCES TO OTHER ACTS; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Medicare, 
     Medicaid, and SCHIP Benefits Improvement and Protection Act 
     of 2000''.
       (b) Amendments to Social Security Act.--Except as otherwise 
     specifically provided, whenever in this Act an amendment is 
     expressed in terms of an amendment to or repeal of a section 
     or other provision, the reference shall be considered to be 
     made to that section or other provision of the Social 
     Security Act.
       (c) References to Other Acts.--In this Act:
       (1) Balanced budget act of 1997.--The term ``BBA'' means 
     the Balanced Budget Act of 1997 (Public Law 105-33; 111 Stat. 
     251).
       (2) Medicare, medicaid, and schip balanced budget 
     refinement act of 1999.--The term ``BBRA'' means the 
     Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act 
     of 1999 (Appendix F, 113 Stat. 1501A-321), as enacted into 
     law by section 1000(a)(6) of Public Law 106-113.
       (d) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; amendments to Social Security Act; references to 
              other Acts; table of contents.

               TITLE I--MEDICARE BENEFICIARY IMPROVEMENTS

                Subtitle A--Improved Preventive Benefits

Sec. 101. Coverage of biennial screening pap smear and pelvic exams.
Sec. 102. Coverage of screening for glaucoma.
Sec. 103. Coverage of screening colonoscopy for average risk 
              individuals.
Sec. 104. Modernization of screening mammography benefit.
Sec. 105. Coverage of medical nutrition therapy services for 
              beneficiaries with diabetes or a renal disease.

               Subtitle B--Other Beneficiary Improvements

Sec. 111. Acceleration of reduction of beneficiary copayment for 
              hospital outpatient department services.
Sec. 112. Preservation of coverage of drugs and biologicals under part 
              B of the medicare program.
Sec. 113. Elimination of time limitation on medicare benefits for 
              immunosuppressive drugs.
Sec. 114. Imposition of billing limits on drugs.
Sec. 115. Waiver of 24-month waiting period for medicare coverage of 
              individuals disabled with amyotrophic lateral sclerosis 
              (ALS).

             Subtitle C--Demonstration Projects and Studies

Sec. 121. Demonstration project for disease management for severely 
              chronically ill medicare beneficiaries.
Sec. 122. Cancer prevention and treatment demonstration for ethnic and 
              racial minorities.
Sec. 123. Study on medicare coverage of routine thyroid screening.
Sec. 124. MedPAC study on consumer coalitions.
Sec. 125. Study on limitation on State payment for medicare cost-
              sharing affecting access to services for qualified 
              medicare beneficiaries.
Sec. 126. Studies on preventive interventions in primary care for older 
              Americans.
Sec. 127. MedPAC study and report on medicare coverage of cardiac and 
              pulmonary rehabilitation therapy services.
Sec. 128. Lifestyle modification program demonstration.

                TITLE II--RURAL HEALTH CARE IMPROVEMENTS

            Subtitle A--Critical Access Hospital Provisions

Sec. 201. Clarification of no beneficiary cost-sharing for clinical 
              diagnostic laboratory tests furnished by critical access 
              hospitals.
Sec. 202. Assistance with fee schedule payment for professional 
              services under all-inclusive rate.
Sec. 203. Exemption of critical access hospital swing beds from SNF 
              PPS.
Sec. 204. Payment in critical access hospitals for emergency room on-
              call physicians.
Sec. 205. Treatment of ambulance services furnished by certain critical 
              access hospitals.
Sec. 206. GAO study on certain eligibility requirements for critical 
              access hospitals.

              Subtitle B--Other Rural Hospitals Provisions

Sec. 211. Treatment of rural disproportionate share hospitals.
Sec. 212. Option to base eligibility for medicare dependent, small 
              rural hospital program on discharges during 2 of the 3 
              most recently audited cost reporting periods.
Sec. 213. Extension of option to use rebased target amounts to all sole 
              community hospitals.
Sec. 214. MedPAC analysis of impact of volume on per unit cost of rural 
              hospitals with psychiatric units.

                   Subtitle C--Other Rural Provisions

Sec. 221. Assistance for providers of ambulance services in rural 
              areas.
Sec. 222. Payment for certain physician assistant services.
Sec. 223. Revision of medicare reimbursement for telehealth services.
Sec. 224. Expanding access to rural health clinics.
Sec. 225. MedPAC study on low-volume, isolated rural health care 
              providers.

                TITLE III--PROVISIONS RELATING TO PART A

                Subtitle A--Inpatient Hospital Services

Sec. 301. Revision of acute care hospital payment update for 2001.
Sec. 302. Additional modification in transition for indirect medical 
              education (IME) percentage adjustment.
Sec. 303. Decrease in reductions for disproportionate share hospital 
              (DSH) payments.
Sec. 304. Wage index improvements.
Sec. 305. Payment for inpatient services of rehabilitation hospitals.
Sec. 306. Payment for inpatient services of psychiatric hospitals.
Sec. 307. Payment for inpatient services of long-term care hospitals.

 Subtitle B--Adjustments to PPS Payments for Skilled Nursing Facilities

Sec. 311. Elimination of reduction in skilled nursing facility (SNF) 
              market basket update in 2001.
Sec. 312. Increase in nursing component of PPS Federal rate.
Sec. 313. Application of SNF consolidated billing requirement limited 
              to part A covered stays.
Sec. 314. Adjustment of rehabilitation RUGs to correct anomaly in 
              payment rates.
Sec. 315. Establishment of process for geographic reclassification.

                        Subtitle C--Hospice Care

Sec. 321. 5 percent increase in payment base.
Sec. 322. Clarification of physician certification.
Sec. 323. MedPAC report on access to, and use of, hospice benefit.

                      Subtitle D--Other Provisions

Sec. 331. Relief from medicare part A late enrollment penalty for group 
              buy-in for State and local retirees.

                TITLE IV--PROVISIONS RELATING TO PART B

                Subtitle A--Hospital Outpatient Services

Sec. 401. Revision of hospital outpatient PPS payment update.
Sec. 402. Clarifying process and standards for determining eligibility 
              of devices for pass-through payments under hospital 
              outpatient PPS.
Sec. 403. Application of OPD PPS transitional corridor payments to 
              certain hospitals that did not submit a 1996 cost report.
Sec. 404. Application of rules for determining provider-based status 
              for certain entities.
Sec. 405. Treatment of children's hospitals under prospective payment 
              system.
Sec. 406. Inclusion of temperature monitored cryoablation in 
              transitional pass-through for certain medical devices, 
              drugs, and biologicals under OPD PPS.

        Subtitle B--Provisions Relating to Physicians' Services

Sec. 411. GAO studies relating to physicians' services.
Sec. 412. Physician group practice demonstration.
Sec. 413. Study on enrollment procedures for groups that retain 
              independent contractor physicians.

[[Page 26924]]

                       Subtitle C--Other Services

Sec. 421. 1-year extension of moratorium on therapy caps; report on 
              standards for supervision of physical therapy assistants.
Sec. 422. Update in renal dialysis composite rate.
Sec. 423. Payment for ambulance services.
Sec. 424. Ambulatory surgical centers.
Sec. 425. Full update for durable medical equipment.
Sec. 426. Full update for orthotics and prosthetics.
Sec. 427. Establishment of special payment provisions and requirements 
              for prosthetics and certain custom-fabricated orthotic 
              items.
Sec. 428. Replacement of prosthetic devices and parts.
Sec. 429. Revised part B payment for drugs and biologicals and related 
              services.
Sec. 430. Contrast enhanced diagnostic procedures under hospital 
              prospective payment system.
Sec. 431. Qualifications for community mental health centers.
Sec. 432. Payment of physician and nonphysician services in certain 
              Indian providers.
Sec. 433. GAO study on coverage of surgical first assisting services of 
              certified registered nurse first assistants.
Sec. 434. MedPAC study and report on medicare reimbursement for 
              services provided by certain providers.
Sec. 435. MedPAC study and report on medicare coverage of services 
              provided by certain nonphysician providers.
Sec. 436. GAO study and report on the costs of emergency and medical 
              transportation services.
Sec. 437. GAO studies and reports on medicare payments.
Sec. 438. MedPAC study on access to outpatient pain management 
              services.

             TITLE V--PROVISIONS RELATING TO PARTS A AND B

                    Subtitle A--Home Health Services

Sec. 501. 1-year additional delay in application of 15 percent 
              reduction on payment limits for home health services.
Sec. 502. Restoration of full home health market basket update for home 
              health services for fiscal year 2001.
Sec. 503. Temporary two-month periodic interim payment.
Sec. 504. Use of telehealth in delivery of home health services.
Sec. 505. Study on costs to home health agencies of purchasing 
              nonroutine medical supplies.
Sec. 506. Treatment of branch offices; GAO study on supervision of home 
              health care provided in isolated rural areas.
Sec. 507. Clarification of the homebound definition under the medicare 
              home health benefit.
Sec. 508. Temporary increase for home health services furnished in a 
              rural area.

             Subtitle B--Direct Graduate Medical Education

Sec. 511. Increase in floor for direct graduate medical education 
              payments.
Sec. 512. Change in distribution formula for Medicare+Choice-related 
              nursing and allied health education costs.

      Subtitle C--Changes in Medicare Coverage and Appeals Process

Sec. 521. Revisions to medicare appeals process.
Sec. 522. Revisions to medicare coverage process.

            Subtitle D--Improving Access to New Technologies

Sec. 531. Reimbursement improvements for new clinical laboratory tests 
              and durable medical equipment.
Sec. 532. Retention of HCPCS level III codes.
Sec. 533. Recognition of new medical technologies under inpatient 
              hospital PPS.

                      Subtitle E--Other Provisions

Sec. 541. Increase in reimbursement for bad debt.
Sec. 542. Treatment of certain physician pathology services under 
              medicare.
Sec. 543. Extension of advisory opinion authority.
Sec. 544. Change in annual MedPAC reporting.
Sec. 545. Development of patient assessment instruments.
Sec. 546. GAO report on impact of the Emergency Medical Treatment and 
              Active Labor Act (EMTALA) on hospital emergency 
              departments.
Sec. 547. Clarification of application of temporary payment increases 
              for 2001.

 TITLE VI--PROVISIONS RELATING TO PART C (MEDICARE+CHOICE PROGRAM) AND 
                 OTHER MEDICARE MANAGED CARE PROVISIONS

              Subtitle A--Medicare+Choice Payment Reforms

Sec. 601. Increase in minimum payment amount.
Sec. 602. Increase in minimum percentage increase.
Sec. 603. Phase-in of risk adjustment.
Sec. 604. Transition to revised Medicare+Choice payment rates.
Sec. 605. Revision of payment rates for ESRD patients enrolled in 
              Medicare+Choice plans.
Sec. 606. Permitting premium reductions as additional benefits under 
              Medicare+Choice plans.
Sec. 607. Full implementation of risk adjustment for congestive heart 
              failure enrollees for 2001.
Sec. 608. Expansion of application of Medicare+Choice new entry bonus.
Sec. 609. Report on inclusion of certain costs of the Department of 
              Veterans Affairs and military facility services in 
              calculating Medicare+Choice payment rates.

               Subtitle B--Other Medicare+Choice Reforms

Sec. 611. Payment of additional amounts for new benefits covered during 
              a contract term.
Sec. 612. Restriction on implementation of significant new regulatory 
              requirements midyear.
Sec. 613. Timely approval of marketing material that follows model 
              marketing language.
Sec. 614. Avoiding duplicative regulation.
Sec. 615. Election of uniform local coverage policy for Medicare+Choice 
              plan covering multiple localities.
Sec. 616. Eliminating health disparities in Medicare+Choice program.
Sec. 617. Medicare+Choice program compatibility with employer or union 
              group health plans.
Sec. 618. Special medigap enrollment antidiscrimination provision for 
              certain beneficiaries.
Sec. 619. Restoring effective date of elections and changes of 
              elections of Medicare+Choice plans.
Sec. 620. Permitting ESRD beneficiaries to enroll in another 
              Medicare+Choice plan if the plan in which they are 
              enrolled is terminated.
Sec. 621. Providing choice for skilled nursing facility services under 
              the Medicare+Choice program.
Sec. 622. Providing for accountability of Medicare+Choice plans.
Sec. 623. Increased civil money penalty for Medicare+Choice 
              organizations that terminate contracts mid-year.

                 Subtitle C--Other Managed Care Reforms

Sec. 631. 1-year extension of social health maintenance organization 
              (SHMO) demonstration project.
Sec. 632. Revised terms and conditions for extension of medicare 
              community nursing organization (CNO) demonstration 
              project.
Sec. 633. Extension of medicare municipal health services demonstration 
              projects.
Sec. 634. Service area expansion for medicare cost contracts during 
              transition period.

                          TITLE VII--MEDICAID

Sec. 701. DSH payments.
Sec. 702. New prospective payment system for Federally-qualified health 
              centers and rural health clinics.
Sec. 703. Streamlined approval of continued State-wide section 1115 
              medicaid waivers.
Sec. 704. Medicaid county-organized health systems.
Sec. 705. Deadline for issuance of final regulation relating to 
              medicaid upper payment limits.
Sec. 706. Alaska FMAP.
Sec. 707. 1-year extension of welfare-to-work transition.
Sec. 708. Additional entities qualified to determine medicaid 
              presumptive eligibility for low-income children.
Sec. 709. Development of uniform QMB/SLMB application form.
Sec. 710. Technical corrections.

         TITLE VIII--STATE CHILDREN'S HEALTH INSURANCE PROGRAM

Sec. 801. Special rule for redistribution and availability of unused 
              fiscal year 1998 and 1999 SCHIP allotments.
Sec. 802. Authority to pay medicaid expansion SCHIP costs from title 
              XXI appropriation.
Sec. 803. Application of medicaid child presumptive eligibility 
              provisions.

                       TITLE IX--OTHER PROVISIONS

                        Subtitle A--PACE Program

Sec. 901. Extension of transition for current waivers.
Sec. 902. Continuing of certain operating arrangements permitted.
Sec. 903. Flexibility in exercising waiver authority.

   Subtitle B--Outreach to Eligible Low-Income Medicare Beneficiaries

Sec. 911. Outreach on availability of medicare cost-sharing assistance 
              to eligible low-income medicare beneficiaries.

           Subtitle C--Maternal and Child Health Block Grant

Sec. 921. Increase in authorization of appropriations for the maternal 
              and child health services block grant.

                          Subtitle D--Diabetes

Sec. 931. Increase in appropriations for special diabetes programs for 
              type I diabetes and Indians.
Sec. 932. Appropriations for Ricky Ray Hemophilia Relief Fund.

          Subtitle E--Information on Nursing Facility Staffing

Sec. 941. Posting of information on nursing facility staffing.

[[Page 26925]]

    Subtitle F--Adjustment of Multiemployer Plan Benefits Guaranteed

Sec. 951. Multiemployer plan benefits guaranteed.

               TITLE I--MEDICARE BENEFICIARY IMPROVEMENTS

                Subtitle A--Improved Preventive Benefits

     SEC. 101. COVERAGE OF BIENNIAL SCREENING PAP SMEAR AND PELVIC 
                   EXAMS.

       (a) In General.--
       (1) Biennial screening pap smear.--Section 1861(nn)(1) (42 
     U.S.C. 1395x(nn)(1)) is amended by striking ``3 years'' and 
     inserting ``2 years''.
       (2) Biennial screening pelvic exam.--Section 1861(nn)(2) 
     (42 U.S.C. 1395x(nn)(2)) is amended by striking ``3 years'' 
     and inserting ``2 years''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to items and services furnished on or after July 
     1, 2001.

     SEC. 102. COVERAGE OF SCREENING FOR GLAUCOMA.

       (a) Coverage.--Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)) 
     is amended--
       (1) by striking ``and'' at the end of subparagraph (S);
       (2) by inserting ``and'' at the end of subparagraph (T); 
     and
       (3) by adding at the end the following:
       ``(U) screening for glaucoma (as defined in subsection 
     (uu)) for individuals determined to be at high risk for 
     glaucoma, individuals with a family history of glaucoma and 
     individuals with diabetes;''.
       (b) Services Described.--Section 1861 (42 U.S.C. 1395x) is 
     amended by adding at the end the following new subsection:

                        ``Screening for Glaucoma

       ``(uu) The term `screening for glaucoma' means a dilated 
     eye examination with an intraocular pressure measurement, and 
     a direct ophthalmoscopy or a slit-lamp biomicroscopic 
     examination for the early detection of glaucoma which is 
     furnished by or under the direct supervision of an 
     optometrist or ophthalmologist who is legally authorized to 
     furnish such services under State law (or the State 
     regulatory mechanism provided by State law) of the State in 
     which the services are furnished, as would otherwise be 
     covered if furnished by a physician or as an incident to a 
     physician's professional service, if the individual involved 
     has not had such an examination in the preceding year.''.
       (c) Conforming Amendment.--Section 1862(a)(1)(F) (42 U.S.C. 
     1395y(a)(1)(F)) is amended--
       (1) by striking ``and,''; and
       (2) by adding at the end the following: ``and, in the case 
     of screening for glaucoma, which is performed more frequently 
     than is provided under section 1861(uu),''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to services furnished on or after January 1, 
     2002.

     SEC. 103. COVERAGE OF SCREENING COLONOSCOPY FOR AVERAGE RISK 
                   INDIVIDUALS.

       (a) In General.--Section 1861(pp) (42 U.S.C. 1395x(pp)) is 
     amended--
       (1) in paragraph (1)(C), by striking ``In the case of an 
     individual at high risk for colorectal cancer, screening 
     colonoscopy'' and inserting ``Screening colonoscopy''; and
       (2) in paragraph (2), by striking ``In paragraph (1)(C), 
     an'' and inserting ``An''.
       (b) Frequency Limits for Screening Colonoscopy.--Section 
     1834(d) (42 U.S.C. 1395m(d)) is amended--
       (1) in paragraph (2)(E)(ii), by inserting before the period 
     at the end the following: ``or, in the case of an individual 
     who is not at high risk for colorectal cancer, if the 
     procedure is performed within the 119 months after a previous 
     screening colonoscopy''; and
       (2) in paragraph (3)--
       (A) in the heading by striking ``for individuals at high 
     risk for colorectal cancer'';
       (B) in subparagraph (A), by striking ``for individuals at 
     high risk for colorectal cancer (as defined in section 
     1861(pp)(2))''; and
       (C) in subparagraph (E), by inserting before the period at 
     the end the following: ``or for other individuals if the 
     procedure is performed within the 119 months after a previous 
     screening colonoscopy or within 47 months after a previous 
     screening flexible sigmoidoscopy''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to colorectal cancer screening services provided 
     on or after July 1, 2001.

     SEC. 104. MODERNIZATION OF SCREENING MAMMOGRAPHY BENEFIT.

       (a) Inclusion in Physician Fee Schedule.--Section 
     1848(j)(3) (42 U.S.C. 1395w-4(j)(3)) is amended by inserting 
     ``(13),'' after ``(4),''.
       (b) Conforming Amendment.--Section 1834(c) (42 U.S.C. 
     1395m(c)) is amended to read as follows:
       ``(c) Payment and Standards for Screening Mammography.--
       ``(1) In general.--With respect to expenses incurred for 
     screening mammography (as defined in section 1861(jj)), 
     payment may be made only--
       ``(A) for screening mammography conducted consistent with 
     the frequency permitted under paragraph (2); and
       ``(B) if the screening mammography is conducted by a 
     facility that has a certificate (or provisional certificate) 
     issued under section 354 of the Public Health Service Act.
       ``(2) Frequency covered.--
       ``(A) In general.--Subject to revision by the Secretary 
     under subparagraph (B)--
       ``(i) no payment may be made under this part for screening 
     mammography performed on a woman under 35 years of age;
       ``(ii) payment may be made under this part for only one 
     screening mammography performed on a woman over 34 years of 
     age, but under 40 years of age; and
       ``(iii) in the case of a woman over 39 years of age, 
     payment may not be made under this part for screening 
     mammography performed within 11 months following the month in 
     which a previous screening mammography was performed.
       ``(B) Revision of frequency.--
       ``(i) Review.--The Secretary, in consultation with the 
     Director of the National Cancer Institute, shall review 
     periodically the appropriate frequency for performing 
     screening mammography, based on age and such other factors as 
     the Secretary believes to be pertinent.
       ``(ii) Revision of frequency.--The Secretary, taking into 
     consideration the review made under clause (i), may revise 
     from time to time the frequency with which screening 
     mammography may be paid for under this subsection.''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall apply with respect to screening mammographies 
     furnished on or after January 1, 2002.
       (d) Payment for New Technologies.--
       (1) Tests furnished in 2001.--
       (A) Screening.--For a screening mammography (as defined in 
     section 1861(jj) of the Social Security Act (42 U.S.C. 
     1395x(jj))) furnished during the period beginning on April 1, 
     2001, and ending on December 31, 2001, that uses a new 
     technology, payment for such screening mammography shall be 
     made as follows:
       (i) In the case of a technology which directly takes a 
     digital image (without involving film), in an amount equal to 
     150 percent of the amount of payment under section 1848 of 
     such Act (42 U.S.C. 1395w-4) for a bilateral diagnostic 
     mammography (under HCPCS code 76091) for such year.
       (ii) In the case of a technology which allows conversion of 
     a standard film mammogram into a digital image and 
     subsequently analyzes such resulting image with software to 
     identify possible problem areas, in an amount equal to the 
     limit that would otherwise be applied under section 
     1834(c)(3) of such Act (42 U.S.C. 1395m(c)(3)) for 2001, 
     increased by $15.
       (B) Bilateral diagnostic mammography.--For a bilateral 
     diagnostic mammography furnished during the period beginning 
     on April 1, 2001, and ending on December 31, 2001, that uses 
     a new technology described in subparagraph (A), payment for 
     such mammography shall be the amount of payment provided for 
     under such subparagraph.
       (C) Allocation of amounts.--The Secretary shall provide for 
     an appropriate allocation of the amounts under subparagraphs 
     (A) and (B) between the professional and technical 
     components.
       (D) Implementation of provision.--The Secretary of Health 
     and Human Services may implement the provisions of this 
     paragraph by program memorandum or otherwise.
       (2) Consideration of new hcpcs code for new technologies 
     after 2001.--The Secretary shall determine, for such 
     mammographies performed after 2001, whether the assignment of 
     a new HCPCS code is appropriate for mammography that uses a 
     new technology. If the Secretary determines that a new code 
     is appropriate for such mammography, the Secretary shall 
     provide for such new code for such tests furnished after 
     2001.
       (3) New technology described.--For purposes of this 
     subsection, a new technology with respect to a mammography is 
     an advance in technology with respect to the test or 
     equipment that results in the following:
       (A) A significant increase or decrease in the resources 
     used in the test or in the manufacture of the equipment.
       (B) A significant improvement in the performance of the 
     test or equipment.
       (C) A significant advance in medical technology that is 
     expected to significantly improve the treatment of medicare 
     beneficiaries.
       (4) HCPCS code defined.--The term ``HCPCS code'' means a 
     code under the Health Care Financing Administration Common 
     Procedure Coding System (HCPCS).

     SEC. 105. COVERAGE OF MEDICAL NUTRITION THERAPY SERVICES FOR 
                   BENEFICIARIES WITH DIABETES OR A RENAL DISEASE.

       (a) Coverage.--Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)), 
     as amended by section 102(a), is amended--
       (1) in subparagraph (T), by striking ``and'' at the end;
       (2) in subparagraph (U), by inserting ``and'' at the end; 
     and
       (3) by adding at the end the following new subparagraph:
       ``(V) medical nutrition therapy services (as defined in 
     subsection (vv)(1)) in the case of a beneficiary with 
     diabetes or a renal disease who--
       ``(i) has not received diabetes outpatient self-management 
     training services within a time period determined by the 
     Secretary;
       ``(ii) is not receiving maintenance dialysis for which 
     payment is made under section 1881; and
       ``(iii) meets such other criteria determined by the 
     Secretary after consideration of protocols established by 
     dietitian or nutrition professional organizations;''.
       (b) Services Described.--Section 1861 (42 U.S.C. 1395x), as 
     amended by section 102(b), is amended by adding at the end 
     the following:

``Medical Nutrition Therapy Services; Registered Dietitian or Nutrition 
                              Professional

       ``(vv)(1) The term `medical nutrition therapy services' 
     means nutritional diagnostic, therapy,

[[Page 26926]]

     and counseling services for the purpose of disease management 
     which are furnished by a registered dietitian or nutrition 
     professional (as defined in paragraph (2)) pursuant to a 
     referral by a physician (as defined in subsection (r)(1)).
       ``(2) Subject to paragraph (3), the term `registered 
     dietitian or nutrition professional' means an individual 
     who--
       ``(A) holds a baccalaureate or higher degree granted by a 
     regionally accredited college or university in the United 
     States (or an equivalent foreign degree) with completion of 
     the academic requirements of a program in nutrition or 
     dietetics, as accredited by an appropriate national 
     accreditation organization recognized by the Secretary for 
     this purpose;
       ``(B) has completed at least 900 hours of supervised 
     dietetics practice under the supervision of a registered 
     dietitian or nutrition professional; and
       ``(C)(i) is licensed or certified as a dietitian or 
     nutrition professional by the State in which the services are 
     performed; or
       ``(ii) in the case of an individual in a State that does 
     not provide for such licensure or certification, meets such 
     other criteria as the Secretary establishes.
       ``(3) Subparagraphs (A) and (B) of paragraph (2) shall not 
     apply in the case of an individual who, as of the date of the 
     enactment of this subsection, is licensed or certified as a 
     dietitian or nutrition professional by the State in which 
     medical nutrition therapy services are performed.''.
       (c) Payment.--Section 1833(a)(1) (42 U.S.C. 1395l(a)(1)) is 
     amended--
       (1) by striking ``and'' before ``(S)''; and
       (2) by inserting before the semicolon at the end the 
     following: ``, and (T) with respect to medical nutrition 
     therapy services (as defined in section 1861(vv)), the amount 
     paid shall be 80 percent of the lesser of the actual charge 
     for the services or 85 percent of the amount determined under 
     the fee schedule established under section 1848(b) for the 
     same services if furnished by a physician''.
       (d) Application of Limits on Billing.--Section 
     1842(b)(18)(C) (42 U.S.C. 1395u(b)(18)(C)) is amended by 
     adding at the end the following new clause:
       ``(vi) A registered dietitian or nutrition professional.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to services furnished on or after January 1, 
     2002.
       (f) Study.--Not later than July 1, 2003, the Secretary of 
     Health and Human Services shall submit to Congress a report 
     that contains recommendations with respect to the expansion 
     to other medicare beneficiary populations of the medical 
     nutrition therapy services benefit (furnished under the 
     amendments made by this section).

               Subtitle B--Other Beneficiary Improvements

     SEC. 111. ACCELERATION OF REDUCTION OF BENEFICIARY COPAYMENT 
                   FOR HOSPITAL OUTPATIENT DEPARTMENT SERVICES.

       (a) Reducing the Upper Limit on Beneficiary Copayment.--
       (1) In general.--Section 1833(t)(8)(C) (42 U.S.C. 
     1395l(t)(8)(C)) is amended to read as follows:
       ``(C) Limitation on copayment amount.--
       ``(i) To inpatient hospital deductible amount.--In no case 
     shall the copayment amount for a procedure performed in a 
     year exceed the amount of the inpatient hospital deductible 
     established under section 1813(b) for that year.
       ``(ii) To specified percentage.--The Secretary shall reduce 
     the national unadjusted copayment amount for a covered OPD 
     service (or group of such services) furnished in a year in a 
     manner so that the effective copayment rate (determined on a 
     national unadjusted basis) for that service in the year does 
     not exceed the following percentage:

       ``(I) For procedures performed in 2001, on or after April 
     1, 2001, 57 percent.
       ``(II) For procedures performed in 2002 or 2003, 55 
     percent.
       ``(III) For procedures performed in 2004, 50 percent.
       ``(IV) For procedures performed in 2005, 45 percent.
       ``(V) For procedures performed in 2006 and thereafter, 40 
     percent.''.

       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply with respect to services furnished on or after 
     April 1, 2001.
       (b) Construction Regarding Limiting Increases in Cost-
     Sharing.--Nothing in this Act or the Social Security Act 
     shall be construed as preventing a hospital from waiving the 
     amount of any coinsurance for outpatient hospital services 
     under the medicare program under title XVIII of the Social 
     Security Act that may have been increased as a result of the 
     implementation of the prospective payment system under 
     section 1833(t) of the Social Security Act (42 U.S.C. 
     1395l(t)).
       (c) GAO Study of Reduction in Medigap Premium Levels 
     Resulting From Reductions in Coinsurance.--The Comptroller 
     General of the United States shall work, in concert with the 
     National Association of Insurance Commissioners, to evaluate 
     the extent to which the premium levels for medicare 
     supplemental policies reflect the reductions in coinsurance 
     resulting from the amendment made by subsection (a). Not 
     later than April 1, 2004, the Comptroller General shall 
     submit to Congress a report on such evaluation and the extent 
     to which the reductions in beneficiary coinsurance effected 
     by such amendment have resulted in actual savings to medicare 
     beneficiaries.

     SEC. 112. PRESERVATION OF COVERAGE OF DRUGS AND BIOLOGICALS 
                   UNDER PART B OF THE MEDICARE PROGRAM.

       (a) In General.--Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)) 
     is amended, in each of subparagraphs (A) and (B), by striking 
     ``(including drugs and biologicals which cannot, as 
     determined in accordance with regulations, be self-
     administered)'' and inserting ``(including drugs and 
     biologicals which are not usually self-administered by the 
     patient)''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to drugs and biologicals administered on or after 
     the date of the enactment of this Act.

     SEC. 113. ELIMINATION OF TIME LIMITATION ON MEDICARE BENEFITS 
                   FOR IMMUNOSUPPRESSIVE DRUGS.

       (a) In General.--Section 1861(s)(2)(J) (42 U.S.C. 
     1395x(s)(2)(J)) is amended by striking ``, but only'' and all 
     that follows up to the semicolon at the end.
       (b) Conforming Amendments.--
       (1) Extended coverage.--Section 1832 (42 U.S.C. 1395k) is 
     amended--
       (A) by striking subsection (b); and
       (B) by redesignating subsection (c) as subsection (b).
       (2) Pass-through; report.--Section 227 of BBRA is amended 
     by striking subsection (d).
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply to drugs furnished on or after the date of the 
     enactment of this Act.

     SEC. 114. IMPOSITION OF BILLING LIMITS ON DRUGS.

       (a) In General.--Section 1842(o) (42 U.S.C. 1395u(o)) is 
     amended by adding at the end the following new paragraph:
       ``(3)(A) Payment for a charge for any drug or biological 
     for which payment may be made under this part may be made 
     only on an assignment-related basis.
       ``(B) The provisions of subsection (b)(18)(B) shall apply 
     to charges for such drugs or biologicals in the same manner 
     as they apply to services furnished by a practitioner 
     described in subsection (b)(18)(C).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to items furnished on or after January 1, 2001.

     SEC. 115. WAIVER OF 24-MONTH WAITING PERIOD FOR MEDICARE 
                   COVERAGE OF INDIVIDUALS DISABLED WITH 
                   AMYOTROPHIC LATERAL SCLEROSIS (ALS).

       (a) In General.--Section 226 (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 new 
     subsection:
       ``(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.
       ``(3) Subsection (f) shall not be applied.''.
       (b) Conforming Amendment.--Section 1837 (42 U.S.C. 1395p) 
     is amended by adding at the end the following new subsection:
       ``(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 July 1, 2001.

             Subtitle C--Demonstration Projects and Studies

     SEC. 121. DEMONSTRATION PROJECT FOR DISEASE MANAGEMENT FOR 
                   SEVERELY CHRONICALLY ILL MEDICARE 
                   BENEFICIARIES.

       (a) In General.--The Secretary of Health and Human Services 
     shall conduct a demonstration project under this section (in 
     this section referred to as the ``project'') to demonstrate 
     the impact on costs and health outcomes of applying disease 
     management to medicare beneficiaries with diagnosed, 
     advanced-stage congestive heart failure, diabetes, or 
     coronary heart disease. In no case may the number of 
     participants in the project exceed 30,000 at any time.
       (b) Voluntary Participation.--
       (1) Eligibility.--Medicare beneficiaries are eligible to 
     participate in the project only if--
       (A) they meet specific medical criteria demonstrating the 
     appropriate diagnosis and the advanced nature of their 
     disease;
       (B) their physicians approve of participation in the 
     project; and
       (C) they are not enrolled in a Medicare+Choice plan.
       (2) Benefits.--A beneficiary who is enrolled in the project 
     shall be eligible--
       (A) for disease management services related to their 
     chronic health condition; and
       (B) for payment for all costs for prescription drugs 
     without regard to whether or not they relate to the chronic 
     health condition, except that

[[Page 26927]]

     the project may provide for modest cost-sharing with respect 
     to prescription drug coverage.
       (c) Contracts With Disease Management Organizations.--
       (1) In general.--The Secretary of Health and Human Services 
     shall carry out the project through contracts with up to 
     three disease management organizations. The Secretary shall 
     not enter into such a contract with an organization unless 
     the organization demonstrates that it can produce improved 
     health outcomes and reduce aggregate medicare expenditures 
     consistent with paragraph (2).
       (2) Contract provisions.--Under such contracts--
       (A) such an organization shall be required to provide for 
     prescription drug coverage described in subsection (b)(2)(B);
       (B) such an organization shall be paid a fee negotiated and 
     established by the Secretary in a manner so that (taking into 
     account savings in expenditures under parts A and B of the 
     medicare program under title XVIII of the Social Security 
     Act) there will be a net reduction in expenditures under the 
     medicare program as a result of the project; and
       (C) such an organization shall guarantee, through an 
     appropriate arrangement with a reinsurance company or 
     otherwise, the net reduction in expenditures described in 
     subparagraph (B).
       (3) Payments.--Payments to such organizations shall be made 
     in appropriate proportion from the Trust Funds established 
     under title XVIII of the Social Security Act.
       (d) Application of Medigap Protections to Demonstration 
     Project Enrollees.--(1) Subject to paragraph (2), the 
     provisions of section 1882(s)(3) (other than clauses (i) 
     through (iv) of subparagraph (B)) and 1882(s)(4) of the 
     Social Security Act shall apply to enrollment (and 
     termination of enrollment) in the demonstration project under 
     this section, in the same manner as they apply to enrollment 
     (and termination of enrollment) with a Medicare+Choice 
     organization in a Medicare+Choice plan.
       (2) In applying paragraph (1)--
       (A) any reference in clause (v) or (vi) of section 
     1882(s)(3)(B) of such Act to 12 months is deemed a reference 
     to the period of the demonstration project; and
       (B) the notification required under section 1882(s)(3)(D) 
     of such Act shall be provided in a manner specified by the 
     Secretary of Health and Human Services.
       (e) Duration.--The project shall last for not longer than 3 
     years.
       (f) Waiver.--The Secretary of Health and Human Services 
     shall waive such provisions of title XVIII of the Social 
     Security Act as may be necessary to provide for payment for 
     services under the project in accordance with subsection 
     (c)(3).
       (g) Report.--The Secretary of Health and Human Services 
     shall submit to Congress an interim report on the project not 
     later than 2 years after the date it is first implemented and 
     a final report on the project not later than 6 months after 
     the date of its completion. Such reports shall include 
     information on the impact of the project on costs and health 
     outcomes and recommendations on the cost-effectiveness of 
     extending or expanding the project.

     SEC. 122. CANCER PREVENTION AND TREATMENT DEMONSTRATION FOR 
                   ETHNIC AND RACIAL MINORITIES.

       (a) Demonstration.--
       (1) In general.--The Secretary of Health and Human Services 
     (in this section referred to as the ``Secretary'') shall 
     conduct demonstration projects (in this section referred to 
     as ``demonstration projects'') for the purpose of developing 
     models and evaluating methods that--
       (A) improve the quality of items and services provided to 
     target individuals in order to facilitate reduced disparities 
     in early detection and treatment of cancer;
       (B) improve clinical outcomes, satisfaction, quality of 
     life, and appropriate use of medicare-covered services and 
     referral patterns among those target individuals with cancer;
       (C) eliminate disparities in the rate of preventive cancer 
     screening measures, such as pap smears and prostate cancer 
     screenings, among target individuals; and
       (D) promote collaboration with community-based 
     organizations to ensure cultural competency of health care 
     professionals and linguistic access for persons with limited 
     English proficiency.
       (2) Target individual defined.--In this section, the term 
     ``target individual'' means an individual of a racial and 
     ethnic minority group, as defined by section 1707 of the 
     Public Health Service Act, who is entitled to benefits under 
     part A, and enrolled under part B, of title XVIII of the 
     Social Security Act.
       (b) Program Design.--
       (1) Initial design.--Not later than 1 year after the date 
     of the enactment of this Act, the Secretary shall evaluate 
     best practices in the private sector, community programs, and 
     academic research of methods that reduce disparities among 
     individuals of racial and ethnic minority groups in the 
     prevention and treatment of cancer and shall design the 
     demonstration projects based on such evaluation.
       (2) Number and project areas.--Not later than 2 years after 
     the date of the enactment of this Act, the Secretary shall 
     implement at least 9 demonstration projects, including the 
     following:
       (A) 2 projects for each of the 4 following major racial and 
     ethnic minority groups:
       (i) American Indians, including Alaska Natives, Eskimos, 
     and Aleuts.
       (ii) Asian Americans and Pacific Islanders.
       (iii) Blacks.
       (iv) Hispanics.
     The 2 projects must target different ethnic subpopulations.
       (B) 1 project within the Pacific Islands.
       (C) At least 1 project each in a rural area and inner-city 
     area.
       (3) Expansion of projects; implementation of demonstration 
     project results.--If the initial report under subsection (c) 
     contains an evaluation that demonstration projects--
       (A) reduce expenditures under the medicare program under 
     title XVIII of the Social Security Act; or
       (B) do not increase expenditures under the medicare program 
     and reduce racial and ethnic health disparities in the 
     quality of health care services provided to target 
     individuals and increase satisfaction of beneficiaries and 
     health care providers;
     the Secretary shall continue the existing demonstration 
     projects and may expand the number of demonstration projects.
       (c) Report to Congress.--
       (1) In general.--Not later than 2 years after the date the 
     Secretary implements the initial demonstration projects, and 
     biannually thereafter, the Secretary shall submit to Congress 
     a report regarding the demonstration projects.
       (2) Contents of report.--Each report under paragraph (1) 
     shall include the following:
       (A) A description of the demonstration projects.
       (B) An evaluation of--
       (i) the cost-effectiveness of the demonstration projects;
       (ii) the quality of the health care services provided to 
     target individuals under the demonstration projects; and
       (iii) beneficiary and health care provider satisfaction 
     under the demonstration projects.
       (C) Any other information regarding the demonstration 
     projects that the Secretary determines to be appropriate.
       (d) Waiver Authority.--The Secretary shall waive compliance 
     with the requirements of title XVIII of the Social Security 
     Act to such extent and for such period as the Secretary 
     determines is necessary to conduct demonstration projects.
       (e) Funding.--
       (1) Demonstration projects.--
       (A) State projects.--Except as provided in subparagraph 
     (B), the Secretary shall provide for the transfer from the 
     Federal Hospital Insurance Trust Fund and the Federal 
     Supplementary Insurance Trust Fund under title XVIII of the 
     Social Security Act, in such proportions as the Secretary 
     determines to be appropriate, of such funds as are necessary 
     for the costs of carrying out the demonstration projects.
       (B) Territory projects.--In the case of a demonstration 
     project described in subsection (b)(2)(B), amounts shall be 
     available only as provided in any Federal law making 
     appropriations for the territories.
       (2) Limitation.--In conducting demonstration projects, the 
     Secretary shall ensure that the aggregate payments made by 
     the Secretary do not exceed the sum of the amount which the 
     Secretary would have paid under the program for the 
     prevention and treatment of cancer if the demonstration 
     projects were not implemented, plus $25,000,000.

     SEC. 123. STUDY ON MEDICARE COVERAGE OF ROUTINE THYROID 
                   SCREENING.

       (a) Study.--The Secretary of Health and Human Services 
     shall request the National Academy of Sciences, and as 
     appropriate in conjunction with the United States Preventive 
     Services Task Force, to conduct a study on the addition of 
     coverage of routine thyroid screening using a thyroid 
     stimulating hormone test as a preventive benefit provided to 
     medicare beneficiaries under title XVIII of the Social 
     Security Act for some or all medicare beneficiaries. In 
     conducting the study, the Academy shall consider the short-
     term and long-term benefits, and costs to the medicare 
     program, of such addition.
       (b) Report.--Not later than 2 years after the date of the 
     enactment of this Act, the Secretary of Health and Human 
     Services shall submit a report on the findings of the study 
     conducted under subsection (a) to the Committee on Ways and 
     Means and the Committee on Commerce of the House of 
     Representatives and the Committee on Finance of the Senate.

     SEC. 124. MEDPAC STUDY ON CONSUMER COALITIONS.

       (a) Study.--The Medicare Payment Advisory Commission shall 
     conduct a study that examines the use of consumer coalitions 
     in the marketing of Medicare+Choice plans under the medicare 
     program under title XVIII of the Social Security Act. The 
     study shall examine--
       (1) the potential for increased efficiency in the medicare 
     program through greater beneficiary knowledge of their health 
     care options, decreased marketing costs of Medicare+Choice 
     organizations, and creation of a group market;
       (2) the implications of Medicare+Choice plans and medicare 
     supplemental policies (under section 1882 of the Social 
     Security Act (42 U.S.C. 1395ss)) offering medicare 
     beneficiaries in the same geographic location different 
     benefits and premiums based on their affiliation with a 
     consumer coalition;
       (3) how coalitions should be governed, how they should be 
     accountable to the Secretary of Health and Human Services, 
     and how potential conflicts of interest in the activities of 
     consumer coalitions should be avoided; and
       (4) how such coalitions should be funded.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Commission shall submit to 
     Congress a report on the study conducted under subsection 
     (a). The report shall include a recommendation on whether and 
     how a demonstration project might be conducted for the 
     operation of consumer coalitions under the medicare program.

[[Page 26928]]

       (c) Consumer Coalition Defined.--For purposes of this 
     section, the term ``consumer coalition'' means a nonprofit, 
     community-based group of organizations that--
       (1) provides information to medicare beneficiaries about 
     their health care options under the medicare program; and
       (2) negotiates benefits and premiums for medicare 
     beneficiaries who are members or otherwise affiliated with 
     the group of organizations with Medicare+Choice organizations 
     offering Medicare+Choice plans, issuers of medicare 
     supplemental policies, issuers of long-term care coverage, 
     and pharmacy benefit managers.

     SEC. 125. STUDY ON LIMITATION ON STATE PAYMENT FOR MEDICARE 
                   COST-SHARING AFFECTING ACCESS TO SERVICES FOR 
                   QUALIFIED MEDICARE BENEFICIARIES.

       (a) In General.--The Secretary of Health and Human Services 
     shall conduct a study to determine if access to certain 
     services (including mental health services) for qualified 
     medicare beneficiaries has been affected by limitations on a 
     State's payment for medicare cost-sharing for such 
     beneficiaries under section 1902(n) of the Social Security 
     Act (42 U.S.C. 1396a(n)). As part of such study, the 
     Secretary shall analyze the effect of such payment limitation 
     on providers who serve a disproportionate share of such 
     beneficiaries.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the study under subsection (a). The report shall 
     include recommendations regarding any changes that should be 
     made to the State payment limits under section 1902(n) for 
     qualified medicare beneficiaries to ensure appropriate access 
     to services.

     SEC. 126. STUDIES ON PREVENTIVE INTERVENTIONS IN PRIMARY CARE 
                   FOR OLDER AMERICANS.

       (a) Studies.--The Secretary of Health and Human Services, 
     acting through the United States Preventive Services Task 
     Force, shall conduct a series of studies designed to identify 
     preventive interventions that can be delivered in the primary 
     care setting and that are most valuable to older Americans.
       (b) Mission Statement.--The mission statement of the United 
     States Preventive Services Task Force is amended to include 
     the evaluation of services that are of particular relevance 
     to older Americans.
       (c) Report.--Not later than 1 year after the date of the 
     enactment of this Act, and annually thereafter, the Secretary 
     of Health and Human Services shall submit to Congress a 
     report on the conclusions of the studies conducted under 
     subsection (a), together with recommendations for such 
     legislation and administrative actions as the Secretary 
     considers appropriate.

     SEC. 127. MEDPAC STUDY AND REPORT ON MEDICARE COVERAGE OF 
                   CARDIAC AND PULMONARY REHABILITATION THERAPY 
                   SERVICES.

       (a) Study.--
       (1) In general.--The Medicare Payment Advisory Commission 
     shall conduct a study on coverage of cardiac and pulmonary 
     rehabilitation therapy services under the medicare program 
     under title XVIII of the Social Security Act.
       (2) Focus.--In conducting the study under paragraph (1), 
     the Commission shall focus on the appropriate--
       (A) qualifying diagnoses required for coverage of cardiac 
     and pulmonary rehabilitation therapy services;
       (B) level of physician direct involvement and supervision 
     in furnishing such services; and
       (C) level of reimbursement for such services.
       (b) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Commission shall submit to 
     Congress a report on the study conducted under subsection (a) 
     together with such recommendations for legislation and 
     administrative action as the Commission determines 
     appropriate.

     SEC. 128. LIFESTYLE MODIFICATION PROGRAM DEMONSTRATION.

       (a) In General.--The Secretary of Health and Human Services 
     shall carry out the demonstration project known as the 
     Lifestyle Modification Program Demonstration, as described in 
     the Health Care Financing Administration Memorandum of 
     Understanding entered into on November 13, 2000, and as 
     subsequently modified, (in this section referred to as the 
     ``project'') in accordance with the following requirements:
       (1) The project shall include no fewer than 1,800 medicare 
     beneficiaries who complete under the project the entire 
     course of treatment under the Lifestyle Modification Program.
       (2) The project shall be conducted over a course of 4 
     years.
       (b) Study on Cost-Effectiveness.--
       (1) Study.--The Secretary shall conduct a study on the 
     cost-effectiveness of the Lifestyle Modification Program as 
     conducted under the project. In determining whether such 
     Program is cost-effective, the Secretary shall determine 
     (using a control group under a matched paired experimental 
     design) whether expenditures incurred for medicare 
     beneficiaries enrolled under the project exceed expenditures 
     for the control group of medicare beneficiaries with similar 
     health conditions who are not enrolled under the project.
       (2) Reports.--
       (A) Initial report.--Not later that 1 year after the date 
     on which 900 medicare beneficiaries have completed the entire 
     course of treatment under the Lifestyle Modification Program 
     under the project, the Secretary shall submit to Congress an 
     initial report on the study conducted under paragraph (1).
       (B) Final report.--Not later that 1 year after the date on 
     which 1,800 medicare beneficiaries have completed the entire 
     course of treatment under such Program under the project, the 
     Secretary shall submit to Congress a final report on the 
     study conducted under paragraph (1).

                TITLE II--RURAL HEALTH CARE IMPROVEMENTS

            Subtitle A--Critical Access Hospital Provisions

     SEC. 201. CLARIFICATION OF NO BENEFICIARY COST-SHARING FOR 
                   CLINICAL DIAGNOSTIC LABORATORY TESTS FURNISHED 
                   BY CRITICAL ACCESS HOSPITALS.

       (a) Payment Clarification.--Section 1834(g) (42 U.S.C. 
     1395m(g)) is amended by adding at the end the following new 
     paragraph:
       ``(4) No beneficiary cost-sharing for clinical diagnostic 
     laboratory services.--No coinsurance, deductible, copayment, 
     or other cost-sharing otherwise applicable under this part 
     shall apply with respect to clinical diagnostic laboratory 
     services furnished as an outpatient critical access hospital 
     service. Nothing in this title shall be construed as 
     providing for payment for clinical diagnostic laboratory 
     services furnished as part of outpatient critical access 
     hospital services, other than on the basis described in this 
     subsection.''.
       (b) Technical and Conforming Amendments.--
       (1) Paragraphs (1)(D)(i) and (2)(D)(i) of section 1833(a) 
     (42 U.S.C. 1395l(a)) are each amended by striking ``or which 
     are furnished on an outpatient basis by a critical access 
     hospital''.
       (2) Section 403(d)(2) of BBRA (113 Stat. 1501A-371) is 
     amended by striking ``The amendment made by subsection (a) 
     shall apply'' and inserting ``Paragraphs (1) through (3) of 
     section 1834(g) of the Social Security Act (as amended by 
     paragraph (1)) apply''.
       (c) Effective Dates.--The amendment made--
       (1) by subsection (a) shall apply to services furnished on 
     or after the date of the enactment of BBRA;
       (2) by subsection (b)(1) shall apply as if included in the 
     enactment of section 403(e)(1) of BBRA (113 Stat. 1501A-371); 
     and
       (3) by subsection (b)(2) shall apply as if included in the 
     enactment of section 403(d)(2) of BBRA (113 Stat. 1501A-371).

     SEC. 202. ASSISTANCE WITH FEE SCHEDULE PAYMENT FOR 
                   PROFESSIONAL SERVICES UNDER ALL-INCLUSIVE RATE.

       (a) In General.--Section 1834(g)(2)(B) (42 U.S.C. 
     1395m(g)(2)(B)) is amended by inserting ``115 percent of'' 
     before ``such amounts''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to items and services furnished on 
     or after July 1, 2001.

     SEC. 203. EXEMPTION OF CRITICAL ACCESS HOSPITAL SWING BEDS 
                   FROM SNF PPS.

       (a) In General.--Section 1888(e)(7) (42 U.S.C. 
     1395yy(e)(7)) is amended--
       (1) in the heading, by striking ``Transition for'' and 
     inserting ``Treatment of'';
       (2) in subparagraph (A), by striking ``In general.--The'' 
     and inserting ``Transition.--Subject to subparagraph (C), 
     the'';
       (3) in subparagraph (A), by inserting ``(other than 
     critical access hospitals)'' after ``facilities described in 
     subparagraph (B)'';
       (4) in subparagraph (B), by striking ``, for which 
     payment'' and all that follows before the period; and
       (5) by adding at the end the following new subparagraph:
       ``(C) Exemption from pps of swing-bed services furnished in 
     critical access hospitals.--The prospective payment system 
     established under this subsection shall not apply to services 
     furnished by a critical access hospital pursuant to an 
     agreement under section 1883.''.
       (b) Payment on a Reasonable Cost Basis for Swing Bed 
     Services Furnished by Critical Access Hospitals.--Section 
     1883(a) (42 U.S.C. 1395tt(a)) is amended--
       (1) in paragraph (2)(A), by inserting ``(other than a 
     critical access hospital)'' after ``any hospital''; and
       (2) by adding at the end the following new paragraph:
       ``(3) Notwithstanding any other provision of this title, a 
     critical access hospital shall be paid for covered skilled 
     nursing facility services furnished under an agreement 
     entered into under this section on the basis of the 
     reasonable costs of such services (as determined under 
     section 1861(v)).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to cost reporting periods beginning on or after 
     the date of the enactment of this Act.

     SEC. 204. PAYMENT IN CRITICAL ACCESS HOSPITALS FOR EMERGENCY 
                   ROOM ON-CALL PHYSICIANS.

       (a) In General.--Section 1834(g) (42 U.S.C. 1395m(g)), as 
     amended by section 201(a), is further amended by adding at 
     the end the following new paragraph:
       ``(5) Coverage of costs for emergency room on-call 
     physicians.--In determining the reasonable costs of 
     outpatient critical access hospital services under paragraphs 
     (1) and (2)(A), the Secretary shall recognize as allowable 
     costs, amounts (as defined by the Secretary) for reasonable 
     compensation and related costs for emergency room physicians 
     who are on-call (as defined by the Secretary) but who are not 
     present on the premises of the critical access hospital 
     involved, and are not otherwise furnishing physicians' 
     services and are not on-call at any other provider or 
     facility.''.

[[Page 26929]]

       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to cost reporting periods beginning on or after 
     October 1, 2001.

     SEC. 205. TREATMENT OF AMBULANCE SERVICES FURNISHED BY 
                   CERTAIN CRITICAL ACCESS HOSPITALS.

       (a) In General.--Section 1834(l) (42 U.S.C. 1395m(l)) is 
     amended by adding at the end the following new paragraph:
       ``(8) Services furnished by critical access hospitals.--
     Notwithstanding any other provision of this subsection, the 
     Secretary shall pay the reasonable costs incurred in 
     furnishing ambulance services if such services are 
     furnished--
       ``(A) by a critical access hospital (as defined in section 
     1861(mm)(1)), or
       ``(B) by an entity that is owned and operated by a critical 
     access hospital,
     but only if the critical access hospital or entity is the 
     only provider or supplier of ambulance services that is 
     located within a 35-mile drive of such critical access 
     hospital.''.
       (b) Conforming Amendment.--Section 1833(a)(1)(R) (42 U.S.C. 
     1395l(a)(1)(R)) is amended--
       (1) by striking ``ambulance service,'' and inserting 
     ``ambulance services, (i)''; and
       (2) by inserting before the comma at the end the following: 
     ``and (ii) with respect to ambulance services described in 
     section 1834(l)(8), the amounts paid shall be the amounts 
     determined under section 1834(g) for outpatient critical 
     access hospital services''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to services furnished on or after the date of the 
     enactment of this Act.

     SEC. 206. GAO STUDY ON CERTAIN ELIGIBILITY REQUIREMENTS FOR 
                   CRITICAL ACCESS HOSPITALS.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study on the eligibility requirements for 
     critical access hospitals under section 1820(c) of the Social 
     Security Act (42 U.S.C. 1395i-4(c)) with respect to 
     limitations on average length of stay and number of beds in 
     such a hospital, including an analysis of--
       (1) the feasibility of having a distinct part unit as part 
     of a critical access hospital for purposes of the medicare 
     program under title XVIII of such Act; and
       (2) the effect of seasonal variations in patient admissions 
     on critical access hospital eligibility requirements with 
     respect to limitations on average annual length of stay and 
     number of beds.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the study conducted under subsection 
     (a) together with recommendations regarding--
       (1) whether distinct part units should be permitted as part 
     of a critical access hospital under the medicare program;
       (2) if so permitted, the payment methodologies that should 
     apply with respect to services provided by such units;
       (3) whether, and to what extent, such units should be 
     included in or excluded from the bed limits applicable to 
     critical access hospitals under the medicare program; and
       (4) any adjustments to such eligibility requirements to 
     account for seasonal variations in patient admissions.

              Subtitle B--Other Rural Hospitals Provisions

     SEC. 211. TREATMENT OF RURAL DISPROPORTIONATE SHARE 
                   HOSPITALS.

       (a) Application of Uniform Threshold.--Section 
     1886(d)(5)(F)(v) (42 U.S.C. 1395ww(d)(5)(F)(v)) is amended--
       (1) in subclause (II), by inserting ``(or 15 percent, for 
     discharges occurring on or after April 1, 2001)'' after ``30 
     percent'';
       (2) in subclause (III), by inserting ``(or 15 percent, for 
     discharges occurring on or after April 1, 2001)'' after ``40 
     percent''; and
       (3) in subclause (IV), by inserting ``(or 15 percent, for 
     discharges occurring on or after April 1, 2001)'' after ``45 
     percent''.
       (b) Adjustment of Payment Formulas.--
       (1) Sole community hospitals.--Section 1886(d)(5)(F) (42 
     U.S.C. 1395ww(d)(5)(F)) is amended--
       (A) in clause (iv)(VI), by inserting after ``10 percent'' 
     the following: ``or, for discharges occurring on or after 
     April 1, 2001, is equal to the percent determined in 
     accordance with clause (x)''; and
       (B) by adding at the end the following new clause:
       ``(x) For purposes of clause (iv)(VI) (relating to sole 
     community hospitals), in the case of a hospital for a cost 
     reporting period with a disproportionate patient percentage 
     (as defined in clause (vi)) that--
       ``(I) is less than 19.3, the disproportionate share --
     adjustment percentage is determined in accordance with the 
     following formula: (P-15)(.65) + 2.5;
       ``(II) is equal to or exceeds 19.3, but is less than 30.0, 
     such adjustment percentage is equal to 5.25 percent; or
       ``(III) is equal to or exceeds 30, such adjustment 
     percentage is equal to 10 percent,
     where `P' is the hospital's disproportionate patient 
     percentage (as defined in clause (vi)).''.
       (2) Rural referral centers.--Such section is further 
     amended--
       (A) in clause (iv)(V), by inserting after ``clause (viii)'' 
     the following: ``or, for discharges occurring on or after 
     April 1, 2001, is equal to the percent determined in 
     accordance with clause (xi)''; and
       (B) by adding at the end the following new clause:
       ``(xi) For purposes of clause (iv)(V) (relating to rural 
     referral centers), in the case of a hospital for a cost 
     reporting period with a disproportionate patient percentage 
     (as defined in clause (vi)) that--
       ``(I) is less than 19.3, the disproportionate share 
     adjustment percentage is determined in accordance with the 
     following formula: (P-15)(.65) + 2.5;
       ``(II) is equal to or exceeds 19.3, but is less than 30.0, 
     such adjustment percentage is equal to 5.25 percent; or
       ``(III) is equal to or exceeds 30, such adjustment 
     percentage is determined in accordance with the following 
     formula: (P-30)(.6) + 5.25,
     where `P' is the hospital's disproportionate patient 
     percentage (as defined in clause (vi)).''.
       (3) Small rural hospitals generally.--Such section is 
     further amended--
       (A) in clause (iv)(III), by inserting after ``4 percent'' 
     the following: ``or, for discharges occurring on or after 
     April 1, 2001, is equal to the percent determined in 
     accordance with clause (xii)''; and
       (B) by adding at the end the following new clause:
       ``(xii) For purposes of clause (iv)(III) (relating to small 
     rural hospitals generally), in the case of a hospital for a 
     cost reporting period with a disproportionate patient 
     percentage (as defined in clause (vi)) that--
       ``(I) is less than 19.3, the disproportionate share 
     adjustment percentage is determined in accordance with the 
     following formula: (P-15)(.65) + 2.5; or
       ``(II) is equal to or exceeds 19.3, such adjustment 
     percentage is equal to 5.25 percent,
     where `P' is the hospital's disproportionate patient 
     percentage (as defined in clause (vi)).''.
       (4) Hospitals that are both sole community hospitals and 
     rural referral centers.--Such section is further amended, in 
     clause (iv)(IV), by inserting after ``clause (viii)'' the 
     following: ``or, for discharges occurring on or after April 
     1, 2001, the greater of the percentages determined under 
     clause (x) or (xi)''.
       (5) Urban hospitals with less than 100 beds.--Such section 
     is further amended--
       (A) in clause (iv)(II), by inserting after ``5 percent'' 
     the following: ``or, for discharges occurring on or after 
     April 1, 2001, is equal to the percent determined in 
     accordance with clause (xiii)''; and
       (B) by adding at the end the following new clause:
       ``(xiii) For purposes of clause (iv)(II) (relating to urban 
     hospitals with less than 100 beds), in the case of a hospital 
     for a cost reporting period with a disproportionate patient 
     percentage (as defined in clause (vi)) that--
       ``(I) is less than 19.3, the disproportionate share 
     adjustment percentage is determined in accordance with the 
     following formula: (P-15)(.65) + 2.5; or
       ``(II) is equal to or exceeds 19.3, such adjustment 
     percentage is equal to 5.25 percent,
     where `P' is the hospital's disproportionate patient 
     percentage (as defined in clause (vi)).''.

     SEC. 212. OPTION TO BASE ELIGIBILITY FOR MEDICARE DEPENDENT, 
                   SMALL RURAL HOSPITAL PROGRAM ON DISCHARGES 
                   DURING 2 OF THE 3 MOST RECENTLY AUDITED COST 
                   REPORTING PERIODS.

       (a) In General.--Section 1886(d)(5)(G)(iv)(IV) (42 U.S.C. 
     1395ww(d)(5)(G)(iv)(IV)) is amended by inserting ``, or 2 of 
     the 3 most recently audited cost reporting periods for which 
     the Secretary has a settled cost report,'' after ``1987''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to cost reporting periods beginning 
     on or after April 1, 2001.

     SEC. 213. EXTENSION OF OPTION TO USE REBASED TARGET AMOUNTS 
                   TO ALL SOLE COMMUNITY HOSPITALS.

       (a) In General.--Section 1886(b)(3)(I)(i) (42 U.S.C. 
     1395ww(b)(3)(I)(i)) is amended--
       (1) in the matter preceding subclause (I), by striking 
     ``that for its cost reporting period beginning during 1999'' 
     and all that follows through ``for such target amount'' and 
     inserting ``there shall be substituted for the amount 
     otherwise determined under subsection (d)(5)(D)(i), if such 
     substitution results in a greater amount of payment under 
     this section for the hospital'';
       (2) in subclause (I), by striking ``target amount otherwise 
     applicable'' and all that follows through ``target amount')'' 
     and inserting ``the amount otherwise applicable to the 
     hospital under subsection (d)(5)(D)(i) (referred to in this 
     clause as the `subsection (d)(5)(D)(i) amount')''; and
       (3) in each of subclauses (II) and (III), by striking 
     ``subparagraph (C) target amount'' and inserting ``subsection 
     (d)(5)(D)(i) amount''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of section 
     405 of BBRA (113 Stat. 1501A-372).

     SEC. 214. MEDPAC ANALYSIS OF IMPACT OF VOLUME ON PER UNIT 
                   COST OF RURAL HOSPITALS WITH PSYCHIATRIC UNITS.

       The Medicare Payment Advisory Commission, in its study 
     conducted pursuant to subsection (a) of section 411 of BBRA 
     (113 Stat. 1501A-377), shall include--
       (1) in such study an analysis of the impact of volume on 
     the per unit cost of rural hospitals with psychiatric units; 
     and
       (2) in its report under subsection (b) of such section a 
     recommendation on whether special treatment for such 
     hospitals may be warranted.

                   Subtitle C--Other Rural Provisions

     SEC. 221. ASSISTANCE FOR PROVIDERS OF AMBULANCE SERVICES IN 
                   RURAL AREAS.

       (a) Transitional Assistance in Certain Mileage Rates.--
     Section 1834(l) (42 U.S.C. 1395m(l)) is amended by adding at 
     the end the following new paragraph:

[[Page 26930]]

       ``(8) Transitional assistance for rural providers.--In the 
     case of ground ambulance services furnished on or after July 
     1, 2001, and before January 1, 2004, for which the 
     transportation originates in a rural area (as defined in 
     section 1886(d)(2)(D)) or in a rural census tract of a 
     metropolitan statistical area (as determined under the most 
     recent modification of the Goldsmith Modification, originally 
     published in the Federal Register on February 27, 1992 (57 
     Fed. Reg. 6725)), the fee schedule established under this 
     subsection shall provide that, with respect to the payment 
     rate for mileage for a trip above 17 miles, and up to 50 
     miles, the rate otherwise established shall be increased by 
     not less than \1/2\ of the additional payment per mile 
     established for the first 17 miles of such a trip originating 
     in a rural area.''.
       (b) GAO Studies on the Costs of Ambulance Services 
     Furnished in Rural Areas.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study on each of the matters described in 
     paragraph (2).
       (2) Matters described.--The matters referred to in 
     paragraph (1) are the following:
       (A) The cost of efficiently providing ambulance services 
     for trips originating in rural areas, with special emphasis 
     on collection of cost data from rural providers.
       (B) The means by which rural areas with low population 
     densities can be identified for the purpose of designating 
     areas in which the cost of providing ambulance services would 
     be expected to be higher than similar services provided in 
     more heavily populated areas because of low usage. Such study 
     shall also include an analysis of the additional costs of 
     providing ambulance services in areas designated under the 
     previous sentence.
       (3) Report.--Not later than June 30, 2002, the Comptroller 
     General shall submit to Congress a report on the results of 
     the studies conducted under paragraph (1) and shall include 
     recommendations on steps that should be taken to assure 
     access to ambulance services in rural areas.
       (c) Adjustment in Rural Rates.--In providing for 
     adjustments under subparagraph (D) of section 1834(l)(2) of 
     the Social Security Act (42 U.S.C. 1395m(l)(2)) for years 
     beginning with 2004, the Secretary of Health and Human 
     Services shall take into consideration the recommendations 
     contained in the report under subsection (b)(2) and shall 
     adjust the fee schedule payment rates under such section for 
     ambulance services provided in low density rural areas based 
     on the increased cost (if any) of providing such services in 
     such areas.
       (d) Effective Date.--The amendment made by subsection (a) 
     shall apply to services furnished on or after July 1, 2001. 
     In applying such amendment to services furnished on or after 
     such date and before January 1, 2002, the amount of the rate 
     increase provided under such amendment shall be equal to 
     $1.25 per mile.

     SEC. 222. PAYMENT FOR CERTAIN PHYSICIAN ASSISTANT SERVICES.

       (a) Payment for Certain Physician Assistant Services.--
     Section 1842(b)(6)(C) (42 U.S.C. 1395u(b)(6)(C)) is amended--
       (1) by striking ``for such services provided before January 
     1, 2003,''; and
       (2) by striking the semicolon at the end and inserting a 
     comma.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the date of the enactment of this Act.

     SEC. 223. REVISION OF MEDICARE REIMBURSEMENT FOR TELEHEALTH 
                   SERVICES.

       (a) Time Limit for BBA Provision.--Section 4206(a) of BBA 
     (42 U.S.C. 1395l note) is amended by striking ``Not later 
     than January 1, 1999'' and inserting ``For services furnished 
     on and after January 1, 1999, and before October 1, 2001''.
       (b) Expansion of Medicare Payment for Telehealth 
     Services.--Section 1834 (42 U.S.C. 1395m) is amended by 
     adding at the end the following new subsection:
       ``(m) Payment for Telehealth Services.--
       ``(1) In general.--The Secretary shall pay for telehealth 
     services that are furnished via a telecommunications system 
     by a physician (as defined in section 1861(r)) or a 
     practitioner (described in section 1842(b)(18)(C)) to an 
     eligible telehealth individual enrolled under this part 
     notwithstanding that the individual physician or practitioner 
     providing the telehealth service is not at the same location 
     as the beneficiary. For purposes of the preceding sentence, 
     in the case of any Federal telemedicine demonstration program 
     conducted in Alaska or Hawaii, the term `telecommunications 
     system' includes store-and-forward technologies that provide 
     for the asynchronous transmission of health care information 
     in single or multimedia formats.
       ``(2) Payment amount.--
       ``(A) Distant site.--The Secretary shall pay to a physician 
     or practitioner located at a distant site that furnishes a 
     telehealth service to an eligible telehealth individual an 
     amount equal to the amount that such physician or 
     practitioner would have been paid under this title had such 
     service been furnished without the use of a 
     telecommunications system.
       ``(B) Facility fee for originating site.--With respect to a 
     telehealth service, subject to section 1833(a)(1)(U), there 
     shall be paid to the originating site a facility fee equal 
     to--
       ``(i) for the period beginning on October 1, 2001, and 
     ending on December 31, 2001, and for 2002, $20; and
       ``(ii) for a subsequent year, the facility fee specified in 
     clause (i) or this clause for the preceding year increased by 
     the percentage increase in the MEI (as defined in section 
     1842(i)(3)) for such subsequent year.
       ``(C) Telepresenter not required.--Nothing in this 
     subsection shall be construed as requiring an eligible 
     telehealth individual to be presented by a physician or 
     practitioner at the originating site for the furnishing of a 
     service via a telecommunications system, unless it is 
     medically necessary (as determined by the physician or 
     practitioner at the distant site).
       ``(3) Limitation on beneficiary charges.--
       ``(A) Physician and practitioner.--The provisions of 
     section 1848(g) and subparagraphs (A) and (B) of section 
     1842(b)(18) shall apply to a physician or practitioner 
     receiving payment under this subsection in the same manner as 
     they apply to physicians or practitioners under such 
     sections.
       ``(B) Originating site.--The provisions of section 
     1842(b)(18) shall apply to originating sites receiving a 
     facility fee in the same manner as they apply to 
     practitioners under such section.
       ``(4) Definitions.--For purposes of this subsection:
       ``(A) Distant site.--The term `distant site' means the site 
     at which the physician or practitioner is located at the time 
     the service is provided via a telecommunications system.
       ``(B) Eligible telehealth individual.--The term `eligible 
     telehealth individual' means an individual enrolled under 
     this part who receives a telehealth service furnished at an 
     originating site.
       ``(C) Originating site.--
       ``(i) In general.--The term `originating site' means only 
     those sites described in clause (ii) at which the eligible 
     telehealth individual is located at the time the service is 
     furnished via a telecommunications system and only if such 
     site is located--

       ``(I) in an area that is designated as a rural health 
     professional shortage area under section 332(a)(1)(A) of the 
     Public Health Service Act (42 U.S.C. 254e(a)(1)(A));
       ``(II) in a county that is not included in a Metropolitan 
     Statistical Area; or
       ``(III) from an entity that participates in a Federal 
     telemedicine demonstration project that has been approved by 
     (or receives funding from) the Secretary of Health and Human 
     Services as of December 31, 2000.

       ``(ii) Sites described.--The sites referred to in clause 
     (i) are the following sites:

       ``(I) The office of a physician or practitioner.
       ``(II) A critical access hospital (as defined in section 
     1861(mm)(1)).
       ``(III) A rural health clinic (as defined in section 
     1861(aa)(s)).
       ``(IV) A Federally qualified health center (as defined in 
     section 1861(aa)(4)).
       ``(V) A hospital (as defined in section 1861(e)).

       ``(D) Physician.--The term `physician' has the meaning 
     given that term in section 1861(r).
       ``(E) Practitioner.--The term `practitioner' has the 
     meaning given that term in section 1842(b)(18)(C).
       ``(F) Telehealth service.--
       ``(i) In general.--The term `telehealth service' means 
     professional consultations, office visits, and office 
     psychiatry services (identified as of July 1, 2000, by HCPCS 
     codes 99241-99275, 99201-99215, 90804-90809, and 90862 (and 
     as subsequently modified by the Secretary)), and any 
     additional service specified by the Secretary.
       ``(ii) Yearly update.--The Secretary shall establish a 
     process that provides, on an annual basis, for the addition 
     or deletion of services (and HCPCS codes), as appropriate, to 
     those specified in clause (i) for authorized payment under 
     paragraph (1).''.
       (c) Conforming Amendment.--Section 1833(a)(1) (42 U.S.C. 
     1395l(1)), as amended by section 105(c), is further amended--
       (1) by striking ``and (T)'' and inserting ``(T)''; and
       (2) by inserting before the semicolon at the end the 
     following: ``, and (U) with respect to facility fees 
     described in section 1834(m)(2)(B), the amounts paid shall be 
     80 percent of the lesser of the actual charge or the amounts 
     specified in such section''.
       (d) Study and Report on Additional Coverage.--
       (1) Study.--The Secretary of Health and Human Services 
     shall conduct a study to identify--
       (A) settings and sites for the provision of telehealth 
     services that are in addition to those permitted under 
     section 1834(m) of the Social Security Act, as added by 
     subsection (b);
       (B) practitioners that may be reimbursed under such section 
     for furnishing telehealth services that are in addition to 
     the practitioners that may be reimbursed for such services 
     under such section; and
       (C) geographic areas in which telehealth services may be 
     reimbursed that are in addition to the geographic areas where 
     such services may be reimbursed under such section.
       (2) Report.--Not later than 2 years after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the study conducted under paragraph (1) together 
     with such recommendations for legislation that the Secretary 
     determines are appropriate.
       (e) Effective Date.--The amendments made by subsections (b) 
     and (c) shall be effective for services furnished on or after 
     October 1, 2001.

     SEC. 224. EXPANDING ACCESS TO RURAL HEALTH CLINICS.

       (a) In General.--The matter in section 1833(f) (42 U.S.C. 
     1395l(f)) preceding paragraph (1) is amended by striking 
     ``rural hospitals'' and inserting ``hospitals''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to services furnished on or after July 1, 2001.

[[Page 26931]]



     SEC. 225. MEDPAC STUDY ON LOW-VOLUME, ISOLATED RURAL HEALTH 
                   CARE PROVIDERS.

       (a) Study.--The Medicare Payment Advisory Commission shall 
     conduct a study on the effect of low patient and procedure 
     volume on the financial status of low-volume, isolated rural 
     health care providers participating in the medicare program 
     under title XVIII of the Social Security Act.
       (b) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Commission shall submit to 
     Congress a report on the study conducted under subsection (a) 
     indicating--
       (1) whether low-volume, isolated rural health care 
     providers are having, or may have, significantly decreased 
     medicare margins or other financial difficulties resulting 
     from any of the payment methodologies described in subsection 
     (c);
       (2) whether the status as a low-volume, isolated rural 
     health care provider should be designated under the medicare 
     program and any criteria that should be used to qualify for 
     such a status; and
       (3) any changes in the payment methodologies described in 
     subsection (c) that are necessary to provide appropriate 
     reimbursement under the medicare program to low-volume, 
     isolated rural health care providers (as designated pursuant 
     to paragraph (2)).
       (c) Payment Methodologies Described.--The payment 
     methodologies described in this subsection are the following:
       (1) The prospective payment system for hospital outpatient 
     department services under section 1833(t) of the Social 
     Security Act (42 U.S.C. 1395l(t)).
       (2) The fee schedule for ambulance services under section 
     1834(l) of such Act (42 U.S.C. 1395m(l)).
       (3) The prospective payment system for inpatient hospital 
     services under section 1886 of such Act (42 U.S.C. 1395ww).
       (4) The prospective payment system for routine service 
     costs of skilled nursing facilities under section 1888(e) of 
     such Act (42 U.S.C. 1395yy(e)).
       (5) The prospective payment system for home health services 
     under section 1895 of such Act (42 U.S.C. 1395fff).

                TITLE III--PROVISIONS RELATING TO PART A

                Subtitle A--Inpatient Hospital Services

     SEC. 301. REVISION OF ACUTE CARE HOSPITAL PAYMENT UPDATE FOR 
                   2001.

       (a) In General.--Section 1886(b)(3)(B)(i) (42 U.S.C. 
     1395ww(b)(3)(B)(i)) is amended--
       (1) in subclause (XVI), by striking ``minus 1.1 percentage 
     points for hospitals (other than sole community hospitals) in 
     all areas, and the market basket percentage increase for sole 
     community hospitals,'' and inserting ``for hospitals in all 
     areas,'';
       (2) in subclause (XVII)--
       (A) by striking ``minus 1.1 percentage points'' and 
     inserting ``minus 0.55 percentage points; and
       (B) by striking ``and'' at the end;
       (3) by redesignating subclause (XVIII) as subclause (XIX);
       (4) in subclause (XIX), as so redesignated, by striking 
     ``fiscal year 2003'' and inserting ``fiscal year 2004''; and
       (5) by inserting after subclause (XVII) the following new 
     subclause:
       ``(XVIII) for fiscal year 2003, the market basket 
     percentage increase minus 0.55 percentage points for 
     hospitals in all areas, and''.
       (b) Special Rule for Payment for Fiscal Year 2001.--
     Notwithstanding the amendment made by subsection (a), for 
     purposes of making payments for fiscal year 2001 for 
     inpatient hospital services furnished by subsection (d) 
     hospitals (as defined in section 1886(d)(1)(B) of the Social 
     Security Act (42 U.S.C. 1395ww(d)(1)(B)), the ``applicable 
     percentage increase'' referred to in section 1886(b)(3)(B)(i) 
     of such Act (42 U.S.C. 1395ww(b)(3)(B)(i))--
       (1) for discharges occurring on or after October 1, 2000, 
     and before April 1, 2001, shall be determined in accordance 
     with subclause (XVI) of such section as in effect on the day 
     before the date of the enactment of this Act; and
       (2) for discharges occurring on or after April 1, 2001, and 
     before October 1, 2001, shall be equal to--
       (A) the market basket percentage increase plus 1.1 
     percentage points for hospitals (other than sole community 
     hospitals) in all areas; and
       (B) the market basket percentage increase for sole 
     community hospitals.
       (c) Consideration of Price of Blood and Blood Products in 
     Market Basket Index.--The Secretary of Health and Human 
     Services shall, when next (after the date of the enactment of 
     this Act) rebasing and revising the hospital market basket 
     index (as defined in section 1886(b)(3)(B)(iii) of the Social 
     Security Act (42 U.S.C. 1395ww(b)(3)(B)(iii))), consider the 
     prices of blood and blood products purchased by hospitals and 
     determine whether those prices are adequately reflected in 
     such index.
       (d) MedPAC Study and Report Regarding Certain Hospital 
     Costs.--
       (1) Study.--The Medicare Payment Advisory Commission shall 
     conduct a study on--
       (A) any increased costs incurred by subsection (d) 
     hospitals (as defined in paragraph (1)(B) of section 1886(d) 
     of the Social Security Act (42 U.S.C. 1395ww(d))) in 
     providing inpatient hospital services to medicare 
     beneficiaries under title XVIII of such Act during the period 
     beginning on October 1, 1983, and ending on September 30, 
     1999, that were attributable to--
       (i) complying with new blood safety measure requirements; 
     and
       (ii) providing such services using new technologies;
       (B) the extent to which the prospective payment system for 
     such services under such section provides adequate and timely 
     recognition of such increased costs;
       (C) the prospects for (and to the extent practicable, the 
     magnitude of) cost increases that hospitals will incur in 
     providing such services that are attributable to complying 
     with new blood safety measure requirements and providing such 
     services using new technologies during the 10 years after the 
     date of the enactment of this Act; and
       (D) the feasibility and advisability of establishing 
     mechanisms under such payment system to provide for more 
     timely and accurate recognition of such cost increases in the 
     future.
       (2) Consultation.--In conducting the study under this 
     subsection, the Commission shall consult with representatives 
     of the blood community, including--
       (A) hospitals;
       (B) organizations involved in the collection, processing, 
     and delivery of blood; and
       (C) organizations involved in the development of new blood 
     safety technologies.
       (3) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Commission shall submit to 
     Congress a report on the study conducted under paragraph (1) 
     together with such recommendations for legislation and 
     administrative action as the Commission determines 
     appropriate.
       (e) Adjustment for Inpatient Case Mix Changes.--
       (1) In general.--Section 1886(d)(3)(A) (42 U.S.C. 
     1395ww(d)(3)(A)) is amended by adding at the end the 
     following new clause:
       ``(vi) Insofar as the Secretary determines that the 
     adjustments under paragraph (4)(C)(i) for a previous fiscal 
     year (or estimates that such adjustments for a future fiscal 
     year) did (or are likely to) result in a change in aggregate 
     payments under this subsection during the fiscal year that 
     are a result of changes in the coding or classification of 
     discharges that do not reflect real changes in case mix, the 
     Secretary may adjust the average standardized amounts 
     computed under this paragraph for subsequent fiscal years so 
     as to eliminate the effect of such coding or classification 
     changes.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to discharges occurring on or after October 1, 
     2001.

     SEC. 302. ADDITIONAL MODIFICATION IN TRANSITION FOR INDIRECT 
                   MEDICAL EDUCATION (IME) PERCENTAGE ADJUSTMENT.

       (a) In General.--Section 1886(d)(5)(B)(ii) (42 U.S.C. 
     1395ww(d)(5)(B)(ii)) is amended--
       (1) in subclause (V) by striking ``and'' at the end;
       (2) by redesignating subclause (VI) as subclause (VII);
       (3) in subclause (VII) as so redesignated, by striking 
     ``2001'' and inserting ``2002''; and
       (4) by inserting after subclause (V) the following new 
     subclause:
       ``(VI) during fiscal year 2002, `c' is equal to 1.6; and''.
       (b) Special Rule for Payment for Fiscal Year 2001.--
     Notwithstanding paragraph (5)(B)(ii)(V) of section 1886(d) of 
     the Social Security Act (42 U.S.C. 1395ww(d)(5)(B)(ii)(V)), 
     for purposes of making payments for subsection (d) hospitals 
     (as defined in paragraph (1)(B) of such section) with 
     indirect costs of medical education, the indirect teaching 
     adjustment factor referred to in paragraph (5)(B)(ii) of such 
     section shall be determined, for discharges occurring on or 
     after April 1, 2001, and before October 1, 2001, as if ``c'' 
     in paragraph (5)(B)(ii)(V) of such section equalled 1.66 
     rather than 1.54.
       (c) Conforming Amendment Relating to Determination of 
     Standardized Amount.--Section 1886(d)(2)(C)(i) (42 U.S.C. 
     1395ww(d)(2)(C)(i)) is amended by inserting ``or of section 
     302 of the Medicare, Medicaid, and SCHIP Benefits Improvement 
     and Protection Act of 2000'' after ``Balanced Budget 
     Refinement Act of 1999''.
       (d) Clerical Amendments.--Section 1886(d)(5)(B) (42 U.S.C. 
     1395ww(d)(5)(B)), as amended by subsection (a), is further 
     amended by moving the indentation of each of the following 2 
     ems to the left:
       (1) Clauses (ii), (v), and (vi).
       (2) Subclauses (I) (II), (III), (IV), (V), and (VII) of 
     clause (ii).
       (3) Subclauses (I) and (II) of clause (vi) and the flush 
     sentence at the end of such clause.

     SEC. 303. DECREASE IN REDUCTIONS FOR DISPROPORTIONATE SHARE 
                   HOSPITAL (DSH) PAYMENTS.

       (a) In General.--Section 1886(d)(5)(F)(ix) (42 U.S.C. 
     1395ww(d)(5)(F)(ix)) is amended--
       (1) in subclause (III), by striking ``each of'' and by 
     inserting ``and 2 percent, respectively'' after ``3 
     percent''; and
       (2) in subclause (IV), by striking ``4 percent'' and 
     inserting ``3 percent''.
       (b) Special Rule for Payment for Fiscal Year 2001.--
     Notwithstanding the amendment made by subsection (a)(1), for 
     purposes of making disproportionate share payments for 
     subsection (d) hospitals (as defined in section 1886(d)(1)(B) 
     of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B)) for 
     fiscal year 2001, the additional payment amount otherwise 
     determined under clause (ii) of section 1886(d)(5)(F) of the 
     Social Security Act (42 U.S.C. 1395ww(d)(5)(F))--
       (1) for discharges occurring on or after October 1, 2000, 
     and before April 1, 2001, shall be adjusted as provided by 
     clause (ix)(III) of such

[[Page 26932]]

     section as in effect on the day before the date of the 
     enactment of this Act; and
       (2) for discharges occurring on or after April 1, 2001, and 
     before October 1, 2001, shall, instead of being reduced by 3 
     percent as provided by clause (ix)(III) of such section as in 
     effect after the date of the enactment of this Act, be 
     reduced by 1 percent.
       (c) Conforming Amendments Relating to Determination of 
     Standardized Amount.--Section 1886(d)(2)(C)(iv) (42 U.S.C. 
     1395ww(d)(2)(C)(iv)), is amended--
       (1) by striking ``1989 or'' and inserting ``1989,''; and
       (2) by inserting ``, or the enactment of section 303 of the 
     Medicare, Medicaid, and SCHIP Benefits Improvement and 
     Protection Act of 2000'' after ``Omnibus Budget 
     Reconciliation Act of 1990''.
       (d) Technical Amendment.--
       (1) In general.--Section 1886(d)(5)(F)(i) (42 U.S.C. 
     1395ww(d)(5)(F)(i)) is amended by striking ``and before 
     October 1, 1997,''.
       (2) Effective date.--The amendment made by paragraph (1) is 
     effective as if included in the enactment of BBA.
       (e) Reference to Changes in DSH for Rural Hospitals.--For 
     additional changes in the DSH program for rural hospitals, 
     see section 211.

     SEC. 304. WAGE INDEX IMPROVEMENTS.

       (a) Duration of Wage Index Reclassification; Use of 3-Year 
     Wage Data.--Section 1886(d)(10)(D) (42 U.S.C. 
     1395ww(d)(10)(D)) is amended by adding at the end the 
     following new clauses:
       ``(v) Any decision of the Board to reclassify a subsection 
     (d) hospital for purposes of the adjustment factor described 
     in subparagraph (C)(i)(II) for fiscal year 2001 or any fiscal 
     year thereafter shall be effective for a period of 3 fiscal 
     years, except that the Secretary shall establish procedures 
     under which a subsection (d) hospital may elect to terminate 
     such reclassification before the end of such period.
       ``(vi) Such guidelines shall provide that, in making 
     decisions on applications for reclassification for the 
     purposes described in clause (v) for fiscal year 2003 and any 
     succeeding fiscal year, the Board shall base any comparison 
     of the average hourly wage for the hospital with the average 
     hourly wage for hospitals in an area on--
       ``(I) an average of the average hourly wage amount for the 
     hospital from the most recently published hospital wage 
     survey data of the Secretary (as of the date on which the 
     hospital applies for reclassification) and such amount from 
     each of the two immediately preceding surveys; and
       ``(II) an average of the average hourly wage amount for 
     hospitals in such area from the most recently published 
     hospital wage survey data of the Secretary (as of the date on 
     which the hospital applies for reclassification) and such 
     amount from each of the two immediately preceding surveys.''.
       (b) Process To Permit Statewide Wage Index Calculation and 
     Application.--
       (1) In general.--The Secretary of Health and Human Services 
     shall establish a process (based on the voluntary process 
     utilized by the Secretary of Health and Human Services under 
     section 1848 of the Social Security Act (42 U.S.C. 1395w-4) 
     for purposes of computing and applying a statewide geographic 
     adjustment factor) under which an appropriate statewide 
     entity may apply to have all the geographic areas in a State 
     treated as a single geographic area for purposes of computing 
     and applying the area wage index under section 1886(d)(3)(E) 
     of such Act (42 U.S.C. 1395ww(d)(3)(E)). Such process shall 
     be established by October 1, 2001, for reclassifications 
     beginning in fiscal year 2003.
       (2) Prohibition on individual hospital reclassification.--
     Notwithstanding any other provision of law, if the Secretary 
     applies a statewide geographic wage index under paragraph (1) 
     with respect to a State, any application submitted by a 
     hospital in that State under section 1886(d)(10) of the 
     Social Security Act (42 U.S.C. 1395ww(d)(10)) for geographic 
     reclassification shall not be considered.
       (c) Collection of Information on Occupational Mix.--
       (1) In general.--The Secretary of Health and Human Services 
     shall provide for the collection of data every 3 years on 
     occupational mix for employees of each subsection (d) 
     hospital (as defined in section 1886(d)(1)(D) of the Social 
     Security Act (42 U.S.C. 1395ww(d)(1)(D))) in the provision of 
     inpatient hospital services, in order to construct an 
     occupational mix adjustment in the hospital area wage index 
     applied under section 1886(d)(3)(E) of such Act (42 U.S.C. 
     1395ww(d)(3)(E)).
       (2) Application.--The third sentence of section 
     1886(d)(3)(E) (42 U.S.C. 1395ww(d)(3)(E)) is amended by 
     striking ``To the extent determined feasible by the 
     Secretary, such survey shall measure'' and inserting ``Not 
     less often than once every 3 years the Secretary (through 
     such survey or otherwise) shall measure''.
       (3) Effective date.--By not later than September 30, 2003, 
     for application beginning October 1, 2004, the Secretary 
     shall first complete--
       (A) the collection of data under paragraph (1); and
       (B) the measurement under the third sentence of section 
     1886(d)(3)(E), as amended by paragraph (2).

     SEC. 305. PAYMENT FOR INPATIENT SERVICES OF REHABILITATION 
                   HOSPITALS.

       (a) Assistance With Administrative Costs Associated With 
     Completion of Patient Assessment.--Section 1886(j)(3)(B) (42 
     U.S.C. 1395ww(j)(3)(B)) is amended by striking ``98 percent'' 
     and inserting ``98 percent for fiscal year 2001 and 100 
     percent for fiscal year 2002''.
       (b) Election To Apply Full Prospective Payment Rate Without 
     Phase-in.--
       (1) In general.--Paragraph (1) of section 1886(j) (42 
     U.S.C. 1395ww(j)) is amended--
       (A) in subparagraph (A), by inserting ``other than a 
     facility making an election under subparagraph (F)'' before 
     ``in a cost reporting period'';
       (B) in subparagraph (B), by inserting ``or, in the case of 
     a facility making an election under subparagraph (F), for any 
     cost reporting period described in such subparagraph,'' after 
     ``2002,''; and
       (C) by adding at the end the following new subparagraph:
       ``(F) Election to apply full prospective payment system.--A 
     rehabilitation facility may elect, not later than 30 days 
     before its first cost reporting period for which the payment 
     methodology under this subsection applies to the facility, to 
     have payment made to the facility under this subsection under 
     the provisions of subparagraph (B) (rather than subparagraph 
     (A)) for each cost reporting period to which such payment 
     methodology applies.''.
       (2) Clarification.--Paragraph (3)(B) of such section is 
     amended by inserting ``but not taking into account any 
     payment adjustment resulting from an election permitted under 
     paragraph (1)(F)'' after ``paragraphs (4) and (6)''.
       (c) Effective Date.--The amendments made by this section 
     take effect as if included in the enactment of BBA.

     SEC. 306. PAYMENT FOR INPATIENT SERVICES OF PSYCHIATRIC 
                   HOSPITALS.

       With respect to hospitals described in clause (i) of 
     section 1886(d)(1)(B) of the Social Security Act (42 U.S.C. 
     1395ww(d)(1)(B)) and psychiatric units described in the 
     matter following clause (v) of such section, in making 
     incentive payments to such hospitals under section 
     1886(b)(1)(A) of such Act (42 U.S.C. 1395ww(b)(1)(A)) for 
     cost reporting periods beginning on or after October 1, 2000, 
     and before October 1, 2001, the Secretary of Health and Human 
     Services, in clause (ii) of such section, shall substitute 
     ``3 percent'' for ``2 percent''.

     SEC. 307. PAYMENT FOR INPATIENT SERVICES OF LONG-TERM CARE 
                   HOSPITALS.

       (a) Increased Target Amounts and Caps for Long-Term Care 
     Hospitals Before Implementation of the Prospective Payment 
     System.--
       (1) In general.--Section 1886(b)(3) (42 U.S.C. 
     1395ww(b)(3)) is amended--
       (A) in subparagraph (H)(ii)(III), by inserting ``subject to 
     subparagraph (J),'' after ``2002,''; and
       (B) by adding at the end the following new subparagraph:
       ``(J) For cost reporting periods beginning during fiscal 
     year 2001, for a hospital described in subsection 
     (d)(1)(B)(iv)--
       ``(i) the limiting or cap amount otherwise determined under 
     subparagraph (H) shall be increased by 2 percent; and
       ``(ii) the target amount otherwise determined under 
     subparagraph (A) shall be increased by 25 percent (subject to 
     the limiting or cap amount determined under subparagraph (H), 
     as increased by clause (i)).''.
       (2) Application.--The amendments made by subsection (a) and 
     by section 122 of BBRA (113 Stat. 1501A-331) shall not be 
     taken into account in the development and implementation of 
     the prospective payment system under section 123 of BBRA (113 
     Stat. 1501A-331).
       (b) Implementation of Prospective Payment System for Long-
     Term Care Hospitals.--
       (1) Modification of requirement.--In developing the 
     prospective payment system for payment for inpatient hospital 
     services provided in long-term care hospitals described in 
     section 1886(d)(1)(B)(iv) of the Social Security Act (42 
     U.S.C. 1395ww(d)(1)(B)(iv)) under the medicare program under 
     title XVIII of such Act required under section 123 of BBRA, 
     the Secretary of Health and Human Services shall examine the 
     feasibility and the impact of basing payment under such a 
     system on the use of existing (or refined) hospital 
     diagnosis-related groups (DRGs) that have been modified to 
     account for different resource use of long-term care hospital 
     patients as well as the use of the most recently available 
     hospital discharge data. The Secretary shall examine and may 
     provide for appropriate adjustments to the long-term hospital 
     payment system, including adjustments to DRG weights, area 
     wage adjustments, geographic reclassification, outliers, 
     updates, and a disproportionate share adjustment consistent 
     with section 1886(d)(5)(F) of the Social Security Act (42 
     U.S.C. 1395ww(d)(5)(F)).
       (2) Default implementation of system based on existing drg 
     methodology.--If the Secretary is unable to implement the 
     prospective payment system under section 123 of the BBRA by 
     October 1, 2002, the Secretary shall implement a prospective 
     payment system for such hospitals that bases payment under 
     such a system using existing hospital diagnosis-related 
     groups (DRGs), modified where feasible to account for 
     resource use of long-term care hospital patients using the 
     most recently available hospital discharge data for such 
     services furnished on or after that date.

 Subtitle B--Adjustments to PPS Payments for Skilled Nursing Facilities

     SEC. 311. ELIMINATION OF REDUCTION IN SKILLED NURSING 
                   FACILITY (SNF) MARKET BASKET UPDATE IN 2001.

       (a) In General.--Section 1888(e)(4)(E)(ii) (42 U.S.C. 
     1395yy(e)(4)(E)(ii)) is amended--

[[Page 26933]]

       (1) by redesignating subclauses (II) and (III) as 
     subclauses (III) and (IV), respectively;
       (2) in subclause (III), as so redesignated--
       (A) by striking ``each of fiscal years 2001 and 2002'' and 
     inserting ``each of fiscal years 2002 and 2003''; and
       (B) by striking ``minus 1 percentage point'' and inserting 
     ``minus 0.5 percentage points''; and
       (3) by inserting after subclause (I) the following new 
     subclause:

       ``(II) for fiscal year 2001, the rate computed for the 
     previous fiscal year increased by the skilled nursing 
     facility market basket percentage change for the fiscal 
     year;''.

       (b) Special Rule for Payment for Fiscal Year 2001.--
     Notwithstanding the amendments made by subsection (a), for 
     purposes of making payments for covered skilled nursing 
     facility services under section 1888(e) of the Social 
     Security Act (42 U.S.C. 1395yy(e)) for fiscal year 2001, the 
     Federal per diem rate referred to in paragraph (4)(E)(ii) of 
     such section--
       (1) for the period beginning on October 1, 2000, and ending 
     on March 31, 2001, shall be the rate determined in accordance 
     with the law as in effect on the day before the date of the 
     enactment of this Act; and
       (2) for the period beginning on April 1, 2001, and ending 
     on September 30, 2001, shall be the rate that would have been 
     determined under such section if ``plus 1 percentage point'' 
     had been substituted for ``minus 1 percentage point'' under 
     subclause (II) of such paragraph (as in effect on the day 
     before the date of the enactment of this Act).
       (c) Relation to Temporary Increase in BBRA.--The increases 
     provided under section 101 of BBRA (113 Stat. 1501A-325) 
     shall be in addition to any increase resulting from the 
     amendments made by subsection (a).
       (d) GAO Report on Adequacy of SNF Payment Rates.--Not later 
     than July 1, 2002, the Comptroller General of the United 
     States shall submit to Congress a report on the adequacy of 
     medicare payment rates to skilled nursing facilities and the 
     extent to which medicare contributes to the financial 
     viability of such facilities. Such report shall take into 
     account the role of private payors, medicaid, and case mix on 
     the financial performance of these facilities, and shall 
     include an analysis (by specific RUG classification) of the 
     number and characteristics of such facilities.
       (e) HCFA Study of Classification Systems for SNF 
     Residents.--
       (1) Study.--The Secretary of Health and Human Services 
     shall conduct a study of the different systems for 
     categorizing patients in medicare skilled nursing facilities 
     in a manner that accounts for the relative resource 
     utilization of different patient types.
       (2) Report.--Not later than January 1, 2005, the Secretary 
     shall submit to Congress a report on the study conducted 
     under subsection (a). Such report shall include such 
     recommendations regarding changes in law as may be 
     appropriate.

     SEC. 312. INCREASE IN NURSING COMPONENT OF PPS FEDERAL RATE.

       (a) In General.--The Secretary of Health and Human Services 
     shall increase by 16.66 percent the nursing component of the 
     case-mix adjusted Federal prospective payment rate specified 
     in Tables 3 and 4 of the final rule published in the Federal 
     Register by the Health Care Financing Administration on July 
     31, 2000 (65 Fed. Reg. 46770) and as subsequently updated, 
     effective for services furnished on or after April 1, 2001, 
     and before October 1, 2002.
       (b) GAO Audit of Nursing Staff Ratios.--
       (1) Audit.--The Comptroller General of the United States 
     shall conduct an audit of nursing staffing ratios in a 
     representative sample of medicare skilled nursing facilities. 
     Such sample shall cover selected States and shall include 
     broad representation with respect to size, ownership, 
     location, and medicare volume. Such audit shall include an 
     examination of payroll records and medicaid cost reports of 
     individual facilities.
       (2) Report.--Not later than August 1, 2002, the Comptroller 
     General shall submit to Congress a report on the audits 
     conducted under paragraph (1). Such report shall include an 
     assessment of the impact of the increased payments under this 
     subtitle on increased nursing staff ratios and shall make 
     recommendations as to whether increased payments under 
     subsection (a) should be continued.

     SEC. 313. APPLICATION OF SNF CONSOLIDATED BILLING REQUIREMENT 
                   LIMITED TO PART A COVERED STAYS.

       (a) In General.--Section 1862(a)(18) (42 U.S.C. 
     1395y(a)(18)) is amended by striking ``or of a part of a 
     facility that includes a skilled nursing facility (as 
     determined under regulations),'' and inserting ``during a 
     period in which the resident is provided covered post-
     hospital extended care services (or, for services described 
     in section 1861(s)(2)(D), which are furnished to such an 
     individual without regard to such period),''.
       (b) Conforming Amendments.--(1) Section 1842(b)(6)(E) (42 
     U.S.C. 1395u(b)(6)(E)) is amended--
       (A) by inserting ``by, or under arrangements made by, a 
     skilled nursing facility'' after ``furnished'';
       (B) by striking ``or of a part of a facility that includes 
     a skilled nursing facility (as determined under 
     regulations)''; and
       (C) by striking ``(without regard to whether or not the 
     item or service was furnished by the facility, by others 
     under arrangement with them made by the facility, under any 
     other contracting or consulting arrangement, or otherwise)''.
       (2) Section 1842(t) (42 U.S.C. 1395u(t)) is amended by 
     striking ``by a physician'' and ``or of a part of a facility 
     that includes a skilled nursing facility (as determined under 
     regulations),''.
       (3) Section 1866(a)(1)(H)(ii)(I) (42 U.S.C. 
     1395cc(a)(1)(H)(ii)(I)) is amended by inserting after ``who 
     is a resident of the skilled nursing facility'' the 
     following: ``during a period in which the resident is 
     provided covered post-hospital extended care services (or, 
     for services described in section 1861(s)(2)(D), that are 
     furnished to such an individual without regard to such 
     period)''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall apply to services furnished on or after January 
     1, 2001.
       (d) Oversight.--The Secretary of Health and Human Services, 
     through the Office of the Inspector General in the Department 
     of Health and Human Services or otherwise, shall monitor 
     payments made under part B of the title XVIII of the Social 
     Security Act for items and services furnished to residents of 
     skilled nursing facilities during a time in which the 
     residents are not being provided medicare covered post-
     hospital extended care services to ensure that there is not 
     duplicate billing for services or excessive services 
     provided.

     SEC. 314. ADJUSTMENT OF REHABILITATION RUGS TO CORRECT 
                   ANOMALY IN PAYMENT RATES.

       (a) Adjustment for Rehabilitation RUGs.--
       (1) In general.--For purposes of computing payments for 
     covered skilled nursing facility services under paragraph (1) 
     of section 1888(e) of the Social Security Act (42 U.S.C. 
     1395yy(e)) for such services furnished on or after April 1, 
     2001, and before the date described in section 101(c)(2) of 
     BBRA (113 Stat. 1501A-324), the Secretary of Health and Human 
     Services shall increase by 6.7 percent the adjusted Federal 
     per diem rate otherwise determined under paragraph (4) of 
     such section (but for this section) for covered skilled 
     nursing facility services for RUG-III rehabilitation groups 
     described in paragraph (2) furnished to an individual during 
     the period in which such individual is classified in such a 
     RUG-III category.
       (2) Rehabilitation groups described.--The RUG-III 
     rehabilitation groups for which the adjustment described in 
     paragraph (1) applies are RUC, RUB, RUA, RVC, RVB, RVA, RHC, 
     RHB, RHA, RMC, RMB, RMA, RLB, and RLA, as specified in Tables 
     3 and 4 of the final rule published in the Federal Register 
     by the Health Care Financing Administration on July 31, 2000 
     (65 Fed. Reg. 46770).
       (b) Correction With Respect to Rehabilitation RUGs.--
       (1) In general.--Section 101(b) of BBRA (113 Stat. 1501A-
     324) is amended by striking ``CA1, RHC, RMC, and RMB'' and 
     inserting ``and CA1''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to services furnished on or after April 1, 2001.
       (c) Review by Office of Inspector General.--The Inspector 
     General of the Department of Health and Human Services shall 
     review the medicare payment structure for services classified 
     within rehabilitation resource utilization groups (RUGs) (as 
     in effect after the date of the enactment of the BBRA) to 
     assess whether payment incentives exist for the delivery of 
     inadequate care. Not later than October 1, 2001, the 
     Inspector General shall submit to Congress a report on such 
     review.

     SEC. 315. ESTABLISHMENT OF PROCESS FOR GEOGRAPHIC 
                   RECLASSIFICATION.

       (a) In General.--The Secretary of Health and Human Services 
     may establish a procedure for the geographic reclassification 
     of a skilled nursing facility for purposes of payment for 
     covered skilled nursing facility services under the 
     prospective payment system established under section 1888(e) 
     of the Social Security Act (42 U.S.C. 1395yy(e)). Such 
     procedure may be based upon the method for geographic 
     reclassifications for inpatient hospitals established under 
     section 1886(d)(10) of the Social Security Act (42 U.S.C. 
     1395ww(d)(10)).
       (b) Requirement for Skilled Nursing Facility Wage Data.--In 
     no case may the Secretary implement the procedure under 
     subsection (a) before such time as the Secretary has 
     collected data necessary to establish an area wage index for 
     skilled nursing facilities based on wage data from such 
     facilities.

                        Subtitle C--Hospice Care

     SEC. 321. 5 PERCENT INCREASE IN PAYMENT BASE.

       (a) In General.--Section 1814(i)(1)(C)(ii)(VI) (42 U.S.C. 
     1395f(i)(1)(C)(ii)(VI)) is amended by inserting ``, plus, in 
     the case of fiscal year 2001, 5.0 percentage points'' before 
     the semicolon at the end.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to hospice care furnished on or after April 1, 
     2001. In applying clause (ii) of section 1814(i)(1)(C) of the 
     Social Security Act (42 U.S.C. 1395f(i)(1)(C)) beginning with 
     fiscal year 2002, the payment rates in effect under such 
     section during the period beginning on April 1, 2001, and 
     ending on September 30, shall be treated as the payment rates 
     in effect during fiscal year 2001.
       (c) No Effect on BBRA Temporary Increase.--The provisions 
     of this section shall have no effect on the application of 
     section 131 of BBRA.
       (d) Application of Wage Index.--Notwithstanding section 
     1814(i) of the Social Security

[[Page 26934]]

     Act (42 U.S.C. 1395f(i)), the Secretary of Health and Human 
     Services shall use 1.0043 as the hospice wage index value for 
     the Wichita, Kansas Metropolitan Statistical Area in 
     calculating payments under such section for a hospice program 
     providing hospice care in such area during fiscal year 2000. 
     The Secretary may provide for an appropriate timely lump sum 
     payment to reflect the application of the previous sentence.
       (e) Technical Amendment.--Section 1814(a)(7)(A)(ii) (42 
     U.S.C. 1395f(a)(7)(A)(ii)) is amended by striking the period 
     at the end and inserting a semicolon.

     SEC. 322. CLARIFICATION OF PHYSICIAN CERTIFICATION.

       (a) Certification Based on Normal Course of Illness.--
       (1) In general.--Section 1814(a) (42 U.S.C. 1395f(a)) is 
     amended by adding at the end the following new sentence: 
     ``The certification regarding terminal illness of an 
     individual under paragraph (7) shall be based on the 
     physician's or medical director's clinical judgment regarding 
     the normal course of the individual's illness.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to certifications made on or after the date of 
     the enactment of this Act.
       (b) Study and Report on Physician Certification Requirement 
     for Hospice Benefits.--
       (1) Study.--The Secretary of Health and Human Services 
     shall conduct a study to examine the appropriateness of the 
     certification regarding terminal illness of an individual 
     under section 1814(a)(7) of the Social Security Act (42 
     U.S.C. 1395f(a)(7)) that is required in order for such 
     individual to receive hospice benefits under the medicare 
     program under title XVIII of such Act. In conducting such 
     study, the Secretary shall take into account the effect of 
     the amendment made by subsection (a).
       (2) Report.--Not later than 2 years after the date of the 
     enactment of this Act, the Secretary of Health and Human 
     Services shall submit to Congress a report on the study 
     conducted under paragraph (1), together with any 
     recommendations for legislation that the Secretary deems 
     appropriate.

     SEC. 323. MEDPAC REPORT ON ACCESS TO, AND USE OF, HOSPICE 
                   BENEFIT.

       (a) In General.--The Medicare Payment Advisory Commission 
     shall conduct a study to examine the factors affecting the 
     use of hospice benefits under the medicare program under 
     title XVIII of the Social Security Act, including a delay in 
     the time (relative to death) of entry into a hospice program, 
     and differences in such use between urban and rural hospice 
     programs and based upon the presenting condition of the 
     patient.
       (b) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Commission shall submit to 
     Congress a report on the study conducted under subsection 
     (a), together with any recommendations for legislation that 
     the Commission deems appropriate.

                      Subtitle D--Other Provisions

     SEC. 331. RELIEF FROM MEDICARE PART A LATE ENROLLMENT PENALTY 
                   FOR GROUP BUY-IN FOR STATE AND LOCAL RETIREES.

       (a) In General.--Section 1818 (42 U.S.C. 1395i-2) is 
     amended--
       (1) in subsection (c)(6), by inserting before the semicolon 
     at the end the following: ``and shall be subject to reduction 
     in accordance with subsection (d)(6)''; and
       (2) by adding at the end of subsection (d) the following 
     new paragraph:
       ``(6)(A) In the case where a State, a political subdivision 
     of a State, or an agency or instrumentality of a State or 
     political subdivision thereof determines to pay, for the life 
     of each individual, the monthly premiums due under paragraph 
     (1) on behalf of each of the individuals in a qualified State 
     or local government retiree group who meets the conditions of 
     subsection (a), the amount of any increase otherwise 
     applicable under section 1839(b) (as applied and modified by 
     subsection (c)(6) of this section) with respect to the 
     monthly premium for benefits under this part for an 
     individual who is a member of such group shall be reduced by 
     the total amount of taxes paid under section 3101(b) of the 
     Internal Revenue Code of 1986 by such individual and under 
     section 3111(b) by the employers of such individual on behalf 
     of such individual with respect to employment (as defined in 
     section 3121(b) of such Code).
       ``(B) For purposes of this paragraph, the term `qualified 
     State or local government retiree group' means all of the 
     individuals who retire prior to a specified date that is 
     before January 1, 2002, from employment in 1 or more 
     occupations or other broad classes of employees of--
       ``(i) the State;
       ``(ii) a political subdivision of the State; or
       ``(iii) an agency or instrumentality of the State or 
     political subdivision of the State.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to premiums for months beginning with January 1, 
     2002.

                TITLE IV--PROVISIONS RELATING TO PART B

                Subtitle A--Hospital Outpatient Services

     SEC. 401. REVISION OF HOSPITAL OUTPATIENT PPS PAYMENT UPDATE.

       (a) In General.--Section 1833(t)(3)(C)(iii) (42 U.S.C. 
     1395l(t)(3)(C)(iii)) is amended by striking ``in each of 
     2000, 2001, and 2002'' and inserting ``in each of 2000 and 
     2002''.
       (b) Adjustment for Case Mix Changes.--
       (1) In general.--Section 1833(t)(3)(C) (42 U.S.C. 
     1395l(t)(3)(C)) is amended--
       (A) by redesignating clause (iii) as clause (iv); and
       (B) by inserting after clause (ii) the following new 
     clause:
       ``(iii) Adjustment for service mix changes.--Insofar as the 
     Secretary determines that the adjustments for service mix 
     under paragraph (2) for a previous year (or estimates that 
     such adjustments for a future year) did (or are likely to) 
     result in a change in aggregate payments under this 
     subsection during the year that are a result of changes in 
     the coding or classification of covered OPD services that do 
     not reflect real changes in service mix, the Secretary may 
     adjust the conversion factor computed under this subparagraph 
     for subsequent years so as to eliminate the effect of such 
     coding or classification changes.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall take effect as if included in the enactment of BBA.
       (c) Special Rule for Payment for 2001.--Notwithstanding the 
     amendment made by subsection (a), for purposes of making 
     payments under section 1833(t) of the Social Security Act (42 
     U.S.C. 1395l(t)) for covered OPD services furnished during 
     2001, the medicare OPD fee schedule amount under such 
     section--
       (1) for services furnished on or after January 1, 2001, and 
     before April 1, 2001, shall be the medicare OPD fee schedule 
     amount for 2001 as determined under the provisions of law in 
     effect on the day before the date of the enactment of this 
     Act; and
       (2) for services furnished on or after April 1, 2001, and 
     before January 1, 2002, shall be the fee schedule amount (as 
     determined taking into account the amendment made by 
     subsection (a)), increased by a transitional percentage 
     allowance equal to 0.32 percent (to account for the timing of 
     implementation of the full market basket update).

     SEC. 402. CLARIFYING PROCESS AND STANDARDS FOR DETERMINING 
                   ELIGIBILITY OF DEVICES FOR PASS-THROUGH 
                   PAYMENTS UNDER HOSPITAL OUTPATIENT PPS.

       (a) In General.--Section 1833(t)(6) (42 U.S.C. 1395l(t)(6)) 
     is amended--
       (1) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively; and
       (2) by striking subparagraph (B) and inserting the 
     following new subparagraphs:
       ``(B) Use of categories in determining eligibility of a 
     device for pass-through payments.--The following provisions 
     apply for purposes of determining whether a medical device 
     qualifies for additional payments under clause (ii) or (iv) 
     of subparagraph (A):
       ``(i) Establishment of initial categories.--

       ``(I) In general.--The Secretary shall initially establish 
     under this clause categories of medical devices based on type 
     of device by April 1, 2001. Such categories shall be 
     established in a manner such that each medical device that 
     meets the requirements of clause (ii) or (iv) of subparagraph 
     (A) as of January 1, 2001, is included in such a category and 
     no such device is included in more than one category. For 
     purposes of the preceding sentence, whether a medical device 
     meets such requirements as of such date shall be determined 
     on the basis of the program memoranda issued before such 
     date.
       ``(II) Authorization of implementation other than through 
     regulations.--The categories may be established under this 
     clause by program memorandum or otherwise, after consultation 
     with groups representing hospitals, manufacturers of medical 
     devices, and other affected parties.

       ``(ii) Establishing criteria for additional categories.--

       ``(I) In general.--The Secretary shall establish criteria 
     that will be used for creation of additional categories 
     (other than those established under clause (i)) through 
     rulemaking (which may include use of an interim final rule 
     with comment period).
       ``(II) Standard.--Such categories shall be established 
     under this clause in a manner such that no medical device is 
     described by more than one category. Such criteria shall 
     include a test of whether the average cost of devices that 
     would be included in a category and are in use at the time 
     the category is established is not insignificant, as 
     described in subparagraph (A)(iv)(II).
       ``(III) Deadline.--Criteria shall first be established 
     under this clause by July 1, 2001. The Secretary may 
     establish in compelling circumstances categories under this 
     clause before the date such criteria are established.
       ``(IV) Adding categories.--The Secretary shall promptly 
     establish a new category of medical devices under this clause 
     for any medical device that meets the requirements of 
     subparagraph (A)(iv) and for which none of the categories in 
     effect (or that were previously in effect) is appropriate.

       ``(iii) Period for which category is in effect.--A category 
     of medical devices established under clause (i) or (ii) shall 
     be in effect for a period of at least 2 years, but not more 
     than 3 years, that begins--

       ``(I) in the case of a category established under clause 
     (i), on the first date on which payment was made under this 
     paragraph for any device described by such category 
     (including payments made during the period before April 1, 
     2001); and
       ``(II) in the case of any other category, on the first date 
     on which payment is made under this paragraph for any medical 
     device that is described by such category.

       ``(iv) Requirements treated as met.--A medical device shall 
     be treated as meeting the

[[Page 26935]]

     requirements of subparagraph (A)(iv), regardless of whether 
     the device meets the requirement of subclause (I) of such 
     subparagraph, if--

       ``(I) the device is described by a category established and 
     in effect under clause (i); or
       ``(II) the device is described by a category established 
     and in effect under clause (ii) and an application under 
     section 515 of the Federal Food, Drug, and Cosmetic Act has 
     been approved with respect to the device, or the device has 
     been cleared for market under section 510(k) of such Act, or 
     the device is exempt from the requirements of section 510(k) 
     of such Act pursuant to subsection (l) or (m) of section 510 
     of such Act or section 520(g) of such Act.

     Nothing in this clause shall be construed as requiring an 
     application or prior approval (other than that described in 
     subclause (II)) in order for a covered device described by a 
     category to qualify for payment under this paragraph.
       ``(C) Limited period of payment.--
       ``(i) Drugs and biologicals.--The payment under this 
     paragraph with respect to a drug or biological shall only 
     apply during a period of at least 2 years, but not more than 
     3 years, that begins--

       ``(I) on the first date this subsection is implemented in 
     the case of a drug or biological described in clause (i), 
     (ii), or (iii) of subparagraph (A) and in the case of a drug 
     or biological described in subparagraph (A)(iv) and for which 
     payment under this part is made as an outpatient hospital 
     service before such first date; or
       ``(II) in the case of a drug or biological described in 
     subparagraph (A)(iv) not described in subclause (I), on the 
     first date on which payment is made under this part for the 
     drug or biological as an outpatient hospital service.

       ``(ii) Medical devices.--Payment shall be made under this 
     paragraph with respect to a medical device only if such 
     device--

       ``(I) is described by a category of medical devices 
     established and in effect under subparagraph (B); and
       ``(II) is provided as part of a service (or group of 
     services) paid for under this subsection and provided during 
     the period for which such category is in effect under such 
     subparagraph.''.

       (b) Conforming Amendments.--Section 1833(t) (42 U.S.C. 
     1395l(t)) is further amended--
       (1) in paragraph (6)(A)(iv)(II), by striking ``the cost of 
     the device, drug, or biological'' and inserting ``the cost of 
     the drug or biological or the average cost of the category of 
     devices'';
       (2) in paragraph (6)(D) (as redesignated by subsection 
     (a)(1)), by striking ``subparagraph (D)(iii)'' in the matter 
     preceding clause (i) and inserting ``subparagraph (E)(iii)''; 
     and
       (3) in paragraph (12)(E), by striking ``additional payments 
     (consistent with paragraph (6)(B))'' and inserting 
     ``additional payments, the determination and deletion of 
     initial and new categories (consistent with subparagraphs (B) 
     and (C) of paragraph (6))''.
       (c) Effective Date.--The amendments made by this section 
     take effect on the date of the enactment of this Act.
       (d) Transition.--
       (1) In general.--In the case of a medical device provided 
     as part of a service (or group of services) furnished during 
     the period before initial categories are implemented under 
     subparagraph (B)(i) of section 1833(t)(6) of the Social 
     Security Act (as amended by subsection (a)), payment shall be 
     made for such device under such section in accordance with 
     the provisions in effect before the date of the enactment of 
     this Act. In addition, beginning on the date that is 30 days 
     after the date of the enactment of this Act, payment shall be 
     made for such a device that is not included in a program 
     memorandum described in such subparagraph if the Secretary of 
     Health and Human Services determines that the device 
     (including a device that would have been included in such 
     program memoranda but for the requirement of subparagraph 
     (A)(iv)(I) of that section) is likely to be described by such 
     an initial category.
       (2) Application of current process.--Notwithstanding any 
     other provision of law, the Secretary shall continue to 
     accept applications with respect to medical devices under the 
     process established pursuant to paragraph (6) of section 
     1833(t) of the Social Security Act (as in effect on the day 
     before the date of the enactment of this Act) through 
     December 1, 2000, and any device--
       (A) with respect to which an application was submitted 
     (pursuant to such process) on or before such date; and
       (B) that meets the requirements of clause (ii) or (iv) of 
     subparagraph (A) of such paragraph (as determined pursuant to 
     such process),
     shall be treated as a device with respect to which an initial 
     category is required to be established under subparagraph 
     (B)(i) of such paragraph (as amended by subsection (a)(2)).

     SEC. 403. APPLICATION OF OPD PPS TRANSITIONAL CORRIDOR 
                   PAYMENTS TO CERTAIN HOSPITALS THAT DID NOT 
                   SUBMIT A 1996 COST REPORT.

       (a) In General.--Section 1833(t)(7)(F)(ii)(I) (42 U.S.C. 
     1395l(t)(7)(F)(ii)(I)) is amended by inserting ``(or in the 
     case of a hospital that did not submit a cost report for such 
     period, during the first subsequent cost reporting period 
     ending before 2001 for which the hospital submitted a cost 
     report)'' after ``1996''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as if included in the enactment of BBRA.

     SEC. 404. APPLICATION OF RULES FOR DETERMINING PROVIDER-BASED 
                   STATUS FOR CERTAIN ENTITIES.

       (a) Grandfather.--Notwithstanding any other provision of 
     law, effective October 1, 2000, for purposes of provider-
     based status under title XVIII of the Social Security Act--
       (1) any facility or organization that is treated as 
     provider-based in relation to a hospital or critical access 
     hospital under such title as of such date shall continue to 
     be treated as provider-based in relation to such hospital or 
     critical access hospital under such title until October 1, 
     2002; and
       (2) the requirements, limitations, and exclusions specified 
     in subsections (d), (e), (f), and (h) of section 413.65 of 
     title 42, Code of Federal Regulations, shall not apply to 
     such facility or organization in relation to such hospital or 
     critical access hospital until October 1, 2002.
       (b) Continuing Criteria for Meeting Geographic Location 
     Requirement.--Except as provided in subsection (a), in making 
     determinations of provider-based status on or after October 
     1, 2000, the following rules shall apply:
       (1) The facility or organization shall be treated as 
     satisfying any requirements and standards for geographic 
     location in relation to a hospital or a critical access 
     hospital if the facility or organization--
       (A) satisfies the requirements of section 413.65(d)(7) of 
     title 42, Code of Federal Regulations; or
       (B) is located not more than 35 miles from the main campus 
     of the hospital or critical access hospital.
       (2) The facility or organization shall be treated as 
     satisfying any of the requirements and standards for 
     geographic location in relation to a hospital or a critical 
     access hospital if the facility or organization is owned and 
     operated by a hospital or critical access hospital that--
       (A) is owned or operated by a unit of State or local 
     government, is a public or private nonprofit corporation that 
     is formally granted governmental powers by a unit of State or 
     local government, or is a private hospital that has a 
     contract with a State or local government that includes the 
     operation of clinics located off the main campus of the 
     hospital to assure access in a well-defined service area to 
     health care services for low-income individuals who are not 
     entitled to benefits under title XVIII (or medical assistance 
     under a State plan under title XIX) of the Social Security 
     Act; and
       (B) has a disproportionate share adjustment percentage (as 
     determined under section 1886(d)(5)(F) of such Act (42 U.S.C. 
     1395ww(d)(5)(F))) greater than 11.75 percent or is described 
     in clause (i)(II) of such section.
       (c) Temporary Criteria.--For purposes of title XVIII of the 
     Social Security Act, a facility or organization for which a 
     determination of provider-based status in relation to a 
     hospital or critical access hospital is requested on or after 
     October 1, 2000, and before October 1, 2002, shall be treated 
     as having provider-based status in relation to such a 
     hospital or a critical access hospital for any period before 
     a determination is made with respect to such status pursuant 
     to such request.
       (d) Definitions.--For purposes of this section, the terms 
     ``hospital'' and ``critical access hospital'' have the 
     meanings given such terms in subsections (e) and (mm)(1), 
     respectively, of section 1861 of the Social Security Act (42 
     U.S.C. 1395x).

     SEC. 405. TREATMENT OF CHILDREN'S HOSPITALS UNDER PROSPECTIVE 
                   PAYMENT SYSTEM.

       (a) In General.--Section 1833(t) (42 U.S.C. 1395l(t)) is 
     amended--
       (1) in the heading of paragraph (7)(D)(ii), by inserting 
     ``and children's hospitals'' after ``cancer hospitals''; and
       (2) in paragraphs (7)(D)(ii) and (11), by striking 
     ``section 1886(d)(1)(B)(v)'' and inserting ``clause (iii) or 
     (v) of section 1886(d)(1)(B)''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply as if included in the enactment of section 202 of 
     BBRA (113 Stat. 1501A-342).

     SEC. 406. INCLUSION OF TEMPERATURE MONITORED CRYOABLATION IN 
                   TRANSITIONAL PASS-THROUGH FOR CERTAIN MEDICAL 
                   DEVICES, DRUGS, AND BIOLOGICALS UNDER OPD PPS.

       (a) In General.--Section 1833(t)(6)(A)(ii) (42 U.S.C. 
     1395l(t)(6)(A)(ii)) is amended by inserting ``or temperature 
     monitored cryoablation'' after ``device of brachytherapy''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to devices furnished on or after April 1, 2001.

        Subtitle B--Provisions Relating to Physicians' Services

     SEC. 411. GAO STUDIES RELATING TO PHYSICIANS' SERVICES.

       (a) Study of Specialist Physicians' Services Furnished in 
     Physicians' Offices and Hospital Outpatient Department 
     Services.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study to examine the appropriateness of 
     furnishing in physicians' offices specialist physicians' 
     services (such as gastrointestinal endoscopic physicians' 
     services) which are ordinarily furnished in hospital 
     outpatient departments. In conducting this study, the 
     Comptroller General shall--
       (A) review available scientific and clinical evidence about 
     the safety of performing procedures in physicians' offices 
     and hospital outpatient departments;
       (B) assess whether resource-based practice expense relative 
     values established by the Secretary of Health and Human 
     Services under the medicare physician fee schedule under 
     section 1848 of the Social Security Act (42 U.S.C. 1395w-4) 
     for such specialist physicians' services furnished in 
     physicians' offices and hospital outpatient departments 
     create an incentive to furnish such services in physicians' 
     offices instead of hospital outpatient departments; and

[[Page 26936]]

       (C) assess the implications for access to care for medicare 
     beneficiaries if the medicare program were not to cover such 
     services in physicians' offices.
       (2) Report.--Not later than July 1, 2001, the Comptroller 
     General shall submit to Congress a report on such study and 
     include such recommendations as the Comptroller General 
     determines to be appropriate.
       (b) Study of the Resource-Based Practice Expense System.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study on the refinements to the practice 
     expense relative value units during the transition to a 
     resource-based practice expense system for physician payments 
     under the medicare program under title XVIII of the Social 
     Security Act. Such study shall examine how the Secretary of 
     Health and Human Services has accepted and used the practice 
     expense data submitted under section 212 of BBRA (113 Stat. 
     1501A-350).
       (2) Report.--Not later than July 1, 2001, the Comptroller 
     General shall submit to Congress a report on the study 
     conducted under paragraph (1) together with recommendations 
     regarding--
       (A) improvements in the process for acceptance and use of 
     practice expense data under section 212 of BBRA;
       (B) any change or adjustment that is appropriate to ensure 
     full access to a spectrum of care for beneficiaries under the 
     medicare program; and
       (C) the appropriateness of payments to physicians.

     SEC. 412. PHYSICIAN GROUP PRACTICE DEMONSTRATION.

       (a) In General.--Title XVIII is amended by inserting after 
     section 1866 the following new sections:


 ``demonstration of application of physician volume increases to group 
                               practices

       ``Sec. 1866A. (a) Demonstration Program Authorized.--
       ``(1) In general.--The Secretary shall conduct 
     demonstration projects to test and, if proven effective, 
     expand the use of incentives to health care groups 
     participating in the program under this title that--
       ``(A) encourage coordination of the care furnished to 
     individuals under the programs under parts A and B by 
     institutional and other providers, practitioners, and 
     suppliers of health care items and services;
       ``(B) encourage investment in administrative structures and 
     processes to ensure efficient service delivery; and
       ``(C) reward physicians for improving health outcomes.

     Such projects shall focus on the efficiencies of furnishing 
     health care in a group-practice setting as compared to the 
     efficiencies of furnishing health care in other health care 
     delivery systems.
       ``(2) Administration by contract.--Except as otherwise 
     specifically provided, the Secretary may administer the 
     program under this section in accordance with section 1866B.
       ``(3) Definitions.--For purposes of this section, terms 
     have the following meanings:
       ``(A) Physician.--Except as the Secretary may otherwise 
     provide, the term `physician' means any individual who 
     furnishes services which may be paid for as physicians' 
     services under this title.
       ``(B) Health care group.--The term `health care group' 
     means a group of physicians (as defined in subparagraph (A)) 
     organized at least in part for the purpose of providing 
     physicians' services under this title. As the Secretary finds 
     appropriate, a health care group may include a hospital and 
     any other individual or entity furnishing items or services 
     for which payment may be made under this title that is 
     affiliated with the health care group under an arrangement 
     structured so that such individual or entity participates in 
     a demonstration under this section and will share in any 
     bonus earned under subsection (d).
       ``(b) Eligibility Criteria.--
       ``(1) In general.--The Secretary is authorized to establish 
     criteria for health care groups eligible to participate in a 
     demonstration under this section, including criteria relating 
     to numbers of health care professionals in, and of patients 
     served by, the group, scope of services provided, and quality 
     of care.
       ``(2) Payment method.--A health care group participating in 
     the demonstration under this section shall agree with respect 
     to services furnished to beneficiaries within the scope of 
     the demonstration (as determined under subsection (c))--
       ``(A) to be paid on a fee-for-service basis; and
       ``(B) that payment with respect to all such services 
     furnished by members of the health care group to such 
     beneficiaries shall (where determined appropriate by the 
     Secretary) be made to a single entity.
       ``(3) Data reporting.--A health care group participating in 
     a demonstration under this section shall report to the 
     Secretary such data, at such times and in such format as the 
     Secretary requires, for purposes of monitoring and evaluation 
     of the demonstration under this section.
       ``(c) Patients Within Scope of Demonstration.--
       ``(1) In general.--The Secretary shall specify, in 
     accordance with this subsection, the criteria for identifying 
     those patients of a health care group who shall be considered 
     within the scope of the demonstration under this section for 
     purposes of application of subsection (d) and for assessment 
     of the effectiveness of the group in achieving the objectives 
     of this section.
       ``(2) Other criteria.--The Secretary may establish 
     additional criteria for inclusion of beneficiaries within a 
     demonstration under this section, which may include frequency 
     of contact with physicians in the group or other factors or 
     criteria that the Secretary finds to be appropriate.
       ``(3) Notice requirements.--In the case of each beneficiary 
     determined to be within the scope of a demonstration under 
     this section with respect to a specific health care group, 
     the Secretary shall ensure that such beneficiary is notified 
     of the incentives, and of any waivers of coverage or payment 
     rules, applicable to such group under such demonstration.
       ``(d) Incentives.--
       ``(1) Performance target.--The Secretary shall establish 
     for each health care group participating in a demonstration 
     under this section--
       ``(A) a base expenditure amount, equal to the average total 
     payments under parts A and B for patients served by the 
     health care group on a fee-for-service basis in a base period 
     determined by the Secretary; and
       ``(B) an annual per capita expenditure target for patients 
     determined to be within the scope of the demonstration, 
     reflecting the base expenditure amount adjusted for risk and 
     expected growth rates.
       ``(2) Incentive bonus.--The Secretary shall pay to each 
     participating health care group (subject to paragraph (4)) a 
     bonus for each year under the demonstration equal to a 
     portion of the medicare savings realized for such year 
     relative to the performance target.
       ``(3) Additional bonus for process and outcome 
     improvements.--At such time as the Secretary has established 
     appropriate criteria based on evidence the Secretary 
     determines to be sufficient, the Secretary shall also pay to 
     a participating health care group (subject to paragraph (4)) 
     an additional bonus for a year, equal to such portion as the 
     Secretary may designate of the saving to the program under 
     this title resulting from process improvements made by and 
     patient outcome improvements attributable to activities of 
     the group.
       ``(4) Limitation.--The Secretary shall limit bonus payments 
     under this section as necessary to ensure that the aggregate 
     expenditures under this title (inclusive of bonus payments) 
     with respect to patients within the scope of the 
     demonstration do not exceed the amount which the Secretary 
     estimates would be expended if the demonstration projects 
     under this section were not implemented.


        ``provisions for administration of demonstration program

       ``Sec. 1866B. (a) General Administrative Authority.--
       ``(1) Beneficiary eligibility.--Except as otherwise 
     provided by the Secretary, an individual shall only be 
     eligible to receive benefits under the program under section 
     1866A (in this section referred to as the `demonstration 
     program') if such individual--
       ``(A) is enrolled under the program under part B and 
     entitled to benefits under part A; and
       ``(B) is not enrolled in a Medicare+Choice plan under part 
     C, an eligible organization under a contract under section 
     1876 (or a similar organization operating under a 
     demonstration project authority), an organization with an 
     agreement under section 1833(a)(1)(A), or a PACE program 
     under section 1894.
       ``(2) Secretary's discretion as to scope of program.--The 
     Secretary may limit the implementation of the demonstration 
     program to--
       ``(A) a geographic area (or areas) that the Secretary 
     designates for purposes of the program, based upon such 
     criteria as the Secretary finds appropriate;
       ``(B) a subgroup (or subgroups) of beneficiaries or 
     individuals and entities furnishing items or services 
     (otherwise eligible to participate in the program), selected 
     on the basis of the number of such participants that the 
     Secretary finds consistent with the effective and efficient 
     implementation of the program;
       ``(C) an element (or elements) of the program that the 
     Secretary determines to be suitable for implementation; or
       ``(D) any combination of any of the limits described in 
     subparagraphs (A) through (C).
       ``(3) Voluntary receipt of items and services.--Items and 
     services shall be furnished to an individual under the 
     demonstration program only at the individual's election.
       ``(4) Agreements.--The Secretary is authorized to enter 
     into agreements with individuals and entities to furnish 
     health care items and services to beneficiaries under the 
     demonstration program.
       ``(5) Program standards and criteria.--The Secretary shall 
     establish performance standards for the demonstration program 
     including, as applicable, standards for quality of health 
     care items and services, cost-effectiveness, beneficiary 
     satisfaction, and such other factors as the Secretary finds 
     appropriate. The eligibility of individuals or entities for 
     the initial award, continuation, and renewal of agreements to 
     provide health care items and services under the program 
     shall be conditioned, at a minimum, on performance that meets 
     or exceeds such standards.
       ``(6) Administrative review of decisions affecting 
     individuals and entities furnishing services.--An individual 
     or entity furnishing services under the demonstration program 
     shall be entitled to a review by the program administrator 
     (or, if the Secretary has not contracted with a program 
     administrator, by the Secretary) of a decision not to enter 
     into, or to terminate, or not to renew, an agreement with the 
     entity to provide health care items or services under the 
     program.

[[Page 26937]]

       ``(7) Secretary's review of marketing materials.--An 
     agreement with an individual or entity furnishing services 
     under the demonstration program shall require the individual 
     or entity to guarantee that it will not distribute materials 
     that market items or services under the program without the 
     Secretary's prior review and approval.
       ``(8) Payment in full.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an individual or entity receiving payment from the Secretary 
     under a contract or agreement under the demonstration program 
     shall agree to accept such payment as payment in full, and 
     such payment shall be in lieu of any payments to which the 
     individual or entity would otherwise be entitled under this 
     title.
       ``(B) Collection of deductibles and coinsurance.--Such 
     individual or entity may collect any applicable deductible or 
     coinsurance amount from a beneficiary.
       ``(b) Contracts for Program Administration.--
       ``(1) In general.--The Secretary may administer the 
     demonstration program through a contract with a program 
     administrator in accordance with the provisions of this 
     subsection.
       ``(2) Scope of program administrator contracts.--The 
     Secretary may enter into such contracts for a limited 
     geographic area, or on a regional or national basis.
       ``(3) Eligible contractors.--The Secretary may contract for 
     the administration of the program with--
       ``(A) an entity that, under a contract under section 1816 
     or 1842, determines the amount of and makes payments for 
     health care items and services furnished under this title; or
       ``(B) any other entity with substantial experience in 
     managing the type of program concerned.
       ``(4) Contract award, duration, and renewal.--
       ``(A)  In general.--A contract under this subsection shall 
     be for an initial term of up to three years, renewable for 
     additional terms of up to three years.
       ``(B) Noncompetitive award and renewal for entities 
     administering part a or part b payments.--The Secretary may 
     enter or renew a contract under this subsection with an 
     entity described in paragraph (3)(A) without regard to the 
     requirements of section 5 of title 41, United States Code.
       ``(5) Applicability of federal acquisition regulation.--The 
     Federal Acquisition Regulation shall apply to program 
     administration contracts under this subsection.
       ``(6) Performance standards.--The Secretary shall establish 
     performance standards for the program administrator 
     including, as applicable, standards for the quality and cost-
     effectiveness of the program administered, and such other 
     factors as the Secretary finds appropriate. The eligibility 
     of entities for the initial award, continuation, and renewal 
     of program administration contracts shall be conditioned, at 
     a minimum, on performance that meets or exceeds such 
     standards.
       ``(7) Functions of program administrator.--A program 
     administrator shall perform any or all of the following 
     functions, as specified by the Secretary:
       ``(A) Agreements with entities furnishing health care items 
     and services.--Determine the qualifications of entities 
     seeking to enter or renew agreements to provide services 
     under the demonstration program, and as appropriate enter or 
     renew (or refuse to enter or renew) such agreements on behalf 
     of the Secretary.
       ``(B) Establishment of payment rates.--Negotiate or 
     otherwise establish, subject to the Secretary's approval, 
     payment rates for covered health care items and services.
       ``(C) Payment of claims or fees.--Administer payments for 
     health care items or services furnished under the program.
       ``(D) Payment of bonuses.--Using such guidelines as the 
     Secretary shall establish, and subject to the approval of the 
     Secretary, make bonus payments as described in subsection 
     (c)(2)(A)(ii) to entities furnishing items or services for 
     which payment may be made under the program.
       ``(E) Oversight.--Monitor the compliance of individuals and 
     entities with agreements under the program with the 
     conditions of participation.
       ``(F) Administrative review.--Conduct reviews of adverse 
     determinations specified in subsection (a)(6).
       ``(G) Review of marketing materials.--Conduct a review of 
     marketing materials proposed by an entity furnishing services 
     under the program.
       ``(H) Additional functions.--Perform such other functions 
     as the Secretary may specify.
       ``(8) Limitation of liability.--The provisions of section 
     1157(b) shall apply with respect to activities of contractors 
     and their officers, employees, and agents under a contract 
     under this subsection.
       ``(9) Information sharing.--Notwithstanding section 1106 
     and section 552a of title 5, United States Code, the 
     Secretary is authorized to disclose to an entity with a 
     program administration contract under this subsection such 
     information (including medical information) on individuals 
     receiving health care items and services under the program as 
     the entity may require to carry out its responsibilities 
     under the contract.
       ``(c) Rules Applicable to Both Program Agreements and 
     Program Administration Contracts.--
       ``(1) Records, reports, and audits.--The Secretary is 
     authorized to require entities with agreements to provide 
     health care items or services under the demonstration 
     program, and entities with program administration contracts 
     under subsection (b), to maintain adequate records, to afford 
     the Secretary access to such records (including for audit 
     purposes), and to furnish such reports and other materials 
     (including audited financial statements and performance data) 
     as the Secretary may require for purposes of implementation, 
     oversight, and evaluation of the program and of individuals' 
     and entities' effectiveness in performance of such agreements 
     or contracts.
       ``(2) Bonuses.--Notwithstanding any other provision of law, 
     but subject to subparagraph (B)(ii), the Secretary may make 
     bonus payments under the demonstration program from the 
     Federal Health Insurance Trust Fund and the Federal 
     Supplementary Medical Insurance Trust Fund in amounts that do 
     not exceed the amounts authorized under the program in 
     accordance with the following:
       ``(A) Payments to program administrators.--The Secretary 
     may make bonus payments under the program to program 
     administrators.
       ``(B) Payments to entities furnishing services.--
       ``(i) In general.--Subject to clause (ii), the Secretary 
     may make bonus payments to individuals or entities furnishing 
     items or services for which payment may be made under the 
     demonstration program, or may authorize the program 
     administrator to make such bonus payments in accordance with 
     such guidelines as the Secretary shall establish and subject 
     to the Secretary's approval.
       ``(ii) Limitations.--The Secretary may condition such 
     payments on the achievement of such standards related to 
     efficiency, improvement in processes or outcomes of care, or 
     such other factors as the Secretary determines to be 
     appropriate.
       ``(3) Antidiscrimination limitation.--The Secretary shall 
     not enter into an agreement with an entity to provide health 
     care items or services under the demonstration program, or 
     with an entity to administer the program, unless such entity 
     guarantees that it will not deny, limit, or condition the 
     coverage or provision of benefits under the program, for 
     individuals eligible to be enrolled under such program, based 
     on any health status-related factor described in section 
     2702(a)(1) of the Public Health Service Act.
       ``(d) Limitations on Judicial Review.--The following 
     actions and determinations with respect to the demonstration 
     program shall not be subject to review by a judicial or 
     administrative tribunal:
       ``(1) Limiting the implementation of the program under 
     subsection (a)(2).
       ``(2) Establishment of program participation standards 
     under subsection (a)(5) or the denial or termination of, or 
     refusal to renew, an agreement with an entity to provide 
     health care items and services under the program.
       ``(3) Establishment of program administration contract 
     performance standards under subsection (b)(6), the refusal to 
     renew a program administration contract, or the 
     noncompetitive award or renewal of a program administration 
     contract under subsection (b)(4)(B).
       ``(4) Establishment of payment rates, through negotiation 
     or otherwise, under a program agreement or a program 
     administration contract.
       ``(5) A determination with respect to the program (where 
     specifically authorized by the program authority or by 
     subsection (c)(2))--
       ``(A) as to whether cost savings have been achieved, and 
     the amount of savings; or
       ``(B) as to whether, to whom, and in what amounts bonuses 
     will be paid.
       ``(e) Application Limited to Parts A and B.--None of the 
     provisions of this section or of the demonstration program 
     shall apply to the programs under part C.
       ``(f) Reports to Congress.--Not later than two years after 
     the date of the enactment of this section, and biennially 
     thereafter for six years, the Secretary shall report to 
     Congress on the use of authorities under the demonstration 
     program. Each report shall address the impact of the use of 
     those authorities on expenditures, access, and quality under 
     the programs under this title.''.
       (b) GAO Report.--Not later than 2 years after the date on 
     which the demonstration project under section 1866A of the 
     Social Security Act, as added by subsection (a), is 
     implemented, the Comptroller General of the United States 
     shall submit to Congress a report on such demonstration 
     project. The report shall include such recommendations with 
     respect to changes to the demonstration project that the 
     Comptroller General determines appropriate.

     SEC. 413. STUDY ON ENROLLMENT PROCEDURES FOR GROUPS THAT 
                   RETAIN INDEPENDENT CONTRACTOR PHYSICIANS.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of the current medicare 
     enrollment process for groups that retain independent 
     contractor physicians with particular emphasis on hospital-
     based physicians, such as emergency department staffing 
     groups. In conducting the evaluation, the Comptroller General 
     shall consult with groups that retain independent contractor 
     physicians and shall--
       (1) review the issuance of individual medicare provider 
     numbers and the possible medicare program integrity 
     vulnerabilities of the current process;
       (2) review direct and indirect costs associated with the 
     current process incurred by the medicare program and groups 
     that retain independent contractor physicians;

[[Page 26938]]

       (3) assess the effect on program integrity by the 
     enrollment of groups that retain independent contractor 
     hospital-based physicians; and
       (4) develop suggested procedures for the enrollment of 
     these groups.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the study conducted under subsection 
     (a).

                       Subtitle C--Other Services

     SEC. 421. 1-YEAR EXTENSION OF MORATORIUM ON THERAPY CAPS; 
                   REPORT ON STANDARDS FOR SUPERVISION OF PHYSICAL 
                   THERAPY ASSISTANTS.

       (a) In General.--Section 1833(g)(4) (42 U.S.C. 1395l(g)(4)) 
     is amended by striking ``2000 and 2001.'' and inserting 
     ``2000, 2001, and 2002.''.
       (b) Conforming Amendment To Continue Focused Medical 
     Reviews of Claims During Moratorium Period.--Section 
     221(a)(2) of BBRA (113 Stat. 1501A-351) is amended by 
     striking ``(under the amendment made by paragraph (1)(B))''.
       (c) Study on Standards for Supervision of Physical 
     Therapist Assistants.--
       (1) Study.--The Secretary of Health and Human Services 
     shall conduct a study of the implications--
       (A) of eliminating the ``in the room'' supervision 
     requirement for medicare payment for services of physical 
     therapy assistants who are supervised by physical therapists; 
     and
       (B) of such requirement on the cap imposed under section 
     1833(g) of the Social Security Act (42 U.S.C. 1395l(g)) on 
     physical therapy services.
       (2) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the study conducted under paragraph (1).

     SEC. 422. UPDATE IN RENAL DIALYSIS COMPOSITE RATE.

       (a) Update.--
       (1) In general.--The last sentence of section 1881(b)(7) 
     (42 U.S.C. 1395rr(b)(7)) is amended by striking ``for such 
     services furnished on or after January 1, 2001, by 1.2 
     percent'' and inserting ``for such services furnished on or 
     after January 1, 2001, by 2.4 percent''.
       (2) Prohibition on exceptions.--
       (A) In general.--Subject to subparagraphs (B) and (C), the 
     Secretary of Health and Human Services may not provide for an 
     exception under section 1881(b)(7) of the Social Security Act 
     (42 U.S.C. 1395rr(b)(7)) on or after December 31, 2000.
       (B) Deadline for new applications.--In the case of a 
     facility that during 2000 did not file for an exception rate 
     under such section, the facility may submit an application 
     for an exception rate by not later than July 1, 2001.
       (C) Protection of approved exception rates.--Any exception 
     rate under such section in effect on December 31, 2000 (or, 
     in the case of an application under subparagraph (B), as 
     approved under such application) shall continue in effect so 
     long as such rate is greater than the composite rate as 
     updated by the amendment made by paragraph (1).
       (b) Development of ESRD Market Basket.--
       (1) Development.--The Secretary of Health and Human 
     Services shall collect data and develop an ESRD market basket 
     whereby the Secretary can estimate, before the beginning of a 
     year, the percentage by which the costs for the year of the 
     mix of labor and nonlabor goods and services included in the 
     ESRD composite rate under section 1881(b)(7) of the Social 
     Security Act (42 U.S.C. 1395rr(b)(7)) will exceed the costs 
     of such mix of goods and services for the preceding year. In 
     developing such index, the Secretary may take into account 
     measures of changes in--
       (A) technology used in furnishing dialysis services;
       (B) the manner or method of furnishing dialysis services; 
     and
       (C) the amounts by which the payments under such section 
     for all services billed by a facility for a year exceed the 
     aggregate allowable audited costs of such services for such 
     facility for such year.
       (2) Report.--The Secretary of Health and Human Services 
     shall submit to Congress a report on the index developed 
     under paragraph (1) no later than July 1, 2002, and shall 
     include in the report recommendations on the appropriateness 
     of an annual or periodic update mechanism for renal dialysis 
     services under the medicare program under title XVIII of the 
     Social Security Act based on such index.
       (c) Inclusion of Additional Services in Composite Rate.--
       (1) Development.--The Secretary of Health and Human 
     Services shall develop a system which includes, to the 
     maximum extent feasible, in the composite rate used for 
     payment under section 1881(b)(7) of the Social Security Act 
     (42 U.S.C. 1395rr(b)(7)), payment for clinical diagnostic 
     laboratory tests and drugs (including drugs paid under 
     section 1881(b)(11)(B) of such Act (42 U.S.C. 
     1395rr(b)(11)(B)) that are routinely used in furnishing 
     dialysis services to medicare beneficiaries but which are 
     currently separately billable by renal dialysis facilities.
       (2) Report.--The Secretary shall include, as part of the 
     report submitted under subsection (b)(2), a report on the 
     system developed under paragraph (1) and recommendations on 
     the appropriateness of incorporating the system into medicare 
     payment for renal dialysis services.
       (d) GAO Study on Access to Services.--
       (1) Study.--The Comptroller General of the United States 
     shall study access of medicare beneficiaries to renal 
     dialysis services. Such study shall include whether there is 
     a sufficient supply of facilities to furnish needed renal 
     dialysis services, whether medicare payment levels are 
     appropriate, taking into account audited costs of facilities 
     for all services furnished, to ensure continued access to 
     such services, and improvements in access (and quality of 
     care) that may result in the increased use of long nightly 
     and short daily hemodialysis modalities.
       (2) Report.--Not later than January 1, 2003, the 
     Comptroller General shall submit to Congress a report on the 
     study conducted under paragraph (1).
       (e) Special Rule for Payment for 2001.--Notwithstanding the 
     amendment made by subsection (a)(1), for purposes of making 
     payments under section 1881(b) of the Social Security Act (42 
     U.S.C. 1395rr(b)) for dialysis services furnished during 
     2001, the composite rate payment under paragraph (7) of such 
     section--
       (1) for services furnished on or after January 1, 2001, and 
     before April 1, 2001, shall be the composite rate payment 
     determined under the provisions of law in effect on the day 
     before the date of the enactment of this Act; and
       (2) for services furnished on or after April 1, 2001, and 
     before January 1, 2002, shall be the composite rate payment 
     (as determined taking into account the amendment made by 
     subsection (a)(1)) increased by a transitional percentage 
     allowance equal to 0.39 percent (to account for the timing of 
     implementation of the CPI update).

     SEC. 423. PAYMENT FOR AMBULANCE SERVICES.

       (a) Restoration of Full CPI Increase for 2001.--
       (1) In general.--Section 1834(l)(3) (42 U.S.C. 1395m(l)(3)) 
     is amended by striking ``reduced in the case of 2001 and 
     2002'' each place it appears and inserting ``reduced in the 
     case of 2002''.
       (2) Special rule for payment for 2001.--Notwithstanding the 
     amendment made by paragraph (1), for purposes of making 
     payments for ambulance services under part B of title XVIII 
     of the Social Security Act, for services furnished during 
     2001, the ``percentage increase in the consumer price index'' 
     specified in section 1834(l)(3)(B) of such Act (42 U.S.C. 
     1395m(l)(3)(B))--
       (A) for services furnished on or after January 1, 2001, and 
     before July 1, 2001, shall be the percentage increase for 
     2001 as determined under the provisions of law in effect on 
     the day before the date of the enactment of this Act; and
       (B) for services furnished on or after July 1, 2001, and 
     before January 1, 2002, shall be equal to 4.7 percent.
       (b) Mileage Payments.--
       (1) In general.--Section 1834(l)(2)(E) (42 U.S.C. 
     1395m(l)(2)(E)) is amended by inserting before the period at 
     the end the following: ``, except that such phase-in shall 
     provide for full payment of any national mileage rate for 
     ambulance services provided by suppliers that are paid by 
     carriers in any of the 50 States where payment by a carrier 
     for such services for all such suppliers in such State did 
     not, prior to the implementation of the fee schedule, include 
     a separate amount for all mileage within the county from 
     which the beneficiary is transported''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to services furnished on or after July 1, 2001.

     SEC. 424. AMBULATORY SURGICAL CENTERS.

       (a) Delay in Implementation of Prospective Payment 
     System.--The Secretary of Health and Human Services may not 
     implement a revised prospective payment system for services 
     of ambulatory surgical facilities under section 1833(i) of 
     the Social Security Act (42 U.S.C. 1395l(i)) before January 
     1, 2002.
       (b) Extending Phase-in to 4 Years.--Section 226 of the BBRA 
     (113 Stat. 1501A-354) is amended by striking paragraphs (1) 
     and (2) and inserting the following:
       ``(1) in the first year of its implementation, only a 
     proportion (specified by the Secretary and not to exceed \1/
     4\) of the payment for such services shall be made in 
     accordance with such system and the remainder shall be made 
     in accordance with current regulations; and
       ``(2) in each of the following 2 years a proportion 
     (specified by the Secretary and not to exceed \1/2\, and \3/
     4\, respectively) of the payment for such services shall be 
     made under such system and the remainder shall be made in 
     accordance with current regulations.''.
       (c) Deadline for Use of 1999 or Later Cost Surveys.--
     Section 226 of BBRA (113 Stat. 1501A-354) is amended by 
     adding at the end the following:
     ``By not later than January 1, 2003, the Secretary shall 
     incorporate data from a 1999 medicare cost survey or a 
     subsequent cost survey for purposes of implementing or 
     revising such system.''.

     SEC. 425. FULL UPDATE FOR DURABLE MEDICAL EQUIPMENT.

       (a) In General.--Section 1834(a)(14) (42 U.S.C. 
     1395m(a)(14)) is amended--
       (1) by redesignating subparagraph (D) as subparagraph (F);
       (2) in subparagraph (C)--
       (A) by striking ``through 2002'' and inserting ``through 
     2000''; and
       (B) by striking ``and'' at the end; and
       (3) by inserting after subparagraph (C) the following new 
     subparagraphs:
       ``(D) for 2001, the percentage increase in the consumer 
     price index for all urban consumers (U.S. city average) for 
     the 12-month period ending with June 2000;
       ``(E) for 2002, 0 percentage points; and''.
       (b) Special Rule for Payment for 2001.--Notwithstanding the 
     amendments made by subsection (a), for purposes of making 
     payments for

[[Page 26939]]

     durable medical equipment under section 1834(a) of the Social 
     Security Act (42 U.S.C. 1395m(a)), other than for oxygen and 
     oxygen equipment specified in paragraph (9) of such section, 
     the payment basis recognized for 2001 under such section--
       (1) for items furnished on or after January 1, 2001, and 
     before July 1, 2001, shall be the payment basis for 2001 as 
     determined under the provisions of law in effect on the day 
     before the date of the enactment of this Act (including the 
     application of section 228(a)(1) of BBRA); and
       (2) for items furnished on or after July 1, 2001, and 
     before January 1, 2002, shall be the payment basis that is 
     determined under such section 1834(a) if such section 
     228(a)(1) did not apply and taking into account the amendment 
     made by subsection (a), increased by a transitional 
     percentage allowance equal to 3.28 percent (to account for 
     the timing of implementation of the CPI update).

     SEC. 426. FULL UPDATE FOR ORTHOTICS AND PROSTHETICS.

       (a) In General.--Section 1834(h)(4)(A) (42 U.S.C. 
     1395m(h)(4)(A)) is amended--
       (1) by redesignating clause (vi) as clause (viii);
       (2) in clause (v)--
       (A) by striking ``through 2002'' and inserting ``through 
     2000''; and
       (B) by striking ``and'' at the end; and
       (3) by inserting after clause (v) the following new clause:
       ``(vi) for 2001, the percentage increase in the consumer 
     price index for all urban consumers (U.S. city average) for 
     the 12-month period ending with June 2000;
       ``(vii) for 2002, 1 percent; and''.
       (b) Special Rule for Payment for 2001.--Notwithstanding the 
     amendments made by subsection (a), for purposes of making 
     payments for prosthetic devices and orthotics and prosthetics 
     (as defined in subparagraphs (B) and (C) of paragraph (4) of 
     section 1834(h) of the Social Security Act (42 U.S.C. 
     1395m(h)) under such section, the payment basis recognized 
     for 2001 under paragraph (2) of such section--
       (1) for items furnished on or after January 1, 2001, and 
     before July 1, 2001, shall be the payment basis for 2001 as 
     determined under the provisions of law in effect on the day 
     before the date of the enactment of this Act; and
       (2) for items furnished on or after July 1, 2001, and 
     before January 1, 2002, shall be the payment basis that is 
     determined under such section taking into account the 
     amendments made by subsection (a), increased by a 
     transitional percentage allowance equal to 2.6 percent (to 
     account for the timing of implementation of the CPI update).

     SEC. 427. ESTABLISHMENT OF SPECIAL PAYMENT PROVISIONS AND 
                   REQUIREMENTS FOR PROSTHETICS AND CERTAIN 
                   CUSTOM-FABRICATED ORTHOTIC ITEMS.

       (a) In General.--Section 1834(h)(1) (42 U.S.C. 1395m(h)(1)) 
     is amended by adding at the end the following:
       ``(F) Special payment rules for certain prosthetics and 
     custom-fabricated orthotics.--
       ``(i) In general.--No payment shall be made under this 
     subsection for an item of custom-fabricated orthotics 
     described in clause (ii) or for an item of prosthetics unless 
     such item is--

       ``(I) furnished by a qualified practitioner; and
       ``(II) fabricated by a qualified practitioner or a 
     qualified supplier at a facility that meets such criteria as 
     the Secretary determines appropriate.

       ``(ii) Description of custom-fabricated item.--

       ``(I) In general.--An item described in this clause is an 
     item of custom-fabricated orthotics that requires education, 
     training, and experience to custom-fabricate and that is 
     included in a list established by the Secretary in subclause 
     (II). Such an item does not include shoes and shoe inserts.
       ``(II) List of items.--The Secretary, in consultation with 
     appropriate experts in orthotics (including national 
     organizations representing manufacturers of orthotics), shall 
     establish and update as appropriate a list of items to which 
     this subparagraph applies. No item may be included in such 
     list unless the item is individually fabricated for the 
     patient over a positive model of the patient.

       ``(iii) Qualified practitioner defined.--In this 
     subparagraph, the term `qualified practitioner' means a 
     physician or other individual who--

       ``(I) is a qualified physical therapist or a qualified 
     occupational therapist;
       ``(II) in the case of a State that provides for the 
     licensing of orthotics and prosthetics, is licensed in 
     orthotics or prosthetics by the State in which the item is 
     supplied; or
       ``(III) in the case of a State that does not provide for 
     the licensing of orthotics and prosthetics, is specifically 
     trained and educated to provide or manage the provision of 
     prosthetics and custom-designed or -fabricated orthotics, and 
     is certified by the American Board for Certification in 
     Orthotics and Prosthetics, Inc. or by the Board for 
     Orthotist/Prosthetist Certification, or is credentialed and 
     approved by a program that the Secretary determines, in 
     consultation with appropriate experts in orthotics and 
     prosthetics, has training and education standards that are 
     necessary to provide such prosthetics and orthotics.

       ``(iv) Qualified supplier defined.--In this subparagraph, 
     the term `qualified supplier' means any entity that is 
     accredited by the American Board for Certification in 
     Orthotics and Prosthetics, Inc. or by the Board for 
     Orthotist/Prosthetist Certification, or accredited and 
     approved by a program that the Secretary determines has 
     accreditation and approval standards that are essentially 
     equivalent to those of such Board.''.
       (b) Effective Date.--Not later than 1 year after the date 
     of the enactment of this Act, the Secretary of Health and 
     Human Services shall promulgate revised regulations to carry 
     out the amendment made by subsection (a) using a negotiated 
     rulemaking process under subchapter III of chapter 5 of title 
     5, United States Code.
       (c) GAO Study and Report.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study on HCFA Ruling 96-1, issued on 
     September 1, 1996, with respect to distinguishing orthotics 
     from durable medical equipment under the medicare program 
     under title XVIII of the Social Security Act. The study shall 
     assess the following matters:
       (A) The compliance of the Secretary of Health and Human 
     Services with the Administrative Procedures Act (under 
     chapter 5 of title 5, United States Code) in making such 
     ruling.
       (B) The potential impact of such ruling on the health care 
     furnished to medicare beneficiaries under the medicare 
     program, especially those beneficiaries with degenerative 
     musculoskeletal conditions.
       (C) The potential for fraud and abuse under the medicare 
     program if payment were provided for orthotics used as a 
     component of durable medical equipment only when made under 
     the special payment provision for certain prosthetics and 
     custom-fabricated orthotics under section 1834(h)(1)(F) of 
     the Social Security Act, as added by subsection (a) and 
     furnished by qualified practitioners under that section.
       (D) The impact on payments under titles XVIII and XIX of 
     the Social Security Act if such ruling were overturned.
       (2) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the study conducted under paragraph 
     (1).

     SEC. 428. REPLACEMENT OF PROSTHETIC DEVICES AND PARTS.

       (a) In General.--Section 1834(h)(1) (42 U.S.C. 
     1395m(h)(1)), as amended by section 427(a), is further 
     amended by adding at the end the following new subparagraph:
       ``(G) Replacement of prosthetic devices and parts.--
       ``(i) In general.--Payment shall be made for the 
     replacement of prosthetic devices which are artificial limbs, 
     or for the replacement of any part of such devices, without 
     regard to continuous use or useful lifetime restrictions if 
     an ordering physician determines that the provision of a 
     replacement device, or a replacement part of such a device, 
     is necessary because of any of the following:

       ``(I) A change in the physiological condition of the 
     patient.
       ``(II) An irreparable change in the condition of the 
     device, or in a part of the device.
       ``(III) The condition of the device, or the part of the 
     device, requires repairs and the cost of such repairs would 
     be more than 60 percent of the cost of a replacement device, 
     or, as the case may be, of the part being replaced.

       ``(ii) Confirmation may be required if device or part being 
     replaced is less than 3 years old.--If a physician determines 
     that a replacement device, or a replacement part, is 
     necessary pursuant to clause (i)--

       ``(I) such determination shall be controlling; and
       ``(II) such replacement device or part shall be deemed to 
     be reasonable and necessary for purposes of section 
     1862(a)(1)(A);

     except that if the device, or part, being replaced is less 
     than 3 years old (calculated from the date on which the 
     beneficiary began to use the device or part), the Secretary 
     may also require confirmation of necessity of the replacement 
     device or replacement part, as the case may be.''.
       (b) Preemption of Rule.--The provisions of section 
     1834(h)(1)(G) as added by subsection (a) shall supersede any 
     rule that as of the date of the enactment of this Act may 
     have applied a 5-year replacement rule with regard to 
     prosthetic devices.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply to items replaced on or after April 1, 2001.

     SEC. 429. REVISED PART B PAYMENT FOR DRUGS AND BIOLOGICALS 
                   AND RELATED SERVICES.

       (a) Recommendations for Revised Payment Methodology for 
     Drugs and Biologicals.--
       (1) Study.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct a study on the reimbursement for drugs 
     and biologicals under the current medicare payment 
     methodology (provided under section 1842(o) of the Social 
     Security Act (42 U.S.C. 1395u(o))) and for related services 
     under part B of title XVIII of such Act. In the study, the 
     Comptroller General shall--
       (i) identify the average prices at which such drugs and 
     biologicals are acquired by physicians and other suppliers;
       (ii) quantify the difference between such average prices 
     and the reimbursement amount under such section; and
       (iii) determine the extent to which (if any) payment under 
     such part is adequate to compensate physicians, providers of 
     services, or other suppliers of such drugs and biologicals 
     for costs incurred in the administration, handling, or 
     storage of such drugs or biologicals.
       (B) Consultation.--In conducting the study under 
     subparagraph (A), the Comptroller General shall consult with 
     physicians, providers of services, and suppliers of drugs and 
     biologicals under the medicare program under title XVIII of 
     such Act, as well as other organizations involved in the 
     distribution of such drugs and biologicals to such 
     physicians, providers of services, and suppliers.

[[Page 26940]]

       (2) Report.--Not later than 9 months after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to Congress and to the Secretary of Health and Human Services 
     a report on the study conducted under this subsection, and 
     shall include in such report recommendations for revised 
     payment methodologies described in paragraph (3).
       (3) Recommendations for revised payment methodologies.--
       (A) In general.--The Comptroller General shall provide 
     specific recommendations for revised payment methodologies 
     for reimbursement for drugs and biologicals and for related 
     services under the medicare program. The Comptroller General 
     may include in the recommendations--
       (i) proposals to make adjustments under subsection (c) of 
     section 1848 of the Social Security Act (42 U.S.C. 1395w-4) 
     for the practice expense component of the physician fee 
     schedule under such section for the costs incurred in the 
     administration, handling, or storage of certain categories of 
     such drugs and biologicals, if appropriate; and
       (ii) proposals for new payments to providers of services or 
     suppliers for such costs, if appropriate.
       (B) Ensuring patient access to care.--In making 
     recommendations under this paragraph, the Comptroller General 
     shall ensure that any proposed revised payment methodology is 
     designed to ensure that medicare beneficiaries continue to 
     have appropriate access to health care services under the 
     medicare program.
       (C) Matters considered.--In making recommendations under 
     this paragraph, the Comptroller General shall consider--
       (i) the method and amount of reimbursement for similar 
     drugs and biologicals made by large group health plans;
       (ii) as a result of any revised payment methodology, the 
     potential for patients to receive inpatient or outpatient 
     hospital services in lieu of services in a physician's 
     office; and
       (iii) the effect of any revised payment methodology on the 
     delivery of drug therapies by hospital outpatient 
     departments.
       (D) Coordination with bbra study.--In making 
     recommendations under this paragraph, the Comptroller General 
     shall conclude and take into account the results of the study 
     provided for under section 213(a) of BBRA (113 Stat. 1501A-
     350).
       (b) Implementation of New Payment Methodology.--
       (1) In general.--Notwithstanding any other provision of 
     law, based on the recommendations contained in the report 
     under subsection (a), the Secretary of Health and Human 
     Services, subject to paragraph (2), shall revise the payment 
     methodology under section 1842(o) of the Social Security Act 
     (42 U.S.C. 1395u(o)) for drugs and biologicals furnished 
     under part B of the medicare program. To the extent the 
     Secretary determines appropriate, the Secretary may provide 
     for the adjustments to payments amounts referred to in 
     subsection (a)(3)(A)(i) or additional payments referred to in 
     subsection (a)(2)(A)(ii).
       (2) Limitation.--In revising the payment methodology under 
     paragraph (1), in no case may the estimated aggregate 
     payments for drugs and biologicals under the revised system 
     (including additional payments referred to in subsection 
     (a)(3)(A)(ii)) exceed the aggregate amount of payment for 
     such drugs and biologicals, as projected by the Secretary, 
     that would have been made under the payment methodology in 
     effect under such section 1842(o).
       (c) Moratorium on Decreases in Payment Rates.--
     Notwithstanding any other provision of law, effective for 
     drugs and biologicals furnished on or after January 1, 2001, 
     the Secretary may not directly or indirectly decrease the 
     rates of reimbursement (in effect as of such date) for drugs 
     and biologicals under the current medicare payment 
     methodology (provided under section 1842(o) of the Social 
     Security Act (42 U.S.C. 1395u(o))) until such time as the 
     Secretary has reviewed the report submitted under subsection 
     (a)(2).

     SEC. 430. CONTRAST ENHANCED DIAGNOSTIC PROCEDURES UNDER 
                   HOSPITAL PROSPECTIVE PAYMENT SYSTEM.

       (a) Separate Classification.--Section 1833(t)(2) (42 U.S.C. 
     1395l(t)(2)) is amended--
       (1) by striking ``and'' at the end of subparagraph (E);
       (2) by striking the period at the end of subparagraph (F) 
     and inserting ``; and''; and
       (3) by inserting after subparagraph (F) the following new 
     subparagraph:
       ``(G) the Secretary shall create additional groups of 
     covered OPD services that classify separately those 
     procedures that utilize contrast agents from those that do 
     not.''.
       (b) Conforming Amendment.--Section 1861(t)(1) (42 U.S.C. 
     1395x(t)(1)) is amended by inserting ``(including contrast 
     agents)'' after ``only such drugs''.
       (c) Effective Date.--The amendments made by this section 
     apply to items and services furnished on or after July 1, 
     2001.

     SEC. 431. QUALIFICATIONS FOR COMMUNITY MENTAL HEALTH CENTERS.

       (a) Medicare Program.--Section 1861(ff)(3)(B) (42 U.S.C. 
     1395x(ff)(3)(B)) is amended by striking ``entity'' and all 
     that follows and inserting the following: ``entity that--
       ``(i)(I) provides the mental health services described in 
     section 1913(c)(1) of the Public Health Service Act; or
       ``(II) in the case of an entity operating in a State that 
     by law precludes the entity from providing itself the service 
     described in subparagraph (E) of such section, provides for 
     such service by contract with an approved organization or 
     entity (as determined by the Secretary);
       ``(ii) meets applicable licensing or certification 
     requirements for community mental health centers in the State 
     in which it is located; and
       ``(iii) meets such additional conditions as the Secretary 
     shall specify to ensure (I) the health and safety of 
     individuals being furnished such services, (II) the effective 
     and efficient furnishing of such services, and (III) the 
     compliance of such entity with the criteria described in 
     section 1931(c)(1) of the Public Health Service Act.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to community mental health centers 
     with respect to services furnished on or after the first day 
     of the third month beginning after the date of the enactment 
     of this Act.

     SEC. 432. PAYMENT OF PHYSICIAN AND NONPHYSICIAN SERVICES IN 
                   CERTAIN INDIAN PROVIDERS.

       (a) In General.--Section 1880 (42 U.S.C. 1395qq) is 
     amended--
       (1) by redesignating subsection (e), as added by section 
     3(b)(1) of the Alaska Native and American Indian Direct 
     Reimbursement Act of 2000 (Public Law 106-417), as subsection 
     (f); and
       (2) by inserting after subsection (d) the following new 
     subsection:
       ``(e)(1)(A) Notwithstanding section 1835(d), subject to 
     subparagraph (B), the Secretary shall make payment under part 
     B to a hospital or an ambulatory care clinic (whether 
     provider-based or freestanding) that is operated by the 
     Indian Health Service or by an Indian tribe or tribal 
     organization (as defined for purposes of subsection (a)) for 
     services described in paragraph (2) furnished in or at the 
     direction of the hospital or clinic under the same 
     situations, terms, and conditions as would apply if the 
     services were furnished in or at the direction of such a 
     hospital or clinic that was not operated by such Service, 
     tribe, or organization.
       ``(B) Payment shall not be made for services under 
     subparagraph (A) to the extent that payment is otherwise made 
     for such services under this title.
       ``(2) The services described in this paragraph are the 
     following:
       ``(A) Services for which payment is made under section 
     1848.
       ``(B) Services furnished by a practitioner described in 
     section 1842(b)(18)(C) for which payment under part B is made 
     under a fee schedule.
       ``(C) Services furnished by a physical therapist or 
     occupational therapist as described in section 1861(p) for 
     which payment under part B is made under a fee schedule.
       ``(3) Subsection (c) shall not apply to payments made under 
     this subsection.''.
       (b) Conforming Amendments.--
       (1) Coverage amendment.--Section 1862(a)(3) (42 U.S.C. 
     1395y(a)(3)) is amended--
       (A) by striking the second comma after ``1861(aa)(1)''; and
       (B) by inserting ``in the case of services for which 
     payment may be made under section 1880(e),'' after ``as 
     defined in section 1861(aa)(3),''.
       (2) Direct payment amendment.--The first sentence of 
     section 1842(b)(6) (42 U.S.C. 1395u(b)(6)) is amended--
       (A) by striking ``and (F)'' and inserting ``(F)''; and
       (B) by inserting before the period the following: ``, and 
     (G) in the case of services in a hospital or clinic to which 
     section 1880(e) applies, payment shall be made to such 
     hospital or clinic''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to services furnished on or after July 1, 2001.

     SEC. 433. GAO STUDY ON COVERAGE OF SURGICAL FIRST ASSISTING 
                   SERVICES OF CERTIFIED REGISTERED NURSE FIRST 
                   ASSISTANTS.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study on the effect on the medicare program 
     under title XVIII of the Social Security Act and on medicare 
     beneficiaries of coverage under the program of surgical first 
     assisting services of certified registered nurse first 
     assistants. The Comptroller General shall consider the 
     following when conducting the study:
       (1) Any impact on the quality of care furnished to medicare 
     beneficiaries by reason of such coverage.
       (2) Appropriate education and training requirements for 
     certified registered nurse first assistants who furnish such 
     first assisting services.
       (3) Appropriate rates of payment under the program to such 
     certified registered nurse first assistants for furnishing 
     such services, taking into account the costs of compensation, 
     overhead, and supervision attributable to certified 
     registered nurse first assistants.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the study conducted under subsection 
     (a).

     SEC. 434. MEDPAC STUDY AND REPORT ON MEDICARE REIMBURSEMENT 
                   FOR SERVICES PROVIDED BY CERTAIN PROVIDERS.

       (a) Study.--The Medicare Payment Advisory Commission shall 
     conduct a study on the appropriateness of the current payment 
     rates under the medicare program under title XVIII of the 
     Social Security Act for services provided by a--
       (1) certified nurse-midwife (as defined in subsection 
     (gg)(2) of section 1861 of such Act (42 U.S.C. 1395x));
       (2) physician assistant (as defined in subsection 
     (aa)(5)(A) of such section);
       (3) nurse practitioner (as defined in such subsection); and

[[Page 26941]]

       (4) clinical nurse specialist (as defined in subsection 
     (aa)(5)(B) of such section).
     The study shall separately examine the appropriateness of 
     such payment rates for orthopedic physician assistants, 
     taking into consideration the requirements for accreditation, 
     training, and education.
       (b) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Commission shall submit to 
     Congress a report on the study conducted under subsection 
     (a), together with any recommendations for legislation that 
     the Commission determines to be appropriate as a result of 
     such study.

     SEC. 435. MEDPAC STUDY AND REPORT ON MEDICARE COVERAGE OF 
                   SERVICES PROVIDED BY CERTAIN NONPHYSICIAN 
                   PROVIDERS.

       (a) Study.--
       (1) In general.--The Medicare Payment Advisory Commission 
     shall conduct a study to determine the appropriateness of 
     providing coverage under the medicare program under title 
     XVIII of the Social Security Act for services provided by a--
       (A) surgical technologist;
       (B) marriage counselor;
       (C) marriage and family therapist;
       (D) pastoral care counselor; and
       (E) licensed professional counselor of mental health.
       (2) Costs to program.--The study shall consider the short-
     term and long-term benefits, and costs to the medicare 
     program, of providing the coverage described in paragraph 
     (1).
       (b) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Commission shall submit to 
     Congress a report on the study conducted under subsection 
     (a), together with any recommendations for legislation that 
     the Commission determines to be appropriate as a result of 
     such study.

     SEC. 436. GAO STUDY AND REPORT ON THE COSTS OF EMERGENCY AND 
                   MEDICAL TRANSPORTATION SERVICES.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study on the costs of providing emergency and 
     medical transportation services across the range of acuity 
     levels of conditions for which such transportation services 
     are provided.
       (b) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the study conducted under subsection 
     (a), together with recommendations for any changes in 
     methodology or payment level necessary to fairly compensate 
     suppliers of emergency and medical transportation services 
     and to ensure the access of beneficiaries under the medicare 
     program under title XVIII of the Social Security Act.

     SEC. 437. GAO STUDIES AND REPORTS ON MEDICARE PAYMENTS.

       (a) GAO Study on HCFA Post-Payment Audit Process.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study on the post-payment audit process under 
     the medicare program under title XVIII of the Social Security 
     Act as such process applies to physicians, including the 
     proper level of resources that the Health Care Financing 
     Administration should devote to educating physicians 
     regarding--
       (A) coding and billing;
       (B) documentation requirements; and
       (C) the calculation of overpayments.
       (2) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the study conducted under paragraph 
     (1) together with specific recommendations for changes or 
     improvements in the post-payment audit process described in 
     such paragraph.
       (b) GAO Study on Administration and Oversight.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study on the aggregate effects of regulatory, 
     audit, oversight, and paperwork burdens on physicians and 
     other health care providers participating in the medicare 
     program under title XVIII of the Social Security Act.
       (2) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the study conducted under paragraph 
     (1) together with recommendations regarding any area in 
     which--
       (A) a reduction in paperwork, an ease of administration, or 
     an appropriate change in oversight and review may be 
     accomplished; or
       (B) additional payments or education are needed to assist 
     physicians and other health care providers in understanding 
     and complying with any legal or regulatory requirements.

     SEC. 438. MEDPAC STUDY ON ACCESS TO OUTPATIENT PAIN 
                   MANAGEMENT SERVICES.

       (a) Study.--The Medicare Payment Advisory Commission shall 
     conduct a study on the barriers to coverage and payment for 
     outpatient interventional pain medicine procedures under the 
     medicare program under title XVIII of the Social Security 
     Act. Such study shall examine--
       (1) the specific barriers imposed under the medicare 
     program on the provision of pain management procedures in 
     hospital outpatient departments, ambulatory surgery centers, 
     and physicians' offices; and
       (2) the consistency of medicare payment policies for pain 
     management procedures in those different settings.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Commission shall submit to 
     Congress a report on the study.

             TITLE V--PROVISIONS RELATING TO PARTS A AND B

                    Subtitle A--Home Health Services

     SEC. 501. 1-YEAR ADDITIONAL DELAY IN APPLICATION OF 15 
                   PERCENT REDUCTION ON PAYMENT LIMITS FOR HOME 
                   HEALTH SERVICES.

       (a) In General.--Section 1895(b)(3)(A)(i) (42 U.S.C. 
     1395fff(b)(3)(A)(i)) is amended--
       (1) by redesignating subclause (II) as subclause (III);
       (2) in subclause (III), as redesignated, by striking 
     ``described in subclause (I)'' and inserting ``described in 
     subclause (II)''; and
       (3) by inserting after subclause (I) the following new 
     subclause:

       ``(II) For the 12-month period beginning after the period 
     described in subclause (I), such amount (or amounts) shall be 
     equal to the amount (or amounts) determined under subclause 
     (I), updated under subparagraph (B).''.

       (b) Change in Report.--Section 302(c) of BBRA (113 Stat. 
     1501A-360) is amended--
       (1) by striking ``Not later than'' and all that follows 
     through ``(42 U.S.C. 1395fff)'' and inserting ``Not later 
     than April 1, 2002''; and
       (2) by striking ``Secretary'' and inserting ``Comptroller 
     General of the United States''.
       (c) Case Mix Adjustment Corrections.--
       (1) In general.--Section 1895(b)(3)(B) (42 U.S.C. 
     1395fff(b)(3)(B)) is amended by adding at the end the 
     following new clause:
       ``(iv) Adjustment for case mix changes.--Insofar as the 
     Secretary determines that the adjustments under paragraph 
     (4)(A)(i) for a previous fiscal year (or estimates that such 
     adjustments for a future fiscal year) did (or are likely to) 
     result in a change in aggregate payments under this 
     subsection during the fiscal year that are a result of 
     changes in the coding or classification of different units of 
     services that do not reflect real changes in case mix, the 
     Secretary may adjust the standard prospective payment amount 
     (or amounts) under paragraph (3) for subsequent fiscal years 
     so as to eliminate the effect of such coding or 
     classification changes.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to episodes concluding on or after October 1, 
     2001.

     SEC. 502. RESTORATION OF FULL HOME HEALTH MARKET BASKET 
                   UPDATE FOR HOME HEALTH SERVICES FOR FISCAL YEAR 
                   2001.

       (a) In General.--Section 1861(v)(1)(L)(x) (42 U.S.C. 
     1395x(v)(1)(L)(x)) is amended--
       (1) by striking ``2001,''; and
       (2) by adding at the end the following: ``With respect to 
     cost reporting periods beginning during fiscal year 2001, the 
     update to any limit under this subparagraph shall be the home 
     health market basket index.''.
       (b) Special Rule for Payment for Fiscal Year 2001 Based on 
     Adjusted Prospective Payment Amounts.--
       (1) In general.--Notwithstanding the amendments made by 
     subsection (a), for purposes of making payments under section 
     1895(b) of the Social Security Act (42 U.S.C. 1395fff(b)) for 
     home health services furnished during fiscal year 2001, the 
     Secretary of Health and Human Services shall--
       (A) with respect to episodes and visits ending on or after 
     October 1, 2000, and before April 1, 2001, use the final 
     standardized and budget neutral prospective payment amounts 
     for 60-day episodes and standardized average per visit 
     amounts for fiscal year 2001 as published by the Secretary in 
     the Federal Register on July 3, 2000 (65 Fed. Reg. 41128-
     41214); and
       (B) with respect to episodes and visits ending on or after 
     April 1, 2001, and before October 1, 2001, use such amounts 
     increased by 2.2 percent.
       (2) No effect on other payments or determinations.--The 
     Secretary shall not take the provisions of paragraph (1) into 
     account for purposes of payments, determinations, or budget 
     neutrality adjustments under section 1895 of the Social 
     Security Act.

     SEC. 503. TEMPORARY TWO-MONTH PERIODIC INTERIM PAYMENT.

       (a) In General.--Notwithstanding the amendments made by 
     section 4603(b) of BBA (42 U.S.C. 1395fff note), in the case 
     of a home health agency that was receiving periodic interim 
     payments under section 1815(e)(2) of the Social Security Act 
     (42 U.S.C. 1395g(e)(2)) as of September 30, 2000, and that is 
     not described in subsection (b), the Secretary of Health and 
     Human Services shall, as soon as practicable, make a single 
     periodic interim payment to such agency in an amount equal to 
     four times the last full fortnightly periodic interim payment 
     made to such agency under the payment system in effect prior 
     to the implementation of the prospective payment system under 
     section 1895(b) of such Act (42 U.S.C. 1395fff(b)). Such 
     amount of such periodic interim payment shall be included in 
     the tentative settlement of the last cost report for the home 
     health agency under the payment system in effect prior to the 
     implementation of such prospective payment system, regardless 
     of the ending date of such cost report.
       (b) Exceptions.--The Secretary shall not make an additional 
     periodic interim payment under subsection (a) in the case of 
     a home health agency (determined as of the day that such 
     payment would otherwise be made) that--
       (1) notifies the Secretary that such agency does not want 
     to receive such payment;
       (2) is not receiving payments pursuant to section 405.371 
     of title 42, Code of Federal Regulations;
       (3) is excluded from the medicare program under title XI of 
     the Social Security Act;
       (4) no longer has a provider agreement under section 1866 
     of such Act (42 U.S.C. 1395cc);

[[Page 26942]]

       (5) is no longer in business; or
       (6) is subject to a court order providing for the 
     withholding of medicare payments under title XVIII of such 
     Act.

     SEC. 504. USE OF TELEHEALTH IN DELIVERY OF HOME HEALTH 
                   SERVICES.

       Section 1895 (42 U.S.C. 1395fff) is amended by adding at 
     the end the following new subsection:
       ``(e) Construction Related to Home Health Services.--
       ``(1) Telecommunications.--Nothing in this section shall be 
     construed as preventing a home health agency furnishing a 
     home health unit of service for which payment is made under 
     the prospective payment system established by this section 
     for such units of service from furnishing services via a 
     telecommunication system if such services--
       ``(A) do not substitute for in-person home health services 
     ordered as part of a plan of care certified by a physician 
     pursuant to section 1814(a)(2)(C) or 1835(a)(2)(A); and
       ``(B) are not considered a home health visit for purposes 
     of eligibility or payment under this title.
       ``(2) Physician certification.--Nothing in this section 
     shall be construed as waiving the requirement for a physician 
     certification under section 1814(a)(2)(C) or 1835(a)(2)(A) of 
     such Act (42 U.S.C. 1395f(a)(2)(C), 1395n(a)(2)(A)) for the 
     payment for home health services, whether or not furnished 
     via a telecommunications system.''.

     SEC. 505. STUDY ON COSTS TO HOME HEALTH AGENCIES OF 
                   PURCHASING NONROUTINE MEDICAL SUPPLIES.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study on variations in prices paid by home 
     health agencies furnishing home health services under the 
     medicare program under title XVIII of the Social Security Act 
     in purchasing nonroutine medical supplies, including ostomy 
     supplies, and volumes of such supplies used, shall determine 
     the effect (if any) of variations on prices and volumes in 
     the provision of such services.
       (b) Report.--Not later than August 15, 2001, the 
     Comptroller General shall submit to Congress a report on the 
     study conducted under subsection (a), and shall include in 
     the report recommendations respecting whether payment for 
     nonroutine medical supplies furnished in connection with home 
     health services should be made separately from the 
     prospective payment system for such services.

     SEC. 506. TREATMENT OF BRANCH OFFICES; GAO STUDY ON 
                   SUPERVISION OF HOME HEALTH CARE PROVIDED IN 
                   ISOLATED RURAL AREAS.

       (a) Treatment of Branch Offices.--
       (1) In general.--Notwithstanding any other provision of 
     law, in determining for purposes of title XVIII of the Social 
     Security Act whether an office of a home health agency 
     constitutes a branch office or a separate home health agency, 
     neither the time nor distance between a parent office of the 
     home health agency and a branch office shall be the sole 
     determinant of a home health agency's branch office status.
       (2) Consideration of forms of technology in definition of 
     supervision.--The Secretary of Health and Human Services may 
     include forms of technology in determining what constitutes 
     ``supervision'' for purposes of determining a home heath 
     agency's branch office status under paragraph (1).
       (b) GAO Study.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study of the provision of adequate 
     supervision to maintain quality of home health services 
     delivered under the medicare program under title XVIII of the 
     Social Security Act in isolated rural areas. The study shall 
     evaluate the methods that home health agency branches and 
     subunits use to maintain adequate supervision in the delivery 
     of services to clients residing in those areas, how these 
     methods of supervision compare to requirements that subunits 
     independently meet medicare conditions of participation, and 
     the resources utilized by subunits to meet such conditions.
       (2) Report.--Not later than January 1, 2002, the 
     Comptroller General shall submit to Congress a report on the 
     study conducted under paragraph (1). The report shall include 
     recommendations on whether exceptions are needed for subunits 
     and branches of home health agencies under the medicare 
     program to maintain access to the home health benefit or 
     whether alternative policies should be developed to assure 
     adequate supervision and access and recommendations on 
     whether a national standard for supervision is appropriate.

     SEC. 507. CLARIFICATION OF THE HOMEBOUND DEFINITION UNDER THE 
                   MEDICARE HOME HEALTH BENEFIT.

       (a) Clarification.--
       (1) In general.--Sections 1814(a) and 1835(a) (42 U.S.C. 
     1395f(a) and 1395n(a)) are each amended--
       (A) in the last sentence, by striking ``, and that absences 
     of the individual from home are infrequent or of relatively 
     short duration, or are attributable to the need to receive 
     medical treatment''; and
       (B) by adding at the end the following new sentences: ``Any 
     absence of an individual from the home attributable to the 
     need to receive health care treatment, including regular 
     absences for the purpose of participating in therapeutic, 
     psychosocial, or medical treatment in an adult day-care 
     program that is licensed or certified by a State, or 
     accredited, to furnish adult day-care services in the State 
     shall not disqualify an individual from being considered to 
     be `confined to his home'. Any other absence of an individual 
     from the home shall not so disqualify an individual if the 
     absence is of infrequent or of relatively short duration. For 
     purposes of the preceding sentence, any absence for the 
     purpose of attending a religious service shall be deemed to 
     be an absence of infrequent or short duration.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall apply to home health services furnished on or after the 
     date of the enactment of this Act.
       (b) Study.--
       (1) In general.--The Comptroller General of the United 
     States shall conduct an evaluation of the effect of the 
     amendment on the cost of and access to home health services 
     under the medicare program under title XVIII of the Social 
     Security Act.
       (2) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the study conducted under paragraph 
     (1).

     SEC. 508. TEMPORARY INCREASE FOR HOME HEALTH SERVICES 
                   FURNISHED IN A RURAL AREA.

       (a) 24-Month Increase Beginning April 1, 2001.--In the case 
     of home health services furnished in a rural area (as defined 
     in section 1886(d)(2)(D) of the Social Security Act (42 
     U.S.C. 1395ww(d)(2)(D))) on or after April 1, 2001, and 
     before April 1, 2003, the Secretary of Health and Human 
     Services shall increase the payment amount otherwise made 
     under section 1895 of such Act (42 U.S.C. 1395fff) for such 
     services by 10 percent.
       (b) Waiving Budget Neutrality.--The Secretary shall not 
     reduce the standard prospective payment amount (or amounts) 
     under section 1895 of the Social Security Act (42 U.S.C. 
     1395fff) applicable to home health services furnished during 
     a period to offset the increase in payments resulting from 
     the application of subsection (a).

             Subtitle B--Direct Graduate Medical Education

     SEC. 511. INCREASE IN FLOOR FOR DIRECT GRADUATE MEDICAL 
                   EDUCATION PAYMENTS.

       Section 1886(h)(2)(D)(iii) (42 U.S.C. 1395ww(h)(2)(D)(iii)) 
     is amended--
       (1) in the heading, by striking ``in fiscal year 2001 at 70 
     percent of'' and inserting ``for''; and
       (2) by inserting after ``70 percent'' the following: ``, 
     and for the cost reporting period beginning during fiscal 
     year 2002 shall not be less than 85 percent,''.

     SEC. 512. CHANGE IN DISTRIBUTION FORMULA FOR MEDICARE+CHOICE-
                   RELATED NURSING AND ALLIED HEALTH EDUCATION 
                   COSTS.

       (a) In General.--Section 1886(l)(2)(C) (42 U.S.C. 
     1395ww(l)(2)(C)) is amended by striking all that follows 
     ``multiplied by'' and inserting the following: ``the ratio 
     of--
       ``(i) the product of (I) the Secretary's estimate of the 
     ratio of the amount of payments made under section 1861(v) to 
     the hospital for nursing and allied health education 
     activities for the hospital's cost reporting period ending in 
     the second preceding fiscal year, to the hospital's total 
     inpatient days for such period, and (II) the total number of 
     inpatient days (as established by the Secretary) for such 
     period which are attributable to services furnished to 
     individuals who are enrolled under a risk sharing contract 
     with an eligible organization under section 1876 and who are 
     entitled to benefits under part A or who are enrolled with a 
     Medicare+Choice organization under part C; to
       ``(ii) the sum of the products determined under clause (i) 
     for such cost reporting periods.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to portions of cost reporting periods occurring 
     on or after January 1, 2001.

      Subtitle C--Changes in Medicare Coverage and Appeals Process

     SEC. 521. REVISIONS TO MEDICARE APPEALS PROCESS.

       (a) Conduct of Reconsiderations of Determinations by 
     Independent Contractors.--Section 1869 (42 U.S.C. 1395ff) is 
     amended to read as follows:


                       ``determinations; appeals

       ``Sec. 1869. (a) Initial Determinations.--
       ``(1) Promulgations of regulations.--The Secretary shall 
     promulgate regulations and make initial determinations with 
     respect to benefits under part A or part B in accordance with 
     those regulations for the following:
       ``(A) The initial determination of whether an individual is 
     entitled to benefits under such parts.
       ``(B) The initial determination of the amount of benefits 
     available to the individual under such parts.
       ``(C) Any other initial determination with respect to a 
     claim for benefits under such parts, including an initial 
     determination by the Secretary that payment may not be made, 
     or may no longer be made, for an item or service under such 
     parts, an initial determination made by a utilization and 
     quality control peer review organization under section 
     1154(a)(2), and an initial determination made by an entity 
     pursuant to a contract (other than a contract under section 
     1852) with the Secretary to administer provisions of this 
     title or title XI.
       ``(2) Deadlines for making initial determinations.--

[[Page 26943]]

       ``(A) In general.--Subject to subparagraph (B), in 
     promulgating regulations under paragraph (1), initial 
     determinations shall be concluded by not later than the 45-
     day period beginning on the date the fiscal intermediary or 
     the carrier, as the case may be, receives a claim for 
     benefits from an individual as described in paragraph (1). 
     Notice of such determination shall be mailed to the 
     individual filing the claim before the conclusion of such 45-
     day period.
       ``(B) Clean claims.--Subparagraph (A) shall not apply with 
     respect to any claim that is subject to the requirements of 
     section 1816(c)(2) or 1842(c)(2).
       ``(3) Redeterminations.--
       ``(A) In general.--In promulgating regulations under 
     paragraph (1) with respect to initial determinations, such 
     regulations shall provide for a fiscal intermediary or a 
     carrier to make a redetermination with respect to a claim for 
     benefits that is denied in whole or in part.
       ``(B) Limitations.--
       ``(i) Appeal rights.--No initial determination may be 
     reconsidered or appealed under subsection (b) unless the 
     fiscal intermediary or carrier has made a redetermination of 
     that initial determination under this paragraph.
       ``(ii) Decisionmaker.--No redetermination may be made by 
     any individual involved in the initial determination.
       ``(C) Deadlines.--
       ``(i) Filing for redetermination.--A redetermination under 
     subparagraph (A) shall be available only if notice is filed 
     with the Secretary to request the redetermination by not 
     later than the end of the 120-day period beginning on the 
     date the individual receives notice of the initial 
     determination under paragraph (2).
       ``(ii) Concluding redeterminations.--Redeterminations shall 
     be concluded by not later than the 30-day period beginning on 
     the date the fiscal intermediary or the carrier, as the case 
     may be, receives a request for a redetermination. Notice of 
     such determination shall be mailed to the individual filing 
     the claim before the conclusion of such 30-day period.
       ``(D) Construction.--For purposes of the succeeding 
     provisions of this section a redetermination under this 
     paragraph shall be considered to be part of the initial 
     determination.
       ``(b) Appeal Rights.--
       ``(1) In general.--
       ``(A) Reconsideration of initial determination.--Subject to 
     subparagraph (D), any individual dissatisfied with any 
     initial determination under subsection (a)(1) shall be 
     entitled to reconsideration of the determination, and, 
     subject to subparagraphs (D) and (E), a hearing thereon by 
     the Secretary to the same extent as is provided in section 
     205(b) and to judicial review of the Secretary's final 
     decision after such hearing as is provided in section 205(g). 
     For purposes of the preceding sentence, any reference to the 
     `Commissioner of Social Security' or the `Social Security 
     Administration' in subsection (g) or (l) of section 205 shall 
     be considered a reference to the `Secretary' or the 
     `Department of Health and Human Services', respectively.
       ``(B) Representation by provider or supplier.--
       ``(i) In general.--Sections 206(a), 1102, and 1871 shall 
     not be construed as authorizing the Secretary to prohibit an 
     individual from being represented under this section by a 
     person that furnishes or supplies the individual, directly or 
     indirectly, with services or items, solely on the basis that 
     the person furnishes or supplies the individual with such a 
     service or item.
       ``(ii) Mandatory waiver of right to payment from 
     beneficiary.--Any person that furnishes services or items to 
     an individual may not represent an individual under this 
     section with respect to the issue described in section 
     1879(a)(2) unless the person has waived any rights for 
     payment from the beneficiary with respect to the services or 
     items involved in the appeal.
       ``(iii) Prohibition on payment for representation.--If a 
     person furnishes services or items to an individual and 
     represents the individual under this section, the person may 
     not impose any financial liability on such individual in 
     connection with such representation.
       ``(iv) Requirements for representatives of a beneficiary.--
     The provisions of section 205(j) and of section 206 (other 
     than subsection (a)(4) of such section) regarding 
     representation of claimants shall apply to representation of 
     an individual with respect to appeals under this section in 
     the same manner as they apply to representation of an 
     individual under those sections.
       ``(C) Succession of rights in cases of assignment.--The 
     right of an individual to an appeal under this section with 
     respect to an item or service may be assigned to the provider 
     of services or supplier of the item or service upon the 
     written consent of such individual using a standard form 
     established by the Secretary for such an assignment.
       ``(D) Time limits for filing appeals.--
       ``(i) Reconsiderations.--Reconsideration under subparagraph 
     (A) shall be available only if the individual described in 
     subparagraph (A) files notice with the Secretary to request 
     reconsideration by not later than the end of the 180-day 
     period beginning on the date the individual receives notice 
     of the redetermination under subsection (a)(3), or within 
     such additional time as the Secretary may allow.
       ``(ii) Hearings conducted by the secretary.--The Secretary 
     shall establish in regulations time limits for the filing of 
     a request for a hearing by the Secretary in accordance with 
     provisions in sections 205 and 206.
       ``(E) Amounts in controversy.--
       ``(i) In general.--A hearing (by the Secretary) shall not 
     be available to an individual under this section if the 
     amount in controversy is less than $100, and judicial review 
     shall not be available to the individual if the amount in 
     controversy is less than $1,000.
       ``(ii) Aggregation of claims.--In determining the amount in 
     controversy, the Secretary, under regulations, shall allow 
     two or more appeals to be aggregated if the appeals involve--

       ``(I) the delivery of similar or related services to the 
     same individual by one or more providers of services or 
     suppliers, or
       ``(II) common issues of law and fact arising from services 
     furnished to two or more individuals by one or more providers 
     of services or suppliers.

       ``(F) Expedited proceedings.--
       ``(i) Expedited determination.--In the case of an 
     individual who has received notice from a provider of 
     services that such provider plans--

       ``(I) to terminate services provided to an individual and a 
     physician certifies that failure to continue the provision of 
     such services is likely to place the individual's health at 
     significant risk, or
       ``(II) to discharge the individual from the provider of 
     services,

     the individual may request, in writing or orally, an 
     expedited determination or an expedited reconsideration of an 
     initial determination made under subsection (a)(1), as the 
     case may be, and the Secretary shall provide such expedited 
     determination or expedited reconsideration.
       ``(ii) Expedited hearing.--In a hearing by the Secretary 
     under this section, in which the moving party alleges that no 
     material issues of fact are in dispute, the Secretary shall 
     make an expedited determination as to whether any such facts 
     are in dispute and, if not, shall render a decision 
     expeditiously.
       ``(G) Reopening and revision of determinations.--The 
     Secretary may reopen or revise any initial determination or 
     reconsidered determination described in this subsection under 
     guidelines established by the Secretary in regulations.
       ``(c) Conduct of Reconsiderations by Independent 
     Contractors.--
       ``(1) In general.--The Secretary shall enter into contracts 
     with qualified independent contractors to conduct 
     reconsiderations of initial determinations made under 
     subparagraphs (B) and (C) of subsection (a)(1). Contracts 
     shall be for an initial term of three years and shall be 
     renewable on a triennial basis thereafter.
       ``(2) Qualified independent contractor.--For purposes of 
     this subsection, the term `qualified independent contractor' 
     means an entity or organization that is independent of any 
     organization under contract with the Secretary that makes 
     initial determinations under subsection (a)(1), and that 
     meets the requirements established by the Secretary 
     consistent with paragraph (3).
       ``(3) Requirements.--Any qualified independent contractor 
     entering into a contract with the Secretary under this 
     subsection shall meet all of the following requirements:
       ``(A) In general.--The qualified independent contractor 
     shall perform such duties and functions and assume such 
     responsibilities as may be required by the Secretary to carry 
     out the provisions of this subsection, and shall have 
     sufficient training and expertise in medical science and 
     legal matters to make reconsiderations under this subsection.
       ``(B) Reconsiderations.--
       ``(i) In general.--The qualified independent contractor 
     shall review initial determinations. Where an initial 
     determination is made with respect to whether an item or 
     service is reasonable and necessary for the diagnosis or 
     treatment of illness or injury (under section 1862(a)(1)(A)), 
     such review shall include consideration of the facts and 
     circumstances of the initial determination by a panel of 
     physicians or other appropriate health care professionals and 
     any decisions with respect to the reconsideration shall be 
     based on applicable information, including clinical 
     experience and medical, technical, and scientific evidence.
       ``(ii) Effect of national and local coverage 
     determinations.--

       ``(I) National coverage determinations.--If the Secretary 
     has made a national coverage determination pursuant to the 
     requirements established under the third sentence of section 
     1862(a), such determination shall be binding on the qualified 
     independent contractor in making a decision with respect to a 
     reconsideration under this section.
       ``(II) Local coverage determinations.--If the Secretary has 
     made a local coverage determination, such determination shall 
     not be binding on the qualified independent contractor in 
     making a decision with respect to a reconsideration under 
     this section. Notwithstanding the previous sentence, the 
     qualified independent contractor shall consider the local 
     coverage determination in making such decision.
       ``(III) Absence of national or local coverage 
     determination.--In the absence of such a national coverage 
     determination or local coverage determination, the qualified 
     independent contractor shall make a decision with respect to 
     the reconsideration based on applicable information, 
     including clinical experience and medical, technical, and 
     scientific evidence.

       ``(C) Deadlines for decisions.--
       ``(i) Reconsiderations.--Except as provided in clauses 
     (iii) and (iv), the qualified independent contractor shall 
     conduct and conclude a reconsideration under subparagraph 
     (B), and mail the notice of the decision with respect to the 
     reconsideration by not later than the end of

[[Page 26944]]

     the 30-day period beginning on the date a request for 
     reconsideration has been timely filed.
       ``(ii) Consequences of failure to meet deadline.--In the 
     case of a failure by the qualified independent contractor to 
     mail the notice of the decision by the end of the period 
     described in clause (i) or to provide notice by the end of 
     the period described in clause (iii), as the case may be, the 
     party requesting the reconsideration or appeal may request a 
     hearing before the Secretary, notwithstanding any 
     requirements for a reconsidered determination for purposes of 
     the party's right to such hearing.
       ``(iii) Expedited reconsiderations.--The qualified 
     independent contractor shall perform an expedited 
     reconsideration under subsection (b)(1)(F) as follows:

       ``(I) Deadline for decision.--Notwithstanding section 
     216(j) and subject to clause (iv), not later than the end of 
     the 72-hour period beginning on the date the qualified 
     independent contractor has received a request for such 
     reconsideration and has received such medical or other 
     records needed for such reconsideration, the qualified 
     independent contractor shall provide notice (by telephone and 
     in writing) to the individual and the provider of services 
     and attending physician of the individual of the results of 
     the reconsideration. Such reconsideration shall be conducted 
     regardless of whether the provider of services or supplier 
     will charge the individual for continued services or whether 
     the individual will be liable for payment for such continued 
     services.
       ``(II) Consultation with beneficiary.--In such 
     reconsideration, the qualified independent contractor shall 
     solicit the views of the individual involved.
       ``(III) Special rule for hospital discharges.--A 
     reconsideration of a discharge from a hospital shall be 
     conducted under this clause in accordance with the provisions 
     of paragraphs (2), (3), and (4) of section 1154(e) as in 
     effect on the date that precedes the date of the enactment of 
     this subparagraph.

       ``(iv) Extension.--An individual requesting a 
     reconsideration under this subparagraph may be granted such 
     additional time as the individual specifies (not to exceed 14 
     days) for the qualified independent contractor to conclude 
     the reconsideration. The individual may request such 
     additional time orally or in writing.
       ``(D) Limitation on individual reviewing determinations.--
       ``(i) Physicians and health care professional.--No 
     physician or health care professional under the employ of a 
     qualified independent contractor may review--

       ``(I) determinations regarding health care services 
     furnished to a patient if the physician or health care 
     professional was directly responsible for furnishing such 
     services; or
       ``(II) determinations regarding health care services 
     provided in or by an institution, organization, or agency, if 
     the physician or any member of the family of the physician or 
     health care professional has, directly or indirectly, a 
     significant financial interest in such institution, 
     organization, or agency.

       ``(ii) Family described.--For purposes of this paragraph, 
     the family of a physician or health care professional 
     includes the spouse (other than a spouse who is legally 
     separated from the physician or health care professional 
     under a decree of divorce or separate maintenance), children 
     (including stepchildren and legally adopted children), 
     grandchildren, parents, and grandparents of the physician or 
     health care professional.
       ``(E) Explanation of decision.--Any decision with respect 
     to a reconsideration of a qualified independent contractor 
     shall be in writing, and shall include a detailed explanation 
     of the decision as well as a discussion of the pertinent 
     facts and applicable regulations applied in making such 
     decision, and in the case of a determination of whether an 
     item or service is reasonable and necessary for the diagnosis 
     or treatment of illness or injury (under section 
     1862(a)(1)(A)) an explanation of the medical and scientific 
     rationale for the decision.
       ``(F) Notice requirements.--Whenever a qualified 
     independent contractor makes a decision with respect to a 
     reconsideration under this subsection, the qualified 
     independent contractor shall promptly notify the entity 
     responsible for the payment of claims under part A or part B 
     of such decision.
       ``(G) Dissemination of decisions on reconsiderations.--Each 
     qualified independent contractor shall make available all 
     decisions with respect to reconsiderations of such qualified 
     independent contractors to fiscal intermediaries (under 
     section 1816), carriers (under section 1842), peer review 
     organizations (under part B of title XI), Medicare+Choice 
     organizations offering Medicare+Choice plans under part C, 
     other entities under contract with the Secretary to make 
     initial determinations under part A or part B or title XI, 
     and to the public. The Secretary shall establish a 
     methodology under which qualified independent contractors 
     shall carry out this subparagraph.
       ``(H) Ensuring consistency in decisions.--Each qualified 
     independent contractor shall monitor its decisions with 
     respect to reconsiderations to ensure the consistency of such 
     decisions with respect to requests for reconsideration of 
     similar or related matters.
       ``(I) Data collection.--
       ``(i) In general.--Consistent with the requirements of 
     clause (ii), a qualified independent contractor shall collect 
     such information relevant to its functions, and keep and 
     maintain such records in such form and manner as the 
     Secretary may require to carry out the purposes of this 
     section and shall permit access to and use of any such 
     information and records as the Secretary may require for such 
     purposes.
       ``(ii) Type of data collected.--Each qualified independent 
     contractor shall keep accurate records of each decision made, 
     consistent with standards established by the Secretary for 
     such purpose. Such records shall be maintained in an 
     electronic database in a manner that provides for 
     identification of the following:

       ``(I) Specific claims that give rise to appeals.
       ``(II) Situations suggesting the need for increased 
     education for providers of services, physicians, or 
     suppliers.
       ``(III) Situations suggesting the need for changes in 
     national or local coverage policy.
       ``(IV) Situations suggesting the need for changes in local 
     medical review policies.

       ``(iii) Annual reporting.--Each qualified independent 
     contractor shall submit annually to the Secretary (or 
     otherwise as the Secretary may request) records maintained 
     under this paragraph for the previous year.
       ``(J) Hearings by the secretary.--The qualified independent 
     contractor shall (i) prepare such information as is required 
     for an appeal of a decision of the contractor with respect to 
     a reconsideration to the Secretary for a hearing, including 
     as necessary, explanations of issues involved in the decision 
     and relevant policies, and (ii) participate in such hearings 
     as required by the Secretary.
       ``(4) Number of qualified independent contractors.--The 
     Secretary shall enter into contracts with not fewer than 12 
     qualified independent contractors under this subsection.
       ``(5) Limitation on qualified independent contractor 
     liability.--No qualified independent contractor having a 
     contract with the Secretary under this subsection and no 
     person who is employed by, or who has a fiduciary 
     relationship with, any such qualified independent contractor 
     or who furnishes professional services to such qualified 
     independent contractor, shall be held by reason of the 
     performance of any duty, function, or activity required or 
     authorized pursuant to this subsection or to a valid contract 
     entered into under this subsection, to have violated any 
     criminal law, or to be civilly liable under any law of the 
     United States or of any State (or political subdivision 
     thereof) provided due care was exercised in the performance 
     of such duty, function, or activity.
       ``(d) Deadlines for Hearings by the Secretary.--
       ``(1) Hearing by administrative law judge.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an administrative law judge shall conduct and conclude a 
     hearing on a decision of a qualified independent contractor 
     under subsection (c) and render a decision on such hearing by 
     not later than the end of the 90-day period beginning on the 
     date a request for hearing has been timely filed.
       ``(B) Waiver of deadline by party seeking hearing.--The 90-
     day period under subparagraph (A) shall not apply in the case 
     of a motion or stipulation by the party requesting the 
     hearing to waive such period.
       ``(2) Departmental appeals board review.--
       ``(A) In general.--The Departmental Appeals Board of the 
     Department of Health and Human Services shall conduct and 
     conclude a review of the decision on a hearing described in 
     paragraph (1) and make a decision or remand the case to the 
     administrative law judge for reconsideration by not later 
     than the end of the 90-day period beginning on the date a 
     request for review has been timely filed.
       ``(B) DAB hearing procedure.--In reviewing a decision on a 
     hearing under this paragraph, the Departmental Appeals Board 
     shall review the case de novo.
       ``(3) Consequences of failure to meet deadlines.--
       ``(A) Hearing by administrative law judge.--In the case of 
     a failure by an administrative law judge to render a decision 
     by the end of the period described in paragraph (1), the 
     party requesting the hearing may request a review by the 
     Departmental Appeals Board of the Department of Health and 
     Human Services, notwithstanding any requirements for a 
     hearing for purposes of the party's right to such a review.
       ``(B) Departmental appeals board review.--In the case of a 
     failure by the Departmental Appeals Board to render a 
     decision by the end of the period described in paragraph (2), 
     the party requesting the hearing may seek judicial review, 
     notwithstanding any requirements for a hearing for purposes 
     of the party's right to such judicial review.
       ``(e) Administrative Provisions.--
       ``(1) Limitation on review of certain regulations.--A 
     regulation or instruction that relates to a method for 
     determining the amount of payment under part B and that was 
     initially issued before January 1, 1981, shall not be subject 
     to judicial review.
       ``(2) Outreach.--The Secretary shall perform such outreach 
     activities as are necessary to inform individuals entitled to 
     benefits under this title and providers of services and 
     suppliers with respect to their rights of, and the process 
     for, appeals made under this section. The Secretary shall use 
     the toll-free telephone number maintained by the Secretary 
     under section 1804(b) to provide information regarding appeal 
     rights and respond to inquiries regarding the status of 
     appeals.
       ``(3) Continuing education requirement for qualified 
     independent contractors and administrative law judges.--The 
     Secretary shall provide to each qualified independent 
     contractor, and, in consultation with the Commissioner of 
     Social Security, to administrative law

[[Page 26945]]

     judges that decide appeals of reconsiderations of initial 
     determinations or other decisions or determinations under 
     this section, such continuing education with respect to 
     coverage of items and services under this title or policies 
     of the Secretary with respect to part B of title XI as is 
     necessary for such qualified independent contractors and 
     administrative law judges to make informed decisions with 
     respect to appeals.
       ``(4) Reports.--
       ``(A) Annual report to congress.--The Secretary shall 
     submit to Congress an annual report describing the number of 
     appeals for the previous year, identifying issues that 
     require administrative or legislative actions, and including 
     any recommendations of the Secretary with respect to such 
     actions. The Secretary shall include in such report an 
     analysis of determinations by qualified independent 
     contractors with respect to inconsistent decisions and an 
     analysis of the causes of any such inconsistencies.
       ``(B) Survey.--Not less frequently than every 5 years, the 
     Secretary shall conduct a survey of a valid sample of 
     individuals entitled to benefits under this title who have 
     filed appeals of determinations under this section, providers 
     of services, and suppliers to determine the satisfaction of 
     such individuals or entities with the process for appeals of 
     determinations provided for under this section and education 
     and training provided by the Secretary with respect to that 
     process. The Secretary shall submit to Congress a report 
     describing the results of the survey, and shall include any 
     recommendations for administrative or legislative actions 
     that the Secretary determines appropriate.''.
       (b) Applicability of Requirements and Limitations on 
     Liability of Qualified Independent Contractors to 
     Medicare+Choice Independent Appeals Contractors.--Section 
     1852(g)(4) (42 U.S.C. 1395w-22(g)(4)) is amended by adding at 
     the end the following: ``The provisions of section 1869(c)(5) 
     shall apply to independent outside entities under contract 
     with the Secretary under this paragraph.''.
       (c) Conforming Amendment.--Section 1154(e) (42 U.S.C. 
     1320c-3(e)) is amended by striking paragraphs (2), (3), and 
     (4).
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to initial determinations made on or 
     after October 1, 2002.

     SEC. 522. REVISIONS TO MEDICARE COVERAGE PROCESS.

       (a) Review of Determinations.--Section 1869 (42 U.S.C. 
     1395ff), as amended by section 521, is further amended by 
     adding at the end the following new subsection:
       ``(f) Review of Coverage Determinations.--
       ``(1) National coverage determinations.--
       ``(A) In general.--Review of any national coverage 
     determination shall be subject to the following limitations:
       ``(i) Such a determination shall not be reviewed by any 
     administrative law judge.
       ``(ii) Such a determination shall not be held unlawful or 
     set aside on the ground that a requirement of section 553 of 
     title 5, United States Code, or section 1871(b) of this 
     title, relating to publication in the Federal Register or 
     opportunity for public comment, was not satisfied.
       ``(iii) Upon the filing of a complaint by an aggrieved 
     party, such a determination shall be reviewed by the 
     Departmental Appeals Board of the Department of Health and 
     Human Services. In conducting such a review, the Departmental 
     Appeals Board--

       ``(I) shall review the record and shall permit discovery 
     and the taking of evidence to evaluate the reasonableness of 
     the determination, if the Board determines that the record is 
     incomplete or lacks adequate information to support the 
     validity of the determination;
       ``(II) may, as appropriate, consult with appropriate 
     scientific and clinical experts; and
       ``(III) shall defer only to the reasonable findings of 
     fact, reasonable interpretations of law, and reasonable 
     applications of fact to law by the Secretary.

       ``(iv) The Secretary shall implement a decision of the 
     Departmental Appeals Board within 30 days of receipt of such 
     decision.
       ``(v) A decision of the Departmental Appeals Board 
     constitutes a final agency action and is subject to judicial 
     review.
       ``(B) Definition of national coverage determination.--For 
     purposes of this section, the term `national coverage 
     determination' means a determination by the Secretary with 
     respect to whether or not a particular item or service is 
     covered nationally under this title, but does not include a 
     determination of what code, if any, is assigned to a 
     particular item or service covered under this title or a 
     determination with respect to the amount of payment made for 
     a particular item or service so covered.
       ``(2) Local coverage determination.--
       ``(A) In general.--Review of any local coverage 
     determination shall be subject to the following limitations:
       ``(i) Upon the filing of a complaint by an aggrieved party, 
     such a determination shall be reviewed by an administrative 
     law judge of the Social Security Administration. The 
     administrative law judge--

       ``(I) shall review the record and shall permit discovery 
     and the taking of evidence to evaluate the reasonableness of 
     the determination, if the administrative law judge determines 
     that the record is incomplete or lacks adequate information 
     to support the validity of the determination;
       ``(II) may, as appropriate, consult with appropriate 
     scientific and clinical experts; and
       ``(III) shall defer only to the reasonable findings of 
     fact, reasonable interpretations of law, and reasonable 
     applications of fact to law by the Secretary.

       ``(ii) Upon the filing of a complaint by an aggrieved 
     party, a decision of an administrative law judge under clause 
     (i) shall be reviewed by the Departmental Appeals Board of 
     the Department of Health and Human Services.
       ``(iii) The Secretary shall implement a decision of the 
     administrative law judge or the Departmental Appeals Board 
     within 30 days of receipt of such decision.
       ``(iv) A decision of the Departmental Appeals Board 
     constitutes a final agency action and is subject to judicial 
     review.
       ``(B) Definition of local coverage determination.--For 
     purposes of this section, the term `local coverage 
     determination' means a determination by a fiscal intermediary 
     or a carrier under part A or part B, as applicable, 
     respecting whether or not a particular item or service is 
     covered on an intermediary- or carrier-wide basis under such 
     parts, in accordance with section 1862(a)(1)(A).
       ``(3) No material issues of fact in dispute.--In the case 
     of a determination that may otherwise be subject to review 
     under paragraph (1)(A)(iii) or paragraph (2)(A)(i), where the 
     moving party alleges that--
       ``(A) there are no material issues of fact in dispute, and
       ``(B) the only issue of law is the constitutionality of a 
     provision of this title, or that a regulation, determination, 
     or ruling by the Secretary is invalid,
     the moving party may seek review by a court of competent 
     jurisdiction without filing a complaint under such paragraph 
     and without otherwise exhausting other administrative 
     remedies.
       ``(4) Pending national coverage determinations.--
       ``(A) In general.--In the event the Secretary has not 
     issued a national coverage or noncoverage determination with 
     respect to a particular type or class of items or services, 
     an aggrieved person (as described in paragraph (5)) may 
     submit to the Secretary a request to make such a 
     determination with respect to such items or services. By not 
     later than the end of the 90-day period beginning on the date 
     the Secretary receives such a request (notwithstanding the 
     receipt by the Secretary of new evidence (if any) during such 
     90-day period), the Secretary shall take one of the following 
     actions:
       ``(i) Issue a national coverage determination, with or 
     without limitations.
       ``(ii) Issue a national noncoverage determination.
       ``(iii) Issue a determination that no national coverage or 
     noncoverage determination is appropriate as of the end of 
     such 90-day period with respect to national coverage of such 
     items or services.
       ``(iv) Issue a notice that states that the Secretary has 
     not completed a review of the request for a national coverage 
     determination and that includes an identification of the 
     remaining steps in the Secretary's review process and a 
     deadline by which the Secretary will complete the review and 
     take an action described in subclause (I), (II), or (III).
       ``(B) Deemed action by the secretary.--In the case of an 
     action described in clause (i)(IV), if the Secretary fails to 
     take an action referred to in such clause by the deadline 
     specified by the Secretary under such clause, then the 
     Secretary is deemed to have taken an action described in 
     clause (i)(III) as of the deadline.
       ``(C) Explanation of determination.--When issuing a 
     determination under clause (i), the Secretary shall include 
     an explanation of the basis for the determination. An action 
     taken under clause (i) (other than subclause (IV)) is deemed 
     to be a national coverage determination for purposes of 
     review under subparagraph (A).
       ``(5) Standing.--An action under this subsection seeking 
     review of a national coverage determination or local coverage 
     determination may be initiated only by individuals entitled 
     to benefits under part A, or enrolled under part B, or both, 
     who are in need of the items or services that are the subject 
     of the coverage determination.
       ``(6) Publication on the internet of decisions of hearings 
     of the secretary.--Each decision of a hearing by the 
     Secretary with respect to a national coverage determination 
     shall be made public, and the Secretary shall publish each 
     decision on the Medicare Internet site of the Department of 
     Health and Human Services. The Secretary shall remove from 
     such decision any information that would identify any 
     individual, provider of services, or supplier.
       ``(7) Annual report on national coverage determinations.--
       ``(A) In general.--Not later than December 1 of each year, 
     beginning in 2001, the Secretary shall submit to Congress a 
     report that sets forth a detailed compilation of the actual 
     time periods that were necessary to complete and fully 
     implement national coverage determinations that were made in 
     the previous fiscal year for items, services, or medical 
     devices not previously covered as a benefit under this title, 
     including, with respect to each new item, service, or medical 
     device, a statement of the time taken by the Secretary to 
     make and implement the necessary coverage, coding, and 
     payment determinations, including the time taken to complete 
     each significant step in the process of making and 
     implementing such determinations.
       ``(B) Publication of reports on the internet.--The 
     Secretary shall publish each report submitted under clause 
     (i) on the medicare Internet site of the Department of Health 
     and Human Services.

[[Page 26946]]

       ``(8) Construction.--Nothing in this subsection shall be 
     construed as permitting administrative or judicial review 
     pursuant to this section insofar as such review is explicitly 
     prohibited or restricted under another provision of law.''.
       (b) Establishment of a Process for Coverage 
     Determinations.--Section 1862(a) (42 U.S.C. 1395y(a)) is 
     amended by adding at the end the following new sentence: ``In 
     making a national coverage determination (as defined in 
     paragraph (1)(B) of section 1869(f)) the Secretary shall 
     ensure that the public is afforded notice and opportunity to 
     comment prior to implementation by the Secretary of the 
     determination; meetings of advisory committees established 
     under section 1114(f) with respect to the determination are 
     made on the record; in making the determination, the 
     Secretary has considered applicable information (including 
     clinical experience and medical, technical, and scientific 
     evidence) with respect to the subject matter of the 
     determination; and in the determination, provide a clear 
     statement of the basis for the determination (including 
     responses to comments received from the public), the 
     assumptions underlying that basis, and make available to the 
     public the data (other than proprietary data) considered in 
     making the determination.''.
       (c) Improvements to the Medicare Advisory Committee 
     Process.--Section 1114 (42 U.S.C. 1314) is amended by adding 
     at the end the following new subsection:
       ``(i)(1) Any advisory committee appointed under subsection 
     (f) to advise the Secretary on matters relating to the 
     interpretation, application, or implementation of section 
     1862(a)(1) shall assure the full participation of a nonvoting 
     member in the deliberations of the advisory committee, and 
     shall provide such nonvoting member access to all information 
     and data made available to voting members of the advisory 
     committee, other than information that--
       ``(A) is exempt from disclosure pursuant to subsection (a) 
     of section 552 of title 5, United States Code, by reason of 
     subsection (b)(4) of such section (relating to trade 
     secrets); or
       ``(B) the Secretary determines would present a conflict of 
     interest relating to such nonvoting member.
       ``(2) If an advisory committee described in paragraph (1) 
     organizes into panels of experts according to types of items 
     or services considered by the advisory committee, any such 
     panel of experts may report any recommendation with respect 
     to such items or services directly to the Secretary without 
     the prior approval of the advisory committee or an executive 
     committee thereof.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to--
       (1) a review of any national or local coverage 
     determination filed,
       (2) a request to make such a determination made, and
       (3) a national coverage determination made,
     on or after October 1, 2001.

            Subtitle D--Improving Access to New Technologies

     SEC. 531. REIMBURSEMENT IMPROVEMENTS FOR NEW CLINICAL 
                   LABORATORY TESTS AND DURABLE MEDICAL EQUIPMENT.

       (a) Payment Rule for New Laboratory Tests.--Section 
     1833(h)(4)(B)(viii) (42 U.S.C. 1395l(h)(4)(B)(viii)) is 
     amended by inserting before the period at the end the 
     following: ``(or 100 percent of such median in the case of a 
     clinical diagnostic laboratory test performed on or after 
     January 1, 2001, that the Secretary determines is a new test 
     for which no limitation amount has previously been 
     established under this subparagraph)''.
       (b) Establishment of Coding and Payment Procedures for New 
     Clinical Diagnostic Laboratory Tests and Other Items on a Fee 
     Schedule.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary of Health and Human 
     Services shall establish procedures for coding and payment 
     determinations for the categories of new clinical diagnostic 
     laboratory tests and new durable medical equipment under part 
     B of title XVIII of the Social Security Act that permit 
     public consultation in a manner consistent with the 
     procedures established for implementing coding modifications 
     for ICD-9-CM.
       (c) Report on Procedures Used for Advanced, Improved 
     Technologies.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary of Health and Human 
     Services shall submit to Congress a report that identifies 
     the specific procedures used by the Secretary under part B of 
     title XVIII of the Social Security Act to adjust payments for 
     clinical diagnostic laboratory tests and durable medical 
     equipment which are classified to existing codes where, 
     because of an advance in technology with respect to the test 
     or equipment, there has been a significant increase or 
     decrease in the resources used in the test or in the 
     manufacture of the equipment, and there has been a 
     significant improvement in the performance of the test or 
     equipment. The report shall include such recommendations for 
     changes in law as may be necessary to assure fair and 
     appropriate payment levels under such part for such improved 
     tests and equipment as reflects increased costs necessary to 
     produce improved results.

     SEC. 532. RETENTION OF HCPCS LEVEL III CODES.

       (a) In General.--The Secretary of Health and Human Services 
     shall maintain and continue the use of level III codes of the 
     HCPCS coding system (as such system was in effect on August 
     16, 2000) through December 31, 2003, and shall make such 
     codes available to the public.
       (b) Definition.--For purposes of this section, the term 
     ``HCPCS Level III codes'' means the alphanumeric codes for 
     local use under the Health Care Financing Administration 
     Common Procedure Coding System (HCPCS).

     SEC. 533. RECOGNITION OF NEW MEDICAL TECHNOLOGIES UNDER 
                   INPATIENT HOSPITAL PPS.

       (a) Expediting Recognition of New Technologies Into 
     Inpatient PPS Coding System.--
       (1) Report.--Not later than April 1, 2001, the Secretary of 
     Health and Human Services shall submit to Congress a report 
     on methods of expeditiously incorporating new medical 
     services and technologies into the clinical coding system 
     used with respect to payment for inpatient hospital services 
     furnished under the medicare program under title XVIII of the 
     Social Security Act, together with a detailed description of 
     the Secretary's preferred methods to achieve this purpose.
       (2) Implementation.--Not later than October 1, 2001, the 
     Secretary shall implement the preferred methods described in 
     the report transmitted pursuant to paragraph (1).
       (b) Ensuring Appropriate Payments for Hospitals 
     Incorporating New Medical Services and Technologies.--
       (1) Establishment of mechanism.--Section 1886(d)(5) (42 
     U.S.C. 1395ww(d)(5)) is amended by adding at the end the 
     following new subparagraphs:
       ``(K)(i) Effective for discharges beginning on or after 
     October 1, 2001, the Secretary shall establish a mechanism to 
     recognize the costs of new medical services and technologies 
     under the payment system established under this subsection. 
     Such mechanism shall be established after notice and 
     opportunity for public comment (in the publications required 
     by subsection (e)(5) for a fiscal year or otherwise).
       ``(ii) The mechanism established pursuant to clause (i) 
     shall--
       ``(I) apply to a new medical service or technology if, 
     based on the estimated costs incurred with respect to 
     discharges involving such service or technology, the DRG 
     prospective payment rate otherwise applicable to such 
     discharges under this subsection is inadequate;
       ``(II) provide for the collection of data with respect to 
     the costs of a new medical service or technology described in 
     subclause (I) for a period of not less than two years and not 
     more than three years beginning on the date on which an 
     inpatient hospital code is issued with respect to the service 
     or technology;
       ``(III) subject to paragraph (4)(C)(iii), provide for 
     additional payment to be made under this subsection with 
     respect to discharges involving a new medical service or 
     technology described in subclause (I) that occur during the 
     period described in subclause (II) in an amount that 
     adequately reflects the estimated average cost of such 
     service or technology; and
       ``(IV) provide that discharges involving such a service or 
     technology that occur after the close of the period described 
     in subclause (II) will be classified within a new or existing 
     diagnosis-related group with a weighting factor under 
     paragraph (4)(B) that is derived from cost data collected 
     with respect to discharges occurring during such period.
       ``(iii) For purposes of clause (ii)(II), the term 
     `inpatient hospital code' means any code that is used with 
     respect to inpatient hospital services for which payment may 
     be made under this subsection and includes an alphanumeric 
     code issued under the International Classification of 
     Diseases, 9th Revision, Clinical Modification (`ICD-9-CM') 
     and its subsequent revisions.
       ``(iv) For purposes of clause (ii)(III), the term 
     `additional payment' means, with respect to a discharge for a 
     new medical service or technology described in clause 
     (ii)(I), an amount that exceeds the prospective payment rate 
     otherwise applicable under this subsection to discharges 
     involving such service or technology that would be made but 
     for this subparagraph.
       ``(v) The requirement under clause (ii)(III) for an 
     additional payment may be satisfied by means of a new-
     technology group (described in subparagraph (L)), an add-on 
     payment, a payment adjustment, or any other similar mechanism 
     for increasing the amount otherwise payable with respect to a 
     discharge under this subsection. The Secretary may not 
     establish a separate fee schedule for such additional payment 
     for such services and technologies, by utilizing a 
     methodology established under subsection (a) or (h) of 
     section 1834 to determine the amount of such additional 
     payment, or by other similar mechanisms or methodologies.
       ``(vi) For purposes of this subparagraph and subparagraph 
     (L), a medical service or technology will be considered a 
     `new medical service or technology' if the service or 
     technology meets criteria established by the Secretary after 
     notice and an opportunity for public comment.
       ``(L)(i) In establishing the mechanism under subparagraph 
     (K), the Secretary may establish new-technology groups into 
     which a new medical service or technology will be classified 
     if, based on the estimated average costs incurred with 
     respect to discharges involving such service or technology, 
     the DRG prospective payment rate otherwise applicable to such 
     discharges under this subsection is inadequate.
       ``(ii) Such groups--
       ``(I) shall not be based on the costs associated with a 
     specific new medical service or technology; but
       ``(II) shall, in combination with the applicable 
     standardized amounts and the weighting factors assigned to 
     such groups under paragraph (4)(B),

[[Page 26947]]

     reflect such cost cohorts as the Secretary determines are 
     appropriate for all new medical services and technologies 
     that are likely to be provided as inpatient hospital services 
     in a fiscal year.
       ``(iii) The methodology for classifying specific hospital 
     discharges within a diagnosis-related group under paragraph 
     (4)(A) or a new-technology group shall provide that a 
     specific hospital discharge may not be classified within both 
     a diagnosis-related group and a new-technology group.''.
       (2) Prior consultation.--The Secretary of Health and Human 
     Services shall consult with groups representing hospitals, 
     physicians, and manufacturers of new medical technologies 
     before publishing the notice of proposed rulemaking required 
     by section 1886(d)(5)(K)(i) of the Social Security Act (as 
     added by paragraph (1)).
       (3) Conforming amendment.--Section 1886(d)(4)(C)(i) (42 
     U.S.C. 1395ww(d)(4)(C)(i)) is amended by striking 
     ``technology,'' and inserting ``technology (including a new 
     medical service or technology under paragraph (5)(K)),''.

                      Subtitle E--Other Provisions

     SEC. 541. INCREASE IN REIMBURSEMENT FOR BAD DEBT.

       Section 1861(v)(1)(T) (42 U.S.C. 1395x(v)(1)(T)) is 
     amended--
       (1) in clause (ii), by striking ``and'' at the end;
       (2) in clause (iii)--
       (A) by striking ``during a subsequent fiscal year'' and 
     inserting ``during fiscal year 2000''; and
       (B) by striking the period at the end and inserting ``, 
     and''; and
       (3) by adding at the end the following new clause:
       ``(iv) for cost reporting periods beginning during a 
     subsequent fiscal year, by 30 percent of such amount 
     otherwise allowable.''.

     SEC. 542. TREATMENT OF CERTAIN PHYSICIAN PATHOLOGY SERVICES 
                   UNDER MEDICARE.

       (a) In General.--When an independent laboratory furnishes 
     the technical component of a physician pathology service to a 
     fee-for-service medicare beneficiary who is an inpatient or 
     outpatient of a covered hospital, the Secretary of Health and 
     Human Services shall treat such component as a service for 
     which payment shall be made to the laboratory under section 
     1848 of the Social Security Act (42 U.S.C. 1395w-4) and not 
     as an inpatient hospital service for which payment is made to 
     the hospital under section 1886(d) of such Act (42 U.S.C. 
     1395ww(d)) or as an outpatient hospital service for which 
     payment is made to the hospital under section 1833(t) of such 
     Act (42 U.S.C. 1395l(t)).
       (b) Definitions.--For purposes of this section:
       (1) Covered hospital.--The term ``covered hospital'' means, 
     with respect to an inpatient or an outpatient, a hospital 
     that had an arrangement with an independent laboratory that 
     was in effect as of July 22, 1999, under which a laboratory 
     furnished the technical component of physician pathology 
     services to fee-for-service medicare beneficiaries who were 
     hospital inpatients or outpatients, respectively, and 
     submitted claims for payment for such component to a medicare 
     carrier (that has a contract with the Secretary under section 
     1842 of the Social Security Act, 42 U.S.C. 1395u) and not to 
     such hospital.
       (2) Fee-for-service medicare beneficiary.--The term ``fee-
     for-service medicare beneficiary'' means an individual who--
       (A) is entitled to benefits under part A, or enrolled under 
     part B, or both, of such title; and
       (B) is not enrolled in any of the following:
       (i) A Medicare+Choice plan under part C of such title.
       (ii) A plan offered by an eligible organization under 
     section 1876 of such Act (42 U.S.C. 1395mm).
       (iii) A program of all-inclusive care for the elderly 
     (PACE) under section 1894 of such Act (42 U.S.C. 1395eee).
       (iv) A social health maintenance organization (SHMO) 
     demonstration project established under section 4018(b) of 
     the Omnibus Budget Reconciliation Act of 1987 (Public Law 
     100-203).
       (c) Effective Date.--This section shall apply to services 
     furnished during the 2-year period beginning on January 1, 
     2001.
       (d) GAO Report.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study of the effects of the previous 
     provisions of this section on hospitals and laboratories and 
     access of fee-for-service medicare beneficiaries to the 
     technical component of physician pathology services.
       (2) Report.--Not later than April 1, 2002, the Comptroller 
     General shall submit to Congress a report on such study. The 
     report shall include recommendations about whether such 
     provisions should be extended after the end of the period 
     specified in subsection (c) for either or both inpatient and 
     outpatient hospital services, and whether the provisions 
     should be extended to other hospitals.

     SEC. 543. EXTENSION OF ADVISORY OPINION AUTHORITY.

       Section 1128D(b)(6) (42 U.S.C. 1320a-7d(b)(6)) is amended 
     by striking ``and before the date which is 4 years after such 
     date of enactment''.

     SEC. 544. CHANGE IN ANNUAL MEDPAC REPORTING.

       (a) Revision of Deadlines for Submission of Reports.--
       (1) In general.--Section 1805(b)(1)(D) (42 U.S.C. 1395b-
     6(b)(1)(D)) is amended by striking ``June 1 of each year 
     (beginning with 1998),'' and inserting ``June 15 of each 
     year,''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply beginning with 2001.
       (b) Requirement for on the Record Votes on 
     Recommendations.--Section 1805(b) (42 U.S.C. 1395b-6(b)) is 
     amended by adding at the end the following new paragraph:
       ``(7) Voting and reporting requirements.--With respect to 
     each recommendation contained in a report submitted under 
     paragraph (1), each member of the Commission shall vote on 
     the recommendation, and the Commission shall include, by 
     member, the results of that vote in the report containing the 
     recommendation.''.

     SEC. 545. DEVELOPMENT OF PATIENT ASSESSMENT INSTRUMENTS.

       (a) Development.--
       (1) In general.--Not later than January 1, 2005, the 
     Secretary of Health and Human Services shall submit to the 
     Committee on Ways and Means and the Committee on Commerce of 
     the House of Representatives and the Committee on Finance of 
     the Senate a report on the development of standard 
     instruments for the assessment of the health and functional 
     status of patients, for whom items and services described in 
     subsection (b) are furnished, and include in the report a 
     recommendation on the use of such standard instruments for 
     payment purposes.
       (2) Design for comparison of common elements.--The 
     Secretary shall design such standard instruments in a manner 
     such that--
       (A) elements that are common to the items and services 
     described in subsection (b) may be readily comparable and are 
     statistically compatible;
       (B) only elements necessary to meet program objectives are 
     collected; and
       (C) the standard instruments supersede any other assessment 
     instrument used before that date.
       (3) Consultation.--In developing an assessment instrument 
     under paragraph (1), the Secretary shall consult with the 
     Medicare Payment Advisory Commission, the Agency for 
     Healthcare Research and Quality, and qualified organizations 
     representing providers of services and suppliers under title 
     XVIII.
       (b) Description of Services.--For purposes of subsection 
     (a), items and services described in this subsection are 
     those items and services furnished to individuals entitled to 
     benefits under part A, or enrolled under part B, or both of 
     title XVIII of the Social Security Act for which payment is 
     made under such title, and include the following:
       (1) Inpatient and outpatient hospital services.
       (2) Inpatient and outpatient rehabilitation services.
       (3) Covered skilled nursing facility services.
       (4) Home health services.
       (5) Physical or occupational therapy or speech-language 
     pathology services.
       (6) Items and services furnished to such individuals 
     determined to have end stage renal disease.
       (7) Partial hospitalization services and other mental 
     health services.
       (8) Any other service for which payment is made under such 
     title as the Secretary determines to be appropriate.

     SEC. 546. GAO REPORT ON IMPACT OF THE EMERGENCY MEDICAL 
                   TREATMENT AND ACTIVE LABOR ACT (EMTALA) ON 
                   HOSPITAL EMERGENCY DEPARTMENTS.

       (a) Report.--The Comptroller General of the United States 
     shall submit a report to the Committee on Commerce and the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate by May 1, 2001, on 
     the effect of the Emergency Medical Treatment and Active 
     Labor Act on hospitals, emergency physicians, and physicians 
     covering emergency department call throughout the United 
     States.
       (b) Report Requirements.--The report should evaluate--
       (1) the extent to which hospitals, emergency physicians, 
     and physicians covering emergency department call provide 
     uncompensated services in relation to the requirements of 
     EMTALA;
       (2) the extent to which the regulatory requirements and 
     enforcement of EMTALA have expanded beyond the legislation's 
     original intent;
       (3) estimates for the total dollar amount of EMTALA-related 
     care uncompensated costs to emergency physicians, physicians 
     covering emergency department call, hospital emergency 
     departments, and other hospital services;
       (4) the extent to which different portions of the United 
     States may be experiencing different levels of uncompensated 
     EMTALA-related care;
       (5) the extent to which EMTALA would be classified as an 
     unfunded mandate if it were enacted today;
       (6) the extent to which States have programs to provide 
     financial support for such uncompensated care;
       (7) possible sources of funds, including medicare hospital 
     bad debt accounts, that are available to hospitals to assist 
     with the cost of such uncompensated care; and
       (8) the financial strain that illegal immigration 
     populations, the uninsured, and the underinsured place on 
     hospital emergency departments, other hospital services, 
     emergency physicians, and physicians covering emergency 
     department call.
       (c) Definition.--In this section, the terms ``Emergency 
     Medical Treatment and Active Labor Act'' and ``EMTALA'' mean 
     section 1867 of the Social Security Act (42 U.S.C. 1395dd).

     SEC. 547. CLARIFICATION OF APPLICATION OF TEMPORARY PAYMENT 
                   INCREASES FOR 2001.

       (a) Inpatient Hospital Services.--The payment increase 
     provided under the following sections shall not apply to 
     discharges occurring after fiscal year 2001 and shall not be 
     taken into account in calculating the payment amounts

[[Page 26948]]

     applicable for discharges occurring after such fiscal year:
       (1) Section 301(b)(2)(A) (relating to acute care hospital 
     payment update).
       (2) Section 302(b) (relating to IME percentage adjustment).
       (3) Section 303(b)(2) (relating to DSH payments).
       (b) Skilled Nursing Facility Services.--The payment 
     increase provided under section 311(b)(2) (relating to 
     covered skilled nursing facility services) shall not apply to 
     services furnished after fiscal year 2001 and shall not be 
     taken into account in calculating the payment amounts 
     applicable for services furnished after such fiscal year.
       (c) Home Health Services.--
       (1) Transitional allowance for full marketbasket 
     increase.--The payment increase provided under section 
     502(b)(1)(B) shall not apply to episodes and visits ending 
     after fiscal year 2001 and shall not be taken into account in 
     calculating the payment amounts applicable for subsequent 
     episodes and visits.
       (2) Temporary increase for rural home health services.--The 
     payment increase provided under section 508(a) for the period 
     beginning on April 1, 2001, and ending on September 30, 2002, 
     shall not apply to episodes and visits ending after such 
     period, and shall not be taken into account in calculating 
     the payment amounts applicable for episodes and visits 
     occurring after such period.
       (d) Calendar Year 2001 Provisions.--The payment increase 
     provided under the following sections shall not apply after 
     calendar year 2001 and shall not be taken into account in 
     calculating the payment amounts applicable for items and 
     services furnished after such year:
       (1) Section 401(c)(2) (relating to covered OPD services).
       (2) Section 422(e)(2) (relating to renal dialysis services 
     paid for on a composite rate basis).
       (3) Section 423(a)(2)(B) (relating to ambulance services).
       (4) Section 425(b)(2) (relating to durable medical 
     equipment).
       (5) Section 426(b)(2) (relating to prosthetic devices and 
     orthotics and prosthetics).

 TITLE VI--PROVISIONS RELATING TO PART C (MEDICARE+CHOICE PROGRAM) AND 
                 OTHER MEDICARE MANAGED CARE PROVISIONS

              Subtitle A--Medicare+Choice Payment Reforms

     SEC. 601. INCREASE IN MINIMUM PAYMENT AMOUNT.

       (a) In General.--Section 1853(c)(1)(B) (42 U.S.C. 1395w-
     23(c)(1)(B)) is amended--
       (1) by redesignating clause (ii) as clause (iv);
       (2) by inserting after clause (i) the following new 
     clauses:
       ``(ii) For 1999 and 2000, the minimum amount determined 
     under clause (i) or this clause, respectively, for the 
     preceding year, increased by the national per capita 
     Medicare+Choice growth percentage described in paragraph 
     (6)(A) applicable to 1999 or 2000, respectively.
       ``(iii)(I) Subject to subclause (II), for 2001, for any 
     area in a Metropolitan Statistical Area with a population of 
     more than 250,000, $525, and for any other area $475.
       ``(II) In the case of an area outside the 50 States and the 
     District of Columbia, the amount specified in this clause 
     shall not exceed 120 percent of the amount determined under 
     clause (ii) for such area for 2000.''; and
       (3) in clause (iv), as so redesignated--
       (A) by striking ``a succeeding year'' and inserting ``2002 
     and each succeeding year''; and
       (B) by striking ``clause (i)'' and inserting ``clause 
     (iii)''.
       (b) Special Rule for January and February of 2001.--
       (1) In general.--Notwithstanding the amendments made by 
     subsection (a), for purposes of making payments under section 
     1853 of the Social Security Act (42 U.S.C. 1395w-23) for 
     January and February 2001, the annual Medicare+Choice 
     capitation rate for a Medicare+Choice payment area shall be 
     calculated, and the excess amount under section 1854(f)(1)(B) 
     of such Act (42 U.S.C. 1395w-24(f)(1)(B)) shall be 
     determined, as if such amendments had not been enacted.
       (2) Construction.--Paragraph (1) shall not be taken into 
     account in computing such capitation rate for 2002 and 
     subsequent years.

     SEC. 602. INCREASE IN MINIMUM PERCENTAGE INCREASE.

       (a) In General.--Section 1853(c)(1)(C) (42 U.S.C. 1395w-
     23(c)(1)(C)) is amended--
       (1) by redesignating clause (ii) as clause (iv);
       (2) by inserting after clause (i) the following new 
     clauses:
       ``(ii) For 1999 and 2000, 102 percent of the annual 
     Medicare+Choice capitation rate under this paragraph for the 
     area for the previous year.
       ``(iii) For 2001, 103 percent of the annual Medicare+Choice 
     capitation rate under this paragraph for the area for 
     2000.''; and
       (3) in clause (iv), as so redesignated, by striking ``a 
     subsequent year'' and inserting ``2002 and each succeeding 
     year''.
       (b) Application of Special Rule for January and February of 
     2001.--The provisions of section 601(b) shall apply with 
     respect to the amendments made by subsection (a) in the same 
     manner as they apply to the amendments made by section 
     601(a).

     SEC. 603. PHASE-IN OF RISK ADJUSTMENT.

       Section 1853(a)(3)(C) (42 U.S.C. 1395w-23(a)(3)(C)) is 
     amended--
       (1) in clause (ii)--
       (A) in subclause (I), by striking ``and 2001'' and 
     inserting ``and each succeeding year through 2003'' and by 
     striking ``and'' at the end; and
       (B) by striking subclause (II) and inserting the following 
     new subclauses:

       ``(II) 30 percent of such capitation rate in 2004;
       ``(III) 50 percent of such capitation rate in 2005;
       ``(IV) 75 percent of such capitation rate in 2006; and
       ``(V) 100 percent of such capitation rate in 2007 and 
     succeeding years.''; and

       (2) by adding at the end the following new clause:
       ``(iii) Data for risk adjustment methodology.--Such risk 
     adjustment methodology for 2004 and each succeeding year, 
     shall be based on data from inpatient hospital and ambulatory 
     settings.''.

     SEC. 604. TRANSITION TO REVISED MEDICARE+CHOICE PAYMENT 
                   RATES.

       (a) Announcement of Revised Medicare+Choice Payment 
     Rates.--Within 2 weeks after the date of the enactment of 
     this Act, the Secretary of Health and Human Services shall 
     determine, and shall announce (in a manner intended to 
     provide notice to interested parties) Medicare+Choice 
     capitation rates under section 1853 of the Social Security 
     Act (42 U.S.C. 1395w-23) for 2001, revised in accordance with 
     the provisions of this Act.
       (b) Reentry Into Program Permitted for Medicare+Choice 
     Programs.--A Medicare+Choice organization that provided 
     notice to the Secretary of Health and Human Services before 
     the date of the enactment of this Act that it was terminating 
     its contract under part C of title XVIII of the Social 
     Security Act or was reducing the service area of a 
     Medicare+Choice plan offered under such part shall be 
     permitted to continue participation under such part, or to 
     maintain the service area of such plan, for 2001 if it 
     submits the Secretary with the information described in 
     section 1854(a)(1) of the Social Security Act (42 U.S.C. 
     1395w-24(a)(1)) within 2 weeks after the date revised rates 
     are announced by the Secretary under subsection (a).
       (c) Revised Submission of Proposed Premiums and Related 
     Information.--If--
       (1) a Medicare+Choice organization provided notice to the 
     Secretary of Health and Human Services as of July 3, 2000, 
     that it was renewing its contract under part C of title XVIII 
     of the Social Security Act for all or part of the service 
     area or areas served under its current contract, and
       (2) any part of the service area or areas addressed in such 
     notice includes a payment area for which the Medicare+Choice 
     capitation rate under section 1853(c) of such Act (42 U.S.C. 
     1395w-23(c)) for 2001, as determined under subsection (a), is 
     higher than the rate previously determined for such year,

     such organization shall revise its submission of the 
     information described in section 1854(a)(1) of the Social 
     Security Act (42 U.S.C. 1395w-24(a)(1)), and shall submit 
     such revised information to the Secretary, within 2 weeks 
     after the date revised rates are announced by the Secretary 
     under subsection (a). In making such submission, the 
     organization may only reduce beneficiary premiums, reduce 
     beneficiary cost-sharing, enhance benefits, utilize the 
     stabilization fund described in section 1854(f)(2) of such 
     Act (42 U.S.C. 1395w-24(f)(2)), or stabilize or enhance 
     beneficiary access to providers (so long as such 
     stabilization or enhancement does not result in increased 
     beneficiary premiums, increased beneficiary cost-sharing, or 
     reduced benefits).
       (d) Waiver of Limits on Stabilization Fund.--Any regulatory 
     provision that limits the proportion of the excess amount 
     that can be withheld in such stabilization fund for a 
     contract period shall not apply with respect to submissions 
     described in subsections (b) and (c).
       (e) Disregard of New Rate Announcement in Applying Pass-
     Through for New National Coverage Determinations.--For 
     purposes of applying section 1852(a)(5) of the Social 
     Security Act (42 U.S.C. 1395w-22(a)(5)), the announcement of 
     revised rates under subsection (a) shall not be treated as an 
     announcement under section 1853(b) of such Act (42 U.S.C. 
     1395w-23(b)).

     SEC. 605. REVISION OF PAYMENT RATES FOR ESRD PATIENTS 
                   ENROLLED IN MEDICARE+CHOICE PLANS.

       (a) In General.--Section 1853(a)(1)(B) (42 U.S.C. 1395w-
     23(a)(1)(B)) is amended by adding at the end the following: 
     ``In establishing such rates, the Secretary shall provide for 
     appropriate adjustments to increase each rate to reflect the 
     demonstration rate (including the risk adjustment methodology 
     associated with such rate) of the social health maintenance 
     organization end-stage renal disease capitation 
     demonstrations (established by section 2355 of the Deficit 
     Reduction Act of 1984, as amended by section 13567(b) of the 
     Omnibus Budget Reconciliation Act of 1993), and shall compute 
     such rates by taking into account such factors as renal 
     treatment modality, age, and the underlying cause of the end-
     stage renal disease.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to payments for months beginning with January 
     2002.
       (c) Publication.--Not later than 6 months after the date of 
     the enactment of this Act, the Secretary of Health and Human 
     Services shall publish for public comment a description of 
     the appropriate adjustments described in the last sentence of 
     section 1853(a)(1)(B) of the Social Security Act (42 U.S.C. 
     1395w-23(a)(1)(B)), as

[[Page 26949]]

     added by subsection (a). The Secretary shall publish such 
     adjustments in final form by not later than July 1, 2001, so 
     that the amendment made by subsection (a) is implemented on a 
     timely basis consistent with subsection (b).

     SEC. 606. PERMITTING PREMIUM REDUCTIONS AS ADDITIONAL 
                   BENEFITS UNDER MEDICARE+CHOICE PLANS.

       (a) In General.--
       (1) Authorization of part b premium reductions.--Section 
     1854(f)(1) (42 U.S.C. 1395w-24(f)(1)) is amended--
       (A) by redesignating subparagraph (E) as subparagraph (F); 
     and
       (B) by inserting after subparagraph (D) the following new 
     subparagraph:
       ``(E) Premium reductions.--
       ``(i) In general.--Subject to clause (ii), as part of 
     providing any additional benefits required under subparagraph 
     (A), a Medicare+Choice organization may elect a reduction in 
     its payments under section 1853(a)(1)(A) with respect to a 
     Medicare+Choice plan and the Secretary shall apply such 
     reduction to reduce the premium under section 1839 of each 
     enrollee in such plan as provided in section 1840(i).
       ``(ii) Amount of reduction.--The amount of the reduction 
     under clause (i) with respect to any enrollee in a 
     Medicare+Choice plan--

       ``(I) may not exceed 125 percent of the premium described 
     under section 1839(a)(3); and
       ``(II) shall apply uniformly to each enrollee of the 
     Medicare+Choice plan to which such reduction applies.''.

       (2) Conforming amendments.--
       (A) Adjustment of payments to medicare+choice 
     organizations.--Section 1853(a)(1)(A) (42 U.S.C. 1395w-
     23(a)(1)(A)) is amended by inserting ``reduced by the amount 
     of any reduction elected under section 1854(f)(1)(E) and'' 
     after ``for that area,''.
       (B) Adjustment and payment of part b premiums.--
       (i) Adjustment of premiums.--Section 1839(a)(2) (42 U.S.C. 
     1395r(a)(2)) is amended by striking ``shall'' and all that 
     follows and inserting the following: ``shall be the amount 
     determined under paragraph (3), adjusted as required in 
     accordance with subsections (b), (c), and (f), and to reflect 
     80 percent of any reduction elected under section 
     1854(f)(1)(E).''.
       (ii) Payment of premiums.--Section 1840 (42 U.S.C. 1395s) 
     is amended by adding at the end the following new subsection:
       ``(i) In the case of an individual enrolled in a 
     Medicare+Choice plan, the Secretary shall provide for 
     necessary adjustments of the monthly beneficiary premium to 
     reflect 80 percent of any reduction elected under section 
     1854(f)(1)(E). To the extent to which the Secretary 
     determines that such an adjustment is appropriate, with the 
     concurrence of any agency responsible for the administration 
     of such benefits, such premium adjustment may be provided 
     directly, as an adjustment to any social security, railroad 
     retirement, or civil service retirement benefits, or, in the 
     case of an individual who receives medical assistance under 
     title XIX for medicare costs described in section 
     1905(p)(3)(A)(ii), as an adjustment to the amount otherwise 
     owed by the State for such medical assistance.''.
       (C) Information comparing plan premiums under part c.--
     Section 1851(d)(4)(B) (42 U.S.C. 1395w-21(d)(4)(B)) is 
     amended--
       (i) by striking ``Premiums.--The'' and inserting 
     ``Premiums.--
       ``(i) In general.--The''; and
       (ii) by adding at the end the following new clause:
       ``(ii) Reductions.--The reduction in part B premiums, if 
     any.''.
       (D) Treatment of reduction for purposes of determining 
     government contribution under part b.--Section 1844 (42 
     U.S.C. 1395w) is amended by adding at the end the following 
     new subsection:
       ``(c) The Secretary shall determine the Government 
     contribution under subparagraphs (A) and (B) of subsection 
     (a)(1) without regard to any premium reduction resulting from 
     an election under section 1854(f)(1)(E).''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to years beginning with 2003.

     SEC. 607. FULL IMPLEMENTATION OF RISK ADJUSTMENT FOR 
                   CONGESTIVE HEART FAILURE ENROLLEES FOR 2001.

       (a) In General.--Section 1853(a)(3)(C) (42 U.S.C. 1395w-
     23(a)(3)(C)) is amended--
       (1) in clause (ii), by striking ``Such risk adjustment'' 
     and inserting ``Except as provided in clause (iii), such risk 
     adjustment''; and
       (2) by adding at the end the following new clause:
       ``(iii) Full implementation of risk adjustment for 
     congestive heart failure enrollees for 2001.--

       ``(I) Exemption from phase-in.--Subject to subclause (II), 
     the Secretary shall fully implement the risk adjustment 
     methodology described in clause (i) with respect to each 
     individual who has had a qualifying congestive heart failure 
     inpatient diagnosis (as determined by the Secretary under 
     such risk adjustment methodology) during the period beginning 
     on July 1, 1999, and ending on June 30, 2000, and who is 
     enrolled in a coordinated care plan that is the only 
     coordinated care plan offered on January 1, 2001, in the 
     service area of the individual.
       ``(II) Period of application.--Subclause (I) shall only 
     apply during the 1-year period beginning on January 1, 
     2001.''.

       (b) Exclusion From Determination of the Budget Neutrality 
     Factor.--Section 1853(c)(5) (42 U.S.C. 1395w-23(c)(5)) is 
     amended by striking ``subsection (i)'' and inserting 
     ``subsections (a)(3)(C)(iii) and (i)''.

     SEC. 608. EXPANSION OF APPLICATION OF MEDICARE+CHOICE NEW 
                   ENTRY BONUS.

       (a) In General.--Section 1853(i)(1) (42 U.S.C. 1395w-
     23(i)(1)) is amended in the matter preceding subparagraph (A) 
     by inserting ``, or filed notice with the Secretary as of 
     October 3, 2000, that they will not be offering such a plan 
     as of January 1, 2001'' after ``January 1, 2000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply as if included in the enactment of BBRA.

     SEC. 609. REPORT ON INCLUSION OF CERTAIN COSTS OF THE 
                   DEPARTMENT OF VETERANS AFFAIRS AND MILITARY 
                   FACILITY SERVICES IN CALCULATING 
                   MEDICARE+CHOICE PAYMENT RATES.

       The Secretary of Health and Human Services shall report to 
     Congress by not later than January 1, 2003, on a method to 
     phase-in the costs of military facility services furnished by 
     the Department of Veterans Affairs, and the costs of military 
     facility services furnished by the Department of Defense, to 
     medicare-eligible beneficiaries in the calculation of an 
     area's Medicare+Choice capitation payment. Such report shall 
     include on a county-by-county basis--
       (1) the actual or estimated cost of such services to 
     medicare-eligible beneficiaries;
       (2) the change in Medicare+Choice capitation payment rates 
     if such costs are included in the calculation of payment 
     rates;
       (3) one or more proposals for the implementation of payment 
     adjustments to Medicare+Choice plans in counties where the 
     payment rate has been affected due to the failure to 
     calculate the cost of such services to medicare-eligible 
     beneficiaries; and
       (4) a system to ensure that when a Medicare+Choice enrollee 
     receives covered services through a facility of the 
     Department of Veterans Affairs or the Department of Defense 
     there is an appropriate payment recovery to the medicare 
     program under title XVIII of the Social Security Act.

               Subtitle B--Other Medicare+Choice Reforms

     SEC. 611. PAYMENT OF ADDITIONAL AMOUNTS FOR NEW BENEFITS 
                   COVERED DURING A CONTRACT TERM.

       (a) In General.--Section 1853(c)(7) (42 U.S.C. 1395w-
     23(c)(7)) is amended to read as follows:
       ``(7) Adjustment for national coverage determinations and 
     legislative changes in benefits.--If the Secretary makes a 
     determination with respect to coverage under this title or 
     there is a change in benefits required to be provided under 
     this part that the Secretary projects will result in a 
     significant increase in the costs to Medicare+Choice of 
     providing benefits under contracts under this part (for 
     periods after any period described in section 1852(a)(5)), 
     the Secretary shall adjust appropriately the payments to such 
     organizations under this part. Such projection and adjustment 
     shall be based on an analysis by the Chief Actuary of the 
     Health Care Financing Administration of the actuarial costs 
     associated with the new benefits.''.
       (b) Conforming Amendment.--Section 1852(a)(5) (42 U.S.C. 
     1395w-22(a)(5)) is amended--
       (1) in the heading, by inserting ``and legislative changes 
     in benefits'' after ``National coverage determinations'';
       (2) by inserting ``or legislative change in benefits 
     required to be provided under this part'' after ``national 
     coverage determination'';
       (3) in subparagraph (A), by inserting ``or legislative 
     change in benefits'' after ``such determination'';
       (4) in subparagraph (B), by inserting ``or legislative 
     change'' after ``if such coverage determination''; and
       (5) by adding at the end the following:
     ``The projection under the previous sentence shall be based 
     on an analysis by the Chief Actuary of the Health Care 
     Financing Administration of the actuarial costs associated 
     with the coverage determination or legislative change in 
     benefits.''.
       (c) Effective Date.--The amendments made by this section 
     are effective on the date of the enactment of this Act and 
     shall apply to national coverage determinations and 
     legislative changes in benefits occurring on or after such 
     date.

     SEC. 612. RESTRICTION ON IMPLEMENTATION OF SIGNIFICANT NEW 
                   REGULATORY REQUIREMENTS MIDYEAR.

       (a) In General.--Section 1856(b) (42 U.S.C. 1395w-26(b)) is 
     amended by adding at the end the following new paragraph:
       ``(4) Prohibition of midyear implementation of significant 
     new regulatory requirements.--The Secretary may not 
     implement, other than at the beginning of a calendar year, 
     regulations under this section that impose new, significant 
     regulatory requirements on a Medicare+Choice organization or 
     plan.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on the date of the enactment of this Act.

     SEC. 613. TIMELY APPROVAL OF MARKETING MATERIAL THAT FOLLOWS 
                   MODEL MARKETING LANGUAGE.

       (a) In General.--Section 1851(h) (42 U.S.C. 1395w-21(h)) is 
     amended--
       (1) in paragraph (1)(A), by inserting ``(or 10 days in the 
     case described in paragraph (5))'' after ``45 days''; and
       (2) by adding at the end the following new paragraph:
       ``(5) Special treatment of marketing material following 
     model marketing language.--In the case of marketing material 
     of an

[[Page 26950]]

     organization that uses, without modification, proposed model 
     language specified by the Secretary, the period specified in 
     paragraph (1)(A) shall be reduced from 45 days to 10 days.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to marketing material submitted on or after 
     January 1, 2001.

     SEC. 614. AVOIDING DUPLICATIVE REGULATION.

       (a) In General.--Section 1856(b)(3)(B) (42 U.S.C. 1395w-
     26(b)(3)(B)) is amended--
       (1) in clause (i), by inserting ``(including cost-sharing 
     requirements)'' after ``Benefit requirements''; and
       (2) by adding at the end the following new clause:
       ``(iv) Requirements relating to marketing materials and 
     summaries and schedules of benefits regarding a 
     Medicare+Choice plan.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect on the date of the enactment of this Act.

     SEC. 615. ELECTION OF UNIFORM LOCAL COVERAGE POLICY FOR 
                   MEDICARE+CHOICE PLAN COVERING MULTIPLE 
                   LOCALITIES.

       Section 1852(a)(2) (42 U.S.C. 1395w-22(a)(2)) is amended by 
     adding at the end the following new subparagraph:
       ``(C) Election of uniform coverage policy.--In the case of 
     a Medicare+Choice organization that offers a Medicare+Choice 
     plan in an area in which more than one local coverage policy 
     is applied with respect to different parts of the area, the 
     organization may elect to have the local coverage policy for 
     the part of the area that is most beneficial to 
     Medicare+Choice enrollees (as identified by the Secretary) 
     apply with respect to all Medicare+Choice enrollees enrolled 
     in the plan.''.

     SEC. 616. ELIMINATING HEALTH DISPARITIES IN MEDICARE+CHOICE 
                   PROGRAM.

       (a) Quality Assurance Program Focus on Racial and Ethnic 
     Minorities.--Subparagraphs (A) and (B) of section 1852(e)(2) 
     (42 U.S.C. 1395w-22(e)(2)) are each amended by adding at the 
     end the following:
     ``Such program shall include a separate focus (with respect 
     to all the elements described in this subparagraph) on racial 
     and ethnic minorities.''.
       (b) Report.--Section 1852(e) (42 U.S.C. 1395w-22(e)) is 
     amended by adding at the end the following new paragraph:
       ``(5) Report to congress.--
       ``(A) In general.--Not later than 2 years after the date of 
     the enactment of this paragraph, and biennially thereafter, 
     the Secretary shall submit to Congress a report regarding how 
     quality assurance programs conducted under this subsection 
     focus on racial and ethnic minorities.
       ``(B) Contents of report.--Each such report shall include 
     the following:
       ``(i) A description of the means by which such programs 
     focus on such racial and ethnic minorities.
       ``(ii) An evaluation of the impact of such programs on 
     eliminating health disparities and on improving health 
     outcomes, continuity and coordination of care, management of 
     chronic conditions, and consumer satisfaction.
       ``(iii) Recommendations on ways to reduce clinical outcome 
     disparities among racial and ethnic minorities.''.

     SEC. 617. MEDICARE+CHOICE PROGRAM COMPATIBILITY WITH EMPLOYER 
                   OR UNION GROUP HEALTH PLANS.

       (a) In General.--Section 1857 (42 U.S.C. 1395w-27) is 
     amended by adding at the end the following new subsection:
       ``(i) Medicare+Choice Program Compatibility With Employer 
     or Union Group Health Plans.--To facilitate the offering of 
     Medicare+Choice plans under contracts between Medicare+Choice 
     organizations and employers, labor organizations, or the 
     trustees of a fund established by 1 or more employers or 
     labor organizations (or combination thereof) to furnish 
     benefits to the entity's employees, former employees (or 
     combination thereof) or members or former members (or 
     combination thereof) of the labor organizations, the 
     Secretary may waive or modify requirements that hinder the 
     design of, the offering of, or the enrollment in such 
     Medicare+Choice plans.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to years beginning with 2001.

     SEC. 618. SPECIAL MEDIGAP ENROLLMENT ANTIDISCRIMINATION 
                   PROVISION FOR CERTAIN BENEFICIARIES.

       (a) Disenrollment Window in Accordance With Beneficiary's 
     Circumstance.--Section 1882(s)(3) (42 U.S.C. 1395ss(s)(3)) is 
     amended--
       (1) in subparagraph (A), in the matter following clause 
     (iii), by striking ``, subject to subparagraph (E), seeks to 
     enroll under the policy not later than 63 days after the date 
     of the termination of enrollment described in such 
     subparagraph'' and inserting ``seeks to enroll under the 
     policy during the period specified in subparagraph (E)''; and
       (2) by striking subparagraph (E) and inserting the 
     following new subparagraph:
       ``(E) For purposes of subparagraph (A), the time period 
     specified in this subparagraph is--
       ``(i) in the case of an individual described in 
     subparagraph (B)(i), the period beginning on the date the 
     individual receives a notice of termination or cessation of 
     all supplemental health benefits (or, if no such notice is 
     received, notice that a claim has been denied because of such 
     a termination or cessation) and ending on the date that is 63 
     days after the applicable notice;
       ``(ii) in the case of an individual described in clause 
     (ii), (iii), (v), or (vi) of subparagraph (B) whose 
     enrollment is terminated involuntarily, the period beginning 
     on the date that the individual receives a notice of 
     termination and ending on the date that is 63 days after the 
     date the applicable coverage is terminated;
       ``(iii) in the case of an individual described in 
     subparagraph (B)(iv)(I), the period beginning on the earlier 
     of (I) the date that the individual receives a notice of 
     termination, a notice of the issuer's bankruptcy or 
     insolvency, or other such similar notice, if any, and (II) 
     the date that the applicable coverage is terminated, and 
     ending on the date that is 63 days after the date the 
     coverage is terminated;
       ``(iv) in the case of an individual described in clause 
     (ii), (iii), (iv)(II), (iv)(III), (v), or (vi) of 
     subparagraph (B) who disenrolls voluntarily, the period 
     beginning on the date that is 60 days before the effective 
     date of the disenrollment and ending on the date that is 63 
     days after such effective date; and
       ``(v) in the case of an individual described in 
     subparagraph (B) but not described in the preceding 
     provisions of this subparagraph, the period beginning on the 
     effective date of the disenrollment and ending on the date 
     that is 63 days after such effective date.''.
       (b) Extended Medigap Access for Interrupted Trial 
     Periods.--Section 1882(s)(3) (42 U.S.C. 1395ss(s)(3)), as 
     amended by subsection (a), is further amended by adding at 
     the end the following new subparagraph:
       ``(F)(i) Subject to clause (ii), for purposes of this 
     paragraph--
       ``(I) in the case of an individual described in 
     subparagraph (B)(v) (or deemed to be so described, pursuant 
     to this subparagraph) whose enrollment with an organization 
     or provider described in subclause (II) of such subparagraph 
     is involuntarily terminated within the first 12 months of 
     such enrollment, and who, without an intervening enrollment, 
     enrolls with another such organization or provider, such 
     subsequent enrollment shall be deemed to be an initial 
     enrollment described in such subparagraph; and
       ``(II) in the case of an individual described in clause 
     (vi) of subparagraph (B) (or deemed to be so described, 
     pursuant to this subparagraph) whose enrollment with a plan 
     or in a program described in such clause is involuntarily 
     terminated within the first 12 months of such enrollment, and 
     who, without an intervening enrollment, enrolls in another 
     such plan or program, such subsequent enrollment shall be 
     deemed to be an initial enrollment described in such clause.
       ``(ii) For purposes of clauses (v) and (vi) of subparagraph 
     (B), no enrollment of an individual with an organization or 
     provider described in clause (v)(II), or with a plan or in a 
     program described in clause (vi), may be deemed to be an 
     initial enrollment under this clause after the 2-year period 
     beginning on the date on which the individual first enrolled 
     with such an organization, provider, plan, or program.''.

     SEC. 619. RESTORING EFFECTIVE DATE OF ELECTIONS AND CHANGES 
                   OF ELECTIONS OF MEDICARE+CHOICE PLANS.

       (a) Open Enrollment.--Section 1851(f)(2) (42 U.S.C. 1395w-
     21(f)(2)) is amended by striking ``, except that if such 
     election or change is made after the 10th day of any calendar 
     month, then the election or change shall not take effect 
     until the first day of the second calendar month following 
     the date on which the election or change is made''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to elections and changes of coverage made on or 
     after June 1, 2001.

     SEC. 620. PERMITTING ESRD BENEFICIARIES TO ENROLL IN ANOTHER 
                   MEDICARE+CHOICE PLAN IF THE PLAN IN WHICH THEY 
                   ARE ENROLLED IS TERMINATED.

       (a) In General.--Section 1851(a)(3)(B) (42 U.S.C. 1395w-
     21(a)(3)(B)) is amended by striking ``except that'' and all 
     that follows and inserting the following: ``except that--
       ``(i) an individual who develops end-stage renal disease 
     while enrolled in a Medicare+Choice plan may continue to be 
     enrolled in that plan; and
       ``(ii) in the case of such an individual who is enrolled in 
     a Medicare+Choice plan under clause (i) (or subsequently 
     under this clause), if the enrollment is discontinued under 
     circumstances described in section 1851(e)(4)(A), then the 
     individual will be treated as a `Medicare+Choice eligible 
     individual' for purposes of electing to continue enrollment 
     in another Medicare+Choice plan.''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to terminations and discontinuations occurring on or 
     after the date of the enactment of this Act.
       (2) Application to prior plan terminations.--Clause (ii) of 
     section 1851(a)(3)(B) of the Social Security Act (as inserted 
     by subsection (a)) shall also apply to individuals whose 
     enrollment in a Medicare+Choice plan was terminated or 
     discontinued after December 31, 1998, and before the date of 
     the enactment of this Act. In applying this paragraph, such 
     an individual shall be treated, for purposes of part C of 
     title XVIII of the Social Security Act, as having 
     discontinued enrollment in such a plan as of the date of the 
     enactment of this Act.

     SEC. 621. PROVIDING CHOICE FOR SKILLED NURSING FACILITY 
                   SERVICES UNDER THE MEDICARE+CHOICE PROGRAM.

       (a) In General.--Section 1852 (42 U.S.C. 1395w-22) is 
     amended by adding at the end the following new subsection:

[[Page 26951]]

       ``(l) Return to Home Skilled Nursing Facilities for Covered 
     Post-Hospital Extended Care Services.--
       ``(1) Ensuring return to home snf.--
       ``(A) In general.--In providing coverage of post-hospital 
     extended care services, a Medicare+Choice plan shall provide 
     for such coverage through a home skilled nursing facility if 
     the following conditions are met:
       ``(i) Enrollee election.--The enrollee elects to receive 
     such coverage through such facility.
       ``(ii) SNF agreement.--The facility has a contract with the 
     Medicare+Choice organization for the provision of such 
     services, or the facility agrees to accept substantially 
     similar payment under the same terms and conditions that 
     apply to similarly situated skilled nursing facilities that 
     are under contract with the Medicare+Choice organization for 
     the provision of such services and through which the enrollee 
     would otherwise receive such services.
       ``(B) Manner of payment to home snf.--The organization 
     shall provide payment to the home skilled nursing facility 
     consistent with the contract or the agreement described in 
     subparagraph (A)(ii), as the case may be.
       ``(2) No less favorable coverage.--The coverage provided 
     under paragraph (1) (including scope of services, cost-
     sharing, and other criteria of coverage) shall be no less 
     favorable to the enrollee than the coverage that would be 
     provided to the enrollee with respect to a skilled nursing 
     facility the post-hospital extended care services of which 
     are otherwise covered under the Medicare+Choice plan.
       ``(3) Rule of construction.--Nothing in this subsection 
     shall be construed to do the following:
       ``(A) To require coverage through a skilled nursing 
     facility that is not otherwise qualified to provide benefits 
     under part A for medicare beneficiaries not enrolled in a 
     Medicare+Choice plan.
       ``(B) To prevent a skilled nursing facility from refusing 
     to accept, or imposing conditions upon the acceptance of, an 
     enrollee for the receipt of post-hospital extended care 
     services.
       ``(4) Definitions.--In this subsection:
       ``(A) Home skilled nursing facility.--The term `home 
     skilled nursing facility' means, with respect to an enrollee 
     who is entitled to receive post-hospital extended care 
     services under a Medicare+Choice plan, any of the following 
     skilled nursing facilities:
       ``(i) SNF residence at time of admission.--The skilled 
     nursing facility in which the enrollee resided at the time of 
     admission to the hospital preceding the receipt of such post-
     hospital extended care services.
       ``(ii) SNF in continuing care retirement community.--A 
     skilled nursing facility that is providing such services 
     through a continuing care retirement community (as defined in 
     subparagraph (B)) which provided residence to the enrollee at 
     the time of such admission.
       ``(iii) SNF residence of spouse at time of discharge.--The 
     skilled nursing facility in which the spouse of the enrollee 
     is residing at the time of discharge from such hospital.
       ``(B) Continuing care retirement community.--The term 
     `continuing care retirement community' means, with respect to 
     an enrollee in a Medicare+Choice plan, an arrangement under 
     which housing and health-related services are provided (or 
     arranged) through an organization for the enrollee under an 
     agreement that is effective for the life of the enrollee or 
     for a specified period.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to contracts entered into or renewed 
     on or after the date of the enactment of this Act.
       (c) MedPAC Study.--
       (1) Study.--The Medicare Payment Advisory Commission shall 
     conduct a study analyzing the effects of the amendment made 
     by subsection (a) on Medicare+Choice organizations. In 
     conducting such study, the Commission shall examine the 
     effects (if any) such amendment has had--
       (A) on the scope of additional benefits provided under the 
     Medicare+Choice program;
       (B) on the administrative and other costs incurred by 
     Medicare+Choice organizations; and
       (C) on the contractual relationships between such 
     organizations and skilled nursing facilities.
       (2) Report.--Not later than 2 years after the date of the 
     enactment of this Act, the Commission shall submit to 
     Congress a report on the study conducted under paragraph (1).

     SEC. 622. PROVIDING FOR ACCOUNTABILITY OF MEDICARE+CHOICE 
                   PLANS.

       (a) Mandatory Review of ACR Submissions by the Chief 
     Actuary of the Health Care Financing Administration.--Section 
     1854(a)(5)(A) (42 U.S.C. 1395w-24(a)(5)(A)) is amended--
       (1) by striking ``value'' and inserting ``values''; and
       (2) by adding at the end the following: ``The Chief Actuary 
     of the Health Care Financing Administration shall review the 
     actuarial assumptions and data used by the Medicare+Choice 
     organization with respect to such rates, amounts, and values 
     so submitted to determine the appropriateness of such 
     assumptions and data.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to submissions made on or after May 1, 2001.

     SEC. 623. INCREASED CIVIL MONEY PENALTY FOR MEDICARE+CHOICE 
                   ORGANIZATIONS THAT TERMINATE CONTRACTS MID-
                   YEAR.

       (a) In General.--Section 1857(g)(3) (42 U.S.C. 1395w-
     27(g)(3)) is amended by adding at the end the following new 
     subparagraph:
       ``(D) Civil monetary penalties of not more than $100,000, 
     or such higher amount as the Secretary may establish by 
     regulation, where the finding under subsection (c)(2)(A) is 
     based on the organization's termination of its contract under 
     this section other than at a time and in a manner provided 
     for under subsection (a).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to terminations occurring after the date of the 
     enactment of this Act.

                 Subtitle C--Other Managed Care Reforms

     SEC. 631. 1-YEAR EXTENSION OF SOCIAL HEALTH MAINTENANCE 
                   ORGANIZATION (SHMO) DEMONSTRATION PROJECT.

       Section 4018(b)(1) of the Omnibus Budget Reconciliation Act 
     of 1987, as amended by section 531(a)(1) of BBRA (113 Stat. 
     1501A-388), is amended by striking ``18 months'' and 
     inserting ``30 months''.

     SEC. 632. REVISED TERMS AND CONDITIONS FOR EXTENSION OF 
                   MEDICARE COMMUNITY NURSING ORGANIZATION (CNO) 
                   DEMONSTRATION PROJECT.

       (a) In General.--Section 532 of BBRA (113 Stat. 1501A-388) 
     is amended--
       (1) in subsection (a), by striking the second sentence; and
       (2) by striking subsection (b) and inserting the following 
     new subsection:
       ``(b) Terms and Conditions.--
       ``(1) January through september 2000.--For the 9-month 
     period beginning with January 2000, any such demonstration 
     project shall be conducted under the same terms and 
     conditions as applied to such demonstration during 1999.
       ``(2) October 2000 through december 2001.--For the 15-month 
     period beginning with October 2000, any such demonstration 
     project shall be conducted under the same terms and 
     conditions as applied to such demonstration during 1999, 
     except that the following modifications shall apply:
       ``(A) Basic capitation rate.--The basic capitation rate 
     paid for services covered under the project (other than case 
     management services) per enrollee per month and furnished 
     during--
       ``(i) the period beginning with October 1, 2000, and ending 
     with December 31, 2000, shall be determined by actuarially 
     adjusting the actual capitation rate paid for such services 
     in 1999 for inflation, utilization, and other changes to the 
     CNO service package, and by reducing such adjusted capitation 
     rate by 10 percent in the case of the demonstration sites 
     located in Arizona, Minnesota, and Illinois, and 15 percent 
     for the demonstration site located in New York; and
       ``(ii) 2001 shall be determined by actuarially adjusting 
     the capitation rate determined under clause (i) for 
     inflation, utilization, and other changes to the CNO service 
     package.
       ``(B) Targeted case management fee.--Effective October 1, 
     2000--
       ``(i) the case management fee per enrollee per month for--

       ``(I) the period described in subparagraph (A)(i) shall be 
     determined by actuarially adjusting the case management fee 
     for 1999 for inflation; and
       ``(II) 2001 shall be determined by actuarially adjusting 
     the amount determined under subclause (I) for inflation; and

       ``(ii) such case management fee shall be paid only for 
     enrollees who are classified as moderately frail or frail 
     pursuant to criteria established by the Secretary.
       ``(C) Greater uniformity in clinical features among 
     sites.--Each project shall implement for each site--
       ``(i) protocols for periodic telephonic contact with 
     enrollees based on--

       ``(I) the results of such standardized written health 
     assessment; and
       ``(II) the application of appropriate care planning 
     approaches;

       ``(ii) disease management programs for targeted diseases 
     (such as congestive heart failure, arthritis, diabetes, and 
     hypertension) that are highly prevalent in the enrolled 
     populations;
       ``(iii) systems and protocols to track enrollees through 
     hospitalizations, including pre-admission planning, 
     concurrent management during inpatient hospital stays, and 
     post-discharge assessment, planning, and follow-up; and
       ``(iv) standardized patient educational materials for 
     specified diseases and health conditions.
       ``(D) Quality improvement.--Each project shall implement at 
     each site once during the 15-month period--
       ``(i) enrollee satisfaction surveys; and
       ``(ii) reporting on specified quality indicators for the 
     enrolled population.
       ``(c) Evaluation.--
       ``(1) Preliminary report.--Not later than July 1, 2001, the 
     Secretary of Health and Human Services shall submit to the 
     Committees on Ways and Means and Commerce of the House of 
     Representatives and the Committee on Finance of the Senate a 
     preliminary report that--
       ``(A) evaluates such demonstration projects for the period 
     beginning July 1, 1997, and ending December 31, 1999, on a 
     site-specific basis with respect to the impact on per 
     beneficiary spending, specific health utilization measures, 
     and enrollee satisfaction; and
       ``(B) includes a similar evaluation of such projects for 
     the portion of the extension period that occurs after 
     September 30, 2000.
       ``(2) Final report.--The Secretary shall submit a final 
     report to such Committees on such demonstration projects not 
     later than July 1, 2002. Such report shall include the same 
     elements as the preliminary report required by paragraph (1), 
     but for the period after December 31, 1999.
       ``(3) Methodology for spending comparisons.--Any evaluation 
     of the impact of the demonstration projects on per 
     beneficiary spending

[[Page 26952]]

     included in such reports shall include a comparison of--
       ``(A) data for all individuals who--
       ``(i) were enrolled in such demonstration projects as of 
     the first day of the period under evaluation; and
       ``(ii) were enrolled for a minimum of 6 months thereafter; 
     with
       ``(B) data for a matched sample of individuals who are 
     enrolled under part B of title XVIII of the Social Security 
     Act and are not enrolled in such a project, or in a 
     Medicare+Choice plan under part C of such title, a plan 
     offered by an eligible organization under section 1876 of 
     such Act, or a health care prepayment plan under section 
     1833(a)(1)(A) of such Act.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall be effective as if included in the enactment of section 
     532 of BBRA (113 Stat. 1501A-388).

     SEC. 633. EXTENSION OF MEDICARE MUNICIPAL HEALTH SERVICES 
                   DEMONSTRATION PROJECTS.

       Section 9215(a) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (42 U.S.C. 1395b-1 note), as 
     amended by section 6135 of the Omnibus Budget Reconciliation 
     Act of 1989, section 13557 of the Omnibus Budget 
     Reconciliation Act of 1993, section 4017 of BBA, and section 
     534 of BBRA (113 Stat. 1501A-390), is amended by striking 
     ``December 31, 2002'' and inserting ``December 31, 2004''.

     SEC. 634. SERVICE AREA EXPANSION FOR MEDICARE COST CONTRACTS 
                   DURING TRANSITION PERIOD.

       Section 1876(h)(5) (42 U.S.C. 1395mm(h)(5)) is amended--
       (1) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (2) by inserting after subparagraph (A), the following new 
     subparagraph:
       ``(B) Subject to subparagraph (C), the Secretary shall 
     approve an application for a modification to a reasonable 
     cost contract under this section in order to expand the 
     service area of such contract if--
       ``(i) such application is submitted to the Secretary on or 
     before September 1, 2003; and
       ``(ii) the Secretary determines that the organization with 
     the contract continues to meet the requirements applicable to 
     such organizations and contracts under this section.''.

                          TITLE VII--MEDICAID

     SEC. 701. DSH PAYMENTS.

       (a) Modifications to DSH Allotments.--
       (1) Increased allotments for fiscal years 2001 and 2002.--
       (A) In general.--Section 1923(f) (42 U.S.C. 1396r-4(f)) is 
     amended--
       (i) in paragraph (2), by striking ``The DSH allotment'' and 
     inserting ``Subject to paragraph (4), the DSH allotment'';
       (ii) by redesignating paragraph (4) as paragraph (6); and
       (iii) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Special rule for fiscal years 2001 and 2002.--
       ``(A) In general.--Notwithstanding paragraph (2), the DSH 
     allotment for any State for--
       ``(i) fiscal year 2001, shall be the DSH allotment 
     determined under paragraph (2) for fiscal year 2000 
     increased, subject to subparagraph (B) and paragraph (5), by 
     the percentage change in the consumer price index for all 
     urban consumers (all items; U.S. city average) for fiscal 
     year 2000; and
       ``(ii) fiscal year 2002, shall be the DSH allotment 
     determined under clause (i) increased, subject to 
     subparagraph (B) and paragraph (5), by the percentage change 
     in the consumer price index for all urban consumers (all 
     items; U.S. city average) for fiscal year 2001.
       ``(B) Limitation.--Subparagraph (B) of paragraph (3) shall 
     apply to subparagraph (A) of this paragraph in the same 
     manner as that subparagraph (B) applies to paragraph (3)(A).
       ``(C) No application to allotments after fiscal year 
     2002.--The DSH allotment for any State for fiscal year 2003 
     or any succeeding fiscal year shall be determined under 
     paragraph (3) without regard to the DSH allotments determined 
     under subparagraph (A) of this paragraph.''.
       (2) Special rule for medicaid dsh allotment for extremely 
     low dsh states.--
       (A) In general.--Section 1923(f) (42 U.S.C. 1396r-4(f)), as 
     amended by paragraph (1), is amended by inserting after 
     paragraph (4) the following new paragraph:
       ``(5) Special rule for extremely low dsh states.--In the 
     case of a State in which the total expenditures under the 
     State plan (including Federal and State shares) for 
     disproportionate share hospital adjustments under this 
     section for fiscal year 1999, as reported to the 
     Administrator of the Health Care Financing Administration as 
     of August 31, 2000, is greater than 0 but less than 1 percent 
     of the State's total amount of expenditures under the State 
     plan for medical assistance during the fiscal year, the DSH 
     allotment for fiscal year 2001 shall be increased to 1 
     percent of the State's total amount of expenditures under 
     such plan for such assistance during such fiscal year. In 
     subsequent fiscal years, such increased allotment is subject 
     to an increase for inflation as provided in paragraph 
     (3)(A).''.
       (B) Conforming amendment.--Section 1923(f)(3)(A) (42 U.S.C. 
     1396r-4(f)(3)(A)) is amended by inserting ``and paragraph 
     (5)'' after ``subparagraph (B)''.
       (3) Effective date.--The amendments made by paragraphs (1) 
     and (2) take effect on the date the final regulation required 
     under section 705(a) (relating to the application of an 
     aggregate upper payment limit test for State medicaid 
     spending for inpatient hospital services, outpatient hospital 
     services, nursing facility services, intermediate care 
     facility services for the mentally retarded, and clinic 
     services provided by government facilities that are not 
     State-owned or operated facilities) is published in the 
     Federal Register.
       (b) Assuring Identification of Medicaid Managed Care 
     Patients.--
       (1) In general.--Section 1932 (42 U.S.C. 1396u-2) is 
     amended by adding at the end the following new subsection:
       ``(g) Identification of Patients for Purposes of Making DSH 
     Payments.--Each contract with a managed care entity under 
     section 1903(m) or under section 1905(t)(3) shall require the 
     entity either--
       ``(1) to report to the State information necessary to 
     determine the hospital services provided under the contract 
     (and the identity of hospitals providing such services) for 
     purposes of applying sections 1886(d)(5)(F) and 1923; or
       ``(2) to include a sponsorship code in the identification 
     card issued to individuals covered under this title in order 
     that a hospital may identify a patient as being entitled to 
     benefits under this title.''.
       (2) Clarification of counting managed care medicaid 
     patients.--Section 1923 (42 U.S.C. 1396r-4) is amended--
       (A) in subsection (a)(2)(D), by inserting after ``the 
     proportion of low-income and medicaid patients'' the 
     following: ``(including such patients who receive benefits 
     through a managed care entity)'';
       (B) in subsection (b)(2), by inserting after ``a State plan 
     approved under this title in a period'' the following: 
     ``(regardless of whether such patients receive medical 
     assistance on a fee-for-service basis or through a managed 
     care entity)''; and
       (C) in subsection (b)(3)(A)(i), by inserting after ``under 
     a State plan under this title'' the following: ``(regardless 
     of whether the services were furnished on a fee-for-service 
     basis or through a managed care entity)''.
       (3) Effective dates.--
       (A) The amendment made by paragraph (1) shall apply to 
     contracts as of January 1, 2001.
       (B) The amendments made by paragraph (2) shall apply to 
     payments made on or after January 1, 2001.
       (c) Application of Medicaid DSH Transition Rule to Public 
     Hospitals in All States.--
       (1) In general.--During the period described in paragraph 
     (3), with respect to a State, section 4721(e) of the Balanced 
     Budget Act of 1997 (Public Law 105-33; 111 Stat. 514), as 
     amended by section 607 of BBRA (113 Stat. 1501A-396), shall 
     be applied as though--
       (A) ``September 30, 2002'' were substituted for ``July 1, 
     1997'' each place it appears;
       (B) ``hospitals owned or operated by a State (as defined 
     for purposes of title XIX of such Act), or by an 
     instrumentality or a unit of government within a State (as so 
     defined)'' were substituted for ``the State of California'';
       (C) paragraph (3) were redesignated as paragraph (4);
       (D) ``and'' were omitted from the end of paragraph (2); and
       (E) the following new paragraph were inserted after 
     paragraph (2):
       ``(3) `(as defined in subparagraph (B) but without regard 
     to clause (ii) of that subparagraph and subject to subsection 
     (d))' were substituted for `(as defined in subparagraph (B))' 
     in subparagraph (A) of such section; and''.
       (2) Special rule.--With respect to California, section 
     4721(e) of the Balanced Budget Act of 1997 (Public Law 105-
     33; 111 Stat. 514), as so amended, shall be applied without 
     regard to paragraph (1).
       (3) Period described.--The period described in this 
     paragraph is the period that begins, with respect to a State, 
     on the first day of the first State fiscal year that begins 
     after September 30, 2002, and ends on the last day of the 
     succeeding State fiscal year.
       (4) Application to waivers.--With respect to a State 
     operating under a waiver of the requirements of title XIX of 
     the Social Security Act (42 U.S.C. 1396 et seq.) under 
     section 1115 of such Act (42 U.S.C. 1315), the amount by 
     which any payment adjustment made by the State under title 
     XIX of such Act (42 U.S.C. 1396 et seq.), after the 
     application of section 4721(e) of the Balanced Budget Act of 
     1997 under paragraph (1) to such State, exceeds the costs of 
     furnishing hospital services provided by hospitals described 
     in such section shall be fully reflected as an increase in 
     the baseline expenditure limit for such waiver.
       (d) Assistance for Certain Public Hospitals.--
       (1) In general.--Beginning with fiscal year 2002, 
     notwithstanding section 1923(f) of the Social Security Act 
     (42 U.S.C. 1396r-4(f)) and subject to paragraph (3), with 
     respect to a State, payment adjustments made under title XIX 
     of the Social Security Act (42 U.S.C. 1396 et seq.) to a 
     hospital described in paragraph (2) shall be made without 
     regard to the DSH allotment limitation for the State 
     determined under section 1923(f) of that Act (42 U.S.C. 
     1396r-4(f)).
       (2) Hospital described.--A hospital is described in this 
     paragraph if the hospital--
       (A) is owned or operated by a State (as defined for 
     purposes of title XIX of the Social Security Act), or by an 
     instrumentality or a unit of government within a State (as so 
     defined);
       (B) as of October 1, 2000--
       (i) is in existence and operating as a hospital described 
     in subparagraph (A); and
       (ii) is not receiving disproportionate share hospital 
     payments from the State in which it is located under title 
     XIX of such Act; and

[[Page 26953]]

       (C) has a low-income utilization rate (as defined in 
     section 1923(b)(3) of the Social Security Act (42 U.S.C. 
     1396r-4(b)(3))) in excess of 65 percent.
       (3) Limitation on expenditures.--
       (A) In general.--With respect to any fiscal year, the 
     aggregate amount of Federal financial participation that may 
     be provided for payment adjustments described in paragraph 
     (1) for that fiscal year for all States may not exceed the 
     amount described in subparagraph (B) for the fiscal year.
       (B) Amount described.--The amount described in this 
     subparagraph for a fiscal year is as follows:
       (i) For fiscal year 2002, $15,000,000.
       (ii) For fiscal year 2003, $176,000,000.
       (iii) For fiscal year 2004, $269,000,000.
       (iv) For fiscal year 2005, $330,000,000.
       (v) For fiscal year 2006 and each fiscal year thereafter, 
     $375,000,000.
       (e) DSH Payment Accountability Standards.--Not later than 
     September 30, 2002, the Secretary of Health and Human 
     Services shall implement accountability standards to ensure 
     that Federal funds provided with respect to disproportionate 
     share hospital adjustments made under section 1923 of the 
     Social Security Act (42 U.S.C. 1396r-4) are used to reimburse 
     States and hospitals eligible for such payment adjustments 
     for providing uncompensated health care to low-income 
     patients and are otherwise made in accordance with the 
     requirements of section 1923 of that Act.

     SEC. 702. NEW PROSPECTIVE PAYMENT SYSTEM FOR FEDERALLY-
                   QUALIFIED HEALTH CENTERS AND RURAL HEALTH 
                   CLINICS.

       (a) In General.--Section 1902(a) (42 U.S.C. 1396a(a)) is 
     amended--
       (1) in paragraph (13)--
       (A) in subparagraph (A), by adding ``and'' at the end;
       (B) in subparagraph (B), by striking ``and'' at the end; 
     and
       (C) by striking subparagraph (C); and
       (2) by inserting after paragraph (14) the following new 
     paragraph:
       ``(15) provide for payment for services described in clause 
     (B) or (C) of section 1905(a)(2) under the plan in accordance 
     with subsection (aa);''.
       (b) New Prospective Payment System.--Section 1902 (42 
     U.S.C. 1396a) is amended by adding at the end the following:
       ``(aa) Payment for Services Provided by Federally-Qualified 
     Health Centers and Rural Health Clinics.--
       ``(1) In general.--Beginning with fiscal year 2001 with 
     respect to services furnished on or after January 1, 2001, 
     and each succeeding fiscal year, the State plan shall provide 
     for payment for services described in section 1905(a)(2)(C) 
     furnished by a Federally-qualified health center and services 
     described in section 1905(a)(2)(B) furnished by a rural 
     health clinic in accordance with the provisions of this 
     subsection.
       ``(2) Fiscal year 2001.--Subject to paragraph (4), for 
     services furnished on and after January 1, 2001, during 
     fiscal year 2001, the State plan shall provide for payment 
     for such services in an amount (calculated on a per visit 
     basis) that is equal to 100 percent of the average of the 
     costs of the center or clinic of furnishing such services 
     during fiscal years 1999 and 2000 which are reasonable and 
     related to the cost of furnishing such services, or based on 
     such other tests of reasonableness as the Secretary 
     prescribes in regulations under section 1833(a)(3), or, in 
     the case of services to which such regulations do not apply, 
     the same methodology used under section 1833(a)(3), adjusted 
     to take into account any increase or decrease in the scope of 
     such services furnished by the center or clinic during fiscal 
     year 2001.
       ``(3) Fiscal year 2002 and succeeding fiscal years.--
     Subject to paragraph (4), for services furnished during 
     fiscal year 2002 or a succeeding fiscal year, the State plan 
     shall provide for payment for such services in an amount 
     (calculated on a per visit basis) that is equal to the amount 
     calculated for such services under this subsection for the 
     preceding fiscal year--
       ``(A) increased by the percentage increase in the MEI (as 
     defined in section 1842(i)(3)) applicable to primary care 
     services (as defined in section 1842(i)(4)) for that fiscal 
     year; and
       ``(B) adjusted to take into account any increase or 
     decrease in the scope of such services furnished by the 
     center or clinic during that fiscal year.
       ``(4) Establishment of initial year payment amount for new 
     centers or clinics.--In any case in which an entity first 
     qualifies as a Federally-qualified health center or rural 
     health clinic after fiscal year 2000, the State plan shall 
     provide for payment for services described in section 
     1905(a)(2)(C) furnished by the center or services described 
     in section 1905(a)(2)(B) furnished by the clinic in the first 
     fiscal year in which the center or clinic so qualifies in an 
     amount (calculated on a per visit basis) that is equal to 100 
     percent of the costs of furnishing such services during such 
     fiscal year based on the rates established under this 
     subsection for the fiscal year for other such centers or 
     clinics located in the same or adjacent area with a similar 
     case load or, in the absence of such a center or clinic, in 
     accordance with the regulations and methodology referred to 
     in paragraph (2) or based on such other tests of 
     reasonableness as the Secretary may specify. For each fiscal 
     year following the fiscal year in which the entity first 
     qualifies as a Federally-qualified health center or rural 
     health clinic, the State plan shall provide for the payment 
     amount to be calculated in accordance with paragraph (3).
       ``(5) Administration in the case of managed care.--
       ``(A) In general.--In the case of services furnished by a 
     Federally-qualified health center or rural health clinic 
     pursuant to a contract between the center or clinic and a 
     managed care entity (as defined in section 1932(a)(1)(B)), 
     the State plan shall provide for payment to the center or 
     clinic by the State of a supplemental payment equal to the 
     amount (if any) by which the amount determined under 
     paragraphs (2), (3), and (4) of this subsection exceeds the 
     amount of the payments provided under the contract.
       ``(B) Payment schedule.--The supplemental payment required 
     under subparagraph (A) shall be made pursuant to a payment 
     schedule agreed to by the State and the Federally-qualified 
     health center or rural health clinic, but in no case less 
     frequently than every 4 months.
       ``(6) Alternative payment methodologies.--Notwithstanding 
     any other provision of this section, the State plan may 
     provide for payment in any fiscal year to a Federally-
     qualified health center for services described in section 
     1905(a)(2)(C) or to a rural health clinic for services 
     described in section 1905(a)(2)(B) in an amount which is 
     determined under an alternative payment methodology that--
       ``(A) is agreed to by the State and the center or clinic; 
     and
       ``(B) results in payment to the center or clinic of an 
     amount which is at least equal to the amount otherwise 
     required to be paid to the center or clinic under this 
     section.''.
       (c) Conforming Amendments.--
       (1) Section 4712 of the BBA (Public Law 105-33; 111 Stat. 
     508) is amended by striking subsection (c).
       (2) Section 1915(b) (42 U.S.C. 1396n(b)) is amended by 
     striking ``1902(a)(13)(C)'' and inserting ``1902(a)(15), 
     1902(aa),''.
       (d) GAO Study of Future Rebasing.--The Comptroller General 
     of the United States shall provide for a study on the need 
     for, and how to, rebase or refine costs for making payment 
     under the medicaid program for services provided by 
     Federally-qualified health centers and rural health clinics 
     (as provided under the amendments made by this section). The 
     Comptroller General shall provide for submittal of a report 
     on such study to Congress by not later than 4 years after the 
     date of the enactment of this Act.
       (e) Effective Date.--The amendments made by this section 
     take effect on January 1, 2001, and shall apply to services 
     furnished on or after such date.

     SEC. 703. STREAMLINED APPROVAL OF CONTINUED STATE-WIDE 
                   SECTION 1115 MEDICAID WAIVERS.

       (a) In General.--Section 1115 (42 U.S.C. 1315) is amended 
     by adding at the end the following new subsection:
       ``(f) An application by the chief executive officer of a 
     State for an extension of a waiver project the State is 
     operating under an extension under subsection (e) (in this 
     subsection referred to as the `waiver project') shall be 
     submitted and approved or disapproved in accordance with the 
     following:
       ``(1) The application for an extension of the waiver 
     project shall be submitted to the Secretary at least 120 days 
     prior to the expiration of the current period of the waiver 
     project.
       ``(2) Not later than 45 days after the date such 
     application is received by the Secretary, the Secretary shall 
     notify the State if the Secretary intends to review the terms 
     and conditions of the waiver project. A failure to provide 
     such notification shall be deemed to be an approval of the 
     application.
       ``(3) Not later than 45 days after the date a notification 
     is made in accordance with paragraph (2), the Secretary shall 
     inform the State of proposed changes in the terms and 
     conditions of the waiver project. A failure to provide such 
     information shall be deemed to be an approval of the 
     application.
       ``(4) During the 30-day period that begins on the date 
     information described in paragraph (3) is provided to a 
     State, the Secretary shall negotiate revised terms and 
     conditions of the waiver project with the State.
       ``(5)(A) Not later than 120 days after the date an 
     application for an extension of the waiver project is 
     submitted to the Secretary (or such later date agreed to by 
     the chief executive officer of the State), the Secretary 
     shall--
       ``(i) approve the application subject to such modifications 
     in the terms and conditions--
       ``(I) as have been agreed to by the Secretary and the 
     State; or
       ``(II) in the absence of such agreement, as are determined 
     by the Secretary to be reasonable, consistent with the 
     overall objectives of the waiver project, and not in 
     violation of applicable law; or
       ``(ii) disapprove the application.
       ``(B) A failure by the Secretary to approve or disapprove 
     an application submitted under this subsection in accordance 
     with the requirements of subparagraph (A) shall be deemed to 
     be an approval of the application subject to such 
     modifications in the terms and conditions as have been agreed 
     to (if any) by the Secretary and the State.
       ``(6) An approval of an application for an extension of a 
     waiver project under this subsection shall be for a period 
     not to exceed 3 years.
       ``(7) An extension of a waiver project under this 
     subsection shall be subject to the final reporting and 
     evaluation requirements of paragraphs (4) and (5) of 
     subsection (e) (taking into account the extension under this 
     subsection with respect to any timing requirements imposed 
     under those paragraphs).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to requests for extensions of demonstration 
     projects pending or

[[Page 26954]]

     submitted on or after the date of the enactment of this Act.

     SEC. 704. MEDICAID COUNTY-ORGANIZED HEALTH SYSTEMS.

       (a) In General.--Section 9517(c)(3)(C) of the Comprehensive 
     Omnibus Budget Reconciliation Act of 1985 is amended by 
     striking ``10 percent'' and inserting ``14 percent''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on the date of the enactment of this Act.

     SEC. 705. DEADLINE FOR ISSUANCE OF FINAL REGULATION RELATING 
                   TO MEDICAID UPPER PAYMENT LIMITS.

       (a) In General.--Not later than December 31, 2000, the 
     Secretary of Health and Human Services (in this section 
     referred to as the ``Secretary''), notwithstanding any 
     requirement of the Administrative Procedures Act under 
     chapter 5 of title 5, United States Code, or any other 
     provision of law, shall issue under sections 447.272, 
     447.304, and 447.321 of title 42, Code of Federal Regulations 
     (and any other section of part 447 of title 42, Code of 
     Federal Regulations that the Secretary determines is 
     appropriate), a final regulation based on the proposed rule 
     announced on October 5, 2000, that--
       (1) modifies the upper payment limit test applied to State 
     medicaid spending for inpatient hospital services, outpatient 
     hospital services, nursing facility services, intermediate 
     care facility services for the mentally retarded, and clinic 
     services by applying an aggregate upper payment limit to 
     payments made to government facilities that are not State-
     owned or operated facilities; and
       (2) provides for a transition period in accordance with 
     subsection (b).
       (b) Transition Period.--
       (1) In general.--The final regulation required under 
     subsection (a) shall provide that, with respect to a State 
     described in paragraph (3), the State shall be considered to 
     be in compliance with the final regulation required under 
     subsection (a) so long as, for each State fiscal year during 
     the period described in paragraph (4), the State reduces 
     payments under a State medicaid plan payment provision or 
     methodology described in paragraph (3) (including a payment 
     provision or methodology described in that paragraph that was 
     approved under a waiver of such plan), or reduces the actual 
     dollar payment levels described in paragraph (3)(B), so that 
     the amount of the payments that would otherwise have been 
     made under such provision, methodology, or payment levels by 
     the State for any State fiscal year during such period is 
     reduced by 15 percent in the first such State fiscal year, 
     and by an additional 15 percent in each of the next 5 State 
     fiscal years.
       (2) Requirement.--Notwithstanding paragraph (1), the final 
     regulation required under subsection (a) shall provide that, 
     for any period (or portion of a period) that occurs on or 
     after October 1, 2008, medicaid payments made by a State 
     described in paragraph (3) shall comply with such final 
     regulation.
       (3) State described.--A State described in this paragraph 
     is a State with a State medicaid plan payment provision or 
     methodology (including a payment provision or methodology 
     approved under a waiver of such plan) which--
       (A) was approved, deemed to have been approved, or was in 
     effect on or before October 1, 1992 (including any subsequent 
     amendments or successor provisions or methodologies and 
     whether or not a State plan amendment was made to carry out 
     such provision or methodology after such date) or under which 
     claims for Federal financial participation were filed and 
     paid on or before such date; and
       (B) provides for payments that are in excess of the upper 
     payment limit test established under the final regulation 
     required under subsection (a) (or which would be noncompliant 
     with such final regulation if the actual dollar payment 
     levels made under the payment provision or methodology in the 
     State fiscal year which begins during 1999 were continued).
       (4) Period described.--The period described in this 
     paragraph is the period that begins on the first State fiscal 
     year that begins after September 30, 2002, and ends on 
     September 30, 2008.

     SEC. 706. ALASKA FMAP.

       Notwithstanding the first sentence of section 1905(b) of 
     the Social Security Act (42 U.S.C. 1396d(b)), only with 
     respect to each of fiscal years 2001 through 2005, for 
     purposes of titles XIX and XXI of the Social Security Act, 
     the State percentage used to determine the Federal medical 
     assistance percentage for Alaska shall be that percentage 
     which bears the same ratio to 45 percent as the square of the 
     adjusted per capita income of Alaska (determined by dividing 
     the State's 3-year average per capita income by 1.05) bears 
     to the square of the per capita income of the 50 States.

     SEC. 707. 1-YEAR EXTENSION OF WELFARE-TO-WORK TRANSITION.

       (a) In General.--Section 1925(f) (42 U.S.C. 1396r-6(f)) is 
     amended by striking ``2001'' and inserting ``2002''.
       (b) Conforming Amendment.--Section 1902(e)(1)(B) (42 U.S.C. 
     1396a(e)(1)(B)) is amended by striking ``2001'' and inserting 
     ``2002''.

     SEC. 708. ADDITIONAL ENTITIES QUALIFIED TO DETERMINE MEDICAID 
                   PRESUMPTIVE ELIGIBILITY FOR LOW-INCOME 
                   CHILDREN.

       (a) In General.--Section 1920A(b)(3)(A)(i) (42 U.S.C. 
     1396r-1a(b)(3)(A)(i)) is amended--
       (1) by striking ``or (II)'' and inserting ``, (II)''; and
       (2) 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 or 
     tribal child support enforcement agency, an organization that 
     is providing emergency food and shelter under a grant under 
     the Stewart B. McKinney Homeless Assistance Act, or a State 
     or tribal 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 under the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4101 et seq.), or (IV) any other entity 
     the State so deems, as approved by the Secretary'' before the 
     semicolon.
       (b) Technical Amendments.--Section 1920A (42 U.S.C. 1396r-
     1a) is amended--
       (1) in subsection (b)(3)(A)(i), by striking ``42 U.S.C. 
     9821'' and inserting ``42 U.S.C. 9831'';
       (2) in subsection (b)(3)(A)(ii), by striking ``paragraph 
     (1)(A)'' and inserting ``paragraph (2)''; and
       (3) in subsection (c)(2), in the matter preceding 
     subparagraph (A), by striking ``subsection (b)(1)(A)'' and 
     inserting ``subsection (b)(2)''.

     SEC. 709. DEVELOPMENT OF UNIFORM QMB/SLMB APPLICATION FORM.

       (a) In General.--Section 1905(p) (42 U.S.C. 1396d(p)) is 
     amended by adding at the end the following new paragraph:
       ``(5)(A) The Secretary shall develop and distribute to 
     States a simplified application form for use by individuals 
     (including both qualified medicare beneficiaries and 
     specified low-income medicare beneficiaries) in applying for 
     medical assistance for medicare cost-sharing under this title 
     in the States which elect to use such form. Such form shall 
     be easily readable by applicants and uniform nationally.
       ``(B) In developing such form, the Secretary shall consult 
     with beneficiary groups and the States.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect 1 year after the date of the enactment of 
     this Act, regardless of whether regulations have been 
     promulgated to carry out such amendment by such date. The 
     Secretary of Health and Human Services shall develop the 
     uniform application form under such amendment by not later 
     than 9 months after the date of the enactment of this Act.

     SEC. 710. TECHNICAL CORRECTIONS.

       (a) In General.--Section 1903(f)(4) (42 U.S.C. 1396b(f)(4)) 
     is amended--
       (1) by inserting ``1902(a)(10)(A)(ii)(XVII),'' after 
     ``1902(a)(10)(A)(ii)(XVI),''; and
       (2) by inserting ``1902(a)(10)(A)(ii)(XVIII),'' after 
     ``1902(a)(10)(A)(ii)(XVII),''.
       (b) Effective Dates.--(1) The amendment made by subsection 
     (a)(1) shall be effective as if included in the enactment of 
     section 121 of the Foster Care Independence Act of 1999 
     (Public Law 106-169).
       (2) The amendment made by subsection (a)(2) shall be 
     effective as if included in the enactment of the Breast and 
     Cervical Cancer Prevention and Treatment Act of 2000 (Public 
     Law 106-354).

         TITLE VIII--STATE CHILDREN'S HEALTH INSURANCE PROGRAM

     SEC. 801. SPECIAL RULE FOR REDISTRIBUTION AND AVAILABILITY OF 
                   UNUSED FISCAL YEAR 1998 AND 1999 SCHIP 
                   ALLOTMENTS.

       (a) Change in Rules for Redistribution and Retention of 
     Unused SCHIP Allotments for Fiscal Years 1998 and 1999.--
     Section 2104 (42 U.S.C. 1397dd) is amended by adding at the 
     end the following new subsection:
       ``(g) Rule for Redistribution and Extended Availability of 
     Fiscal Years 1998 and 1999  Allotments.--
       ``(1) Amount redistributed.--
       ``(A) In general.--In the case of a State that expends all 
     of its allotment under subsection (b) or (c) for fiscal year 
     1998 by the end of fiscal year 2000, or for fiscal year 1999 
     by the end of fiscal year 2001, the Secretary shall 
     redistribute to the State under subsection (f) (from the 
     fiscal year 1998 or 1999 allotments of other States, 
     respectively, as determined by the application of paragraphs 
     (2) and (3) with respect to the respective fiscal year) the 
     following amount:
       ``(i) State.--In the case of 1 of the 50 States or the 
     District of Columbia, with respect to--

       ``(I) the fiscal year 1998 allotment, the amount by which 
     the State's expenditures under this title in fiscal years 
     1998, 1999, and 2000 exceed the State's allotment for fiscal 
     year 1998 under subsection (b); or
       ``(II) the fiscal year 1999 allotment, the amount by which 
     the State's expenditures under this title in fiscal years 
     1999, 2000, and 2001 exceed the State's allotment for fiscal 
     year 1999 under subsection (b).

       ``(ii) Territory.--In the case of a commonwealth or 
     territory described in subsection (c)(3), an amount that 
     bears the same ratio to 1.05 percent of the total amount 
     described in paragraph (2)(B)(i)(I) as the ratio of the 
     commonwealth's or territory's fiscal year 1998 or 1999 
     allotment under subsection (c) (as the case may be) bears to 
     the total of all such allotments for such fiscal year under 
     such subsection.
       ``(B) Expenditure rules.--An amount redistributed to a 
     State under this paragraph with respect to fiscal year 1998 
     or 1999--

[[Page 26955]]

       ``(i) shall not be included in the determination of the 
     State's allotment for any fiscal year under this section;
       ``(ii) notwithstanding subsection (e), shall remain 
     available for expenditure by the State through the end of 
     fiscal year 2002; and
       ``(iii) shall be counted as being expended with respect to 
     a fiscal year allotment in accordance with applicable 
     regulations of the Secretary.
       ``(2) Extension of availability of portion of unexpended 
     fiscal years 1998 and 1999 allotments.--
       ``(A) In general.--Notwithstanding subsection (e):
       ``(i) Fiscal year 1998 allotment.--Of the amounts allotted 
     to a State pursuant to this section for fiscal year 1998 that 
     were not expended by the State by the end of fiscal year 
     2000, the amount specified in subparagraph (B) for fiscal 
     year 1998 for such State shall remain available for 
     expenditure by the State through the end of fiscal year 2002.
       ``(ii) Fiscal year 1999 allotment.--Of the amounts allotted 
     to a State pursuant to this subsection for fiscal year 1999 
     that were not expended by the State by the end of fiscal year 
     2001, the amount specified in subparagraph (B) for fiscal 
     year 1999 for such State shall remain available for 
     expenditure by the State through the end of fiscal year 2002.
       ``(B) Amount remaining available for expenditure.--The 
     amount specified in this subparagraph for a State for a 
     fiscal year is equal to--
       ``(i) the amount by which (I) the total amount available 
     for redistribution under subsection (f) from the allotments 
     for that fiscal year, exceeds (II) the total amounts 
     redistributed under paragraph (1) for that fiscal year; 
     multiplied by
       ``(ii) the ratio of the amount of such State's unexpended 
     allotment for that fiscal year to the total amount described 
     in clause (i)(I) for that fiscal year.
       ``(C) Use of up to 10 percent of retained 1998 allotments 
     for outreach activities.--Notwithstanding section 
     2105(c)(2)(A), with respect to any State described in 
     subparagraph (A)(i), the State may use up to 10 percent of 
     the amount specified in subparagraph (B) for fiscal year 1998 
     for expenditures for outreach activities approved by the 
     Secretary.
       ``(3) Determination of amounts.--For purposes of 
     calculating the amounts described in paragraphs (1) and (2) 
     relating to the allotment for fiscal year 1998 or fiscal year 
     1999, the Secretary shall use the amounts reported by the 
     States not later than December 15, 2000, or November 30, 
     2001, respectively, on HCFA Form 64 or HCFA Form 21, as 
     approved by the Secretary.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of section 
     4901 of BBA (111 Stat. 552).

     SEC. 802. AUTHORITY TO PAY MEDICAID EXPANSION SCHIP COSTS 
                   FROM TITLE XXI APPROPRIATION.

       (a) Authority To Pay Medicaid Expansion SCHIP Costs From 
     Title XXI Appropriation.--Section 2105(a) (42 U.S.C. 
     1397ee(a)) is amended--
       (1) by redesignating subparagraphs (A) through (D) of 
     paragraph (2) as clauses (i) through (iv), respectively, and 
     indenting appropriately;
       (2) by redesignating paragraph (1) as subparagraph (C), and 
     indenting appropriately;
       (3) by redesignating paragraph (2) as subparagraph (D), and 
     indenting appropriately;
       (4) by striking ``(a) In General.--'' and the remainder of 
     the text that precedes subparagraph (C), as so redesignated, 
     and inserting the following:
       ``(a) Payments.--
       ``(1) In general.--Subject to the succeeding provisions of 
     this section, the Secretary shall pay to each State with a 
     plan approved under this title, from its allotment under 
     section 2104, an amount for each quarter equal to the 
     enhanced FMAP (or, in the case of expenditures described in 
     subparagraph (B), the Federal medical assistance percentage 
     (as defined in the first sentence of section 1905(b))) of 
     expenditures in the quarter--
       ``(A) for child health assistance under the plan for 
     targeted low-income children in the form of providing medical 
     assistance for which payment is made on the basis of an 
     enhanced FMAP under the fourth sentence of section 1905(b);
       ``(B) for the provision of medical assistance on behalf of 
     a child during a presumptive eligibility period under section 
     1920A;''; and
       (5) by adding after subparagraph (D), as so redesignated, 
     the following new paragraph:
       ``(2) Order of payments.--Payments under paragraph (1) from 
     a State's allotment shall be made in the following order:
       ``(A) First, for expenditures for items described in 
     paragraph (1)(A).
       ``(B) Second, for expenditures for items described in 
     paragraph (1)(B).
       ``(C) Third, for expenditures for items described in 
     paragraph (1)(C).
       ``(D) Fourth, for expenditures for items described in 
     paragraph (1)(D).''.
       (b) Elimination of Requirement To Reduce Title XXI 
     Allotment by Medicaid Expansion SCHIP Costs.--Section 2104 
     (42 U.S.C. 1397dd) is amended by striking subsection (d).
       (c) Authority To Transfer Title XXI Appropriations to Title 
     XIX Appropriation Account as Reimbursement for Medicaid 
     Expenditures for Medicaid Expansion SCHIP Services.--
     Notwithstanding any other provision of law, all amounts 
     appropriated under title XXI and allotted to a State pursuant 
     to subsection (b) or (c) of section 2104 of the Social 
     Security Act (42 U.S.C. 1397dd) for fiscal years 1998 through 
     2000 (including any amounts that, but for this provision, 
     would be considered to have expired) and not expended in 
     providing child health assistance or related services for 
     which payment may be made pursuant to subparagraph (C) or (D) 
     of section 2105(a)(1) of such Act (42 U.S.C. 1397ee(a)(1)) 
     (as amended by subsection (a)), shall be available to 
     reimburse the Grants to States for Medicaid account in an 
     amount equal to the total payments made to such State under 
     section 1903(a) of such Act (42 U.S.C. 1396b(a)) for 
     expenditures in such years for medical assistance described 
     in subparagraphs (A) and (B) of section 2105(a)(1) of such 
     Act (42 U.S.C. 1397ee(a)(1)) (as so amended).
       (d) Conforming Amendments.--
       (1) Section 1905(b) (42 U.S.C. 1396d(b)) is amended in the 
     fourth sentence by striking ``the State's allotment under 
     section 2104 (not taking into account reductions under 
     section 2104(d)(2)) for the fiscal year reduced by the amount 
     of any payments made under section 2105 to the State from 
     such allotment for such fiscal year'' and inserting ``the 
     State's available allotment under section 2104''.
       (2) Section 1905(u)(1)(B) (42 U.S.C. 1396d(u)(1)(B)) is 
     amended by striking ``and section 2104(d)''.
       (3) Section 2104 (42 U.S.C. 1397dd), as amended by 
     subsection (b), is further amended--
       (A) in subsection (b)(1), by striking ``and subsection 
     (d)''; and
       (B) in subsection (c)(1), by striking ``subject to 
     subsection (d),''.
       (4) Section 2105(c) (42 U.S.C. 1397ee(c)) is amended--
       (A) in paragraph (2)(A), by striking all that follows 
     ``Except as provided in this paragraph,'' and inserting ``the 
     amount of payment that may be made under subsection (a) for a 
     fiscal year for expenditures for items described in paragraph 
     (1)(D) of such subsection shall not exceed 10 percent of the 
     total amount of expenditures for which payment is made under 
     subparagraphs (A), (C), and (D) of paragraph (1) of such 
     subsection.'';
       (B) in paragraph (2)(B), by striking ``described in 
     subsection (a)(2)'' and inserting ``described in subsection 
     (a)(1)(D)''; and
       (C) in paragraph (6)(B), by striking ``Except as otherwise 
     provided by law,'' and inserting ``Except as provided in 
     subparagraph (A) or (B) of subsection (a)(1) or any other 
     provision of law,''.
       (5) Section 2110(a) (42 U.S.C. 1397jj(a)) is amended by 
     striking ``section 2105(a)(2)(A)'' and inserting ``section 
     2105(a)(1)(D)(i)''.
       (e) Technical Amendment.--Section 2105(d)(2)(B)(ii) (42 
     U.S.C. 1397ee(d)(2)(B)(ii)) is amended by striking ``enhanced 
     FMAP under section 1905(u)'' and inserting ``enhanced FMAP 
     under the fourth sentence of section 1905(b)''.
       (f) Effective Date.--The amendments made by this section 
     shall be effective as if included in the enactment of section 
     4901 of the BBA (111 Stat. 552).

     SEC. 803. APPLICATION OF MEDICAID CHILD PRESUMPTIVE 
                   ELIGIBILITY PROVISIONS.

       Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) is amended by 
     adding at the end the following new subparagraph:
       ``(D) Section 1920A (relating to presumptive eligibility 
     for children).''.

                       TITLE IX--OTHER PROVISIONS

                        Subtitle A--PACE Program

     SEC. 901. EXTENSION OF TRANSITION FOR CURRENT WAIVERS.

       Section 4803(d)(2) of BBA is amended--
       (1) in subparagraph (A), by striking ``24 months'' and 
     inserting ``36 months'';
       (2) in subparagraph (A), by striking ``the initial 
     effective date of regulations described in subsection (a)'' 
     and inserting ``July 1, 2000''; and
       (3) in subparagraph (B), by striking ``3 years'' and 
     inserting ``4 years''.

     SEC. 902. CONTINUING OF CERTAIN OPERATING ARRANGEMENTS 
                   PERMITTED.

       (a) In General.--Section 1894(f)(2) (42 U.S.C. 
     1395eee(f)(2)) is amended by adding at the end the following 
     new subparagraph:
       ``(C) Continuation of modifications or waivers of 
     operational requirements under demonstration status.--If a 
     PACE program operating under demonstration authority has 
     contractual or other operating arrangements which are not 
     otherwise recognized in regulation and which were in effect 
     on July 1, 2000, the Secretary (in close consultation with, 
     and with the concurrence of, the State administering agency) 
     shall permit any such program to continue such arrangements 
     so long as such arrangements are found by the Secretary and 
     the State to be reasonably consistent with the objectives of 
     the PACE program.''.
       (b) Conforming Amendment.--Section 1934(f)(2) (42 U.S.C. 
     1396u-4(f)(2)) is amended by adding at the end the following 
     new subparagraph:
       ``(C) Continuation of modifications or waivers of 
     operational requirements under demonstration status.--If a 
     PACE program operating under demonstration authority has 
     contractual or other operating arrangements which are not 
     otherwise recognized in regulation and which were in effect 
     on July 1 2000, the Secretary (in close consultation with, 
     and with the concurrence of, the State administering agency) 
     shall permit any such program to continue such arrangements 
     so long as such arrangements are found by the Secretary and 
     the

[[Page 26956]]

     State to be reasonably consistent with the objectives of the 
     PACE program.''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective as included in the enactment of BBA.

     SEC. 903. FLEXIBILITY IN EXERCISING WAIVER AUTHORITY.

       In applying sections 1894(f)(2)(B) and 1934(f)(2)(B) of the 
     Social Security Act (42 U.S.C. 1395eee(f)(2)(B), 1396u-
     4(f)(2)(B)), the Secretary of Health and Human Services--
       (1) shall approve or deny a request for a modification or a 
     waiver of provisions of the PACE protocol not later than 90 
     days after the date the Secretary receives the request; and
       (2) may exercise authority to modify or waive such 
     provisions in a manner that responds promptly to the needs of 
     PACE programs relating to areas of employment and the use of 
     community-based primary care physicians.

   Subtitle B--Outreach to Eligible Low-Income Medicare Beneficiaries

     SEC. 911. OUTREACH ON AVAILABILITY OF MEDICARE COST-SHARING 
                   ASSISTANCE TO ELIGIBLE LOW-INCOME MEDICARE 
                   BENEFICIARIES.

       (a) Outreach.--
       (1) In general.--Title XI (42 U.S.C. 1301 et seq.) is 
     amended by inserting after section 1143 the following new 
     section:


    ``outreach efforts to increase awareness of the availability of 
                         medicare cost-sharing

       ``Sec. 1144. (a) Outreach.--
       ``(1) In general.--The Commissioner of Social Security (in 
     this section referred to as the `Commissioner') shall conduct 
     outreach efforts to--
       ``(A) identify individuals entitled to benefits under the 
     medicare program under title XVIII who may be eligible for 
     medical assistance for payment of the cost of medicare cost-
     sharing under the medicaid program pursuant to sections 
     1902(a)(10)(E) and 1933; and
       ``(B) notify such individuals of the availability of such 
     medical assistance under such sections.
       ``(2) Content of notice.--Any notice furnished under 
     paragraph (1) shall state that eligibility for medicare cost-
     sharing assistance under such sections is conditioned upon--
       ``(A) the individual providing to the State information 
     about income and resources (in the case of an individual 
     residing in a State that imposes an assets test for such 
     eligibility); and
       ``(B) meeting the applicable eligibility criteria.
       ``(b) Coordination With States.--
       ``(1) In general.--In conducting the outreach efforts under 
     this section, the Commissioner shall--
       ``(A) furnish the agency of each State responsible for the 
     administration of the medicaid program and any other 
     appropriate State agency with information consisting of the 
     name and address of individuals residing in the State that 
     the Commissioner determines may be eligible for medical 
     assistance for payment of the cost of medicare cost-sharing 
     under the medicaid program pursuant to sections 
     1902(a)(10)(E) and 1933; and
       ``(B) update any such information not less frequently than 
     once per year.
       ``(2) Information in periodic updates.--The periodic 
     updates described in paragraph (1)(B) shall include 
     information on individuals who are or may be eligible for the 
     medical assistance described in paragraph (1)(A) because such 
     individuals have experienced reductions in benefits under 
     title II.''.
       (2) Amendment to title xix.--Section 1905(p) (42 U.S.C. 
     1396d(p)), as amended by section 710(a), is amended by adding 
     at the end the following new paragraph:
       ``(6) For provisions relating to outreach efforts to 
     increase awareness of the availability of medicare cost-
     sharing, see section 1144.''.
       (b) GAO Report.--The Comptroller General of the United 
     States shall conduct a study of the impact of section 1144 of 
     the Social Security Act (as added by subsection (a)(1)) on 
     the enrollment of individuals for medicare cost-sharing under 
     the medicaid program. Not later than 18 months after the date 
     that the Commissioner of Social Security first conducts 
     outreach under section 1144 of such Act, the Comptroller 
     General shall submit to Congress a report on such study. The 
     report shall include such recommendations for legislative 
     changes as the Comptroller General deems appropriate.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall take effect one year after the date of the enactment of 
     this Act.

           Subtitle C--Maternal and Child Health Block Grant

     SEC. 921. INCREASE IN AUTHORIZATION OF APPROPRIATIONS FOR THE 
                   MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT.

       (a) In General.--Section 501(a) (42 U.S.C. 701(a)) is 
     amended in the matter preceding paragraph (1) by striking 
     ``$705,000,000 for fiscal year 1994'' and inserting 
     ``$850,000,000 for fiscal year 2001''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on October 1, 2000.

                          Subtitle D--Diabetes

     SEC. 931. INCREASE IN APPROPRIATIONS FOR SPECIAL DIABETES 
                   PROGRAMS FOR TYPE I DIABETES AND INDIANS.

       (a) Special Diabetes Programs for Type I Diabetes.--Section 
     330B(b) of the Public Health Service Act (42 U.S.C. 254c-
     2(b)) is amended--
       (1) by striking ``Notwithstanding'' and inserting the 
     following:
       ``(1) Transferred funds.--Notwithstanding''; and
       (2) by adding at the end the following:
       ``(2) Appropriations.--For the purpose of making grants 
     under this section, there is appropriated, out of any funds 
     in the Treasury not otherwise appropriated--
       ``(A) $70,000,000 for each of fiscal years 2001 and 2002 
     (which shall be combined with amounts transferred under 
     paragraph (1) for each such fiscal years); and
       ``(B) $100,000,000 for fiscal year 2003.''.
       (b) Special Diabetes Programs for Indians.--Section 330C(c) 
     of such Act (42 U.S.C. 254c-3(c)) is amended--
       (1) by striking ``Notwithstanding'' and inserting the 
     following:
       ``(1) Transferred funds.--Notwithstanding''; and
       (2) by adding at the end the following:
       ``(2) Appropriations.--For the purpose of making grants 
     under this section, there is appropriated, out of any money 
     in the Treasury not otherwise appropriated--
       ``(A) $70,000,000 for each of fiscal years 2001 and 2002 
     (which shall be combined with amounts transferred under 
     paragraph (1) for each such fiscal years); and
       ``(B) $100,000,000 for fiscal year 2003.''.
       (c) Extension of Final Report on Grant Programs.--Section 
     4923(b)(2) of BBA is amended by striking ``2002'' and 
     inserting ``2003''.

     SEC. 932. APPROPRIATIONS FOR RICKY RAY HEMOPHILIA RELIEF 
                   FUND.

       Section 101(e) of the Ricky Ray Hemophilia Relief Fund Act 
     of 1998 (42 U.S.C. 300c-22 note) is amended by adding at the 
     end the following: ``There is appropriated to the Fund 
     $475,000,000 for fiscal year 2001, to remain available until 
     expended.''.

               Subtitle E--Information on Nurse Staffing

     SEC. 941. POSTING OF INFORMATION ON NURSING FACILITY 
                   STAFFING.

       (a) Medicare.--Section 1819(b) (42 U.S.C. 1395i-3(b)) is 
     amended by adding at the end the following new paragraph:
       ``(8) Information on nurse staffing.--
       ``(A) In general.--A skilled nursing facility shall post 
     daily for each shift the current number of licensed and 
     unlicensed nursing staff directly responsible for resident 
     care in the facility. The information shall be displayed in a 
     uniform manner (as specified by the Secretary) and in a 
     clearly visible place.
       ``(B) Publication of data.--A skilled nursing facility 
     shall, upon request, make available to the public the nursing 
     staff data described in subparagraph (A).''.
       (b) Medicaid.--Section 1919(b) (42 U.S.C. 1395r(b)) is 
     amended by adding at the end the following new paragraph:
       ``(8) Information on nurse staffing.--
       ``(A) In general.--A nursing facility shall post daily for 
     each shift the current number of licensed and unlicensed 
     nursing staff directly responsible for resident care in the 
     facility. The information shall be displayed in a uniform 
     manner (as specified by the Secretary) and in a clearly 
     visible place.
       ``(B) Publication of data.--A nursing facility shall, upon 
     request, make available to the public the nursing staff data 
     described in subparagraph (A).''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2003.

    Subtitle F--Adjustment of Multiemployer Plan Benefits Guaranteed

     SEC. 951. MULTIEMPLOYER PLAN BENEFITS GUARANTEED.

       (a) In General.--Section 4022A(c) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1322a(c)) 
     is amended--
       (1) by striking ``$5'' each place it appears in paragraph 
     (1) and inserting ``$11'';
       (2) by striking ``$15'' in paragraph (1)(A)(i) and 
     inserting ``$33''; and
       (3) by striking paragraphs (2), (5), and (6) and by 
     redesignating paragraphs (3) and (4) as paragraphs (2) and 
     (3), respectively.
       (b) Effective Date.--The amendments made by this section 
     shall apply to any multiemployer plan that has not received 
     financial assistance (within the meaning of section 4261 of 
     the Employee Retirement Income Security Act of 1974) within 
     the 1-year period ending on the date of the enactment of this 
     Act.

 MEDICARE, MEDICAID, AND SCHIP BENEFITS IMPROVEMENT AND PROTECTION ACT 
                                OF 2000

       Following is explanatory language on H.R. 5661, as 
     introduced on December 14, 2000. The conferees on H.R. 4577 
     agree with the matter included in H.R. 5661 and enacted in 
     this conference report by references and the following 
     description of it.

               TITLE I--MEDICARE BENEFICIARY IMPROVEMENTS


                SUBTITLE A--IMPROVED PREVENTIVE BENEFITS

     Section 101. Coverage of biennial screening pap smear and 
         pelvic exams
       The provision modifies current law to provide Medicare 
     coverage for biennial screening pap smears and pelvic exams, 
     effective July 1, 2001.
     Section 102. Coverage of screening for glaucoma
       The provision would add Medicare coverage for annual 
     glaucoma screenings, beginning January 1, 2002, for persons 
     determined to be at high risk for glaucoma, individuals with 
     a family history of glaucoma, and individuals with diabetes. 
     The service would have to be furnished by or under the 
     supervision of an optometrist or ophthalmologist who is 
     legally authorized to perform such services in the state 
     where the services are furnished.

[[Page 26957]]


     Section 103. Coverage of screening colonoscopy for average 
         risk individuals
       The provision would authorize coverage for screening 
     colonscopies, beginning July 1, 2001, for all individuals, 
     not just those at high risk. For persons not at high risk, 
     payments could not be made for such procedures if performed 
     within 10 years of a previous screening colonscopy or within 
     4 years of a screening flexible sigmoidoscopy.
     Section 104. Modernization of screening mammography benefit
       Beginning in 2002, the provision would eliminate the 
     statutorily prescribed payment rate for screening mammography 
     payments and specify that the services are to be paid under 
     the physician fee schedule. The provision would specify two 
     new payment rates for mammographies that utilize advanced new 
     technology for the period April 1, 2001 to December 31, 2001. 
     Payment for technologies that directly take digital images 
     would equal 150% of what otherwise be paid for a bilateral 
     diagnostic mammography. For technologies that convert 
     standards film images to digital form, an additional payment 
     of fifteen dollars would be authorized. The Secretary would 
     be required to determine whether a new code is required for 
     tests furnished after 2001.
     Section 105. Coverage of medical nutrition therapy services 
         for beneficiaries within diabetes or a renal disease
       The provision would establish, effective January 1, 2002, 
     Medicare coverage for medical nutrition therapy services for 
     beneficiaries who have diabetes or a renal disease. Medical 
     nutrition therapy services would be defined as nutritional 
     diagnostic, therapy and counseling services for the purpose 
     of disease management which are furnished by a registered 
     dietitian or nutrition professional, pursuant to a referral 
     by a physician. The provision would specify that the amount 
     paid for medical nutrition therapy services would equal the 
     lesser of the actual charge for the service or 85% of the 
     amount that would be paid under the physician fee schedule if 
     such services were provided by a physician. Assignment would 
     be required for all claims. The Secretary would be required 
     to submit a report to Congress that contains an evaluation of 
     the effectiveness of services furnished under this provision.


               subtitle b--other beneficiary improvements

     Section 111. Acceleration of reduction of beneficiary 
         copayment for hospital outpatient department services
       Effective April 1, 2000, the provision would modify current 
     law by limiting the amount of a beneficiary copayment for a 
     procedure in a hospital outpatient department to the hospital 
     inpatient deductible applicable in that year.
       In addition, starting in April 2001, the provisions would 
     require the Secretary of HHS to reduce the effective 
     copayment rate for outpatient services to a maximum rate of 
     57% for the remainder of 2001, 55% in 2002 and 2003, 50% in 
     2004, 45% in 2005, and 40% in 2006 and subsequent years. As 
     stated in BBA 97, hospitals may waive any increase in 
     coinsurance that may have arisen from the implementation of 
     the outpatient prospective payment system (PPS).
       The Comptroller General would be required to work with the 
     National Association of Insurance Commissioners (NAIC) to 
     evaluate the extent to which premiums for supplemental 
     policies reflect the acceleration of the reduction in 
     beneficiary coinsurance of hospital outpatient services and 
     result in saving to beneficiaries and to report to the 
     Congress by April 1, 2004.
     Section 112. Preservation of coverage of drugs and 
         biologicials under part B of the Medicare Program
       The provision would clarify policy with regard to coverage 
     of drugs, provided incident to physicians services, that 
     cannot be self-administered. The provision would specify that 
     such drugs are covered when they are not usually self-
     administered by the patient.
     Section 113. Elimination of time limitation on Medicare 
         benefits for immunosuppressive drugs
       The provision would eliminate the current time limitations 
     on the coverage of immunosuppressive drugs for beneficiaries 
     would have received a covered organ transplant. The provision 
     would apply to drugs furnished, on or after the date 
     enactment.
     Section 114. Imposition of billings limits on drugs
       The provision would specify that payment for drugs under 
     Part B must be made on the basis of assignment.
     Section 115. Waiver of 24-month waiting period for Medicare 
         coverage of individuals disabled with amyotrophic lateral 
         sclerosis (ALS)
       The provision would waive the 24-month waiting period 
     (otherwise required for an individual to establish Medicare 
     eligibility on the basis of a disability) for persons 
     medically determined to have amyotrophic lateral sclerosis 
     (ALS). The provision would be effective July 1, 2001.


             subtitle C--demonstration projects and studies

     Section 121. Demonstration project for disease management for 
         severely chronically ill Medicare beneficiaries
       The Secretary would be required to conduct a demonstration 
     project to illustrate the impact on costs and health outcomes 
     of applying disease management to Medicare beneficiaries with 
     diagnosed, advanced-stage congestive heart failure, diabetes, 
     or coronary heart disease. Up to 30,000 beneficiaries would 
     be able to enroll, on a voluntary basis, for disease 
     management services related to their chronic health 
     condition. In addition, contractors providing disease 
     management services would be responsible for providing 
     beneficiaries enrolled in the project with prescription 
     drugs.
     Section 122. Cancer prevention and treatment demonstration 
         for ethnic and racial minorities
       The provision would require the Secretary to conduct 
     demonstration projects for the purpose of developing models 
     and evaluating methods that improve the quality of cancer 
     prevention services, improve clinical outcomes, eliminates 
     disparities in the rate of preventative screening measures, 
     and promote collaboration and community-based organizations 
     for ethnic and racial minorities.
     Section 123. Study on Medicare coverage of routine tyroid 
         screening
       The provision would require the Secretary to request the 
     National Academy of Sciences, and as appropriate in 
     conjunction with the United States Preventive Services Task 
     Force, to analyze the addition of routine thyroid screening 
     under Medicare. The analysis would consider the short term 
     and long term benefits, and cost to Medicare, of adding such 
     coverage for some or all beneficiaries.
     Section 124. MedPAC study on consumer coalitions
       The provision would require MedPAC to conduct a study that 
     examines the use of consumer coalitions in the marketing of 
     Medicare+Choice plans. A consumer coalition would be defined 
     as a non-profit community-based organization that provides 
     information to beneficiaries about their health options under 
     Medicare and negotiates with Medicare+Choice plans on 
     benefits and premiums for beneficiaries who are members of 
     the coalition or otherwise affiliated with it.
     Section 125. Study on limitation on State payment for 
         Medicare cost-sharing affecting access to services for 
         qualified Medicare beneficiaries
       The provision would require the Secretary of HHS to conduct 
     a study to determine if access to certain services (including 
     mental health services) has been affected by a specific 
     provision in law. The provision specifies that states are not 
     required to pay Medicare cost-sharing charges for QMBs to the 
     extent these payments would result in a total payment in 
     excess of the Medicaid level.
     Section 126. Studies on preventive interventions in primary 
         care for older Americans
       The provision would require the Secretary, acting through 
     the United States Preventive Services Task Force, to conduct 
     a series of studies designed to identify preventive 
     interventions in primary care for older Americans.
     Section 127. MedPAC study and report on Medicare coverage of 
         cardiac and pulmonary rehabilitation and therapy services
       The provision would require MedPAC to conduct a study on 
     coverage of cardiac and pulmonary rehabilitation therapy 
     services under Medicare.
     Section 128. Lifestyle modification program demonstration
       The provision modifies the current medicare demonstration 
     project, known as the Lifestyle Modification Program. It 
     would extent the project to 4 years and to assure 1,800 
     beneficiaries complete the Program in order to provide a 
     statistically valid sample. The provision requires a study of 
     its cost-effectiveness and provides for an initial report 
     after 900 beneficiaries complete the Program and a final 
     report after 1,800 beneficiaries complete the Program.

                TITLE II--RURAL HEALTH CARE IMPROVEMENTS


            subtitle A--critical access hospital provisions

     Section 201. Clarification of no beneficiary cost-sharing for 
         clinical diagnostic laboratory tests furnished by 
         critical access hospitals
       Effective for services furnished on or after the enactment 
     of BBRA99, Medicare beneficiaries would not be liable for any 
     coinsurance deductible, copayment, or other cost sharing 
     amount with respect to clinical diagnostic laboratory 
     services furnished as an outpatient critical access hospital 
     (CAH) service. Conforming changes that clarify that CAHs are 
     reimbursed on a reasonable cost basis for outpatient clinical 
     diagnostic laboratory services are also included.
     Section 202. Assistance with fee schedule payment for 
         professional services under all-inclusive rate
       Effective for items and services furnished on or after July 
     1, 2001, Medicare would pay a CAH for outpatient services 
     based on reasonable costs or, at the election of an entity, 
     would pay the CAH a facility fee based on reasonable costs 
     plus an amount based on

[[Page 26958]]

     115% of Medicare's fee schedule for professional services.
     Section 203. Exemption of critical access hospital swing beds 
         from SNF PPS
       Swing beds in critical access hospitals (CAHs) would be 
     exempt from the SNF prospective payment system. CAHs would be 
     paid for covered SNF services on a reasonable cost basis.
     Section 204. Payment in critical access hospitals for 
         emergency room on-call physicians
       When determining the allowable, reasonable cost of 
     outpatient CAH services, the Secretary would recognize 
     amounts for the compensation and related costs for on-call 
     emergency room physicians who are not present on the 
     premises, are not otherwise furnishing services, and are not 
     on-call at any other provider or facility. The Secretary 
     would define the reasonable payment amounts and the meaning 
     of the term ``on-call.'' The provision would be effective for 
     cost reporting periods beginning on or after October 1, 2001.
     Section 205. Treatment of ambulance services furnished by 
         certain critical access hospitals
       Ambulance services provided by a critical access hospital 
     (CAH) or provided by an entity that is owned or operated by a 
     CAH would be paid on a reasonable cost basis if the CAH or 
     entity is the only provider or supplier of ambulance services 
     that is located within a 35-mile drive of the CAH. The 
     provision would be effective for services furnished on or 
     after enactment.
     Section 206. GAO study on certain eligibility requirements 
         for critical access hospitals
       Within one year of enactment, GAO would be required to 
     conduct a study on the eligibility requirements for critical 
     access hospitals (CAHs) with respect to limitations on 
     average length of stay and number of beds, including an 
     analysis of the feasibility of having a distinct part unit as 
     part of a CAH and the effect of seasonal variations in CAH 
     eligibility requirements. GAO also would be required to 
     analyze the effect of seasonal variations in patient 
     admissions on critical access hospital eligibility 
     requirements with respect to limits on average annual length 
     of stay and number of beds.


              subtitle b--other rural hospitals provisions

     Section 211. Treatment of rural disproportionate share 
         hospitals
       For discharges occurring on or after April 1, 2001, all 
     hospitals would be eligible to receive DSH payments when 
     their DSH percentage (threshold amount) exceeds 15%. The DSH 
     payment formulas for sole community hospitals (SCHs), rural 
     referral centers (RRCs), rural hospitals that are both SCHs 
     and RRCs, small rural hospitals and urban hospitals with less 
     than 100 beds would be modified.
     Section 212. Option to base eligibility for Medicare 
         dependent, small rural hospital program on discharges 
         during 2 of the 3 most recent audited cost reporting 
         periods
       An otherwise qualifying small rural hospital would be able 
     to be classified as an MDH if at least 60% of its days or 
     discharges were attributable to Medicare Part A beneficiaries 
     in at least two of the three most recent audited cost 
     reporting periods for which the Secretary has a settled cost 
     report.
     Section 213. Extension of option to use rebased target 
         amounts to all sole community hospitals
       Any SCH would be able to elect payment based on hospital 
     specific, updated FY1996 costs if this target amount resulted 
     in higher Medicare payments. There would be a transition 
     period with Medicare payment based completely on updated 
     FY1996 hospital specific costs for discharges occurring after 
     FY2003.
     Section 214. MedPAC analysis of impact of volume on per unit 
         cost of rural hospitals with psychiatric units
       MedPAC would be required to report on the impact of volume 
     on the per unit cost of rural hospitals with psychiatric 
     units and include in its report a recommendation on whether 
     special treatment is warranted.


                   subtitle c--other rural provisions

     Section 221. Assistance for providers of ambulance services 
         in rural areas
       The provision would make additional payments to providers 
     of ground ambulance services for trips, originating in rural 
     areas, that are greater than 17 miles and up to 50 miles. The 
     payments would be made for services furnished on or after 
     July 1, 2001 and before January 1, 2004. The provision would 
     require the Comptroller General to conduct a study to examine 
     both the costs of efficiently providing ambulance services 
     for trips originating in rural areas and the means by which 
     rural areas with low population densities can be identified 
     for the purpose of designating areas in which the costs of 
     ambulance services would be expected to be higher. The 
     Comptroller General would submit a report to Congress by June 
     30, 2002 on the results of the study, together with 
     recommendations on steps that should be taken to assure 
     access to ambulance services for trips originating in rural 
     areas. The Secretary would be required to take these findings 
     into account when establishing the fee schedule, beginning 
     with 2004.
     Section 222. Payment for certain physician assistant services
       This provision would give permanent authority to physician 
     assistants who owned rural health clinics that lost their 
     designation as such to bill Medicare directly.
     Section 223. Expansion of Medicare payment for telehealth 
         services
       The provision would establish revised payment provisions, 
     effective no later than October 1, 2001, for services that 
     are provided via a telecommunications system by a physician 
     or practitioner to an eligible beneficiary in a rural area. 
     The Secretary would be required to make payments for 
     telehealth services to the physician or practitioner at the 
     distant site in an amount equal to the amount that would have 
     been paid to such physician or practitioner if the service 
     had been furnished to the beneficiary without the use of a 
     telecommunications system. A facility fee would be paid to 
     the originating site. Originating sites would include a 
     physician or practitioner office, a critical access hospital, 
     a rural health clinic, a Federally qualified health center or 
     a hospital. The Secretary would be required to conduct a 
     study, and submit recommendations to Congress, that identify 
     additional settings, sites, practitioners and geographic 
     areas that would be appropriate for telehealth services. 
     Entities participating in Federal demonstration projects 
     approved by, or receiving funding from, the Secretary as of 
     December 31, 2000 would be qualified sites.
     Section 224. Expanding access to rural health clinics
       All hospitals of less than 50 beds that own rural health 
     clinics would be exempt from the per visit limit.
     Section 225. MedPAC study on low-volume, isolated rural 
         health providers
       MedPAC would be required to study the effect of low patient 
     and procedure volume on the financial status and Medicare 
     payment methods for hospital outpatient services, ambulance 
     services, hospital inpatient services, skilled nursing 
     facility services, and home health services in isolated rural 
     health care providers.

                TITLE III--PROVISIONS RELATING TO PART A


                SUBTITLE A--INPATIENT HOSPITAL SERVICES

     Section 301. Revision of acute care hospital payment update 
         for 2001
       All hospitals would receive the full market basket index 
     (MBI) as an update for FY2001. In order to implement this 
     increase for hospitals other than sole community hospitals 
     (SCH), those hospitals would receive the MBI minus 1.1 
     percentage points (the current statutory provision) for 
     discharges occurring on or after October 1, 2000 and before 
     April 1, 2001; these non-SCH hospitals would receive the MBI 
     plus 1.1 percentage points for discharges occurring on or 
     after April 1, 2001 and before October 1, 2001. As indicated 
     by section 547(a), this payment increase would not apply to 
     discharges occurring after FY2001. For FY2002 and FY2003, 
     hospitals would receive the MBI minus .55 percentage points. 
     For FY2004 and subsequently, hospitals would receive the MBI.
       The Secretary is directed to consider the prices of blood 
     and blood products purchased by hospitals in the next 
     rebasing and revision of the hospital market basket to 
     determine whether those prices are adequately reflected in 
     the market basket index. MedPAC is directed to conduct a 
     study on increased hospital costs attributable to complying 
     with new blood safety measures and providing such services 
     using new technologies among other issues.
       For discharges occurring on or after October 1, 2001, the 
     Secretary would be able to adjust the standardized amount in 
     future fiscal years to correct for changes in the aggregate 
     Medicare payments caused by adjustments to the DRG weighting 
     factors in a previous fiscal year (or estimates that such 
     adjustments for a future fiscal year) that did not take into 
     account coding improvements or changes in discharge 
     classifications and did not accurately represent increases in 
     the resource intensity of patients treated by PPS hospitals.
     Section 302. Additional modification in transition for 
         indirect medical education (IME) percentage adjustment
       Teaching hospitals would receive 6.25% IME payment 
     adjustment (for each 10% increase in teaching intensity) for 
     discharges occurring on or after October 1, 2001 and before 
     April 1, 2001. The IME adjustment would increase to 6.75% for 
     discharges on or after April 1, 2001 and before October 1, 
     2001. As indicated in Section 547(a), the payment increase 
     would not apply to discharges after FY2001. The IME 
     adjustment would be 6.5% in FY2002 and 5.5% in FY2003 and in 
     subsequent years.
     Section 303. Decrease in reductions for disproportionate 
         share hospital (DSH) payments
       Reductions in the DSH payment formula amounts would be 2% 
     in FY2001, 3% in FY2002, and 0% in FY2003 and subsequently. 
     To implement the FY2001 provision, DSH amounts for discharges 
     occurring on or after October 1, 2000 and before April 1, 
     2001, would be reduced by 3% which was the reduction in

[[Page 26959]]

     effect prior to enactment of this provision. DSH amounts for 
     discharges occurring on or after April 1, 2001 and before 
     October 1, 2001 would be reduced by only 1 percentage point. 
     As indicated by Section 547(a), this payment adjustment would 
     not apply to discharges after FY2001.
     Section 304. Wage index improvements
       For FY2001 or any fiscal year thereafter, a Medicare 
     Geographic Classification Review Board (MGCRB) decision to 
     reclassify a prospective payment system hospital for use of a 
     different area's wage index would be effective for 3 fiscal 
     years. The Secretary would establish procedures whereby a 
     hospital could elect to terminate this reclassification 
     decision before the end of such period. For FY2003 and 
     subsequently, MGCRB would base any comparison of the average 
     hourly wage of the hospital with the average hourly wage for 
     hospitals in the area using data from the each of the two 
     immediately preceding surveys as well as data from the most 
     recently published hospital wage survey.
       The Secretary would establish a process which would first 
     be available for discharges occurring on or after October 1, 
     2001 where a single wage index would be computed for all 
     geographic areas in the state. If the Secretary applies a 
     statewide geographic index, an application by an individual 
     hospital would not be considered. The Secretary would also 
     collect occupational data every three years in order to 
     construct an occupational mix adjustment for the hospital 
     area wage index. The first complete data collection effort 
     would occur no later than September 30, 2003 for application 
     beginning October 1, 2004.
     Section 305. Payment for inpatient services in rehabilitation 
         hospitals
       Total payments for rehabilitation hospitals in FY2002 would 
     equal the amounts of payments that would have been made if 
     the rehabilitation prospective payment system (PPS) had not 
     been enacted. A rehabilitation facility would be able to make 
     a one-time election before the start of the PPS to be paid 
     based on a fully phased-in PPS rate.
     Section 306. Payment for inpatient services of psychiatric 
         hospitals
       The provision would increase the incentive payments for 
     psychiatric hospitals and distinct part units of 3% for cost 
     reporting periods beginning on or after October 1, 2000.
     Section 307. Payment for inpatient services of long-term care 
         hospitals
       For cost reporting periods beginning during FY2001, long 
     term hospitals would have the national cap increased by 2% 
     and the target amount increased by 25%. Neither these 
     payments nor the increased bonus payments provided by BBRA 99 
     would be factored into the development of the prospective 
     payment system (PPS) for long term hospitals. When developing 
     the PPS for inpatient long term hospitals, the Secretary 
     would be required to examine the feasibility and impact of 
     basing payment on the existing (or refined) acute hospital 
     DRGs and using the most recently available hospital discharge 
     data. If the Secretary is unable to implement a long term 
     hospital PPS by October 1, 2002, the Secretary would be 
     required to implement a PPS for these hospitals using the 
     existing acute hospital DRGs that have been modified where 
     feasible.


 subtitle b--adjustments to pps payments for skilled nursing facilities

     Section 311. Elimination of reduction in skilled nursing 
         facility (SNF) market basket update in 2001
       The provision would modify the schedule and rates according 
     to which federal per diem payments are updated. In FY2002 and 
     FY2003 the updates would be the market basket index increase 
     minus 0.5 percentage point. The update rate for the period 
     October 1, 2000, through March 31, 2001, would be the market 
     basket index increase minus 1 percentage point; the update 
     rate for the period April 1, 2001, through September 30, 
     2001, would be the market basket index increase plus one 
     percentage point (this increase would not be included when 
     determining payment rates for the subsequent period). 
     Temporary increases in the federal per diem rates provided by 
     BBRA 99 would be in addition to the increases in this 
     provision. By July 1, 2002, the Comptroller General would be 
     required to submit a report to Congress on the adequacy of 
     Medicare payments to SNFs, taking into account the role of 
     private payers, medicaid, and case mix on the financial 
     performance of SNFs and including an analysis, by RUG 
     classification, of the number and characteristics of such 
     facilities. By January 1, 2005, the Secretary would be 
     required to submit a report to Congress on alternatives for 
     classification of SNF patients.
     Section 312. Increase in nursing component of PPS Federal 
         rate
       The provision would increase the nursing component of each 
     RUG by 16.66 percent over current law for SNF care furnished 
     after April 1, 2001, and before October 1, 2002.
       The Comptroller General would be required to conduct an 
     audit of nurse staffing ratios in a sample of SNFs and to 
     report to Congress by August 1, 2002, on the results of the 
     audit of nurse staffing ratios and recommend whether the 
     additional 16.66 percent payment should be continued.
     Section 313. Application of SNF consolidated billing 
         requirement limited to part A covered stays
       Effective January 1, 2001, the provision would limit the 
     current law consolidated billing requirement to services and 
     items furnished to SNF residents in a Medicare part A covered 
     stay and to therapy services furnished in part A and part B 
     covered stays.
       The Inspector General of HHS would be required to monitor 
     part B payments to SNFs on behalf of residents who are not in 
     a part A covered stay.
     Section 314. Adjustment of rehabilitation RUGS to correct 
         anomaly in payment rates
       Effective for skilled nursing facility (SNF) services 
     furnished on or after April 1, 2002, the provision would 
     increase by 6.7 percent certain federal per diem payments to 
     ensure that Medicare payments for SNF residents with ``ultra 
     high'' and ``high'' rehabilitation therapy needs are 
     appropriate in relation to payments for residents needing 
     ``medium'' or ``low'' levels of therapy. The 20 percent 
     additional payment that was provided in BBRA 99 for certain 
     RUGS is removed to make this provision budget neutral.
       The Inspector General of HHS would be required to review 
     and report to Congress by October 1, 2001, regarding whether 
     the RUG payment structure as in effect under the BBRA 99 
     includes incentives for the delivery of inadequate care.
     Section 315. Establishment of process for geographic 
         reclassification
       The provision would permit the Secretary to establish a 
     process for geographic reclassification of skilled nursing 
     facilities based upon the method used for inpatient 
     hospitals. The Secretary may implement the process upon 
     completion of the data collection necessary to calculate an 
     area wage index for workers in skilled nursing facilities.


                        subtitle c--hospice care

     Section 321. 5 Percent increase in payment base
       The provision would increase, effective April 1, 2001, the 
     base Medicare daily payment rates for hospice care for fiscal 
     year 2001 by 5 percentage points over the rates otherwise in 
     effect. This increase would continue to apply after fiscal 
     year 2001. The temporary increase in payment rates provided 
     in BBRA 99 for FY2001 and FY2002 (.5 percent and .75 percent, 
     respectively) would not be affected. In addition, the hospice 
     wage index for one Metropolitan Statistical Area for fiscal 
     year 2000 would be adjusted.
     Section 322. Clarification of physician certification
       Effective for certifications of terminal illness made on or 
     after the date of enactment, the provision would modify 
     current law to specify that the physician's or hospice 
     medical director's certification of terminal illness would be 
     based on his/her clinical judgment regarding the normal 
     course of the individual's illness. The Secretary would be 
     required to study and report to Congress within 2 years of 
     enactment on the appropriateness of certification of 
     terminally ill individuals and the effect of this provision 
     on such certification.
     Section 323. MedPAC report on access to, and use of, hospice 
         benefit
       The provision would require MedPAC to examine the factors 
     affecting the use of Medicare hospice benefits, including 
     delay of entry into the hospice program and urban and rural 
     differences in utilization rates. The provision would require 
     a report on the study to be submitted to Congress 18 months 
     after enactment.


                      subtitle d--other provisions

     Section 331. Relief from Medicare Part A late enrollment 
         penalty for group buy-in for state and local retirees
       The provision would exempt certain state and local 
     retirees, retiring prior to January 1, 2002, from the Part A 
     delayed enrollment penalties. These would be groups of 
     persons for whom the state or local government elected to pay 
     the delayed Part A enrollment penalty for life. The amount of 
     the delayed enrollment penalty which would otherwise be 
     assessed would be reduced by an amount equal to the total 
     amount of Medicare payroll taxes paid by the employee and the 
     employer on behalf of the employee. The provision would apply 
     to premiums for months beginning with January 1, 2002.

                TITLE IV--PROVISIONS RELATING TO PART B


                subtitle a--hospital outpatient services

     Section 401. Revision of hospital outpatient PPS payment 
         update
       The provision would modify the current law update rates 
     applicable to the hospital outpatient PPS by providing in 
     FY2001 an update equal to the full rate of increase in the 
     market basket index. As under current law, the increase in FY 
     2002 would be the market basket index increase minus one 
     percentage point.
       A special rule applies to the OPD PPS rates in 2001: For 
     the period January 2, 2001 through March 31, 2001, the PPS 
     amounts shall be those in effect on the day before 
     implementation of the new law. For the periods April 2001, 
     through December 31, 2001, the PPS amounts in effect during 
     the prior period shall be increased by 0.32%.
       Effective as if enacted with BBA 97, if the Secretary 
     determines that updates to the adjustment factor used to 
     convert the relative

[[Page 26960]]

     utilization weights under the PPS into payment amounts have, 
     or are likely to, result in hospitals' changing their coding 
     or classification of covered services, thereby changing 
     aggregate payments, the Secretary would be authorized to 
     adjust the conversion factor in later years to eliminate the 
     effect of coding or classification changes.
     Section 402. Clarifying process and standards for determining 
         eligibility of devices for pass-through payments under 
         hospital outpatient PPS
       The provision would modify the procedures and standards by 
     which certain medical devices are categorized and determined 
     eligible for pass-through payments under the PPS. Through 
     public rule-making procedures, the Secretary would be 
     required to establish criteria for defining special payment 
     categories under the PPS for new medical devices. The 
     Secretary would be required to promulgate, through the use of 
     a program memorandum, initial categories that would encompass 
     each of the individual devices that the Secretary had 
     designated as qualifying for the pass-through payments to 
     date. In addition, similar devices not so designated because 
     they were payable under Medicare prior to December 31, 1996, 
     would also be included in initial categories. The Secretary 
     would be required to create additional new categories in the 
     future to acommodate new technologies meeting the ``not 
     insignificant cost'' test established in BBRA 99.
       Once the categories were established, pass-through payments 
     currently authorized under section 1833(t)(b) of the Social 
     Security Act would proceed on a category-specific, rather 
     than device-specific basis. These payments would be 
     designated as ``category-based pass-through payments.'' These 
     payments would be continued to be made for the 2 to 3 years 
     payment period originally specified in BBRA 99, and, for each 
     given category, would begin when the first such payment is 
     made for any device included in a specified category. At the 
     conclusion of this transitional payment period, categories 
     would sunset and payment for the device would be included in 
     the underlying PPS payment for the related service.
     Section 403. Application of OPD PPS transitional corridor 
         payments to certain hospitals that did not submit a 1996 
         cost report
       Effective as if enacted with BBRA 99, the provision would 
     modify current law as enacted in BBA 99 to enable all 
     hospitals, not just those hospitals filing 1996 cost reports, 
     to be eligible for transitional payments under the PPS.
     Section 404. Application of rules for determining provider-
         based status for certain entities
       The provision would grandfather existing arrangements 
     whereby certain entities (such as outpatient clinics, skilled 
     nursing facilities, etc.) are considered ``provider-based'' 
     entities, meaning they are affiliated financially and 
     clinically with a hospital. Existing provider-based status 
     designations would continue for two years beginning October 
     1, 2000. If a facility or organization requests approval for 
     provider-based status during the period October 1, 2000, 
     through September 31, 2002, it could not be treated as if it 
     did not have such status during the period of time the 
     determination is pending. In making such a status 
     determination on or after October 1, 2000, HCFA would treat 
     the applicant as satisfying any requirements or standards for 
     geographic location if it satisfied geographic location 
     requirements in regulations or is located not more than 35 
     miles from the main campus of the hospital.
       An applicant facility or organization would be treated as 
     satisfying all requirements for provider-based status if it 
     is owned or operated by a unit of State or local government 
     or is a public or private nonprofit corporation that is 
     formally granted governmental powers by a unit of State or 
     local government, or is a private hospital that, under 
     contract, serves certain low income households or has a 
     certain disproportionate share adjustment.
       These provisions are in effect during a two-year period 
     beginning on October 1, 2000.
     Section 405. Treatment of children's hospitals under 
         prospective payment system
       The BBRA 99 provides special ``hold harmless'' payments to 
     ensure that cancer hospitals would receive no less under the 
     hospital outpatient PPS than they would have received, in 
     aggregate, under the ``pre-BBA'' system, that is, the pre-PPS 
     payment system. Effective as if included in the BBRA 99, the 
     provision would extend this hold harmless protection to 
     children's hospitals.
     Section 406. Inclusion of temperature monitored cryoablation
       The provision would include temperature monitored 
     cryoablation as part of the transitional pass-through for 
     certain medical devices, drugs, and biologicals under the 
     hospital outpatient prospective payment system, effective 
     April 1, 2001.


         subtitle b--provisions relating to physicians services

     Section 411. GAO studied relating to physicians' services
       The provision would require the GAO to conduct a study on 
     the appropriateness of furnishing in physicians offices 
     specialist services (such as gastrointestinal endoscopic 
     physicians services) which are ordinarily furnished in 
     hospital outpatient departments. The GAO would not be 
     required to study the refinements to the practice expense 
     relative value made during the transition to the resource-
     based system.
     Section 412. Physician group practice demonstration
       The provision would require the Secretary to conduct 
     demonstration projects to test, and if proven effective, 
     expand the use of incentives to health care groups 
     participating under Medicare. Such incentives would be 
     designed to encourage coordination of care furnished under 
     Medicare Parts A and B by institutional and other providers 
     and practitioners; to encourage investment in administrative 
     structures and processes to encourage efficient service 
     delivery; and to reward physicians for improving health 
     outcomes. The Secretary would establish for each group 
     participating in a demonstration, a base expenditure amount 
     and an expenditure target (reflecting base expenditures 
     adjusted for risk and expected growth rates). The Secretary 
     would pay each group a bonus for each year equal to a portion 
     of the savings for the year relative to the target. In 
     addition, at such time as the Secretary had developed 
     appropriate criteria, the Secretary would pay an additional 
     bonus related to process and outcome improvements. Total 
     payments under demonstrations could not exceed what the 
     Secretary estimates would be paid in the absence of the 
     demonstration program.
     Section 413. Study on enrollment procedures for groups that 
         retain independent contractor physicians.
       The provision would require the Comptroller General to 
     conduct a study of the current Medicare enrollment process 
     for groups that retain independent contractor physicians; 
     particular emphasis would be placed on hospital-based 
     physicians, such as emergency department staffing groups.


                       subtitle c--other services

     Section 421. One-year extension of moratorium on therapy 
         caps; report on standards for supervision of physical 
         therapy assistants
       The provision would extend the moratorium on the physical 
     therapy and occupational therapy caps for 1 year through 
     2002; it would also extend the requirement for focused 
     reviews of therapy claims for the same period. The Secretary 
     would be required to conduct a study on the implications of 
     eliminating the ``in the room'' supervision requirements for 
     Medicare payment for physical therapy assistants who are 
     supervised by physical therapists and the implications of 
     this requirement on the physical therapy cap.
     Section 422. Update in renal dialysis composite rate
       The provision would specify that the composite rate payment 
     for renal dialysis service would be increased by 2.4% for 
     2001. The provision would require the Secretary to collect 
     data and develop an end-stage renal disease (ESRD) market 
     basket whereby the Secretary could estimate before the 
     beginning of a year the percentage increase in costs for the 
     mix of labor and non-labor goods and services included in the 
     composite rate. The Secretary would report to Congress on the 
     index together with recommendations on the appropriateness of 
     an annual or periodic update mechanism for dialysis services. 
     The Comptroller General would be required to study the access 
     of beneficiaries to dialysis services. There is a hotel 
     harmless provision for facilities who received exceptions for 
     their 2000 rates. In addition, facilities which did not apply 
     for an exception in 2000 would have the opportunity to apply 
     during the first 6 months of 2001. Exceptions granted under 
     the hold harmless or granted during the extension period, 
     would continue to apply so long as they provide for higher 
     payment rates. The provision would specify that for the 
     period January 1, 2001-March 31, 2001, the applicable 
     composite rate is the rate in effect before enactment of this 
     provision. The rate in effect for the period April 1, 2001-
     December 31, 2001 is the rate established under this section 
     increased by a transitional percentage allowance equal to 
     0.39 percent.
     Section 423. Payment for ambulance services
       The provision would provide for the full inflation update 
     in ambulance payments for 2001. It would also specify that 
     any phase-in of the ambulance fee schedule would provide for 
     full payment of national mileage rates in states where 
     separate mileage payments were not made prior to 
     implementation of the fee schedule. The provision would 
     specify that for the period January 1, 2001-June 30, 2001, 
     the inflation update would be that determined prior to 
     enactment of this provision. For services furnished from July 
     1, 2001-December 31, 2001, the update would be 4.7%. The 
     provision relating to mileage payments would be effective 
     July 1, 2001.
     Section 424. Ambulatory surgical centers
       The provision would delay implementation of proposed 
     regulatory changes to the ambulatory payment classification 
     system, which are based on 1994 cost data, until January 1, 
     2002. At that time, such changes would be phased in over 4 
     years: in the first year the payment amounts would be 25 
     percent of the revised rates and 75 percent of the prior 
     system rates; in the second year payments

[[Page 26961]]

     would be 50 percent of the revised rate and 50 percent of the 
     prior system rates, etc. The provision also requires that the 
     revised system, based on 1999 (or later) cost data, be 
     implemented January 1, 2003. (The phase-in of the revised 
     system and 1994 data would end when the system with 1999 or 
     later data was implemented.)
     Section 425. Full updated for durable medical equipment
       The provision would modify updates to payments for durable 
     medical equipment. For 2001, the payments for covered DME 
     would be increased by the full increase in the consumer price 
     index for urban consumers (CPI-U) during the 12-month period 
     ending June 2000. In general, in 2002 and thereafter, the 
     annual update would equal the full increase in the CPI-U for 
     the 12 months ending the previous June. The provision specify 
     that fir the period January 1, 2001, through June 30 2000, 
     the applicable amounts paid for DME are the amounts in effect 
     before enactment of the provision. The amounts in effect for 
     the period July 1, 2001. through December 31, 2001 would be 
     the amounts established under this section increased by a 
     transitional allowance of 3.28%.
     Section 426. Full update for orthotics and prosthetics
       The provision would modify updates to payments for 
     orthotics and prosthetics. In 2000, the rates would be 
     increased by one percent. In 2001, the increase would be 
     equal to the percentage increase in the CPI-U during the 12-
     month period ending with June, 2000. For 2002, payments would 
     be increased by one percent over the prior year's amounts. 
     The provision would specify that for the period January 1, 
     2001, through June 30, 2001, the applicable amounts paid for 
     these items would be the amounts in effect before enactment 
     of this provision. The amounts in effect for the period July 
     1, 2001, through December 31, 2001, would be amounts 
     established under this section increased by a transitional 
     allowance of 2.6%.
     Section 427. Establishment of special payment provisions and 
         requirement for prosthetics and certain custom fabricated 
         orthotic items
       Under the provision, certain prosthetics or custom 
     fabricated orthotics would be covered by Medicare if 
     furnished by a qualified practitioner and fabricated by a 
     qualified practitioner or qualified supplier. The Secretary 
     would be required to establish a list of such items in 
     consultation with experts. Within one year of enactment, the 
     Secretary would be required to promulgate regulations to 
     provide these items, using negotiated rulemaking procedures.
       Not later than 6 months from enactment, the Comptroller 
     General would be required to submit to Congress a report on 
     the Secretary's compliance with the Administrative Procedures 
     Act with regard to HCFA Ruling 96-1; certain impacts of that 
     ruling; the potential for fraud and abuse in provision of 
     prosthetics and orthotics under special payment rules and for 
     custom fabricated items; and the effect on Medicare payments 
     if that ruling were overturned.
     Section 428. Replacement of prosthetic devices and parts
       The provision would authorize Medicare coverage for 
     replacement of artificial limbs, or replacement parts for 
     such devices, if ordered by a physician for specified 
     reasons. Effective for items furnished on or after enactment, 
     coverage would apply to prosthetic items 3 or more years old, 
     and would supersede any 5-year age rules for such item under 
     current law.
     Section 429. Revised part B payment for drugs and 
         bioliogicals and related services
       The provision would require the Comptroller General to 
     study and submit a report to Congress and the Secretary on 
     the reimbursement for drugs and biologicals and for related 
     services under Medicare; the report would include specific 
     recommendations for revised payment methodologies. The 
     Secretary would revise the current payment methodologies for 
     covered drugs and biologicals and related services based on 
     these recommendations; however, total payments under the 
     revised methodologies could not exceed the aggregate payments 
     the Secretary estimates would have been made under the 
     current law. The provision would establish a moratorium on 
     reductions in payment rates, in effect on January 1, 2001, 
     until the Secretary reviewed the GAO report.
     Section 430. Contrast enhanced diagnostic procedures under 
         hospital prospective Payment system
       The provision would require the Secretary to create under 
     the hospital outpatient PPS additional and separate groups of 
     covered services which include procedures that utilize 
     contrast agents and would include contrast agents within the 
     definition of ``drugs'' for purposes of the medicare title. 
     The provision would apply to items and services furnished on 
     or after July 1, 2001.
     Section 431. Qualification for community mental health 
         centers
       The provision would clarify the qualifications for 
     community mental health centers providing partial 
     hospitalization services under Medicare.
     Section 432. Modification of Medicare billing requirements 
         for certain Indian providers
       The provision would authorize hospitals and free-standing 
     ambulatory care clinics of the Indian Health Service or 
     operated by a tribe or tribal organization to bill Medicare 
     Part B for certain services furnished at the direction of the 
     hospital or clinic. Services covered under the provision are 
     those furnished under the physician fee schedule, and 
     services furnished by a practitioner or therapist under a fee 
     schedule. The provision would be effective July 1, 2001.
     Section 433. GAO study on coverage of surgical first 
         assisting services of certified registered nurse first 
         assistants
       The provision would require the Comptroller General to 
     conduct a study on the effect on both the program and 
     beneficiaries of covering surgical first assisting services 
     of certified registered nurse first assistants.
     Section 434. MedPAC study and report on Medicare 
         reimbursement for services provided by certain providers
       The provision would require MedPAC to conduct a study on 
     the appropriateness of current payment rates for services 
     provided by a certified nurse midwife, physician assistant, 
     nurse practitioner, and clinical nurse specialist, including 
     specifically for orthopedic physician assistants.
     Section 435. MedPAC study and report on Medicare coverage of 
         services provided by certain non-physician providers
       The provision would require MedPAC to conduct a study to 
     determine the appropriateness of Medicare coverage of the 
     services provided by a surgical technologist, marriage 
     counselor, pastoral care counselor, and licensed professional 
     counselor of mental health.
     Section 436. GAO study and report on the costs of emergency 
         and medical transportation services
       The provision would require the Comptroller General to 
     conduct a study of the costs of providing emergency and 
     medical transportation services across the range of acuity 
     levels of conditions for which such transportation services 
     are provided.
     Section 437. GAO studies and reports on Medicare payments
       The provision would require the Comptroller General to 
     conduct a study on the post-payment audit process for 
     physicians services. The study would include the proper level 
     of resources HCFA should devote to educating physicians 
     regarding coding and billing, documentation requirements, and 
     calculation of overpayments. The Comptroller General would 
     also be required to conduct a study of the aggregate effects 
     of regulatory, audit, oversight and paperwork burdens on 
     physicians and other health care providers participating in 
     Medicare.
     Section 438. MedPAC study on access to outpatient plan 
         management services
       The provision would require MedPAC to conduct a study on 
     the barriers to coverage and payment for outpatient 
     intervention pain medicine procedures under Medicare.

              TITLE V--PROVISION RELATING TO PARTS A AND B


                    subtitle a--home health services

     Section 501. 1-Year additional delay in application of 15 
         percent reduction on payment limits of home health 
         services
       The provision would require that the aggregate amount of 
     Medicare payments to home health agencies in the second year 
     of the PPS (FY 2002) shall be the aggregate payments in the 
     first year of the PPS, updated by the market basket index 
     (MBI) increase minus 1.1 percentage points. The 15 percent 
     reduction to aggregate PPS amounts, which, under current law, 
     would go into effect October 1, 2001, would be delayed until 
     October 1, 2002.
       The Comptroller General (rather than the Secretary) would 
     be required to submit, by April 1, 2002, a report analyzing 
     the need for the 15 percent or other reduction.
       If the Secretary determines that updates to the PPS system 
     for a previous fiscal year (or estimates of such adjustments 
     for a future fiscal year) did (or are likely to) result in a 
     change in aggregate payments due to changes in coding or 
     classification of beneficiaries' service needs that do not 
     reflect real changes in case mix, effective for home health 
     episodes concluding on or after October 1, 2001, the 
     Secretary may adjust PPS amounts to eliminate the effect of 
     such coding or classification changes.
     Section 502. Restoration of full home health market basket 
         update for home health services for fiscal year 2001
       The provision would modify the home health PPS updates. 
     During the period October 1, 2000, through March 31, 2001, 
     the rates promulgated in the home health PPS regulations on 
     July 3, 2000, would apply for 60-day episodes of care (or 
     visits) ending in that period. For the period April 1, 2001, 
     through September 31, 2001, those rates would be increased by 
     2.2 percent for 60-day episodes (or visits) ending in that 
     time period. This increase would be included in determining 
     subsequent payment amounts.
     Section 503. Temporary two-month periodic interim payment
       The provision would provide for a one-time payment for 
     certain home health agencies

[[Page 26962]]

     that were receiving periodic interim payments under current 
     law. Home health agencies that were receiving such payments 
     as of September 30, 2000, receive a one-time payment equal to 
     four times the last 2-week payment the agency received before 
     implementation of the home health PPS on October 1, 2000. The 
     amounts would be included in the agency's last settled cost 
     report before implementation of the PPS.
     Section 504. Use of telehealth in delivery of home health 
         services
       The provision would clarify that the telecommunications 
     provisions should not be construed as preventing a home 
     health agency from providing a service, for which payment is 
     made under the prospective payment system, via a 
     telecommunications system, provided that the services do not 
     substitute for ``in-person'' home health services ordered by 
     a physician as part of a plan of care or are not considered a 
     home health visit for purposes of eligibility or payment.
     Section 505. Study on costs to home health agencies of 
         purchasing nonroutine medical supplies
       The provision would require that, not later than August 15, 
     2001, the Comptroller General shall submit to Congress a 
     report regarding the variation in prices home health agencies 
     pay for nonroutine supplies, the volume of supplies used, and 
     what effect the variations have on the provision of services. 
     The Secretary would be required to make recommendations on 
     whether Medicare payment for those supplies should be made 
     separately from the home health PPS.
     Section 506. Treatment of branch offices; GAO study on 
         supervision of home health care provided in isolated 
         rural areas
       The provision would clarify that neither time nor distance 
     between a home health agency parent office and a branch 
     office shall be the sole determinant of a home health 
     agency's branch office status. The Secretary would be 
     authorized to include forms of technology in determining 
     ``supervision'' for purposes of determining a home health 
     agency's branch office status.
       Not later than January 1, 2002, the Comptroller General 
     would be required to submit to Congress a report regarding 
     the adequacy of supervision and quality of home health 
     services provided by home health agency branch offices and 
     submits in isolated rural areas and to make recommendations 
     on whether national standards for supervision would be 
     appropriate in assuring quality.
     Section 507. Clarification of the homebound benefit
       The provision clarifies that the need for adult day care 
     for a patient's plan of treatment does not preclude 
     appropriate coverage for home health care for other medical 
     conditions. The provision also clarifies the ability of 
     homebound beneficiaries to attend religious services without 
     being disqualified from receiving home health benefits.
     Section 508. Temporary increase for home health services 
         furnished in a rural area
       For home health services furnished in certain rural areas 
     during the 2-year period beginning April 1, 2001, Medicare 
     payments are increased by 10%, without regard to budget 
     neutrality for the overall home health prospective payment 
     system. This temporary increase would not be included in 
     determining subsequent payments.


             subtitle b--direct graduate medical education

     Section 511. Increase in floor for direct graduate medical 
         education payments
       A hospital's approved per resident amount for cost 
     reporting periods beginning during FY 2002 would not be less 
     than 85% of the locality adjusted national average per 
     resident amount.
     Section 512. Change in distribution formula for 
         Medicare+Choice related nursing and allied health 
         education costs
       A hospital would receive nursing and allied health payments 
     for Medicare managed care enrollees based on its per day cost 
     of allied and nursing health programs and number of days 
     attributed to Medicare enrollees in comparison to that in all 
     other hospitals. The provision would be effective for 
     portions of cost reporting periods occurring on or after 
     January 1, 2001.


      subtitle c--changes in medicare coverage and appeals process

     Section 521. Revisions to Medicare appeals process
       The provision would modify the Medicare appeals process. 
     Generally, initial determinations by the Secretary would be 
     concluded no later than 45 days from the date the Secretary 
     received a claim for benefits. Any individual dissatisfied 
     with the initial determination would be entitled to a 
     redetermination by the carrier or fiscal intermediary would 
     made the initial determination. Such redetermination would be 
     required to be completed within 30 days of a beneficiary's 
     request. Beneficiaries could appeal the outcome of a 
     redetermination by seeking a reconsideration. Generally, a 
     request for a reconsideration must be initiated no later than 
     180 days after the date the individual receives the notice of 
     an adverse redetermination. In addition, if contested amounts 
     are greater than $100, an individual would be able to appeal 
     an adverse reconsideration decision by requesting a hearing 
     by the Secretary (for a hearing by an administrative law 
     judge, then in certain circumstances, for a hearing before 
     the Department of Appeals Board). If the dispute is not 
     satisfactorily resolved through this administrative process, 
     and if contested amounts are greater than $1,000, the 
     individual would be able to request judicial review of the 
     Secretary's final decision. Aggregation of claims to meet 
     these thresholds would be permitted.
       An expedited determination would be available for a 
     beneficiary who receive notice: 1) that a provider plans to 
     terminate services and a physician certifies that failure to 
     continue the provisions of the services is likely to place 
     the beneficiary's health at risk; or 2) that the provider 
     plans to discharge the beneficiary.
       The Secretary would enter into 3-year contracts with at 
     least 12 qualified independent contractors (QICs) to conduct 
     reconsiderations. A QIC would promptly notify beneficiaries 
     and Medicare claims processing contractors of its 
     determinations. A beneficiary could appeal the decision of a 
     QIC to an ALJ. In cases where the ALJ decision is not 
     rendered within the 90-day deadline, the appealing party 
     would be able to request a DAB hearing.
       The Secretary would perform outreach activities to inform 
     beneficiaries, providers, and suppliers of their appeal 
     rights and procedures. The Secretary would submit to Congress 
     an annual report including information on the number of 
     appeals for the previous year, identifying issues that 
     require administrative or legislative actions, and including 
     recommendations for change as necessary. The report would 
     also contain an analysis of the consistency of the QIC 
     determinations as well as the cause for any identified 
     inconsistencies.
     Section 522. Revisions to Medicare coverage process
       The provision would clarify when and under what 
     circumstances Medicare coverage policy could be challenged. 
     An aggrieved party could file a complaint concerning a 
     national coverage decision. Such complaint would be reviewed 
     by the Department Appeals Board (DAB) of HHS. The provision 
     would also permit an aggrieved party to file a complaint 
     concerning a local coverage determination. In this case, the 
     determination would be reviewed by an administrative law 
     judge. If unsatisfied, complainants could subsequently seek 
     review of such a local policy by the DAB. In both cases, a 
     DAB decision would constitute final HHS action, and would be 
     subject to judicial review. The Secretary would be required 
     to implement DAB decisions and ALJ decisions (in the case of 
     a local coverage policy) within 30 days. The provision would 
     also permit an affected party to submit a request to the 
     Secretary to issue a national coverage or noncoverage 
     determination if one has not been issued. The Secretary would 
     have 90 days to respond. HHS would be required to prepare an 
     annual report on national coverage determinations.


            subtitle d--improving access to new technologies

     Section 531. Reimbursement improvements for new clinical 
         laboratory tests and durable medical equipment
       The provision would specify that the national limitation 
     amount for a new clinical laboratory test would equal 100% of 
     the national median for such test. The Secretary would be 
     required to establish procedures that permit public 
     consultation for coding and payment determinations for new 
     clinical diagnostic laboratory tests and new durable medical 
     equipment. The Secretary would be required to report to 
     Congress on specific procedures used to adjust payments for 
     advanced technologies; the report would include 
     recommendations for legislative changes needed to assure fair 
     and appropriate payments.
     Section 532. Retention of HCPCS level III codes
       The provision would extend the time for the use of local 
     codes (known as HCPCS level III codes) through December 21, 
     2003; the Secretary would be required to make the codes 
     available to the public.
     Section 533. Recognition of new medical technologies under 
         Medicare inpatient hospital PPS
       The Secretary would be required to submit a report to 
     Congress no later than April 1, 2001, on potential methods 
     for more rapidly incorporating new medical services and 
     technologies used in the inpatient setting in the clinical 
     coding system used with respect to payment for inpatient 
     services. The Secretary would be required to identify the 
     preferred methods for expediting these coding modifications 
     in her report, and to implement such method by October 1, 
     2001. Additional hospital payments could be made by means of 
     a new technology group (DRG), an add-on payment, payment 
     adjustment or other mechanism. However, separate fee 
     schedules for additional new technology payments would not be 
     permitted. The Secretary would implement the new mechanism on 
     a budget neutral basis. The total amount

[[Page 26963]]

     of projected additional payments under the mechanism would be 
     limited to an amount not greater than the Secretary's annual 
     estimation of the costs attributable to the introduction of 
     new technology in the hospital sector as a whole (as 
     estimated for purposes of the annual hospital update 
     calculation).


                      subtitle e--other provisions

     Section 541. Increase in reimbursement for bad debt
       Effective beginning with cost reports starting in FY2001, 
     the provision would increase the percentage of the reasonable 
     costs associated with beneficiaries' bad debt in hospitals 
     that Medicare would reimburse to 70%.
     Section 542. Treatment of certain physician pathology 
         services under Medicare
       The provision would permit independent laboratories, under 
     a grandfather arrangement to continue, for a 2-year period 
     (2001-2002), direct billing for the technical component of 
     pathology services provided to hospital inpatients and 
     hospital outpatients. The Comptroller General would be 
     required to conduct a study of the effect of these provisions 
     on hospitals and laboratories and access of fee-for-service 
     beneficiaries to the technical component of physician 
     pathology services. The report would include recommendations 
     on whether the provisions should continue after the 2-year 
     period for either (or both) inpatient and outpatient hospital 
     services and whether the provision should be extended to 
     other hospitals.
     Section 543. Extension of advisory opinion authority
       The Office of the Inspector General's authority to issue 
     advisory opinions to outside parties who request guidance on 
     the applicability of the anti-kickback statute, safe harbor 
     provisions and other OIG health care fraud and abuse 
     sanctions would be made permanent.
     Section 544. Change in annual MedPAC reporting
       The provision would delay the reporting date for the MedPAC 
     report on issues affecting the Medicare program by 15 days to 
     June 15. The provision would also require record votes on 
     recommendations contained both in this report and the March 
     report on payment policies.
     Section 545. Development of patient assessment instruments
       The provision would require the Secretary to report to the 
     Congress on the development of standard instruments for the 
     assessment of the health and functional status of patients 
     and make recommendations on the use of such standard 
     instruments for payment purposes.
     Section 546. GAO report on impact of the Emergency Medical 
         Treatment and Active Labor Act (EMTALA) on hospital 
         emergency departments
       GAO would be required to evaluate the impact of the 
     Emergency Medical Treatment and Active Labor Act on 
     hospitals, emergency physicians, and on-call physicians 
     covering emergency departments and to submit a report to 
     Congress by May 1, 2001.
     Section 547. Clarification of application of temporary 
         payment increases for 2001
       The special increases and adjustments of the acute hospital 
     payment update, the indirect medical education adjustment, 
     and the disproportionate share hospital adjustment that are 
     in effect between April and October 2001 do not apply to 
     discharges after FY 2001 and are not included in determining 
     subsequent payments.
       Special update payments under the skilled nursing facility 
     prospective payment system between April and October 2001 
     would not apply to SNF services furnished after that period 
     and would not be included when determining payments for the 
     subsequent period.
       Special market basket update payments under the home health 
     prospective payment system between April and October 2001 
     would not be included in determining subsequent payments. 
     Also, temporary payments to certain rural home health 
     agencies from April 1, 2001, through September 30, 2002, 
     would not be included in determining subsequent payments.

 TITLE VI--PROVISIONS RELATING TO PART C (MEDICARE+CHOICE PROGRAM) AND 
                 OTHER MEDICARE MANAGED CARE PROVISIONS


              subtitle a--medicare+choice payment reforms

     Section 601. Increase in minimum payment amount
       The provision would set the minimum payment amount for aged 
     enrollees within the 50 states and the District of Columbia 
     in a Metropolitan Statistical Area with a population of more 
     than 250,000 at $525 in 2001. For all other areas within the 
     50 States and the District of Columbia, the minimum would be 
     $475. For any area outside the 50 States and the District of 
     Columbia, the $525 and $475 minimum amounts would also be 
     applied, except that the 2001 minimum payment amount could 
     not exceed 120% of the 2000 minimum payment amount. This 
     increase would go into effect March 1, 2001.
     Section 602. Increase in minimum percentage increase
       This provision would apply a 3% minimum update in 2001 and 
     return to the current law minimum update of 2% thereafter. 
     This increase would go into effect March 1, 2001.
     Section 603. Phase in of risk adjustment
       The current risk adjustment methodology (in which 10% of 
     payments would be based on risk-adjusted inpatient data built 
     on the 15 principal inpatient diagnostic cost groups (PIP-
     DCGs) and 90% would be adjusted solely using the older 
     demographic method) would continue through 2003. Beginning in 
     2004, the risk adjustment would be based on data from 
     inpatient hospital and ambulatory settings and the risk 
     adjustment would be phased in at 30% for 2004, 50% for 2005, 
     75% for 2006, and 100% for 2007 and subsequent years.
     Section 604. Transition to revised Medicare+Choice payment 
         rates
       Within 2 weeks after the date of enactment of the Act, the 
     Secretary must announce revised M+C capitation rates for 
     2001, due to changes from this Act. Plans that previously 
     provided notice of their intention to terminate contracts or 
     reduce their service area for 2001 would have 2 weeks after 
     announcement of the revised rates to rescind their notice and 
     submit ACR information. Further, any M+C organization that 
     would receive higher capitation payments as a result of this 
     Act must submit revised ACR information within 2 weeks after 
     announcement of the revised rates. Plans may only reduce 
     premiums, reduce cost sharing, enhance benefits, or utilize 
     stabilization funds. Any regulations that limit stabilization 
     fund amounts would be waived, with respect to ACR submissions 
     under this section of the bill. Notwithstanding the issuance 
     of revised rates, M+C organizations would continue to be paid 
     on a fee-for-service basis for costs associated with new 
     national coverage determinations that are made mid-year.
     Section 605. Revision of payment rates for ESRD patients 
         enrolled in Medicare+Choice plans
       This provision would require that the Secretary increase 
     the M+C payment rates for enrollees with ESRD. The revised 
     rates would reflect the demonstration rate (including the 
     risk-adjustment methodology) of social health maintenance 
     organizations' ESRD capitation demonstrations. The revised 
     rates would include adjustments for factors such as renal 
     treatment modality, age, and underlying cause of the disease. 
     These revised rates would be effective beginning in January 
     2002, and the Secretary of HHS would be required to publish 
     the adjustments in final form by July 1, 2001.
     Section 606. Permitting premium reductions as additional 
         benefits under Medicare+Choice plans
       This provision would permit M+C plans to offer reduced 
     Medicare Part B premiums to their enrollees as part of 
     providing any required additional benefits or reduced cost-
     sharing. An M+C organization could elect a reduction in its 
     M+C payment up to 125% of the annual Part B premium. However, 
     only 80% of this amount could be used to reduce an enrollee's 
     actual Part B premium. This would have the effect of 
     returning up to 100% of the beneficiary's Part B premium. The 
     reduction would apply uniformly to each enrollee of the M+C 
     plan. Plans would include information about Part B premium 
     reductions as part of the required information that is 
     provided to enrollees for comparing plan options. This 
     provision would be effective beginning in 2003.
     Section 607. Full implementation of risk adjustment for 
         congestive heart failure enrollees for 2001
       This provision would fully implement risk adjustment based 
     on inpatient hospital diagnoses for an individual who had a 
     qualifying congestive heart failure inpatient diagnosis 
     between July 1, 1999 and June 30, 2000, if that individual 
     was enrolled in a coordinated care plan offered on January 1, 
     2001. This would apply for only 1 year, beginning on January 
     1, 2001. This payment amount would be excluded from the 
     determination of the budget neutrality factor.
     Section 608. Expansion of application of Medicare+Choice new 
         entry bonus
       This provision would expand the application of the new 
     entry bonus for M+C plans to include areas for which 
     notification had been provided, as of October 3, 2000, that 
     no plans would be available January 1, 2001.
     Section 609. Report on inclusion of certain costs of the 
         Department of Veterans Affairs and Military Facility 
         Services in calculating Medicare+Choice payment rates
       The Secretary shall report to Congress by January 1, 2003, 
     on a method to phase-in the costs of military facility 
     services furnished by the Department of Veterans Affairs or 
     the Department of Defense to Medicare-eligible beneficiaries 
     in the calculation of an area's M+C capitation payment. This 
     report would include, on a county-by-county basis: the actual 
     or estimated costs of such services to Medicare-eligible 
     beneficiaries; the change in M+C capitation payment rates if 
     such costs were included in the calculation of payment rates; 
     one or more proposals for the implementation of payment 
     adjustments to M+C plans in counties where the payment rate 
     has been affected due to failure to account for the cost of 
     such services; and a system to ensure that when a M+C 
     enrollee receives covered services through a facility of 
     these Departments, there is an appropriate payment recovery 
     to the Medicare program.

[[Page 26964]]




               Subtitle B--Other Medicare+Choice Reforms

     Section 611. Payments of additional amounts for new benefits 
         covered during a contract term
       The provision would require payment adjustments to M+C 
     plans if a legislative change resulted in significant 
     increased costs, similar to the current law requirements for 
     adjusting payments due to significant increased costs 
     resulting from National Coverage Determination (NCDs). In 
     addition, this provision would require that cost projections 
     and payment adjustments be based on actuarial estimates 
     provided by the Chief Actuary of the Health Care Financing 
     Administration.
     Section 612. Restriction on implementation of significant new 
         regulatory requirements mid-year
       The provision would preclude the Secretary from 
     implementing, other than at the beginning of a calendar year, 
     regulations that impose new, significant regulatory 
     requirements on M+C organizations.
     Section 613. Timely approval of marketing material that 
         follows model marketing language
       The provision would require the Secretary to make 
     decisions, within 10 days, approving or modifying marketing 
     material used by M+C organizations, provided that the 
     organization uses model language specified by the Secretary. 
     This provision would apply to marketing material submitted on 
     or after January 1, 2001.
     Section 614. Avoiding duplicative regulation
       This provision would further stipulate when Medicare law 
     preempts State law or regulation from applying to M+C plans, 
     by specifying that the term benefit requirements includes 
     cost-sharing requirements. Second, the provision would 
     stipulate that State laws and regulations affecting marketing 
     materials, and summaries and schedules of benefits regarding 
     an M+C plan, would also be preempted by Medicare law.
     Section 615. Election of uniform local coverage policy for 
         Medicare+Choice plan covering multiple localities
       An M+C organization offering a plan in an area with more 
     than one local coverage policy would be able to elect to have 
     the local coverage policy for the part of the area that is 
     most beneficial to M+C enrollees (as identified by the 
     Secretary) apply to all M+C enrollees enrolled in the plan.
     Section 616. Eliminating health disparities in 
         Medicare+Choice Program
       This provision would expand the M+C quality assurance 
     programs for M+C plans to include a separate focus on racial 
     and ethnic minorities. The Secretary would also be required 
     to report to Congress how the quality assurance programs 
     focus on racial and ethnic minorities, within 2 years after 
     enactment and biennially thereafter.
     Section 617. Medicare+Choice Program compatibility with 
         employer or union group health plans
       In order to make the M+C program compatible with employer 
     or union group health plans, this provision would allow the 
     Secretary to waive or modify requirements that hinder the 
     design of, offering of, or enrollment in certain M+C plans. 
     Plans included in the category are M+C plans under contract 
     between M+C organizations and employers, labor organizations, 
     or trustees of a fund established by employers and/or labor 
     organizations.
     Section 618. Special Medigap enrollment anti-discrimination 
         provision for certain beneficiaries
       This provision would extend the period for Medigap 
     enrollment for certain M+C enrollees affected by termination 
     of coverage. For individuals enrolled in an M+C plan during a 
     12-month trial period, their trial period would begin again 
     if they re-enrolled in another M+C plan because of an 
     involuntary termination. During this new trial period, they 
     would retain their rights to enroll in a Medigap policy; 
     however, the total time for a trial period could not exceed 2 
     years from the time they first enrolled in an M+C plan.
     Section 619. Restoring effective date of elections and 
         changes of elections of Medicare+Choice plans
       This provision would allow individuals who enroll in an M+C 
     plan after the 10th day of the month to receive coverage 
     beginning on the first day of the next calendar month, 
     effective June 1, 2001.
     Section 620. Permitting ESRD beneficiaries to enroll in 
         another Medicare+Choice plan if the plan in which they 
         are enrolled is terminated
       This provision would permit ESRD beneficiaries to enroll in 
     another M+C plan if they lost coverage when their plan 
     terminated its contract or reduced its service area. This 
     provision would also be retroactive, to include individuals 
     whose enrollment in an M+C plan was terminated involuntarily 
     on or after December 31, 1998.
     Section 621. Providing Choice for skilled nursing facility 
         services under the Medicare+Choice Program
       Effective for M+C contracts entered into or renewed on or 
     after the date of enactment, the provision would require an 
     M+C plan to cover post-hospitalization skilled nursing care 
     through an enrollee's ``home skilled nursing facility'' if 
     the plan has a contract with the facility or if the home 
     facility agrees to accept substantially similar payment under 
     the same terms and conditions that apply to similarly 
     situated SNFs that are under contract with the plan. A ``home 
     skilled nursing facility'' is defined as (a) one in which the 
     enrollee resided at the time of the hospital admission that 
     triggered eligibility for SNF care upon discharge, or (b) is 
     the facility that is providing such services through the 
     continuing care retirement community in which the enrollee 
     resided at the time of hospital admission, or (c) is the 
     facility in which the spouse of the enrollee is residing at 
     the time of the enrollee's hospital discharge. The 
     beneficiary would be required to receive coverage for SNF 
     care at the home facility that is no less favorable than he 
     or she would receive otherwise in another SNF that has a 
     contract with the plan.
       Home skilled nursing facilities are permitted to refuse to 
     accept Medicare+Choice enrollees or to impose conditions on 
     their acceptance of such an enrollee.
       The provision would require the Medicare Payment Advisory 
     Commission (MedPAC) to analyze and, within 2 years of 
     enactment, report to Congress on the effects of this 
     provision on the scope of benefits, administrative and other 
     costs incurred by M+C organizations, and the contractual 
     relationships between those plans and SNFs.
     Section 622. Providing for accountability of Medicare+Choice 
         plans
       The provision would mandate review of ACR submissions by 
     the HCFA Chief Actuary with respect to submissions for ACRs 
     filed on or after May 1, 2001.
     Section 623. Increased civil money penalties for 
         Medicare+Choice organizations that terminate contracts 
         mid-year
       The provision would increase to $100,000 (or such higher 
     level as the Secretary of Health and Human Services) the 
     maximum civil money penalty that could be imposed for a 
     Medicare+Choice organization that terminates its 
     Medicare+Choice contract, other than at an appropriate time 
     after providing appropriate notice.


                 SUBTITLE C--OTHER MANAGED CARE REFORMS

     Section 631. 1-Year extension of social health maintenance 
         organization (SHMO) demonstration project
       The provision would extend SHMO waivers until 30 months 
     after the Secretary submits a report with a plan for 
     integration and transition of SHMOs into an option under the 
     M+C program. This 30-month extension would supersede the 18-
     month extension in BBRA 99.
     Section 632. Revised terms and conditions for extension of 
         Medicare community nursing organization (CNO) 
         demonstration project
       Effective as if enacted with BBRA99, the provision would 
     eliminate the requirement that CNO capitated payments be 
     reduced to ensure budget neutrality. Through December 2001, 
     the projects would operate under the same terms and 
     conditions applicable during 1999, but with modification to 
     the capitation rates. From October 1, 2000, through December 
     31, 2000, the capitation rates would be adjusted for 
     inflation since 1999 and for changes in service packages, but 
     reduced by 10 percent for in projects in Arizona, Minnesota, 
     and Illinois and by 15 percent in New York. In 2001, the 
     rates would be determined by actuarially adjusting the rates 
     in the prior period for inflation, utilization, and changes 
     to the service package. Adjustments would be made to case 
     management fees for certain frail enrollees, and requirements 
     would be imposed to create greater uniformity in clinical 
     features among participating sites and to improve quality and 
     enrollee satisfaction.
       By July 1, 2001, the Secretary would be required to submit 
     to the House Committees on Ways and Means and Commerce and 
     the Senate Committee on Finance a report evaluating the 
     projects for the period July 1997 through December 1999 and 
     for the extension period after September 30, 2000. A final 
     report would be required by July 1, 2002. The provision would 
     require certain methods to be used to compare spending per 
     beneficiary under the projects.
     Section 633. Extension of Medicare municipal health services 
         demonstration projects
       The provision would extend the Medicare municipal health 
     services demonstration projects for 2 additional years, 
     through December 31, 2004.
     Section 634. Service area expansion for Medicare cost 
         contracts during transition period
       This provision would allow service area expansion for 
     Medicare cost contracts, if the request was submitted to the 
     Secretary before September 1, 2003.

                          TITLE VII--MEDICAID

     Section 701. DSH payments
       (a) Modifications to DSH allotments
       For FY2001, the provision would set each state's DSH 
     allotment equal to its allotment for FY2000 increased by the 
     percentage change in the consumer price index for that year, 
     subject to a ceiling that would be equal to 12% of that 
     state's total medical assistance payments in that year.
       For FY2002, the provision would set each state's DSH 
     allotment equal to its allotment

[[Page 26965]]

     for 2001 as determined above, increased by the percentage 
     change in the consumer price index for FY2001, subject to a 
     ceiling equal to 12% of that state's total medical assistance 
     payments in that year.
       For extremely low DSH states, states whose FY1999 federal 
     and state DSH expenditures (as reported to HCFA on August 31, 
     2000) are greater than zero but less than one percent of the 
     state's total medical assistance expenditures during that 
     fiscal year, the DSH allotments for FY2001 would be equal to 
     1 percent of the state's total amount of expenditures under 
     their plan for such assistance during that fiscal year. For 
     subsequent fiscal years, the allotments for extremely low DSH 
     states would be equal to their allotment for the previous 
     year, increased by the percentage change in the consumer 
     price index for the previous year, subject to a ceiling of 
     12% of that state's total medical assistance payments in that 
     year.
       Effective on the date that the final regulation for 
     Medicaid upper payment limits is published in the Federal 
     Register.
       (b) Assuring identification of Medicaid managed care 
           patients
       Effective for Medicaid managed care contracts in effect on 
     January 1, 2000, the provision would clarify that Medicaid 
     enrollees of managed care organizations and primary care case 
     management organizations are to be included for the purposes 
     of calculating the Medicaid impatient utilization rate and 
     the low-income utilization rate. Also effective January 1, 
     2001, states must include in their MCO contracts information 
     that allows the state to determine which hospital services 
     are provided to Medicaid beneficiaries through managed care, 
     and would also require states to include a sponsorship code 
     for the managed care entity on the Medicaid beneficiary's 
     identification card.
       (c) Application of Medicaid DSH transition rule to public 
           hospitals in all states
       The provision would revise BBA97, as modified by BBRA 99, 
     so that the 175% hospital-specific DSH limit would apply to 
     qualifying public hospitals in all states. (The limit 
     currently applies only to certain public hospitals in 
     California.) The limit, allowing DSH payments of up to 175% 
     of each hospital's cost of unreimbursed care, would apply for 
     two state fiscal years beginning on the first day of the 
     state fiscal year that begins after September 30, 2002, and 
     ends on the last day of the succeeding state fiscal year. 
     Hospitals that would qualify for the higher hospital-specific 
     limit would be those owned or operated by a state and meet 
     the minimum federal requirements for disproportionate share 
     hospitals. The permanent ceiling for California would not be 
     affected.
       For states operating under waivers approved under section 
     1115 of the Social Security Act, increase payments for public 
     hospitals under this provision would be included in the 
     baseline expenditure limit for the purposes of determining 
     budget neutrality.
       (d) Assistance for certain public hospitals
       The provision would provide additional funds for certain 
     public hospitals that are: owned or operated by a state (or 
     by an instrumentality or unit of government within a state); 
     are not receiving DSH payments as of October 1, 2000; and 
     have a lot-income utilization rate in excess of 65% as of the 
     same date. Funds provided under this section to states with 
     eligible hospitals are in addition to DSH allotments. The 
     total assistance under this section for all states cannot 
     exceed the following amounts: $15 million for FY2002; $176 
     million for 2003; $269 million for 2004; $330 million for 
     2005 and for FY 2006 and each fiscal year thereunder, $375 
     million.
       (e) DSH payment accountability standards
       The provision would require the Secretary to implement 
     accountability standards to ensure that DSH payments are used 
     to reimburse States and hospitals that are eligible for such 
     payments and are otherwise in accordance with Medicaid 
     statutory requirements.
     Section 702. New prospective payment system for Federally-
         qualified health centers and rural health clinics
       The provision would create a new Medicaid prospective 
     payment system for federally qualified health centers (FQHCs) 
     and rural health centers (RHCs) beginning in January of 
     FY2001. Existing FQHCs and RHCs would be paid per visit 
     payments equal to 100% of the average costs incurred during 
     1999 and 2000 adjusted to take into account any increase or 
     decrease in the scope of services furnished. For entities 
     first qualifying as FQHCs or RHCs after 2000, the year visit 
     payments would begin in the first year that the center or 
     clinic attains qualification and would be based on 100% of 
     the costs incurred during that year based on the rates 
     established for similar centers or clinics with similar 
     caseloads in the same or adjacent geographic area. In the 
     absence of such similar centers or clinics, the methodology 
     would be based on that used for developing rates for 
     established FQHCs or RHCs or such methodology or reasonable 
     specifications as established by the Secretary. For each 
     fiscal year thereafter, per visit payments for all FQHCs and 
     RHCs would be equal to amounts for the preceding fiscal year 
     increased by the percentage increase in the Medicare Economic 
     Index applicable to primary care services for that fiscal 
     year, and adjusted for any increase or decrease in the scope 
     of Services furnished during the fiscal year. In managed care 
     contracts, States must make supplemental payments to the 
     center or clinic that would be equal to the difference 
     between contracted amounts and the cost-based amounts. Those 
     payments would be paid on a schedule mutually agreed to by 
     the State and the FQHC or RHC. Alternative payment methods 
     would be permitted only when payments are at least equal to 
     amounts otherwise provided.
       The provision would also direct the Comptroller General to 
     provide for a study on how to rebase or refine cost payment 
     methods for the services of FQHCs and RHCs. The report would 
     be due to Congress no later than 4 years after the date of 
     enactment.
     Section 703. Streamlined approval of continued state-wide 
         1115 Medicaid waivers
       The provision would define the process for submitting 
     requests for and receiving extensions of Medicaid 
     demonstration waivers authorized under Section 1115 of the 
     Social Security Act that have already received initial 3-year 
     extensions. It would require each state requesting such an 
     extension to submit an application at least 120 days prior to 
     the expiration date of the existing extension to submit an 
     application at least 120 days prior to the expiration date of 
     the existing waiver. No later than 45 days after the 
     Secretary receives such application, the Secretary would be 
     required to notify the State if she intends to review the 
     existing terms and conditions of the project and would inform 
     the State of proposed changes in the terms and conditions of 
     the waiver. If the Secretary fails to provide such 
     notification, the request would be deemed approved. During 
     the 30-day period beginning after the Secretary provides the 
     proposed terms and conditions to the state, those terms and 
     conditions would be negotiated. No later than 120 days after 
     the date that the request for extension was submitted (or 
     such later date as agreed to by the chief executive officer 
     of the State) the Secretary would be required to approve the 
     application subject to the agreed upon terms and conditions 
     or, in the absence of an agreement, such terms and conditions 
     that are determined by the Secretary to be reasonably 
     consistent with the overall objective of the waiver, or 
     disapprove the application. If the waiver is not approved or 
     disapproved during this period, the request would be deemed 
     approved in the terms and conditions as have been agreed to 
     (if any) by the Secretary and the State. Approvals would be 
     for periods not to exceed 3 year and would be subject to the 
     final reporting and evaluation requirements in current law.
     Section 704. Medicaid county-organized health systems
       The provision would allow the current exemption for certain 
     Health Insuring Organizations (HIOs) from certain Medicaid 
     HMO contracting requirements to apply as long as no more than 
     14% of all Medicaid beneficiaries in the state are enrolled 
     in those HIOs. This provision would be effective as if 
     included in the enactment of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985.
     Section 705. Deadline for issuance of final regulation 
         relating to Medicaid upper payment limits
       The provision would require the Secretary to issue final 
     regulations governing upper payment limits (UPLs) for 
     inpatient and outpatient services provided by certain types 
     of facilities no later than December 31, 2000. It would also 
     require that the final regulation establish a separate UPL 
     for non-state-owned or operated government facilities based 
     on a proposed rule announced in October, 2000.
       The proposed rule would specify two transition periods for 
     states with payment arrangements that are noncompliant, one 
     for states with such arrangements effective on or after 
     October 1, 1999 and the other for those states with 
     arrangements that were effective before that date. The 
     starting point of the phase-out of existing payment 
     arrangements, the percentage reduction in payments each year, 
     and the overall length of time permitted for full phase-out 
     would vary for the two transition periods.
       The provision also requires the final regulation to 
     stipulate a third set of rules governing the transition 
     period for certain states. This additional set of rules would 
     apply to states with payment arrangements approved or in 
     effect on or before October 1, 1992, or under which claims 
     for federal matching were paid on or before that date, and 
     for which such payments exceed the UPLs established under the 
     final regulation. For these states, a 6-year transition 
     period would apply, beginning with the period that begins on 
     the first state fiscal year that starts after September 30, 
     2002 and ends on September 30, 2008. For each year during the 
     transition period, applicable states must reduce excess 
     payments by 15%. Full compliance with final regulations is 
     required by October 1, 2008.
     Section 706. Alaska FMAP
       The provision would change the formula for calculating the 
     state percentage and thus the federal matching percentage for 
     Alaska for fiscal years 2001 through 2005. The state 
     percentage for Alaska would be calculated

[[Page 26966]]

     by using an adjusted per capita income calculation instead of 
     the state-wide average per capita income calculation 
     generally used. The adjusted per capita income for Alaska 
     would be calculated as the three year average per capita 
     income for the state divided by 1.05.
     Section 707. 1-Year extension of welfare-to-work transition
       This provision extends by 1 year the sunset on transitional 
     medical assistance for families no longer eligible for 
     welfare from September 30, 2001 to September 30, 2002.
     Section 708. Additional entities qualified to determine 
         Medicaid presumptive eligibility for low-income children
       Under Medicaid presumptive eligibility rules, States are 
     allowed to temporarily enroll children whose family income 
     appears to be below Medicaid income standards, until a final 
     formal determination of eligibility is made.
       The provision adds several entities to the list of those 
     qualified to make Medicaid presumptive eligibility 
     determinations for children. These new entities include 
     agencies that determine eligibility for Medicaid or the State 
     Children's Health Insurance program; or certain elementary 
     and secondary schools, including those operated or supported 
     by the Bureau of Indian Affairs.
     Section 709. Development of uniform QMB/SLMB application form
       This provision requires the secretary of Health and Human 
     Services to develop a simplified national application form 
     for States, at their option, to use for individuals who apply 
     for medical assistance for medicare cost-sharing under the 
     medicaid program.
     Section 710. Technical corrections
       This provision makes technical medicaid amendments that 
     exempt from certain upper income limitations individuals made 
     eligible for medical assistance, at a State's option, under 
     the Foster Care Independence Act of 1999 and under the Breast 
     and Cervical Cancer Prevention and Treatment Act of 2000.

         TITLE VIII--STATE CHILDREN'S HEALTH INSURANCE PROGRAM

     Section 801. Special rule for redistribution and availability 
         of unused fiscal year 1998 and 1999 SCHIP allotments
       The provision would establish a new method for distributing 
     unspent FY1998 and FY1999 allotments. States that use all 
     their SCHIP allotments (for each of those years) would 
     receive an amount equal to estimated spending in excess of 
     their original exhausted allotment. Each territory that 
     spends its original allotment would receive an amount that 
     bears the same ratio to 1.05% of the total amount available 
     for redistribution as the ratio of its original allotment to 
     the total allotment for all territories.
       States that do not use all their SCHIP allotment would 
     receive an amount equal to the total amount of unspent funds, 
     less amounts distributed to states that fully exhausted their 
     original allotments, multiplied by the ratio of a state's 
     unspent original allotment to the total amount of unspent 
     funds. States may use up to 10% of the retained FY1998 funds 
     for outreach activities.
       To calculate the amounts available for redistribution in 
     each formula described above, the Secretary would use amounts 
     reported by states not later than December 15, 2000 for the 
     FY1998 redistribution and November 30, 2001 for the FY1999 
     redistribution as reported on HCFA Form 64 or HCFA Form 21, 
     as approved by the Secretary. Redistributed funds would be 
     available through the end of FY2002.
     Section 802. Authority to pay Medicaid expansion SCHIP costs 
         from title XXI appropriation
       This provision provides a technical accounting 
     clarification requested by the Health Care Financing 
     Administration. It would authorize the payment of the costs 
     of SCHIP Medicaid expansions and costs of benefits provided 
     during periods of presumptive eligibility from the SCHIP 
     appropriation rather than from the Medicaid appropriation, 
     with a subsequent offset. In addition, the provision would 
     codify proposed rules regarding the order of payments for 
     benefits and administrative costs from state-specific SCHIP 
     allotments.
     Section 803. Application of Medicaid child presumptive 
         eligibility provisions
       Under Medicaid presumptive eligibility rules, states are 
     allowed to temporarily enroll children whose family income 
     appears to be below Medicaid income standards, until a final 
     formal determination of eligibility is made. There is no 
     express provision for presumptive eligibility under separate 
     (non-Medicaid) SCHIP programs. However, the Secretary of HHS 
     permits states to develop, for separate (non-Medicaid) SCHIP 
     programs, procedures that are similar to those permitted 
     under Medicaid.
       The provision clarifies states' authority to conduct 
     presumptive eligibility determinations, as defined in 
     Medicaid law, under separate (non-Medicaid) SCHIP programs.

                       TITLE IX--OTHER PROVISIONS


                        SUBTITLE A--PACE PROGRAM

     Section 901. Extension of transition for current waivers
       The provision would permit the Secretary to continue to 
     operate the Program of All-Inclusive Care for the Elderly 
     (PACE) under waivers for a period of 36 months (rather than 
     24 months), and States may do so for 4 years (rather than 3 
     years). OBRA 86 required the Secretary to grant waivers of 
     certain Medicare and Medicaid requirements to not more than 
     10 public or non-profit private community-based organizations 
     to provide health and long-term care services on a capitated 
     basis to frail elderly persons at risk of 
     institutionalization. BBA 97 established PACE as a permanent 
     provider under Medicare and as a special benefit under 
     Medicaid.
     Section 902. Continuing of certain operating arrangements 
         permitted
       If prior to becoming a permanent component of Medicare, a 
     PACE demonstration project had contractual or other operating 
     arrangements that are not recognized under permanent program 
     regulations, the provision would require the Secretary, in 
     consultation with the state agency, to permit it to continue 
     under such arrangements as long as it is consistent with the 
     objectives of the PACE program.
     Section 903. Flexibility in exercising waiver authority
       The provision would enable the Secretary to exercise 
     authority to modify or waive Medicare or Medicaid 
     requirements to respond to the needs of PACE programs related 
     to employment and the use of community care physicians. The 
     Secretary must approve requests for such waivers within 90 
     days of the date the request for waiver is received.


   subtitle b--outreach to eligible low-income medicare beneficiaries

     Section 911. Outreach on availability of Medicare cost-
         sharing assistance to eligible low-income Medicare 
         beneficiaries
       The provision would require the Commissioner of the Social 
     Security Administration to conduct outreach efforts to 
     identify individuals who may be eligible for Medicaid payment 
     of Medicare cost sharing and to notify these persons of the 
     availability of such assistance. The Commissioner would also 
     be required to furnish, at least annually, a list of such 
     individuals who reside in each state to that state's agency 
     responsible for administering the Medicaid program as well as 
     to any other appropriate state agency. The list should 
     include the name and address, and whether such individuals 
     have experienced reductions in Social Security benefits. The 
     provision would also require the General Accounting Office to 
     conduct a study of the impact of the outreach activities of 
     the Commissioner to submit to Congress no later than 18 
     months after such outreach begins. The provision would be 
     effective one year after date of enactment.


           subtitle C--maternal and child health block grant

     Section 921. Increase in authorization of appropriations for 
         the maternal and child health services block grant
       The provision would increase the authorization of 
     appropriations for the Maternal and Child Health Services 
     Block Grant under Title V from $705,000,000 to $850,000,000 
     for fiscal year 2001 and each fiscal year thereafter.


                          subtitle d--diabetes

     Section 931. Increase in appropriations for special diabetes 
         programs for type I diabetes and Indians
       The provision would extend for 1 year, to FY2003, the 
     authority for grants to be made for both the Special Diabetes 
     Program for Type I Diabetes and for the Special Diabetes 
     Programs for Indians under the Public Health Service Act. The 
     provision would also expand funding available for these 
     programs. For each grant program, the provision would 
     increase total funding to $100 million each for FY2001, 
     FY2002 and FY2003. For FY2001 and FY2002, $30 million of the 
     $100 million for each program would be transferred from SCHIP 
     as set forth in the Balanced Budget Act of 1997; the 
     remaining $70 million would be drawn from the Treasury out of 
     funds not otherwise appropriated. In FY2003, the entire $100 
     million would be drawn from the Treasury out of funds not 
     otherwise appropriated. In addition, the provision would 
     extend the due date on final evaluation reports for these two 
     grant programs from January 1, 2002 to January 1, 2003.
     Section 932. Appropriations for Ricky Ray Hemophilia Relief 
         Fund
       This provision provides for a direct appropriation of $475 
     million for FY2001. Funds would be available until expended.


          subtitle E--information on nursing facility staffing

     Section 941. Posting of information on nursing facility 
         staffing
       The provision would require medicare skilled nursing 
     facilities and medicaid nursing facilities to post nurse 
     staffing information daily for each shift in the facility, 
     effective January 1, 2003.

[[Page 26967]]




    subtitle F--adjustment of multiemployer plan benefits guaranteed

     Section 951. Adjustment of multiemployer plan benefits 
         guaranteed
       The provision adjusts the level of multiemployer pension 
     plan benefits guaranteed under title IV of ERISA.

                COMMUNITY RENEWAL TAX RELIEF ACT OF 2000

       The conference agreement would enact the provisions of H.R. 
     5662, as introduced on December 14, 2000. The text of that 
     bill follows:
     A BILL To amend the Internal Revenue Code of 1986 to provide 
     for community revitalization and a 2-year extension of 
     medical saving accounts, and for other purposes.
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This Act may be cited as the ``Community 
     Renewal Tax Relief Act of 2000''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--

               TITLE I--COMMUNITY RENEWAL AND NEW MARKETS

           Subtitle A--Tax Incentives for Renewal Communities

Sec. 101. Designation of and tax incentives for renewal communities.
Sec. 102. Work opportunity credit for hiring youth residing in renewal 
              communities.

   Subtitle B--Extension and Expansion of Empowerment Zone Incentives

Sec. 111. Authority to designate 9 additional empowerment zones.
Sec. 112. Extension of empowerment zone treatment through 2009.
Sec. 113. 20 percent employment credit for all empowerment zones.
Sec. 114. Increased expensing under section 179.
Sec. 115. Higher limits on tax-exempt empowerment zone facility bonds.
Sec. 116. Nonrecognition of gain on rollover of empowerment zone 
              investments.
Sec. 117. Increased exclusion of gain on sale of empowerment zone 
              stock.

                   Subtitle C--New Markets Tax Credit

Sec. 121. New markets tax credit.

         Subtitle D--Improvements in Low-Income Housing Credit

Sec. 131. Modification of State ceiling on low-income housing credit.
Sec. 132. Modification of criteria for allocating housing credits among 
              projects.
Sec. 133. Additional responsibilities of housing credit agencies.
Sec. 134. Modifications to rules relating to basis of building which is 
              eligible for credit.
Sec. 135. Other modifications.
Sec. 136. Carryforward rules.
Sec. 137. Effective date.

     Subtitle E--Other Community Renewal and New Markets Assistance

 Part I--Provisions relating to housing and substance abuse prevention 
                             and treatment

Sec. 141. Transfer of unoccupied and substandard HUD-held housing to 
              local governments and community development corporations.
Sec. 142. Transfer of HUD assets in revitalization areas.
Sec. 143. Risk-sharing demonstration.
Sec. 144. Prevention and treatment of substance abuse; services 
              provided through religious organizations.

             Part II--Advisory Council on Community Renewal

Sec. 151. Short title.
Sec. 152. Establishment.
Sec. 153. Duties of Advisory Council.
Sec. 154. Membership.
Sec. 155. Powers of Advisory Council.
Sec. 156. Reports.
Sec. 157. Termination.
Sec. 158. Applicability of Federal Advisory Committee Act.
Sec. 159. Resources.
Sec. 160. Effective date.

                      Subtitle F--Other Provisions

Sec. 161. Acceleration of phase-in of increase in volume cap on private 
              activity bonds.
Sec. 162. Modifications to expensing of environmental remediation 
              costs.
Sec. 163. Extension of DC homebuyer tax credit.
Sec. 164. Extension of DC Zone through 2003.
Sec. 165. Extension of enhanced deduction for corporate donations of 
              computer technology.
Sec. 166. Treatment of Indian tribal governments under Federal 
              Unemployment Tax Act.

 TITLE II--2-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS

Sec. 201. 2-year extension of availability of medical savings accounts.
Sec. 202. Medical savings accounts renamed as Archer MSAs.

           TITLE III--ADMINISTRATIVE AND TECHNICAL PROVISIONS

                 Subtitle A--Administrative Provisions

Sec. 301. Exemption of certain reporting requirements.
Sec. 302. Extension of deadlines for IRS compliance with certain notice 
              requirements.
Sec. 303. Extension of authority for undercover operations.
Sec. 304. Confidentiality of certain documents relating to closing and 
              similar agreements and to agreements with foreign 
              governments.
Sec. 305. Increase in threshold for Joint Committee reports on refunds 
              and credits.
Sec. 306. Treatment of missing children with respect to certain tax 
              benefits.
Sec. 307. Amendments to statutes referencing yield on 52-week Treasury 
              bills.
Sec. 308. Adjustments for Consumer Price Index error.
Sec. 309. Prevention of duplication of loss through assumption of 
              liabilities giving rise to a deduction.
Sec. 310. Disclosure of certain information to Congressional Budget 
              Office.

                   Subtitle B--Technical Corrections

Sec. 311. Amendments related to Ticket to Work and Work Incentives 
              Improvement Act of 1999.
Sec. 312. Amendments related to Tax and Trade Relief Extension Act of 
              1998.
Sec. 313. Amendments related to Internal Revenue Service Restructuring 
              and Reform Act of 1998.
Sec. 314. Amendments related to Taxpayer Relief Act of 1997.
Sec. 315. Amendments related to Balanced Budget Act of 1997.
Sec. 316. Amendments related to Small Business Job Protection Act of 
              1996.
Sec. 317. Amendment related to Revenue Reconciliation Act of 1990.
Sec. 318. Other technical corrections.
Sec. 319. Clerical changes.

        TITLE IV--TAX TREATMENT OF SECURITIES FUTURES CONTRACTS

Sec. 401. Tax treatment of securities futures contracts.

               TITLE I--COMMUNITY RENEWAL AND NEW MARKETS

           Subtitle A--Tax Incentives for Renewal Communities

     SEC. 101. DESIGNATION OF AND TAX INCENTIVES FOR RENEWAL 
                   COMMUNITIES.

       (a) In General.--Chapter 1 is amended by adding at the end 
     the following new subchapter:

                  ``Subchapter X--Renewal Communities

``Part   I. Designation.
``Part  II. Renewal community capital gain; renewal community business.
``Part  III. Additional incentives.

                         ``PART I--DESIGNATION

``Sec. 1400E. Designation of renewal communities.

     ``SEC. 1400E. DESIGNATION OF RENEWAL COMMUNITIES.

       ``(a) Designation.--
       ``(1) Definitions.--For purposes of this title, the term 
     `renewal community' means any area--
       ``(A) which is nominated by 1 or more local governments and 
     the State or States in which it is located for designation as 
     a renewal community (hereafter in this section referred to as 
     a `nominated area'), and
       ``(B) which the Secretary of Housing and Urban Development 
     designates as a renewal community, after consultation with--
       ``(i) the Secretaries of Agriculture, Commerce, Labor, and 
     the Treasury; the Director of the Office of Management and 
     Budget, and the Administrator of the Small Business 
     Administration, and
       ``(ii) in the case of an area on an Indian reservation, the 
     Secretary of the Interior.
       ``(2) Number of designations.--
       ``(A) In general.--Not more than 40 nominated areas may be 
     designated as renewal communities.
       ``(B) Minimum designation in rural areas.--Of the areas 
     designated under paragraph (1), at least 12 must be areas--
       ``(i) which are within a local government jurisdiction or 
     jurisdictions with a population of less than 50,000,
       ``(ii) which are outside of a metropolitan statistical area 
     (within the meaning of section 143(k)(2)(B)), or
       ``(iii) which are determined by the Secretary of Housing 
     and Urban Development, after consultation with the Secretary 
     of Commerce, to be rural areas.
       ``(3) Areas designated based on degree of poverty, etc.--
       ``(A) In general.--Except as otherwise provided in this 
     section, the nominated areas designated as renewal 
     communities under this subsection shall be those nominated 
     areas with the highest average ranking with respect to the 
     criteria described in subparagraphs (B), (C), and (D) of 
     subsection (c)(3). For purposes of the preceding sentence, an 
     area shall be ranked within each such criterion on the basis 
     of the amount by which the area exceeds such criterion, with 
     the area which exceeds such criterion by the greatest amount 
     given the highest ranking.
       ``(B) Exception where inadequate course of action, etc.--An 
     area shall not be designated under subparagraph (A) if the 
     Secretary of Housing and Urban Development determines that 
     the course of action described in subsection (d)(2) with 
     respect to such area is inadequate.
       ``(C) Preference for enterprise communities and empowerment 
     zones.--With respect

[[Page 26968]]

     to the first 20 designations made under this section, a 
     preference shall be provided to those nominated areas which 
     are enterprise communities or empowerment zones (and are 
     otherwise eligible for designation under this section).
       ``(4) Limitation on designations.--
       ``(A) Publication of regulations.--The Secretary of Housing 
     and Urban Development shall prescribe by regulation no later 
     than 4 months after the date of the enactment of this 
     section, after consultation with the officials described in 
     paragraph (1)(B)--
       ``(i) the procedures for nominating an area under paragraph 
     (1)(A),
       ``(ii) the parameters relating to the size and population 
     characteristics of a renewal community, and
       ``(iii) the manner in which nominated areas will be 
     evaluated based on the criteria specified in subsection (d).
       ``(B) Time limitations.--The Secretary of Housing and Urban 
     Development may designate nominated areas as renewal 
     communities only during the period beginning on the first day 
     of the first month following the month in which the 
     regulations described in subparagraph (A) are prescribed and 
     ending on December 31, 2001.
       ``(C) Procedural rules.--The Secretary of Housing and Urban 
     Development shall not make any designation of a nominated 
     area as a renewal community under paragraph (2) unless--
       ``(i) the local governments and the States in which the 
     nominated area is located have the authority--

       ``(I) to nominate such area for designation as a renewal 
     community,
       ``(II) to make the State and local commitments described in 
     subsection (d), and

       ``(III) to provide assurances satisfactory to the Secretary 
     of Housing and Urban Development that such commitments will 
     be fulfilled,

       ``(ii) a nomination regarding such area is submitted in 
     such a manner and in such form, and contains such 
     information, as the Secretary of Housing and Urban 
     Development shall by regulation prescribe, and
       ``(iii) the Secretary of Housing and Urban Development 
     determines that any information furnished is reasonably 
     accurate.
       ``(5) Nomination process for indian reservations.--For 
     purposes of this subchapter, in the case of a nominated area 
     on an Indian reservation, the reservation governing body (as 
     determined by the Secretary of the Interior) shall be treated 
     as being both the State and local governments with respect to 
     such area.
       ``(b) Period for Which Designation Is in Effect.--
       ``(1) In general.--Any designation of an area as a renewal 
     community shall remain in effect during the period beginning 
     on January 1, 2002, and ending on the earliest of--
       ``(A) December 31, 2009,
       ``(B) the termination date designated by the State and 
     local governments in their nomination, or
       ``(C) the date the Secretary of Housing and Urban 
     Development revokes such designation.
       ``(2) Revocation of designation.--The Secretary of Housing 
     and Urban Development may revoke the designation under this 
     section of an area if such Secretary determines that the 
     local government or the State in which the area is located--
       ``(A) has modified the boundaries of the area, or
       ``(B) is not complying substantially with, or fails to make 
     progress in achieving, the State or local commitments, 
     respectively, described in subsection (d).
       ``(3) Earlier termination of certain benefits if earlier 
     termination of designation.--If the designation of an area as 
     a renewal community terminates before December 31, 2009, the 
     day after the date of such termination shall be substituted 
     for `January 1, 2010' each place it appears in sections 1400F 
     and 1400J with respect to such area.
       ``(c) Area and Eligibility Requirements.--
       ``(1) In general.--The Secretary of Housing and Urban 
     Development may designate a nominated area as a renewal 
     community under subsection (a) only if the area meets the 
     requirements of paragraphs (2) and (3) of this subsection.
       ``(2) Area requirements.--A nominated area meets the 
     requirements of this paragraph if--
       ``(A) the area is within the jurisdiction of one or more 
     local governments,
       ``(B) the boundary of the area is continuous, and
       ``(C) the area--
       ``(i) has a population of not more than 200,000 and at 
     least--

       ``(I) 4,000 if any portion of such area (other than a rural 
     area described in subsection (a)(2)(B)(i)) is located within 
     a metropolitan statistical area (within the meaning of 
     section 143(k)(2)(B)) which has a population of 50,000 or 
     greater, or
       ``(II) 1,000 in any other case, or

       ``(ii) is entirely within an Indian reservation (as 
     determined by the Secretary of the Interior).
       ``(3) Eligibility requirements.--A nominated area meets the 
     requirements of this paragraph if the State and the local 
     governments in which it is located certify in writing (and 
     the Secretary of Housing and Urban Development, after such 
     review of supporting data as he deems appropriate, accepts 
     such certification) that--
       ``(A) the area is one of pervasive poverty, unemployment, 
     and general distress,
       ``(B) the unemployment rate in the area, as determined by 
     the most recent available data, was at least 1\1/2\ times the 
     national unemployment rate for the period to which such data 
     relate,
       ``(C) the poverty rate for each population census tract 
     within the nominated area is at least 20 percent, and
       ``(D) in the case of an urban area, at least 70 percent of 
     the households living in the area have incomes below 80 
     percent of the median income of households within the 
     jurisdiction of the local government (determined in the same 
     manner as under section 119(b)(2) of the Housing and 
     Community Development Act of 1974).
       ``(4) Consideration of other factors.--The Secretary of 
     Housing and Urban Development, in selecting any nominated 
     area for designation as a renewal community under this 
     section--
       ``(A) shall take into account--
       ``(i) the extent to which such area has a high incidence of 
     crime, or
       ``(ii) if such area has census tracts identified in the May 
     12, 1998, report of the General Accounting Office regarding 
     the identification of economically distressed areas, and
       ``(B) with respect to 1 of the areas to be designated under 
     subsection (a)(2)(B), may, in lieu of any criteria described 
     in paragraph (3), take into account the existence of 
     outmigration from the area.
       ``(d) Required State and Local Commitments.--
       ``(1) In general.--The Secretary of Housing and Urban 
     Development may designate any nominated area as a renewal 
     community under subsection (a) only if--
       ``(A) the local government and the State in which the area 
     is located agree in writing that, during any period during 
     which the area is a renewal community, such governments will 
     follow a specified course of action which meets the 
     requirements of paragraph (2) and is designed to reduce the 
     various burdens borne by employers or employees in such area, 
     and
       ``(B) the economic growth promotion requirements of 
     paragraph (3) are met.
       ``(2) Course of action.--
       ``(A) In general.--A course of action meets the 
     requirements of this paragraph if such course of action is a 
     written document, signed by a State (or local government) and 
     neighborhood organizations, which evidences a partnership 
     between such State or government and community-based 
     organizations and which commits each signatory to specific 
     and measurable goals, actions, and timetables. Such course of 
     action shall include at least 4 of the following:
       ``(i) A reduction of tax rates or fees applying within the 
     renewal community.
       ``(ii) An increase in the level of efficiency of local 
     services within the renewal community.
       ``(iii) Crime reduction strategies, such as crime 
     prevention (including the provision of crime prevention 
     services by nongovernmental entities).
       ``(iv) Actions to reduce, remove, simplify, or streamline 
     governmental requirements applying within the renewal 
     community.
       ``(v) Involvement in the program by private entities, 
     organizations, neighborhood organizations, and community 
     groups, particularly those in the renewal community, 
     including a commitment from such private entities to provide 
     jobs and job training for, and technical, financial, or other 
     assistance to, employers, employees, and residents from the 
     renewal community.
       ``(vi) The gift (or sale at below fair market value) of 
     surplus real property (such as land, homes, and commercial or 
     industrial structures) in the renewal community to 
     neighborhood organizations, community development 
     corporations, or private companies.
       ``(B) Recognition of past efforts.--For purposes of this 
     section, in evaluating the course of action agreed to by any 
     State or local government, the Secretary of Housing and Urban 
     Development shall take into account the past efforts of such 
     State or local government in reducing the various burdens 
     borne by employers and employees in the area involved.
       ``(3) Economic growth promotion requirements.--The economic 
     growth promotion requirements of this paragraph are met with 
     respect to a nominated area if the local government and the 
     State in which such area is located certify in writing that 
     such government and State (respectively) have repealed or 
     reduced, will not enforce, or will reduce within the 
     nominated area at least 4 of the following:
       ``(A) Licensing requirements for occupations that do not 
     ordinarily require a professional degree.
       ``(B) Zoning restrictions on home-based businesses which do 
     not create a public nuisance.
       ``(C) Permit requirements for street vendors who do not 
     create a public nuisance.
       ``(D) Zoning or other restrictions that impede the 
     formation of schools or child care centers.
       ``(E) Franchises or other restrictions on competition for 
     businesses providing public services, including taxicabs, 
     jitneys, cable television, or trash hauling.
     This paragraph shall not apply to the extent that such 
     regulation of businesses and occupations is necessary for and 
     well-tailored to the protection of health and safety.
       ``(e) Coordination With Treatment of Empowerment Zones and 
     Enterprise Communities.--For purposes of this title, the 
     designation under section 1391 of any area as an empowerment 
     zone or enterprise community shall cease to be in effect as 
     of the date that the designation of any portion of such area 
     as a renewal community takes effect.
       ``(f) Definitions and Special Rules.--For purposes of this 
     subchapter--
       ``(1) Governments.--If more than one government seeks to 
     nominate an area as a renewal community, any reference to, or 
     requirement of, this section shall apply to all such 
     governments.

[[Page 26969]]

       ``(2) Local government.--The term `local government' 
     means--
       ``(A) any county, city, town, township, parish, village, or 
     other general purpose political subdivision of a State, and
       ``(B) any combination of political subdivisions described 
     in subparagraph (A) recognized by the Secretary of Housing 
     and Urban Development.
       ``(3) Application of rules relating to census tracts.--The 
     rules of section 1392(b)(4) shall apply.
       ``(4) Census data.--Population and poverty rate shall be 
     determined by using 1990 census data.

 ``PART II--RENEWAL COMMUNITY CAPITAL GAIN; RENEWAL COMMUNITY BUSINESS

``Sec. 1400F. Renewal community capital gain.
``Sec. 1400G. Renewal community business defined.

     ``SEC. 1400F. RENEWAL COMMUNITY CAPITAL GAIN.

       ``(a) General Rule.--Gross income does not include any 
     qualified capital gain from the sale or exchange of a 
     qualified community asset held for more than 5 years.
       ``(b) Qualified Community Asset.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified community asset' 
     means--
       ``(A) any qualified community stock,
       ``(B) any qualified community partnership interest, and
       ``(C) any qualified community business property.
       ``(2) Qualified community stock.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `qualified community stock' means any stock in a 
     domestic corporation if--
       ``(i) such stock is acquired by the taxpayer after December 
     31, 2001, and before January 1, 2010, at its original issue 
     (directly or through an underwriter) from the corporation 
     solely in exchange for cash,
       ``(ii) as of the time such stock was issued, such 
     corporation was a renewal community business (or, in the case 
     of a new corporation, such corporation was being organized 
     for purposes of being a renewal community business), and
       ``(iii) during substantially all of the taxpayer's holding 
     period for such stock, such corporation qualified as a 
     renewal community business.
       ``(B) Redemptions.--A rule similar to the rule of section 
     1202(c)(3) shall apply for purposes of this paragraph.
       ``(3) Qualified community partnership interest.--The term 
     `qualified community partnership interest' means any capital 
     or profits interest in a domestic partnership if--
       ``(A) such interest is acquired by the taxpayer after 
     December 31, 2001, and before January 1, 2010, from the 
     partnership solely in exchange for cash,
       ``(B) as of the time such interest was acquired, such 
     partnership was a renewal community business (or, in the case 
     of a new partnership, such partnership was being organized 
     for purposes of being a renewal community business), and
       ``(C) during substantially all of the taxpayer's holding 
     period for such interest, such partnership qualified as a 
     renewal community business.
     A rule similar to the rule of paragraph (2)(B) shall apply 
     for purposes of this paragraph.
       ``(4) Qualified community business property.--
       ``(A) In general.--The term `qualified community business 
     property' means tangible property if--
       ``(i) such property was acquired by the taxpayer by 
     purchase (as defined in section 179(d)(2)) after December 31, 
     2001, and before January 1, 2010,
       ``(ii) the original use of such property in the renewal 
     community commences with the taxpayer, and
       ``(iii) during substantially all of the taxpayer's holding 
     period for such property, substantially all of the use of 
     such property was in a renewal community business of the 
     taxpayer.
       ``(B) Special rule for substantial improvements.--The 
     requirements of clauses (i) and (ii) of subparagraph (A) 
     shall be treated as satisfied with respect to--
       ``(i) property which is substantially improved by the 
     taxpayer before January 1, 2010, and
       ``(ii) any land on which such property is located.
     The determination of whether a property is substantially 
     improved shall be made under clause (ii) of section 
     1400B(b)(4)(B), except that `December 31, 2001' shall be 
     substituted for `December 31, 1997' in such clause.
       ``(c) Qualified Capital Gain.--For purposes of this 
     section--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the term `qualified capital gain' means any gain 
     recognized on the sale or exchange of--
       ``(A) a capital asset, or
       ``(B) property used in the trade or business (as defined in 
     section 1231(b)).
       ``(2) Gain before 2002 or after 2014 not qualified.--The 
     term `qualified capital gain' shall not include any gain 
     attributable to periods before January 1, 2002, or after 
     December 31, 2014.
       ``(3) Certain rules to apply.--Rules similar to the rules 
     of paragraphs (3), (4), and (5) of section 1400B(e) shall 
     apply for purposes of this subsection.
       ``(d) Certain Rules To Apply.--For purposes of this 
     section, rules similar to the rules of paragraphs (5), (6), 
     and (7) of subsection (b), and subsections (f) and (g), of 
     section 1400B shall apply; except that for such purposes 
     section 1400B(g)(2) shall be applied by substituting `January 
     1, 2002' for `January 1, 1998' and `December 31, 2014' for 
     `December 31, 2008'.
       ``(e) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to carry out the purposes 
     of this section, including regulations to prevent the abuse 
     of the purposes of this section.

     ``SEC. 1400G. RENEWAL COMMUNITY BUSINESS DEFINED.

       ``For purposes of this subchapter, the term `renewal 
     community business' means any entity or proprietorship which 
     would be a qualified business entity or qualified 
     proprietorship under section 1397C if references to renewal 
     communities were substituted for references to empowerment 
     zones in such section.

                   ``PART III--ADDITIONAL INCENTIVES

``Sec. 1400H. Renewal community employment credit.
``Sec. 1400I. Commercial revitalization deduction.
``Sec. 1400J. Increase in expensing under section 179.

     ``SEC. 1400H. RENEWAL COMMUNITY EMPLOYMENT CREDIT.

       ``(a) In General.--Subject to the modification in 
     subsection (b), a renewal community shall be treated as an 
     empowerment zone for purposes of section 1396 with respect to 
     wages paid or incurred after December 31, 2001.
       ``(b) Modification.--In applying section 1396 with respect 
     to renewal communities--
       ``(1) the applicable percentage shall be 15 percent, and
       ``(2) subsection (c) thereof shall be applied by 
     substituting `$10,000' for `$15,000' each place it appears.

     ``SEC. 1400I. COMMERCIAL REVITALIZATION DEDUCTION.

       ``(a) General Rule.--At the election of the taxpayer, 
     either--
       ``(1) one-half of any qualified revitalization expenditures 
     chargeable to capital account with respect to any qualified 
     revitalization building shall be allowable as a deduction for 
     the taxable year in which the building is placed in service, 
     or
       ``(2) a deduction for all such expenditures shall be 
     allowable ratably over the 120-month period beginning with 
     the month in which the building is placed in service.
       ``(b) Qualified Revitalization Buildings and 
     Expenditures.--For purposes of this section--
       ``(1) Qualified revitalization building.--The term 
     `qualified revitalization building' means any building (and 
     its structural components) if--
       ``(A) the building is placed in service by the taxpayer in 
     a renewal community and the original use of the building 
     begins with the taxpayer, or
       ``(B) in the case of such building not described in 
     subparagraph (A), such building--
       ``(i) is substantially rehabilitated (within the meaning of 
     section 47(c)(1)(C)) by the taxpayer, and
       ``(ii) is placed in service by the taxpayer after the 
     rehabilitation in a renewal community.
       ``(2) Qualified revitalization expenditure.--
       ``(A) In general.--The term `qualified revitalization 
     expenditure' means any amount properly chargeable to capital 
     account for property for which depreciation is allowable 
     under section 168 (without regard to this section) and which 
     is--
       ``(i) nonresidential real property (as defined in section 
     168(e)), or
       ``(ii) section 1250 property (as defined in section 
     1250(c)) which is functionally related and subordinate to 
     property described in clause (i).
       ``(B) Certain expenditures not included.--
       ``(i) Acquisition cost.--In the case of a building 
     described in paragraph (1)(B), the cost of acquiring the 
     building or interest therein shall be treated as a qualified 
     revitalization expenditure only to the extent that such cost 
     does not exceed 30 percent of the aggregate qualified 
     revitalization expenditures (determined without regard to 
     such cost) with respect to such building.
       ``(ii) Credits.--The term `qualified revitalization 
     expenditure' does not include any expenditure which the 
     taxpayer may take into account in computing any credit 
     allowable under this title unless the taxpayer elects to take 
     the expenditure into account only for purposes of this 
     section.
       ``(c) Dollar Limitation.--The aggregate amount which may be 
     treated as qualified revitalization expenditures with respect 
     to any qualified revitalization building shall not exceed the 
     lesser of--
       ``(1) $10,000,000, or
       ``(2) the commercial revitalization expenditure amount 
     allocated to such building under this section by the 
     commercial revitalization agency for the State in which the 
     building is located.
       ``(d) Commercial Revitalization Expenditure Amount.--
       ``(1) In general.--The aggregate commercial revitalization 
     expenditure amount which a commercial revitalization agency 
     may allocate for any calendar year is the amount of the State 
     commercial revitalization expenditure ceiling determined 
     under this paragraph for such calendar year for such agency.
       ``(2) State commercial revitalization expenditure 
     ceiling.--The State commercial revitalization expenditure 
     ceiling applicable to any State--
       ``(A) for each calendar year after 2001 and before 2010 is 
     $12,000,000 for each renewal community in the State, and

[[Page 26970]]

       ``(B) for each calendar year thereafter is zero.
       ``(3) Commercial revitalization agency.--For purposes of 
     this section, the term `commercial revitalization agency' 
     means any agency authorized by a State to carry out this 
     section.
       ``(4) Time and manner of allocations.--Allocations under 
     this section shall be made at the same time and in the same 
     manner as under paragraphs (1) and (7) of section 42(h).
       ``(e) Responsibilities of Commercial Revitalization 
     Agencies.--
       ``(1) Plans for allocation.--Notwithstanding any other 
     provision of this section, the commercial revitalization 
     expenditure amount with respect to any building shall be zero 
     unless--
       ``(A) such amount was allocated pursuant to a qualified 
     allocation plan of the commercial revitalization agency which 
     is approved (in accordance with rules similar to the rules of 
     section 147(f )(2) (other than subparagraph (B)(ii) thereof)) 
     by the governmental unit of which such agency is a part, and
       ``(B) such agency notifies the chief executive officer (or 
     its equivalent) of the local jurisdiction within which the 
     building is located of such allocation and provides such 
     individual a reasonable opportunity to comment on the 
     allocation.
       ``(2) Qualified allocation plan.--For purposes of this 
     subsection, the term `qualified allocation plan' means any 
     plan--
       ``(A) which sets forth selection criteria to be used to 
     determine priorities of the commercial revitalization agency 
     which are appropriate to local conditions,
       ``(B) which considers--
       ``(i) the degree to which a project contributes to the 
     implementation of a strategic plan that is devised for a 
     renewal community through a citizen participation process,
       ``(ii) the amount of any increase in permanent, full-time 
     employment by reason of any project, and
       ``(iii) the active involvement of residents and nonprofit 
     groups within the renewal community, and
       ``(C) which provides a procedure that the agency (or its 
     agent) will follow in monitoring compliance with this 
     section.
       ``(f) Special Rules.--
       ``(1) Deduction in lieu of depreciation.--The deduction 
     provided by this section for qualified revitalization 
     expenditures shall--
       ``(A) with respect to the deduction determined under 
     subsection (a)(1), be in lieu of any depreciation deduction 
     otherwise allowable on account of one-half of such 
     expenditures, and
       ``(B) with respect to the deduction determined under 
     subsection (a)(2), be in lieu of any depreciation deduction 
     otherwise allowable on account of all of such expenditures.
       ``(2) Basis adjustment, etc.--For purposes of sections 1016 
     and 1250, the deduction under this section shall be treated 
     in the same manner as a depreciation deduction. For purposes 
     of section 1250(b)(5), the straight line method of adjustment 
     shall be determined without regard to this section.
       ``(3) Substantial rehabilitations treated as separate 
     buildings.--A substantial rehabilitation (within the meaning 
     of section 47(c)(1)(C)) of a building shall be treated as a 
     separate building for purposes of subsection (a).
       ``(4) Clarification of allowance of deduction under minimum 
     tax.--Notwithstanding section 56(a)(1), the deduction under 
     this section shall be allowed in determining alternative 
     minimum taxable income under section 55.
       ``(g) Termination.--This section shall not apply to any 
     building placed in service after December 31, 2009.

     ``SEC. 1400J. INCREASE IN EXPENSING UNDER SECTION 179.

       ``(a) In General.--For purposes of section 1397A--
       ``(1) a renewal community shall be treated as an 
     empowerment zone,
       ``(2) a renewal community business shall be treated as an 
     enterprise zone business, and
       ``(3) qualified renewal property shall be treated as 
     qualified zone property.
       ``(b) Qualified Renewal Property.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified renewal property' 
     means any property to which section 168 applies (or would 
     apply but for section 179) if--
       ``(A) such property was acquired by the taxpayer by 
     purchase (as defined in section 179(d)(2)) after December 31, 
     2001, and before January 1, 2010, and
       ``(B) such property would be qualified zone property (as 
     defined in section 1397D) if references to renewal 
     communities were substituted for references to empowerment 
     zones in section 1397D.
       ``(2) Certain rules to apply.--The rules of subsections 
     (a)(2) and (b) of section 1397D shall apply for purposes of 
     this section.''.
       (b) Exception for Commercial Revitalization Deduction From 
     Passive Loss Rules.--
       (1) Paragraph (3) of section 469(i) is amended by 
     redesignating subparagraphs (C), (D), and (E) as 
     subparagraphs (D), (E), and (F), respectively, and by 
     inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) Exception for commercial revitalization deduction.--
     Subparagraph (A) shall not apply to any portion of the 
     passive activity loss for any taxable year which is 
     attributable to the commercial revitalization deduction under 
     section 1400I.''.
       (2) Subparagraph (E) of section 469(i)(3), as redesignated 
     by subparagraph (A), is amended to read as follows:
       ``(E) Ordering rules to reflect exceptions and separate 
     phase-outs.--If subparagraph (B), (C), or (D) applies for a 
     taxable year, paragraph (1) shall be applied--
       ``(i) first to the portion of the passive activity loss to 
     which subparagraph (C) does not apply,
       ``(ii) second to the portion of the passive activity credit 
     to which subparagraph (B) or (D) does not apply,
       ``(iii) third to the portion of such credit to which 
     subparagraph (B) applies,
       ``(iv) fourth to the portion of such loss to which 
     subparagraph (C) applies, and
       ``(v) then to the portion of such credit to which 
     subparagraph (D) applies.''.
       (3)(A) Subparagraph (B) of section 469(i)(6) is amended by 
     striking ``or'' at the end of clause (i), by striking the 
     period at the end of clause (ii) and inserting ``, or'', and 
     by adding at the end the following new clause:
       ``(iii) any deduction under section 1400I (relating to 
     commercial revitalization deduction).''.
       (B) The heading for such subparagraph (B) is amended by 
     striking ``or rehabilitation credit'' and inserting ``, 
     rehabilitation credit, or commercial revitalization 
     deduction''.
       (c) Audit and Report.--Not later than January 31 of 2004, 
     2007, and 2010, the Comptroller General of the United States 
     shall, pursuant to an audit of the renewal community program 
     established under section 1400E of the Internal Revenue Code 
     of 1986 (as added by subsection (a)) and the empowerment zone 
     and enterprise community program under subchapter U of 
     chapter 1 of such Code, report to Congress on such program 
     and its effect on poverty, unemployment, and economic growth 
     within the designated renewal communities, empowerment zones, 
     and enterprise communities.
       (d) Clerical Amendment.--The table of subchapters for 
     chapter 1 is amended by adding at the end the following new 
     item:

``Subchapter X. Renewal Communities.''.

     SEC. 102. WORK OPPORTUNITY CREDIT FOR HIRING YOUTH RESIDING 
                   IN RENEWAL COMMUNITIES.

       (a) High-Risk Youth.--Subparagraphs (A)(ii) and (B) of 
     section 51(d)(5) are each amended by striking ``empowerment 
     zone or enterprise community'' and inserting ``empowerment 
     zone, enterprise community, or renewal community''.
       (b) Qualified Summer Youth Employee.--Clause (iv) of 
     section 51(d)(7)(A) is amended by striking ``empowerment zone 
     or enterprise community'' and inserting ``empowerment zone, 
     enterprise community, or renewal community''.
       (c) Headings.--Paragraphs (5)(B) and (7)(C) of section 
     51(d) are each amended by inserting ``or community'' in the 
     heading after ``zone''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to individuals who begin work for the employer 
     after December 31, 2001.

   Subtitle B--Extension and Expansion of Empowerment Zone Incentives

     SEC. 111. AUTHORITY TO DESIGNATE 9 ADDITIONAL EMPOWERMENT 
                   ZONES.

       Section 1391 is amended by adding at the end the following 
     new subsection:
       ``(h) Additional Designations Permitted.--
       ``(1) In general.--In addition to the areas designated 
     under subsections (a) and (g), the appropriate Secretaries 
     may designate in the aggregate an additional 9 nominated 
     areas as empowerment zones under this section, subject to the 
     availability of eligible nominated areas. Of that number, not 
     more than seven may be designated in urban areas and not more 
     than 2 may be designated in rural areas.
       ``(2) Period designations may be made and take effect.--A 
     designation may be made under this subsection after the date 
     of the enactment of this subsection and before January 1, 
     2002. Subject to subparagraphs (B) and (C) of subsection 
     (d)(1), such designations shall remain in effect during the 
     period beginning on January 1, 2002, and ending on December 
     31, 2009.
       ``(3) Modifications to eligibility criteria, etc.--The 
     rules of subsection (g)(3) shall apply to designations under 
     this subsection.
       ``(4) Empowerment zones which become renewal communities.--
     The number of areas which may be designated as empowerment 
     zones under this subsection shall be increased by 1 for each 
     area which ceases to be an empowerment zone by reason of 
     section 1400E(e). Each additional area designated by reason 
     of the preceding sentence shall have the same urban or rural 
     character as the area it is replacing.''

     SEC. 112. EXTENSION OF EMPOWERMENT ZONE TREATMENT THROUGH 
                   2009.

       Subparagraph (A) of section 1391(d)(1) (relating to period 
     for which designation is in effect) is amended to read as 
     follows:
       ``(A)(i) in the case of an empowerment zone, December 31, 
     2009, or
       ``(ii) in the case of an enterprise community, the close of 
     the 10th calendar year beginning on or after such date of 
     designation,''.

     SEC. 113. 20 PERCENT EMPLOYMENT CREDIT FOR ALL EMPOWERMENT 
                   ZONES.

       (a) 20 Percent Credit.--Subsection (b) of section 1396 
     (relating to empowerment zone employment credit) is amended 
     to read as follows:
       ``(b) Applicable Percentage.--For purposes of this section, 
     the applicable percentage is 20 percent.''.
       (b) All Empowerment Zones Eligible for Credit.--Section 
     1396 is amended by striking subsection (e).
       (c) Conforming Amendment.--Subsection (d) of section 1400 
     is amended to read as follows:
       ``(d) Special Rule for Application of Employment Credit.--
     With respect to the DC Zone, section 1396(d)(1)(B) (relating 
     to empowerment zone employment credit) shall be applied by 
     substituting `the District of Columbia' for `such empowerment 
     zone'.''.

[[Page 26971]]

       (d) Effective Date.--The amendments made by this section 
     shall apply to wages paid or incurred after December 31, 
     2001.

     SEC. 114. INCREASED EXPENSING UNDER SECTION 179.

       (a) In General.--Subparagraph (A) of section 1397A(a)(1) is 
     amended by striking ``$20,000'' and inserting ``$35,000''.
       (b) Expensing for Property Used in Developable Sites.--
     Section 1397A is amended by striking subsection (c).
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 115. HIGHER LIMITS ON TAX-EXEMPT EMPOWERMENT ZONE 
                   FACILITY BONDS.

       (a) In General.--Paragraph (3) of section 1394(f) (relating 
     to bonds for empowerment zones designated under section 
     1391(g)) is amended to read as follows:
       ``(3) Empowerment zone facility bond.--For purposes of this 
     subsection, the term `empowerment zone facility bond' means 
     any bond which would be described in subsection (a) if--
       ``(A) in the case of obligations issued before January 1, 
     2002, only empowerment zones designated under section 1391(g) 
     were taken into account under sections 1397C and 1397D, and
       ``(B) in the case of obligations issued after December 31, 
     2001, all empowerment zones (other than the District of 
     Columbia Enterprise Zone) were taken into account under 
     sections 1397C and 1397D.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2001.

     SEC. 116. NONRECOGNITION OF GAIN ON ROLLOVER OF EMPOWERMENT 
                   ZONE INVESTMENTS.

       (a) In General.--Part III of subchapter U of chapter 1 is 
     amended--
       (1) by redesignating subpart C as subpart D,
       (2) by redesignating sections 1397B and 1397C as sections 
     1397C and 1397D, respectively, and
       (3) by inserting after subpart B the following new subpart:

  ``Subpart C--Nonrecognition of Gain on Rollover of Empowerment Zone 
                              Investments

``Sec. 1397B. Nonrecognition of gain on rollover of empowerment zone 
              investments.

     ``SEC. 1397B. NONRECOGNITION OF GAIN ON ROLLOVER OF 
                   EMPOWERMENT ZONE INVESTMENTS.

       ``(a) Nonrecognition of Gain.--In the case of any sale of a 
     qualified empowerment zone asset held by the taxpayer for 
     more than 1 year and with respect to which such taxpayer 
     elects the application of this section, gain from such sale 
     shall be recognized only to the extent that the amount 
     realized on such sale exceeds--
       ``(1) the cost of any qualified empowerment zone asset 
     (with respect to the same zone as the asset sold) purchased 
     by the taxpayer during the 60-day period beginning on the 
     date of such sale, reduced by
       ``(2) any portion of such cost previously taken into 
     account under this section.
       ``(b) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Qualified empowerment zone asset.--
       ``(A) In general.--The term `qualified empowerment zone 
     asset' means any property which would be a qualified 
     community asset (as defined in section 1400F) if in section 
     1400F--
       ``(i) references to empowerment zones were substituted for 
     references to renewal communities,
       ``(ii) references to enterprise zone businesses (as defined 
     in section 1397C) were substituted for references to renewal 
     community businesses, and
       ``(iii) the date of the enactment of this paragraph were 
     substituted for `December 31, 2001' each place it appears.
       ``(B) Treatment of dc zone.--The District of Columbia 
     Enterprise Zone shall not be treated as an empowerment zone 
     for purposes of this section.
       ``(2) Certain gain not eligible for rollover.--This section 
     shall not apply to--
       ``(A) any gain which is treated as ordinary income for 
     purposes of this subtitle, and
       ``(B) any gain which is attributable to real property, or 
     an intangible asset, which is not an integral part of an 
     enterprise zone business.
       ``(3) Purchase.--A taxpayer shall be treated as having 
     purchased any property if, but for paragraph (4), the 
     unadjusted basis of such property in the hands of the 
     taxpayer would be its cost (within the meaning of section 
     1012).
       ``(4) Basis adjustments.--If gain from any sale is not 
     recognized by reason of subsection (a), such gain shall be 
     applied to reduce (in the order acquired) the basis for 
     determining gain or loss of any qualified empowerment zone 
     asset which is purchased by the taxpayer during the 60-day 
     period described in subsection (a). This paragraph shall not 
     apply for purposes of section 1202.
       ``(5) Holding period.--For purposes of determining whether 
     the nonrecognition of gain under subsection (a) applies to 
     any qualified empowerment zone asset which is sold--
       ``(A) the taxpayer's holding period for such asset and the 
     asset referred to in subsection (a)(1) shall be determined 
     without regard to section 1223, and
       ``(B) only the first year of the taxpayer's holding period 
     for the asset referred to in subsection (a)(1) shall be taken 
     into account for purposes of paragraphs (2)(A)(iii), (3)(C), 
     and (4)(A)(iii) of section 1400F(b).''.
       (b) Conforming Amendments.--
       (1) Paragraph (23) of section 1016(a) is amended--
       (A) by striking ``or 1045'' and inserting ``1045, or 
     1397B'', and
       (B) by striking ``or 1045(b)(4)'' and inserting 
     ``1045(b)(4), or 1397B(b)(4)''.
       (2) Paragraph (15) of section 1223 is amended to read as 
     follows:
       ``(15) Except for purposes of sections 1202(a)(2), 
     1202(c)(2)(A), 1400B(b), and 1400F(b), in determining the 
     period for which the taxpayer has held property the 
     acquisition of which resulted under section 1045 or 1397B in 
     the nonrecognition of any part of the gain realized on the 
     sale of other property, there shall be included the period 
     for which such other property has been held as of the date of 
     such sale.''.
       (3) Paragraph (2) of section 1394(b) is amended--
       (A) by striking ``section 1397C'' and inserting ``section 
     1397D'', and
       (B) by striking ``section 1397C(a)(2)'' and inserting 
     ``section 1397D(a)(2)''.
       (4) Paragraph (3) of section 1394(b) is amended--
       (A) by striking ``section 1397B'' each place it appears and 
     inserting ``section 1397C'', and
       (B) by striking ``section 1397B(d)'' and inserting 
     ``section 1397C(d)''.
       (5) Sections 1400(e) and 1400B(c) are each amended by 
     striking ``section 1397B'' each place it appears and 
     inserting ``section 1397C''.
       (6) The table of subparts for part III of subchapter U of 
     chapter 1 is amended by striking the last item and inserting 
     the following new items:

``Subpart C. Nonrecognition of gain on rollover of empowerment zone 
              investments.
``Subpart D. General provisions.''.
       (7) The table of sections for subpart D of such part III is 
     amended to read as follows:

``Sec. 1397C. Enterprise zone business defined.
``Sec. 1397D. Qualified zone property defined.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to qualified empowerment zone assets acquired 
     after the date of the enactment of this Act.

     SEC. 117. INCREASED EXCLUSION OF GAIN ON SALE OF EMPOWERMENT 
                   ZONE STOCK.

       (a) In General.--Subsection (a) of section 1202 is amended 
     to read as follows:
       ``(a) Exclusion.--
       ``(1) In general.--In the case of a taxpayer other than a 
     corporation, gross income shall not include 50 percent of any 
     gain from the sale or exchange of qualified small business 
     stock held for more than 5 years.
       ``(2) Empowerment zone businesses.--
       ``(A) In general.--In the case of qualified small business 
     stock acquired after the date of the enactment of this 
     paragraph in a corporation which is a qualified business 
     entity (as defined in section 1397C(b)) during substantially 
     all of the taxpayer's holding period for such stock, 
     paragraph (1) shall be applied by substituting `60 percent' 
     for `50 percent'.
       ``(B) Certain rules to apply.--Rules similar to the rules 
     of paragraphs (5) and (7) of section 1400B(b) shall apply for 
     purposes of this paragraph.
       ``(C) Gain after 2014 not qualified.--Subparagraph (A) 
     shall not apply to gain attributable to periods after 
     December 31, 2014.
       ``(D) Treatment of dc zone.--The District of Columbia 
     Enterprise Zone shall not be treated as an empowerment zone 
     for purposes of this paragraph.''.
       (b) Conforming Amendments.--
       (1) Paragraph (8) of section 1(h) is amended by striking 
     ``means'' and all that follows and inserting ``means the 
     excess of--
       ``(A) the gain which would be excluded from gross income 
     under section 1202 but for the percentage limitation in 
     section 1202(a), over
       ``(B) the gain excluded from gross income under section 
     1202.''.
       (2) The section heading for section 1202 is amended by 
     striking ``50-percent'' and inserting ``partial''.
       (3) The table of sections for part I of subchapter P of 
     chapter 1 is amended by striking ``50-percent'' and inserting 
     ``Partial''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to stock acquired after the date of the enactment 
     of this Act.

                   Subtitle C--New Markets Tax Credit

     SEC. 121. NEW MARKETS TAX CREDIT.

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

     ``SEC. 45D. NEW MARKETS TAX CREDIT.

       ``(a) Allowance of Credit.--
       ``(1) In general.--For purposes of section 38, in the case 
     of a taxpayer who holds a qualified equity investment on a 
     credit allowance date of such investment which occurs during 
     the taxable year, the new markets tax credit determined under 
     this section for such taxable year is an amount equal to the 
     applicable percentage of the amount paid to the qualified 
     community development entity for such investment at its 
     original issue.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is--
       ``(A) 5 percent with respect to the first 3 credit 
     allowance dates, and
       ``(B) 6 percent with respect to the remainder of the credit 
     allowance dates.
       ``(3) Credit allowance date.--For purposes of paragraph 
     (1), the term `credit allowance date' means, with respect to 
     any qualified equity investment--
       ``(A) the date on which such investment is initially made, 
     and
       ``(B) each of the 6 anniversary dates of such date 
     thereafter.
       ``(b) Qualified Equity Investment.--For purposes of this 
     section--

[[Page 26972]]

       ``(1) In general.--The term `qualified equity investment' 
     means any equity investment in a qualified community 
     development entity if--
       ``(A) such investment is acquired by the taxpayer at its 
     original issue (directly or through an underwriter) solely in 
     exchange for cash,
       ``(B) substantially all of such cash is used by the 
     qualified community development entity to make qualified low-
     income community investments, and
       ``(C) such investment is designated for purposes of this 
     section by the qualified community development entity.
     Such term shall not include any equity investment issued by a 
     qualified community development entity more than 5 years 
     after the date that such entity receives an allocation under 
     subsection (f). Any allocation not used within such 5-year 
     period may be reallocated by the Secretary under subsection 
     (f).
       ``(2) Limitation.--The maximum amount of equity investments 
     issued by a qualified community development entity which may 
     be designated under paragraph (1)(C) by such entity shall not 
     exceed the portion of the limitation amount allocated under 
     subsection (f) to such entity.
       ``(3) Safe harbor for determining use of cash.--The 
     requirement of paragraph (1)(B) shall be treated as met if at 
     least 85 percent of the aggregate gross assets of the 
     qualified community development entity are invested in 
     qualified low-income community investments.
       ``(4) Treatment of subsequent purchasers.--The term 
     `qualified equity investment' includes any equity investment 
     which would (but for paragraph (1)(A)) be a qualified equity 
     investment in the hands of the taxpayer if such investment 
     was a qualified equity investment in the hands of a prior 
     holder.
       ``(5) Redemptions.--A rule similar to the rule of section 
     1202(c)(3) shall apply for purposes of this subsection.
       ``(6) Equity investment.--The term `equity investment' 
     means--
       ``(A) any stock (other than nonqualified preferred stock as 
     defined in section 351(g)(2)) in an entity which is a 
     corporation, and
       ``(B) any capital interest in an entity which is a 
     partnership.
       ``(c) Qualified Community Development Entity.--For purposes 
     of this section--
       ``(1) In general.--The term `qualified community 
     development entity' means any domestic corporation or 
     partnership if--
       ``(A) the primary mission of the entity is serving, or 
     providing investment capital for, low-income communities or 
     low-income persons,
       ``(B) the entity maintains accountability to residents of 
     low-income communities through their representation on any 
     governing board of the entity or on any advisory board to the 
     entity, and
       ``(C) the entity is certified by the Secretary for purposes 
     of this section as being a qualified community development 
     entity.
       ``(2) Special rules for certain organizations.--The 
     requirements of paragraph (1) shall be treated as met by--
       ``(A) any specialized small business investment company (as 
     defined in section 1044(c)(3)), and
       ``(B) any community development financial institution (as 
     defined in section 103 of the Community Development Banking 
     and Financial Institutions Act of 1994 (12 U.S.C. 4702)).
       ``(d) Qualified Low-Income Community Investments.--For 
     purposes of this section--
       ``(1) In general.--The term `qualified low-income community 
     investment' means--
       ``(A) any capital or equity investment in, or loan to, any 
     qualified active low-income community business,
       ``(B) the purchase from another qualified community 
     development entity of any loan made by such entity which is a 
     qualified low-income community investment,
       ``(C) financial counseling and other services specified in 
     regulations prescribed by the Secretary to businesses located 
     in, and residents of, low-income communities, and
       ``(D) any equity investment in, or loan to, any qualified 
     community development entity.
       ``(2) Qualified active low-income community business.--
       ``(A) In general.--For purposes of paragraph (1), the term 
     `qualified active low-income community business' means, with 
     respect to any taxable year, any corporation (including a 
     nonprofit corporation) or partnership if for such year--
       ``(i) at least 50 percent of the total gross income of such 
     entity is derived from the active conduct of a qualified 
     business within any low-income community,
       ``(ii) a substantial portion of the use of the tangible 
     property of such entity (whether owned or leased) is within 
     any low-income community,
       ``(iii) a substantial portion of the services performed for 
     such entity by its employees are performed in any low-income 
     community,
       ``(iv) less than 5 percent of the average of the aggregate 
     unadjusted bases of the property of such entity is 
     attributable to collectibles (as defined in section 
     408(m)(2)) other than collectibles that are held primarily 
     for sale to customers in the ordinary course of such 
     business, and
       ``(v) less than 5 percent of the average of the aggregate 
     unadjusted bases of the property of such entity is 
     attributable to nonqualified financial property (as defined 
     in section 1397C(e)).
       ``(B) Proprietorship.--Such term shall include any business 
     carried on by an individual as a proprietor if such business 
     would meet the requirements of subparagraph (A) were it 
     incorporated.
       ``(C) Portions of business may be qualified active low-
     income community business.--The term `qualified active low-
     income community business' includes any trades or businesses 
     which would qualify as a qualified active low-income 
     community business if such trades or businesses were 
     separately incorporated.
       ``(3) Qualified business.--For purposes of this subsection, 
     the term `qualified business' has the meaning given to such 
     term by section 1397C(d); except that--
       ``(A) in lieu of applying paragraph (2)(B) thereof, the 
     rental to others of real property located in any low-income 
     community shall be treated as a qualified business if there 
     are substantial improvements located on such property, and
       ``(B) paragraph (3) thereof shall not apply.
       ``(e) Low-Income Community.--For purposes of this section--
       ``(1) In general.--The term `low-income community' means 
     any population census tract if--
       ``(A) the poverty rate for such tract is at least 20 
     percent, or
       ``(B)(i) in the case of a tract not located within a 
     metropolitan area, the median family income for such tract 
     does not exceed 80 percent of statewide median family income, 
     or
       ``(ii) in the case of a tract located within a metropolitan 
     area, the median family income for such tract does not exceed 
     80 percent of the greater of statewide median family income 
     or the metropolitan area median family income.
     Subparagraph (B) shall be applied using possessionwide median 
     family income in the case of census tracts located within a 
     possession of the United States.
       ``(2) Targeted areas.--The Secretary may designate any area 
     within any census tract as a low-income community if--
       ``(A) the boundary of such area is continuous,
       ``(B) the area would satisfy the requirements of paragraph 
     (1) if it were a census tract, and
       ``(C) an inadequate access to investment capital exists in 
     such area.
       ``(3) Areas not within census tracts.--In the case of an 
     area which is not tracted for population census tracts, the 
     equivalent county divisions (as defined by the Bureau of the 
     Census for purposes of defining poverty areas) shall be used 
     for purposes of determining poverty rates and median family 
     income.
       ``(f) National Limitation on Amount of Investments 
     Designated.--
       ``(1) In general.--There is a new markets tax credit 
     limitation for each calendar year. Such limitation is--
       ``(A) $1,000,000,000 for 2001,
       ``(B) $1,500,000,000 for 2002 and 2003,
       ``(C) $2,000,000,000 for 2004 and 2005, and
       ``(D) $3,500,000,000 for 2006 and 2007.
       ``(2) Allocation of limitation.--The limitation under 
     paragraph (1) shall be allocated by the Secretary among 
     qualified community development entities selected by the 
     Secretary. In making allocations under the preceding 
     sentence, the Secretary shall give priority to any entity--
       ``(A) with a record of having successfully provided capital 
     or technical assistance to disadvantaged businesses or 
     communities, or
       ``(B) which intends to satisfy the requirement under 
     subsection (b)(1)(B) by making qualified low-income community 
     investments in 1 or more businesses in which persons 
     unrelated to such entity (within the meaning of section 
     267(b) or 707(b)(1)) hold the majority equity interest.
       ``(3) Carryover of unused limitation.--If the new markets 
     tax credit limitation for any calendar year exceeds the 
     aggregate amount allocated under paragraph (2) for such year, 
     such limitation for the succeeding calendar year shall be 
     increased by the amount of such excess. No amount may be 
     carried under the preceding sentence to any calendar year 
     after 2014.
       ``(g) Recapture of Credit In Certain Cases.--
       ``(1) In general.--If, at any time during the 7-year period 
     beginning on the date of the original issue of a qualified 
     equity investment in a qualified community development 
     entity, there is a recapture event with respect to such 
     investment, then the tax imposed by this chapter for the 
     taxable year in which such event occurs shall be increased by 
     the credit recapture amount.
       ``(2) Credit recapture amount.--For purposes of paragraph 
     (1), the credit recapture amount is an amount equal to the 
     sum of--
       ``(A) the aggregate decrease in the credits allowed to the 
     taxpayer under section 38 for all prior taxable years which 
     would have resulted if no credit had been determined under 
     this section with respect to such investment, plus
       ``(B) interest at the underpayment rate established under 
     section 6621 on the amount determined under subparagraph (A) 
     for each prior taxable year for the period beginning on the 
     due date for filing the return for the prior taxable year 
     involved.
     No deduction shall be allowed under this chapter for interest 
     described in subparagraph (B).
       ``(3) Recapture event.--For purposes of paragraph (1), 
     there is a recapture event with respect to an equity 
     investment in a qualified community development entity if--
       ``(A) such entity ceases to be a qualified community 
     development entity,
       ``(B) the proceeds of the investment cease to be used as 
     required of subsection (b)(1)(B), or
       ``(C) such investment is redeemed by such entity.
       ``(4) Special rules.--
       ``(A) Tax benefit rule.--The tax for the taxable year shall 
     be increased under paragraph (1) only with respect to credits 
     allowed by reason of this section which were used to reduce 
     tax liability. In the case of credits not so used to reduce 
     tax liability, the carryforwards and

[[Page 26973]]

     carrybacks under section 39 shall be appropriately adjusted.
       ``(B) No credits against tax.--Any increase in tax under 
     this subsection shall not be treated as a tax imposed by this 
     chapter for purposes of determining the amount of any credit 
     under this chapter or for purposes of section 55.
       ``(h) Basis Reduction.--The basis of any qualified equity 
     investment shall be reduced by the amount of any credit 
     determined under this section with respect to such 
     investment. This subsection shall not apply for purposes of 
     sections 1202, 1400B, and 1400F.
       ``(i) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to carry out this section, 
     including regulations--
       ``(1) which limit the credit for investments which are 
     directly or indirectly subsidized by other Federal tax 
     benefits (including the credit under section 42 and the 
     exclusion from gross income under section 103),
       ``(2) which prevent the abuse of the purposes of this 
     section,
       ``(3) which provide rules for determining whether the 
     requirement of subsection (b)(1)(B) is treated as met,
       ``(4) which impose appropriate reporting requirements, and
       ``(5) which apply the provisions of this section to newly 
     formed entities.''.
       (b) Credit Made Part of General Business Credit.--
       (1) In general.--Subsection (b) of section 38 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 new paragraph:
       ``(13) the new markets tax credit determined under section 
     45D(a).''.
       (2) Limitation on carryback.--Subsection (d) of section 39 
     is amended by adding at the end the following new paragraph:
       ``(9) No carryback of new markets tax credit before january 
     1, 2001.--No portion of the unused business credit for any 
     taxable year which is attributable to the credit under 
     section 45D may be carried back to a taxable year ending 
     before January 1, 2001.''.
       (c) Deduction for Unused Credit.--Subsection (c) of section 
     196 is amended by striking ``and'' at the end of paragraph 
     (7), by striking the period at the end of paragraph (8) and 
     inserting ``, and'', and by adding at the end the following 
     new paragraph:
       ``(9) the new markets tax credit determined under section 
     45D(a).''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following new item:

``Sec. 45D. New markets tax credit.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to investments made after December 31, 2000.
       (f) Guidance on Allocation of National Limitation.--Not 
     later than 120 days after the date of the enactment of this 
     Act, the Secretary of the Treasury or the Secretary's 
     delegate shall issue guidance which specifies--
       (1) how entities shall apply for an allocation under 
     section 45D(f)(2) of the Internal Revenue Code of 1986, as 
     added by this section;
       (2) the competitive procedure through which such 
     allocations are made; and
       (3) the actions that such Secretary or delegate shall take 
     to ensure that such allocations are properly made to 
     appropriate entities.
       (g) Audit and Report.--Not later than January 31 of 2004, 
     2007, and 2010, the Comptroller General of the United States 
     shall, pursuant to an audit of the new markets tax credit 
     program established under section 45D of the Internal Revenue 
     Code of 1986 (as added by subsection (a)), report to Congress 
     on such program, including all qualified community 
     development entities that receive an allocation under the new 
     markets credit under such section.

         Subtitle D--Improvements in Low-Income Housing Credit

     SEC. 131. MODIFICATION OF STATE CEILING ON LOW-INCOME HOUSING 
                   CREDIT.

       (a) In General.--Clauses (i) and (ii) of section 
     42(h)(3)(C) (relating to State housing credit ceiling) are 
     amended to read as follows:
       ``(i) the unused State housing credit ceiling (if any) of 
     such State for the preceding calendar year,
       ``(ii) the greater of--

       ``(I) $1.75 ($1.50 for 2001) multiplied by the State 
     population, or
       ``(II) $2,000,000,''.

       (b) Adjustment of State Ceiling for Increases in Cost-of-
     Living.--Paragraph (3) of section 42(h) (relating to housing 
     credit dollar amount for agencies) is amended by adding at 
     the end the following new subparagraph:
       ``(H) Cost-of-living adjustment.--
       ``(i) In general.--In the case of a calendar year after 
     2002, the $2,000,000 and $1.75 amounts in subparagraph (C) 
     shall each 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 such calendar year by substituting 
     `calendar year 2001' for `calendar year 1992' in subparagraph 
     (B) thereof.

       ``(ii) Rounding.--

       ``(I) In the case of the $2,000,000 amount, any increase 
     under clause (i) which is not a multiple of $5,000 shall be 
     rounded to the next lowest multiple of $5,000.
       ``(II) In the case of the $1.75 amount, any increase under 
     clause (i) which is not a multiple of 5 cents shall be 
     rounded to the next lowest multiple of 5 cents.''.

       (c) Conforming Amendments.--
       (1) Section 42(h)(3)(C), as amended by subsection (a), is 
     amended--
       (A) by striking ``clause (ii)'' in the matter following 
     clause (iv) and inserting ``clause (i)''; and
       (B) by striking ``clauses (i)'' in the matter following 
     clause (iv) and inserting ``clauses (ii)''.
       (2) Section 42(h)(3)(D)(ii) is amended--
       (A) by striking ``subparagraph (C)(ii)'' and inserting 
     ``subparagraph (C)(i)''; and
       (B) by striking ``clauses (i)'' in subclause (II) and 
     inserting ``clauses (ii)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to calendar years after 2000.

     SEC. 132. MODIFICATION OF CRITERIA FOR ALLOCATING HOUSING 
                   CREDITS AMONG PROJECTS.

       (a) Selection Criteria.--Subparagraph (C) of section 
     42(m)(1) (relating to certain selection criteria must be 
     used) is amended--
       (1) by inserting ``, including whether the project includes 
     the use of existing housing as part of a community 
     revitalization plan'' before the comma at the end of clause 
     (iii); and
       (2) by striking clauses (v), (vi), and (vii) and inserting 
     the following new clauses:
       ``(v) tenant populations with special housing needs,
       ``(vi) public housing waiting lists,
       ``(vii) tenant populations of individuals with children, 
     and
       ``(viii) projects intended for eventual tenant 
     ownership.''.
       (b) Preference for Community Revitalization Projects 
     Located in Qualified Census Tracts.--Clause (ii) of section 
     42(m)(1)(B) is amended by striking ``and'' at the end of 
     subclause (I), by adding ``and'' at the end of subclause 
     (II), and by inserting after subclause (II) the following new 
     subclause:

       ``(III) projects which are located in qualified census 
     tracts (as defined in subsection (d)(5)(C)) and the 
     development of which contributes to a concerted community 
     revitalization plan,''.

     SEC. 133. ADDITIONAL RESPONSIBILITIES OF HOUSING CREDIT 
                   AGENCIES.

       (a) Market Study; Public Disclosure of Rationale for Not 
     Following Credit Allocation Priorities.--Subparagraph (A) of 
     section 42(m)(1) (relating to responsibilities of housing 
     credit agencies) is amended by striking ``and'' at the end of 
     clause (i), by striking the period at the end of clause (ii) 
     and inserting a comma, and by adding at the end the following 
     new clauses:
       ``(iii) a comprehensive market study of the housing needs 
     of low-income individuals in the area to be served by the 
     project is conducted before the credit allocation is made and 
     at the developer's expense by a disinterested party who is 
     approved by such agency, and
       ``(iv) a written explanation is available to the general 
     public for any allocation of a housing credit dollar amount 
     which is not made in accordance with established priorities 
     and selection criteria of the housing credit agency.''.
       (b) Site Visits.--Clause (iii) of section 42(m)(1)(B) 
     (relating to qualified allocation plan) is amended by 
     inserting before the period ``and in monitoring for 
     noncompliance with habitability standards through regular 
     site visits''.

     SEC. 134. MODIFICATIONS TO RULES RELATING TO BASIS OF 
                   BUILDING WHICH IS ELIGIBLE FOR CREDIT.

       (a) Adjusted Basis To Include Portion of Certain Buildings 
     Used by Low-Income Individuals Who Are Not Tenants and by 
     Project Employees.--Paragraph (4) of section 42(d) (relating 
     to special rules relating to determination of adjusted basis) 
     is amended--
       (1) by striking ``subparagraph (B)'' in subparagraph (A) 
     and inserting ``subparagraphs (B) and (C)'';
       (2) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) Inclusion of basis of property used to provide 
     services for certain nontenants.--
       ``(i) In general.--The adjusted basis of any building 
     located in a qualified census tract (as defined in paragraph 
     (5)(C)) shall be determined by taking into account the 
     adjusted basis of property (of a character subject to the 
     allowance for depreciation and not otherwise taken into 
     account) used throughout the taxable year in providing any 
     community service facility.
       ``(ii) Limitation.--The increase in the adjusted basis of 
     any building which is taken into account by reason of clause 
     (i) shall not exceed 10 percent of the eligible basis of the 
     qualified low-income housing project of which it is a part. 
     For purposes of the preceding sentence, all community service 
     facilities which are part of the same qualified low-income 
     housing project shall be treated as one facility.
       ``(iii) Community service facility.--For purposes of this 
     subparagraph, the term `community service facility' means any 
     facility designed to serve primarily individuals whose income 
     is 60 percent or less of area median income (within the 
     meaning of subsection (g)(1)(B)).''.
       (b) Certain Native American Housing Assistance Disregarded 
     in Determining Whether Building Is Federally Subsidized for 
     Purposes of the Low-Income Housing Credit.--Subparagraph (E) 
     of section 42(i)(2) (relating to determination of whether 
     building is federally subsidized) is amended--
       (1) in clause (i), by inserting ``or the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4101 et seq.) (as in effect on October 1, 1997)'' 
     after ``this subparagraph)''; and

[[Page 26974]]

       (2) in the subparagraph heading, by inserting ``or native 
     american housing assistance'' after ``home assistance''.

     SEC. 135. OTHER MODIFICATIONS.

       (a) Allocation of Credit Limit to Certain Buildings.--
       (1) The first sentence of section 42(h)(1)(E)(ii) is 
     amended by striking ``(as of'' the first place it appears and 
     inserting ``(as of the later of the date which is 6 months 
     after the date that the allocation was made or''.
       (2) The last sentence of section 42(h)(3)(C) is amended by 
     striking ``project which'' and inserting ``project which 
     fails to meet the 10 percent test under paragraph (1)(E)(ii) 
     on a date after the close of the calendar year in which the 
     allocation was made or which''.
       (b) Determination of Whether Buildings Are Located in High 
     Cost Areas.--The first sentence of section 42(d)(5)(C)(ii)(I) 
     is amended--
       (1) by inserting ``either'' before ``in which 50 percent''; 
     and
       (2) by inserting before the period ``or which has a poverty 
     rate of at least 25 percent''.

     SEC. 136. CARRYFORWARD RULES.

       (a) In General.--Clause (ii) of section 42(h)(3)(D) 
     (relating to unused housing credit carryovers allocated among 
     certain States) is amended by striking ``the excess'' and all 
     that follows and inserting ``the excess (if any) of--

       ``(I) the unused State housing credit ceiling for the year 
     preceding such year, over
       ``(II) the aggregate housing credit dollar amount allocated 
     for such year.''.

       (b) Conforming Amendment.--The second sentence of section 
     42(h)(3)(C) (relating to State housing credit ceiling) is 
     amended by striking ``clauses (i) and (iii)'' and inserting 
     ``clauses (i) through (iv)''.

     SEC. 137. EFFECTIVE DATE.

       Except as otherwise provided in this subtitle, the 
     amendments made by this subtitle shall apply to--
       (1) housing credit dollar amounts allocated after December 
     31, 2000; and
       (2) buildings placed in service after such date to the 
     extent paragraph (1) of section 42(h) of the Internal Revenue 
     Code of 1986 does not apply to any building by reason of 
     paragraph (4) thereof, but only with respect to bonds issued 
     after such date.

     Subtitle E--Other Community Renewal and New Markets Assistance

 PART I--PROVISIONS RELATING TO HOUSING AND SUBSTANCE ABUSE PREVENTION 
                             AND TREATMENT

     SEC. 141. TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD 
                   HOUSING TO LOCAL GOVERNMENTS AND COMMUNITY 
                   DEVELOPMENT CORPORATIONS.

       Section 204 of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1997 (12 U.S.C. 1715z-11a) is amended--
       (1) by striking ``Flexible Authority.--'' and inserting 
     ``Disposition of HUD-Owned Properties. (a) Flexible Authority 
     for Multifamily Projects.--''; and
       (2) by adding at the end the following new subsection:
       ``(b) Transfer of Unoccupied and Substandard Housing to 
     Local Governments and Community Development Corporations.--
       ``(1) Transfer authority.--Notwithstanding the authority 
     under subsection (a) and the last sentence of section 204(g) 
     of the National Housing Act (12 U.S.C. 1710(g)), the 
     Secretary of Housing and Urban Development shall transfer 
     ownership of any qualified HUD property, subject to the 
     requirements of this section, to a unit of general local 
     government having jurisdiction for the area in which the 
     property is located or to a community development corporation 
     which operates within such a unit of general local government 
     in accordance with this subsection, but only to the extent 
     that units of general local government and community 
     development corporations consent to transfer and the 
     Secretary determines that such transfer is practicable.
       ``(2) Qualified hud properties.--For purposes of this 
     subsection, the term `qualified HUD property' means any 
     property for which, as of the date that notification of the 
     property is first made under paragraph (3)(B), not less than 
     6 months have elapsed since the later of the date that the 
     property was acquired by the Secretary or the date that the 
     property was determined to be unoccupied or substandard, that 
     is owned by the Secretary and is--
       ``(A) an unoccupied multifamily housing project;
       ``(B) a substandard multifamily housing project; or
       ``(C) an unoccupied single family property that--
       ``(i) has been determined by the Secretary not to be an 
     eligible asset under section 204(h) of the National Housing 
     Act (12 U.S.C. 1710(h)); or
       ``(ii) is an eligible asset under such section 204(h), 
     but--

       ``(I) is not subject to a specific sale agreement under 
     such section; and
       ``(II) has been determined by the Secretary to be 
     inappropriate for continued inclusion in the program under 
     such section 204(h) pursuant to paragraph (10) of such 
     section.

       ``(3) Timing.--The Secretary shall establish procedures 
     that provide for--
       ``(A) time deadlines for transfers under this subsection;
       ``(B) notification to units of general local government and 
     community development corporations of qualified HUD 
     properties in their jurisdictions;
       ``(C) such units and corporations to express interest in 
     the transfer under this subsection of such properties;
       ``(D) a right of first refusal for transfer of qualified 
     HUD properties to units of general local government and 
     community development corporations, under which--
       ``(i) the Secretary shall establish a period during which 
     the Secretary may not transfer such properties except to such 
     units and corporations;
       ``(ii) the Secretary shall offer qualified HUD properties 
     that are single family properties for purchase by units of 
     general local government at a cost of $1 for each property, 
     but only to the extent that the costs to the Federal 
     Government of disposal at such price do not exceed the costs 
     to the Federal Government of disposing of property subject to 
     the procedures for single family property established by the 
     Secretary pursuant to the authority under the last sentence 
     of section 204(g) of the National Housing Act (12 U.S.C. 
     1710(g));
       ``(iii) the Secretary may accept an offer to purchase a 
     property made by a community development corporation only if 
     the offer provides for purchase on a cost recovery basis; and
       ``(iv) the Secretary shall accept an offer to purchase such 
     a property that is made during such period by such a unit or 
     corporation and that complies with the requirements of this 
     paragraph; and
       ``(E) a written explanation, to any unit of general local 
     government or community development corporation making an 
     offer to purchase a qualified HUD property under this 
     subsection that is not accepted, of the reason that such 
     offer was not acceptable.
       ``(4) Other disposition.--With respect to any qualified HUD 
     property, if the Secretary does not receive an acceptable 
     offer to purchase the property pursuant to the procedure 
     established under paragraph (3), the Secretary shall dispose 
     of the property to the unit of general local government in 
     which property is located or to community development 
     corporations located in such unit of general local government 
     on a negotiated, competitive bid, or other basis, on such 
     terms as the Secretary deems appropriate.
       ``(5) Satisfaction of indebtedness.--Before transferring 
     ownership of any qualified HUD property pursuant to this 
     subsection, the Secretary shall satisfy any indebtedness 
     incurred in connection with the property to be transferred, 
     by canceling the indebtedness.
       ``(6) Determination of status of properties.--To ensure 
     compliance with the requirements of this subsection, the 
     Secretary shall take the following actions:
       ``(A) Upon enactment.--Upon the enactment of this 
     subsection, the Secretary shall promptly assess each 
     residential property owned by the Secretary to determine 
     whether such property is a qualified HUD property.
       ``(B) Upon acquisition.--Upon acquiring any residential 
     property, the Secretary shall promptly determine whether the 
     property is a qualified HUD property.
       ``(C) Updates.--The Secretary shall periodically reassess 
     the residential properties owned by the Secretary to 
     determine whether any such properties have become qualified 
     HUD properties.
       ``(7) Tenant leases.--This subsection shall not affect the 
     terms or the enforceability of any contract or lease entered 
     into with respect to any residential property before the date 
     that such property becomes a qualified HUD property.
       ``(8) Use of property.--Property transferred under this 
     subsection shall be used only for appropriate neighborhood 
     revitalization efforts, including homeownership, rental 
     units, commercial space, and parks, consistent with local 
     zoning regulations, local building codes, and subdivision 
     regulations and restrictions of record.
       ``(9) Inapplicability to properties made available for 
     homeless.--Notwithstanding any other provision of this 
     subsection, this subsection shall not apply to any properties 
     that the Secretary determines are to be made available for 
     use by the homeless pursuant to subpart E of part 291 of 
     title 24, Code of Federal Regulations, during the period that 
     the properties are so available.
       ``(10) Protection of existing contracts.--This subsection 
     may not be construed to alter, affect, or annul any legally 
     binding obligations entered into with respect to a qualified 
     HUD property before the property becomes a qualified HUD 
     property.
       ``(11) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Community development corporation.--The term 
     `community development corporation' means a nonprofit 
     organization whose primary purpose is to promote community 
     development by providing housing opportunities for low-income 
     families.
       ``(B) Cost recovery basis.--The term `cost recovery basis' 
     means, with respect to any sale of a residential property by 
     the Secretary, that the purchase price paid by the purchaser 
     is equal to or greater than the sum of: (i) the appraised 
     value of the property, as determined in accordance with such 
     requirements as the Secretary shall establish; and (ii) the 
     costs incurred by the Secretary in connection with such 
     property during the period beginning on the date on which the 
     Secretary acquires title to the property and ending on the 
     date on which the sale is consummated.
       ``(C) Multifamily housing project.--The term `multifamily 
     housing project' has the

[[Page 26975]]

     meaning given the term in section 203 of the Housing and 
     Community Development Amendments of 1978.
       ``(D) Residential property.--The term `residential 
     property' means a property that is a multifamily housing 
     project or a single family property.
       ``(E) Secretary.--The term `Secretary' means the Secretary 
     of Housing and Urban Development.
       ``(F) Severe physical problems.--The term `severe physical 
     problems' means, with respect to a dwelling unit, that the 
     unit--
       ``(i) lacks hot or cold piped water, a flush toilet, or 
     both a bathtub and a shower in the unit, for the exclusive 
     use of that unit;
       ``(ii) on not less than three separate occasions during the 
     preceding winter months, was uncomfortably cold for a period 
     of more than 6 consecutive hours due to a malfunction of the 
     heating system for the unit;
       ``(iii) has no functioning electrical service, exposed 
     wiring, any room in which there is not a functioning 
     electrical outlet, or has experienced three or more blown 
     fuses or tripped circuit breakers during the preceding 90-day 
     period;
       ``(iv) is accessible through a public hallway in which 
     there are no working light fixtures, loose or missing steps 
     or railings, and no elevator; or
       ``(v) has severe maintenance problems, including water 
     leaks involving the roof, windows, doors, basement, or pipes 
     or plumbing fixtures, holes or open cracks in walls or 
     ceilings, severe paint peeling or broken plaster, and signs 
     of rodent infestation.
       ``(G) Single family property.--The term `single family 
     property' means a 1- to 4-family residence.
       ``(H) Substandard.--The term `substandard' means, with 
     respect to a multifamily housing project, that 25 percent or 
     more of the dwelling units in the project have severe 
     physical problems.
       ``(I) Unit of general local government.--The term `unit of 
     general local government' has the meaning given such term in 
     section 102(a) of the Housing and Community Development Act 
     of 1974.
       ``(J) Unoccupied.--The term `unoccupied' means, with 
     respect to a residential property, that the unit of general 
     local government having jurisdiction over the area in which 
     the project is located has certified in writing that the 
     property is not inhabited.
       ``(12) Regulations.--
       ``(A) Interim.--Not later than 30 days after the date of 
     the enactment of this subsection, the Secretary shall issue 
     such interim regulations as are necessary to carry out this 
     subsection.
       ``(B) Final.--Not later than 60 days after the date of the 
     enactment of this subsection, the Secretary shall issue such 
     final regulations as are necessary to carry out this 
     subsection.''.

     SEC. 142. TRANSFER OF HUD ASSETS IN REVITALIZATION AREAS.

       In carrying out the program under section 204(h) of the 
     National Housing Act (12 U.S.C. 1710(h)), upon the request of 
     the chief executive officer of a county or the government of 
     appropriate jurisdiction and not later than 60 days after 
     such request is made, the Secretary of Housing and Urban 
     Development shall designate as a revitalization area all 
     portions of such county that meet the criteria for such 
     designation under paragraph (3) of such section.

     SEC. 143. RISK-SHARING DEMONSTRATION.

       Section 249 of the National Housing Act (12 U.S.C. 1715z-
     14) is amended--
       (1) by striking the section heading and inserting the 
     following:


                    ``risk-sharing demonstration'';

       (2) by striking ``reinsurance'' each place such term 
     appears and insert ``risk-sharing'';
       (3) in subsection (a)--
       (A) in the first sentence, by inserting ``and with insured 
     community development financial institutions'' after 
     ``private mortgage insurers'';
       (B) in the second sentence--
       (i) by striking ``two'' and inserting ``four''; and
       (ii) by striking ``March 15, 1988'' and inserting ``the 
     expiration of the 5-year period beginning on the date of the 
     enactment of the Community Renewal Tax Relief Act of 2000''; 
     and
       (C) in the third sentence--
       (i) by striking ``insured'' and inserting ``for which risk 
     of nonpayment is shared''; and
       (ii) by striking ``10 percent'' and inserting ``20 
     percent'';
       (4) in subsection (b)--
       (A) in the first sentence--
       (i) by striking ``to provide'' and inserting ``, in 
     providing'';
       (ii) by striking ``through'' and inserting ``, to enter 
     into''; and
       (iii) by inserting ``and with insured community development 
     financial institutions'' before the period at the end;
       (B) in the second sentence, by inserting ``and insured 
     community development financial institutions'' after 
     ``private mortgage insurance companies'';
       (C) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) assume a secondary percentage of loss on any mortgage 
     insured pursuant to section 203(b), 234, or 245 covering a 
     one- to four-family dwelling, which percentage of loss shall 
     be set forth in the risk-sharing contract, with the first 
     percentage of loss to be borne by the Secretary;''; and
       (D) in paragraph (2)--
       (i) by striking ``carry out (under appropriate delegation) 
     such'' and inserting ``perform or delegate underwriting,'';
       (ii) by striking ``function as the Secretary pursuant to 
     regulations,'' and inserting ``functions as the Secretary''; 
     and
       (iii) by inserting before the period at the end the 
     following: ``and shall set forth in the risk-sharing 
     contract'';
       (5) in subsection (c)--
       (A) in the first sentence--
       (i) by striking ``of'' the first place it appears and 
     inserting ``for'';
       (ii) by inserting ``received by the Secretary with a 
     private mortgage insurer or insured community development 
     financial institution'' after ``sharing of premiums'';
       (iii) by striking ``insurance reserves'' and inserting 
     ``loss reserves'';
       (iv) by striking ``such insurance'' and inserting ``such 
     risk-sharing contract''; and
       (v) by striking ``right'' and inserting ``rights''; and
       (B) in the second sentence--
       (i) by inserting ``or insured community development 
     financial institution'' after ``private mortgage insurance 
     company''; and
       (ii) by striking ``for insurance'' and inserting ``for 
     risk-sharing'';
       (6) in subsection (d), by inserting ``or insured community 
     development financial institution'' after ``private mortgage 
     insurance company''; and
       (7) by adding at the end the following new subsection:
       ``(e) Insured Community Development Financial 
     Institution.--For purposes of this section, the term `insured 
     community development financial institution' means a 
     community development financial institution, as such term is 
     defined in section 103 of Reigle Community Development and 
     Regulatory Improvement Act of 1994 (12 U.S.C. 4702) that is 
     an insured depository institution (as such term is defined in 
     section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
     1813)) or an insured credit union (as such term is defined in 
     section 101 of the Federal Credit Union Act (12 U.S.C. 
     1752)).''.

     SEC. 144. PREVENTION AND TREATMENT OF SUBSTANCE ABUSE; 
                   SERVICES PROVIDED THROUGH RELIGIOUS 
                   ORGANIZATIONS.

       Title V of the Public Health Service Act (42 U.S.C. 290aa 
     et seq.) is amended by adding at the end the following part:

      ``Part G--Services Provided Through Religious Organizations

     ``SEC. 581. APPLICABILITY TO DESIGNATED PROGRAMS.

       ``(a) Designated Programs.--Subject to subsection (b), this 
     part applies to discretionary and formula grant programs 
     administered by the Substance Abuse and Mental Health 
     Services Administration that make awards of financial 
     assistance to public or private entities for the purpose of 
     carrying out activities to prevent or treat substance abuse 
     (in this part referred to as a `designated program'). 
     Designated programs include the program under subpart II of 
     part B of title XIX (relating to formula grants to the 
     States).
       ``(b) Limitation.--This part does not apply to any award of 
     financial assistance under a designated program for a purpose 
     other than the purpose specified in subsection (a).
       ``(c) Definitions.--For purposes of this part (and subject 
     to subsection (b)):
       ``(1) The term `designated program' has the meaning given 
     such term in subsection (a).
       ``(2) The term `financial assistance' means a grant, 
     cooperative agreement, or contract.
       ``(3) The term `program beneficiary' means an individual 
     who receives program services.
       ``(4) The term `program participant' means a public or 
     private entity that has received financial assistance under a 
     designated program.
       ``(5) The term `program services' means treatment for 
     substance abuse, or preventive services regarding such abuse, 
     provided pursuant to an award of financial assistance under a 
     designated program.
       ``(6) The term `religious organization' means a nonprofit 
     religious organization.

     ``SEC. 582. RELIGIOUS ORGANIZATIONS AS PROGRAM PARTICIPANTS.

       ``(a) In General.--Notwithstanding any other provision of 
     law, a religious organization, on the same basis as any other 
     nonprofit private provider--
       ``(1) may receive financial assistance under a designated 
     program; and
       ``(2) may be a provider of services under a designated 
     program.
       ``(b) Religious Organizations.--The purpose of this section 
     is to allow religious organizations to be program 
     participants on the same basis as any other nonprofit private 
     provider without impairing the religious character of such 
     organizations, and without diminishing the religious freedom 
     of program beneficiaries.
       ``(c) Nondiscrimination Against Religious Organizations.--
       ``(1) Eligibility as program participants.--Religious 
     organizations are eligible to be program participants on the 
     same basis as any other nonprofit private organization as 
     long as the programs are implemented consistent with the 
     Establishment Clause and Free Exercise Clause of the First 
     Amendment to the United States Constitution. Nothing in this 
     Act shall be construed to restrict the ability of the Federal 
     Government, or a State or local government receiving funds 
     under such programs, to apply to religious organizations the 
     same eligibility conditions in designated programs as are 
     applied to any other nonprofit private organization.
       ``(2) Nondiscrimination.--Neither the Federal Government 
     nor a State or local government receiving funds under 
     designated programs shall discriminate against an 
     organization that is or

[[Page 26976]]

     applies to be a program participant on the basis that the 
     organization has a religious character.
       ``(d) Religious Character and Freedom.--
       ``(1) Religious organizations.--Except as provided in this 
     section, any religious organization that is a program 
     participant shall retain its independence from Federal, 
     State, and local government, including such organization's 
     control over the definition, development, practice, and 
     expression of its religious beliefs.
       ``(2) Additional safeguards.--Neither the Federal 
     Government nor a State shall require a religious organization 
     to--
       ``(A) alter its form of internal governance; or
       ``(B) remove religious art, icons, scripture, or other 
     symbols,

     in order to be a program participant.
       ``(e) Employment Practices.--Nothing in this section shall 
     be construed to modify or affect the provisions of any other 
     Federal or State law or regulation that relates to 
     discrimination in employment. A religious organization's 
     exemption provided under section 702 of the Civil Rights Act 
     of 1964 regarding employment practices shall not be affected 
     by its participation in, or receipt of funds from, a 
     designated program.
       ``(f) Rights of Program Beneficiaries.--
       ``(1) In general.--If an individual who is a program 
     beneficiary or a prospective program beneficiary objects to 
     the religious character of a program participant, within a 
     reasonable period of time after the date of such objection 
     such program participant shall refer such individual to, and 
     the appropriate Federal, State, or local government that 
     administers a designated program or is a program participant 
     shall provide to such individual (if otherwise eligible for 
     such services), program services that--
       ``(A) are from an alternative provider that is accessible 
     to, and has the capacity to provide such services to, such 
     individual; and
       ``(B) have a value that is not less than the value of the 
     services that the individual would have received from the 
     program participant to which the individual had such 
     objection.

     Upon referring a program beneficiary to an alternative 
     provider, the program participant shall notify the 
     appropriate Federal, State, or local government agency that 
     administers the program of such referral.
       ``(2) Notices.--Program participants, public agencies that 
     refer individuals to designated programs, and the appropriate 
     Federal, State, or local governments that administer 
     designated programs or are program participants shall ensure 
     that notice is provided to program beneficiaries or 
     prospective program beneficiaries of their rights under this 
     section.
       ``(3) Additional requirements.--A program participant 
     making a referral pursuant to paragraph (1) shall--
       ``(A) prior to making such referral, consider any list that 
     the State or local government makes available of entities in 
     the geographic area that provide program services; and
       ``(B) ensure that the individual makes contact with the 
     alternative provider to which the individual is referred.
       ``(4) Nondiscrimination.--A religious organization that is 
     a program participant shall not in providing program services 
     or engaging in outreach activities under designated programs 
     discriminate against a program beneficiary or prospective 
     program beneficiary on the basis of religion or religious 
     belief.
       ``(g) Fiscal Accountability.--
       ``(1) In general.--Except as provided in paragraph (2), any 
     religious organization that is a program participant shall be 
     subject to the same regulations as other recipients of awards 
     of Federal financial assistance to account, in accordance 
     with generally accepted auditing principles, for the use of 
     the funds provided under such awards.
       ``(2) Limited audit.--With respect to the award involved, a 
     religious organization that is a program participant shall 
     segregate Federal amounts provided under award into a 
     separate account from non-Federal funds. Only the award funds 
     shall be subject to audit by the government.
       ``(h) Compliance.--With respect to compliance with this 
     section by an agency, a religious organization may obtain 
     judicial review of agency action in accordance with chapter 7 
     of title 5, United States Code.

     ``SEC. 583. LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES.

       ``No funds provided under a designated program shall be 
     expended for sectarian worship, instruction, or 
     proselytization.

     ``SEC. 584. EDUCATIONAL REQUIREMENTS FOR PERSONNEL IN DRUG 
                   TREATMENT PROGRAMS.

       ``(a) Findings.--The Congress finds that--
       ``(1) establishing unduly rigid or uniform educational 
     qualification for counselors and other personnel in drug 
     treatment programs may undermine the effectiveness of such 
     programs; and
       ``(2) such educational requirements for counselors and 
     other personnel may hinder or prevent the provision of needed 
     drug treatment services.
       ``(b) Nondiscrimination.--In determining whether personnel 
     of a program participant that has a record of successful drug 
     treatment for the preceding three years have satisfied State 
     or local requirements for education and training, a State or 
     local government shall not discriminate against education and 
     training provided to such personnel by a religious 
     organization, so long as such education and training includes 
     basic content substantially equivalent to the content 
     provided by nonreligious organizations that the State or 
     local government would credit for purposes of determining 
     whether the relevant requirements have been satisfied.''.

             PART II--ADVISORY COUNCIL ON COMMUNITY RENEWAL

     SEC. 151. SHORT TITLE.

       This part may be cited as the ``Advisory Council on 
     Community Renewal Act''.

     SEC. 152. ESTABLISHMENT.

       There is established an advisory council to be known as the 
     ``Advisory Council on Community Renewal'' (in this part 
     referred to as the ``Advisory Council'').

     SEC. 153. DUTIES OF ADVISORY COUNCIL.

       The Advisory Council shall advise the Secretary of Housing 
     and Urban Development (in this part referred to as the 
     ``Secretary'') on the designation of renewal communities 
     pursuant to the amendment made by section 101 and on the 
     exercise of any other authority granted to the Secretary 
     pursuant to the amendments made by this title.

     SEC. 154. MEMBERSHIP.

       (a) Number and Appointment.--The Advisory Council shall be 
     composed of 7 members appointed by the Secretary.
       (b) Chairperson.--The Chairperson of the Advisory Council 
     (in this part referred to as the ``Chairperson'') shall be 
     designated by the Secretary at the time of the appointment.
       (c) Terms.--Each member shall be appointed for the life of 
     the Advisory Council.
       (d) Basic Pay.--
       (1) Chairperson.--The Chairperson shall be paid at a rate 
     equal to the daily rate of basic pay for level III of the 
     Executive Schedule for each day (including travel time) 
     during which the Chairperson is engaged in the actual 
     performance of duties vested in the Advisory Council.
       (2) Other members.--Members other than the Chairperson 
     shall each be paid at a rate equal to the daily rate of basic 
     pay for level IV of the Executive Schedule for each day 
     (including travel time) during which they are engaged in the 
     actual performance of duties vested in the Advisory Council.
       (e) Travel Expenses.--Each member shall receive travel 
     expenses, including per diem in lieu of subsistence, in 
     accordance with applicable provisions under subchapter I of 
     chapter 57 of title 5, United States Code.
       (f) Quorum.--Four members of the Advisory Council shall 
     constitute a quorum but a lesser number may hold hearings.
       (g) Meetings.--The Advisory Council shall meet at the call 
     of the Secretary or the Chairperson.

     SEC. 155. POWERS OF ADVISORY COUNCIL.

       (a) Hearings and Sessions.--The Advisory Council may, for 
     the purpose of carrying out this part, hold hearings, sit and 
     act at times and places, take testimony, and receive evidence 
     as the Advisory Council considers appropriate. The Advisory 
     Council may administer oaths or affirmations to witnesses 
     appearing before it.
       (b) Powers of Members and Agents.--Any member or agent of 
     the Advisory Council may, if authorized by the Advisory 
     Council, take any action which the Advisory Council is 
     authorized to take by this section.
       (c) Obtaining Official Data.--The Advisory Council may 
     secure directly from any department or agency of the United 
     States information necessary to enable it to carry out this 
     part. Upon request of the Chairperson of the Advisory 
     Council, the head of that department or agency shall furnish 
     that information to the Advisory Council.

     SEC. 156. REPORTS.

       (a) Annual Reports.--The Advisory Council shall submit to 
     the Secretary an annual report for each fiscal year.
       (b) Interim Reports.--The Advisory Council may submit to 
     the Secretary such interim reports as the Advisory Council 
     considers appropriate.
       (c) Final Report.--The Advisory Council shall transmit a 
     final report to the Secretary not later September 30, 2003. 
     The final report shall contain a detailed statement of the 
     findings and conclusions of the Advisory Council, together 
     with any recommendations for legislative or administrative 
     action that the Advisory Council considers appropriate.

     SEC. 157. TERMINATION.

       (a) In General.--The Advisory Council shall terminate 30 
     days after submitting its final report under section 156(c).
       (b) Extension.--Notwithstanding subsection (a), the 
     Secretary may postpone the termination of the Advisory 
     Council for a period not to exceed 3 years after the Advisory 
     Council submits its final report under section 156(c).

     SEC. 158. APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.

       The Federal Advisory Committee Act (5 U.S.C. App.) shall 
     not apply to the Advisory Council.

     SEC. 159. RESOURCES.

       The Secretary shall provide to the Advisory Council 
     appropriate resources so that the Advisory Council may carry 
     out its duties and fuctions under this part.

     SEC. 160. EFFECTIVE DATE.

       This part shall be effective 30 days after the date of its 
     enactment.

                      Subtitle F--Other Provisions

     SEC. 161. ACCELERATION OF PHASE-IN OF INCREASE IN VOLUME CAP 
                   ON PRIVATE ACTIVITY BONDS.

       (a) In General.--Paragraphs (1) and (2) of section 146(d) 
     (relating to State ceiling) are amended to read as follows:
       ``(1) In general.--The State ceiling applicable to any 
     State for any calendar year shall be the greater of--
       ``(A) an amount equal to $75 ($62.50 in the case of 
     calendar year 2001) multiplied by the State population, or

[[Page 26977]]

       ``(B) $225,000,000 ($187,500,000 in the case of calendar 
     year 2001).
       ``(2) Cost-of-living adjustment.--In the case of a calendar 
     year after 2002, each of the dollar amounts contained in 
     paragraph (1) shall be increased by an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2001' for `calendar year 1992' in subparagraph 
     (B) thereof.
     If any increase determined under the preceding sentence is 
     not a multiple of $5 ($5,000 in the case of the dollar amount 
     in paragraph (1)(B)), such increase shall be rounded to the 
     nearest multiple thereof.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to calendar years after 2000.

     SEC. 162. MODIFICATIONS TO EXPENSING OF ENVIRONMENTAL 
                   REMEDIATION COSTS.

       (a) Expensing Not Limited to Sites in Targeted Areas.--
     Subsection (c) of section 198 is amended to read as follows:
       ``(c) Qualified Contaminated Site.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified contaminated site' 
     means any area--
       ``(A) which is held by the taxpayer for use in a trade or 
     business or for the production of income, or which is 
     property described in section 1221(a)(1) in the hands of the 
     taxpayer, and
       ``(B) at or on which there has been a release (or threat of 
     release) or disposal of any hazardous substance.
       ``(2) National priorities listed sites not included.--Such 
     term shall not include any site which is on, or proposed for, 
     the national priorities list under section 105(a)(8)(B) of 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (as in effect on the date of the 
     enactment of this section).
       ``(3) Taxpayer must receive statement from state 
     environmental agency.--An area shall be treated as a 
     qualified contaminated site with respect to expenditures paid 
     or incurred during any taxable year only if the taxpayer 
     receives a statement from the appropriate agency of the State 
     in which such area is located that such area meets the 
     requirement of paragraph (1)(B).
       ``(4) Appropriate state agency.--For purposes of paragraph 
     (3), the chief executive officer of each State may, in 
     consultation with the Administrator of the Environmental 
     Protection Agency, designate the appropriate State 
     environmental agency within 60 days of the date of the 
     enactment of this section. If the chief executive officer of 
     a State has not designated an appropriate environmental 
     agency within such 60-day period, the appropriate 
     environmental agency for such State shall be designated by 
     the Administrator of the Environmental Protection Agency.''.
       (b) Extension of Termination Date.--Subsection (h) of 
     section 198 is amended by striking ``2001'' and inserting 
     ``2003''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to expenditures paid or incurred after the date 
     of the enactment of this Act.

     SEC. 163. EXTENSION OF DC HOMEBUYER TAX CREDIT.

       Section 1400C(i) (relating to application of section) is 
     amended by striking ``2002'' and inserting ``2004''.

     SEC. 164. EXTENSION OF DC ZONE THROUGH 2003.

       (a) In General.--The following provisions are amended by 
     striking ``2002'' each place it appears and inserting 
     ``2003'':
       (1) Section 1400(f).
       (2) Section 1400A(b).
       (b) Zero Capital Gains Rate.--Section 1400B (relating to 
     zero percent capital gains rate) is amended--
       (1) by striking ``2003'' each place it appears and 
     inserting ``2004'', and
       (2) by striking ``2007'' each place it appears and 
     inserting ``2008''.

     SEC. 165. EXTENSION OF ENHANCED DEDUCTION FOR CORPORATE 
                   DONATIONS OF COMPUTER TECHNOLOGY.

       (a) Expansion of Computer Technology Donations to Public 
     Libraries.--
       (1) In general.--Paragraph (6) of section 170(e) (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.--Clause (i) of section 
     170(e)(6)(B) (relating to qualified elementary or secondary 
     educational contribution) is amended by striking ``or'' at 
     the end of subclause (I), by adding ``or'' at the end of 
     subclause (II), and by inserting after subclause (II) the 
     following new subclause:

       ``(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 Renewal Tax Relief Act of 2000, established 
     and maintained by an entity described in subsection 
     (c)(1),''.

       (3) Extension of donation period.--Clause (ii) of section 
     170(e)(6)(B) is amended by striking ``2 years'' and inserting 
     ``3 years''.
       (b) Conforming Amendments.--
       (1) Section 170(e)(6)(B)(iv) is amended by striking ``in 
     any grades of the K-12''.
       (2) The heading of paragraph (6) of section 170(e) is 
     amended by striking ``elementary or secondary school 
     purposes'' and inserting ``educational purposes''.
       (c) Extension of Deduction.--Section 170(e)(6)(F) (relating 
     to termination) is amended by striking ``December 31, 2000'' 
     and inserting ``December 31, 2003''.
       (d) Standards as to Functionality and Suitability.--
     Subparagraph (B) of section 170(e)(6) is amended by striking 
     ``and'' at the end of clause (vi), by striking the period at 
     the end of clause (vii) and inserting ``, and'', and by 
     adding at the end the following new clause:
       ``(viii) the property meets such standards, if any, as the 
     Secretary may prescribe by regulation to assure that the 
     property meets minimum functionality and suitability 
     standards for educational purposes.''
       (e) Donations of Computers Reacquired by Manufacturer.--
     Paragraph (6) of section 170(e) is further amended by 
     redesignating subparagraphs (D), (E), and (F) as 
     subparagraphs (E), (F), and (G), respectively, and by 
     inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) Donations of property reacquired by manufacturer.--In 
     the case of property which is reacquired by the person who 
     constructed the property--
       ``(i) subparagraph (B)(ii) shall be applied to a 
     contribution of such property by such person by taking into 
     account the date that the original construction of the 
     property was substantially completed, and
       ``(ii) subparagraph (B)(iii) shall not apply to such 
     contribution.''
       (f) Effective Date.--The amendments made by this section 
     shall apply to contributions made after December 31, 2000.

     SEC. 166. TREATMENT OF INDIAN TRIBAL GOVERNMENTS UNDER 
                   FEDERAL UNEMPLOYMENT TAX ACT.

       (a) In General.--Section 3306(c)(7) (defining employment) 
     is amended--
       (1) by inserting ``or in the employ of an Indian tribe,'' 
     after ``service performed in the employ of a State, or any 
     political subdivision thereof,''; and
       (2) by inserting ``or Indian tribes'' after ``wholly owned 
     by one or more States or political subdivisions''.
       (b) Payments in Lieu of Contributions.--Section 3309 
     (relating to State law coverage of services performed for 
     nonprofit organizations or governmental entities) is 
     amended--
       (1) in subsection (a)(2) by inserting ``, including an 
     Indian tribe,'' after ``the State law shall provide that a 
     governmental entity'';
       (2) in subsection (b)(3)(B) by inserting ``, or of an 
     Indian tribe'' after ``of a State or political subdivision 
     thereof'';
       (3) in subsection (b)(3)(E) by inserting ``or tribal'' 
     after ``the State''; and
       (4) in subsection (b)(5) by inserting ``or of an Indian 
     tribe'' after ``an agency of a State or political subdivision 
     thereof''.
       (c) State Law Coverage.--Section 3309 (relating to State 
     law coverage of services performed for nonprofit 
     organizations or governmental entities) is amended by adding 
     at the end the following new subsection:
       ``(d) Election by Indian Tribe.--The State law shall 
     provide that an Indian tribe may make contributions for 
     employment as if the employment is within the meaning of 
     section 3306 or make payments in lieu of contributions under 
     this section, and shall provide that an Indian tribe may make 
     separate elections for itself and each subdivision, 
     subsidiary, or business enterprise wholly owned by such 
     Indian tribe. State law may require a tribe to post a payment 
     bond or take other reasonable measures to assure the making 
     of payments in lieu of contributions under this section. 
     Notwithstanding the requirements of section 3306(a)(6), if, 
     within 90 days of having received a notice of delinquency, a 
     tribe fails to make contributions, payments in lieu of 
     contributions, or payment of penalties or interest (at 
     amounts or rates comparable to those applied to all other 
     employers covered under the State law) assessed with respect 
     to such failure, or if the tribe fails to post a required 
     payment bond, then service for the tribe shall not be 
     excepted from employment under section 3306(c)(7) until any 
     such failure is corrected. This subsection shall apply to an 
     Indian tribe within the meaning of section 4(e) of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b(e)).''.
       (d) Definitions.--Section 3306 (relating to definitions) is 
     amended by adding at the end the following new subsection:
       ``(u) Indian Tribe.--For purposes of this chapter, the term 
     `Indian tribe' has the meaning given to such term by section 
     4(e) of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b(e)), and includes any 
     subdivision, subsidiary, or business enterprise wholly owned 
     by such an Indian tribe.''.
       (e) Effective Date; Transition Rule.--
       (1) Effective date.--The amendments made by this section 
     shall apply to service performed on or after the date of the 
     enactment of this Act.
       (2) Transition rule.--For purposes of the Federal 
     Unemployment Tax Act, service performed in the employ of an 
     Indian tribe (as defined in section 3306(u) of the Internal 
     Revenue Code of 1986 (as added by this section)) shall not be 
     treated as employment (within the meaning of section 3306 of 
     such Code) if--
       (A) it is service which is performed before the date of the 
     enactment of this Act and with respect to which the tax 
     imposed under the Federal Unemployment Tax Act has not been 
     paid, and
       (B) such Indian tribe reimburses a State unemployment fund 
     for unemployment benefits paid for service attributable to 
     such tribe for such period.

[[Page 26978]]



 TITLE II--2-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS

     SEC. 201. 2-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS 
                   ACCOUNTS.

       (a) In General.--Paragraphs (2) and (3)(B) of section 
     220(i) (defining cut-off year) are each amended by striking 
     ``2000'' each place it appears and inserting ``2002''.
       (b) Conforming Amendments.--
       (1) Paragraph (2) of section 220(j) is amended--
       (A) by striking ``1998 or 1999'' each place it appears and 
     inserting ``1998, 1999, or 2001'',
       (B) by striking ``600,000 (750,000 in the case of 1999)'' 
     and inserting ``750,000 (600,000 in the case of 1998)'', and
       (C) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) No limitation for 2000.--The numerical limitation 
     shall not apply for 2000.''
       (2) Subparagraph (A) of section 220(j)(4) is amended by 
     striking ``and 1999'' and inserting ``1999, and 2001''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 202. MEDICAL SAVINGS ACCOUNTS RENAMED AS ARCHER MSAS.

       (a) In General.--The following provisions are amended by 
     striking ``medical savings account'' each place it appears in 
     the text and inserting ``Archer MSA'':
       (1) Section 26(b)(2)(Q).
       (2) Section 106(b).
       (3) Section 138(b).
       (4) Section 220.
       (5) Section 848(e)(1)(B)(iv).
       (6) Subsections (a)(2) and (d) of section 4973.
       (7) Subsections (c)(4) and (e)(1)(D) of section 4975.
       (8) Subsections (a) and (d)(2)(B) of section 4980E.
       (9) Section 6051(a)(11).
       (b) Other Amendments.--
       (1) Paragraph (16) of section 62(a) is amended to read as 
     follows:
       ``(16) Archer msas.--The deduction allowed by section 
     220.''
       (2) The following provisions are each amended by striking 
     ``medical savings accounts'' each place it appears in the 
     text and inserting ``Archer MSAs'':
       (A) Paragraphs (4) and (7) of section 106(b).
       (B) Subsections (c)(1)(D), (e)(2), (f)(3)(A), (i)(4)(B), 
     and (j) of section 220.
       (C) Section 4973(d).
       (D) Subsections (b) and (d)(1) of section 4980E.
       (E) Section 6693(a)(2)(B).
       (3) Paragraph (1) of section 220(d) is amended by inserting 
     ``as a medical savings account'' after ``United States''.
       (4) The heading for section 220(d) is amended by striking 
     ``Medical Savings Account'' and inserting ``Archer MSA''.
       (5) The headings for sections 220(d)(1) and 3231(e)(10) are 
     each amended by striking ``Medical savings account'' and 
     inserting ``Archer msa''.
       (6) The headings for sections 106(b), 138(f), 220(i), and 
     4973(d) are each amended by striking ``Medical Savings 
     Accounts'' and inserting ``Archer MSAs''.
       (7) The headings for section 220(c)(1)(C) and 4975(c)(4) 
     are each amended by striking ``medical savings accounts'' and 
     inserting ``archer msas''.
       (8) The section heading for section 220 is amended to read 
     as follows:

     ``SEC. 220. ARCHER MSAS.''

       (9) The item relating to section 220 in the table of 
     sections for part VII of subchapter B of chapter 1 is amended 
     to read as follows:

``Sec. 220. Archer MSAs.''
       (10) The provisions amended by the preceding provisions of 
     this section are further amended by striking ``a Archer'' 
     each place it appears and inserting ``an Archer''.
       (11) Section 220(e)(1) is further amended by striking ``A 
     Archer'' and inserting ``An Archer''.

           TITLE III--ADMINISTRATIVE AND TECHNICAL PROVISIONS

                 Subtitle A--Administrative Provisions

     SEC. 301. EXEMPTION OF CERTAIN REPORTING REQUIREMENTS.

       Section 3003(a)(1) of the Federal Reports Elimination and 
     Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to 
     any report required to be submitted under any of the 
     following provisions of law:
       (1) Section 13031(f) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(f)).
       (2) Section 16(c) of the Foreign Trade Zones Act (19 U.S.C. 
     81p(c)).
       (3) The following provisions of the Tariff Act of 1930:
       (A) Section 330(c)(1) (19 U.S.C. 1330(c)(1)).
       (B) Section 607(c) (19 U.S.C. 1607(c)).
       (4) Section 5 of the International Coffee Agreement Act of 
     1980 (19 U.S.C. 1356n).
       (5) Section 351(a)(2) of the Trade Expansion Act of 1962 
     (19 U.S.C. 1981(a)(2)).
       (6) Section 502 of the Automotive Products Trade Act of 
     1965 (19 U.S.C. 2032).
       (7) Section 3131 of the Customs Enforcement Act of 1986 (19 
     U.S.C. 2081).
       (8) The following provisions of the Trade Act of 1974 (19 
     U.S.C. 2101 et seq.):
       (A) Section 102(b)(4)(A)(ii)(I) (19 U.S.C. 
     2112(b)(4)(A)(ii)(I)).
       (B) Section 102(e)(1) (19 U.S.C. 2112(e)(1)).
       (C) Section 102(e)(2) (19 U.S.C. 2112(e)(2)).
       (D) Section 104(d) (19 U.S.C. 2114(d)).
       (E) Section 125(e) (19 U.S.C. 2135(e)).
       (F) Section 135(e)(1) (19 U.S.C. 2155(e)(1)).
       (G) Section 141(c) (19 U.S.C. 2171(c)).
       (H) Section 162 (19 U.S.C. 2212).
       (I) Section 163(b) (19 U.S.C. 2213(b)).
       (J) Section 163(c) (19 U.S.C. 2213(c)).
       (K) Section 203(b) (19 U.S.C. 2253(b)).
       (L) Section 302(b)(2)(C) (19 U.S.C. 2412(b)(2)(C)).
       (M) Section 303 (19 U.S.C. 2413).
       (N) Section 309 (19 U.S.C. 2419).
       (O) Section 407(a) (19 U.S.C. 2437(a)).
       (P) Section 502(f) (19 U.S.C. 2462(f)).
       (Q) Section 504 (19 U.S.C. 2464).
       (9) The following provisions of the Trade Agreements Act of 
     1979 (19 U.S.C. 2501 et seq.):
       (A) Section 2(b) (19 U.S.C. 2503(b)).
       (B) Section 3(c) (19 U.S.C. 2504(c)).
       (C) Section 305(c) (19 U.S.C. 2515(c)).
       (10) Section 303(g)(1) of the Convention on Cultural 
     Property Implementation Act (19 U.S.C. 2602(g)(1)).
       (11) The following provisions of the Caribbean Basin 
     Economic Recovery Act (19 U.S.C. 2701 et seq.):
       (A) Section 212(a)(1)(A) (19 U.S.C. 2702(a)(1)(A)).
       (B) Section 212(a)(2) (19 U.S.C. 2702(a)(2)).
       (12) The following provisions of the Omnibus Trade and 
     Competitiveness Act of 1988 (19 U.S.C. 2901 et seq.):
       (A) Section 1102 (19 U.S.C. 2902).
       (B) Section 1103 (19 U.S.C. 2903).
       (C) Section 1206(b) (19 U.S.C. 3006(b)).
       (13) Section 123(a) of the Customs and Trade Act of 1990 
     (Public Law 101-382) (19 U.S.C. 2083).
       (14) Section 243(b)(2) of the Caribbean Basin Economic 
     Recovery Expansion Act of 1990 (Public Law 101-382).
       (15) The following provisions of the Internal Revenue Code 
     of 1986:
       (A) Section 6103(p)(5).
       (B) Section 7608.
       (C) Section 7802(f)(3).
       (D) Section 8022(3).
       (E) Section 9602(a).
       (16) The following provisions relating to the revenue laws 
     of the United States:
       (A) Section 1552(c) of the Tax Reform Act of 1986 (100 
     Stat. 2753).
       (B) Section 231 of the Deficit Reduction Act of 1984 (26 
     U.S.C. 801 note).
       (C) Section 208 of the Tax Treatment Extension Act of 1977 
     (26 U.S.C. 911 note).
       (D) Section 7105 of the Technical and Miscellaneous Revenue 
     Act of 1988 (45 U.S.C. 369).
       (17) Section 4008 of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1308).
       (18) Section 426 of the Black Lung Benefits Act (30 U.S.C. 
     936(b)).
       (19) Section 7502(g) of title 31, United States Code.
       (20) The following provisions of the Social Security Act:
       (A) Section 215(i)(2)(C)(i) (42 U.S.C. 415(i)(2)(C)(i)).
       (B) Section 221(i)(2) (42 U.S.C. 421(i)(2)).
       (C) Section 221(i)(3) (42 U.S.C. 421(i)(3)).
       (D) Section 233(e)(1) (42 U.S.C. 433(e)(1)).
       (E) Section 452(a)(10) (42 U.S.C. 652(a)(10)).
       (F) Section 452(g)(3)(B) (42 U.S.C. 652(g)(3)(B)).
       (G) Section 506(a)(1) (42 U.S.C. 706(a)).
       (H) Section 908 (42 U.S.C. 1108).
       (I) Section 1114(f) (42 U.S.C. 1314(f)).
       (J) Section 1120 (42 U.S.C. 1320).
       (K) Section 1161 (42 U.S.C. 1320c-10).
       (L) Section 1875(b) (42 U.S.C. 1395ll(b)).
       (M) Section 1881 (42 U.S.C. 1395rr).
       (N) Section 1882 (42 U.S.C. 1395ss(f)(2)).
       (21) Section 104(b) of the Social Security Independence and 
     Program Improvements Act of 1994 (42 USC 904 note).
       (22) Section 10 of the Railroad Retirement Act of 1937 (45 
     U.S.C. 231f).
       (23) The following provisions of the Railroad Retirement 
     Act of 1974:
       (A) Section 22(a)(1) (45 U.S.C. 231u(a)(1)).
       (B) Section 22(b)(1) (45 U.S.C. 231u(b)(1)).
       (24) Section 502 of the Railroad Retirement Solvency Act of 
     1983 (45 U.S.C. 231f-1).
       (25) Section 47121(c) of title 49, United States Code.
       (26) The following provisions of the Omnibus Budget 
     Reconciliation Act of 1987 (Public Law 100-203; 101 Stat. 
     1330-182):
       (A) Section 4007(c)(4) (42 U.S.C. 1395ww note).
       (B) Section 4079 (42 U.S.C. 1395mm note).
       (C) Section 4205 (42 U.S.C. 1395i-3 note).
       (D) Section 4215 (42 U.S.C. 1396r note).
       (27) The following provisions of the Inspector General Act 
     of 1978 (Public Law 95-452):
       (A) Section 5(b).
       (B) Section 5(d).
       (28) The following provisions of the Public Health Service 
     Act:
       (A) In section 308(a) (42 U.S.C. 242m(a)), subparagraphs 
     (A), (B), (C), and (D) of paragraph (1).
       (B) Section 403 (42 U.S.C. 283).
       (29) Section 404 of the Health Services and Centers 
     Amendments of 1978 (42 U.S.C. 242p) (Public Law 95-626).
       (30) The following provisions of the Older Americans Act of 
     1965:
       (A) Section 206(d) (42 U.S.C. 3017(d)).
       (B) Section 207 (42 U.S.C. 3018).
       (31) Section 308 of the Age Discrimination Act of 1975 (42 
     U.S.C. 6106a(b)).
       (32) Section 509(c)(3) of the Americans with Disabilities 
     Act 0f 1990 (42 U.S.C. 12209(c)(3)).
       (33) Section 4207(f) of the Omnibus Budget Reconciliation 
     Act of 1990 (42 U.S.C. 1395b-1 note).

     SEC. 302. EXTENSION OF DEADLINES FOR IRS COMPLIANCE WITH 
                   CERTAIN NOTICE REQUIREMENTS.

       (a) Annual Installment Agreement Notice.--Section 3506 of 
     the Internal Revenue

[[Page 26979]]

     Service Restructuring and Reform Act of 1998 is amended by 
     striking ``July 1, 2000'' and inserting ``September 1, 
     2001''.
       (b) Notice Requirements Relating to Computation of 
     Penalty.--Subsection (c) of section 3306 of the Internal 
     Revenue Service Restructuring and Reform Act of 1998 is 
     amended--
       (1) by striking ``December 31, 2000'' and inserting ``June 
     30, 2001'', and
       (2) by adding at the end the following: ``In the case of 
     any notice of penalty issued after June 30, 2001, and before 
     July 1, 2003, the requirements of section 6751(a) of the 
     Internal Revenue Code of 1986 shall be treated as met if such 
     notice contains a telephone number at which the taxpayer can 
     request a copy of the taxpayer's assessment and payment 
     history with respect to such penalty.''.
       (c) Notice Requirements Relating to Interest Imposed.--
     Subsection (c) of section 3308 of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 is amended--
       (1) by striking ``December 31, 2000'' and inserting ``June 
     30, 2001'', and
       (2) by adding at the end the following: ``In the case of 
     any notice issued after June 30, 2001, and before July 1, 
     2003, to which section 6631 of the Internal Revenue Code of 
     1986 applies, the requirements of section 6631 of such Code 
     shall be treated as met if such notice contains a telephone 
     number at which the taxpayer can request a copy of the 
     taxpayer's payment history relating to interest amounts 
     included in such notice.''.

     SEC. 303. EXTENSION OF AUTHORITY FOR UNDERCOVER OPERATIONS.

       Paragraph (6), and the last sentence, of section 7608(c) 
     are each amended by striking ``January 1, 2001'' and 
     inserting ``January 1, 2006''.

     SEC. 304. CONFIDENTIALITY OF CERTAIN DOCUMENTS RELATING TO 
                   CLOSING AND SIMILAR AGREEMENTS AND TO 
                   AGREEMENTS WITH FOREIGN GOVERNMENTS.

       (a) Closing and Similar Agreements Treated As Return 
     Information.--Paragraph (2) of section 6103(b) (defining 
     return information) is amended by striking ``and'' at the end 
     of subparagraph (B), by inserting ``and'' at the end of 
     subparagraph (C), and by inserting after subparagraph (C) the 
     following new subparagraph:
       ``(D) any agreement under section 7121, and any similar 
     agreement, and any background information related to such an 
     agreement or request for such an agreement,''.
       (b) Agreements With Foreign Governments.--
       (1) In general.--Subchapter B of chapter 61 (relating to 
     miscellaneous provisions) is amended by inserting after 
     section 6104 the following new section:

     ``SEC. 6105. CONFIDENTIALITY OF INFORMATION ARISING UNDER 
                   TREATY OBLIGATIONS.

       ``(a) In General.--Tax convention information shall not be 
     disclosed.
       ``(b) Exceptions.--Subsection (a) shall not apply--
       ``(1) to the disclosure of tax convention information to 
     persons or authorities (including courts and administrative 
     bodies) which are entitled to such disclosure pursuant to a 
     tax convention,
       ``(2) to any generally applicable procedural rules 
     regarding applications for relief under a tax convention, or
       ``(3) in any case not described in paragraphs (1) or (2), 
     to the disclosure of any tax convention information not 
     relating to a particular taxpayer if the Secretary 
     determines, after consultation with each other party to the 
     tax convention, that such disclosure would not impair tax 
     administration.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Tax convention information.--The term `tax convention 
     information' means any--
       ``(A) agreement entered into with the competent authority 
     of one or more foreign governments pursuant to a tax 
     convention,
       ``(B) application for relief under a tax convention,
       ``(C) any background information related to such agreement 
     or application,
       ``(D) document implementing such agreement, and
       ``(E) any other information exchanged pursuant to a tax 
     convention which is treated as confidential or secret under 
     the tax convention.
       ``(2) Tax convention.--The term `tax convention' means--
       ``(A) any income tax or gift and estate tax convention, or
       ``(B) any other convention or bilateral agreement 
     (including multilateral conventions and agreements and any 
     agreement with a possession of the United States) providing 
     for the avoidance of double taxation, the prevention of 
     fiscal evasion, nondiscrimination with respect to taxes, the 
     exchange of tax relevant information with the United States, 
     or mutual assistance in tax matters.
       ``(d) Cross References.--

  ``For penalties for the unauthorized disclosure of tax convention 
information which is return or return information, see sections 7213, 
7213A, and 7431.''.

       (2) Clerical amendment.--The table of sections for 
     subchapter B of chapter 61 is amended by inserting after the 
     item relating to section 6104 the following new item:

``Sec. 6105. Confidentiality of information arising under treaty 
              obligations.''.

       (c) Exception From Public Inspection as Written 
     Determination.--
       (1) Closing and similar agreements.--Paragraph (1) of 
     section 6110(b) is amended to read as follows:
       ``(1) Written determination.--
       ``(A) In general.--The term `written determination' means a 
     ruling, determination letter, technical advice memorandum, or 
     Chief Counsel advice.
       ``(B) Exceptions.--Such term shall not include any matter 
     referred to in subparagraph (C) or (D) of section 
     6103(b)(2).''.
       (2) Agreements with foreign governments.--Paragraph (1) of 
     section 6110(l) is amended by inserting ``or 6105'' after 
     ``6104''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 305. INCREASE IN THRESHOLD FOR JOINT COMMITTEE REPORTS 
                   ON REFUNDS AND CREDITS.

       (a) General Rule.--Subsections (a) and (b) of section 6405 
     are each amended by striking ``$1,000,000'' and inserting 
     ``$2,000,000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of the enactment of this Act, 
     except that such amendment shall not apply with respect to 
     any refund or credit with respect to a report that has been 
     made before such date of the enactment under section 6405 of 
     the Internal Revenue Code of 1986.

     SEC. 306. TREATMENT OF MISSING CHILDREN WITH RESPECT TO 
                   CERTAIN TAX BENEFITS.

       (a) In General.--Subsection (c) of section 151 (relating to 
     additional exemption for dependents) is amended by adding at 
     the end the following new paragraph:
       ``(6) Treatment of missing children.--
       ``(A) In general.--Solely for the purposes referred to in 
     subparagraph (B), a child of the taxpayer--
       ``(i) who is presumed by law enforcement authorities to 
     have been kidnapped by someone who is not a member of the 
     family of such child or the taxpayer, and
       ``(ii) who was (without regard to this paragraph) the 
     dependent of the taxpayer for the portion of the taxable year 
     before the date of the kidnapping,
     shall be treated as a dependent of the taxpayer for all 
     taxable years ending during the period that the child is 
     kidnapped.
       ``(B) Purposes.--Subparagraph (A) shall apply solely for 
     purposes of determining--
       ``(i) the deduction under this section,
       ``(ii) the credit under section 24 (relating to child tax 
     credit), and
       ``(iii) whether an individual is a surviving spouse or a 
     head of a household (such terms are defined in section 2).
       ``(C) Comparable treatment for earned income credit.--For 
     purposes of section 32, an individual--
       ``(i) who is presumed by law enforcement authorities to 
     have been kidnapped by someone who is not a member of the 
     family of such individual or the taxpayer, and
       ``(ii) who had, for the taxable year in which the 
     kidnapping occurred, the same principal place of abode as the 
     taxpayer for more than one-half of the portion of such year 
     before the date of the kidnapping, shall be treated as 
     meeting the requirement of section 32(c)(3)(A)(ii) with 
     respect to a taxpayer for all taxable years ending during the 
     period that the individual is kidnapped.
       ``(D) Termination of treatment.--Subparagraphs (A) and (C) 
     shall cease to apply as of the first taxable year of the 
     taxpayer beginning after the calendar year in which there is 
     a determination that the child is dead (or, if earlier, in 
     which the child would have attained age 18).''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

     SEC. 307. AMENDMENTS TO STATUTES REFERENCING YIELD ON 52-WEEK 
                   TREASURY BILLS.

       (a) Amendment to the Act of February 26, 1931.--Section 6 
     of the Act of February 26, 1931 (40 U.S.C. 258e-1) (relating 
     to the interest rate on compensation owed for takings of 
     property) is amended--
       (1) in paragraph (1), by striking ``the coupon issue yield 
     equivalent (as determined by the Secretary of the Treasury) 
     of the average accepted auction price for the last auction of 
     52 week United States Treasury bills settled immediately 
     before'' and inserting ``the weekly average 1-year constant 
     maturity Treasury yield, as published by the Board of 
     Governors of the Federal Reserve System, for the calendar 
     week preceding''; and
       (2) in paragraph (2), by striking ``the coupon issue yield 
     equivalent (as determined by the Secretary of the Treasury) 
     of the average accepted auction price for the last auction of 
     52 week United States Treasury bills settled immediately 
     before'' and inserting ``the weekly average 1-year constant 
     maturity Treasury yield, as published by the Board of 
     Governors of the Federal Reserve System, for the calendar 
     week preceding''.
       (b) Amendment to Title 18, United States Code.--Section 
     3612(f)(2)(B) of title 18, United States Code (relating to 
     the interest rate on unpaid criminal fines and penalties of 
     more than $2,500) is amended by striking ``the coupon issue 
     yield equivalent (as determined by the Secretary of the 
     Treasury) of the average accepted auction price for the last 
     auction of fifty-two week United States Treasury bills 
     settled before'' and inserting `the weekly average 1-year 
     constant maturity Treasury yield, as published by the Board 
     of Governors of the Federal Reserve System, for the calendar 
     week preceding.''.

[[Page 26980]]

       (c) Amendment to the Internal Revenue Code.--Section 
     995(f)(4) (relating to the interest rate on tax-deferred 
     liability of shareholders of domestic international sales 
     corporations) is amended by striking ``the average investment 
     yield of United States Treasury bills with maturities of 52 
     weeks which were auctioned during the 1-year period'' and 
     inserting ``the average of the 1-year constant maturity 
     Treasury yields, as published by the Board of Governors of 
     the Federal Reserve System, for the 1-year period''.
       (d) Amendments to Title 28, United States Code.--
       (1) Amendment to section 1961.--Section 1961(a) of title 
     28, United States Code (relating to the interest rate on 
     money judgments in civil cases recovered in Federal district 
     court) is amended by striking ``the coupon issue yield 
     equivalent (as determined by the Secretary of the Treasury) 
     of the average accepted auction price for the last auction of 
     fifty-two week United States Treasury bills settled 
     immediately prior to'' and inserting ``the weekly average 1-
     year constant maturity Treasury yield, as published by the 
     Board of Governors of the Federal Reserve System, for the 
     calendar week preceding.''.
       (2) Amendment to section 2516.--Section 2516(b) of title 
     28, United States Code (relating to the interest rate on a 
     judgment against the United States affirmed by the Supreme 
     Court after review on petition of the United States) is 
     amended by striking ``the coupon issue yield equivalent (as 
     determined by the Secretary of the Treasury) of the average 
     accepted auction price for the last auction of fifty-two week 
     United States Treasury bills settled immediately before'' and 
     inserting ``the weekly average 1-year constant maturity 
     Treasury yield, as published by the Board of Governors of the 
     Federal Reserve System, for the calendar week preceding''.

     SEC. 308. ADJUSTMENTS FOR CONSUMER PRICE INDEX ERROR.

       (a) Determinations by OMB.--As soon as practicable after 
     the date of the enactment of this Act, the Director of the 
     Office of Management and Budget shall determine with respect 
     to each applicable Federal benefit program whether the CPI 
     computation error for 1999 has or will result in a shortfall 
     in payments to beneficiaries under such program (as compared 
     to payments that would have been made if the error had not 
     occurred). As soon as practicable after the date of the 
     enactment of this Act, but not later than 60 days after such 
     date, the Director shall direct the head of the Federal 
     agency which administers such program to make a payment or 
     payments that, insofar as the Director finds practicable and 
     feasible--
       (1) are targeted to the amount of the shortfall experienced 
     by individual beneficiaries, and
       (2) compensate for the shortfall.
       (b) Coordination with Federal Agencies.--As soon as 
     practicable after the date of the enactment of this Act, each 
     Federal agency that administers an applicable Federal benefit 
     program shall, in accordance with such guidelines as are 
     issued by the Director pursuant to this section, make an 
     initial determination of whether, and the extent to which, 
     the CPI computation error for 1999 has or will result in a 
     shortfall in payments to beneficiaries of an applicable 
     Federal benefit program administered by such agency. Not 
     later than 30 days after such date, the head of such agency 
     shall submit a report to the Director and to each House of 
     the Congress of such determination, together with a complete 
     description of the nature of the shortfall.
       (c) Implementation Pursuant to Agency Reports.--Upon 
     receipt of the report submitted by a Federal agency pursuant 
     to subsection (b), the Director shall review the initial 
     determination of the agency, the agency's description of the 
     nature of the shortfall, and the compensation payments 
     proposed by the agency. Prior to directing payment of such 
     payments pursuant to subsection (a), the Director shall make 
     appropriate adjustments (if any) in the compensation payments 
     proposed by the agency that the Director determines are 
     necessary to comply with the requirements of subsection (a) 
     and transmit to the agency a summary report of the review, 
     indicating any adjustments made by the Director. The agency 
     shall make the compensation payments as directed by the 
     Director pursuant to subsection (a) in accordance with the 
     Director's summary report.
       (d) Income Disregard Under Federal Means-Tested Benefit 
     Programs.--A payment made under this section to compensate 
     for a shortfall in benefits shall, in accordance with 
     guidelines issued by the Director pursuant to this section, 
     be disregarded in determining income under title VIII of the 
     Social Security Act or any applicable Federal benefit program 
     that is means-tested.
       (e) Funding.--Funds otherwise available under each 
     applicable Federal benefit program for making benefit 
     payments under such program are hereby made available for 
     making compensation payments under this section in connection 
     with such program.
       (f) No Judicial Review.--No action taken pursuant to this 
     section shall be subject to judicial review.
       (g) Director's Report.--Not later than April 1, 2001, the 
     Director shall submit to each House of the Congress a report 
     on the activities performed by the Director pursuant to this 
     section.
       (h) Definitions.--For purposes of this section:
       (1) Applicable federal benefit program.--The term 
     ``applicable Federal benefit program'' means any program of 
     the Government of the United States providing for regular or 
     periodic payments or cash assistance paid directly to 
     individual beneficiaries, as determined by the Director of 
     the Office of Management and Budget.
       (2) Federal agency.--The term ``Federal agency'' means a 
     department, agency, or instrumentality of the Government of 
     the United States.
       (3) CPI computation error for 1999.--The term ``CPI 
     computation error for 1999'' means the error in the 
     computation of the Consumer Price Index announced by the 
     Bureau of Labor Statistics on September 28, 2000.
       (i) Tax Provisions.--In the case of taxable years (and 
     other periods) beginning after December 31, 2000, if any 
     Consumer Price Index (as defined in section 1(f)(5) of the 
     Internal Revenue Code of 1986) reflects the CPI computation 
     error for 1999--
       (1) the correct amount of such Index shall (in such manner 
     and to such extent as the Secretary of the Treasury 
     determines to be appropriate) be taken into account for 
     purposes of such Code, and
       (2) tables prescribed under section 1(f) of such Code to 
     reflect such correct amount shall apply in lieu of any tables 
     that were prescribed based on the erroneous amount.

     SEC. 309. PREVENTION OF DUPLICATION OF LOSS THROUGH 
                   ASSUMPTION OF LIABILITIES GIVING RISE TO A 
                   DEDUCTION.

       (a) In General.--Section 358 (relating to basis to 
     distributees) is amended by adding at the end the following 
     new subsection:
       ``(h) Special Rules for Assumption of Liabilities To Which 
     Subsection (d) Does Not Apply.--
       ``(1) In general.--If, after application of the other 
     provisions of this section to an exchange or series of 
     exchanges, the basis of property to which subsection (a)(1) 
     applies exceeds the fair market value of such property, then 
     such basis shall be reduced (but not below such fair market 
     value) by the amount (determined as of the date of the 
     exchange) of any liability--
       ``(A) which is assumed in exchange for such property, and
       ``(B) with respect to which subsection (d)(1) does not 
     apply to the assumption.
       ``(2) Exceptions.--Except as provided by the Secretary, 
     paragraph (1) shall not apply to any liability if--
       ``(A) the trade or business with which the liability is 
     associated is transferred to the person assuming the 
     liability as part of the exchange, or
       ``(B) substantially all of the assets with which the 
     liability is associated are transferred to the person 
     assuming the liability as part of the exchange.
       ``(3) Liability.--For purposes of this subsection, the term 
     `liability' shall include any fixed or contingent obligation 
     to make payment, without regard to whether the obligation is 
     otherwise taken into account for purposes of this title.''
       (b) Determination of Amount of Liability Assumed.--Section 
     357(d)(1) is amended by inserting ``section 358(h),'' after 
     ``section 358(d),''.
       (c) Application of Comparable Rules to Partnerships and S 
     Corporations.--The Secretary of the Treasury or his 
     delegate--
       (1) shall prescribe rules which provide appropriate 
     adjustments under subchapter K of chapter 1 of the Internal 
     Revenue Code of 1986 to prevent the acceleration or 
     duplication of losses through the assumption of (or transfer 
     of assets subject to) liabilities described in section 
     358(h)(3) of such Code (as added by subsection (a)) in 
     transactions involving partnerships, and
       (2) may prescribe rules which provide appropriate 
     adjustments under subchapter S of chapter 1 of such Code in 
     transactions described in paragraph (1) involving S 
     corporations rather than partnerships.
       (d) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to assumptions of liability after October 18, 1999.
       (2) Rules.--The rules prescribed under subsection (c) shall 
     apply to assumptions of liability after October 18, 1999, or 
     such later date as may be prescribed in such rules.

     SEC. 310. DISCLOSURE OF CERTAIN INFORMATION TO CONGRESSIONAL 
                   BUDGET OFFICE.

       (a) Disclosure of Certain Tax Information.--
       (1) In general.--Subsection (j) of section 6103 (relating 
     to statistical use) is amended by adding at the end the 
     following new paragraph:
       ``(6) Congressional budget office.--Upon written request by 
     the Director of the Congressional Budget Office, the 
     Secretary shall furnish to officers and employees of the 
     Congressional Budget Office return information for the 
     purpose of, but only to the extent necessary for, long-term 
     models of the social security and medicare programs.''
       (2) Recordkeeping safeguards.--Section 6103(p) is amended--
       (A) in paragraph (4)--
       (i) in the matter preceding subparagraph (A), by inserting 
     ``the Congressional Budget Office,'' after ``General 
     Accounting Office,'',
       (ii) in subparagraph (E), by striking ``commission or the 
     General Accounting Office'' and inserting ``commission, the 
     General Accounting Office, or the Congressional Budget 
     Office'',
       (iii) in subparagraph (F)(ii), by striking ``or the General 
     Accounting Office,'' and inserting ``the General Accounting 
     Office, or the Congressional Budget Office,'', and
       (iv) in the matter following subparagraph (F), by inserting 
     ``or the Congressional Budget Office'' after ``General 
     Accounting Office'' both places it appears,

[[Page 26981]]

       (B) in paragraph (5), by striking ``commissions and the 
     General Accounting Office'' and inserting ``commissions, the 
     General Accounting Office, and the Congressional Budget 
     Office'', and
       (C) in paragraph (6)(A), by inserting ``and the 
     Congressional Budget Office'' after ``commissions''.
       (b) Confidentiality of Records.--
       (1) In general.--Section 203 of the Congressional Budget 
     Act of 1974 (2 U.S.C. 603) is amended by adding at the end 
     the following:
       ``(e) Level of Confidentiality.--With respect to 
     information, data, estimates, and statistics obtained under 
     sections 201(d) and 201(e), the Director shall maintain the 
     same level of confidentiality as is required by law of the 
     department, agency, establishment, or regulatory agency or 
     commission from which it is obtained. Officers and employees 
     of the Congressional Budget Office shall be subject to the 
     same statutory penalties for unauthorized disclosure or use 
     as officers or employees of the department, agency, 
     establishment, or regulatory agency or commission from which 
     it is obtained.''.
       (2) Conforming amendment.--Subsection (a) of section 203 of 
     such Act is amended by striking ``subsections (c) and (d)'' 
     and inserting ``subsections (c), (d), and (e)''.

                   Subtitle B--Technical Corrections

     SEC. 311. AMENDMENTS RELATED TO TICKET TO WORK AND WORK 
                   INCENTIVES IMPROVEMENT ACT OF 1999.

       (a) Amendments Related to Section 502 of the Act.--
       (1) Section 280C(c)(1) is amended by striking ``or credit'' 
     after ``deduction'' each place it appears.
       (2) Section 30A is amended by redesignating subsections (f) 
     and (g) as subsections (g) and (h), respectively, and by 
     inserting after subsection (e) the following new subsection:
       ``(f) Denial of Double Benefit.--Any wages or other 
     expenses taken into account in determining the credit under 
     this section may not be taken into account in determining the 
     credit under section 41.''
       (b) Amendment Related to Section 545 of the Act.--Clause 
     (ii) of section 857(b)(7)(B) is amended to read as follows:
       ``(ii) Exception for certain amounts.--Clause (i) shall not 
     apply to amounts received directly or indirectly by a real 
     estate investment trust--
       ``(I) for services furnished or rendered by a taxable REIT 
     subsidiary that are described in paragraph (1)(B) of section 
     856(d), or
       ``(II) from a taxable REIT subsidiary that are described in 
     paragraph (7)(C)(ii) of such section.''
       (c) Clarification Related to Section 538 of the Act.--The 
     reference to section 332(b)(1) of the Internal Revenue Code 
     of 1986 in Treasury Regulation section 1.1502-34 shall be 
     deemed to include a reference to section 732(f) of such Code.
       (d) Effective Date.--Subsection (c) and the amendments made 
     by this section shall take effect as if included in the 
     provisions of the Ticket to Work and Work Incentives 
     Improvement Act of 1999 to which they relate.

     SEC. 312. AMENDMENTS RELATED TO TAX AND TRADE RELIEF 
                   EXTENSION ACT OF 1998.

       (a) Amendment Related to Section 1004(b) of the Act.--
     Subsection (d) of section 6104 is amended by adding at the 
     end the following new paragraph:
       ``(6) Application to nonexempt charitable trusts and 
     nonexempt private foundations.--The organizations referred to 
     in paragraphs (1) and (2) of section 6033(d) shall comply 
     with the requirements of this subsection relating to annual 
     returns filed under section 6033 in the same manner as the 
     organizations referred to in paragraph (1).''.
       (b) Amendment Related to Section 4003 of the Act.--
     Subsection (b) of section 4003 of the Tax and Trade Relief 
     Extension Act of 1998 is amended by inserting 
     ``(7)(A)(i)(II),'' after ``(5)(A)(ii)(I),''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the Tax 
     and Trade Relief Extension Act of 1998 to which they relate.

     SEC. 313. AMENDMENTS RELATED TO INTERNAL REVENUE SERVICE 
                   RESTRUCTURING AND REFORM ACT OF 1998.

       (a) Amendments Related to Innocent Spouse Relief.--
       (1) Election may be made any time after deficiency 
     asserted.--Subparagraph (B) of section 6015(c)(3) is amended 
     by striking ``shall be made'' and inserting ``may be made at 
     any time after a deficiency for such year is asserted but''.
       (2) Clarification regarding disallowance of refunds and 
     credits under section 6015(c).--
       (A) In general.--Section 6015 is amended by redesignating 
     subsection (g) as subsection (h) and by inserting after 
     subsection (f) the following new subsection:
       ``(g) Credits and Refunds.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), notwithstanding any other law or rule of law (other than 
     section 6511, 6512(b), 7121, or 7122), credit or refund shall 
     be allowed or made to the extent attributable to the 
     application of this section.
       ``(2) Res judicata.--In the case of any election under 
     subsection (b) or (c), if a decision of a court in any prior 
     proceeding for the same taxable year has become final, such 
     decision shall be conclusive except with respect to the 
     qualification of the individual for relief which was not an 
     issue in such proceeding. The exception contained in the 
     preceding sentence shall not apply if the court determines 
     that the individual participated meaningfully in such prior 
     proceeding.
       ``(3) Credit and refund not allowed under subsection (c).--
     No credit or refund shall be allowed as a result of an 
     election under subsection (c).''.
       (B) Conforming amendment.--Paragraph (3) of section 6015(e) 
     is amended to read as follows:
       ``(3) Limitation on tax court jurisdiction.--If a suit for 
     refund is begun by either individual filing the joint return 
     pursuant to section 6532--
       ``(A) the Tax Court shall lose jurisdiction of the 
     individual's action under this section to whatever extent 
     jurisdiction is acquired by the district court or the United 
     States Court of Federal Claims over the taxable years that 
     are the subject of the suit for refund, and
       ``(B) the court acquiring jurisdiction shall have 
     jurisdiction over the petition filed under this 
     subsection.''.
       (3) Clarifications regarding review by tax court.--
       (A) Paragraph (1) of section 6015(e) is amended in the 
     matter preceding subparagraph (A) by inserting after 
     ``individual'' the following: ``against whom a deficiency has 
     been asserted and''.
       (B) Subparagraph (A) of section 6015(e)(1) is amended to 
     read as follows:
       ``(A) In general.--In addition to any other remedy provided 
     by law, the individual may petition the Tax Court (and the 
     Tax Court shall have jurisdiction) to determine the 
     appropriate relief available to the individual under this 
     section if such petition is filed--
       ``(i) at any time after the earlier of--

       ``(I) the date the Secretary mails, by certified or 
     registered mail to the taxpayer's last known address, notice 
     of the Secretary's final determination of relief available to 
     the individual, or
       ``(II) the date which is 6 months after the date such 
     election is filed with the Secretary, and

       ``(ii) not later than the close of the 90th day after the 
     date described in clause (i)(I).''.
       (C) Subparagraph (B)(i) of section 6015(e)(1) is amended--
       (i) by striking ``until the expiration of the 90-day period 
     described in subparagraph (A)'' and inserting ``until the 
     close of the 90th day referred to in subparagraph (A)(ii)'', 
     and
       (ii) by inserting ``under subparagraph (A)'' after ``filed 
     with the Tax Court''.
       (D)(i) Subsection (e) of section 6015 is amended by adding 
     at the end the following new paragraph:
       ``(5) Waiver.--An individual who elects the application of 
     subsection (b) or (c) (and who agrees with the Secretary's 
     determination of relief) may waive in writing at any time the 
     restrictions in paragraph (1)(B) with respect to collection 
     of the outstanding assessment (whether or not a notice of the 
     Secretary's final determination of relief has been 
     mailed).''.
       (ii) Paragraph (2) of section 6015(e) is amended to read as 
     follows:
       ``(2) Suspension of running of period of limitations.--The 
     running of the period of limitations in section 6502 on the 
     collection of the assessment to which the petition under 
     paragraph (1)(A) relates shall be suspended--
       ``(A) for the period during which the Secretary is 
     prohibited by paragraph (1)(B) from collecting by levy or a 
     proceeding in court and for 60 days thereafter, and
       ``(B) if a waiver under paragraph (5) is made, from the 
     date the claim for relief was filed until 60 days after the 
     waiver is filed with the Secretary.''.
       (b) Amendments Related to Procedure and Administration.--
       (1) Disputes involving $50,000 or less.--Section 7463 is 
     amended by adding at the end the following new subsection:
       ``(f) Additional Cases in Which Proceedings May Be 
     Conducted Under This Section.--At the option of the taxpayer 
     concurred in by the Tax Court or a division thereof before 
     the hearing of the case, proceedings may be conducted under 
     this section (in the same manner as a case described in 
     subsection (a)) in the case of--
       ``(1) a petition to the Tax Court under section 6015(e) in 
     which the amount of relief sought does not exceed $50,000, 
     and
       ``(2) an appeal under section 6330(d)(1)(A) to the Tax 
     Court of a determination in which the unpaid tax does not 
     exceed $50,000.''.
       (2) Authority to enjoin collection actions.--
       (A) Section 6330(e)(1) is amended by adding at the end the 
     following: ``Notwithstanding the provisions of section 
     7421(a), the beginning of a levy or proceeding during the 
     time the suspension under this paragraph is in force may be 
     enjoined by a proceeding in the proper court, including the 
     Tax Court. The Tax Court shall have no jurisdiction under 
     this paragraph to enjoin any action or proceeding unless a 
     timely appeal has been filed under subsection (d)(1) and then 
     only in respect of the unpaid tax or proposed levy to which 
     the determination being appealed relates.''.
       (B) Section 7421(a) is amended by inserting ``6330(e)(1),'' 
     after ``6246(b),''.
       (3) Clarification.--Paragraph (3) of section 6331(k) is 
     amended by striking ``(3), (4), and (5)'' and inserting ``(3) 
     and (4)''.
       (c) Amendment Related to Section 1103 of the Act.--
     Paragraph (6) of section 6103(k) is amended--
       (1) by inserting ``and an officer or employee of the Office 
     of Treasury Inspector General for Tax Administration'' after 
     ``internal revenue officer or employee'', and

[[Page 26982]]

       (2) by striking ``internal revenue'' in the heading and 
     inserting ``certain''.
       (d) Amendment Related to Section 3401 of the Act.--Section 
     6330(d)(1)(A) is amended by striking ``to hear'' and 
     inserting ``with respect to''.
       (e) Amendment Related to Section 3509 of the Act.--
     Subparagraph (A) of section 6110(g)(5) is amended by 
     inserting ``, any Chief Counsel advice,'' after ``technical 
     advice memorandum''.
       (f) Effective Dates.--The amendments made by subsections 
     (a) and (b) shall take effect on the date of the enactment of 
     this Act. The amendments made by subsections (c), (d), and 
     (e) shall take effect as if included in the provisions of the 
     Internal Revenue Service Restructuring and Reform Act of 1998 
     to which they relate.

     SEC. 314. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.

       (a) Amendment Related to Section 101 of the Act.--Paragraph 
     (4) of section 6211(b) is amended by striking ``sections 32 
     and 34'' and inserting ``sections 24(d), 32, and 34''.
       (b) Amendment Related to Section 302 of the Act.--The last 
     sentence of section 3405(e)(1)(B) is amended by inserting 
     ``(other than a Roth IRA)'' after ``individual retirement 
     plan''.
       (c) Amendment to Section 311 of the Act.--Paragraph (3) of 
     section 311(e) of the Taxpayer Relief Act of 1997 (relating 
     to election to recognize gain on assets held on January 1, 
     2001) is amended by adding at the end the following new 
     sentence: ``Such an election shall not apply to any asset 
     which is disposed of (in a transaction in which gain or loss 
     is recognized in whole or in part) before the close of the 1-
     year period beginning on the date that the asset would have 
     been treated as sold under such election.''
       (d) Amendment Related to Section 402 of the Act.--The flush 
     sentence at the end of clause (ii) of section 56(a)(1)(A) is 
     amended by inserting before ``or to any other property'' the 
     following: ``(and the straight line method shall be used for 
     such 1250 property)''.
       (e) Amendments Related to Section  1072 of the Act.--
       (1) Clause (ii) of section 415(c)(3)(D) and subparagraph 
     (B) of section 403(b)(3) are each amended by striking 
     ``section 125 or'' and inserting ``section 125, 132(f)(4), 
     or''.
       (2) Paragraph (2) of section 414(s) is amended by striking 
     ``section 125, 402(e)(3)'' and inserting ``section 125, 
     132(f)(4), 402(e)(3)''.
       (f) Amendment Related to Section  1454 of the Act.--
     Subsection (a) of section 7436 is amended by inserting before 
     the period at the end of the first sentence ``and the proper 
     amount of employment tax under such determination''.
       (g) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     Taxpayer Relief of 1997 to which they relate.

     SEC. 315. AMENDMENTS RELATED TO BALANCED BUDGET ACT OF 1997.

       (a) Amendments Related to Section  9302 of the Act.--
       (1) Paragraph (1) of section 9302(j) of the Balanced Budget 
     Act of 1997 is amended by striking ``tobacco products and 
     cigarette papers and tubes'' and inserting ``cigarettes''.
       (2)(A) Subsection (h) of section 5702 is amended to read as 
     follows:
       ``(h) Manufacturer of Cigarette Papers and Tubes.--
     `Manufacturer of cigarette papers and tubes' means any person 
     who manufactures cigarette paper, or makes up cigarette paper 
     into tubes, except for his own personal use or consumption.''
       (B) Section 5702, as amended by subparagraph (A), is 
     amended by striking subsection (f) and by redesignating 
     subsections (g) through (p) as subsections (f) through (o), 
     respectively.
       (3) Subsection (c) of section 5761 is amended by adding at 
     the end the following: ``This subsection and section 5754 
     shall not apply to any person who relands or receives tobacco 
     products in the quantity allowed entry free of tax and duty 
     under chapter 98 of the Harmonized Tariff Schedule of the 
     United States, and such person may voluntarily relinquish to 
     the Secretary at the time of entry any excess of such 
     quantity without incurring the penalty under this subsection. 
     No quantity of tobacco products other than the quantity 
     referred to in the preceding sentence may be relanded or 
     received as a personal use quantity.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 9302 of the 
     Balanced Budget Act of 1997.

     SEC. 316. AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTECTION 
                   ACT OF 1996.

       (a) Amendment Related to Section 1201 of the Act.--
     Subparagraph (B) of section 51(d)(2) is amended--
       (1) by striking ``plan approved'' and inserting ``program 
     funded'', and
       (2) by striking ``(relating to assistance for needy 
     families with minor children)''.
       (b) Amendment Related to Section 1302 of the Act.--Clause 
     (i) of section 1361(e)(1)(A) is amended by striking ``or'' 
     before ``(III)'' and by adding at the end the following: ``or 
     (IV) an organization described in section 170(c)(1) which 
     holds a contingent interest in such trust and is not a 
     potential current beneficiary,''.
       (c) Amendment Related to Section 1401 of the Act.--Clause 
     (ii) of section 401(k)(10)(B) is amended by adding at the end 
     the following new sentence: ``Such term includes a 
     distribution of an annuity contract from--

       ``(I) a trust which forms a part of a plan described in 
     section 401(a) and which is exempt from tax under section 
     501(a), or
       ``(II) an annuity plan described in section 403(a).''.

       (d) Amendment Related to Section 1427 of the Act.--Clause 
     (ii) of section 219(c)(1)(B) is amended by striking ``and'' 
     at the end of subclause (I), by redesignating subclause (II) 
     as subclause (III), and by inserting after subclause (I) the 
     following new subclause:

       ``(II) the amount of any designated nondeductible 
     contribution (as defined in section 408(o)) on behalf of such 
     spouse for such taxable year, and''.

       (e) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     Small Business Job Protection Act of 1996 to which they 
     relate.

     SEC. 317. AMENDMENT RELATED TO REVENUE RECONCILIATION ACT OF 
                   1990.

       (a) Amendment Related to Section 11511 of the Act.--
     Subparagraph (C) of section 43(c)(1) is amended--
       (1) by inserting ``(as defined in section 193(b))'' after 
     ``expenses'', and
       (2) by striking ``under section 193''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 11511 of the 
     Revenue Reconciliation Act of 1990.

     SEC. 318. OTHER TECHNICAL CORRECTIONS.

       (a) Modified Endowment Contracts.--
       (1) Paragraph (2) of section 7702A(a) is amended by 
     inserting ``or this paragraph'' before the period.
       (2) Clause (ii) of section 7702A(c)(3)(A) is amended by 
     striking ``under the contract'' and inserting ``under the old 
     contract''.
       (3) The amendments made by this subsection shall take 
     effect as if included in the amendments made by section 5012 
     of the Technical and Miscellaneous Revenue Act of 1988.
       (b) Affiliated Corporations in Context of Worthless 
     Securities.--
       (1) Subparagraph (A) of section 165(g)(3) is amended to 
     read as follows:
       ``(A) the taxpayer owns directly stock in such corporation 
     meeting the requirements of section 1504(a)(2), and''.
       (2) Paragraph (3) of section 165(g) is amended by striking 
     the last sentence.
       (3) The amendments made by this subsection shall apply to 
     taxable years beginning after December 31, 1984.
       (c) Certain Annuities Issued by Tax-Exempt Organizations 
     Not Treated as Debt Instruments under Original Issue Discount 
     Rules.--
       (1) Clause (ii) of section 1275(a)(1)(B) is amended by 
     striking ``subchapter L'' and inserting ``subchapter L (or by 
     an entity described in section 501(c) and exempt from tax 
     under section 501(a) which would be subject to tax under 
     subchapter L were it not so exempt)''.
       (2) The amendment made by this subsection shall take effect 
     as if included in the amendments made by section 41 of the 
     Tax Reform Act of 1984.
       (d) Tentative Carryback Adjustments of Losses From Section 
     1256 Contracts.--
       (1) Subsection (a) of section 6411 is amended by striking 
     ``section 1212(a)(1)'' and inserting ``subsection (a)(1) or 
     (c) of section 1212''.
       (2) The amendment made by paragraph (1) shall take effect 
     as if included in the amendments made by section 504 of the 
     Economic Recovery Tax Act of 1981.
       (e) Correction of Calculation of Amounts to be Deposited in 
     Highway Trust Fund.--
       (1) Subsection (b) of section 9503 is amended by striking 
     paragraph (5) and redesignating paragraph (6) as paragraph 
     (5).
       (2) The amendment made by paragraph (1) shall apply with 
     respect to taxes received in the Treasury after the date of 
     the enactment of this Act.
       (f) Expenditures From Vaccine Injury Compensation Trust 
     Fund.--Section 9510(c)(1)(A) is amended by striking 
     ``December 31, 1999'' and inserting ``October 18, 2000''.

     SEC. 319. CLERICAL CHANGES.

       (1) Clause (i) of section 45(d)(7)(A) is amended by 
     striking ``paragraph (3)(A)'' and inserting ``subsection 
     (c)(3)(A)''.
       (2) Subsection (f) of section 67 is amended by striking 
     ``the last sentence'' and inserting ``the second sentence''.
       (3) The heading for paragraph (5) of section 408(d) is 
     amended to read as follows:
       ``(5) Distributions of excess contributions after due date 
     for taxable year and certain excess rollover contributions.--
     ''.
       (4) Paragraph (3) of section 475(g) is amended by striking 
     ``267(b) of'' and inserting ``267(b) or''.
       (5) The heading for subparagraph (B) of section 529(e)(3) 
     is amended by striking ``under guaranteed plans''.
       (6) Clause (iii) of section 530(d)(4)(B) is amended by 
     striking ``; or'' at the end and inserting ``, or''.
       (7) Paragraphs (1)(C) and (2)(C) of section 664(d) are each 
     amended by striking the period after ``subsection (g))''.
       (8)(A) Subsection (e) of section 678 is amended by striking 
     ``an electing small business corporation'' and inserting ``an 
     S corporation''.
       (B) Clause (v) of section 6103(e)(1)(D) is amended to read 
     as follows:
       ``(v) if the corporation was an S corporation, any person 
     who was a shareholder during any part of the period covered 
     by such return during which an election under section 1362(a) 
     was in effect, or''.
       (9) Paragraph (7) of section 856(c) is amended by striking 
     ``paragraph (4)(B)(ii)(III)'' and inserting ``paragraph 
     (4)(B)(iii)(III)''

[[Page 26983]]

       (10) Subparagraph (A) of section 856(l)(4) is amended by 
     striking ``paragraph (9)(D)(ii)'' and inserting ``subsection 
     (d)(9)(D)(ii)''.
       (11) Subparagraph (B) of section 871(f)(2) is amended by 
     striking ``19 U.S.C.'' and inserting ``(19 U.S.C.''.
       (12) Subparagraph (B) of section 995(b)(3) is amended by 
     striking ``the Military Security Act of 1954 (22 U.S.C. 
     1934)'' and inserting ``section 38 of the International 
     Security Assistance and Arms Export Control Act of 1976 (22 
     U.S.C. 2778)''.
       (13) Section 1391(g)(3)(C) is amended by striking 
     ``paragraph (1)(B)'' and inserting ``paragraph (1)''.
       (14)(A) Paragraph (2) of section 2035(c) is amended by 
     striking ``paragraph (1)'' and inserting ``subsection (a)''.
       (B) Subsection (d) of section 2035 is amended by inserting 
     ``and paragraph (1) of subsection (c)'' after ``Subsection 
     (a)''.
       (15) Paragraph (5) of section 3121(a) is amended by 
     striking the semicolon at the end of subparagraph (G) and 
     inserting a comma.
       (16) Subparagraph (B) of section 4946(c)(3) is amended by 
     striking ``the lowest rate of compensation prescribed for GS-
     16 of the General Schedule under section 5332'' and inserting 
     ``the lowest rate of basic pay for the Senior Executive 
     Service under section 5382''.
       (17) Subsection (p) of section 6103 is amended--
       (A) in paragraph (4), in the matter preceding subparagraph 
     (A)--
       (i) by striking the second comma after ``(13)'', and
       (ii) by striking ``(7)'' and all that follows through 
     ``shall, as a condition'' and inserting ``(7), (8), (9), 
     (12), (15), or (16) or any other person described in 
     subsection (l)(16) shall, as a condition'', and
       (B) in paragraph (4)(F)(ii), by striking the second comma 
     after ``(14)''.
       (18) Paragraph (5) of section 6166(k) is amended by 
     striking ``2035(d)(4)'' and inserting ``2035(c)(2)''.
       (19) Subsection (a) of section 6512 is amended by striking 
     ``; and'' at the end of paragraphs (1), (2), and (5) and 
     inserting ``, and''.
       (20) Paragraph (1) of section 6611(g) is amended by 
     striking the comma after ``(b)(3)''.
       (21) Subparagraphs (A) and (B) of section 6655(e)(5) are 
     amended by striking ``subsections (d)(5) and (l)(3)(B)'' and 
     inserting ``subsection (d)(5)''.
       (22) The subchapter heading for subchapter D of chapter 67 
     is amended by capitalizing the first letter of the second 
     word.
       (23)(A) Section 6724(d)(1)(B) is amended by striking 
     clauses (xiv) through (xvii) and inserting the following:
       ``(xiv) subparagraph (A) or (C) of subsection (c)(4) of 
     section 4093 (relating to information reporting with respect 
     to tax on diesel and aviation fuels),
       ``(xv) section 4101(d) (relating to information reporting 
     with respect to fuels taxes),
       ``(xvi) subparagraph (C) of section 338(h)(10) (relating to 
     information required to be furnished to the Secretary in case 
     of elective recognition of gain or loss), or
       ``(xvii) section 264(f)(5)(A)(iv) (relating to reporting 
     with respect to certain life insurance and annuity 
     contracts), and''.
       (B) Section 6010(o)(4)(C) of the Internal Revenue Service 
     Restructuring and Reform Act of 1998 is amended by striking 
     ``inserting `or', and by adding at the end'' and inserting 
     ``inserting `, or', and by adding after subparagraph (Z)''.
       (24) Subsection (a) of section 7421 is amended by striking 
     ``6672(b)'' and inserting ``6672(c)''.
       (25) Paragraph (3) of section 7430(c) is amended--
       (A) in the paragraph heading, by striking ``Attorneys'' and 
     inserting ``Attorneys' '', and
       (B) in subparagraph (B), by striking ``attorneys fees'' 
     each place it appears and inserting ``attorneys' fees''.
       (26) Paragraph (2) of section 7603(b) is amended by 
     striking the semicolon at the end of subparagraphs (A), (B), 
     (C), (D), (E), (F), and (G) and inserting a comma.
       (27) Clause (ii) of section 7802(b)(2)(B) is amended by 
     striking ``; and'' at the end and inserting ``, and''.
       (28) Paragraph (3) of section 7811(a) is amended by 
     striking ``taxpayer assistance order'' and inserting 
     ``Taxpayer Assistance Order''.
       (29) Paragraph (1) of section 7811(d) is amended by 
     striking ``Ombudsman's'' and inserting ``National Taxpayer 
     Advocate's''.
       (30) Paragraph (3) of section 7872(f) is amended by 
     striking ``foregoing'' and inserting ``forgoing''.

        TITLE IV--TAX TREATMENT OF SECURITIES FUTURES CONTRACTS

     SEC. 401. TAX TREATMENT OF SECURITIES FUTURES CONTRACTS.

       (a) In General.--Subpart IV of subchapter P of chapter 1 
     (relating to special rules for determining gains and losses) 
     is amended by inserting after section 1234A the following new 
     section:

     ``SEC. 1234B. GAINS OR LOSSES FROM SECURITIES FUTURES 
                   CONTRACTS.

       ``(a) Treatment of Gain or Loss.--
       ``(1) In general.--Gain or loss attributable to the sale or 
     exchange of a securities futures contract shall be considered 
     gain or loss from the sale or exchange of property which has 
     the same character as the property to which the contract 
     relates has in the hands of the taxpayer (or would have in 
     the hands of the taxpayer if acquired by the taxpayer).
       ``(2) Nonapplication of subsection.--This subsection shall 
     not apply to--
       ``(A) a contract which constitutes property described in 
     paragraph (1) or (7) of section 1221(a), and
       ``(B) any income derived in connection with a contract 
     which, without regard to this subsection, is treated as other 
     than gain from the sale or exchange of a capital asset.
       ``(b) Short-Term Gains and Losses.--Except as provided in 
     the regulations under section 1092(b) or this section, if 
     gain or loss on the sale or exchange of a securities futures 
     contract to sell property is considered as gain or loss from 
     the sale or exchange of a capital asset, such gain or loss 
     shall be treated as short-term capital gain or loss.
       ``(c) Securities Futures Contract.--For purposes of this 
     section, the term `securities futures contract' means any 
     security future (as defined in section 3(a)(55)(A) of the 
     Securities Exchange Act of 1934, as in effect on the date of 
     the enactment of this section).
       ``(d) Contracts Not Treated as Commodity Futures 
     Contracts.--For purposes of this title, a securities futures 
     contract shall not be treated as a commodity futures 
     contract.
       ``(e) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to provide for the proper 
     treatment of securities futures contracts under this title.''
       (b) Terminations, Etc.--Section 1234A is amended--
       (1) by inserting ``(other than a securities futures 
     contract, as defined in section 1234B)'' after ``right or 
     obligation'' in paragraph (1),
       (2) by striking ``or'' at the end of paragraph (1),
       (3) by adding ``or'' at the end of paragraph (2), and
       (4) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) a securities futures contract (as so defined) which 
     is a capital asset in the hands of the taxpayer,''.
       (c) Nonrecognition Under Section 1032.--The second sentence 
     of section 1032(a) is amended by inserting ``, or with 
     respect to a securities futures contract (as defined in 
     section 1234B),'' after ``an option''.
       (d) Treatment Under Wash Sales Rules.--Section 1091 is 
     amended by adding at the end the following new subsection:
       ``(f) Cash Settlement.--This section shall not fail to 
     apply to a contract or option to acquire or sell stock or 
     securities solely by reason of the fact that the contract or 
     option settles in (or could be settled in) cash or property 
     other than such stock or securities.''
       (e) Treatment Under Straddle Rules.--Clause (i) of section 
     1092(d)(3)(B) is amended by striking ``or'' at the end of 
     subclause (I), by redesignating subclause (II) as subclause 
     (III), and by inserting after subclause (I) the following new 
     subclause:

       ``(II) a securities futures contract (as defined in section 
     1234B) with respect to such stock or substantially identical 
     stock or securities, or''.

       (f) Treatment Under Short Sales Rules.--Paragraph (2) of 
     section 1233(e) is amended by striking ``and'' at the end of 
     subparagraph (B), by striking the period at the end of 
     subparagraph (C) and inserting ``; and'', and by adding at 
     the end the following:
       ``(D) a securities futures contract (as defined in section 
     1234B) to acquire substantially identical property shall be 
     treated as substantially identical property.''
       (g) Treatment Under Section 1256.--
       (1)(A) Subsection (b) of section 1256 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 adding at the end the following:
       ``(5) any dealer securities futures contract.
     The term `section 1256 contract' shall not include any 
     securities futures contract or option on such a contract 
     unless such contract or option is a dealer securities futures 
     contract.''
       (B) Subsection (g) of section 1256 is amended by adding at 
     the end the following new paragraph:
       ``(9) Dealer securities futures contract.--
       ``(A) In general.--The term `dealer securities futures 
     contract' means, with respect to any dealer, any securities 
     futures contract, and any option on such a contract, which--
       ``(i) is entered into by such dealer (or, in the case of an 
     option, is purchased or granted by such dealer) in the normal 
     course of his activity of dealing in such contracts or 
     options, as the case may be, and
       ``(ii) is traded on a qualified board or exchange.
       ``(B) Dealer.--For purposes of subparagraph (A), a person 
     shall be treated as a dealer in securities futures contracts 
     or options on such contracts if the Secretary determines that 
     such person performs, with respect to such contracts or 
     options, as the case may be, functions similar to the 
     functions performed by persons described in paragraph (8)(A). 
     Such determination shall be made to the extent appropriate to 
     carry out the purposes of this section.
       ``(C) Securities futures contract.--The term `securities 
     futures contract' has the meaning given to such term by 
     section 1234B.''
       (2) Paragraph (4) of section 1256(f) is amended--
       (A) by inserting ``, or dealer securities futures 
     contracts,'' after ``dealer equity options'' in the text, and
       (B) by inserting ``and dealer securities futures 
     contracts'' after ``dealer equity options'' in the heading.
       (3) Paragraph (6) of section 1256(g) is amended to read as 
     follows:
       ``(6) Equity option.--The term `equity option' means any 
     option--

[[Page 26984]]

       ``(A) to buy or sell stock, or
       ``(B) the value of which is determined directly or 
     indirectly by reference to any stock or any narrow-based 
     security index (as defined in section 3(a)(55) of the 
     Securities Exchange Act of 1934, as in effect on the date of 
     the enactment of this paragraph).
     The term `equity option' includes such an option on a group 
     of stocks only if such group meets the requirements for a 
     narrow-based security index (as so defined).''
       (4) The Secretary of the Treasury or his delegate shall 
     make the determinations under section 1256(g)(9)(B) of the 
     Internal Revenue Code of 1986, as added by this Act, not 
     later than July 1, 2001.
       (h) Conforming Amendments.--
       (1) Section 1223 is amended by redesignating paragraph (16) 
     as paragraph (17) and by inserting after paragraph (15) the 
     following new paragraph:
       ``(16) If the security to which a securities futures 
     contract (as defined in section 1234B) relates (other than a 
     contract to which section 1256 applies) is acquired in 
     satisfaction of such contract, in determining the period for 
     which the taxpayer has held such security, there shall be 
     included the period for which the taxpayer held such contract 
     if such contract was a capital asset in the hands of the 
     taxpayer.''.
       (2) The table of sections for subpart IV of subchapter P of 
     chapter 1 is amended by inserting after the item relating to 
     section 1234A the following new item:

``Sec. 1234B. Securities futures contracts.''
       (i) Designation of Contract Markets.--Section 7701 is 
     amended by redesignating subsection (m) as subsection (n) and 
     by inserting after subsection (l) the following new 
     subsection:
       ``(m) Designation of Contract Markets.--Any designation by 
     the Commodity Futures Trading Commission of a contract market 
     which could not have been made under the law in effect on the 
     day before the date of the enactment of the Commodity Futures 
     Modernization Act of 2000 shall apply for purposes of this 
     title except to the extent provided in regulations prescribed 
     by the Secretary.''
       (j) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

                COMMUNITY RENEWAL TAX RELIEF ACT OF 2000

       Following is explanatory language on H.R. 5662, as 
     introduced on December 14, 2000.
       The conferees on H.R. 4577 agree with the matter included 
     in H.R. 5659 and enacted in this conference report by 
     reference and the following description of it.

                 TITLE I. COMMUNITY RENEWAL PROVISIONS

 A. Renewal Community Provisions (secs. 101-102 of the bill and secs. 
              51, 469, and new secs. 1400E-J of the Code)


                              Present Law

       In recent years, provisions have been added to the Internal 
     Revenue Code that target specific geographic areas for 
     special Federal income tax treatment. For example, 
     empowerment zones and enterprise communities generally 
     provide tax incentives for businesses that locate within 
     certain geographic areas designated by the Secretaries of 
     Housing and Urban Development (`HUD'') and Agriculture.


                               House Bill

       No provision. However, H.R. 5542\1\ authorizes the 
     designation of 40 ``renewal communities'' within which 
     special tax incentives would be available. The following is a 
     description of the designation process and the tax incentives 
     that would be available within the renewal communities.
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     \1\ H.R. 5542 was incorporated by reference into the 
     conference agreement that accompanied H.R. 2614 (H. Rpt. 106-
     1004), which was passed by the House of Representatives on 
     October 26, 2000.
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     Designation process
       Designation of 40 renewal communities.--The Secretary of 
     HUD,\2\ is authorized to designate up to 40 ``renewal 
     communities'' from areas nominated by States and local 
     governments. At least 12 of the designated communities must 
     be in rural areas. Of the 12 rural renewal communities, one 
     shall be an area within Mississippi, designated by the State 
     of Mississippi, that includes at least one census tract 
     within Madison County, Mississippi.
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     \2\ In making the designations, the Secretary of HUD must 
     consult with the Secretaries of Agriculture, Commerce, Labor, 
     Treasury, the Director of the Office of Management and 
     Budget; and the Administrator of the Small Business 
     Administration (and the Secretary of the Interior in the case 
     of an area within an Indian reservation).
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       The Secretary of HUD is required to publish (within four 
     months after enactment) regulations describing the nomination 
     and selection process. Designations of renewal communities 
     are to be made during the period beginning on the first day 
     of the first month after the regulations are published and 
     ending on December 31, 2001. The designation of an area as a 
     renewal community generally will be effective on January 1, 
     2002, and will terminate after December 31, 2009.\3\
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     \3\ The designation would terminate earlier than December 31, 
     2009, if (1) an earlier termination date is designated by the 
     State or local government in their designation, or (2) the 
     Secretary of HUD revokes the designation as of an earlier 
     date.
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       Elibility criteria.--To be designated as a renewal 
     community, a nominated area must meet the following criteria: 
     (1) each census tract must have a poverty rate of at least 20 
     percent,\4\ (2) in the case of an urban area, at least 70 
     percent of the households have incomes below 80 percent of 
     the median income of households within the local government 
     jurisdiction; (3) the unemployment rate is at least 1.5 times 
     the national unemployment rate; and (4) the area is one of 
     pervasive poverty, unemployment, and general distress. Those 
     areas with the highest average ranking of eligibility factors 
     (1), (2), and (3) above would be designated as renewal 
     communities. One nominated area within the District of 
     Columbia becomes a renewal community (without regard to its 
     ranking of eligibility factors) provided that it satisfies 
     the area and eligibility requirements and the required State 
     and local commitments described below.\5\ The Secretary of 
     HUD shall take into account in selecting areas for 
     designation the extent to which such areas have a high 
     incidence of crime, as well as whether the area has census 
     tracts identified in the May 12, 1998, report of the General 
     Accounting Office regarding the identification of 
     economically distressed areas. In lieu of the poverty, 
     income, and unemployment criteria, outmigration may be taken 
     into account in the designation of one rural renewal 
     community.
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     \4\ Determined using 1990 census data.
     \5\ The designation of a nominated area within the District 
     of Columbia as a renewal community becomes effective on 
     January 1, 2003 (upon the expiration of the designation of 
     the District of Columbia Enterprise Zone).
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       There are no geographic size limitations placed on renewal 
     communities. Instead, the boundary of a renewal community 
     must be continuous. In addition, the renewal community must 
     have a minimum population of 4,000 if the community is 
     located within a metropolitan statistical area (at least 
     1,000 in all other cases), and a maximum population of not 
     more than 200,000. The population limitations do not apply to 
     any renewal community that is entirely within an Indian 
     reservation.
       Required State and local commitments.--In order for an area 
     to be designated as a renewal community, State and local 
     governments are required to submit a written course of action 
     in which the State and local governments promise to take at 
     least four of the following governmental actions within the 
     nominated area: (1) a reduction of tax rates or fees; (2) an 
     increase in the level of efficiency of local services; (3) 
     crime reduction strategies; (4) actions to remove or 
     streamline governmental requirements; (5) involvement by 
     private entities and community groups, such as to provide 
     jobs and job training and financial assistance; and (6) the 
     gift (or sale at below fair market value) of surplus realty 
     by the State or local government to community organizations 
     or private companies.
       In addition, the nominating State and local governments 
     must promise to promote economic growth in the nominated area 
     by repealing or not enforcing four of the following: (1) 
     licensing requirements for occupations that do not ordinarily 
     require a professional degree; (2) zoning restrictions on 
     home-based businesses that do not create a public nuisance; 
     (3) permit requirements for street vendors who do not create 
     a public nuisance; (4) zoning or other restrictions that 
     impede the formation of schools or child care centers; and 
     (5) franchises or other restrictions on competition for 
     businesses providing public services, including but not 
     limited to taxicabs, jitneys, cable television, or trash 
     hauling, unless such regulations are necessary for and well-
     tailored to the protection of health and safety.
       Empowerment zones and enterprise communities seeking 
     designation as renewal communities.--With respect to the 
     first 20 designations of nominated areas as renewal 
     communities, preference will be given to nominated areas that 
     are enterprise communities and empowerment zones under 
     present law that otherwise meet the requirements for 
     designation as a renewal community. An empowerment zone or 
     enterprise community can apply for designation as a renewal 
     community. If a renewal community designation is granted, 
     then an area's designation as an empowerment zone enterprise 
     community ceases as of the date the area's designation as a 
     renewal community takes effect.
     Tax incentives for renewal communities
       The following tax incentives generally are available during 
     the period beginning January 1, 2002, and ending December 31, 
     2009.\6\
---------------------------------------------------------------------------
     \6\ If a renewal community designation is terminated prior to 
     December 31, 2009, the tax incentives would cease to be 
     available as of the termination date.
---------------------------------------------------------------------------
       Zero-percent capital gain rate.--A zero-percent capital 
     gains rate applies with respect to gain from the sale of a 
     qualified community asset acquired after December 31, 2001, 
     and before January 1, 2010, and held for more than five 
     years. A ``qualified community asset'' includes: (1) 
     qualified community stock (meaning original-issue stock 
     purchased for cash in a renewal community business); (2) a 
     qualified community partnership interest (meaning a 
     partnership interest acquired for cash in a renewal community 
     business); (3) qualified community business property (meaning 
     tangible property originally used in a renewal community 
     business

[[Page 26985]]

     by the taxpayer) that is purchased or substantially improved 
     after December 31, 2001.
       A ``renewal community business'' is similar to the present-
     law definition of an enterprise zone business.\7\ Property 
     will continue to be a qualified community asset if sold (or 
     otherwise transferred) to a subsequent purchaser, provided 
     that the property continues to represent an interest in (or 
     tangible property used in) a renewal community business. The 
     termination of an area's status as a renewal community will 
     not affect whether property is a qualified community asset, 
     but any gain attributable to the period before January 1, 
     2002, or after December 31, 2014, will not be eligible for 
     the zero-percent rate.
---------------------------------------------------------------------------
     \7\ An ``enterprise zone business'' is defined in section 
     1397B.
---------------------------------------------------------------------------
       Renewal community employment credit.--A 15-percent wage 
     credit is available to employers for the first $10,000 of 
     qualified wages paid to each employee who (1) is a resident 
     of the renewal community, and (2) performs substantially all 
     employment services within the renewal community in a trade 
     or business for the employer.
       The wage credit rate applies to qualifying wages paid after 
     December 31, 2001, and before January 1, 2010. Wages that 
     qualify for the credit are wages that are considered 
     ``qualified zone wages'' for purposes of the empowerment zone 
     wage credit (including coordination with the Work Opportunity 
     Tax Credit). In general, any taxable business carrying out 
     activities in the renewal community may claim the wage 
     credit.
       Commercial revitalization deduction.--Each State is 
     permitted to allocate up to $12 million of ``commercial 
     revitalization expenditures'' to each renewal community 
     located within the State for each calendar year after 2001 
     and before 2010. The appropriate State agency will make the 
     allocations pursuant to a qualified allocation plan.
       A ``commercial revitalization expenditure'' means the cost 
     of a new building or the cost of substantially rehabilitating 
     an existing building. The building must be used for 
     commercial purposes and be located in a renewal community. In 
     the case of the rehabilitation of an existing building, the 
     cost of acquiring the building will be treated as qualifying 
     expenditures only to the extent that such costs do not exceed 
     30 percent of the other rehabilitation expenditures. The 
     qualifying expenditures for any building cannot exceed $10 
     million.
       A taxpayer can elect either to (a) deduct one-half of the 
     commercial revitalization expenditures for the taxable year 
     the building is placed in service or (b) amortize all the 
     expenditures ratably over the 120-month period beginning with 
     the month the building is placed in service. No depreciation 
     is allowed for amounts deducted under this provision. The 
     adjusted basis is reduced by the amount of the commercial 
     revitalization deduction, and the deduction is treated as a 
     depreciation deduction in applying the depreciation recapture 
     rules (e.g., sec. 1250). The commercial revitalization 
     deduction is treated in the same manner as the low-income 
     housing credit in applying the passive loss rules (sec. 469). 
     Thus, up to $25,000 of deductions (together with the other 
     deductions and credits not subject to the passive loss 
     limitation by reason of section 469(i)) are allowed to an 
     individual taxpayer regardless of the taxpayer's adjusted 
     gross income. The commercial revitalization deduction is 
     allowed in computing a taxpayer's alternative minimum taxable 
     income.
       Additional section 179 expensing.--A renewal community 
     business is allowed an additional $35,000 of section 179 
     expensing for qualified renewal property placed in service 
     after December 31, 2001, and before January 1, 2010. The 
     section 179 expensing allowed to a taxpayer is phased out by 
     the amount by which 50 percent of the cost of qualified 
     renewal property placed in service during the year by the 
     taxpayer exceeds $200,000. The term ``qualified renewal 
     property'' is similar to the definition of ``qualified zone 
     property'' used in connection with empowerment zones.
       Extension of work opportunity tax credit (``WOTC'').--The 
     bill expands the high-risk youth and qualified summer youth 
     categories in the WOTC to include qualified individuals who 
     live in a renewal community.
     GAO report
       The General Accounting Office will audit and report to 
     Congress on January 31, 2004, and again in 2007 and 2010, on 
     the renewal community program and its effect on poverty, 
     unemployment, and economic growth within the designated 
     renewal communities.
     Effective date
       Renewal communities must be designated during the period 
     beginning on the first day of the first month after the 
     publication of regulations by HUD and ending on December 31, 
     2001, The tax benefits available in renewal communities are 
     effective for the period beginning January 1, 2002, and 
     ending December 31, 2009.


                            Senate Amendment

       No provision. However, S. 3152 \8\ authorizes the 
     Secretaries of HUD and Agriculture to designate up to 30 
     renewal zones from areas nominated by States and local 
     governments. At least six of the designated renewal zones 
     must be in rural areas. The Secretary of HUD is required to 
     publish (within four months after enactment) regulations 
     describing the nomination and selection process. Designations 
     of renewal zones must be made before January 1, 2002, and the 
     designations are effective for the period beginning on 
     January 1, 2002 through December 31, 2009.
---------------------------------------------------------------------------
     \8\ S. 3152 was introduced by Senator Roth and others on 
     October 3, 2000.
---------------------------------------------------------------------------
       The eligibility criteria (as well as the population and 
     geographic limitations) are similar to those for renewal 
     communities in the House bill, except that S. 3152 provides 
     that any State without any empowerment zone would be given 
     priority in the designation process. Also, the designations 
     of renewal zones must result in (after taking into account 
     existing empowerment zones) each State having at least one 
     zone designation (empowerment or renewal zone). In addition, 
     S. 3152 provides that, in lieu of the poverty, income, and 
     unemployment criteria, outmigration may be taken into account 
     in the designation of one rural renewal zone. Under a 
     separate provision in S. 3152, the designation of the 
     District of Columbia Enterprise Zone is entended through 
     December 31, 2006.
       In order for an area to be designated as a renewal zone, 
     State and local governments are required to submit a written 
     course of action in which the State and local governments 
     promise to take at least four of the governmental actions 
     described in the House bill with respect to renewal 
     communities. However, S. 3152 does not contain any of the 
     economic growth provision requirements described in the House 
     bill.
       Tax incentives for renewal zones.--Under S. 3152, 
     businesses in renewal zones would be eligible for the 
     following tax incentives during the period beginning January 
     1, 2002 and ending December 31, 2009: (1) a zero-percent 
     capital gains rate for qualifying assets limited to an 
     aggregate amount not to exceed $25 million of gain per 
     taxpayer; \9\ (2) a 15-percent wage credit for the first 
     $15,000 of qualifying wages; (3) $35,000 in additional 179 
     expensing for qualifying property; (4) and the enhanced tax-
     exempt bond rules that currently apply to businesses in the 
     Round II empowerment zones.
---------------------------------------------------------------------------
     \9\ Any gain attributable to the period before January 1, 
     2002, or after December 31, 2014, would not be eligible for 
     the zero-percent capital gains rate.
---------------------------------------------------------------------------
       GAO report.--The General Accounting Office will audit and 
     report to Congress every three years (beginning on January 
     31, 2004) on the renewal zone program and its effect on 
     poverty, unemployment, and economic growth within the 
     designated renewal zones.
       Effective date.--The 30 renewal zones must be designated by 
     January 1, 2002, and the tax benefits are available for the 
     period beginning January 1, 2002, and ending December 31, 
     2009.


                          Conference Agreement

       The conference agreement follows H.R. 5542 with the 
     following modifications. The conference agreement does not 
     include the rural renewal community designation with respect 
     to an area within the State of Mississippi. The conference 
     agreement does not include the special rule that provides 
     that one nominated area within the District of Columbia 
     becomes a renewal community (without regard to its ranking of 
     eligibility factors).

                   B. Empowerment Zone Tax Incentives

     1. Extension and expansion of empowerment zones (secs. 111-
         115 of the bill and secs. 1391, 1394, 1396, and 1397A of 
         the Code)


                              PRESENT LAW

     Round I empowerment zones
       The Omnibus Budget reconciliation Act of 1993 (``OBRA 
     1993'') authorized the designation of nine empowerment zones 
     (``Round I empowerment zones'') to provide tax incentives for 
     businesses to locate within targeted areas designated by the 
     Secretaries of HUD and Agriculture. The Taxpayer Relief Act 
     of 1997 (``1997 Act'') authorized the designation of two 
     additional Round I urban empowerment zones.
       Businesses in the 11 Round I empowerment zones qualify for 
     the following tax incentives: (1) a 20-percent wage credit 
     for the first $15,000 of wages paid to a zone resident who 
     works in the empowerment zone,\10\ (2) an additional $20,000 
     of section 179 expensing for qualifying zone property, and 
     (3) tax-exempt financing for certain qualifying zone 
     facilities. The tax incentives with respect to the 
     empowerment zones designated by OBRA 1993 generally are 
     available during the 10-year period of 1995 through 2004. The 
     tax incentives with respect to the two additional Round I 
     empowerment zones generally are available during the 10-year 
     period of 2000 through 2009.\11\
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     \10\ For wages paid in calendar years during the period 1994 
     through 2001, the credit rate is 20 percent. The credit rate 
     is reduced to 15 percent for calendar year 2002, 10 percent 
     for calendar year 2003, and 5 percent for calendar year 2004. 
     No wage credit is available after 2004 in the original nine 
     empowerment zones.
     \11\ Except for the wage credit, which is reduced to 15 
     percent for calendar year 2005, and then reduced by five 
     percentage points in each year in 2006 and 2007, with no wage 
     credit available after 2007.
---------------------------------------------------------------------------
     Round II empowerment zones
       The 1997 Act also authorized the designation of 20 
     additional empowerment zones (``Round II empowerment 
     zones''), of which 15 are located in urban areas and five are 
     located in rural areas. Businesses in the Round II 
     empowerment zones are not eligible for

[[Page 26986]]

     the wage credit, but are eligible to receive up to $20,000 of 
     additional section 179 expensing. Businesses in the Round II 
     empowerment zones also are eligible for more generous tax-
     exempt financing benefits than those available in the Round I 
     empowerment zones. Specifically, the tax-exempt financing 
     benefits for the Round II empowerment zones are not subject 
     to the State private activity bond volume caps (but are 
     subject to separate per-zone volume limitations), and the 
     per-business size limitations that apply to the Round I 
     empowerment zones and enterprise communities (i.e., $3 
     million for each qualified enterprise zone business with a 
     maximum of $20 million for each principal user for all zones 
     and communities) do not apply to qualifying bonds issued for 
     Round II empowerment zones. The tax incentives with respect 
     to the Round II empowerment zones generally are available 
     during the 10-year period of 1999 through 2008.


                               HOUSE BILL

       No provision. However, H.R. 5542 conforms and enhances the 
     tax incentives for the Round I and Round II empowerment zones 
     and extends their designations through December 31, 2009. The 
     bill also authorizes the designation of nine new empowerment 
     zones (``Round III empowerment zones'').
     Extension of tax incentives for Round I and Round II 
         empowerment zones
       The designation of empowerment zones status for Round I and 
     II empowerment zones (other than the District of Columbia 
     Enterprise Zone) is extended through December 31, 2009. In 
     addition, the 20-percent wage credit is made available in all 
     Round I and II empowerment zones for qualifying wages paid or 
     incurred after December 31, 2001. The credit rate remains at 
     20 percent (rather than being phased down) through December 
     31, 2009, in Round I and Round II empowerment zones.
       In addition, $35,000 (rather than $20,000) of additional 
     section 179 expensing in available for qualified zone 
     property placed in service in taxable years beginning after 
     December 31, 2001, by a qualified business in any of the 
     empowerment zones.\12\ Businesses in the D.C. Enterprise Zone 
     are entitled to the additional section 179 expensing until 
     the termination of the D.C. Enterprise zone designation.
---------------------------------------------------------------------------
     \12\ The additional $35,000 of section 179 expensing is 
     available throughout all areas that are part of a designated 
     empowerment zone, including the non-contiguous ``developable 
     sites'' that were allowed to be part of the designated Round 
     II empowerment zones under the 1997 Act.
---------------------------------------------------------------------------
       Businesses located in Round I empowerment zones (other than 
     the D.C. Enterprise Zone \13\ also are eligible for the more 
     generous tax-exempt bond rules that apply under present law 
     to businesses in the Round II empowerment zones (sec. 
     1394(f)). The bill applies to tax-exempt bonds issued after 
     December 31, 2001. Bonds that have been issued by businesses 
     in Round I zones before January 1, 2002, are not taken into 
     account in applying the limitations on the amount of new 
     empowerment zone facility bonds that can be issued under the 
     bill.
---------------------------------------------------------------------------
     \13\ The present-law rules of sections 1394 and 1400A 
     continue to apply with respect to the D.C. Enterprise Zone.
---------------------------------------------------------------------------
     Nine new empowerment zones
       The Secretaries of HUD and Agriculture are authorized to 
     designate nine additional empowerment zones (``Round III 
     empowerment zones''). Seven of the Round III empowerment 
     zones will be located in urban areas, and two will be located 
     in rural areas.
       The eligibility and selection criteria for the Round III 
     empowerment zones are the same as the criteria that applied 
     to the Round II Round empowerment zones. The Round III 
     empowerment zones must be designated by January 1, 2002, and 
     the tax incentives with respect to the Round III empowerment 
     zones generally are available during the period beginning on 
     January 1, 2002, and ending on December 31, 2009.
       Busineses in the Round III empowerment zones are eligible 
     for the same tax incentives that, under the bill, are 
     available to Round I and Round II empowerment zones (i.e., a 
     20 percent wage credit, an additional $35,000 of section 179 
     expensing, and the enhanced tax-exempt financing benefits 
     presently available to Round II empowerment zones).
     GAO report
       The bill provides that the GAO will audit and report to 
     Congress on January 31, 2004, and again in 2007 and 2010, on 
     the empowerment zone and enterprise community program and its 
     effect on poverty, unemployment, and economic growth within 
     the designated areas.
     Effective date
       The extension of the existing empowerment zone designations 
     is effective after the date of enactment. The extension of 
     the tax benefits to existing empowerment zones (i.e., the 
     expanded wage credit, the additional section 179 expensing, 
     and the more generous tax-exempt bond rules) generally is 
     effective after December 31, 2001. The new Round III 
     empowerment zones must be designated by January 1, 2002, and 
     the tax incentives with respect to the Round III empowerment 
     zones generally are available during the period beginning on 
     January 1, 2002, and ending on December 31, 2009.


                            Senate Amendment

       No provision. However, S. 3152 contains a provision that 
     conforms and enhances incentives of existing empowerment 
     zones. Specifically, the provision extends the designation of 
     empowerment zone status for Round I and II empowerment zones 
     through December 31, 2009. In addition, a 15-percent wage 
     credit is made available in all Round I and II empowerment 
     zones, effective in 2002 (except in the case of the two 
     additional Round I empowerment zones added by the 197 Act, 
     for which the 15-percent wage credit takes effect in 2005 as 
     scheduled under present law). For all the empowerment zones, 
     the 15-percent wage credit expires on December 31, 2009.
       As in the House bill, $35,000 (rather than $20,000) in 
     additional section 179 expensing is made available for 
     qualified zone property placed in service in taxable years 
     beginning after December 31, 2001, by a qualified business in 
     any of the empowerment zones. Similarly, S. 3152 extends to 
     businesses located in Round I empowerment zones the more 
     generous tax-exempt bond rules that apply under present law 
     to businesses in the Round II empowerment zones (sec. 
     1394(f)) for bonds issued after December 31, 2001.
       Businesses located in any empowerment zone also qualify for 
     a zero-percent capital gains rate for gain from the sale of a 
     qualifying zone assets acquired after date of enactment and 
     before January 1, 2010, and held more than five years. Assets 
     that qualify for this incentive are similar to the types of 
     assets that qualify for the present-law zero percent capital 
     gains rate for qualifying D.C. Zone assets. The zero-percent 
     capital gains rate is limited to an aggregate amount not to 
     exceed $25 million of gain per taxpayer. Gain attributable to 
     the period before the date of enactment or after December 31, 
     2014, is not eligible for the zero-percent rate.
       Effective date.--The extension of the existing empowerment 
     zone designations is effective after the date of enactment. 
     The additional section 179 expensing and the more generous 
     tax-exempt bond rules for the existing empowerment zones is 
     effective after December 31,2001. The zero-percent capital 
     gains rate applies to qualifying property purchased after the 
     date of enactment. The 15-percent wage credit generally is 
     effective for qualifying wages paid after December 31, 2001 
     (December 31, 2004 for the two additional Round I empowerment 
     zones).


                          Conference Agreement

       The conference agreement follows H.R. 5542. The conference 
     agreement also provides that the Secretaries of HUD and 
     Agriculture are authorized to designate a replacement 
     empowerment zone for each empowerment zone that becomes a 
     renewal community. The replacement empowerment zone will have 
     the same urban or rural character as the empowerment zone 
     that it is replacing.
     2. Rollover of gain from the sale of qualified empowerment 
         zone investments (sec. 116 of the bill and new sec. 1397B 
         of the Code)


                              Present Law

       In general, gain or loss is recognized on any sale, 
     exchange, or other disposition of property. A taxpayer (other 
     than a corporation) may elect to roll over without payment of 
     tax any capital gain realized upon the sale of qualified 
     small business stock held for more than six months where the 
     taxpayer uses the proceeds to purchase other qualified small 
     business stock within 60 days of the sale of the original 
     stock.


                               House Bill

       No provision. However, H.R. 5542 provides that a taxpayer 
     can elect to roll over capital gain from the sale or exchange 
     of any qualified empowerment zone asset purchased after the 
     date of enactment and held for more than one year (``original 
     zone asset'') where the taxpayer uses the proceeds to 
     purchase other qualifying empowerment zone assets in the same 
     zone (``replacement zone asset'') within 60 days of the sale 
     of the original zone asset. The holding period of the 
     replacement zone asset includes the holding period of the 
     original zone asset, except that the replacement asset must 
     actually be held for more than one year to qualify for 
     another tax-free rollover. The basis of the replacement zone 
     asset is reduced by the gain not recognized on the rollover. 
     However, if the replacement zone asset is qualified small 
     business stock (as defined in sec. 1202), the exclusion under 
     section 1202 would not apply to gain accrued on the original 
     zone asset.\14\ A ``qualified empowerment zone asset'' means 
     an asset that would be a qualified community asset if the 
     empowerment zone were a renewal community (and the asset is 
     acquired after the date of enactment of the bill). Assets in 
     the D.C. Enterprise Zone are not eligible for the tax-free 
     rollover treatment.\15\
---------------------------------------------------------------------------
     \14\ See section 1045 for rollover of qualified small 
     business stock to other small business stock.
     \15\ However, a qualifying D.C. Zone asset held for more than 
     five years is eligible for a 100-percent capital gains 
     exclusion (sec. 1400B).
---------------------------------------------------------------------------
       Effective date.--The provision is effective for qualifying 
     assets purchased after the date of enactment.


                            senate amendment

       No provision.


                          conference agreement

       The conference agreement follows H.R. 5542.

[[Page 26987]]


     3. Increased exclusion of gain from the sale of qualifying 
         empowerment zone stock (sec. 117 of the bill and sec. 
         1202 of the Code)


                              Present Law

       Under present law, an individual, subject to limitations, 
     may exclude 50 percent of the gain \16\ from the sale of 
     qualifying small business stock held for more than five years 
     (sec. 1202).
---------------------------------------------------------------------------
     \16\ The portion of the capital gain included in income is 
     subject to a maximum regular tax rate of 28 percent, and 42 
     percent of the excluded gain is a minimum tax preference.
---------------------------------------------------------------------------


                               House Bill

       No provision. However, H.R. 5542 increases the exclusion 
     for small business stock to 60 percent for stock purchased 
     after the date of enactment in a corporation that is a 
     qualified business entity and that is held for more than five 
     years. A ``qualified business entity'' means a corporation 
     that satisfies the requirements of a qualifying business 
     under the empowerment zone rules during substantially all the 
     taxpayer's holding period.
       Effective Date.--The provision is effective for qualified 
     stock purchased after the date of enactment.


                            Senate Amendment

       No provision.


                          Conference Agreement

       The conference agreement follows H.R. 5542.

C. New Markets Tax Credit (sec. 121 of the bill and new sec. 45D of the 
                                 Code)


                              present law

       Tax incentives are available to taxpayers making 
     investments and loans in low-income communities. For example, 
     tax incentives are available to taxpayers that invest in 
     specialized small business investment companies licensed by 
     the SBA to make loans to, or equity investments in, small 
     businesses owned by persons who are socially or economically 
     disadvantaged.


                               house bill

       No provision. However, H.R. 5542 includes a provision that 
     creates a new tax credit for qualified equity investments 
     made to acquire stock in a selected community development 
     entity (``CDE''). The maximum annual amount of qualifying 
     equity investments is capped as follows:

------------------------------------------------------------------------
                                            Maximum qualifying equity
             Calendar year                         investment
------------------------------------------------------------------------
2001..................................  $1.0 billion
2002-2003.............................  $1.5 billion per year
2004-2005.............................  $2.0 billion per year
2006-2007.............................  $3.5 billion per year
------------------------------------------------------------------------

       The amount of the new tax credit to the investor (either 
     the original purchaser or a subsequent holder) is (1) a five-
     percent credit for the year in which the equity interest is 
     purchased from the CDE and the first two anniversary dates 
     after the interest is purchased from the CDE, and (2) a six 
     percent credit on each anniversary date thereafter for the 
     following four years.\7\ The taxpayer's basis in the 
     investment is reduced by the amount of the credit (other than 
     for purposes of calculating the capital gain exclusion under 
     sections 1202, 1400B, and 1400F). The credit is subject to 
     the general business credit rules.
---------------------------------------------------------------------------
     \17\ Thus, a credit would be available on the date on which 
     the investment is made and for each of the six anniversary 
     dates thereafter.
---------------------------------------------------------------------------
       A CDE is any domestic corporation or partnership (1) whose 
     primary mission is serving or providing investment capital 
     for low-income communities or low-income persons, (2) that 
     maintains accountability to residents of low-income 
     communities by their representation on any governing board or 
     on any advisory board of the CDE, and (3) is certified by the 
     Treasury Department as an eligible CDE.\18\ No later than 120 
     days after enactment, the Treasury Department shall issue 
     regulations that specify objective criteria to be used by the 
     Treasury to allocate the credits among eligible CDEs. In 
     allocating the credits, the Treasury Department will give 
     priority to entities with records of having successfully 
     provided capital or technical assistance to disadvantaged 
     businesses or communities,\19\ as well as to entities that 
     intend to invest substantially all of the proceeds from their 
     investors in businesses in which persons unrelated to the CDE 
     hold the majority of the equity interest.
---------------------------------------------------------------------------
     \18\ A specialized small business investment company and a 
     community development financial institution are treated as 
     satisfying the requirements for a CDE.
     \19\ A record of having successfully provided capital or 
     technical assistance to disadvantaged businesses or 
     communities could be demonstrated by the past actions of the 
     CDE itself or an affiliate (e.g., in the case where a new CDE 
     is established by a nonprofit organization with a history of 
     providing assistance to disadvantaged communities).
---------------------------------------------------------------------------
       If a CDE fails to sell equity interests to investors up to 
     the amount authorized within five years of the authorization, 
     then the remaining authorization is canceled. The Treasury 
     Department can authorize another CDE to issue equity 
     interests for the unused portion. No authorization can be 
     made after 2014.
       A ``qualified equity investment'' is defined as stock or a 
     similar equity interest acquired directly from a CDE in 
     exchange for cash. Substantially all of the investment 
     proceeds must be used by the CDE to make ``qualified low-
     income community investments.'' Qualified low-income 
     community investments include: (1) capital or equity 
     investments in, or loans to, qualified active businesses 
     located in low-income communities,\20\ (2) certain financial 
     counseling and other services specified in regulations to 
     businesses and residents in low-income communities, (3) the 
     purchase from another CDE of any loan made by such entity 
     that is a qualified low income community investment, or (4) 
     an equity investment in, or loans to, another CDE.\21\ 
     Treasury Department regulations will provide guidance with 
     respect to the ``substantially all'' standard.
---------------------------------------------------------------------------
     \20\ Thus, a qualified low-income community investment may 
     include an investment in a qualifying business in which the 
     CDE (or a related party) holds a significant interest. 
     However, as previously mentioned, in allocating the credits 
     among eligible CDEs, the Treasury Department will give 
     priority to CDEs that intend to invest substantially all of 
     the proceeds from their investors in businesses in which 
     persons unrelated to the CDE hold the majority of the equity 
     interest. Persons are related to each other if they are 
     described in sections 267(b) or 707(b)(1).
     \21\ If at least 85 percent of the aggregate gross assets of 
     the CDE are invested (directly or indirectly) in equity 
     interest in, or loans to, qualified active businesses located 
     in low-income communities, then there would be no need to 
     trace the use of the proceeds from the particular stock (or 
     other equity ownership) issuance with respect to which the 
     credit is claimed.
---------------------------------------------------------------------------
       The stock or equity interest cannot be redeemed (or 
     otherwise cashed out) by the CDE for at least seven years. If 
     an entity fails to be a CDE during the seven-year period 
     following the taxpayer's investment, or if the equity 
     interest is redeemed by the issuing CDE during that seven-
     year period, then any credits claimed with respect to the 
     equity interest are recaptured (with interest) and no further 
     credits are allowed.
       A ``low-income community'' is defined as census tracts with 
     either (1) poverty rates of at least 20 percent (based on the 
     most recent census data), or (2) median family income which 
     does not exceed 80 percent of the greater of metropolitan 
     area income or statewide median family income (for a non-
     metropolitan census tract, 80 percent of non-metropolitan 
     statewide median family income). In addition, the Secretary 
     may designate any area within any census tract as a ``low 
     income community'' provided that (1) the boundary of the area 
     is continuous,\22\ (2) the area (if it were a census tract) 
     would satisfy the poverty rate or median income requirements 
     within the targeted area, and (3) an inadequate access to 
     investment capital exists in the area.
---------------------------------------------------------------------------
     \22\ It is intended that the continuous boundary that 
     delineate the portion of the census tract as a ``low-income 
     community'' should be a pre-existing boundary (such as an 
     established neighborhood, political, or geographic boundary).
---------------------------------------------------------------------------
       A ``qualified active business'' is defined as a business 
     which satisfies the following requirements: (1) at least 50 
     percent of the total gross income of the business is derived 
     from the active conduct of trade or business activities in 
     low-income communities; (2) a substantial portion of the use 
     of the tangible property of such business is used in low-
     income communities; (3) a substantial portion of the services 
     performed for such business by its employees is performed in 
     low-income communities; and (4) less than 5 percent of the 
     average aggregate of unadjusted bases of the property of such 
     business is attributable to certain financial property or to 
     collectibles (other than collectibles held for sale to 
     customers). There is no requirement that employees of the 
     business be residents of the low-income community.
       Rental of improved commercial real estate located in a low-
     income community is a qualified active business, regardless 
     of the characteristics of the commercial tenants of the 
     property. The purchase and holding of unimproved real estate 
     is not a qualified active business. In addition, a qualified 
     active business does not include (a) any business consisting 
     predominantly of the development or holding of intangibles 
     for sale or license; or (b) operation of any facility 
     described in sec. 144(c)(6)(B). A qualified active business 
     can include an organization that is organized on a non-profit 
     basis.
       The GAO will audit and report to Congress by January 31, 
     2004, and again in 2007 and 2010, on the new markets tax 
     credit program, including on all qualified community 
     development entities that receive an allocation under the new 
     markets tax credit program.
       Effective date.--The provision is effective for qualified 
     investments made after December 31, 2000.


                            senate amendment

       No provision. However, S. 3152 includes a provision that 
     creates a new markets tax credit is similar to the provision 
     in H.R. 5542. However, under S. 3152, the maximum annual 
     amount of qualifying equity investments is capped as follows:

------------------------------------------------------------------------
                                            Maximum qualifying equity
             Calendar year                         investment
------------------------------------------------------------------------
2002..................................  $1.0 billion
2003-2006.............................  $1.5 billion per year
------------------------------------------------------------------------


[[Page 26988]]

       Under S. 3152, if a CDE fails to sell equity interests to 
     investors up to the amount authorized within five years of 
     the authorization, then the remaining authorization is 
     canceled. The Treasury Department can authorize another CDE 
     to issue equity interests for the unused portion. No 
     authorization can be made after 2013.
       Effective date.--The provision is effective for qualified 
     investments made after December 31, 2000.


                          conference Agreement

       The conference agreement follows H.R. 5542. The conference 
     agreement also clarifies that a low-income community can 
     include a possession of the United States \23\ (and thus 
     investments in a U.S. possession may qualify for the new 
     markets tax credit).
---------------------------------------------------------------------------
     \23\ For this purpose, a U.S. possession means Puerto Rico, 
     the Virgin Islands, Guam, the Northern Mariana Islands, and 
     American Samoa.
---------------------------------------------------------------------------

   D. Increase the Low-Income Housing Tax Credit Cap and Make Other 
   Modifications (secs. 131-137 of the bill and sec. 42 of the Code)


                              Present Law

     In general
       The low-income housing tax credit may be claimed over a 10-
     year period for the cost of rental housing occupied by 
     tenants having incomes below specified levels. The credit 
     percentage for newly constructed or substantially 
     rehabilitated housing that is not Federally subsidized is 
     adjusted monthly by the Internal Revenue Service so that the 
     10 annual installments have a present value of 70 percent of 
     the total qualified expenditures. The credit percentage for 
     new substantially rehabilitated housing that is Federally 
     subsidized and for existing housing that is substantially 
     rehabilitated is calculated to have a present value of 30 
     percent qualified expenditures.
     Credit cap
       The aggregate credit authority provided annually to each 
     State is $1.25 per resident, except in the case of projects 
     that also receive financing with proceeds of tax-exempt bonds 
     issued subject to the private activity bond volume limit and 
     certain carry-over amounts.
     Expenditure test
       Generally, the building must be placed in service in the 
     year in which it receives an allocation to qualify for the 
     credit. An exception is provided in the case where the 
     taxpayer has expended an amount equal to 10-percent or more 
     of the taxpayer's reasonably expected basis in the building 
     by the end of the calendar year in which the allocation is 
     received and certain other requirements are met.
     Basis of building eligible for the credit
       Buildings receiving assistance under the HOME investment 
     partnerships act (``HOME'') are not eligible for the enhanced 
     credit for buildings located in high cost areas (i.e., 
     qualified census tracts and difficult development areas). 
     Under the enhanced credit, the 70-percent and 30-percent 
     credit are increased to a 91-percent and 39-percent credit, 
     respectfully.
       Eligible basis is generally limited to the portion of the 
     building used by qualified low-income tenants for residential 
     living and some common areas.
     State allocation plan
       Each State must develop a plan for allocating credits and 
     such plan must include certain allocation criteria including: 
     (1) project location; (2) housing needs characteristics; (3) 
     project characteristics; (4) sponsor characteristics; (5) 
     participation of local tax-exempts; (6) tenant populations 
     with special needs; and (7) public housing waiting lists. The 
     State allocation plan must also give preference to housing 
     projects: (1) that serve the lowest income tenants; and (2) 
     that are obligated to serve qualified tenants for the longest 
     periods.
     Credit administration
       There are no explicit requirements that housing credit 
     agencies perform a comprehensive market study of the housing 
     needs of the low-income individuals in the area to be served 
     by the project, nor that such agency conduct site visits to 
     monitor for compliance with habitability standards.
     Stacking rule
       Authority to allocate credits remains at the State (as 
     opposed to local) government level unless State law provides 
     otherwise.\24\ Generally, credits may be allocated only from 
     volume authority arising during the calendar year in which 
     the building is placed in service, except in the case of: (1) 
     credits claimed on additions to qualified basis; (2) credits 
     allocated in a later year pursuant to an earlier binding 
     commitment made no later than the year in which the building 
     is placed in service; and (3) carryover allocations.
---------------------------------------------------------------------------
     \24\For example, constitutional home rule cities in Illinois 
     are guaranteed their proportionate share of the $1.25 amount, 
     based on their population relative to that of the State as a 
     whole.
---------------------------------------------------------------------------
       Each State annually receives low-income housing credit 
     authority equal to $1.25 per State resident for allocation to 
     qualified low-income projects.\25\ In addition to this $1.25 
     per resident amount, each State's ``housing credit ceiling'' 
     includes the following amounts: (1) the unused State housing 
     credit ceiling (if any) of such State for the preceding 
     calendar year; \26\ (2) the amount of the State housing 
     credit ceiling (if any) returned in the calendar year; \27\ 
     and (3) the amount of the national pool (if any) allocated to 
     such State by the Treasury Department.
---------------------------------------------------------------------------
     \25\A State's population, for these purposes, is the most 
     recent estimate of the State's population released by the 
     Bureau of the Census before the beginning of the year to 
     which the limitation applies. Also, for these purposes, the 
     District of Columbia and the U.S. possessions (i.e., Puerto 
     Rico, the Virgin Islands, Guam, the Northern Marianas and 
     American Samoa) are treated as States.
     \26\ The unused State housing credit ceiling is the amount 
     (if positive) of the previous year's annual credit limitation 
     plus credit returns less the credit actually allocated in 
     that year.
     \27\ Credit returns are the sum of any amounts allocated to 
     projects within a State which fail to become a qualified low-
     income housing project within the allowable time period plus 
     any amounts allocated to a project within a State under an 
     allocation which is canceled by mutual consent of the housing 
     credit agency and the allocation recipient.
---------------------------------------------------------------------------
       The national pool consists of States' unused housing credit 
     carryovers. For each State, the unused housing credit 
     carryover for a calendar year consists of the excess (if any) 
     of the unused State housing credit ceiling for such year over 
     the excess (if any) of the aggregate housing credit dollar 
     amount allocated for such year over the sum of $1.25 per 
     resident and the credit returns for such year. The amounts in 
     the national pool are allocated only to a State which 
     allocated its entire housing credit ceiling for the preceding 
     calendar year, and requested a share in the national pool not 
     later than May 1 of the calendar year. The national pool 
     allocation to qualified States is made on a pro rata basis 
     equivalent to the fraction that a State's population enjoys 
     relative to the total population of all qualified States for 
     that year.
       The present-law stacking rule provides that a State is 
     treated as using its annual allocation of credit authority 
     ($1.25 per State resident) and any returns during the 
     calendar year followed by any unused credits carried forward 
     from the preceding year's credit ceiling and finally any 
     applicable allocations from the National pool.


                               house bill

       No provision. However, H.R. 5542 makes the following 
     changes in the low-income housing credit.
     Credit cap
       The bill increases the per-capita low-income housing credit 
     cap from $1.25 per capita to $1.50 per capita in calendar 
     year 2001 and to $1.75 per capita in calendar year 2002. 
     Beginning in calendar year 2003, the per-capita portion of 
     the credit cap will be adjusted annually for inflation. For 
     small States, a minimum annual cap of $2 million is provided 
     for calendar years 2001 and 2002. Beginning in calendar year 
     2003, the small State minimum is adjusted for inflation.
     Expenditure test
       The bill allows a building which receives an allocation in 
     the second half of a calendar to qualify under the 10-percent 
     test if the taxpayer expends an amount equal to 10-percent or 
     more of the taxpayer's reasonably expected basis in the 
     building within six months of receiving the allocation 
     regardless of whether the 10-percent test is met by the end 
     of the calendar year.
     Basis of building eligible for the credit
       The bill makes three changes to the basis rules of the 
     credit. First, the definition of qualified census tracts for 
     purposes of the enhanced credit is expanded to include any 
     census tracts with a poverty rate of 25 percent or more. 
     Second, the bill extends the credit to a portion of the 
     building used as a community service facility not in excess 
     of 10 percent of the total eligible basis in the building. A 
     community service facility is defined as any facility 
     designed to serve primarily individuals whose income is 60 
     percent or less of area median income. Third, the bill 
     provides that assistance received under the Native American 
     Housing Assistance and Self-Determination Act of 1996 is not 
     taken into account in determining whether a building is 
     Federally subsidized for purposes of the credit. This allows 
     such buildings to qualify for something other than the 30-
     percent credit generally applicable to Federally subsidized 
     buildings.
     State allocation plans
       The bill strikes the plan criteria relating to 
     participation of local tax-exempts, replacing it with two 
     other criteria: tenant populations of individuals with 
     children and projects intended for eventual tenant ownership. 
     It also provides that the present-law criteria relating to 
     sponsor characteristics include whether the project involves 
     the use of existing housing as part of a community 
     revitalization plan. The bill adds a third category of 
     housing projects to the preferential list, for projects 
     located in qualified census tracts which contribute to a 
     concerted community revitalization plan.
     Credit administration
       The bill requires a comprehensive market study of the 
     housing needs of the low-income individuals in the area to be 
     served by the project and a written explanation available

[[Page 26989]]

     to the general public for any allocation not made in 
     accordance with the established priorities and selection 
     criteria of the housing credit agency. They also require site 
     inspections by the housing credit agency to monitor 
     compliance with habitability standards applicable to the 
     project.
     Stacking rule
       The bill modifies the stacking rule so that each State is 
     treated as using its allocation of the unused State housing 
     credit ceiling (if any) from the preceding calendar before 
     the current year's allocation of credit (including any 
     credits returned to the State) and then finally any National 
     pool allocations.
     Effective date
       The provision is generally effective for calendar years 
     beginning after December 31, 2000, and buildings placed-in-
     service after such date in the case of projects that also 
     receive financing with proceeds of tax-exempt bonds subject 
     to the private activity bond volume limit which are issued 
     after such date


                            Senate Amendment

     Credit cap
       No provision. However, S. 3152 increases the annual State 
     credit caps from $1.25 to $1.75 per resident beginning in 
     2001. Also, beginning in 2001 the per capita cap for each 
     State is modified so that small population States are given a 
     minimum of $2 million of annual credit cap. The $1.75 per 
     capita cap and the $2 million amount are indexed for 
     inflation beginning in calendar 2002.
     Expenditure test
       No provision.
     Basis of building eligible for the credit
       The provisions in S. 3152 relating to the treatment of 
     buildings receiving assistance under the Native American 
     Housing Assistance and Self-Determination Act of 1996 is the 
     same as one of the provisions in H.R. 5542.
     State allocation plans
       No provision.
     Credit administration
       No provision.
     Stacking rule
       Same as H.R. 5542.
     Effective date
       The provisions are effective for calendar years beginning 
     after December 31, 2000 and buildings placed-in-service after 
     such date in the case of projects that also receive financing 
     with proceeds of tax-exempt bonds which are issued after such 
     date subject to the private activity bond volume limit.


                          Conference Agreement

       The conference agreement follows H.R. 5542.

 E. Accelerate Scheduled Increase in State Volume Limits on Tax-Exempt 
 Private Activity Bonds (sec. 151 of the bill and sec. 146 of the Code)


                              Present Law

       Interest on bonds issued by States and local governments is 
     excluded from income if the proceeds of the bonds are used to 
     finance activities conducted and paid for by the governmental 
     units (sec. 103). Interest on bonds issued by these 
     governmental units to finance activities carried out and paid 
     for by private persons (``private activity bonds'') is 
     taxable unless the activities are specified in the Internal 
     Revenue Code. Private activity bonds on which interest may be 
     tax-exempt include bonds for privately operated 
     transportation facilities (airports, docks and wharves, mass 
     transit, and high speed rail facilities), privately owned 
     and/or provided municipal services (water, sewer, solid waste 
     disposal, and certain electric and heating facilities), 
     economic development (small manufacturing facilities and 
     redevelopment in economically depressed areas), and certain 
     social programs (low-income rental housing, qualified 
     mortgage bonds, student loan bonds, and exempt activities of 
     charitable organizations described in sec. 501(c)(3)).
       The volume of tax-exempt private activity bonds that States 
     and local governments may issue for most of these purposes in 
     each calendar year is limited by State-wide volume limits. 
     The current annual volume limits are $50 per resident of the 
     State or $150 million if greater. The volume limits do not 
     apply to private activity bonds to finance airports, docks 
     and wharves, certain governmentally owned, but privately 
     operated solid waste disposal facilities, certain high speed 
     rail facilities, and to certain types of private activity 
     tax-exempt bonds that are subject to other limits on their 
     volume (qualified veterans' mortgage bonds and certain 
     ``new'' empowerment zone and enterprise community bonds).
       The current annual volume limits that apply to private 
     activity tax-exempt bonds increase to $75 per resident of 
     each State or $225 million, if greater, beginning in calendar 
     year 2007. The increase is, ratably phased in, beginning with 
     $55 per capita or $165 million, if greater, in calendar year 
     2003.


                               House Bill

       No provision. However, H.R. 5542 increases the State volume 
     limits from the greater of $50 per resident or $150 million 
     to the greater of $62.50 per resident or $187.5 million in 
     calendar year 2001. The volume limit will increase further, 
     to the greater of $75 per resident or $225 million in 
     calendar year 2002. Beginning in calendar year 2003, the 
     volume limit will be adjusted annually for inflation.
       Effective date.--The provision is effective beginning in 
     calendar year 2001.


                            Senate Amendment

       No provision. However, S. 3152 increases the present-law 
     annual State private activity bond volume limits to $75 per 
     resident of each State or $225 million (if greater) beginning 
     in calendar year 2001. In addition, the $75 per resident and 
     the $225 million State limit will be indexed for inflation 
     beginning in calendar year 2002.
       Effective date.--The provisions are effective beginning in 
     calendar year 2001.


                          Conference Agreement

       The conference agreement follows H.R. 5542.

F. Extension and Modification to Expensing of Environmental Remediation 
         Costs (sec. 152 of the bill and sec. 198 of the Code)


                              present law

       Taxpayers can elect to treat certain environmental 
     remediation expenditures that would otherwise be chargeable 
     to capital account as deductible in the year paid or incurred 
     (sec. 198). The deduction applies for both regular and 
     alternative minimum tax purposes. The expenditure must be 
     incurred in connection with the abatement or control of 
     hazardous substances at a qualified contaminated site.
       A ``qualified contaminated site'' generally is any property 
     that (1) is held for use in a trade or business, for the 
     production of income, or as inventory; (2) is certified by 
     the appropriate State environmental agency to be located 
     within a targeted area; and (3) contains (or potentially 
     contains) a hazardous substance (so-called ``brownfields''). 
     Targeted areas are defined as: (1) empowerment zones and 
     enterprise communities as designated under present law; (2) 
     sites announced before February 1997, as being subject to one 
     of the 76 Environmental Protection Agency (``EPA'') 
     Brownfields Pilots; (3) any population census tract with a 
     poverty rate of 20 percent or more; and (4) certain 
     industrial and commercial areas that are adjacent to tracts 
     described in (3) above. However, sites that are identified on 
     the national priorities list under the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 cannot qualify as targeted areas.
       Eligible expenditures are those paid or incurred before 
     January 1, 2002.


                               house bill

       No provision. However, H.R. 5542 extends the expiration 
     date for eligible expenditures to include those paid or 
     incurred before January 1, 2004.
       In addition, the bill eliminates the targeted area 
     requirement, thereby, expanding eligible sites to include any 
     site containing (or potentially containing) a hazardous 
     substance that is certified by the appropriate State 
     environmental agency. However, expenditures undertaken at 
     sites that are identified on the national priorities list 
     under the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 would continue to not qualify as 
     eligible expenditures.
       By extending and expanding section 198, the bill is not 
     intended to displace the general tax law principle regarding 
     expensing versus capitalization of expenditures which 
     continues to apply to environmental remediation efforts not 
     specifically covered under section 198.
       Effective date.--The provision to extend the expiration 
     date if effective upon the date of enactment. The provision 
     to expand the class of eligible sites is effective for 
     expenditures paid or incurred after the date of enactment.


                            senate amendment

       No provision. However, S. 3152 includes a provision 
     identical to that of the House bill provision.


                          conference agreement

       The conference agreement follows H.R. 5542.

G. Expansion of District of Columbia Homebuyer Tax Credit (sec. 153 of 
                  the bill and sec. 1400C of the Code)


                              present law

       First-time homebuyers of a principal residence in the 
     District of Columbia are eligible for a nonrefundable tax 
     credit of up to $5,000 of the amount of the purchase price. 
     The $5,000 maximum credit applies both to individuals and 
     married couples. Married individuals filing separately can 
     claim a maximum credit of $2,500 each. The credit phases out 
     for individual taxpayers with adjusted gross income between 
     $70,000 and $90,000 ($110,000-$130,000 for joint filers). For 
     purposes of eligibility, ``first-time homebuyer'' means any 
     individual if such individual did not have a present 
     ownership interest in a principal residence in the District 
     of Columbia in the one year period ending on the date of the 
     purchase of the residence to which the credit applies. The 
     credit is scheduled to expire for residences purchased after 
     December 31, 2001.


                               house bill

       No provision. However, H.R. 5542 extends the first-time 
     homebuyer credit for two years (through December 31, 2003).

[[Page 26990]]

       Effective date.--The provision is effective on the date of 
     enactment.


                            senate amendment

       No provision. However, S. 3152 includes a provision that 
     extends the first-time homebuyer credit for two years, 
     through December 31, 2003. The provision also extends the 
     phase-out range for married individuals filing a joint return 
     so that it is twice that of individuals. Thus, under the 
     provision, the District of Columbia homebuyer credit is 
     phased out for joint filers with adjusted gross income 
     between $140,000 and $180,000.
       Effective date.--The provision is effective for taxable 
     years beginning after December 31, 2000.


                          conference agreement

       The conference agreement follows H.R. 5542.

 H. Extension of D.C. Enterprise Zone (sec. 154 of the bill and secs. 
                   1400, 1400A and 1400B of the Code)


                              present law

       The Taxpayer Relief Act of 1997 designated certain 
     economically depressed census tracts within the District of 
     Columbia as the District of Columbia Enterprise Zone (the 
     ``D.C. Zone''), within which businesses and individual 
     residents are eligible for special tax incentives. The D.C. 
     Zone designation remains in effect for the period from 
     January 1, 1998, through December 31, 2002. In addition to 
     the tax incentives available with respect to a Round I 
     empowerment zone (including a 20-percent wage credit), the 
     D.C. Zone also has a zero-percent capital gains rate that 
     applies to gain from the sale of certain qualified D.C. Zones 
     assets acquired after December 31, 1997 and held for more 
     than five years.
       With respect to the tax-exempt financing incentives, the 
     D.C. Zone generally is treated like a Round I empowerment 
     zone; therefore, the issuance of such bonds is subject to the 
     District of Columbia's annual private activity bond volume 
     limitation. However, the aggregate face amount of all 
     outstanding qualified enterprise zone facility bonds per 
     qualified D.C. Zone business may not exceed $15 million 
     (rather than $3 million, as is the case for Round I 
     empowerment zones).\28\
---------------------------------------------------------------------------
     \28\ Section 1400A(a).
---------------------------------------------------------------------------


                               house bill

       No provision.


                            senate amendment

       No provision. However, S. 3152 includes a provision that 
     extends the D.C. Zone designation through December 31, 2006.


                          conference agreement

       The conference agreement follows S. 3152, except that the 
     D.C. Zone designation is extended for one year (through 
     December 31, 2003).

   I. Extension and Modification of Enhanced Deduction for Corporate 
    Donations of Computer Technology (sec. 155 of the bill and sec. 
                         170(e)(6) of the Code)


                              present law

       The maximum charitable contribution deduction that may be 
     claimed by a corporation for any one taxable year is limited 
     to 10 percent of the corporation's taxable income for that 
     year (disregarding charitable contributions and with certain 
     other modifications) (sec. 170(b)(2)). Corporations also are 
     subject to certain limitations based on the type of property 
     contributed. In the case of a charitable contribution of 
     short-term gain property, inventory, or other ordinary income 
     property, the amount of the deduction generally is limited to 
     the taxpayer's basis (generally, cost) in the property. 
     However, special rules in the Code provide an augmented 
     deduction for certain corporate contributions. Under these 
     special rules, the amount of the augmented deduction is equal 
     to the lesser of (1) the basis of the donated property plus 
     one-half of the amount of ordinary income that would have 
     been realized if the property had been sold, or (2) twice the 
     basis of the donated property.
       Section 170(e)(6) allows corporate taxpayers an augmented 
     deduction for qualified contributions of computer technology 
     and equipment (i.e., computer software, computer or 
     peripheral equipment, and fiber optic cable related to 
     computer use) to be used within the United States for 
     educational purposes in grades K-12. Eligible donees are: (1) 
     any educational organization that normally maintains a 
     regular faculty and curriculum and has a regularly enrolled 
     body of pupils in attendance at the place where its 
     educational activities are regularly carried on; and (2) tax-
     exempt charitable organizations that are organized primarily 
     for purposes of supporting elementary and secondary 
     education. A private foundation also is an eligible donee, 
     provided that, within 30 days after receipt of the 
     contribution, the private foundation contributes the property 
     to an eligible donee described above.
       Qualified contributions are limited to gifts made no later 
     than two years after the date the taxpayer acquired or 
     substantially completed the construction of the donated 
     property. In addition, the original use of the donated 
     property must commence with the donor or the donee. 
     Accordingly, qualified contributions generally are limited to 
     property that is no more than two years old. Such donated 
     property could be computer technology or equipment that is 
     inventory or depreciable trade or business property in the 
     hands of the donor.
       Donee organizations are not permitted to transfer the 
     donated property for money or services (e.g., a donee 
     organization cannot sell the computers). However, a donee 
     organization may transfer the donated property in furtherance 
     of its exempt purposes and be reimbursed for shipping, 
     installation, and transfer costs. For example, if a 
     corporation contributes computers to a charity that 
     subsequently distributes the computers to several elementary 
     schools in a given area, the charity could be reimbursed by 
     the elementary schools for shipping, transfer, and 
     installation costs.
       The special treatment applies only to donations made by C 
     corporations. S corporations, personal holding companies, and 
     service organizations are not eligible donors.
       The provision is scheduled to expire for contributions made 
     in taxable years beginning after December 31, 2000.


                               house bill

       No provision. However, H.R. 5542 includes a provision that 
     extends the current enhanced deduction for donations of 
     computer technology and equipment through December 31, 2003, 
     and expands the enhanced deduction to include donations to 
     public libraries. H.R. 5542 provides that qualified 
     contributions include gifts made no later than three years 
     after the date the taxpayer acquired or substantially 
     completed the construction of the donated property.
       Effective date.--The provision is effective for 
     contributions made after December 31, 2000.


                            senate amendment

       No provision. However, S. 3152 includes a provision that 
     extends the current enhanced deduction for donations of 
     computer technology and equipment through December 31, 2003. 
     In addition, S. 3152 expands the enhanced deduction to 
     include donations to public libraries.
       Effective date.--The provision is effective upon the date 
     of enactment.


                          conference agreement

       The conference agreement follows H.R. 5542 with a 
     modification that contributions may be made by a person that 
     has reacquired the property (i.e., if a computer manufacturer 
     reacquires the computer from the original user and then 
     contributes it). Such reacquired property must be contributed 
     within 3 years of the date the original construction of the 
     property was substantially completed. The conferees 
     anticipate that for purposes of computing the enhanced 
     deduction for a reacquirer, the Secretary will provide 
     guidance in determining the retail value of donated computers 
     (or other computer technology) in situations in which the 
     number of actual retail sales of used computers similar to 
     those donated is small in relation to the number of such 
     computers that are donated.
       In addition, the conference agreement provides that the 
     Secretary may prescribe by regulation standards to ensure 
     that the donations meet minimum functionality and suitability 
     standards for educational purposes.

J. Treatment of Indian Tribes as Non-Profit Organizations and State or 
    Local Governments For Purposes of the Federal Unemployment Tax 
      (``FUTA'') (sec. 156 of the bill and sec. 3306 of the Code)


                              present law

       Present law imposes a net tax on employers equal to 0.8 
     percent of the first $7,000 paid annually to each employee. 
     The current gross FUTA tax is 6.2 percent, but employers in 
     States meeting certain requirements and having no delinquent 
     loans are eligible for a 5.4 percent credit making the net 
     Federal tax rate 0.8 percent. Both non-profit organizations 
     and State and local governments are not required to pay FUTA 
     taxes. Instead they may elect to reimburse the unemployment 
     compensation system for unemployment compensation benefits 
     actually paid to their former employees. Generally, Indian 
     tribes are not eligible for the reimbursement treatment 
     allowable to non-profit organizations and State and local 
     governments.


                               house bill

       No provision. However, H.R. 5542 provides that an Indian 
     tribe (in including any subdivision, subsidiary, or business 
     enterprise chartered and wholly owned by an Indian tribe) is 
     treated like a non-profit organization or State or local 
     government for FUTA purposes (i.e., given an election to 
     choose the reimbursement treatment).
       Effective date.--The provision generally is effective with 
     respect to service performed beginning on or after the date 
     of enactment. Under a transition rule, service performed in 
     the employ of an Indian tribe is not treated as employment 
     for FUTA purposes if: (1) it is service which is performed 
     before the date of enactment and with respect to which FUTA 
     tax has not been paid; and (2) such Indian tribe reimburses a 
     State unemployment fund for unemployment benefits paid for 
     service attributable to such tribe for such period.


                            senate amendment

       No provision. However, S. 3152 is the same as H.R. 5542.

[[Page 26991]]




                          conference agreement

       The conference agreement follows H.R. 5542 and S. 3152.

             TITLE II. MEDICAL SAVINGS ACCOUNTS (``MSAs'')

            (Sec. 201 of the bill and Sec. 220 of the Code)


                              Present Law

       Within limits, contributions to a medical savings account 
     (``MSA'') \29\ are deductible in determining adjusted gross 
     income (``AGI'') if made by an eligible individual and are 
     excludable from gross income and wages for employment tax 
     purposes if made by the employer of an eligible individual. 
     Earnings on amounts in an MSA are not currently taxable. 
     Distributions from an MSA for medical expenses are not 
     taxable. Distributions not used for medical expenses are 
     taxable. In addition, distributions not used for medical 
     expenses are subject to an additional 15-percent tax unless 
     the distribution is made after age 65, death, or disability.
---------------------------------------------------------------------------
     \29\ In general, an MSA is a trust or custodial account 
     created exclusively for the benefit of the account holder and 
     is subject to rules similar to those applicable to individual 
     retirement arrangements. The trustee of an MSA can be a bank, 
     insurance company, or other person who demonstrates to the 
     satisfaction of the Secretary that the manner in which such 
     person will administer the trust will be consistent with 
     applicable requirements.
---------------------------------------------------------------------------
       MSAs are available to self-employed individuals \30\ and to 
     employees covered under an employer-sponsored high deductible 
     plan of a small employer. An employer is a small employer if 
     it employed, on average, no more than 50 employees on 
     business day during either the preceding or the second 
     preceding year.
---------------------------------------------------------------------------
     \30\ Self-employed individuals include more than 2-percent 
     shareholders of S corporations who are treated as partners 
     for purposes of fringe benefit rules pursuant to section 
     1372. Self-employed individuals are eligible for an MSA 
     regardless of the size of the entity for which the individual 
     performs services.
---------------------------------------------------------------------------
       In order for an employee of a small employer to be eligible 
     to make MSA contributions (or to have employer contributions 
     made on his or her behalf), the employee must be covered 
     under an employer-sponsored high deductible health plan (see 
     the definition below) and must not be covered under any other 
     health plan (other than a plan that provides certain 
     permitted coverage).
       Similarly, in order to be eligible to make contributions to 
     an MSA, a self-employed individual must be covered under a 
     high deductible health plan and no other health plan (other 
     than a plan that provides certain permitted coverage). A 
     self-employed individual is not an eligible individual (by 
     reason of being self-employed) if the high deductible plan 
     under which the individual is covered is established or 
     maintained by an employer of the individual (or the 
     individual's spouse).
       The maximum annual contribution that can be made to an MSA 
     for a year is 65 percent of the deductible under the high 
     deductible plan in the case of individual coverage and 75 
     percent of the deductible in the case of family coverage.
       A high deductible plan is a health plan with an annual 
     deductible of at least $1,550 and no more than $2,350 in the 
     case of individual coverage and at least $3,100 and no more 
     than $4,650 in the case of family coverage. In addition, the 
     maximum out-of-pocket expenses with respect to allowed costs 
     (including the deductible) must be no more than $3,100 in the 
     case of individual coverage and no more than $5,700 in the 
     case of family coverage.\31\ A plan does not fail to qualify 
     as a high deductible plan merely because it does not have a 
     deductible for preventive care as required by State law. A 
     plan does not qualify as a high deductible health plan if 
     substantially all of the coverage under the plan is for 
     permitted coverage. In the case of a self-insured plan, the 
     plan must in fact be insurance (e.g., there must be 
     appropriate risk shifting) and not merely a reimbursement 
     arrangement.
---------------------------------------------------------------------------
     \31\ These dollar amounts are for 2000. These amounts are 
     indexed for inflation in $50 increments.
---------------------------------------------------------------------------
       The number of taxpayers benefiting annually from an MSA 
     contribution is limited to a threshold level (generally 
     750,000 taxpayers). If it is determined in a year that the 
     threshold level has been exceeded (called a ``cut-off'' year) 
     then, in general, for succeeding years during the 4-year 
     pilot period 1997-2000, only those individuals who (1) made 
     an MSA contribution or had an employer MSA contribution for 
     the year or a preceding year (i.e., are active MSA 
     participants) or (2) are employed by a participating 
     employer, is eligible for an MSA contribution. In determining 
     whether the threshold for any year has been exceeded. MSAs of 
     individuals who were not covered under a health insurance 
     plan for the six month period ending on the date on which 
     coverage under a high deductible plan commences would not be 
     taken into account.\32\ However, if the threshold level is 
     exceeded in a year, previously uninsured individuals are 
     subject to the same restriction on contributions in 
     succeeding years as other individuals. That is, they would 
     not be eligible for an MSA contribution for a year following 
     a cut-off year unless they are an active MSA participant 
     (i.e., had an MSA contribution for the year or a preceding 
     year) or are employed by a participating employer.
---------------------------------------------------------------------------
     \32\ permitted coverage does not constitute coverage under a 
     health insurance plan for this purpose.
---------------------------------------------------------------------------
       The number of MSAs established has not exceeded the 
     threshold level.
       After December 31, 2000, no new contributions may be made 
     to MSAs except by or on behalf of individuals who previously 
     had MSA contributions and employees who are employed by a 
     participating employer. An employer is a participating 
     employer if (1) the employer made any MSA contributions for 
     any year to an MSA on behalf of employees or (2) at least 20 
     percent of the employees covered under a high deductible plan 
     made MSA contributions of at least $100 in the year 2000.
       Self-employed individuals who made contributions to an MSA 
     during the period 1997-2000 also may continue to make 
     contributions after 2000.


                               House Bill

       No provision. However, H.R. 5542 extends the MSA program 
     through 2002. The same rules that apply to the limit on MSAs 
     for 1999 apply to 2000 and 2001. Thus, for example, the 
     threshold level in those years is 750,000 taxpayers.
       Effective date.--The provision is effective on the date of 
     enactment.


                            Senate Amendment

       No provision.


                          Conference Agreement

       The conference report follows H.R. 5542, except that MSAs 
     are renamed as Archer MSAs. The conference agreement 
     clarifies that, as under present law, the cap and reporting 
     requirements do not apply for 2000.

     TITLE III. ADMINISTRATIVE AND TECHNICAL CORRECTIONS PROVISIONS

                 Subtitle A. Administrative Provisions

 A. Exempt Certain Reports From Elimination Under the Federal Reports 
       Elimination and Sunset Act of 1995 (sec. 301 of the bill)


                              present law

       Section 303 of the Federal Reports Elimination and Sunset 
     Act of 1995 eliminates many periodic Federal reporting 
     requirements, effective May 15, 2000.


                               house bill

       No provision. However, H.R. 5542 exempts certain reports 
     from elimination and sunset pursuant to the Federal Reports 
     Elimination and Sunset Act of 1995.


                            senate amendment

       No provision.


                          conference agreement

       The conference agreement follows H.R. 5542.

   B. Extension of Deadlines for IRS Compliance With Certain Notice 
 Requirements (sec. 302 of the bill and secs. 6631 and 6751(a) of the 
                                 Code)


                              present law

       The Internal Revenue Service Restructuring and Reform Act 
     of 1998 (``IRS Restructing Act of 1998'') imposed several 
     notice requirements relating to penalties, interest and 
     installment agreements. Section 6715 of the Code, added by 
     section 3306 of the IRS Restructing Act of 1998, requires 
     that each notice imposing a penalty include the name of the 
     penalty, the Code section under which the penalty is imposed, 
     and a computation of the penalty,\33\ This requirement 
     applies to notices issued, and penalties assessed, after 
     December 31, 2000.\34\
---------------------------------------------------------------------------
     \33\ Sec. 6715(a).
     \34\ P.L. 105-206, sec. 3306.
---------------------------------------------------------------------------
       Section 6631 of the Code, added by section 3308 of the IRS 
     Restructuring Act of 1998, requires that every IRS notice 
     sent to an individual taxpayer that includes an amount of 
     interest required to be paid by the taxpayer also include a 
     detailed computation of the interest charged and a citation 
     of the Code section under which such interest is imposed. The 
     provision is effective for notices issued after December 31, 
     2000.
       Section 3506 of the IRS Restructuring Act of 1998 requires 
     the IRS to send every taxpayer in an installment agreement an 
     annual statement of the initial balance owed, the payments 
     made during the year, and the remaining balance. The 
     provision became effective on July 1, 2000.


                               house bill

       No provision. However, H.R. 5542 extend the deadlines for 
     complying with the penalty, interest, and installment 
     agreement notice requirements. Specifically, the annual 
     installment agreement notice requirement is extended from 
     July 1, 2000, to September 1, 2001. The deadlines for 
     complying with the notice requirements relating to the 
     computation of penalties and interest \35\ are both extended 
     to June 30, 2001. In addition, for penalty notices issued 
     after June 30, 2001, and before July 1, 2003, the notice 
     requirements will be treated as met if the notice contains a 
     telephone number at which the taxpayer can request a copy of 
     the taxpayer's assessment and payment history with respect to 
     such penalty. Similarly, for interest notices issued after 
     June 30, 2001, and before July 1, 2003, the notice 
     requirements will be treated as met if such notice

[[Page 26992]]

     contains a telephone number at which the taxpayer can request 
     a copy of the taxpayer's payment history relating to interest 
     amounts included in such notice.
---------------------------------------------------------------------------
     \35\ Secs. 6715(a) and 6631.
---------------------------------------------------------------------------
       Effective date.--The provision is effective on the date of 
     enactment.


                            Senate amendment

       No provision.


                          Conference agreement

       The conference agreement follows H.R. 5542.

 C. Extension of Authority for Undercover Operations (sec. 303 of the 
                    bill and sec. 7608 of the Code)


                              present law

       The Anti-Drug Abuse Act of 1988 exempted IRS undercover 
     operations from the otherwise applicable statutory 
     restrictions controlling the use of Government funds (which 
     generally provide that all receipts must be deposited in the 
     general fund of the Treasury and all expenses be paid out of 
     appropriated funds). In general, the exemption permits the 
     IRS to ``churn'' the income earned by an undercover operation 
     to pay additional expenses incurred in the undercover 
     operation. The IRS is required to conduct a detailed 
     financial audit of large undercover operations in which the 
     IRS is churning funds and to provide an annual audit report 
     to the Congress on all such large undercover operations. The 
     exemption originally expired on December 31, 1989, and was 
     extended by the Comprehensive Crime Control Act of 1990 to 
     December 31, 1991. In the Taxpayer Bill of Rights II (Public 
     Law 104-168), the authority to churn funds from undercover 
     operations was extended for five years, through 2000.


                               house bill

       No provision. However, H.R. 5542 extends the authority of 
     the IRS to ``churn'' the income earned from undercover 
     operations for an additional five years, through 2005.
       Effective date.--The provision is effective on the date of 
     enactment.


                            Senate amendment

       No provision.


                          conference agreement

       The conference agreement follows H.R. 5542.

D. Competent Authority and Pre-Filing Agreements (sec. 304 of the bill 
          and secs. 6103, 6110, and new sec. 6105 of the Code)


                              present law

     Section 6103
       Section 6103 of the Code sets forth the general rule that 
     returns and return information are confidential. A return is 
     any tax return, information return, declaration of estimated 
     tax, or claim for refund filed under the Code on behalf of or 
     with respect to any person. The term return also includes any 
     amendment or supplement, including supporting schedules or 
     attachments or lists, which are supplemental to or are part 
     of a filed return. Return information is defined broadly. It 
     includes the following information:
       A taxpayer's identity, the nature, source or amount of 
     income, payments, receipts, deductions, exemptions, credits, 
     assets, liabilities, net worth, tax liability, tax withheld, 
     deficiencies, over assessments, or tax payments;
       Whther the taxpayer's return was, is being, or will be 
     examined or subject to other investigations or processing;
       Any other data, received by, recorded by, prepared by, 
     furnished to, or collected by the Secretary with respect to a 
     return or with respect to the determination of the existence, 
     or possible existence, of liability (or the amount thereof) 
     of any person under this title for any tax, penalty, 
     interest, fine, forfeiture, or other imposition, or 
     offense;\36\
---------------------------------------------------------------------------
     \36\ Sec. 6103(b)(2)(A).
---------------------------------------------------------------------------
       Any part of any written determination or any background 
     file document relating to such written determination which is 
     not open to the public inspection under section 6110,\37\ and
---------------------------------------------------------------------------
     \37\ Sec. 6103(b)(2)(B).
---------------------------------------------------------------------------
       Any advance pricing agreement entered into by a taxpayer 
     and the Secretary and any background information related to 
     the agreement or any application for an advance pricing 
     agreement.
       The term ``return information'' does not include data in a 
     form that cannot be associated with or otherwise identify, 
     directly or indirectly, a particular taxpayer.
     Secrecy of information exchanged under tax treaties
       U.S. tax treaties typically contain articles governing the 
     exchange of information. These articles generally provide for 
     the exchange of information between the tax authorities 
     articles generally provide for the exchange of information 
     between the tax authorities of the two countries when such 
     information is necessary for carrying out provisions of the 
     treaty or of the countries' domestic tax laws. Individuals 
     referred to as ``competent authorities'' are designated by 
     each country to make written requests for information and to 
     receive information.\38\
---------------------------------------------------------------------------
     \38\ The U.S. competent authority is the Secretary of the 
     Treasury or his delegate. The U.S. competent authority 
     function has been delegated to the Commissioner of Internal 
     Revenue, who has redelegate the authority to the Director, 
     International. On interpretive issues, the latter acts with 
     the concurrence of the Associate Chief Counsel 
     (International) of the IRS.
---------------------------------------------------------------------------
       The exchange of information articles typically cover 
     information relating to taxes to which the treaty applies, 
     but can also apply to other taxes( e.g., excise taxes) not 
     covered by the treaty. Many of the treaties permit the 
     exchange of information even if the taxpayer involved is not 
     a resident of one of the treaty countries. The exchange of 
     information articles may be similar to, or represent a 
     variation on, Article 26 of the 1996 U.S. model income tax 
     treaty.
       Information that is received under the exchange of 
     information articles is subject to secrecy clauses contained 
     in the treaties. In this regard, the country requesting 
     information under the treaties typically is require to treat 
     any information received as secret in the same manner as 
     information obtained under its domestic laws. In general, 
     disclosure is not permitted other than to persons or 
     authorities involved in the administration assessment 
     collection or enforcement of taxes to which the treaty 
     applies. For example, disclosure generally can be made to 
     legislative bodies, such as the tax-writing committees of the 
     Congress, and the General Accounting Officer for purposes of 
     overseeing the administration of U.S. tax laws.
       In addition to the exchange of information articles in U.S. 
     tax treaties, exchange of information provisions are 
     contained in tax information exchange agreements entered into 
     between the United States and another country.\39\ In 
     addition, information may be exchanged pursuant to the 
     Convention on Mutual Administrative Assistance in Tax Matters 
     developed by the Council of Europe and the Organization for 
     Economic Cooperation and Development (the ``Multilateral 
     Mutual Assistance Convention''), which limits the use of 
     exchanged information and permits disclosure of such 
     information only with the prior authorization of the 
     competent authority of the country providing the 
     information.\40\ The United States has also entered into a 
     number of implementation and coordination agreements with 
     possessions that provide for the exchange of tax information. 
     Moreover, the United States has entered into various mutual 
     legal assistance treaties with other countries, some of which 
     can be used to obtain tax information in criminal 
     investigations.
---------------------------------------------------------------------------
     \39\ Sections 274(h)(6)(C) and 927(e)(3) specifically provide 
     the Secretary of the Treasury the authority to enter into tax 
     information exchange agreements. This eliminates the need for 
     Senate ratification, which is required for a tax treaty. In 
     addition, all tax information exchange agreements are 
     required to include specific non-disclosure provisions which 
     provide that ``information received by either country will be 
     disclosed only to persons or authorities (including courts 
     and administrative bodies) involved in the administration or 
     oversight of, or in the determination of appeals in respect 
     of, taxes of the United States, or the beneficiary country 
     and will be used by such persons or authorities only for such 
     purposes.'' Sec. 274(h)(6)C)(i).
     \40\ The U.S. Senate ratified the Multilateral Mutual 
     Assistance Convention, subject to certain reservations, in 
     September 1990. The Multilateral Mutual Assistance Convention 
     entered into force on April 1, 1995, and has been signed by 
     the following countries: Denmark, Finland, Iceland, the 
     Netherlands, Norway, Sweden, and the United States.
---------------------------------------------------------------------------
       Both the confidentiality provisions of section 6103, as 
     well as treaty secrecy provisions can cover return 
     information.
     Section 6110 and section 7121
       Section 6110 of the Code provides for disclosure of written 
     determinations. With certain exceptions, section 6110 makes 
     the text of any written determination the Internal Revenue 
     Service (``IRS'') issues available for pubic inspection. A 
     written determination is any ruling, determination letter, 
     technical advice memorandum, or Chief Counsel advice. The IRS 
     is required to redact certain material before making these 
     documents publicly available.\41\ Among the information to be 
     redacted is information specifically exempted from disclosure 
     by any statute (other

[[Page 26993]]

     than Title 26) that is applicable to the IRS. Once the IRS 
     makes the written determination publicly available, the 
     background file documents associated with such written 
     determination are available for public inspection upon 
     written request. Section 6110 defines ``background file 
     documents'' as any written material submitted by the taxpayer 
     or other requester in support of the request. Background file 
     documents also include any communications between the IRS and 
     persons outside the IRS concerning such written determination 
     that occur before the IRS issues the determination.
---------------------------------------------------------------------------
     \41\ For rulings, determination letters and technical advice 
     memorandum, section 6110(c) provides the following exemptions 
     from disclosure:
     (1) The names, address, and other identifying details of the 
     person to whom the written determination pertains and of any 
     other person, other than a person with respect to whom a 
     notation is made under subsection(d)(1) (relating to third 
     party contacts), identified in the written determination or 
     any background file document;
     (2) Information specifically authorized under criteria 
     established by an Executive order to be kept secret in the 
     interest of national defense or foreign policy, and which is 
     in fact properly classified pursuant to such Executive order;
     (3) Information specifically exempted from disclosure by any 
     statute (other than[Title 26] which is applicable to the 
     Internal Revenue Service;
     (4) Trade secrets and commercial or financial information 
     obtained from a person and privileges or confidential;
     (5) Information the disclosure or which would constitute a 
     clearly unwarranted invasion of personal privacy;
     (6) Information contained in or related to examination, 
     operating, or condition reports prepared by, or on behalf of, 
     or for use of an agency responsible for the regulation or 
     supervision of financial institutions; and
     (7) Geological and geophysical information and data, 
     including maps, concerning wells.
     For Chief Counsel Advice, paragraphs 2 through 7 do not 
     apply, however, material may be deleted in accordance with 
     subsections (b) and(c) of the FOIA (except that in applying 
     Exemption 3 of the FOIA, no statutory provision of the Code 
     is to be taken into account.) See sec. 6110(i)(3).
---------------------------------------------------------------------------
       Section 6110 was added to the Code in 1976. The legislative 
     history provided that a written determination would not be 
     considered a ruling, technical advice memorandum, or 
     determination letter, unless the document satisfies three 
     criteria:
       (1) The document recites the relevant facts;
       (2) The document explains the applicable provisions of law; 
     and
       (3) The document shows the application of law to the 
     facts.\42\
---------------------------------------------------------------------------
     \42\ H.R. Rep. 94-658, at 315 (1976).
---------------------------------------------------------------------------
       The legislative history further provided that section 6110 
     ``does not require public disclosure of a closing agreement 
     entered into between the IRS and a taxpayer which finally 
     determines the taxpayer's tax liability with respect to a 
     taxable year... Your committee understands that a closing 
     agreement is generally the result of a negotiated settlement 
     and, as such, does not necessarily represent the IRS view of 
     the law. Your committee intends, however, that the closing 
     agreement exception is not to be used as a means of avoiding 
     pubic disclosure of determinations which, under present 
     practice, would be issued in a form which would be open to 
     pubic inspection [under the bill].''\43\
---------------------------------------------------------------------------
     \43\ Id. at 316.
---------------------------------------------------------------------------
       Closing agreements are entered into under the authority of 
     section 7121. Closing agreements finally and conclusively 
     settle a tax between the IRS and a taxpayer. Closing 
     agreements may: (1) determine a taxpayer's entire tax 
     liability for a previous tax period; or (2) fix the tax 
     treatment of one or more specific items affecting tax 
     liability or any tax period. Thus, closing agreements may 
     settle the treatment of a specific item for periods ending 
     after the execution of the agreement. A single closing 
     agreement may cover both the determination of a taxpayer's 
     entire tax liability for a previous tax period and fix the 
     tax treatment of specific items for any tax period.
     Freedom of Information Act
       The Freedom of Information Act (``FOIA''), enacted in 1966, 
     established a statutory right to access government 
     information. While the purpose of section 6103 is to restrict 
     access to returns and return information, the basic purpose 
     of the FOIA is to ensure that the public has access to 
     government documents. In general, the FOIA provides that any 
     person has a right of access to Federal agency records, 
     except to the extent that such records (or portions thereof) 
     are protected from disclosure by one of nine exemptions or by 
     one of three special law enforcement record exclusions. 
     Exemption 3 of the FOIA allows the withholding of information 
     prohibited from disclosure by another statue if certain 
     requirements are met.\44\ The right of access is enforceable 
     in court.
---------------------------------------------------------------------------
     \44\ 5 U.S.C. sec. 552(b)(3).
---------------------------------------------------------------------------
     Pending FOIA requests and litigation involving IRS records
       Records covered by treaty secrecy clauses
       A publisher of tax related material and commentary has made 
     a FOIA request for the disclosure of competent authority 
     agreements. The request has been pending since March 14, 
     2000.\45\ The IRS has not denied the request, nor has it 
     produced any documents responsive to the request. At this 
     time, no suit has been filed to compel disclosure of these 
     documents, although such a suit may be brought in the future.
---------------------------------------------------------------------------
     \45\ The initial FOIA request of March 14, 2000, covered all 
     competent authority agreements executed for the United States 
     from January 1, 1990, to date. In response to a request from 
     the Department of Treasury, by letter dated April 17, 2000, 
     the FOIA request was narrowed to cover competent authority 
     agreements executed between 1997 and 1999. The right to 
     pursue the 1990 through 1996 agreements, however, was 
     reserved.
---------------------------------------------------------------------------
       In connection with a separate request, the IRS was sued 
     under the FOIA to compel disclosure of Field Service Advice 
     memoranda (``FSAs'').\46\ FSAs are prepared by attorneys in 
     the IRS National Office of the Office of Chief Counsel. They 
     are prepared in response to requests from IRS field personnel 
     for legal guidance, usually with respect to issues relating 
     to a particular taxpayer. FSAs usually contain a statement of 
     issues, facts, legal analysis and conclusions. The primary 
     purpose of FSAs is to ensure that IRS field personnel apply 
     the law correctly and uniformly. The D.C. Circuit determined 
     that FSAs are subject to disclosure. However, the court 
     remanded the case to district court to address assertions of 
     privilege, including those based on treaty secrecy. A 
     decision on this issue by the district court is still 
     pending.\47\
---------------------------------------------------------------------------
     \46\ Tax Analysts v. IRS, 117 F.3d 607 (D.C. Cir. 1997).
     \47\ Tax Analysts v. IRS, No. 94-CV-923 (GK) (D.D.C.).
---------------------------------------------------------------------------
       Pre-filing agreements
       On February 11, 2000, the IRS issued Notice 2000-12, in 
     which the IRS established a pilot program for ``Pre-filing 
     Agreements.'' Under this program, large businesses may 
     request a review and resolution of specific issues relating 
     to tax returns they expect to file between September and 
     December of 2000. The purpose of the program is to enable 
     taxpayers and the IRS to resolve issues that are likely to be 
     dispusted in post-filing audits. Examples of such issues 
     include: (1) asset valuation and the allocation of a 
     business's purchase or sale price among the assets acquired 
     or sold; (2) the identification and documentation of hedging 
     transactions; and (3) the determination of ``market'' for 
     taxpayers using the lower of cost or market method of 
     inventory valuation in situations involving the inactive 
     markets. The program is intended to address issues for which 
     the law is settled.
       In Notice 2000-12, the IRS stated that pre-filing 
     agreements are closing agreements entered into pursuant to 
     section 7121. As such, the notice provides that the 
     information generated or received by the IRS during the pre-
     filing agreement process constitutes return information. The 
     notice further provides that pre-filing agreements are not 
     written determinations as defined in section 6110, nor are 
     they subject to disclosure under the FOIA.


                               House Bill

       No provision. However, H.R. 5542 affirms that closing and 
     similar agreements, and information exchanged and agreements 
     reached pursuant to a tax treaty, are confidential. Further, 
     the provision clarifies that such protected documents are not 
     to be disclosed under the FOIA or section 6110.
     Clarification that return information includes closing 
         agreements and similar dispute resolution agreements
       Protection for closing agreements, pre-filing agreements 
           and similar agreements not containing an exposition of 
           the tax law
       The bill provides that agreements entered into under 
     section 7121 or similar agreements are confidential return 
     information. Similar agreements are intended to include 
     negotiated agreements that (1) are the result of an 
     alternative dispute resolution or dispute avoidance process 
     relating to liability of any person under the Code for any 
     tax, penalty, interest, fine or forfeiture or other 
     imposition or offense and (2) do not establish, set forth, or 
     resolve the government's interpretation of the relevant tax 
     law. This is not meant to preclude citation, or repetition 
     of, the Code, Treasury regulations, or other published rules.
       It is intended that pre-filing agreements be covered by 
     this provision. It is the understanding of the conferees that 
     pre-filing agreements do not explain the applicable 
     provisions of law or otherwise contain any exposition of the 
     tax law or the position of the IRS. In addition, it is not 
     intended that the closing and similar agreement exception be 
     used as a means of avoiding public disclosure of 
     determinations that, under present law, would be issued in a 
     form that would be open to public inspection. Thus, technical 
     advice memoranda, chief counsel advice or other material 
     clearly available to the public under present law section 
     6110, would not be exempt from disclosure by virtue of the 
     fact that such material is contained in a background file for 
     a closing agreement. For example, if a revenue agent seeks 
     technical advice in connection with a pre-filing agreement, 
     such technical advice would remain subject to the 
     requirements of section 6110. Since the pre-filing agreement 
     program involves only settled issues of law, it is the 
     understanding of the conferees that documents of this nature 
     generally would not be generated in the pre-filing agreement 
     process.
       The provision is not intended to foreclose the disclosure 
     of tax-exempt organization closing agreements to the extent 
     such disclosure is authorized under section 6104.\48\ Since 
     section 6103 permits the disclosure of return information as 
     authorized by title 26, a disclosure authorized by section 
     6104 is permissible, notwithstanding the fact that a closing 
     agreement is return information.
---------------------------------------------------------------------------
     \48\ The D.C. Circuit recently remanded to the district court 
     for factual development the issue of whether the closing 
     agreement in that case was submitted in support of an 
     exemption application, and therefore, subject to disclosure 
     under section 6104. Tax Analysts v. IRS, 214 F.3d 179 (D.C. 
     Cir 2000), vacating and remanding 99-2 U.S.T.C. (CCH) 794 
     (D.D.C. 1999).
---------------------------------------------------------------------------
       Report on pre-filing agreement program
       It is intended that the Secretary make publicly available 
     an annual report relating to the pre-filing agreement program 
     operations for the preceding calendar year. The annual 
     reporting requirement is for five years, or the duration of 
     the program, whichever is shorter. The report is to include 
     (1) the number of pre-filing agreements completed, (2) the 
     number of applications received, (3) the number of 
     applications withdrawn, (4) the types of issues which are 
     resolved by completed agreements, (5) whether the program is 
     being utilized by taxpayers who were previously subject to 
     audit by the IRS, (6) the average length of time required

[[Page 26994]]

     to complete an agreement, (7) the number, if any, and subject 
     of technical advice and chief counsel advice memoranda issued 
     to address issues arising in connection with any pre-filing 
     agreement, (8) any model agreements,\49\ and (9) any other 
     information the Secretary deems appropriate. The first 
     report, covering the calendar year 2000, is to be issued no 
     later than March 30, 2001. The information required for the 
     annual report is subject to the restrictions of section 6103. 
     Therefore, the Secretary will disclose information only in a 
     form that cannot be associated with or otherwise identify, 
     directly or indirectly, a particular taxpayer. The Joint 
     Committee on Taxation periodically may review pre-filing 
     agreements to determine whether they contain legal 
     interpretations that should be disclosed to the public.
---------------------------------------------------------------------------
     \49\ See e.g., Appendix A of Rev. Proc. 2000-38 which is a 
     model ``Closing Agreement on Final Determination Covering 
     Specific Matters'' regarding method of accounting for 
     distributor commissions. Rev. Proc. 2000-38, 2000-40 I.R.B. 
     314-315 (October 2, 2000). That model agreement does not 
     identify any particular taxpayer but sets forth the substance 
     of the agreement.
---------------------------------------------------------------------------
     Clarification that information protected by treaty is 
         confidential
       Protection for agreements and information exchanged 
           pursuant to tax treaty
       The provision adds a new Code section 6105, which provides 
     that tax convention information, with limited exceptions, 
     cannot be disclosed. Thus, the provision confirms that 
     agreements concluded under, and information received pursuant 
     to, a tax convention are confidential and can only be 
     disclosed as provided in such tax convention.
       Under the provision, a tax convention is defined to include 
     any income tax or gift and estate tax convention, or any 
     other convention or bilateral agreement (including 
     multilateral conventions and agreements and any agreement 
     with a possession of the United States) providing for the 
     avoidance of double taxation, the prevention of fiscal 
     evasion, nondiscrimination with respect to taxes, the 
     exchange of tax relevant information with the United States, 
     or mutual assistance in tax matters.
       It is the understanding of the conferees that competent 
     authority agreements (also referred to as mutual agreements) 
     generally do not contain an explanation of the law or 
     application of law to facts. Instead, such agreements are 
     negotiated arrangements to resolve issues of double taxation. 
     Thus, the term tax convention information for purposes of the 
     provision includes: (1) any agreement entered into with the 
     competent authority of one or more foreign governments 
     pursuant to a tax convention; (2) an application for relief 
     under a tax convention (sought by either a taxpayer or 
     another competent authority); (3) any background information 
     related to such agreement or application; (4) documents 
     implementing such agreement; and (5) any other information 
     exchanged pursuant to a tax convention that is treated as 
     confidential or secret under such tax convention. The 
     conferees intend that tax convention information would 
     include documents and any other information that reflects tax 
     convention information, including the association of a 
     particular treaty partner with a specific issue or matter.
       The general rule that tax convention information cannot be 
     disclosed does not apply to the disclosure of tax convention 
     information to persons or authorities (including courts and 
     administrative bodies) that are entitled to disclosure under 
     the tax convention. It also does not apply to any generally 
     applicable procedural rules regarding applications for relief 
     under a tax convention. This exception is intended to ensure 
     that there is no restriction on the release by the Secretary 
     of publicly available procedural rules concerning matters 
     such as how or when to make a request for competent authority 
     assistance. Thus, certain material generated by IRS, i.e., 
     its Competent Authority procedures (primarily reflected in 
     Rev. Proc. 96-13), or similar material produced by a treaty 
     partner (for example, an Information Circular produced and 
     published by the Canadian tax authority) may be made 
     available to the public. The general rule does not apply to 
     the disclosure of information not relating to a particular 
     taxpayer if, after consultation with the parties to a tax 
     convention, the Secretary determines that such disclosure 
     would not impair tax administration. This is consistent with 
     current practice. An example of a general agreement that 
     could be disclosed under this provision is the agreement 
     between the competent authorities of Mexico and the United 
     States regarding the maquiladora industry. That agreement, 
     which was not taxpayer specific, was publicized by press 
     release IR-INT-1999-13. The conferees intend that the 
     ``impairment of tax administration'' for purposes of this 
     provision include, but not be limited to, the release of 
     documents that would adversely affect the working 
     relationship of the treaty partners. Under the provision, 
     except as otherwise provided, taxpayer-specific tax 
     convention information could not be publicly disclosed, even 
     if it would not impair tax administration.
       A taxpayer-specific competent authority agreement that 
     relates to the existence or possible existence of liability 
     (or amount thereof) of any person for any tax, penalty, 
     interest, fine, forfeiture, or other imposition or offense 
     under the Code is return information under section 6103. It 
     is also an agreement pursuant to a tax convention under 
     section 6105. Return information, including taxpayer-specific 
     competent authority agreements, remains subject to the 
     confidentiality provisions of section 6103. Thus, civil and 
     criminal penalties for the unauthorized disclosure of returns 
     and return information continue to apply to return 
     information that is also covered by section 6105. However, 
     tax convention information that is return information may 
     only be disclosed to the extent provided in, and subject to 
     the terms and conditions of, the relevant tax convention.
     Interaction with FOIA and section 6110
       Under the provision, closing agreements and similar 
     agreements would not be considered written determinations for 
     purposes of section 6110 and, thus, would not be subject to 
     public disclosure. Such agreements would be defined as return 
     information under section 6103 and, therefore, such documents 
     would be protected from disclosure pursuant to Exemption 3 of 
     the FOIA in conjunction with section 6103.
       In addition, under the provision, section 6110 would not 
     apply to material covered by section 6105. In the litigation 
     over FSAs, there has been some dispute as to whether treaties 
     qualify as statutes for purposes of withholding information 
     pursuant to Exemption 3 of the FOIA. The conferees believe 
     that treaties are the equivalent of statutes for purposes of 
     Exemption 3 of the FOIA. Section 6105 satisfies Exemption 3 
     of the FOIA. Taxpayer-specific tax convention information 
     concerning a taxpayer's tax liability, such as taxpayer-
     specific competent authority agreements, would be exempt from 
     the FOIA as both return information under section 6103 and 
     information protected from disclosure by tax convention under 
     section 6105. Agreements not relating to a particular 
     taxpayer, and other tax convention information related to 
     such agreements, could be disclosed under FOIA if it is 
     determined that the disclosure would not impair tax 
     administration.
     Effective date
       The provision applies to disclosures on, or after, the date 
     of enactment, and thus, applies to all documents in existence 
     on, or created after, the date of enactment.


                            senate amendment

       No provision.


                          conference agreement

       The conference agreement follows H.R. 5542.

 E. Increase Joint Committee on Taxation Refund Review Threshold to $2 
        Million (sec. 305 of the bill and sec. 6405 of the Code)


                              Present Law

       No refund or credit in excess of $1,000,000 of any income 
     tax, estate or gift tax, or certain other specified taxes, 
     may be made until 30 days after the date a report on the 
     refund is provided to the Joint Committee on Taxation (sec. 
     6405). A report is also required in the case of certain 
     tentative refunds. Additionally, the staff of the Joint 
     Committee on Taxation conducts post-audit reviews of large 
     deficiency cases and other select issues.


                               House Bill

       No provision. However, H.R. 5542 increases the threshold 
     above which refunds must be submitted to the Joint Committee 
     on Taxation for review from $1,000,000 to $2,000,000. The 
     staff of the Joint Committee on Taxation would continue to 
     exercise its existing statutory authority to conduct a 
     program of expanded post-audit reviews of large deficiency 
     cases and other select issues, and the IRS is expected to 
     cooperate fully in this expanded program.
       Effective date.--The provision is effective on the date of 
     enactment, except that the higher threshold does not apply to 
     a refund or credit with respect to which a report was made 
     before the date of enactment.


                            Senate Amendment

       No provision.


                          Conference Agreement

       The conference agreement follows H.R. 5542.

  F. Clarifying the Allowance of Certain Tax Benefits with Respect to 
 Kidnapped Children (sec. 306 of the bill and secs. 2, 24, 32, and 151 
                              of the Code)


                              Present Law

       The Code generally requires that a taxpayer provide over 
     one-half of the support for each individual claimed as that 
     taxpayer's dependent. Similarly, the child credit, the 
     surviving spouse filing status, and the head of household 
     filing status require that a taxpayer satisfy certain 
     requirements with regard to individuals that qualify as the 
     taxpayer's dependent(s). Finally, the earned income credit 
     for taxpayers with qualifying children generally is available 
     only if the taxpayer has the same principal place of abode 
     for more than one-half the taxable year with an otherwise 
     qualifying child.
       Recently published IRS guidance first denied a dependency 
     exemption to certain taxpayers with kidnapped children (TAM 
     200034029), then allowed such tax benefits to such taxpayers 
     (TAM 200038059).

[[Page 26995]]




                               House Bill

       No provision. However, H.R. 5542 clarifies that the 
     dependency exemption, the child credit, the surviving spouse 
     filing status, the head of household filing status, and the 
     earned income credit are available to an otherwise qualifying 
     taxpayer with respect to a child who is presumed by law 
     enforcement authorities to have been kidnapped by someone who 
     is not a member of the family of such child or the taxpayer. 
     Generally, this treatment continues for all taxable years 
     ending during the period that the child is kidnapped. 
     However, this treatment ends for the taxable year ending 
     after the calendar year in which it is determined that the 
     child is dead (or, if earlier, in which the child would have 
     attained age 18).
       Effective date.--The provision is effective for taxable 
     years ending after the date of enactment.


                            Senate Amendment

       No provision.


                          Conference Agreement

       The conference agreement follows H.R. 5542.

   G. Conforming Changes To Accommodate Reduced Issuances of Certain 
  Treasury Securities (sec. 307 of the bill and sec. 995(f)(4) of the 
                                 Code)


                              Present Law

       Code section 995(f)(4) dealing with the interest charge on 
     the deferred tax liability of the shareholders of a domestic 
     international sales corporation provides that the interest 
     rate be determined by reference to the average investment 
     yield on United States Treasury bills with maturities of 52 
     weeks. In addition, provisions of Federal law relating to 
     interest on monetary judgments in civil cases recovered in 
     Federal district court and on a judgment against the United 
     States affirmed by the Supreme Court (Title 28), interest on 
     certain unpaid criminal fines and penalties (Title 18), and 
     interest on compensation for certain takings of property 
     (Title 40) determine the applicable interest rate by 
     reference to 52-week Treasury bills.
       As a result of prior Congressional efforts at budgetary 
     control, current and projected Federal budget surpluses are 
     reducing the need of the Treasury Department to issue certain 
     securities. The Treasury Department has informed the Congress 
     that on grounds of efficient debt management, and 
     predictability and liquidity for the financial markets, the 
     Treasury Department has announced it is likely to cease 
     issuing 52-week Treasury bills.


                               House Bill

       No provision. However, H.R. 5542 modifies the Code (sec. 
     995(f)(4)) and certain other parts of Federal law relating to 
     interest on monetary judgments in civil cases recovered in 
     Federal district court and on a judgment against the United 
     States affirmed by the Supreme Court (Title 28), interest on 
     certain unpaid criminal fines and penalties (Title 18), and 
     interest on compensation for certain takings of property 
     (Title 40) that make specific reference to yields on 52-week 
     Treasury bills. H.R. 5542 generally replaces the reference to 
     52-week Treasury bills with a reference to the weekly average 
     one-year constant maturity Treasury yield, as published by 
     the Board of Governors of the Federal Reserve System.
       Effective date.--The provision is effective upon the date 
     of enactment.


                            Senate Amendment

       No provision.


                          Conference Agreement

       The conference agreement follows H.R. 5542.

  H. Authorization of Agencies to Use Corrected Consumer Price Index 
                         (sec. 308 of the bill)


                              present law

       Code section 1(f) provides for adjustments in the tax 
     tables so that inflation will not result in tax increases. 
     Numerous other provisions of the Code are indexed as well. 
     Section 1(f) provides that inflation is measured by changes 
     in the consumer price index (``CPI'') for the preceding year 
     as published by the Department of Labor compared to the CPI 
     for the calendar year 1992. Section 1(f) directs the 
     Secretary to publish tables with applicable tax rates based 
     upon calculated inflation adjustments by December 15 of the 
     year before the year to which the tables are to apply.
       In addition, payments made under Social Security, certain 
     Federal employee retirement programs, and certain payments to 
     individuals under various welfare and income support programs 
     are adjusted annually by changes in the CPI.
       On September 28, 2000, the Bureau of Labor Statistics 
     (``BLS'') announced that the agency had discovered a 
     computational error in quality adjustments of air 
     conditioning as a part of the cost of housing resulting in 
     errors in the reported CPI between January 1999 and August 
     2000. The BLS reported that the CPI levels starting in 
     January 1999 have been either 0.0, 0.1, or 0.2 index points 
     lower than the levels that would have been published without 
     the error. Consistent with agency guidelines and past 
     practices, the BLS announced that it is revising the reported 
     CPI back to January 2000 to the fully correct levels. The BLS 
     will make no changes to reported levels for January through 
     December 1999. However, the BLS will make the corrected 
     levels of the CPI for 1999 available upon request.


                               house bill

       No provision. However, H.R. 5542 authorizes the Secretary 
     of the Treasury to use the corrected levels of the CPI for 
     1999 and 2000 for all purposes of the Code to which they 
     might apply. H.R. 5542 directs the Secretary to prescribe new 
     tables reflecting the correct levels of the 1999 CPI for the 
     2000 tax year.
       In addition, H.R. 5542 provides that the Director of the 
     Office of Management and Budget (``OMB'') shall assess 
     Federal benefit programs to ascertain the extent to which the 
     CPI error has or will result in a shortfall in program 
     payments to individuals for 2000 and future years. The 
     Director is directed to issue guidelines to agency 
     administrators to determine the extent, if any, of such 
     shortfalls in payments to individuals. The agency 
     administrators are to report their findings to the Director 
     and to Congress within 30 days. H.R. 5542 provides that, 
     within 60 days of the date of enactment, the Director 
     instruct the head of any Federal agency which administers an 
     affected program to make a payment or payments to compensate 
     for the shortfall and that such payments are targeted to the 
     amount of the shortfall experienced by individual 
     beneficiaries. Applicable Federal benefit programs include 
     the old-age and survivors insurance program, the disability 
     insurance program and the supplemental security income 
     program under the Social Security Act and other programs as 
     determined by the Director. H.R. 5542 directs the Director to 
     report to the Congress on the activities performed pursuant 
     to this provision by April 1, 2001.
       Effective date.--The provision is effective on the date of 
     enactment.


                              senate bill

       No provision.


                          conference agreement

       The conference agreement follows H.R. 5542, except that the 
     conference agreement directs the Secretary to prescribe new 
     tables reflecting the correct levels of the CPI for the 2001 
     tax year.
       The conferees note that error in the CPI was computational 
     in nature. The conferees support the BLS's policy to 
     incorporate methodological changes only on a prospective 
     basis. The conferees also understand that BLS policy provides 
     that published indices generally not be revised except for 
     those found to be in error for the year in which the error 
     was discovered or within the past twelve months. The 
     conferees recognize that the errors in the CPI date to as 
     long as 20 months prior to the announcement of the error. The 
     conferees recognize that the BLS's policy of not publishing 
     corrected index numbers, beyond those provided as described 
     above, has been applied in those rare cases where an error 
     has been discovered in the past. However, the conferees 
     understand that in the past 25 years the few errors that have 
     been discovered have involved sub-indices and have not 
     affected the level of the CPI itself. The last time the U.S. 
     City Average All Items CPI was revised was in December 1974, 
     when the values for the months of April through October 1974 
     were recalculated and released with issuance of the November 
     CPI. Therefore, past precedent does not strictly apply to the 
     present situation.
       The conferees believe that integrity of official government 
     data is vital to policymakers and private individuals and 
     businesses throughout the country. The conferees emphasize 
     that the CPI plays an important role in economic planning. 
     For this reason the conferees are concerned that, while the 
     BLS has published corrected CPI numbers for 2000, the BLS 
     does not intend to publish correct CPI numbers for 1999 as 
     part of the official CPI series. To its credit, the BLS 
     announced the error publicly. The national press reported the 
     error.\50\ In the absence of a correction to the official CPI 
     series, the Federal government will be left in the position 
     of maintaining, as an official data series, index numbers 
     that the Federal government has admitted are incorrect. The 
     conferees believe that the public's trust in the integrity of 
     official government data is a paramount goal and the 
     conferees strongly encourage the Commissioner of the Bureau 
     of Labor Statistics to review carefully the agency's current 
     policy with the respect to publishing as part of an official 
     series corrections to data found to be in error for reasons 
     of computational error. The conferees believe such a review 
     should be made both with

[[Page 26996]]

     respect of computational error. The conferees believe such a 
     review should be made both with respect to the error 
     announced on September 28, 2000, and as a matter for the 
     future for those rate circumstances when such a similar 
     computational error might once again arise.
---------------------------------------------------------------------------
     \50\ For example, John M. Berry, ``Inflation Higher Than 
     Reported,'' The Washington Post, September 27, 2000, p. E-1, 
     John M. Berry, ``Rent Error Leads to Revision Of the CPI,'' 
     The Washington Post, September 29, 2000, p. E-3, Nicholas 
     Kulish, ``Major Price Index Is Revised Upward As Result of 
     Error,'' The Wall Street Journal, September 28, 2000, p. A2, 
     and Nicholas Kulish, ``Second-Period GDP Rose at 5.6% Annual 
     Rate,'' The Wall Street Journal, September 29, 2000, p. A2. 
     The conferees observe that these press reports highlight the 
     potential confusion for the public regarding these data. The 
     Washington Post reported that ``the CPI figures for 1999 were 
     not revised'' (September 29, 2000 story) while The Wall 
     Street Journal reported that ``[t]he BLS said a complete 
     revision of all the data sets would be released'' (September 
     28, 2000 story) and ``it [BLS] announced that it would revise 
     the index'' (September 29, 2000 story.
---------------------------------------------------------------------------

 1. Prevent Duplication or Acceleration of Loss Through Assumption of 
  Certain Liabilities (sec. 309 of the bill and sec. 358 of the Code)


                              present law

       Generally, no gain or loss is recognized when one or more 
     persons transfer property to a corporation in exchange for 
     stock and immediately after the exchange such person or 
     persons control the corporation. However, a transfer 
     recognizes gain to the extent it receives money or other 
     property (``boot'') as part of the exchange (sec. 351).
       The assumption of liabilities by the controlled corporation 
     generally is not treated as boot received by the 
     transferor,\51\ except that the transferor recognizes gain to 
     the extent that the liabilities assumed exceed the total of 
     the adjusted basis of the property transferred to the 
     controlled corporation pursuant to the exchange (sec. 
     357(c)).
---------------------------------------------------------------------------
     \51\ The assumption of liabilities is treated as boot if it 
     can be shown that ``the principal purpose'' of the assumption 
     is tax avoidance on the exchange, or is a non-bona fide 
     business purpose (sec. 357(b)).
---------------------------------------------------------------------------
       The assumption of liabilities by the controlled corporation 
     generally reduces the transferor's basis in the stock of the 
     controlled corporation that assumed the liabilities. The 
     transferor's basis in the stock of the controlled corporation 
     is the same as the basis of the property contributed to the 
     controlled corporation, increased by the amount of any gain 
     (or dividend) recognized by the transferor on the exchange, 
     and reduced by the amount of any money or property received, 
     and by the amount of any loss recognized by the transferor 
     (sec. 358). For this purpose, the assumption of a liability 
     is treated as money received by the transferor.
       An exception to the general treatment of assumption of 
     liabilities applies to assumptions of liabilities that would 
     give rise to a deduction, provided the incurrence of such 
     liabilities did not result in the creation or increase of 
     basis of any property. The assumption of such liabilities is 
     not treated as money received by the transferor in 
     determining whether the transferor has gain on the exchange. 
     Similarly, the transferor's basis in the stock of the 
     controlled corporation is not reduced by the assumption of 
     such liabilities. The Internal Revenue Service has ruled that 
     the assumption by an accrual basis corporation of certain 
     contingent liabilities for soil and groundwater remediation 
     would be covered by this exception.\52\
---------------------------------------------------------------------------
     \52\ Rev. Rul. 95-74, 1995-2 C.B. 36. The ruling addressed a 
     parent corporation's transfer to a subsidiary of 
     substantially all the assets of a manufacturing business, in 
     exchange for stock and the assumption of liabilities 
     associated with the business, including certain contingent 
     environmental remediation liabilities. These liabilities 
     arose due to contamination of land during the parent 
     corporation's operation of the manufacturing business. The 
     transferor has no plan or intention to dispose of (or to have 
     the subsidiary issue) any subsidiary stock. The IRS ruled 
     that the contingent liabilities would not reduce the 
     transferor's basis in the stock of the subsidiary because the 
     liabilities would not reduce the transferor's basis in the 
     stock of the subsidiary because the liabilities had not been 
     taken into account by the transfer prior to the transfer and 
     had not given rise to deductions or basis for the transferor.
---------------------------------------------------------------------------


                               House Bill

       No provision. However, H.R. 5542 contains a provisions to 
     limit the acceleration or duplication of losses through 
     assumptions of liabilities.
       Under H.R. 5542, if the basis of stock (determined without 
     regard to this provision) received by a transferor as part of 
     a tax-free exchange with a controlled corporation exceeds the 
     fair market value of the stock, then the basis of the stock 
     received is reduced (but not below the fair market value) by 
     the amount (determined as of the date of the exchange) of any 
     liability that (1) is assumed in exchange for such stock, and 
     (2) did not otherwise reduced the transferor's basis of the 
     stock by reason on the assumption. Except as provided by the 
     Secretary of the Treasury, this provision does not apply 
     where the trade or business with which the liability is 
     associated is transferred to the corporation as part of the 
     exchange, or where substantially all the assets which the 
     liability is associated are transferred to the corporation as 
     part of the exchange.
       The exception for transfers of a trade or business, or 
     substantially all the assets with which a liability is 
     associated, are intended to obviate the need for valuation or 
     basis reduction in such cases. The exceptions are not 
     intended to apply to situation involving the selective 
     transfer of assets that may bear some relationship to the 
     liability, but that do not represent the full scope of the 
     trade or business, (or substantially all the assets) with 
     which the liability is associated.
       For purposes of the provision, the term ``liability'' 
     includes fixed or contingent obligation to make payments, 
     without regard to whether such obligation or potential 
     obligation is otherwise taken into account under the Code. 
     The determination whether a liability (as more broadly 
     defined for purposes of this provision) has been assumed is 
     made in accordance with the provisions of section 357(d)(1) 
     of the Code. Under the standard of 357(d)(1), a recourse 
     liability is treated as assumed if, based on all the facts 
     and circumstances, the transferee has agreed to and is 
     expected to satisfy such liability (or portion thereof), 
     whether or not the transferor has been relieved of the 
     liability. For example, if a transferee corporation does not 
     formally assume a recourse obligation or potential obligation 
     of the transferor, but instead agrees and is expected to 
     indemnify the transferor with respect to all or a portion of 
     a such an obligation, then the amount that is agreed to be 
     indemnified is treated as assumed for purposes of the 
     provision, whether or not the transferor has been relieved of 
     such liability. Similarly, a nonrecourse liability is treated 
     as assumed by the transferee of any asset subject to such 
     liability.\53\
---------------------------------------------------------------------------
     \53\ Section 357(d)(2) contains a limitation in the case of 
     certain non recourse liabilities. Also, under section 357, 
     regulations if issued, may provide for different results.
---------------------------------------------------------------------------
       The application of the provision is illustrated in the 
     following example: Assume a taxpayer transfers assets with an 
     adjusted basis and fair market value of $100 to its wholly-
     owned corporation and the corporation assumes $40 of 
     liabilities (the payment of which would give rise to a 
     deduction). Thus, the value of the stock received by the 
     transferor is $60. Under present law, the basis of the stock 
     would be $100. The provision requires that the basis of the 
     stock be reduced to $60 (i.e., a reduction of $40). Except is 
     provided by the Secretary, no basis reduction is required if 
     the transferred assets consisted of the trade or business, or 
     substantially all the assets, with which the liability 
     associated.
       The provision does not change the tax treatment with 
     respect to the transferee corporation.
       The Secretary of the Treasury is directed to prescribe 
     rules providing appropriate adjustments to prevent the 
     acceleration or duplication of losses through the assumption 
     of liabilities (as defined in the provision) in transactions 
     involving partnerships. The Secretary may also provide 
     appropriate adjustments in the case of transactions involving 
     S. corporations. In the case of S corporations, such rules 
     may be applied instead of the otherwise applicable basis 
     reduction rules.
       Effective Date.--The provision is effective for assumption 
     of liabilities on or after October 19, 1999. Except as 
     provided by the Secretary, the rule addressing transactions 
     involving partnerships are effective with the same effective 
     date. Any rules addressing transactions involving S 
     corporations may likewise be effective for assumptions of 
     liabilities on or after October 19, 1999, or such later date 
     as may be prescribed in such rules.


                            senate amendment

       No provision. On April 4, 2000, Senators Roth and Moynihan 
     introduced a bill (S. 2354) that is the same as the provision 
     in H.R. 5542.


                          conference agreement

       The conference agreement follow H.R. 5542.

J. Disclosure of Return Information to the Congressional Budget Office 
       (sec. 310 of the bill and new sec. 6103(j)(6) of the Code)


                              present law

       Federal tax returns and return information are confidential 
     and cannot be disclosed unless authorized by the Code. 
     Section 6103 authorizes certain agencies to receive tax 
     returns and return information for statistical use and for 
     other specified purposes.\54\ Section 6103 also permits the 
     Secretary of the Treasury (``the Secretary'') to provide 
     return information to any person authorized to receive it by 
     any mode or means that the Secretary determines necessary or 
     appropriate.\55\ Persons making unauthorized disclosures or 
     inspections of tax returns and return information are subject 
     to criminal and civil penalties.\56\
---------------------------------------------------------------------------
     \54\ E.g., sec. 6103(j), and 6103(1)(1) and (5).
     \55\ Sec. 6103(p)(2)(B).
     \56\ Sec. secs. 7431, 7213, and 7213A.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       No provision.


                          Conference Agreement

     Disclosure of return information
       The Congressional Budget Office (``CBO'') is in the process 
     of developing the capability to make projections of the 
     Social Security and Medicare programs over long periods of 
     time. To facilitate the development and operation of long-
     term models of Social Security and Medicare, CBO needs 
     continuing access to records from the IRS. Specifically, CBO 
     seeks two SSA files that contain return information--the 
     Social Security Earnings Record and the Master Beneficiary 
     Record. These files contain individual earnings data compiled 
     from tax returns (Forms W-2), which are protected from 
     disclosure by section 6103. In addition, CBO may request 
     other records, including those matched with survey data.
       The conference agreement amends section 6103 to permit the 
     Secretary to furnish to CBO return information to the extent 
     such information is necessary for purposes of CBO's long-term 
     models of Social Security

[[Page 26997]]

     and Medicare. This authority extends to the development, 
     operation, and maintenance by CBO of its long-term models of 
     Social Security and Medicare. It is the intent of Congress 
     that all requests for information made by CBO under this 
     provision be made to the Secretary and that the Secretary use 
     his authority under section 6103(p)(2) such that the SSA or 
     other agency can furnish directly to CBO, for purposes of 
     CBO's long-term models of Social Security and Medicare, the 
     files they possess that incorporate return information. It is 
     also the intent of Congress that the Secretary furnish such 
     other return information under this provision as is necessary 
     for purposes of CBO's Social Security and Medicare long-term 
     models.
       Under the provision, CBO is subject to the present-law 
     safeguard requirements for tax returns and return 
     information.\57\ Further, CBO is prohibited from disclosing 
     any tax returns and return information received under this 
     provision except in a form that cannot be associated with, or 
     otherwise identify, directly or indirectly a particular 
     taxpayer. Present-law civil and criminal penalties apply to 
     the unauthorized disclosure or inspection of tax returns or 
     return information.\58\
---------------------------------------------------------------------------
     \57\ Sec. 6103(p)(4).
     \58\ See secs. 7431, 7213, and 7213A.
---------------------------------------------------------------------------
     Addition of general CBO confidentiality provisions
       The conference agreement adds to the Congressional Budget 
     Act of 1974 \59\ additional confidentiality provisions which 
     would require CBO to provide the same level of 
     confidentiality to data it obtains from other agencies as 
     that to which the agencies themselves are subject. Officials 
     and employees of CBO would be subject to the same statutory 
     penalties for unauthorized disclosure as the employees of the 
     agencies from which CBO obtain the data.
---------------------------------------------------------------------------
     \59\ 2 U.S.C. sec. 601(d).
---------------------------------------------------------------------------

   Subtitle B.--Tax Technical Corrections (secs. 311-319 of the bill)


                               house bill

       No provision. However, H.R. 5542 includes tax technical 
     corrections.\60\ Except as otherwise provided, the technical 
     corrections contained in the bill generally are effective as 
     if included in the originally enacted related legislation. 
     The provisions under the IRS Restructuring Act of 1998 
     relating to innocent spouse and to procedural and 
     administrative issues (other than the provision relating to 
     clarification of Tax Court authority to issue appealable 
     decisions) are effective upon the date of enactment of the 
     bill.
---------------------------------------------------------------------------
     \60\ In addition to other tax technical corrections, the bill 
     contains the technical corrections contained in H.R. 2488, 
     the Financial Freedom Act of 1999 (106th Cong. 1st Sess., 
     reported by the House Committee on Ways and Means, H. Rept. 
     106-238, July 16, 1999, 393-397), as passed by the House, and 
     S. 1429, the Taxpayer Refund Act of 1999 (reported by the 
     Senate Committee on Finance, S. Rept. 106-120, July 23, 1999, 
     221-225), as passed by the Senate. (The technical corrections 
     were not included in the conference agreement to H.R. 2488, 
     the Taxpayer Refund and Relief Act of 1999 (106th Cong., 1st 
     Sess., H. Rept. 106-289, Aug. 4, 1999, 542-543). The Taxpayer 
     Refund and Relief Act of 1999 was vetoed by President 
     Clinton.) However, the bill does not include the following 
     provisions enacted in other legislation: sections 1601(b)(2) 
     and (c) of H.R. 2488 (and section 504(c) of S. 1429), 
     relating to the Vaccine Trust Fund, which were enacted in the 
     ``Ticket to Work and Work Incentives Improvement Act of 
     1999'' (P.L. 106-170, sec. 523(b)).
---------------------------------------------------------------------------


     Amendments relating to the Ticket to Work and Work Incentives 
                        Improvement Act of 1999

       Research credit.--The provision clarifies the anti-double 
     dip rule coordinating the research credit (sec. 41) and the 
     Puerto Rico economic activity credit (sec. 30A). It is 
     arguable that the present-law provisions could be construed 
     so that the amount of wages on which a taxpayer could claim 
     the section 30A credit is reduced only by the amount of 
     credit claimed under section 41, rather than by the amount of 
     wages upon which the section 41 credit is based. This result 
     is inconsistent with the legislative history of the original 
     provisions. The provision deletes the words ``or credit'' 
     after ``deduction'' in section 280C(c)(1), and adds a new 
     subsection in section 30A specifying that wages or other 
     expenses taken into account for section 30A may not be taken 
     into account for section 41.
       Taxable REIT subsidiaries.--The provision clarifies that a 
     REIT's redetermined rents (described in sec. 857(b)(7)(B)) 
     that are subject to tax under section 857(b)(7)(A) do not 
     include amounts received from a taxable REIT subsidiary that 
     would be excluded from unrelated business taxable income 
     (under sec. 512(b)(3), relating to certain rents, if received 
     by certain types of organizations described in sec. 
     511(a)(2)).
       Partnership basis adjustments.--The provision provides that 
     the rule in the consolidated return regulations (Treas. Reg. 
     sec. 1.1502-34) aggregating stock ownership for purposes of 
     section 332 (relating to complete liquidation of a subsidiary 
     that is a controlled corporation) also applies for purposes 
     of section 732(f) (relating to basis adjustments to assets of 
     a controlled corporation received in a partnership 
     distribution).
     Amendments related to the Tax and Trade Relief Extension Act 
         of 1998
       Exempt organizations.--The provision clarifies that 
     nonexempt charitable trusts and nonexempt private foundations 
     are subject to the public disclosure requirements of section 
     6104(d).
       Capital gains.--The provision clarifies that if (1) a 
     charitable remainder trust sold section 1250 property after 
     July 28, 1997, and before January 1, 1998, (2) the property 
     was held more than one year but not more than 18 months, and 
     (3) the capital gain is distributed after December 31, 1997, 
     then any capital gain attributable to depreciation will be 
     taxed at 25 percent (rather than 28 percent). Treasury has 
     published a notice (Notice 99-17, 1999-14 I.R.B., April 5, 
     1999) providing that the gain is taxed at 25 percent.
     Amendments related to the Internal Revenue Service 
         Restructuring and Reform Act of 1998
       Innocent spouse
       Timing of request for relief.--Confusion currently exists 
     as to the appropriate point at which a request for innocent 
     spouse relief should be made by the taxpayer and considered 
     by the IRS. Some have read the statute to prohibit 
     consideration by the IRS of requests for relief until after 
     an assessment has been made, i.e., after the examination has 
     been concluded, and if challenged, judicially determined. 
     Others have read the statute to permit claims for relief from 
     deficiencies to be made upon the filing of the return before 
     any preliminary determination as to whether a deficiency 
     exists or whether the return will be examined. The 
     consideration of innocent spouse relief requires that the IRS 
     focus on the particular items causing a deficiency; until 
     such items are identified, the IRS cannot consider these 
     claims. Congress did not intend that taxpayers be prohibited 
     from seeking innocent spouse relief until after an assessment 
     has been made; Congress intended the proper time to raise and 
     have the IRS consider a claim to be at the same point where a 
     deficiency is being considered and asserted by the IRS. This 
     is the least disruptive for both the taxpayer and the IRS 
     since it allows both to focus on the innocent spouse issue 
     while also focusing on the items that might cause a 
     deficiency. It also permits every issue, including the 
     innocent spouse issue, to be resolved in single 
     administrative and judicial process. The bill clarifies the 
     intended time by permitting the election under (b) and (c) to 
     be made at any point after a deficiency has been asserted by 
     the IRS. A deficiency is considered to have been asserted by 
     the IRS at the time the IRS states that additional taxes may 
     be owed. Most commonly, this occurs during the Examination 
     process. It does not require an assessment to have been made, 
     nor does it require the exhaustion of administrative remedies 
     in order for a taxpayer to be permitted to request innocent 
     spouse relief.
       Allowance of refunds.--The current placement in the statute 
     of the provision for allowance of refunds may inappropriately 
     suggest that the provision applies only to the United States 
     Tax Court, whereas it was intended to apply administratively 
     and in all courts. The bill clarifies this by moving the 
     provision to its own subsection.
       Non-exclusivity of judicial remedy.--Some have suggested 
     that the IRS Restructuring Act administrative and judicial 
     process for innocent spouse relief was intended to be the 
     exclusive avenue by which relief could be sought. The bill 
     clarifies Congressional intent that the procedures of section 
     6015(e) were intended to be additional, non-exclusive avenues 
     by which innocent spouse relief could be considered.
       Time for filing a petition with the Tax Court.--As enacted, 
     the time period for seeking a redetermination in the Tax 
     Court of innocent spouse relief begins on the date of the 
     determination as opposed to the day after the determination. 
     This period is one day shorter than that generally applicable 
     to petition the Tax Court with respect to a deficiency notice 
     (sec. 6213) and the period during which collection activities 
     are prohibited and the limitations period is suspended. The 
     bill clarifies the computation of this period and conforms it 
     to the generally applicable 90-day period for petitioning the 
     Tax Court. Conforming amendments are made as to the period 
     for which collection activities are prohibited and collection 
     limitations suspended.
       Waiver of final determination upon agreement as to 
     relief.--Congress intended in enacting section 6015 to 
     provide a simple and efficient procedure by which the IRS 
     could consider relief, and if relief was denied (in whole or 
     in part) and the spouse requesting such relief did not agree 
     with such denial, such issue could be considered by the Tax 
     Court. Congress did not intend to require a rigid formal 
     process when the IRS and the spouse requesting relief agreed 
     on the extent of relief to be granted. However, the 
     provisions of section 6015(e) have been interpreted as 
     requiring the issuance in all circumstances of a formal 
     ``Notice of Determination,'' which contains a statement of 
     the time period within which a petition may be filed with the 
     Tax Court and which delays final resolution of the request 
     for relief until the expiration of the period for filing a 
     petition with the Tax Court. The issuance of the Notice of 
     Determination is confusing to the taxpayer when the requested 
     relief was fully granted or when the IRS and the taxpayer 
     otherwise agreed on the application of the innocent spouse 
     provisions to the taxpayer's case. It also may cause 
     unnecessary filings with the

[[Page 26998]]

     Tax Court and delay the closing of the case until the time 
     for filing with the Tax Court expires.
       Congress has addressed the analogous situation in the 
     deficiency context in section 6213(d). In such situations, 
     upon written agreement, the IRS may adjust the taxpayer's 
     liability as agreed, and no additional formal notice is 
     necessary. The bill reflects that an analogous waiver was 
     intended to apply in the innocent spouse context. The bill 
     consequently permits taxpayers and the IRS to enter into a 
     similar written agreement in innocent spouse cases, which 
     allows for the taxpayer's liability to be immediately 
     adjusted as agreed, and makes unnecessary a formal Notice of 
     Determination or Tax Court review. This written agreement is 
     to specify the details of the agreement between the IRS and 
     the taxpayer as to the nature and extent of innocent spouse 
     relief that will be provided. Conforming amendments are made 
     as to the period for which collection activities are 
     prohibited and collection limitations suspended.
       Procedural and administrative issues
       Disputes involving $50,000 or less.--The provision 
     clarifies that the small case procedures of the Tax Court are 
     available with respect to innocent spouse disputes and 
     disputes continuing from the pre-levy administrative due 
     process hearing. The small case procedures provide an 
     accessible forum for taxpayers who have small claims with 
     less formal rules of evidence and procedure. Use of the 
     procedure is optional to the taxpayer, with the concurrence 
     of the Tax Court. In view of the recent enactment of the 
     innocent spouse and pre-levy administrative due process 
     hearing provisions, it is anticipated that the Tax Court will 
     give careful consideration to (1) a motion by the 
     Commissioner of Internal Revenue to remove the small case 
     designation (as authorized by Rules 172 and 173 of the Tax 
     Court Rules) when the orderly conduct of the work of the 
     Court or the administration of the tax laws would be better 
     served by a regular trial of the case, as well as (2) the 
     financial impact upon the taxpayer, including additional 
     legal fees and costs, of not utilizing small case treatment. 
     For example, removing the small case designation may be 
     appropriate when a decision in the case will provide a 
     precedent for the disposition of a substantial number of 
     other cases. It is anticipated that motions by the 
     Commissioner to remove the small case designation will be 
     made infrequently.
       Authority to enjoin collection actions.--While a dispute is 
     pending under the pre-levy administrative due process hearing 
     procedures, levy action is statutorily suspended for that 
     period. The Tax Court and district courts are expressly 
     granted authority to enjoin improper levy action in general, 
     but that authority does not explicitly extend to improper 
     levy action that occurs during the period when levy action is 
     statutorily suspended under the administrative due process 
     provisions. The provision clarifies the ability of the courts 
     (including the Tax Court) to enjoin levy during the period 
     that levy is required to be suspended with respect to a 
     dispute under the pre-levy administrative due process hearing 
     procedures.
       Clarification of permissible extension of limitations 
     period for installment agreements.--Uncertainty exists as to 
     whether the permissible extension of the period of 
     limitations in the context of installment agreements is 
     governed by reference to an agreement of the parties pursuant 
     to section 6502 or by reference to the period of time during 
     which the installment agreement is in effect pursuant to 
     sections 6331(k)(3) and (i)(5). The provision clarifies that 
     the permissible extension of the period of limitations in the 
     context of installment agreements is governed by the 
     pertinent provisions of section 6502.
       Clarification of Tax Court authority to issue appealable 
     decisions.--The statutory provision for judicial review of a 
     dispute concerning the pre-levy administrative due process 
     hearing may be unclear as to whether a determination of the 
     Tax Court is an appealable decision. The provision clarifies 
     that the determination of the Tax Court (other than under the 
     small case procedures) in a dispute concerning the pre-levy 
     administrative due process hearing is a decision of the Tax 
     Court and would be reviewable as such.
       Other issues
       IRS restructuring.--When the Office of the Chief Inspector 
     was replaced by the Treasury Inspector General for Tax 
     Administration (TIGTA) under the IRS Restructuring and Reform 
     Act of 1998, Inspection's responsibilities were assigned to 
     the TIGTA. TIGTA personnel are Treasury, rather than IRS, 
     personnel. TIGTA personnel still need to make investigative 
     disclosures to carry out the duties they took over from 
     Inspection and their additional tax administration 
     responsibilities. However, section 6103(k)(6) refers only to 
     ``internal revenue'' personnel. The provision clarifies that 
     section 6103(k)(6) permits TIGTA personnel to make 
     investigative disclosures.
       Compliance.--Section 3509 of the IRS Restructuring and 
     Reform Act of 1998 expanded the disclosure rules of section 
     6110 to also cover Chief Counsel advice (sec. 6110(i)). This 
     is a conforming change related to ongoing investigations. The 
     provision adds to section 6110(g)(5)(A), after the words 
     technical advice memorandum, ``or Chief Counsel advice.''
     Amendments related to the Taxpayer Relief Act of 1997
       Deficiency created by overstatement of refundable child 
     credit.--The provision treats the refundable portion of the 
     child credit under section 24(d) as part of a ``deficiency.'' 
     Thus, the usual assessment procedures applicable to income 
     taxes will apply to both the nonrefundable and the refundable 
     portions of the child credit. (This will reverse the 
     conclusion reached by Internal Revenue Service Chief Counsel 
     Memorandum 199948027 interpreting present law.)
       Roth IRAs.--Code section 3405 provides for withholding with 
     respect to designated distributions from certain tax-favored 
     arrangements, including IRAs. In general, section 
     3405(e)(1)(B)(ii) excludes from the definition of a 
     designated distribution the portion of any distribution which 
     it is reasonable to believe is excludable from gross income. 
     However, all distributions from IRAs are treated as 
     includible in income. The exception was consistent with prior 
     law when all IRA distributions were taxable, but does not 
     account for the tax-free nature of certain Roth IRA 
     distributions. The provision extends the exception to Roth 
     IRAs.
       Capital gain election.--The provision provides that an 
     election to recognize gain or loss made pursuant to section 
     311(e) of the Taxpayer Relief Act of 1997 does not apply to 
     assets disposed of in a recognition transaction within one 
     year of the date the election would otherwise have been 
     effective. Thus, for example, if an asset is sold in 2001, no 
     election may be made with respect to that asset. In addition, 
     it is clarified that the deemed sale and repurchase by reason 
     of the election is not taken into account in applying the 
     wash sales rules of section 1091.
       Straight-line depreciation under AMT.--The provision 
     clarifies that the Taxpayer Relief Act of 1997 did not change 
     the requirement that the straight-line method of depreciation 
     be used in computing the alternative minimum tax (``AMT'') 
     depreciation allowance for section 1250 property. It is 
     arguable that the changes made by that Act could be read as 
     inadvertently allowing accelerated depreciation under the AMT 
     for section 1250 property which is allowed accelerated 
     depreciation under the regular tax.
       Transportation benefits.--Under present law, salary 
     reduction amounts are generally treated as compensation for 
     purposes of the limits on contributions and benefits under 
     qualified plans. In addition, an employer can elect whether 
     or not to include such amounts for nondiscrimination testing 
     purposes. The IRS Reform Act permitted employers to offer a 
     cash option in lieu of qualified transportation benefits. The 
     provision treats salary reduction amounts used for qualified 
     transportation benefits the same as other salary reduction 
     amounts for purposes of defining compensation under the 
     qualified plan rules.
       Tax Court jurisdiction.--The Tax Court recently held that 
     its jurisdiction pursuant to section 7436 extends only to 
     employment status, not to be amount of employment tax in 
     dispute (Henry Randolph Consulting v. Comm'r, 112 T.C. #1. 
     Jan. 6, 1999). The provision provides that the Tax Court also 
     has jurisdiction over the amount.
     Amendments related to the Balanced Budget Act of 1997
       Tobacco floor stocks tax.--The provision clarifies that the 
     floor stocks taxes imposed on January 1, 2000, and January 1, 
     2002, apply only to cigarettes rather than to all tobacco 
     products. As enacted, the law could be construed as 
     ambiguous, referring to imposition on all tobacco products 
     but imposing liability only with respect to cigarettes.
       Tobacco excise tax.--Conforming amendments are provided to 
     two provisions to reflect the fact that the tax on cigarette 
     papers is not imposed on ``books'' or papers since January 1, 
     2000.
       Coordination of trade rules and tobacco excise tax.--
     Clarification is provided that the penalty on reimporting 
     cigarettes other than for return to a manufacturer (effective 
     January 1, 2000) does not apply to cigarettes re-imported by 
     individuals to the extent those cigarettes can be entered 
     into the U.S. without duty or tax under the Harmonized Tariff 
     Schedule.
     Amendment related to the Small Business Job Protection Act of 
         1996
       Work opportunity tax credit.--Section 51(d)(2) refers to 
     eligibility for the work opportunity tax credit with respect 
     to certain welfare recipients without taking into account the 
     enactment of the temporary assistance for needy families 
     (``TANF'') program. The provisions conform references in the 
     work opportunity tax credit to the operation of TANF.
       Electing small business trusts holding S corporation 
     stock.--The provision allows an electing small business trust 
     (sec. 1361(e)) to have an organization described in section 
     170(c)(1) (relating to State and local governments) as a 
     beneficiary if the organization holds a contingent interest 
     and is not a potential current beneficiary.
       Definition of lump-sum distribution.--Section 1401(b) of 
     the Small Business Job Protection Act of 1996 Act repealed 5-
     year averaging for lump-sum distributions. The definition of 
     lump-sum distribution was preserved for

[[Page 26999]]

     other provisions, primarily those relating to NUA in employer 
     securities. The definition was moved from section 
     402(d)(4)(A) to section 402(e)(4)(D)(i). This definition 
     included the following sentence: ``A distribution of an 
     annuity contract from a trust or annuity plan referred to in 
     the first sentence of this subparagraph shall be treated as a 
     lump sum distribution.'' The provision adds this language 
     back into the definition of lump-sum distribution. The 
     sentence is relevant to section 401(k)(1)(B), which permits 
     certain distributions if made as a ``lump-sum distribution.''
       IRAs for nonworking spouses.--Section 1427 of the Small 
     Business Job Protection Act of 1996 expanded the IRA 
     deduction for nonworking spouses. The maximum permitted IRA 
     contributions is generally limited by the individual's earned 
     income. However, under present law, it is possible for a 
     nonworking (or lesser earning) spouse to make IRA 
     contributions in excess of the couple's combined earned 
     income. The following example illustrates present law.
       Example: Suppose H and W retire in the middle of January, 
     1999. In that year, H earns $1,000 and W earns $500. Both are 
     active participants in an employer-sponsored retirement plan. 
     Their modified AGI is $60,000. They make no Roth IRA 
     contributions. Before application of the income phase-out 
     rules, the maximum deductible IRA contribution that H can 
     make is $1,000 (sec. 219(b)(1)). After application of the 
     income phase-out rule in section 219(g), H's maximum 
     contribution is $200, and H contributes that amount to an 
     IRA. Under 408(o)(2)(B), H can make nondeductible 
     contributions of $800 ($1,000-$200).
       W's maximum permitted deductible contribution under section 
     219(c)(1)(B), before the income phase-out, is $1,300 (the sum 
     of H and W's earned income ($1,500), less H's deductible IRA 
     contribution ($200)). Under the income phase-out, W's 
     deductible contribution is limited to $200, and she can make 
     a nondeductible contribution of $1,000 ($1,300-$200).
       The total permitted contributions for H and W are $2,300 
     ($1,000 for H plus $1,300 for W). The combined contribution 
     should be limited to $1,500, their combined earned income of 
     the spouses.
       The provision provides that the contributions for the 
     spouse with the lesser income cannot exceed the combined 
     earned income of the spouses.
     Amendment related to the Revenue Reconciliation Act of 1990
       Qualified tertiary injectant expenses.--The provision 
     clarifies that the enhanced oil recovery credit (sec. 43) 
     applies with respect to qualified tertiary injectant expenses 
     described in section 193(b) that are paid or incurred in 
     connection with a qualified enhanced oil recovery project, 
     and that are deductible for the taxable year (regardless of 
     the provision allowing the deduction). Purchased and self-
     produced injectants are treated the same for purposes of the 
     section 43 credit.
     Amendments to other Acts (sec. 318 of the bill)
       Insurance.--The legislative history of section 7702A(a) 
     (enacted in the Technical and Miscellaneous Revenue Act of 
     1988) indicated that if a life insurance contract became a 
     modified endowment contract (``MEC''), then the MEC status 
     could not be eliminated by exchanging the MEC for another 
     contract. Section 7702A(a)(2), however, arguably might be 
     read to allow a policyholder to exchange a MEC for a contract 
     that does not fail the 7-pay test of section 7702A(b), then 
     exchange the second contract for a third contract, which 
     would not literally have been received in exchange for a 
     contract that failed to meet the 7-pay test. The provision 
     clarifies section 7702A(a)(2) to correspond to the 
     legislative history, effective as if enacted with the 
     Technical and Miscellaneous Revenue Act of 1988 (generally, 
     for contracts entered into on or after June 21, 1988).
       Insurance.--Under section 7702A, if a life insurance 
     contract that is not a modified endowment contract is 
     actually or deemed exchanged for a new life insurance 
     contract, then the 7-pay limit under the new contract is 
     first be computed without reference to the premium paid using 
     the cash surrender value of the old contract, and then would 
     be reduced by \1/7\ of the premium paid taking into account 
     the cash surrender value of the old contract. For example, if 
     the old contract had a cash surrender value of $14,000 and 
     the 7-pay premium on the new contract would equal $10,000 per 
     year but for the fact that there was an exchange, the 7-pay 
     premium on the new contract would equal $8,000 ($10,000-
     $14,000/7). However, section 7702A(c)(3)(A) arguably might be 
     read to suggest that if the cash surrender value on the new 
     contract was $0 in the first two years (due to surrender 
     charges), then the 7-pay premium might be $10,000 in this 
     example, unintentionally permitting policyholders to engage 
     in a series of ``material changes'' to circumvent the premium 
     limitations in section 7702A. The provision clarifies section 
     7702A(c)(3)(A) to refer to the cash surrender value of the 
     old contract, effective as if enacted with the Technical and 
     Miscellaneous Revenue Act of 1988 (generally, for contracts 
     entered into on or after June 21, 1988).
       Worthless securities.--Section 165(g)(3) provides a special 
     rule for worthless securities of an affiliated corporation. 
     The test for affiliation in section 165(g)(3)(A) is the 80-
     percent vote test for affiliated groups under section 1504(a) 
     that was in effect prior to 1984. When section 1504(a) was 
     amended in the Deficit Reduction Act of 1984 to adopt the 
     vote and value test of present law, no corresponding change 
     was made to section 165(g)(3)(A), even though the tests had 
     been identical until then. The provision conforms the 
     affiliation test of section 165(g)(3)(A) to the test in 
     section 1504(a)(2), effective for taxable years beginning 
     after December 31, 1984.
       Exception for certain annuities under OID rules.--The 
     Deficit Reduction Act of 1984 expanded the prior--law rules 
     for inclusion in income of original issue discount (``OID'') 
     on debt instruments. That Act provided an exception from the 
     definition of a debt instrument for certain annuity 
     contracts, including any annuity contract to which section 72 
     applies and that is issued by an insurance company subject to 
     tax under subchapter L of the Code (and meets certain other 
     requirements) (sec. 1275(a)(1)(B)(ii)). The provision 
     clarifies that an annuity contract otherwise meeting the 
     applicable requirements also comes within the exception of 
     section 1275(a)(1)(B)(ii) if it is issued by an entity 
     described in section 501(c) and exempt from tax under section 
     501(a), that would be subject to tax as an insurance company 
     under subchapter L if it were not exempt under section 
     501(a). For example, the provision clarifies that an annuity 
     contract otherwise meeting the requirements that is issued by 
     a fraternal beneficiary society which is exempt from Federal 
     income tax under section 501(a), and which is described in 
     section 501(c)(8), comes within the exception under section 
     1275(a)(1)(B)(ii). It is understood that charitable gift 
     annuities (as defined in sec. 501(m)) depend (in whole or in 
     substantial part) on the life expectancy of one or more 
     individuals, and thus come within the exception under section 
     1275(a)(1)(B)(i). The provision is effective as if included 
     with section 41 of the Deficit Reduction Act of 1984 (i.e., 
     for taxable years ending after July 18, 1984).
       Losses from section 1256 contracts.--Section 6411 allows 
     tentative refunds for NOL carry-backs, business credit 
     carrybacks and, for corporations only, capital loss 
     carrybacks. Individuals normally cannot carry back a capital 
     loss. However, section 1212(c) does allow a carryback of 
     section 1256 losses, if elected by the taxpayer. The 
     provision amends section 6411(a) by including a reference to 
     section 1212(c), effective as if included with section 504 of 
     the Economic Recovery Tax Act of 1981.
       Highway Trust Fund.--The provision modifies administrative 
     procedures of the Highway Trust Fund to conform to the 1993 
     repeal of the special tax rate applicable to ethanol prior to 
     1994. The provision is effective for taxes received after the 
     date of enactment. This ensures that retroactive adjustments, 
     if any, are not made to the Highway Trust Fund.
       Conforming amendment for expenditures from Vaccine Injury 
     Compensation Trust Fund.--The provision makes a conforming 
     amendment to the expenditure purposes of the Vaccine Injury 
     Compensation Trust Fund to enable certain payments to be made 
     from the Trust Fund.
     Clerical changes
       The bill makes a number of clerical and typographical 
     amendments to the Code.


                            senate amendment

       No provision.


                          Conference Agreement

       The conference agreement follows H.R. 5542.

        TITLE IV. TAX TREATMENT OF SECURITIES FUTURES CONTRACTS

      (sec. 401 of the bill and secs. 1234B and 1256 of the Code)


                              present law

     In general
       Generally, gain or loss from the sale of property, 
     including stock, is recognized at the time of sale or other 
     disposition of the property, unless there is a specific 
     statutory provision of nonrecognition (sec. 1001).
       Gains and losses from the sale or exchange of capital 
     assets are subject to special rules. In the case of 
     individuals, net capital gain is generally subject to a 
     maximum tax rate of 20 percent (sec. 1(h)). Net capital gain 
     is the excess of net long-term capital gains over net short-
     term capital losses. Also, capital losses are allowed only to 
     the extent of capital gains plus, in the case of individuals, 
     $3,000 (sec. 1211). Capital losses of individuals may be 
     carried forward indefinitely and capital losses of 
     corporations may be carried back three years and forward five 
     years (sec. 1212).
       Generally, in order for gains or losses on a sale or 
     exchange of a capital asset to be long-term capital gains or 
     losses, the asset must be held for more than one year (sec. 
     1222).\61\

[[Page 27000]]

     A capital asset generally includes all property held by the 
     taxpayer except certain enumerated types of property such as 
     inventory (sec. 1221).
---------------------------------------------------------------------------
     \61\ The holding period for futures transactions in a 
     commodity is 6 months. The 6-month holding period does not 
     apply to futures which are subject to the mark-to-market 
     rules of section 1256, discussed below.
---------------------------------------------------------------------------
     Section 1256 contracts
       Special rules apply to ``section 1256 contracts,'' which 
     include regulated futures contracts, certain foreign currency 
     contracts, nonequity options, and dealer equity options. Each 
     section 1256 contract is treated as if it were sold (and 
     repurchased) for its fair market value on the last business 
     day of the year (i.e., ``marked to market''). Any gain or 
     loss with respect to a section 1256 contract which is subject 
     to the mark-to-market rule is treated as if 40 percent of the 
     gain or loss were short-term capital gain or loss and 60 
     percent were long-term capital gain or loss. This results in 
     a maximum rate of 27.84 percent on any gain for taxpayers 
     other than corporations. The mark-to-market rule (and the 
     special 60/40 capital treatment) is inapplicable to hedging 
     transactions.
       A ``regulated futures contract'' is a contract (1) which is 
     traded on or subject to the rules of a national securities 
     exchange registered with the Securities Exchange Commission, 
     a domestic board of trade designated a contract market by the 
     Commodities Futures Trading Commission, or similar exchange, 
     board of trade, or market, and (2) with respect to which the 
     amount required to be deposited and which may be withdrawn 
     depends on a system of marking to market.
       A ``dealer equity option'' means, with respect to an 
     options dealer, an equity option purchased in the normal 
     course of the activity of dealing in options and listed on 
     the qualified board or exchange on which the options dealer 
     is registered. An equity option is an option to buy or sell 
     stock or an option the value of which is determined by 
     reference to any stock, group or stocks, or stock index, 
     other than an option on certain broad-based groups of stock 
     or stock index.\62\ An options dealer is any person who is 
     registered with an appropriate national securities exchange 
     as a market maker or specialist in listed options, or who the 
     Secretary of the Treasury determines performs functions 
     similar to market makers and specialists.\63\
---------------------------------------------------------------------------
     \62\ Rev. Rul. 94-63, 1994-2 C.B. 188, provides that the 
     determination made by the Securities and Exchange Commission 
     will determine whether or not an option is ``broad based''.
     \63\ A special rule provides that any gain or loss with 
     respect to dealer equity options, which are allocable to 
     limited partners or limited entrepreneurs are treated as 
     short-term capital gain or loss and do not qualify for the 60 
     percent long-term, 40 percent short-term capital gain or loss 
     treatment of section 1256(a)(3).
---------------------------------------------------------------------------
     Mark to market accounting for dealers in securities
       Under present law, a dealer in securities must compute its 
     income from dealer in securities pursuant to mark-to-market 
     of accounting (sec. 475). Gains and losses are treated as 
     ordinary income and loss. Traders in securities, and dealers 
     and traders in commodities may elect to use this method of 
     accounting, including the ordinary income treatment. Section 
     1256 contracts are not treated as securities for purposes of 
     section 475.\64\
---------------------------------------------------------------------------
     \64\ As discussed above, dealers in equity options are 
     subject to mark-to-market accounting and the special capital 
     gain rules of section 1256.
---------------------------------------------------------------------------
     Short sales
       In the case of a ``short sale'' (i.e., where he taxpayer 
     sells borrowed property and later closes the sale by repaying 
     the lender with substantially identical property), any gain 
     or loss on the closing transaction is considered gain or loss 
     from the sale or exchange of a capital asset if the property 
     used to close the short sale is a capital asset in the hands 
     of the taxpayer, but the gain is ordinarily treated as short-
     term gain (sec. 1233(a)).
       The Internal Revenue Code (the ``Code'') also contains 
     several rules intended to prevent the transformation of 
     short-term capital gain into long-term capital gain or long-
     term capital loss into short-term loss by simultaneously 
     holding property and selling short substantially identical 
     property (sec. 1233(b) and (d)). Under these rules, if 
     taxpayer holds property for less than the long-term holding 
     period and sells short substantially identical property, any 
     gain or loss upon the closing of the short sale is considered 
     short-term capital gain, and the holding period of the 
     substantially identical property is generally considered to 
     begin on the date of the closing of the short sale. Also, if 
     a taxpayer has held property for more than the long-term 
     holding period and sells short substantially identical 
     property, any loss on the closing of the short sale is 
     considered a long-term capital loss.
       For purposes of these short sale rules, property includes 
     stock, securities, and commodity futures, but commodity 
     futures are not considered substantially identical if they 
     call for delivery in different months.
       For purposes of the short-sale rules relating to short-term 
     gains, the acquisition of an option to sell at a fixed price 
     is treated as a short sale, and the exercise or failure to 
     exercise the option is considered a closing of the short 
     sale. \65\
---------------------------------------------------------------------------
     \65\ An exception applies to sell acquired on the same day as 
     the property identified as intended to be used (and is so 
     used) in exercising the option is acquired (sec. 1233(c)).
---------------------------------------------------------------------------
       The Code also treats a taxpayer as recognizing gain where 
     the taxpayer holds appreciated property and enters into a 
     short sale of the same or substantially identical property, 
     or enters into a contract to sell that same or substantially 
     identical property (sec. 1259).
     Wash sales
       The wash-sale rule (sec. 1091) disallows certain losses 
     from the disposition of stock or securities if substantially 
     identical stock or securities (or an option or contract to 
     acquire such property) are acquired by the taxpayer during 
     the period beginning 30 days before the date of sale and 
     ending 30 days after such date of sale. Commodity futures are 
     not treated as stock or securities for purposes of this rule. 
     The basis of the substantially identical stock or securities 
     is adjusted to include the disallowed loss.
       Similar rules apply to disallow any loss realized on the 
     closing of a short sale of stock or securities where 
     substantially identical stock or securities are sold (or a 
     short sale, option or contract to sell is entered into) 
     during the applicable period before and after the closing of 
     the short sale.
     Straddle rules
       If a taxpayer realizes a loss with respect to a position in 
     a straddle, the taxpayer may recognize that loss for the 
     taxable year only to the extent that the loss exceeds the 
     unrecognized gain (if any) with respect to offsetting 
     positions in the straddle (sec. 1092). Disallowed losses are 
     carried forward to the succeeding taxable year and are 
     subject to the same limitation in that taxable year.
       A ``straddle'' generally refers to offsetting positions 
     with respect to actively traded personal property. Positions 
     are offsetting if there is a substantial diminution of risk 
     of loss from holding one position by reason of holding one or 
     more other positions in personal property. A ``position'' in 
     personal property is an interest (including a futures or 
     forward contract or option) in personal property.
       The straddle rules provide that the Secretary of the 
     Treasury may issue regulations applying the short sale 
     holding period rules to positions in a straddle. Temporary 
     regulations have been issued setting forth the holding period 
     rules applicable to positions in a straddle. \66\ To the 
     extent these rules apply to a position, the rules in section 
     1233(b) and (d) do not apply.
---------------------------------------------------------------------------
     \66\ Reg. sec. 1.1092(b)--2T.
---------------------------------------------------------------------------
       The straddle rules generally do not apply to positions in 
     stock. However the straddle rules apply if one of the 
     positions is stock and at least one of the offsetting 
     positions is either (1) an option with respect to stock or 
     (2) a position with respect to substantially similar or 
     related property (other than stock) as defined in Treasury 
     regulations. Under property Treasury regulations, a position 
     with respect to substantially similar or related property 
     does not include stock or a short sale of stock, but includes 
     any other position with respect to substantially similar or 
     related property. \67\
---------------------------------------------------------------------------
     \67\ Prop. Reg. sec. 1.1092(d)--2(c).
---------------------------------------------------------------------------
       If a straddle consists of both positions that are section 
     1256 contracts and positions that are not such contracts, the 
     taxpayer may designate the positions as a mixed straddle. 
     Positions in a mixed straddle are not subject to the mark-to-
     market rule of section 1256, but instead are subject to rules 
     written under regulations to prevent the deferral of tax or 
     the conversion of short-term capital gain to long-term 
     capital gain or long-term capital loss into short-term 
     capital loss.
     Transactions by a corporation in its own stock
       A corporation does not recognize gain or loss on the 
     receipt of money or other property in exchange for its own 
     stock. Likewise, a corporation does not recognize gain or 
     loss when it redeems its stock with cash, for less or more 
     than it received when the stock was issued. In addition, a 
     corporation does not recognize gain or loss on any lapse or 
     acquisition or an option to buy or sell its stock (sec. 
     1032).


                               House Bill

       No provision. However, section 124(c) and (d) of H.R. 4541 
     \68\ contained the following provisions:
---------------------------------------------------------------------------
     \68\ H.R. 4541 passed the House of Representatives on October 
     19, 2000.
---------------------------------------------------------------------------
     In general
       Except in the case of dealer securities futures contracts 
     described below, securities futures contracts are not treated 
     as section 1256 contracts. Thus, holders of these contracts 
     are not subject to the mark-to-market rules of section 1256 
     and are not eligible for 60-percent long-term capital gain 
     treatment under section 1256. Instead, gain or loss on these 
     contracts will be recognized under the general rules relating 
     to the disposition of property. \69\
---------------------------------------------------------------------------
     \69\ Any securities futures contract which is not a section 
     1256 contract will be treated as a ``security'' for purposes 
     of section 475. Thus, for example, traders in securities 
     futures contracts
---------------------------------------------------------------------------
       A securities futures contract is defined in section 
     3(a)(55)(A) of the Securities Exchange Act of 1934, as added 
     by the bill. In general, that definition provides that a 
     securities futures contract means a contract of sale for

[[Page 27001]]

     future delivery of a single security or a narrow-based 
     security index. A securities futures contract will not be 
     treated as a commodities futures contract for purposes of the 
     Code.
     Treatment of gains and losses
       The bill provides that any gain or loss from the sale or 
     exchange of a securities futures contract (other than a 
     dealer securities futures contract) will be considered as 
     gain or loss from the sale or exchange of property which has 
     the same character as the property to which the contract 
     relates has (or would have) in the hands of the taxpayer. 
     Thus, if the underlying security would be a capital asset in 
     the taxpayer's hands, then gain or loss from the sale or 
     exchange of the securities futures contract would be capital 
     gain or loss. The bill also provides that the termination of 
     a securities futures contract which is a capital asset will 
     be treated as a sale or exchange of the contract.
       Capital gain treatment will not apply to contracts which 
     themselves are not capital assets because of the exceptions 
     to the definition of a capital asset relating to inventory 
     (sec. 1221(a)(1)) or hedging (sec. 1221(a)(7)), or to any 
     income derived in connection with a contract which would 
     otherwise be treated as ordinary income.
       Except as otherwise provided in regulations under section 
     1092(b) (which treats certain losses from a straddle as long-
     term capital losses) and section 1234B, as added by the bill, 
     any capital gain or loss from the sale or exchange of a 
     securities futures contract to sell property (i.e., the short 
     side of a securities futures contract) will be short-term 
     capital gain or loss. In other words, a securities futures 
     contract to sell property is treated as equivalent to a short 
     sale of the underlying property.
     Wash sale rules
       The bill clarifies that, under the ash sale rules, a 
     contract or option to acquire or sell stock or securities 
     shall include options and contracts that are (or may be) 
     settled in cash or property other than the stock or 
     securities to which the contract relates. Thus, for example, 
     the acquisition, within the period set forth in section 1091, 
     of a securities futures contract to acquire stock of a 
     corporation could cause the taxpayer's loss on the sale of 
     stock in that corporation to be disallowed, notwithstanding 
     that the contract may be settled in cash.
     Short sale rules
       In applying the short sale rules, a securities futures 
     contract to acquire property will be treated in manner 
     similar to the property itself. Thus, for example, the 
     holding of a securities futures contract to acquire property 
     and the short sale of property which is substantially 
     identical to the property under the contract will result in 
     the application of the rules of section 1233(b).\70\ In 
     addition, as stated above, a securities futures contract to 
     sell is treated in a manner similar to a short sale of the 
     property.
---------------------------------------------------------------------------
     \70\ Because securities futures contracts are not treated as 
     futures contracts with respect to commodities, the rule 
     providing that commodity futures are not substantially 
     identical if they call for delivery in different months does 
     not apply.
---------------------------------------------------------------------------
     Straddle rules
       Stock which is part of a straddle at least one of the 
     offsetting positions of which is a securities futures 
     contract with respect to the stock or substantially identical 
     stock will be subject to the straddle rules of section 1092. 
     Treasury regulations under section 1092 applying the 
     principles of the section 1233(b) and (d) short sale rules to 
     positions in a straddle will also apply.
       For example, assume a taxpayer holds a long-term position 
     in actively traded stock (which is a capital asset in the 
     taxpayer's hands) and enters into a securities futures 
     contract to sell substantially identical stock (at a time 
     when the position in the stock has not appreciated in value 
     so that the constructive sale rules of section 1259 do not 
     apply). The taxpayer has a straddle. Treasury regulations 
     prescribed under section 1092(b) applying the principles of 
     section 1233(d) will apply, so that any loss on closing the 
     securities futures contract will be a long-term capital loss.
     Section 1032
       A corporation will not recognize gain or loss on 
     transactions in securities futures contracts with respect to 
     its own stock.
     Holding period
       If property is delivered in satisfaction of a securities 
     futures contract to acquire property (other than a contract 
     to which section 1256 applies), the holding period for the 
     property will include the period the taxpayer held the 
     contract, provided that the contract was a capital asset in 
     the hands of the taxpayer.
     Regulations
       The Secretary of the Treasury or his delegate has the 
     authority to prescribe regulations to provide for the proper 
     treatment of securities futures contracts under provisions of 
     the Internal Revenue Code.
     Dealers in securities futures contracts
       In general, the bill provides that securities futures 
     contracts and options on such contracts are not section 1256 
     contracts. The bill provides, however, that ``dealer 
     securities futures contracts'' will be treated as section 
     1256 contracts.
       The term `'dealer securities futures contract'' means a 
     securities futures contract which is entered into by a dealer 
     in the normal course of his or her trade or business activity 
     of dealing in such contracts, and is traded on a qualified 
     board of trade or exchange. The term also includes any option 
     to enter into securities futures contracts purchased or 
     granted by a dealer in the normal course of his or her trade 
     or business activity of dealing in such options. The 
     determination of who is to be treated as a dealer in 
     securities futures contracts is to be made by the Secretary 
     of the Treasury or his delegate not later than July 1, 2001. 
     Accordingly, the bill authorizes the Secretary to treat a 
     person as a dealer in securities futures contracts or options 
     on such contracts if the Secretary determines that the person 
     performs, with respect to such contracts or options, 
     functions similar to an equity options dealer, as defined 
     under present law.
       The determination of who is a dealer in securities futures 
     contracts is to be made in a manner that is appropriate to 
     carry out the purposes of the provision, which generally is 
     to provide comparable tax treatment between dealers in 
     securities futures contracts, on the one hand, and dealers in 
     equity options, on the other. Although traders in securities 
     futures contracts (and options on such contracts) may not 
     have the same market-making obligations as market makers or 
     specialists in equity options, many traders are expected to 
     perform analogous functions to such market makers or 
     specialists by providing market liquidity for securities 
     futures contracts (and options) even in the absence of a 
     legal obligation to do so. Accordingly, the absence of 
     market-making obligations is not inconsistent with a 
     determination that a class of traders are dealers in 
     securities futures contracts (and options), if the relevant 
     factors, including providing market liquidity for such 
     contracts (and options), indicate that the market functions 
     of the traders is comparable to that of equity options 
     dealers.
       As in the case of dealer equity options, gains and losses 
     allocated to any limited partner or limited entrepreneur with 
     respect to a dealer securities futures contract will be 
     treated as short-term capital gain or loss.
     Treatment of options under section 1256
       The bill modifies the definition of ``equity option'' for 
     purposes of section 1256 to take into account changes made by 
     the non-tax provisions of the bill. Only options dealers are 
     eligible for section 1256 with respect to equity options. The 
     term ``equity option'' is modified to include an option to 
     buy or sell stock, or an option the value of which is 
     determined, directly or indirectly, by reference to any 
     stock, or any ``narrow-based security index,'' as defined in 
     section 3(a)(55) of the Securities Exchange Act of 1934 (as 
     modified by the bill). An equity option includes an option 
     with respect to a group of stocks only if the group meets the 
     requirements for a narrow-based security index.
       As under present law, listed options that are not ``equity 
     options'' are considered ``nonequity options'' to which 
     section 1256 applies for all taxpayers. For example, options 
     relating to broad-based groups of stocks and broad based 
     stock indexes will continue to be treated as nonequity 
     options under section 1256.
     Definition of contract markets
       The non-tax provisions of the bill designate certain new 
     contract markets. The new contract markets will be contract 
     markets for purposes of the Code, except to the extent 
     provided in Treasury regulations.
     Effective Date
       These provisions will take effect on the date of enactment 
     of the bill.


                            Senate Amendment

       No provision.


                          Conference Agreement

       The conference agreement follows the tax provisions 
     contained in H.R. 4541.

                        TAX COMPLEXITY ANALYSIS

       Section 4022(b) of the Internal Revenue Service Reform and 
     Restructuring Act of 1998 (the ``IRS Reform Act'') requires 
     the Joint Committee on Taxation (in consultation with the 
     Internal Revenue Service and the Department of the Treasury) 
     to provide a tax complexity analysis. The complexity analysis 
     is required for all legislation reported by the House 
     Committee on Ways and Means, the Senate Committee on Finance, 
     or any committee of conference if the legislation includes a 
     provision that directly or indirectly amends the Internal 
     Revenue Code and has widespread applicability to individuals 
     or small businesses.
       The staff of the Joint Committee on Taxation has determined 
     that a complexity analysis is not required under section 
     4022(b) of the IRS Reform Act because the bill contains no 
     provisions that amend the Internal Revenue Code and that have 
     ``widespread applicability'' to individuals or small 
     businesses.

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[[Page 27005]]

            NEW MARKETS VENTURE CAPITAL PROGRAM ACT OF 2000

       The conference agreement would enact the provisions of H.R. 
     5663, as introduced on December 14, 2000. The text of that 
     bill follows:
     A BILL to provide for community renewal and new markets 
     initiatives
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SEC. 101. NEW MARKETS VENTURE CAPITAL PROGRAM.

       (a) Short Title.--This section may be cited as the ``New 
     Markets Venture Capital Program Act of 2000''.
       (b) New Markets Venture Capital Program.--Title III of the 
     Small Business Investment Act of 1958 (15 U.S.C. 681 et seq.) 
     is amended--
       (1) in the heading for the title, by striking ``SMALL 
     BUSINESS INVESTMENT COMPANIES'' and inserting ``INVESTMENT 
     DIVISION PROGRAMS'';
       (2) by inserting before the heading for section 301 the 
     following:

            ``PART A--SMALL BUSINESS INVESTMENT COMPANIES'';

     and
       (3) by adding at the end the following:

             ``PART B--NEW MARKETS VENTURE CAPITAL PROGRAM

     ``SEC. 351. DEFINITIONS.

       ``In this part, the following definitions apply:
       ``(1) Developmental venture capital.--The term 
     `developmental venture capital' means capital in the form of 
     equity capital investments in businesses made with a primary 
     objective of fostering economic development in low-income 
     geographic areas. For the purposes of this paragraph, the 
     term `equity capital' has the same meaning given such term in 
     section 303(g)(4).
       ``(2) Low-income individual.--The term `low-income 
     individual' means an individual whose income (adjusted for 
     family size) does not exceed--
       ``(A) for metropolitan areas, 80 percent of the area median 
     income; and
       ``(B) for nonmetropolitan areas, the greater of--
       ``(i) 80 percent of the area median income; or
       ``(ii) 80 percent of the statewide nonmetropolitan area 
     median income.
       ``(3) Low-income geographic area--the term `low-income 
     geographic area' means--
       ``(A) any population census tract (or in the case of an 
     area that is not tracted for population census tracts, the 
     equivalent county division, as defined by the Bureau of the 
     Census of the Department of Commerce for purposes of defining 
     poverty areas), if--
       ``(i) the poverty rate for that census tract is not less 
     than 20 percent;
       ``(ii) in the case of a tract--

       ``(I) that is located within a metropolitan area, 50 
     percent or more of the households in that census tract have 
     an income equal to less than 60 percent of the area median 
     gross income; or
       ``(II) that is not located within a metropolitan area, the 
     median household income for such tract does not exceed 80 
     percent of the statewide median household income; or

       ``(iii) as determined by the Administrator based on 
     objective criteria, a substantial population of low-income 
     individuals reside, an inadequate access to investment 
     capital exists, or other indications of economic distress 
     exist in that census tract; or
       ``(B) any area located within--
       ``(i) a HUBZone (as defined in section 3(p) of the Small 
     Business Act and the implementing regulations issued under 
     that section);
       ``(ii) an urban empowerment zone or urban enterprise 
     community (as designated by the Secretary of Housing and 
     Urban Development); or
       ``(iii) a rural empowerment zone or rural enterprise 
     community (as designated by the Secretary of Agriculture).
       ``(4) New markets venture capital company.--The term `New 
     Markets Venture Capital company' means a company that--
       ``(A) has been granted final approval by the Administrator 
     under section 354(e); and
       ``(B) has entered into a participation agreement with the 
     Administrator.
       ``(5) Operational assistance.--The term `operational 
     assistance' means management, marketing, and other technical 
     assistance that assists a small business concern with 
     business development.
       ``(6) Participation agreement.--The term `participation 
     agreement' means an agreement, between the Administrator and 
     a company granted final approval under section 354(e), that--
       ``(A) details the company's operating plan and investment 
     criteria; and
       ``(B) requires the company to make investments in smaller 
     enterprises at least 80 percent of which are located in low-
     income geographic areas.
       ``(7) Specialized small business investment company.--The 
     term `specialized small business investment company' means 
     any small business investment company that--
       ``(A) invests solely in small business concerns that 
     contribute to a well-balanced national economy by 
     facilitating ownership in such concerns by persons whose 
     participation in the free enterprise system is hampered 
     because of social or economic disadvantages;
       ``(B) is organized or chartered under State business or 
     nonprofit corporations statutes, or formed as a limited 
     partnership; and
       ``(C) was licensed under section 301(d), as in effect 
     before September 30, 1996.
       ``(8) State.--The term `State' means such of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, and any other 
     commonwealth, territory, or possession of the United States;

     ``SEC. 352. PURPOSES.

       ``The purposes of the New Markets Venture Capital Program 
     established under this part are--
       ``(1) to promote economic development and the creation of 
     wealth and job opportunities in low-income geographic areas 
     and among individuals living in such areas by encouraging 
     developmental venture capital investments in smaller 
     enterprises primarily located in such areas; and
       ``(2) to establish a developmental venture capital program, 
     with the mission of addressing the unmet equity investment 
     needs of small enterprises located in low-income geographic 
     areas, to be administered by the Administrator--
       ``(A) to enter into participation agreements with New 
     Markets Venture Capital companies;
       ``(B) to guarantee debentures of New Markets Venture 
     Capital companies to enable each such company to make 
     developmental venture capital investments in smaller 
     enterprises in low-income geographic areas; and
       ``(C) to make grants to New Markets Venture Capital 
     companies, and to other entities, for the purpose of 
     providing operational assistance to smaller enterprises 
     financed, or expected to be financed, by such companies.

     ``SEC. 353. ESTABLISHMENT.

       ``In accordance with this part, the Administrator shall 
     establish a New Markets Venture Capital Program, under which 
     the Administrator may--
       ``(1) enter into participation agreements with companies 
     granted final approval under section 354(e) for the purposes 
     set forth in section 352;
       ``(2) guarantee the debentures issued by New Markets 
     Venture Capital companies as provided in section 355; and
       ``(3) make grants to New Markets Venture Capital companies, 
     and to other entities, under section 358.

     ``SEC. 354. SELECTION OF NEW MARKETS VENTURE CAPITAL 
                   COMPANIES.

       ``(a) Eligibility.--A company shall be eligible to apply to 
     participate, as a New Markets Venture Capital company, in the 
     program established under this part if--
       ``(1) the company is a newly formed for-profit entity or a 
     newly formed for-profit subsidiary of an existing entity;
       ``(2) the company has a management team with experience in 
     community development financing or relevant venture capital 
     financing; and
       ``(3) the company has a primary objective of economic 
     development of low-income geographic areas.
       ``(b) Application.--To participate, as a New Markets 
     Venture Capital company, in the program established under 
     this part a company meeting the eligibility requirements set 
     forth in subsection (a) shall submit an application to the 
     Administrator that includes--
       ``(1) a business plan describing how the company intends to 
     make successful developmental venture capital investments in 
     identified low-income geographic areas;
       ``(2) information regarding the community development 
     finance or relevant venture capital qualifications and 
     general reputation of the company's management;
       ``(3) a description of how the company intends to work with 
     community organizations and to seek to address the unmet 
     capital needs of the communities served;
       ``(4) a proposal describing how the company intends to use 
     the grant funds provided under this part to provide 
     operational assistance to smaller enterprises financed by the 
     company, including information regarding whether the company 
     intends to use licensed professionals, when necessary, on the 
     company's staff or from an outside entity;
       ``(5) with respect to binding commitments to be made to the 
     company under this part, an estimate of the ratio of cash to 
     in-kind contributions;
       ``(6) a description of the criteria to be used to evaluate 
     whether and to what extent the company meets the objectives 
     of the program established under this part;
       ``(7) information regarding the management and financial 
     strength of any parent firm, affiliated firm, or any other 
     firm essential to the success of the company's business plan; 
     and
       ``(8) such other information as the Administrator may 
     require.
       ``(c) Conditional Approval.--
       ``(1) In general.--From among companies submitting 
     applications under subsection (b), the Administrator shall, 
     in accordance with this subsection, conditionally approval 
     companies to participate in the New Markets Venture Capital 
     Program.
       ``(2) Selection criteria.--In selecting companies under 
     paragraph (1), the Administrator shall consider the 
     following:
       ``(A) The likelihood that the company will meet the goal of 
     its business plan.
       ``(B) The experience and background of the company's 
     management team.
       ``(C) The need for developmental venture capital 
     investments in the geographic areas in which the company 
     intends to invest.
       ``(D) The extent to which the company will concentrate its 
     activities on serving the geographic areas in which it 
     intends to invest.
      ``(E) The likelihood that the company will be able to 
     satisfy the conditions under subsection (d).

[[Page 27006]]

      ``(F) The extent to which the activities proposed by the 
     company will expand economic opportunities in the geographic 
     areas in which the company intends to invest.
      ``(G) The strength of the company's proposal to provide 
     operational assistance under this part as the proposal 
     relates to the ability of the applicant to meet applicable 
     cash requirements and properly utilize in-kind contributions, 
     including the use of resources for the services of licensed 
     professionals, when necessary, whether provided by persons on 
     the company's staff or by persons outside of the company.
      ``(H) Any other factors deemed appropriate by the 
     Administrator.
      ``(3) Nationwide distribution.--The Administrator shall 
     select companies under paragraph (1) in such a way that 
     promotes investment nationwide.
       ``(d) Requirements To Be Met for Final Approval--The 
     Administrator shall grant each conditionally approved company 
     a period of time, not to exceed 2 years, to satisfy the 
     following requirements:
      ``(1) Capital requirement.--Each conditionally approved 
     company shall raise not less than $5,000,000 of private 
     capital or binding capital commitments from one or more 
     investors (other than agencies or departments of the Federal 
     Government) who met criteria established by the 
     Administrator.
      ``(2) Nonadministration resources for operational 
     assistance.--
      ``(A) In general.--In order to provide operational 
     assistance to smaller enterprises expected to be financed by 
     the company, each conditionally approved company--
      ``(i) shall have binding commitments (for contribution in 
     cash or in kind)--

      ``(I) from any sources other than the Small Business 
     Administration that meet criteria established by the 
     Administrator;
      ``(II) payable or available over a multiyear period 
     acceptable to the Administrator (not to exceed 10 years); and
      ``(III) in an amount not less than 30 percent of the total 
     amount of capital and commitments raised under paragraph (1);

      ``(ii) shall have purchased an annuity--

      ``(I) from an insurance company acceptable to the 
     Administrator;
      ``(II) using funds (other than the funds raised under 
     paragraph (1)), from any source other than the Administrator; 
     and
      ``(III) that yields cash payments over a multiyear period 
     acceptable to the Administrator (not to exceed 10 years) in 
     an amount not less than 30 percent of the total amount of 
     capital and commitments raised under paragraph (1); or

      ``(iii) shall have binding commitments (for contributions in 
     cash or in kind) of the type described in clause (i) and 
     shall have purchased an annuity of the type described in 
     clause (ii), which in the aggregate make available, over a 
     multiyear period acceptable to the Administrator (not to 
     exceed 10 years), an amount not less than 30 percent of the 
     total amount of capital and commitments raised under 
     paragraph (1).
      ``(B) Exception.--The Administrator may, in the discretion 
     of the Administrator and based upon a showing of special 
     circumstances and good cause, consider an applicant to have 
     satisfied the requirements of subparagraph (A) if the 
     applicant has--
      ``(i) a viable plan that reasonably projects the capacity of 
     the applicant to raise the amount (in cash or in-kind) 
     required under subparagraph (A); and
      ``(ii) binding commitments in an amount equal to not less 
     than 20 percent of the total amount required under paragraph 
     (A).
      ``(C) Limitation.--In order to comply with the requirements 
     of subparagraphs (A) and (B), the total amount of a company's 
     in-kind contributions may not exceed 50 percent of the 
     company's total contributions.
       ``(e) Final Approval; Designation--The Administrator shall, 
     with respect to each applicant conditionally approved to 
     operate as a New Markets Venture Capital company under 
     subsection (c), either--
      ``(1) grant final approval to the applicant to operate as a 
     New Markets Venture Capital company under this part and 
     designate the applicant as such a company, if the applicant--
       ``(A) satisfies the requirements of subsection (d) on or 
     before the expiration of the time period described in that 
     subsection; and
       ``(B) enters into a participation agreement with the 
     Administrator; or
       ``(2) if the applicant fails to satisfy the requirements of 
     subsection (d) on or before the expiration of the time period 
     described in that subsection, revoke the conditional approval 
     granted under that subsection.

     ``SEC. 355. DEBENTURES.

       ``(a) In General.--The Administrator may guarantee the 
     timely payment of principal and interest, as scheduled, on 
     debentures issued by any New Markets Venture Capital company.
       ``(b) Terms and Conditions.--The Administrator may make 
     guarantees under this section on such terms and conditions as 
     it deems appropriate, except that the term of any debenture 
     guaranteed under this section shall not exceed 15 years.
       ``(c) Full Faith and Credit of the United States.--The full 
     faith and credit of the United States is pledged to pay all 
     amounts that may be required to be paid under any guarantee 
     under this part.
       ``(d) Maximum Guarantee.--
       ``(1) In general.--Under this section, the Administrator 
     may guarantee the debentures issued by a New Markets Venture 
     Capital company only to be extent that the total face amount 
     of outstanding guaranteed debentures of such company does not 
     exceed 150 percent of the private capital of the company, as 
     determined by the Administrator.
       ``(2) Treatment of certain federal funds.--For the purposes 
     of paragraph (1), private capital shall include capital that 
     is considered to be Federal funds, if such capital is 
     contributed by an investor other than an agency or department 
     of the Federal Government.

     ``SEC. 356. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.

       ``(a) Issuance.--The Administrator may issue trust 
     certificates representing ownership of all or a fractional 
     part of debentures issued by a New Markets Venture Capital 
     company and guaranteed by the Administrator under this part, 
     if such certificates are based on and backed by a trust or 
     pool approved by the Administrator and composed solely of 
     guaranteed debentures.
       ``(b) Guarantee.--
       ``(1) In general.--The Administrator may, under such terms 
     and conditions as it deems appropriate, guarantee the timely 
     payment of the principal of and interest on trust 
     certificates issued by the Administrator or its agents for 
     purposes of this section.
       ``(2) Limitation.--Each guarantee under this subsection 
     shall be limited to the extent of principal and interest on 
     the guaranteed debentures that compose the trust or pool.
       ``(3) Prepayment or default.--In the event that a debenture 
     in a trust or pool is prepaid, or in the event of default of 
     such a debenture, the guarantee of timely payment of 
     principal and interest on the trust certificates shall be 
     reduced in proportion to the amount of principal and interest 
     such prepaid debenture represents in the trust or pool. 
     Interest on prepaid or defaulted debentures shall accrue and 
     be guaranteed by the Administrator only through the date of 
     payment of the guarantee. At any time during its term, a 
     trust certificate may be called for redemption due to 
     prepayment or default of all debentures.
       ``(c) Full Faith and Credit of the United States.--The full 
     faith and credit of the United States is pledged to pay all 
     amounts that may be required to be paid under any guarantee 
     of a trust certificate issued by the Administrator or its 
     agents under this section.
       ``(d) Fees.--The Administrator shall not collect a fee for 
     any guarantee of a trust certificate under this section, but 
     any agent of the Administrator may collect a fee approved by 
     the Administrator for the functions described in subsection 
     (f)(2).
       ``(e) Subrogation and Ownership Rights.--
       ``(1) Subrogation.--In the event the Administrator pays a 
     claim under a guarantee issued under this section, it shall 
     be subrogated fully to the rights satisfied by such payment.
       ``(2) Ownership rights.--No Federal, State, or local law 
     shall preclude or limit the exercise by the Administrator of 
     its ownership rights in the debentures residing in a trust or 
     pool against which trust certificates are issued under this 
     section.
       ``(f) Management and Administration.--
       ``(1) Registration.--The Administrator may provide for a 
     central registration of all trust certificates issued under 
     this section.
       ``(2) Contracting of functions.--
       ``(A) In general.--The Administrator may contract with an 
     agent or agents to carry out on behalf of the Administrator 
     the pooling and the central registration functions provided 
     for in this section including, notwithstanding any other 
     provision of law--
       ``(i) maintenance, on behalf of and under the direction of 
     the Administrator, of such commercial bank accounts or 
     investments in obligations of the United States as may be 
     necessary to facilitate the creation of trusts or pools 
     backed by debentures guaranteed under this part; and
       ``(ii) the issuance of trust certificates to facilitate the 
     creation of such trusts or pools.
       ``(B) Fidelity bond or insurance requirement.--Any agent 
     performing functions on behalf of the Administrator under 
     this paragraph shall provide a fidelity bond or insurance in 
     such amounts as the Administrator determines to be necessary 
     to fully protect the interests of the United States.
       ``(3) Regulation of brokers and dealers.--The Administrator 
     may regulate brokers and dealers in trust certificates issued 
     under this section.
       ``(4) Electronic registration.--Nothing in this subsection 
     may be construed to prohibit the use of a book-entry or other 
     electronic form of registration for trust certificates issued 
     under this section.

     ``SEC. 357. FEES.

       ``Except as provided in section 356(d), the Administrator 
     may charge such fees as it deems appropriate with respect to 
     any guarantee or grant issued under this part.

     ``SEC. 358. OPERATIONAL ASSISTANCE GRANTS.

         ``(a) In General.--
       ``(1) Authority.--In accordance with this section, the 
     Administrator may make grants to New Markets Venture Capital 
     companies and to other entities, as authorized by this part, 
     to provide operational assistance to smaller enterprises 
     financed, or expected to be financed, by such companies or 
     other entities.
       ``(2) Terms.--Grants made under this subsection shall be 
     made over a multiyear period not to exceed 10 years, under 
     such other terms as the Administrator may require.
       ``(3) Grants to specialized small business investment 
     companies.--
       ``(A) Authority.--In accordance with this section, the 
     Administrator may make grants to

[[Page 27007]]

     specialized small business investment companies to provide 
     operational assistance to smaller enterprises financed, or 
     expected to be financed, by such companies after the 
     effective date of the New Markets Venture Capital Program Act 
     of 2000.
       ``(B) Use of funds.--The proceeds of a grant made under 
     this paragraph may be used by the company receiving such 
     grant only to provide operational assistance in connection 
     with an equity investment (made with capital raised after the 
     effective date of the New Markets Venture Capital Program Act 
     of 2000) in a business located in a low-income geographic 
     area.
       ``(C) Submission of plans.--A specialized small business 
     investment company shall be eligible for a grant under this 
     section only if the company submits to the Administrator, in 
     such form and manner as the Administrator may require, a plan 
     for use of the grant.
       ``(4) Grant amount.--
       ``(A) New markets venture capital companies.--The amount of 
     a grant made under this subsection to a New Markets Venture 
     Capital company shall be equal to the resources (in cash or 
     in kind) raised by the company under section 354(d)(2).
       ``(B) Other entities.--The amount of a grant made under 
     this subsection to any entity other than a New Markets 
     Venture Capital company shall be equal to the resources (in 
     cash or in kind) raised by the entity in accordance with the 
     requirements applicable to New Market Venture Capital 
     companies set forth in section 354(d)(2).
       ``(5) Pro rata reductions.--If the amount made available to 
     carry out this section is insufficient for the Administrator 
     to provide grants in the amounts provided for in paragraph 
     (4), the Administrator shall make pro rata reductions in the 
     amounts otherwise payable to each company and entity under 
     such paragraph.
       ``(b) Supplemental Grants.--
       ``(1) In general.--The Administrator may make supplemental 
     grants to New Markets Venture Capital companies and to other 
     entities, as authorized by this part under such terms as the 
     Administrator may require, to provide additional operational 
     assistance to smaller enterprises financed, or expected to be 
     financed, by the companies.
       ``(2) Matching requirement.--The Administrator may require, 
     as a condition of any supplemental grant made under this 
     subsection, that the company or entity receiving the grant 
     provide from resources (in a cash or in kind), other then 
     those provided by the Administrator, a matching contribution 
     equal to the amount of the supplemental grant.
       ``(c) Limitation.--None of the assistance made available 
     under this section may be used for any overhead or general 
     and administrative expense of a New Markets Venture Capital 
     company or a specialized small business investment company.

     ``SEC. 359. BANK PARTICIPATION.

       ``(a) In General.--Except as provided in subsection (b), 
     any national bank, any member bank of the Federal Reserve 
     System, and (to the extent permitted under applicable State 
     law) any insured bank that is not a member of such system, 
     may invest in any New Markets Venture Capital company, or in 
     any entity established to invest solely in New Markets 
     Venture Capital companies.
       ``(b) Limitation.--No bank described in subsection (a) may 
     make investments described in such subsection that are 
     greater than 5 percent of the capital and surplus of the 
     bank.

     ``SEC. 360. FEDERAL FINANCING BANK.

       ``Section 318 shall not apply to any debenture issued by a 
     New Markets Venture Capital company under this part.

     ``SEC. 361. REPORTING REQUIREMENT.

       ``Each New Markets Venture Capital company that 
     participates in the program established under this part shall 
     provide to the Administrator such information as the 
     Administrator may require, including--
       ``(1) information related to the measurement criteria that 
     the company proposed in its program application; and
       ``(2) in each case in which the company under this part 
     makes an investment in, or a loan or grant to, a business 
     that is not located in a low-income geographic area, a report 
     on the number and percentage of employees of the business who 
     reside in such areas.

     ``SEC. 362. EXAMINATIONS.

       ``(a) In General.--Each New Markets Venture Capital company 
     that participates in the program established under this part 
     shall be subject to examinations made at the direction of the 
     Investment Division of the Small Business Administration in 
     accordance with this section.
       ``(b) Assistance of Private Sector Entities.--Examinations 
     under this section may be conducted with the assistance of a 
     private sector entity that has both the qualifications and 
     the expertise necessary to conduct such examinations.
       ``(c) Costs.--
       ``(1) Assessment.--
       ``(A) In general.--The Administrator may assess the cost of 
     examinations under this section, including compensation of 
     the examiners, against the company examined.
       ``(B) Payment.--Any company against which the Administrator 
     assesses costs under this paragraph shall pay such costs.
       ``(d)Deposit of Funds.--Funds collected under this section 
     shall be deposited in the account for salaries and expenses 
     of the Small Business Administration.

     ``SEC. 363. INJUNCTIONS AND OTHER ORDERS.

       ``(a) In General.--Whenever, in the judgment of the 
     Administrator, a New Markets Venture Capital company or any 
     other person has engaged or is about to engage in any acts or 
     practices which constitute or will constitute a violation of 
     any provision of this Act, or of any rule or regulation under 
     this Act, or of any order issued under this Act, the 
     Administrator may make application to the proper district 
     court of the United States or a United States court of any 
     place subject to the jurisdiction of the United States for an 
     order enjoining such acts or practices, or for an order 
     enforcing compliance with such provision, rule, regulation, 
     or order, and such courts shall have jurisdiction of such 
     actions and, upon a showing by the Administrator that such 
     New Markets Venture Capital company or other person has 
     engaged or is about to engage in any such acts or practices, 
     a permanent or temporary injunction, restraining order, or 
     other order, shall be granted without bond.
       ``(b) Jurisdiction.--In any proceeding under subsection 
     (a), the court as a court of equity may, to such extent as it 
     deems necessary, take exclusive jurisdiction of the New 
     Market Venture Capital company and the assets thereof, 
     wherever located, and the court shall have jurisdiction in 
     any such proceeding to appoint a trustee or receiver to hold 
     or administer under the direction of the court the assets so 
     possessed.
       ``(c) Administrator As Trustee or Receiver.--
       ``(1) Authority.--The Administrator may act as trustee or 
     receiver of a New Markets Venture Capital company.
       ``(2) Appointment.--Upon request of the Administrator, the 
     court may appoint the Administrator to act as a trustee or 
     receiver of a New Markets Venture Capital company unless the 
     court deems such appointment inequitable or otherwise 
     inappropriate by reason of the special circumstances 
     involved.

     ``SEC. 364. ADDITIONAL PENALTIES FOR NONCOMPLIANCE

       ``(a) In General.--With respect to any New Markets Venture 
     Capital company that violates or fails to comply with any of 
     the provisions of this Act, of any regulation issued under 
     this Act, or of any participation agreement entered into 
     under this Act, the Administrator may in accordance with this 
     section--
       ``(1) void the participation agreement between the 
     Administrator and the company; and
       (2) cause the company to forfeit all of the rights and 
     privileges derived by the company from this Act.
       ``(b) Adjudication of Noncompliance.--
       ``(1) In general.--Before the Administrator may cause a New 
     Markets Venture Capital company to forfeit rights or 
     privileges under subsection (a), a court of the United States 
     of competent jurisdiction must find that the company 
     committed a violation, or failed to comply, in a cause of 
     action brought for that purpose in the district, territory, 
     or other place subject to the jurisdiction of the United 
     States, in which the principal office of the company is 
     located.
       ``(2) Parties authorized to file causes of action.--Each 
     cause of action brought by the United States under this 
     subsection shall be brought by the Administrator or by the 
     Attorney General.

     ``SEC. 365. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY 
                   DUTY.

       ``(a) Parties Deemed To Commit a Violation.--Whenever any 
     New Markets Venture Capital company violates any provision of 
     this Act, of a regulation issued under this Act, or of a 
     participation agreement entered into under this Act, by 
     reason of its failure to comply with its terms or by reason 
     of its engaging in any act or practice that constitutes or 
     will constitute a violation thereof, such violation shall 
     also be deemed to be a violation and an unlawful act 
     committed by any person who, directly or indirectly, 
     authorizes, orders, participates in, causes, brings about, 
     counsels, aids, or abets in the commission of any acts, 
     practices, or transactions that constitute or will 
     constitute, in whole or in part, such violation.
       ``(b) Fiduciary Duties.--It shall be unlawful for any 
     officer, director, employee, agent, or other participant in 
     the management or conduct of the affairs of a New Markets 
     Venture Capital company to engage in any act or practice, or 
     to omit any act or practice, in breach of the person's 
     fiduciary duty as such officer, director, employee, agent, or 
     participant if, as a result thereof, the company suffers or 
     is in imminent danger of suffering financial loss or other 
     damage.
       ``(c) Unlawful Acts.--Except with the written consent of 
     the Administrator, it shall be unlawful--
       ``(1) for any person to take office as an officer, 
     director, or employee of any New Markets Venture Capital 
     company, or to become an agent or participant in the conduct 
     of the affairs or management of such a company, if the 
     person--
       ``(A) has been convicted of a felony, or any other criminal 
     offense involving dishonesty or breach of trust, or
       ``(B) has been found civilly liable in damages, or has been 
     permanently or temporarily enjoined by an order, judgment, or 
     decree of a court of competent jurisdiction, by reason of any 
     act or practice involving fraud, or breach of trust; and
       ``(2) for any person continue to serve in any of the 
     capacities described in paragraph (1), if--
       ``(A) the person is convicted of a felony, or any other 
     criminal offense involving dishonesty or breach of trust, or
       ``(B) the person is found civilly liable in damages, or is 
     permanently or temporarily enjoined

[[Page 27008]]

     by an order, judgment, or decree of a court of competent 
     jurisdiction, by reason of any act or practice involving 
     fraud or breach of trust.

     ``SEC. 366. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.

       ``Using the procedures for removing or suspending a 
     director or an officer of a licensee set forth in section 313 
     (to the extent such procedures are not inconsistent with the 
     requirements of this part), the Administrator may remove or 
     suspend any director or officer of any New Markets Venture 
     Capital company.

     ``SEC. 367. REGULATIONS.

       ``The Administrator may issue such regulations as it deems 
     necessary to carry out the provisions of this part in 
     accordance with its purposes.

     ``SEC. 368. AUTHORIZATIONS OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     for fiscal years 2001 through 2006, to remain available until 
     expended, the following sums:
       ``(1) Such subsidy budget authority as may be necessary to 
     guarantee $150,000,000 of debentures under this part.
       ``(2) $30,000,000 to make grants under this part.
       ``(b) Funds Collected for Examinations.--Funds deposited 
     under section 362(c)(2) are authorized to be appropriated 
     only for the costs of examinations under section 362 and for 
     the costs of other oversight activities with respect to the 
     program established under this part.''
       (c) Conforming Amendment.--Section 20(e)(1)(C) of the Small 
     Business Act (15 U.S.C. 631 note) is amended by inserting 
     `part A of' before ``title III''.
       (d) Calculation of Maximum Amount of SBIC Leverage.--
       (1) Maximum leverage.--Section 303(b)(2) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) is 
     amended to read as follows:
       ``(2) Maximum leverage.--
       ``(A) In general.--After March 31, 1993, the maximum amount 
     of outstanding leverage made available to a company licensed 
     under section 301(c) of this Act shall be determined by the 
     amount of such company's private capital--
       ``(i) if the company has private capital of not more than 
     $15,000,000, the total amount of leverage shall not exceed 
     300 percent of private capital;
       ``(ii) if the company has private capital of more than 
     $15,000,000 but not more than $30,000,000, the total amount 
     of leverage shall not exceed $45,000,000 plus 200 percent of 
     the amount of private capital over $15,000,000; and
       ``(iii) if the company has private capital of more than 
     $30,000,000, the total amount of leverage shall not exceed 
     $75,000,000 plus 100 percent of the amount of private capital 
     over $30,000,000 but not to exceed an additional $15,000,000.
       ``(B) Adjustments.--
       ``(i) In general.--The dollar amounts in clauses (i), (ii), 
     and (iii) of subparagraph (A) shall be adjusted annually to 
     reflect increases in the Consumer Price Index established by 
     the Bureau of Labor Statistics of the Department of Labor.
       ``(ii) Initial adjustments.--The initial adjustments made 
     under this subparagraph after the date of the enactment of 
     the Small Business Reauthorization Act of 1937 shall reflect 
     only increases from March 31, 1993.
       ``(C) Investments in low-income geographic areas.--In 
     calculating the outstanding leverage of a company for the 
     purposes of subparagraph (A), the Administrator shall not 
     include the amount of the cost basis of any equity investment 
     made by the company in a smaller enterprise located in a low-
     income geographic area (as defined in section 351), to the 
     extent that the total of such amounts does not exceed 50 
     percent of the company's private capital.''.
        (2) Maximum aggregate leverage.--Section 303(b)(4) of the 
     Small Business Investment Act of 1958 (15 U.S.C. 683(b)(4)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(D) Investments in low-income geographic areas.--In 
     calculating the aggregate outstanding leverage of a company 
     for the purposes of subparagraph (A), the Administrator shall 
     not include the amount of the cost basis of any equity 
     investment made by the company in a smaller enterprise 
     located in a low-income geographic area (as defined in 
     section 351), to the extent that the total of such amounts 
     does not exceed 50 percent of the company's private 
     capital.''
       (e) Bankruptcy Exemption for New Markets Venture Capital 
     Companies.--Section 109(b)(2) of title 11, United States 
     Code, is amended by inserting ``a New Markets Venture Capital 
     company as defined in section 351 of the Small Business 
     Investment Act of 1958,'' after ``homestead association,''.
       (f) Federal Savings Associations.--Section 5(c)(4) of the 
     Home Owners' Loan Act (12 U.S.C. 1464(c)(4)) is amended by 
     adding at the end the following:
       ``(F) New markets venture capital companies.--A Federal 
     savings association may invest in stock, obligations, or 
     other securities of any New Markets Venture Capital company 
     as defined in section 351 of the Small Business Investment 
     Act of 1958, except that a Federal savings association may 
     not make any investment under this subparagraph if its 
     aggregate outstanding investment under this subparagraph 
     would exceed 5 percent of the capital and surplus of such 
     savings association.''.

     SEC. 102. BUSINESSLINC GRANTS AND COOPERATIVE AGREEMENTS.

       Section 8 of the Small Business Act (15 U.S.C. 637) is 
     amended by adding at the end the following:
       ``(n) Business Grants and Cooperative Agreements.--
       ``(1) In general.--In accordance with this subsection, the 
     Administrator may make grants to and enter into cooperative 
     agreements with any coalition of private entities, public 
     entities, or any combination of private and public entities--
       ``(A) to expand business-to-business relationships between 
     large and small businesses; and
       ``(B) to provide businesses, directly or indirectly, with 
     online information and a database of companies that are 
     interested in mentor-protege programs or community-based, 
     statewide, or local business development programs.
       ``(2) Matching requirement.--Subject to subparagraph (B), 
     the Administrator may make a grant to a coalition under 
     paragraph (1) only if the coalition provides for activities 
     described in paragraph (1)(A) or (1)(B) an amount, either in 
     kind or in cash, equal to the grant amount.
       ``(3) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $6,600,000, 
     to remain available until expended, for each of fiscal years 
     2001 through 2006.''.

               SMALL BUSINESS REAUTHORIZATION ACT OF 2000

       The conference agreement would enact the provisions of H.R. 
     5667, as introduced on December 15, 2000. The text of that 
     bill follows:
       To provide for reauthorization of small business loan and 
     other programs, and for other purposes.
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Small 
     Business Reauthorization Act of 2000''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

          TITLE I--SMALL BUSINESS INNOVATION RESEARCH PROGRAM

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Extension of SBIR program.
Sec. 104. Annual report.
Sec. 105. Third phase assistance.
Sec. 106. Report on programs for annual performance plan.
Sec. 107. Output and outcome data.
Sec. 108. National Research Council reports.
Sec. 109. Federal agency expenditures for the SBIR program.
Sec. 110. Policy directive modifications.
Sec. 111. Federal and State technology partnership program.
Sec. 112. Mentoring networks.
Sec. 113. Simplified reporting requirements.
Sec. 114. Rural outreach program extension.

                    TITLE II--BUSINESS LOAN PROGRAMS

Sec. 201. Short title.
Sec. 202. Levels of participation.
Sec. 203. Loan amounts.
Sec. 204. Interest on defaulted loans.
Sec. 205. Prepayment of loans.
Sec. 206. Guarantee fees.
Sec. 207. Lease terms.
Sec. 208. Appraisals for loans secured by real property.
Sec. 209. Sale of guaranteed loans made for export purposes.
Sec. 210. Microloan program.

            TITLE III--CERTIFIED DEVELOPMENT COMPANY PROGRAM

Sec. 301. Short title.
Sec. 302. Women-owned businesses.
Sec. 303. Maximum debenture size.
Sec. 304. Fees.
Sec. 305. Premier certified lenders program.
Sec. 306. Sale of certain defaulted loans.
Sec. 307. Loan liquidation.

   TITLE IV--CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF 1958

Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Investment in small business investment companies.
Sec. 404. Subsidy fees.
Sec. 405. Distributions.
Sec. 406. Conforming amendment.

          TITLE V--REAUTHORIZATION OF SMALL BUSINESS PROGRAMS

Sec. 501. Short title.
Sec. 502. Reauthorization of small business programs.
Sec. 503. Additional reauthorizations.
Sec. 504. Cosponsorship.

                       TITLE VI--HUBZONE PROGRAM

                 Subtitle A--HUBZones in Native America

Sec. 601. Short title.
Sec. 602. HUBZone small business concern.
Sec. 603. Qualified HUBZone small business concern.
Sec. 604. Other definitions.

                  Subtitle B--Other HUBZone Provisions

Sec. 611. Definitions.
Sec. 612. Eligible contracts.
Sec. 613. HUBZone redesignated areas.
Sec. 614. Community development.
Sec. 615. Reference corrections.

      TITLE VII--NATIONAL WOMEN'S BUSINESS COUNCIL REAUTHORIZATION

Sec. 701. Short title.
Sec. 702. Membership of the Council.
Sec. 703. Repeal of procurement project.
Sec. 704. Studies and other research.
Sec. 705. Authorization of appropriations.

[[Page 27009]]

                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Loan application processing.
Sec. 802. Application of ownership requirements.
Sec. 803. Subcontracting preference for veterans.
Sec. 804. Small Business Development Center Program funding.
Sec. 805. Surety bonds.
Sec. 806. Size standards.
Sec. 807. Native Hawaiian organizations under section 8(a).
Sec. 808. National Veterans Business Development Corporation 
              correction.
Sec. 809. Private sector resources for SCORE.
Sec. 810. Contract data collection.
Sec. 811. Procurement program for women-owned small business concerns.

          TITLE I--SMALL BUSINESS INNOVATION RESEARCH PROGRAM

     SECTION 101. SHORT TITLE.

       (a) Short Title.--This title may be cited as the ``Small 
     Business Innovation Research Program Reauthorization Act of 
     2000''.

     SEC. 102. FINDINGS.

       Congress finds that--
       (1) the small business innovation research program 
     established under the Small Business Innovation Development 
     Act of 1982, and reauthorized by the Small Business Research 
     and Development Enhancement Act of 1992 (in this title 
     referred to as the ``SBIR program'') is highly successful in 
     involving small businesses in federally funded research and 
     development;
       (2) the SBIR program made the cost-effective and unique 
     research and development capabilities possessed by the small 
     businesses of the Nation available to Federal agencies and 
     departments;
       (3) the innovative goods and services developed by small 
     businesses that participated in the SBIR program have 
     produced innovations of critical importance in a wide variety 
     of high-technology fields, including biology, medicine, 
     education, and defense;
       (4) the SBIR program is a catalyst in the promotion of 
     research and development, the commercialization of innovative 
     technology, the development of new products and services, and 
     the continued excellence of this Nation's high-technology 
     industries; and
       (5) the continuation of the SBIR program will provide 
     expanded opportunities for one of the Nation's vital 
     resources, its small businesses, will foster invention, 
     research, and technology, will create jobs, and will increase 
     this Nation's competitiveness in international markets.

     SEC. 103. EXTENSION OF SBIR PROGRAM.

       Section 9(m) of the Small Business Act (15 U.S.C. 638(m)) 
     is amended to read as follows:
       ``(m) Termination.--The authorization to carry out the 
     Small Business Innovation Research Program established under 
     this section shall terminate on September 30, 2008.''.

     SEC. 104. ANNUAL REPORT.

       Section 9(b)(7) of the Small Business Act (15 U.S.C. 
     638(b)(7)) is amended by striking ``and the Committee on 
     Small Business of the House of Representatives'' and 
     inserting ``, and to the Committee on Science and the 
     Committee on Small Business of the House of 
     Representatives,''.

     SEC. 105. THIRD PHASE ASSISTANCE.

       Section 9(e)(4)(C)(i) of the Small Business Act (15 U.S.C. 
     638(e)(4)(C)(i)) is amended by striking ``; and'' and 
     inserting ``; or''.

     SEC. 106. REPORT ON PROGRAMS FOR ANNUAL PERFORMANCE PLAN.

       Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) 
     is amended--
       (1) in paragraph (7), by striking ``and'' at the end;
       (2) in paragraph (8), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(9) include, as part of its annual performance plan as 
     required by subsections (a) and (b) of section 1115 of title 
     31, United States Code, a section on its SBIR program, and 
     shall submit such section to the Committee on Small Business 
     of the Senate, and the Committee on Science and the Committee 
     on Small Business of the House of Representatives; and''.

     SEC. 107. OUTPUT AND OUTCOME DATA.

       (a) Collection.--Section 9(g) of the Small Business Act (15 
     U.S.C. 638(g)), as amended by section 106 of this Act, is 
     further amended by adding at the end the following:
       ``(10) collect, and maintain in a common format in 
     accordance with subsection (v), such information from 
     awardees as is necessary to assess the SBIR program, 
     including information necessary to maintain the database 
     described in subsection (k).''.
       (b) Report to Congress.--Section 9(b)(7) of the Small 
     Business Act (15 U.S.C. 638(b)(7)), as amended by section 104 
     of this Act, is further amended by inserting before the 
     period at the end ``, including the data on output and 
     outcomes collected pursuant to subsections (g)(10) and 
     (o)(9), and a description of the extent to which Federal 
     agencies are providing in a timely manner information needed 
     to maintain the database described in subsection (k)''.
       (c) Database.--Section 9(k) of the Small Business Act (15 
     U.S.C. 638(k)) is amended to read as follows:
       ``(k) Database.--
       ``(1) Public database.--Not later than 180 days after the 
     date of enactment of the Small Business Innovation Research 
     Program Reauthorization Act of 2000, the Administrator shall 
     develop, maintain, and make available to the public a 
     searchable, up-to-date, electronic database that includes--
       ``(A) the name, size, location, and an identifying number 
     assigned by the Administrator, of each small business concern 
     that has received a first phase or second phase SBIR award 
     from a Federal agency;
       ``(B) a description of each first phase or second phase 
     SBIR award received by that small business concern, 
     including--
       ``(i) an abstract of the project funded by the award, 
     excluding any proprietary information so identified by the 
     small business concern;
       ``(ii) the Federal agency making the award; and
       ``(iii) the date and amount of the award;
       ``(C) an identification of any business concern or 
     subsidiary established for the commercial application of a 
     product or service for which an SBIR award is made; and
       ``(D) information regarding mentors and Mentoring Networks, 
     as required by section 35(d).
       ``(2) Government database.--Not later than 180 days after 
     the date of enactment of the Small Business Innovation 
     Research Program Reauthorization Act of 2000, the 
     Administrator, in consultation with Federal agencies required 
     to have an SBIR program pursuant to subsection (f)(1), shall 
     develop and maintain a database to be used solely for SBIR 
     program evaluation that--
       ``(A) contains for each second phase award made by a 
     Federal agency--
       ``(i) information collected in accordance with paragraph 
     (3) on revenue from the sale of new products or services 
     resulting from the research conducted under the award;
       ``(ii) information collected in accordance with paragraph 
     (3) on additional investment from any source, other than 
     first phase or second phase SBIR or STTR awards, to further 
     the research and development conducted under the award; and
       ``(iii) any other information received in connection with 
     the award that the Administrator, in conjunction with the 
     SBIR program managers of Federal agencies, considers relevant 
     and appropriate;
       ``(B) includes any narrative information that a small 
     business concern receiving a second phase award voluntarily 
     submits to further describe the outputs and outcomes of its 
     awards;
       ``(C) includes for each applicant for a first phase or 
     second phase award that does not receive such an award--
       ``(i) the name, size, and location, and an identifying 
     number assigned by the Administration;
       ``(ii) an abstract of the project; and
       ``(iii) the Federal agency to which the application was 
     made;
       ``(D) includes any other data collected by or available to 
     any Federal agency that such agency considers may be useful 
     for SBIR program evaluation; and
       ``(E) is available for use solely for program evaluation 
     purposes by the Federal Government or, in accordance with 
     policy directives issued by the Administration, by other 
     authorized persons who are subject to a use and nondisclosure 
     agreement with the Federal Government covering the use of the 
     database.
       ``(3) Updating information for database.--
       ``(A) In general.--A small business concern applying for a 
     second phase award under this section shall be required to 
     update information in the database established under this 
     subsection for any prior second phase award received by that 
     small business concern. In complying with this paragraph, a 
     small business concern may apportion sales or additional 
     investment information relating to more than one second phase 
     award among those awards, if it notes the apportionment for 
     each award.
       ``(B) Annual updates upon termination.--A small business 
     concern receiving a second phase award under this section 
     shall--
       ``(i) update information in the database concerning that 
     award at the termination of the award period; and
       ``(ii) be requested to voluntarily update such information 
     annually thereafter for a period of 5 years.
       ``(4) Protection of information.--Information provided 
     under paragraph (2) shall be considered privileged and 
     confidential and not subject to disclosure pursuant to 
     section 552 of title 5, United States Code.
       ``(5) Rule of construction.--Inclusion of information in 
     the database under this subsection shall not be considered to 
     be publication for purposes of subsection (a) or (b) of 
     section 102 of title 35, United States Code.''.

     SEC. 108. NATIONAL RESEARCH COUNCIL REPORTS.

       (a) Study and Recommendations.--The head of each agency 
     with a budget of more than $50,000,000 for its SBIR program 
     for fiscal year 1999, in consultation with the Small Business 
     Administration, shall, not later than 6 months after the date 
     of enactment of this Act, cooperatively enter into an 
     agreement with the National Academy of Sciences for the 
     National Research Council to--
       (1) conduct a comprehensive study of how the SBIR program 
     has stimulated technological innovation and used small 
     businesses to meet Federal research and development needs, 
     including--
       (A) a review of the value to the Federal research agencies 
     of the research projects being conducted under the SBIR 
     program, and of the quality of research being conducted by 
     small businesses participating under the program, including a 
     comparison of the value of projects conducted under the SBIR 
     program to those funded by other Federal research and 
     development expenditures;

[[Page 27010]]

       (B) to the extent practicable, an evaluation of the 
     economic benefits achieved by the SBIR program, including the 
     economic rate of return, and a comparison of the economic 
     benefits, including the economic rate of return, achieved by 
     the SBIR program with the economic benefits, including the 
     economic rate of return, of other Federal research and 
     development expenditures;
       (C) an evaluation of the noneconomic benefits achieved by 
     the SBIR program over the life of the program;
       (D) a comparison of the allocation for fiscal year 2000 of 
     Federal research and development funds to small businesses 
     with such allocation for fiscal year 1983, and an analysis of 
     the factors that have contributed to such allocation; and
       (E) an analysis of whether Federal agencies, in fulfilling 
     their procurement needs, are making sufficient effort to use 
     small businesses that have completed a second phase award 
     under the SBIR program; and
       (2) make recommendations with respect to--
       (A) measures of outcomes for strategic plans submitted 
     under section 306 of title 5, United States Code, and 
     performance plans submitted under section 1115 of title 31, 
     United States Code, of each Federal agency participating in 
     the SBIR program;
       (B) whether companies who can demonstrate project 
     feasibility, but who have not received a first phase award, 
     should be eligible for second phase awards, and the potential 
     impact of such awards on the competitive selection process of 
     the program;
       (C) whether the Federal Government should be permitted to 
     recoup some or all of its expenses if a controlling interest 
     in a company receiving an SBIR award is sold to a foreign 
     company or to a company that is not a small business concern;
       (D) how to increase the use by the Federal Government in 
     its programs and procurements of technology-oriented small 
     businesses; and
       (E) improvements to the SBIR program, if any are considered 
     appropriate.
       (b) Participation by Small Business.--
       (1) In general.--In a manner consistent with law and with 
     National Research Council study guidelines and procedures, 
     knowledgeable individuals from the small business community 
     with experience in the SBIR program shall be included--
       (A) in any panel established by the National Research 
     Council for the purpose of performing the study conducted 
     under this section; and
       (B) among those who are asked by the National Research 
     Council to peer review the study.
       (2) Consultation.--To ensure that the concerns of small 
     business are appropriately considered under this subsection, 
     the National Research Council shall consult with and consider 
     the views of the Office of Technology and the Office of 
     Advocacy of the Small Business Administration and other 
     interested parties, including entities, organizations, and 
     individuals actively engaged in enhancing or developing the 
     technological capabilities of small business concerns.
       (c) Progress Reports.--The National Research Council shall 
     provide semiannual progress reports on the study conducted 
     under this section to the Committee on Science and the 
     Committee on Small Business of the House of Representatives, 
     and to the Committee on Small Business of the Senate.
       (d) Report.--The National Research Council shall transmit 
     to the heads of agencies entering into an agreement under 
     this section and to the Committee on Science and the 
     Committee on Small Business of the House of Representatives, 
     and to the Committee on Small Business of the Senate--
       (1) not later than 3 years after the date of enactment of 
     this Act, a report including the results of the study 
     conducted under subsection (a)(1) and recommendations made 
     under subsection (a)(2); and
       (2) not later than 6 years after that date of enactment, an 
     update of such report.

     SEC. 109. FEDERAL AGENCY EXPENDITURES FOR THE SBIR PROGRAM.

       Section 9(i) of the Small Business Act (15 U.S.C. 638(i)) 
     is amended--
       (1) by striking ``(i) Each Federal'' and inserting the 
     following:
       ``(i) Annual Reporting.--
       ``(1) In general.--Each Federal''; and
       (2) by adding at the end the following:
       ``(2) Calculation of extramural budget.--
       ``(A) Methodology.--Not later than 4 months after the date 
     of enactment of each appropriations Act for a Federal agency 
     required by this section to have an SBIR program, the Federal 
     agency shall submit to the Administrator a report, which 
     shall include a description of the methodology used for 
     calculating the amount of the extramural budget of that 
     Federal agency.
       ``(B) Administrator's analysis.--The Administrator shall 
     include an analysis of the methodology received from each 
     Federal agency referred to in subparagraph (A) in the report 
     required by subsection (b)(7).''.

     SEC. 110. POLICY DIRECTIVE MODIFICATIONS.

       Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) 
     is amended by adding at the end the following:
       ``(3) Additional modifications.--Not later than 120 days 
     after the date of enactment of the Small Business Innovation 
     Research Program Reauthorization Act of 2000, the 
     Administrator shall modify the policy directives issued 
     pursuant to this subsection--
       ``(A) to clarify that the rights provided for under 
     paragraph (2)(A) apply to all Federal funding awards under 
     this section, including the first phase (as described in 
     subsection (e)(4)(A)), the second phase (as described in 
     subsection (e)(4)(B)), and the third phase (as described in 
     subsection (e)(4)(C));
       ``(B) to provide for the requirement of a succinct 
     commercialization plan with each application for a second 
     phase award that is moving toward commercialization;
       ``(C) to require agencies to report to the Administration, 
     not less frequently than annually, all instances in which an 
     agency pursued research, development, or production of a 
     technology developed by a small business concern using an 
     award made under the SBIR program of that agency, and 
     determined that it was not practicable to enter into a 
     follow-on non-SBIR program funding agreement with the small 
     business concern, which report shall include, at a minimum--
       ``(i) the reasons why the follow-on funding agreement with 
     the small business concern was not practicable;
       ``(ii) the identity of the entity with which the agency 
     contracted to perform the research, development, or 
     production; and
       ``(iii) a description of the type of funding agreement 
     under which the research, development, or production was 
     obtained; and
       ``(D) to implement subsection (v), including establishing 
     standardized procedures for the provision of information 
     pursuant to subsection (k)(3).''.

     SEC. 111. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.

       (a) Findings.--Congress finds that--
       (1) programs to foster economic development among small 
     high-technology firms vary widely among the States;
       (2) States that do not aggressively support the development 
     of small high-technology firms, including participation by 
     small business concerns in the SBIR program, are at a 
     competitive disadvantage in establishing a business climate 
     that is conducive to technology development; and
       (3) building stronger national, State, and local support 
     for science and technology research in these disadvantaged 
     States will expand economic opportunities in the United 
     States, create jobs, and increase the competitiveness of the 
     United States in the world market.
       (b) Federal and State Technology Partnership Program.--The 
     Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) by redesignating section 34 as section 36; and
       (2) by inserting after section 33 the following:

     ``SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.

       ``(a) Definitions.--In this section and section 35, the 
     following definitions apply:
       ``(1) Applicant.--The term `applicant' means an entity, 
     organization, or individual that submits a proposal for an 
     award or a cooperative agreement under this section.
       ``(2) Business advice and counseling.--The term `business 
     advice and counseling' means providing advice and assistance 
     on matters described in section 35(c)(2)(B) to small business 
     concerns to guide them through the SBIR and STTR program 
     process, from application to award and successful completion 
     of each phase of the program.
       ``(3) FAST program.--The term `FAST program' means the 
     Federal and State Technology Partnership Program established 
     under this section.
       ``(4) Mentor.--The term `mentor' means an individual 
     described in section 35(c)(2).
       ``(5) Mentoring network.--The term `Mentoring Network' 
     means an association, organization, coalition, or other 
     entity (including an individual) that meets the requirements 
     of section 35(c).
       ``(6) Recipient.--The term `recipient' means a person that 
     receives an award or becomes party to a cooperative agreement 
     under this section.
       ``(7) SBIR program.--The term `SBIR program' has the same 
     meaning as in section 9(e)(4).
       ``(8) State.--The term `State' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Virgin Islands, Guam, and American Samoa.
       ``(9) STTR program.--The term `STTR program' has the same 
     meaning as in section 9(e)(6).
       ``(b) Establishment of Program.--The Administrator shall 
     establish a program to be known as the Federal and State 
     Technology Partnership Program, the purpose of which shall be 
     to strengthen the technological competitiveness of small 
     business concerns in the States.
       ``(c) Grants and Cooperative Agreements.--
       ``(1) Joint review.--In carrying out the FAST program under 
     this section, the Administrator and the SBIR program managers 
     at the National Science Foundation and the Department of 
     Defense shall jointly review proposals submitted by 
     applicants and may make awards or enter into cooperative 
     agreements under this section based on the factors for 
     consideration set forth in paragraph (2), in order to enhance 
     or develop in a State--
       ``(A) technology research and development by small business 
     concerns;
       ``(B) technology transfer from university research to 
     technology-based small business concerns;
       ``(C) technology deployment and diffusion benefiting small 
     business concerns;
       ``(D) the technological capabilities of small business 
     concerns through the establishment or operation of consortia 
     comprised of entities, organizations, or individuals, 
     including--

[[Page 27011]]

       ``(i) State and local development agencies and entities;
       ``(ii) representatives of technology-based small business 
     concerns;
       ``(iii) industries and emerging companies;
       ``(iv) universities; and
       ``(v) small business development centers; and
       ``(E) outreach, financial support, and technical assistance 
     to technology-based small business concerns participating in 
     or interested in participating in an SBIR program, including 
     initiatives--
       ``(i) to make grants or loans to companies to pay a portion 
     or all of the cost of developing SBIR proposals;
       ``(ii) to establish or operate a Mentoring Network within 
     the FAST program to provide business advice and counseling 
     that will assist small business concerns that have been 
     identified by FAST program participants, program managers of 
     participating SBIR agencies, the Administration, or other 
     entities that are knowledgeable about the SBIR and STTR 
     programs as good candidates for the SBIR and STTR programs, 
     and that would benefit from mentoring, in accordance with 
     section 35;
       ``(iii) to create or participate in a training program for 
     individuals providing SBIR outreach and assistance at the 
     State and local levels; and
       ``(iv) to encourage the commercialization of technology 
     developed through SBIR program funding.
       ``(2) Selection considerations.--In making awards or 
     entering into cooperative agreements under this section, the 
     Administrator and the SBIR program managers referred to in 
     paragraph (1)--
       ``(A) may only consider proposals by applicants that intend 
     to use a portion of the Federal assistance provided under 
     this section to provide outreach, financial support, or 
     technical assistance to technology-based small business 
     concerns participating in or interested in participating in 
     the SBIR program; and
       ``(B) shall consider, at a minimum--
       ``(i) whether the applicant has demonstrated that the 
     assistance to be provided would address unmet needs of small 
     business concerns in the community, and whether it is 
     important to use Federal funding for the proposed activities;
       ``(ii) whether the applicant has demonstrated that a need 
     exists to increase the number or success of small high-
     technology businesses in the State, as measured by the number 
     of first phase and second phase SBIR awards that have 
     historically been received by small business concerns in the 
     State;
       ``(iii) whether the projected costs of the proposed 
     activities are reasonable;
       ``(iv) whether the proposal integrates and coordinates the 
     proposed activities with other State and local programs 
     assisting small high-technology firms in the State; and
       ``(v) the manner in which the applicant will measure the 
     results of the activities to be conducted.
       ``(3) Proposal limit.--Not more than 1 proposal may be 
     submitted for inclusion in the FAST program under this 
     section to provide services in any one State in any 1 fiscal 
     year.
       ``(4) Process.--Proposals and applications for assistance 
     under this section shall be in such form and subject to such 
     procedures as the Administrator shall establish.
       ``(d) Cooperation and Coordination.--In carrying out the 
     FAST program under this section, the Administrator shall 
     cooperate and coordinate with--
       ``(1) Federal agencies required by section 9 to have an 
     SBIR program; and
       ``(2) entities, organizations, and individuals actively 
     engaged in enhancing or developing the technological 
     capabilities of small business concerns, including--
       ``(A) State and local development agencies and entities;
       ``(B) State committees established under the Experimental 
     Program to Stimulate Competitive Research of the National 
     Science Foundation (as established under section 113 of the 
     National Science Foundation Authorization Act of 1988 (42 
     U.S.C. 1862g));
       ``(C) State science and technology councils; and
       ``(D) representatives of technology-based small business 
     concerns.
       ``(e) Administrative Requirements.--
       ``(1) Competitive basis.--Awards and cooperative agreements 
     under this section shall be made or entered into, as 
     applicable, on a competitive basis.
       ``(2) Matching requirements.--
       ``(A) In general.--The non-Federal share of the cost of an 
     activity (other than a planning activity) carried out using 
     an award or under a cooperative agreement under this section 
     shall be--
       ``(i) 50 cents for each Federal dollar, in the case of a 
     recipient that will serve small business concerns located in 
     one of the 18 States receiving the fewest SBIR first phase 
     awards (as described in section 9(e)(4)(A));
       ``(ii) except as provided in subparagraph (B), 1 dollar for 
     each Federal dollar, in the case of a recipient that will 
     serve small business concerns located in one of the 16 States 
     receiving the greatest number of such SBIR first phase 
     awards; and
       ``(iii) except as provided in subparagraph (B), 75 cents 
     for each Federal dollar, in the case of a recipient that will 
     serve small business concerns located in a State that is not 
     described in clause (i) or (ii) that is receiving such SBIR 
     first phase awards.
       ``(B) Low-income areas.--The non-Federal share of the cost 
     of the activity carried out using an award or under a 
     cooperative agreement under this section shall be 50 cents 
     for each Federal dollar that will be directly allocated by a 
     recipient described in subparagraph (A) to serve small 
     business concerns located in a qualified census tract, as 
     that term is defined in section 42(d)(5)(C)(ii) of the 
     Internal Revenue Code of 1986. Federal dollars not so 
     allocated by that recipient shall be subject to the matching 
     requirements of subparagraph (A).
       ``(C) Types of funding.--The non-Federal share of the cost 
     of an activity carried out by a recipient shall be comprised 
     of not less than 50 percent cash and not more than 50 percent 
     of indirect costs and in-kind contributions, except that no 
     such costs or contributions may be derived from funds from 
     any other Federal program.
       ``(D) Rankings.--For purposes of subparagraph (A), the 
     Administrator shall reevaluate the ranking of a State once 
     every 2 fiscal years, beginning with fiscal year 2001, based 
     on the most recent statistics compiled by the Administrator.
       ``(3) Duration.--Awards may be made or cooperative 
     agreements entered into under this section for multiple 
     years, not to exceed 5 years in total.
       ``(f) Reports.--
       ``(1) Initial report.--Not later than 120 days after the 
     date of enactment of the Small Business Innovation Research 
     Program Reauthorization Act of 2000, the Administrator shall 
     prepare and submit to the Committee on Small Business of the 
     Senate and the Committee on Science and the Committee on 
     Small Business of the House of Representatives a report, 
     which shall include, with respect to the FAST program, 
     including Mentoring Networks--
       ``(A) a description of the structure and procedures of the 
     program;
       ``(B) a management plan for the program; and
       ``(C) a description of the merit-based review process to be 
     used in the program.
       ``(2) Annual reports.--The Administrator shall submit an 
     annual report to the Committee on Small Business of the 
     Senate and the Committee on Science and the Committee on 
     Small Business of the House of Representatives regarding--
       ``(A) the number and amount of awards provided and 
     cooperative agreements entered into under the FAST program 
     during the preceding year;
       ``(B) a list of recipients under this section, including 
     their location and the activities being performed with the 
     awards made or under the cooperative agreements entered into; 
     and
       ``(C) the Mentoring Networks and the mentoring database, as 
     provided for under section 35, including--
       ``(i) the status of the inclusion of mentoring information 
     in the database required by section 9(k); and
       ``(ii) the status of the implementation and description of 
     the usage of the Mentoring Networks.
       ``(g) Reviews by Inspector General.--
       ``(1) In general.--The Inspector General of the 
     Administration shall conduct a review of--
       ``(A) the extent to which recipients under the FAST program 
     are measuring the performance of the activities being 
     conducted and the results of such measurements; and
       ``(B) the overall management and effectiveness of the FAST 
     program.
       ``(2) Report.--During the first quarter of fiscal year 
     2004, the Inspector General of the Administration shall 
     submit a report to the Committee on Small Business of the 
     Senate and the Committee on Science and the Committee on 
     Small Business of the House of Representatives on the review 
     conducted under paragraph (1).
       ``(h) Program Levels.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out the FAST program, including Mentoring Networks, 
     under this section and section 35, $10,000,000 for each of 
     fiscal years 2001 through 2005.
       ``(2) Mentoring database.--Of the total amount made 
     available under paragraph (1) for fiscal years 2001 through 
     2005, a reasonable amount, not to exceed a total of $500,000, 
     may be used by the Administration to carry out section 35(d).
       ``(i) Termination.--The authority to carry out the FAST 
     program under this section shall terminate on September 30, 
     2005.''.
       (c) Coordination of Technology Development Programs.--
     Section 9 of the Small Business Act (15 U.S.C. 638) is 
     amended by adding at the end the following:
       ``(u) Coordination of Technology Development Programs.--
       ``(1) Definition of technology development program.--In 
     this subsection, the term `technology development program' 
     means--
       ``(A) the Experimental Program to Stimulate Competitive 
     Research of the National Science Foundation, as established 
     under section 113 of the National Science Foundation 
     Authorization Act of 1988 (42 U.S.C. 1862g);
       ``(B) the Defense Experimental Program to Stimulate 
     Competitive Research of the Department of Defense;
       ``(C) the Experimental Program to Stimulate Competitive 
     Research of the Department of Energy;
       ``(D) the Experimental Program to Stimulate Competitive 
     Research of the Environmental Protection Agency;

[[Page 27012]]

       ``(E) the Experimental Program to Stimulate Competitive 
     Research of the National Aeronautics and Space 
     Administration;
       ``(F) the Institutional Development Award Program of the 
     National Institutes of Health; and
       ``(G) the National Research Initiative Competitive Grants 
     Program of the Department of Agriculture.
       ``(2) Coordination requirements.--Each Federal agency that 
     is subject to subsection (f) and that has established a 
     technology development program may, in each fiscal year, 
     review for funding under that technology development 
     program--
       ``(A) any proposal to provide outreach and assistance to 1 
     or more small business concerns interested in participating 
     in the SBIR program, including any proposal to make a grant 
     or loan to a company to pay a portion or all of the cost of 
     developing an SBIR proposal, from an entity, organization, or 
     individual located in--
       ``(i) a State that is eligible to participate in that 
     program; or
       ``(ii) a State described in paragraph (3); or
       ``(B) any proposal for the first phase of the SBIR program, 
     if the proposal, though meritorious, is not funded through 
     the SBIR program for that fiscal year due to funding 
     restraints, from a small business concern located in--
       ``(i) a State that is eligible to participate in a 
     technology development program; or
       ``(ii) a State described in paragraph (3).
       ``(3) Additionally eligible state.--A State referred to in 
     subparagraph (A)(ii) or (B)(ii) of paragraph (2) is a State 
     in which the total value of contracts awarded to small 
     business concerns under all SBIR programs is less than the 
     total value of contracts awarded to small business concerns 
     in a majority of other States, as determined by the 
     Administrator in biennial fiscal years, beginning with fiscal 
     year 2000, based on the most recent statistics compiled by 
     the Administrator.''.

     SEC. 112. MENTORING NETWORKS.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended 
     by inserting after section 34, as added by section 111(b)(2) 
     of this Act, the following:

     ``SEC. 35. MENTORING NETWORKS.

       ``(a) Findings.--Congress finds that--
       ``(1) the SBIR and STTR programs create jobs, increase 
     capacity for technological innovation, and boost 
     international competitiveness;
       ``(2) increasing the quantity of applications from all 
     States to the SBIR and STTR programs would enhance 
     competition for such awards and the quality of the completed 
     projects; and
       ``(3) mentoring is a natural complement to the FAST program 
     of reaching out to new companies regarding the SBIR and STTR 
     programs as an effective and low-cost way to improve the 
     likelihood that such companies will succeed in such programs 
     in developing and commercializing their research.
       ``(b) Authorization for Mentoring Networks.--The recipient 
     of an award or participant in a cooperative agreement under 
     section 34 may use a reasonable amount of such assistance for 
     the establishment of a Mentoring Network under this section.
       ``(c) Criteria for Mentoring Networks.--A Mentoring Network 
     established using assistance under section 34 shall--
       ``(1) provide business advice and counseling to high 
     technology small business concerns located in the State or 
     region served by the Mentoring Network and identified under 
     section 34(c)(1)(E)(ii) as potential candidates for the SBIR 
     or STTR programs;
       ``(2) identify volunteer mentors who--
       ``(A) are persons associated with a small business concern 
     that has successfully completed one or more SBIR or STTR 
     funding agreements; and
       ``(B) have agreed to guide small business concerns through 
     all stages of the SBIR or STTR program process, including 
     providing assistance relating to--
       ``(i) proposal writing;
       ``(ii) marketing;
       ``(iii) Government accounting;
       ``(iv) Government audits;
       ``(v) project facilities and equipment;
       ``(vi) human resources;
       ``(vii) third phase partners;
       ``(viii) commercialization;
       ``(ix) venture capital networking; and
       ``(x) other matters relevant to the SBIR and STTR programs;
       ``(3) have experience working with small business concerns 
     participating in the SBIR and STTR programs;
       ``(4) contribute information to the national database 
     referred to in subsection (d); and
       ``(5) agree to reimburse volunteer mentors for out-of-
     pocket expenses related to service as a mentor under this 
     section.
       ``(d) Mentoring Database.--The Administrator shall--
       ``(1) include in the database required by section 9(k)(1), 
     in cooperation with the SBIR, STTR, and FAST programs, 
     information on Mentoring Networks and mentors participating 
     under this section, including a description of their areas of 
     expertise;
       ``(2) work cooperatively with Mentoring Networks to 
     maintain and update the database;
       ``(3) take such action as may be necessary to aggressively 
     promote Mentoring Networks under this section; and
       ``(4) fulfill the requirements of this subsection either 
     directly or by contract.''.

     SEC. 113. SIMPLIFIED REPORTING REQUIREMENTS.

       Section 9 of the Small Business Act (15 U.S.C. 638), as 
     amended by this Act, is further amended by adding at the end 
     the following:
       ``(v) Simplified Reporting Requirements.--The Administrator 
     shall work with the Federal agencies required by this section 
     to have an SBIR program to standardize reporting requirements 
     for the collection of data from SBIR applicants and awardees, 
     including data for inclusion in the database under subsection 
     (k), taking into consideration the unique needs of each 
     agency, and to the extent possible, permitting the updating 
     of previously reported information by electronic means. Such 
     requirements shall be designed to minimize the burden on 
     small businesses.''.

     SEC. 114. RURAL OUTREACH PROGRAM EXTENSION.

       (a) Extension of Termination Date.--Section 501(b)(2) of 
     the Small Business Reauthorization Act of 1997 (15 U.S.C. 638 
     note; 111 Stat. 2622) is amended by striking ``2001'' and 
     inserting ``2005''.
       (b) Extension of Authorization of Appropriations.--Section 
     9(s)(2) of the Small Business Act (15 U.S.C. 638(s)(2)) is 
     amended by striking ``for fiscal year 1998, 1999, 2000, or 
     2001'' and inserting ``for each of the fiscal years 2000 
     through 2005,''.

                    TITLE II--BUSINESS LOAN PROGRAMS

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Small Business Loan 
     Improvement Act of 2000''.

     SEC. 202. LEVELS OF PARTICIPATION.

       Section 7(a)(2)(A) of the Small Business Act (15 U.S.C. 
     636(a)(2)(A)) is amended--
       (1) in paragraph (i) by striking ``$100,000'' and inserting 
     ``$150,000''; and
       (2) in paragraph (ii)--
       (A) by striking ``80 percent'' and inserting ``85 
     percent''; and
       (B) by striking ``$100,000'' and inserting ``$150,000''.

     SEC. 203. LOAN AMOUNTS.

       Section 7(a)(3)(A) of the Small Business Act (15 U.S.C. 
     636(a)(3)(A)) is amended by striking ``$750,000,'' and 
     inserting, ``$1,000,000 (or if the gross loan amount would 
     exceed $2,000,000),''.

     SEC. 204. INTEREST ON DEFAULTED LOANS.

       Section 7(a)(4)(B) of the Small Business Act (15 U.S.C. 
     636(a)(4)(B)) is amended by adding at the end the following:
       ``(iii) Applicability.--Clauses (i) and (ii) shall not 
     apply to loans made on or after October 1, 2000.''.

     SEC. 205. PREPAYMENT OF LOANS.

       Section 7(a)(4) of the Small Business Act (15 U.S.C. 
     636(a)(4)) is further amended--
       (1) by striking ``(4) Interest rates and fees.--'' and 
     inserting ``(4) Interest rates and prepayment charges.--''; 
     and
       (2) by adding at the end the following:
       ``(C) Prepayment charges.--
       ``(i) In general.--A borrower who prepays any loan 
     guaranteed under this subsection shall remit to the 
     Administration a subsidy recoupment fee calculated in 
     accordance with clause (ii) if--

       ``(I) the loan is for a term of not less than 15 years;
       ``(II) the prepayment is voluntary;
       ``(III) the amount of prepayment in any calendar year is 
     more than 25 percent of the outstanding balance of the loan; 
     and
       ``(IV) the prepayment is made within the first 3 years 
     after disbursement of the loan proceeds.

       ``(ii) Subsidy recoupment fee.--The subsidy recoupment fee 
     charged under clause (i) shall be--

       ``(I) 5 percent of the amount of prepayment, if the 
     borrower prepays during the first year after disbursement;
       ``(II) 3 percent of the amount of prepayment, if the 
     borrower prepays during the second year after disbursement; 
     and
       ``(III) 1 percent of the amount of prepayment, if the 
     borrower prepays during the third year after disbursement.''.

     SEC. 206. GUARANTEE FEES.

       Section 7(a)(18) of the Small Business Act (15 U.S.C. 
     636(a)(18)) is amended to read as follows:
       ``(18) Guarantee fees.--
       ``(A) In general.--With respect to each loan guaranteed 
     under this subsection (other than a loan that is repayable in 
     1 year or less), the Administration shall collect a guarantee 
     fee, which shall be payable by the participating lender, and 
     may be charged to the borrower, as follows:
       ``(i) A guarantee fee equal to 2 percent of the deferred 
     participation share of a total loan amount that is not more 
     than $150,000.
       ``(ii) A guarantee fee equal to 3 percent of the deferred 
     participation share of a total loan amount that is more than 
     $150,000, but not more than $700,000.
       ``(iii) A guarantee fee equal to 3.5 percent of the 
     deferred participation share of a total loan amount that is 
     more than $700,000.
       ``(B) Retention of certain fees.--Lenders participating in 
     the programs established under this subsection may retain not 
     more than 25 percent of a fee collected under subparagraph 
     (A)(i).''.

     SEC. 207. LEASE TERMS.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) 
     is further amended by adding at the end the following:
       ``(28) Leasing.--In addition to such other lease 
     arrangements as may be authorized by the Administration, a 
     borrower may permanently lease to one or more tenants not 
     more than 20 percent of any property constructed with the 
     proceeds of a loan guaranteed under this subsection, if the 
     borrower permanently occupies

[[Page 27013]]

     and uses not less than 60 percent of the total business space 
     in the property.''.

     SEC. 208. APPRAISALS FOR LOANS SECURED BY REAL PROPERTY.

       (a) Small Business Act.--Section 7(a) of the Small Business 
     Act (15 U.S.C. 636(a)) is amended by adding at the end the 
     following:
       ``(29) Real estate appraisals.--With respect to a loan 
     under this subsection that is secured by commercial real 
     property, an appraisal of such property by a State licensed 
     or certified appraiser--
       ``(A) shall be required by the Administration in connection 
     with any such loan for more than $250,000; or
       ``(B) may be required by the Administration or the lender 
     in connection with any such loan for $250,000 or less, if 
     such appraisal is necessary for appropriate evaluation of 
     creditworthiness.''.
       (b) Small Business Investment Act of 1958.--Section 
     502(3)(E) of the Small Business Investment Act of 1958 (15 
     U.S.C. 696(3)(E)) is amended--
       (1) by striking ``The collateral'' and inserting the 
     following:
       ``(i) In general.--The collateral''; and
       (2) by adding at the end the following:
       ``(ii) Appraisals.--With respect to commercial real 
     property provided by the small business concern as 
     collateral, an appraisal of the property by a State licensed 
     or certified appraiser--

       ``(I) shall be required by the Administration before 
     disbursement of the loan if the estimated value of that 
     property is more than $250,000; or
       ``(II) may be required by the Administration or the lender 
     before disbursement of the loan if the estimated value of 
     that property is $250,000 or less, and such appraisal is 
     necessary for appropriate evaluation of creditworthiness.''.

     SEC. 209. SALE OF GUARANTEED LOANS MADE FOR EXPORT PURPOSES.

       Section 5(f)(1)(C) of the Small Business Act (15 U.S.C. 
     634(f)(1)(C)) is amended to read as follows:
       ``(C) each loan, except each loan made under section 
     7(a)(14), shall have been fully disbursed to the borrower 
     prior to any sale.''.

     SEC. 210. MICROLOAN PROGRAM.

       (a) In General.--Section 7(m) of the Small Business Act (15 
     U.S.C. 636(m)) is amended--
       (1) in paragraphs (1)(B)(iii) and (3)(E), by striking 
     ``$25,000'' each place it appears and inserting ``$35,000'';
       (2) in paragraphs (1)(A)(iii)(I), (3)(A)(ii), and 
     (4)(C)(i)(II), by striking ``$7,500'' each place it appears 
     and inserting ``$10,000'';
       (3) in paragraph (3)(E), by striking ``$15,000'' and 
     inserting ``$20,000'';
       (4) in paragraph (5)(A)--
       (A) by striking ``25 grants'' and inserting ``55 grants''; 
     and
       (B) by striking ``$125,000'' and inserting ``$200,000'';
       (5) in paragraph (6)(B), by striking ``$10,000'' and 
     inserting ``$15,000''; and
       (6) in paragraph (7), by striking subparagraph (A) and 
     inserting the following:
       ``(A) Number of participants.--Under the program authorized 
     by this subsection, the Administration may fund, on a 
     competitive basis, not more than 300 intermediaries.''.
       (b) Conforming Amendments.--Section 7(m)(11)(B) of the 
     Small Business Act (15 U.S.C. 636(m)(11)(B)) is amended by 
     striking ``$25,000'' and inserting ``$35,000''.

            TITLE III--CERTIFIED DEVELOPMENT COMPANY PROGRAM

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Certified Development 
     Company Program Improvements Act of 2000''.

     SEC. 302. WOMEN-OWNED BUSINESSES.

       Section 501(d)(3)(C) of the Small Business Investment Act 
     of 1958 (15 U.S.C. 695(d)(3)(C)) is amended by inserting 
     before the comma ``or women-owned business development''.

     SEC. 303. MAXIMUM DEBENTURE SIZE.

       Section 502(2) of the Small Business Investment Act of 1958 
     (15 U.S.C. 696(2)) is amended to read as follows:
       ``(2) Loans made by the Administration under this section 
     shall be limited to $1,000,000 for each such identifiable 
     small business concern, except loans meeting the criteria 
     specified in section 501(d)(3), which shall be limited to 
     $1,300,000 for each such identifiable small business 
     concern.''.

     SEC. 304. FEES.

       Section 503(f) of the Small Business Investment Act of 1958 
     (15 U.S.C. 697(f)) is amended to read as follows:
       ``(f) Effective Date.--The fees authorized by subsections 
     (b) and (d) shall apply to financings approved by the 
     Administration on or after October 1, 1996, but shall not 
     apply to financings approved by the Administration on or 
     after October 1, 2003.''.

     SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM.

       Section 217(b) of the Small Business Administration 
     Reauthorization and Amendments Act of 1994 (Public Law 103-
     403, 15 U.S.C. 697 note) (relating to section 508 of the 
     Small Business Investment Act of 1958) is repealed.

     SEC. 306. SALE OF CERTAIN DEFAULTED LOANS.

       Section 508 of the Small Business Investment Act of 1958 
     (15 U.S.C. 697e) is amended--
       (1) in subsection (a), by striking ``On a pilot program 
     basis, the'' and inserting ``The'';
       (2) by redesignating subsections (d) through (i) as 
     subsections (e) through (j), respectively;
       (3) in subsection (f) (as redesignated by paragraph (2)), 
     by striking ``subsection (f)'' and inserting ``subsection 
     (g)'';
       (4) in subsection (h) (as redesignated by paragraph (2)), 
     by striking ``subsection (f)'' and inserting ``subsection 
     (g)''; and
       (5) by inserting after subsection (c) the following:
       ``(d) Sale of Certain Defaulted Loans.--
       ``(1) Notice.--If, upon default in repayment, the 
     Administration acquires a loan guaranteed under this section 
     and identifies such loan for inclusion in a bulk asset sale 
     of defaulted or repurchased loans or other financings, it 
     shall give prior notice thereof to any certified development 
     company which has a contingent liability under this section. 
     The notice shall be given to the company as soon as possible 
     after the financing is identified, but not less than 90 days 
     before the date the Administration first makes any records on 
     such financing available for examination by prospective 
     purchasers prior to its offering in a package of loans for 
     bulk sale.
       ``(2) Limitations.--The Administration shall not offer any 
     loan described in paragraph (1) as part of a bulk sale unless 
     it--
       ``(A) provides prospective purchasers with the opportunity 
     to examine the Administration's records with respect to such 
     loan; and
       ``(B) provides the notice required by paragraph (1).''.

     SEC. 307. LOAN LIQUIDATION.

       (a) Liquidation and Foreclosure.--Title V of the Small 
     Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 510. FORECLOSURE AND LIQUIDATION OF LOANS.

       ``(a) Delegation of Authority.--In accordance with this 
     section, the Administration shall delegate to any qualified 
     State or local development company (as defined in section 
     503(e)) that meets the eligibility requirements of subsection 
     (b)(1) the authority to foreclose and liquidate, or to 
     otherwise treat in accordance with this section, defaulted 
     loans in its portfolio that are funded with the proceeds of 
     debentures guaranteed by the Administration under section 
     503.
       ``(b) Eligibility for Delegation.--
       ``(1) Requirements.--A qualified State or local development 
     company shall be eligible for a delegation of authority under 
     subsection (a) if--
       ``(A) the company--
       ``(i) has participated in the loan liquidation pilot 
     program established by the Small Business Programs 
     Improvement Act of 1996 (15 U.S.C. 695 note), as in effect on 
     the day before promulgation of final regulations by the 
     Administration implementing this section;
       ``(ii) is participating in the Premier Certified Lenders 
     Program under section 508; or
       ``(iii) during the 3 fiscal years immediately prior to 
     seeking such a delegation, has made an average of not less 
     than 10 loans per year that are funded with the proceeds of 
     debentures guaranteed under section 503; and
       ``(B) the company--
       ``(i) has one or more employees--

       ``(I) with not less than 2 years of substantive, decision-
     making experience in administering the liquidation and 
     workout of problem loans secured in a manner substantially 
     similar to loans funded with the proceeds of debentures 
     guaranteed under section 503; and
       ``(II) who have completed a training program on loan 
     liquidation developed by the Administration in conjunction 
     with qualified State and local development companies that 
     meet the requirements of this paragraph; or

       ``(ii) submits to the Administration documentation 
     demonstrating that the company has contracted with a 
     qualified third-party to perform any liquidation activities 
     and secures the approval of the contract by the 
     Administration with respect to the qualifications of the 
     contractor and the terms and conditions of liquidation 
     activities.
       ``(2) Confirmation.--On request the Administration shall 
     examine the qualifications of any company described in 
     subsection (a) to determine if such company is eligible for 
     the delegation of authority under this section. If the 
     Administration determines that a company is not eligible, the 
     Administration shall provide the company with the reasons for 
     such ineligibility.
       ``(c) Scope of Delegated Authority.--
       ``(1) In general.--Each qualified State or local 
     development company to which the Administration delegates 
     authority under section (a) may with respect to any loan 
     described in subsection (a)--
       ``(A) perform all liquidation and foreclosure functions, 
     including the purchase in accordance with this subsection of 
     any other indebtedness secured by the property securing the 
     loan, in a reasonable and sound manner according to 
     commercially accepted practices, pursuant to a liquidation 
     plan approved in advance by the Administration under 
     paragraph (2)(A);
       ``(B) litigate any matter relating to the performance of 
     the functions described in subparagraph (A), except that the 
     Administration may--
       ``(i) defend or bring any claim if--

       ``(I) the outcome of the litigation may adversely affect 
     the Administration's management of the loan program 
     established under section 502; or
       ``(II) the Administration is entitled to legal remedies not 
     available to a qualified State or local development company 
     and such remedies will benefit either the Administration or 
     the qualified State or local development company; or

       ``(ii) oversee the conduct of any such litigation; and
       ``(C) take other appropriate actions to mitigate loan 
     losses in lieu of total liquidation or foreclosures, 
     including the restructuring of a loan in accordance with 
     prudent loan servicing practices and pursuant to a workout 
     plan approved in advance by the Administration under 
     paragraph (2)(C).

[[Page 27014]]

       ``(2) Administration approval.--
       ``(A) Liquidation plan.--
       ``(i) In general.--Before carrying out functions described 
     in paragraph (1)(A), a qualified State or local development 
     company shall submit to the Administration a proposed 
     liquidation plan.
       ``(ii) Administration action on plan.--

       ``(I) Timing.--Not later than 15 business days after a 
     liquidation plan is received by the Administration under 
     clause (i), the Administration shall approve or reject the 
     plan.
       ``(II) Notice of no decision.--With respect to any plan 
     that cannot be approved or denied within the 15-day period 
     required by subclause (I), the Administration shall within 
     such period provide in accordance with subparagraph (E) 
     notice to the company that submitted the plan.

       ``(iii) Routine actions.--In carrying out functions 
     described in paragraph (1)(A), a qualified State or local 
     development company may undertake routine actions not 
     addressed in a liquidation plan without obtaining additional 
     approval from the Administration.
       ``(B) Purchase of indebtedness.--
       ``(i) In general.--In carrying out functions described in 
     paragraph (1)(A), a qualified State or local development 
     company shall submit to the Administration a request for 
     written approval before committing the Administration to the 
     purchase of any other indebtedness secured by the property 
     securing a defaulted loan.
       ``(ii) Administration action on request.--

       ``(I) Timing.--Not later than 15 business days after 
     receiving a request under clause (i), the Administration 
     shall approve or deny the request.
       ``(II) Notice of no decision.--With respect to any request 
     that cannot be approved or denied within the 15-day period 
     required by subclause (I), the Administration shall within 
     such period provide in accordance with subparagraph (E) 
     notice to the company that submitted the request.

       ``(C) Workout plan.--
       ``(i) In general.--In carrying out functions described in 
     paragraph (1)(C), a qualified State or local development 
     company shall submit to the Administration a proposed workout 
     plan.
       ``(ii) Administration action on plan.--

       ``(I) Timing.--Not later than 15 business days after a 
     workout plan is received by the Administration under clause 
     (i), the Administration shall approve or reject the plan.
       ``(II) Notice of no decision.--With respect to any workout 
     plan that cannot be approved or denied within the 15-day 
     period required by subclause (I), the Administration shall 
     within such period provide in accordance with subparagraph 
     (E) notice to the company that submitted the plan.

       ``(D) Compromise of indebtedness.--In carrying out 
     functions described in paragraph (1)(A), a qualified State or 
     local development company may--
       ``(i) consider an offer made by an obligor to compromise 
     the debt for less than the full amount owing; and
       ``(ii) pursuant to such an offer, release any obligor or 
     other party contingently liable, if the company secures the 
     written approval of the Administration.
       ``(E) Contents of notice of no decision.--Any notice 
     provided by the Administration under subparagraph 
     (A)(ii)(II), (B)(ii)(II), or (C)(ii)(II)--
       ``(i) shall be in writing;
       ``(ii) shall state the specific reason for the 
     Administration's inability to act on a plan or request;
       ``(iii) shall include an estimate of the additional time 
     required by the Administration to act on the plan or request; 
     and
       ``(iv) if the Administration cannot act because 
     insufficient information or documentation was provided by the 
     company submitting the plan or request, shall specify the 
     nature of such additional information or documentation.
       ``(3) Conflict of interest.--In carrying out functions 
     described in paragraph (1), a qualified State or local 
     development company shall take no action that would result in 
     an actual or apparent conflict of interest between the 
     company (or any employee of the company) and any third party 
     lender, associate of a third party lender, or any other 
     person participating in a liquidation, foreclosure, or loss 
     mitigation action.
       ``(d) Suspension or Revocation of Authority.--The 
     Administration may revoke or suspend a delegation of 
     authority under this section to any qualified State or local 
     development company, if the Administration determines that 
     the company--
       ``(1) does not meet the requirements of subsection (b)(1);
       ``(2) has violated any applicable rule or regulation of the 
     Administration or any other applicable law; or
       ``(3) fails to comply with any reporting requirement that 
     may be established by the Administration relating to carrying 
     out of functions described in paragraph (1).
       ``(e) Report.--
       ``(1) In general.--Based on information provided by 
     qualified State and local development companies and the 
     Administration, the Administration shall annually submit to 
     the Committees on Small Business of the House of 
     Representatives and of the Senate a report on the results of 
     delegation of authority under this section.
       ``(2) Contents.--Each report submitted under paragraph (1) 
     shall include the following information:
       ``(A) With respect to each loan foreclosed or liquidated by 
     a qualified State or local development company under this 
     section, or for which losses were otherwise mitigated by the 
     company pursuant to a workout plan under this section--
       ``(i) the total cost of the project financed with the loan;
       ``(ii) the total original dollar amount guaranteed by the 
     Administration;
       ``(iii) the total dollar amount of the loan at the time of 
     liquidation, foreclosure, or mitigation of loss;
       ``(iv) the total dollar losses resulting from the 
     liquidation, foreclosure, or mitigation of loss; and
       ``(v) the total recoveries resulting from the liquidation, 
     foreclosure, or mitigation of loss, both as a percentage of 
     the amount guaranteed and the total cost of the project 
     financed.
       ``(B) With respect to each qualified State or local 
     development company to which authority is delegated under 
     this section, the totals of each of the amounts described in 
     clauses (i) through (v) of subparagraph (A).
       ``(C) With respect to all loans subject to foreclosure, 
     liquidation, or mitigation under this section, the totals of 
     each of the amounts described in clauses (i) through (v) of 
     subparagraph (A).
       ``(D) A comparison between--
       ``(i) the information provided under subparagraph (C) with 
     respect to the 12-month period preceding the date on which 
     the report is submitted; and
       ``(ii) the same information with respect to loans 
     foreclosed and liquidated, or otherwise treated, by the 
     Administration during the same period.
       ``(E) The number of times that the Administration has 
     failed to approve or reject a liquidation plan in accordance 
     with subparagraph (A)(i), a workout plan in accordance with 
     subparagraph (C)(i), or to approve or deny a request for 
     purchase of indebtedness under subparagraph (B)(i), including 
     specific information regarding the reasons for the 
     Administration's failure and any delays that resulted.''.
       (b) Regulations.--
       (1) In general.--Not later than 150 days after the date of 
     enactment of this Act, the Administrator shall issue such 
     regulations as may be necessary to carry out section 510 of 
     the Small Business Investment Act of 1958, as added by 
     subsection (a) of this section.
       (2) Termination of pilot program.--Beginning on the date on 
     which final regulations are issued under paragraph (1), 
     section 204 of the Small Business Programs Improvement Act of 
     1996 (15 U.S.C. 695 note) shall cease to have effect.

   TITLE IV--CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF 1958

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Small Business Investment 
     Corrections Act of 2000''.

     SEC. 402. DEFINITIONS.

       (a) Small Business Concern.--Section 103(5)(A)(i) of the 
     Small Business Investment Act of 1958 (15 U.S.C. 
     662(5)(A)(i)) is amended by inserting before the semicolon at 
     the end the following: ``regardless of the allocation of 
     control during the investment period under any investment 
     agreement between the business concern and the entity making 
     the investment''.
       (b) Long Term.--Section 103 of the Small Business 
     Investment Act of 1958 (15 U.S.C. 662) is amended--
       (1) in paragraph (15), by striking ``and'' at the end;
       (2) in paragraph (16), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(17) the term `long term', when used in connection with 
     equity capital or loan funds invested in any small business 
     concern or smaller enterprise, means any period of time not 
     less than 1 year.''.

     SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT COMPANIES.

       Section 302(b) of the Small Business Investment Act of 1958 
     (15 U.S.C. 682(b)) is amended--
       (1) by striking ``(b) Notwithstanding'' and inserting the 
     following:
       ``(b) Financial Institution Investments.--
       ``(1) Certain banks.--Notwithstanding''; and
       (2) by adding at the end the following:
       ``(2) Certain savings associations.--Notwithstanding any 
     other provision of law, any Federal savings association may 
     invest in any 1 or more small business investment companies, 
     or in any entity established to invest solely in small 
     business investment companies, except that in no event may 
     the total amount of such investments by any such Federal 
     savings association exceed 5 percent of the capital and 
     surplus of the Federal savings association.''.

     SEC. 404. SUBSIDY FEES.

       (a) Debentures.--Section 303(b) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 683(b)) is amended by 
     striking ``plus an additional charge of 1 percent per annum 
     which shall be paid to and retained by the Administration'' 
     and inserting ``plus, for debentures obligated after 
     September 30, 2000, an additional charge, in an amount 
     established annually by the Administration, of not more than 
     1 percent per year as necessary to reduce to zero the cost 
     (as defined in section 502 of the Federal Credit Reform Act 
     of 1990 (2 U.S.C. 661a)) to the Administration of purchasing 
     and guaranteeing debentures under this Act, which shall be 
     paid to and retained by the Administration''.
       (b) Participating Securities.--Section 303(g)(2) of the 
     Small Business Investment Act of 1958 (15 U.S.C. 683(g)(2)) 
     is amended by striking ``plus an additional charge of 1 
     percent per annum which shall be paid to and retained by the 
     Administration'' and inserting ``plus, for participating 
     securities obligated after September 30, 2000, an additional 
     charge, in an

[[Page 27015]]

     amount established annually by the Administration, of not 
     more than 1 percent per year as necessary to reduce to zero 
     the cost (as defined in section 502 of the Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661a)) to the Administration of 
     purchasing and guaranteeing participating securities under 
     this Act, which shall be paid to and retained by the 
     Administration''.

     SEC. 405. DISTRIBUTIONS.

       Section 303(g)(8) of the Small Business Investment Act of 
     1958 (15 U.S.C. 683(g)(8)) is amended--
       (1) by striking ``subchapter s corporation'' and inserting 
     ``subchapter S corporation'';
       (2) by striking ``the end of any calendar quarter based on 
     a quarterly'' and inserting ``any time during any calendar 
     quarter based on an''; and
       (3) by striking ``quarterly distributions for a calendar 
     year,'' and inserting ``interim distributions for a calendar 
     year,''.

     SEC. 406. CONFORMING AMENDMENT.

       Section 310(c)(4) of the Small Business Investment Act of 
     1958 (15 U.S.C. 687b(c)(4)) is amended by striking ``five 
     years'' and inserting ``1 year''.

          TITLE V--REAUTHORIZATION OF SMALL BUSINESS PROGRAMS

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Small Business Programs 
     Reauthorization Act of 2000''.

     SEC. 502. REAUTHORIZATION OF SMALL BUSINESS PROGRAMS.

       Section 20 of the Small Business Act (15 U.S.C. 631 note) 
     is amended by adding at the end the following:
       ``(g) Fiscal Year 2001.--
       ``(1) Program levels.--The following program levels are 
     authorized for fiscal year 2001:
       ``(A) For the programs authorized by this Act, the 
     Administration is authorized to make--
       ``(i) $45,000,000 in technical assistance grants as 
     provided in section 7(m); and
       ``(ii) $60,000,000 in direct loans, as provided in 7(m).
       ``(B) For the programs authorized by this Act, the 
     Administration is authorized to make $19,050,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(i) $14,500,000,000 in general business loans as provided 
     in section 7(a);
       ``(ii) $4,000,000,000 in financings as provided in section 
     7(a)(13) of this Act and section 504 of the Small Business 
     Investment Act of 1958;
       ``(iii) $500,000,000 in loans as provided in section 
     7(a)(21); and
       ``(iv) $50,000,000 in loans as provided in section 7(m).
       ``(C) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(i) $2,500,000,000 in purchases of participating 
     securities; and
       ``(ii) $1,500,000,000 in guarantees of debentures.
       ``(D) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $4,000,000,000 of which not more than 50 percent may be in 
     bonds approved pursuant to section 411(a)(3) of that Act.
       ``(E) The Administration is authorized to make grants or 
     enter cooperative agreements for a total amount of $5,000,000 
     for the Service Corps of Retired Executives program 
     authorized by section 8(b)(1).
       ``(2) Additional authorizations.--
       ``(A) There are authorized to be appropriated to the 
     Administration for fiscal year 2001 such sums as may be 
     necessary to carry out the provisions of this Act not 
     elsewhere provided for, including administrative expenses and 
     necessary loan capital for disaster loans pursuant to section 
     7(b), and to carry out title IV of the Small Business 
     Investment Act of 1958, including salaries and expenses of 
     the Administration.
       ``(B) Notwithstanding any other provision of this 
     paragraph, for fiscal year 2001--
       ``(i) no funds are authorized to be used as loan capital 
     for the loan program authorized by section 7(a)(21) except by 
     transfer from another Federal department or agency to the 
     Administration, unless the program level authorized for 
     general business loans under paragraph (1)(B)(i) is fully 
     funded; and
       ``(ii) the Administration may not approve loans on its own 
     behalf or on behalf of any other Federal department or 
     agency, by contract or otherwise, under terms and conditions 
     other than those specifically authorized under this Act or 
     the Small Business Investment Act of 1958, except that it may 
     approve loans under section 7(a)(21) of this Act in gross 
     amounts of not more than $1,250,000.
       ``(h) Fiscal Year 2002.--
       ``(1) Program levels.--The following program levels are 
     authorized for fiscal year 2002:
       ``(A) For the programs authorized by this Act, the 
     Administration is authorized to make--
       ``(i) $60,000,000 in technical assistance grants as 
     provided in section 7(m); and
       ``(ii) $80,000,000 in direct loans, as provided in 7(m).
       ``(B) For the programs authorized by this Act, the 
     Administration is authorized to make $20,050,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(i) $15,000,000,000 in general business loans as provided 
     in section 7(a);
       ``(ii) $4,500,000,000 in financings as provided in section 
     7(a)(13) of this Act and section 504 of the Small Business 
     Investment Act of 1958;
       ``(iii) $500,000,000 in loans as provided in section 
     7(a)(21); and
       ``(iv) $50,000,000 in loans as provided in section 7(m).
       ``(C) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(i) $3,500,000,000 in purchases of participating 
     securities; and
       ``(ii) $2,500,000,000 in guarantees of debentures.
       ``(D) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $5,000,000,000 of which not more than 50 percent may be in 
     bonds approved pursuant to section 411(a)(3) of that Act.
       ``(E) The Administration is authorized to make grants or 
     enter cooperative agreements for a total amount of $6,000,000 
     for the Service Corps of Retired Executives program 
     authorized by section 8(b)(1).
       ``(2) Additional authorizations.--
       ``(A) There are authorized to be appropriated to the 
     Administration for fiscal year 2002 such sums as may be 
     necessary to carry out the provisions of this Act not 
     elsewhere provided for, including administrative expenses and 
     necessary loan capital for disaster loans pursuant to section 
     7(b), and to carry out title IV of the Small Business 
     Investment Act of 1958, including salaries and expenses of 
     the Administration.
       ``(B) Notwithstanding any other provision of this 
     paragraph, for fiscal year 2002--
       ``(i) no funds are authorized to be used as loan capital 
     for the loan program authorized by section 7(a)(21) except by 
     transfer from another Federal department or agency to the 
     Administration, unless the program level authorized for 
     general business loans under paragraph (1)(B)(i) is fully 
     funded; and
       ``(ii) the Administration may not approve loans on its own 
     behalf or on behalf of any other Federal department or 
     agency, by contract or otherwise, under terms and conditions 
     other than those specifically authorized under this Act or 
     the Small Business Investment Act of 1958, except that it may 
     approve loans under section 7(a)(21) of this Act in gross 
     amounts of not more than $1,250,000.
       ``(i) Fiscal Year 2003.--
       ``(1) Program levels.--The following program levels are 
     authorized for fiscal year 2003:
       ``(A) For the programs authorized by this Act, the 
     Administration is authorized to make--
       ``(i) $70,000,000 in technical assistance grants as 
     provided in section 7(m); and
       ``(ii) $100,000,000 in direct loans, as provided in 7(m).
       ``(B) For the programs authorized by this Act, the 
     Administration is authorized to make $21,550,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(i) $16,000,000,000 in general business loans as provided 
     in section 7(a);
       ``(ii) $5,000,000,000 in financings as provided in section 
     7(a)(13) of this Act and section 504 of the Small Business 
     Investment Act of 1958;
       ``(iii) $500,000,000 in loans as provided in section 
     7(a)(21); and
       ``(iv) $50,000,000 in loans as provided in section 7(m).
       ``(C) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(i) $4,000,000,000 in purchases of participating 
     securities; and
       ``(ii) $3,000,000,000 in guarantees of debentures.
       ``(D) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $6,000,000,000 of which not more than 50 percent may be in 
     bonds approved pursuant to section 411(a)(3) of that Act.
       ``(E) The Administration is authorized to make grants or 
     enter into cooperative agreements for a total amount of 
     $7,000,000 for the Service Corps of Retired Executives 
     program authorized by section 8(b)(1).
       ``(2) Additional authorizations.--
       ``(A) There are authorized to be appropriated to the 
     Administration for fiscal year 2003 such sums as may be 
     necessary to carry out the provisions of this Act not 
     elsewhere provided for, including administrative expenses and 
     necessary loan capital for disaster loans pursuant to section 
     7(b), and to carry out title IV of the Small Business 
     Investment Act of 1958, including salaries and expenses of 
     the Administration.
       ``(B) Notwithstanding any other provision of this 
     paragraph, for fiscal year 2003--
       ``(i) no funds are authorized to be used as loan capital 
     for the loan program authorized by section 7(a)(21) except by 
     transfer from another Federal department or agency to the 
     Administration, unless the program level authorized for 
     general business loans under paragraph (1)(B)(i) is fully 
     funded; and
       ``(ii) the Administration may not approve loans on its own 
     behalf or on behalf of any other Federal department or 
     agency, by contract or otherwise, under terms and conditions 
     other than those specifically authorized under this Act or 
     the Small Business Investment Act of 1958, except that it may 
     approve loans under section 7(a)(21) of this Act in gross 
     amounts of not more than $1,250,000.''.

     SEC. 503. ADDITIONAL REAUTHORIZATIONS.

       (a) Drug-Free Workplace Program.--Section 27 of the Small 
     Business Act (15 U.S.C. 654) is amended--
       (1) in the section heading, by striking ``DRUG-FREE 
     WORKPLACE DEMONSTRATION PROGRAM'' and inserting ``PAUL D.

[[Page 27016]]

     COVERDELL DRUG-FREE WORKPLACE PROGRAM''; and
       (2) in subsection (g)(1), by striking ``$10,000,000 for 
     fiscal years 1999 and 2000'' and inserting ``$5,000,000 for 
     each of fiscal years 2001 through 2003''.
       (b) HUBZone Program.--Section 31 of the Small Business Act 
     (15 U.S.C. 657a) is amended by adding at the end the 
     following:
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out the program established by 
     this section $10,000,000 for each of fiscal years 2001 
     through 2003.''.
       (c) Very Small Business Concerns Program.--Section 304(i) 
     of the Small Business Administration Reauthorization and 
     Amendments Act of 1994 (Public Law 103-403; 15 U.S.C. 644 
     note) is amended by striking ``September 30, 2000'' and 
     inserting ``September 30, 2003''.
       (d) Socially and Economically Disadvantaged Businesses 
     Program.--Section 7102(c) of the Federal Acquisition 
     Streamlining Act of 1994 (Public Law 103-355; 15 U.S.C. 644 
     note) is amended by striking ``September 30, 2000'' and 
     inserting ``September 30, 2003''.
       (e) SBDC Services.--Section 21(c)(3)(T) of the Small 
     Business Act (15 U.S.C. 648(c)(3)(T)) is amended by striking 
     ``2000'' and inserting ``2003''.

     SEC. 504. COSPONSORSHIP.

       (a) In General.--Section 8(b)(1)(A) of the Small Business 
     Act (15 U.S.C. 637(b)(1)(A)) is amended to read as follows:
       ``(1)(A) to provide--
       ``(i) technical, managerial, and informational aids to 
     small business concerns--
       ``(I) by advising and counseling on matters in connection 
     with Government procurement and policies, principles, and 
     practices of good management;
       ``(II) by cooperating and advising with--

       ``(aa) voluntary business, professional, educational, and 
     other nonprofit organizations, associations, and institutions 
     (except that the Administration shall take such actions as it 
     determines necessary to ensure that such cooperation does not 
     constitute or imply an endorsement by the Administration of 
     the organization or its products or services, and shall 
     ensure that it receives appropriate recognition in all 
     printed materials); and

       ``(bb) other Federal and State agencies;

       ``(III) by maintaining a clearinghouse for information on 
     managing, financing, and operating small business 
     enterprises; and
       ``(IV) by disseminating such information, including through 
     recognition events, and by other activities that the 
     Administration determines to be appropriate; and
       ``(ii) through cooperation with a profit-making concern 
     (referred to in this paragraph as a `cosponsor'), training, 
     information, and education to small business concerns, except 
     that the Administration shall--
       ``(I) take such actions as it determines to be appropriate 
     to ensure that--

       ``(aa) the Administration receives appropriate recognition 
     and publicity;
       ``(bb) the cooperation does not constitute or imply an 
     endorsement by the Administration of any product or service 
     of the cosponsor;
       ``(cc) unnecessary promotion of the products or services of 
     the cosponsor is avoided; and
       ``(dd) utilization of any 1 cosponsor in a marketing area 
     is minimized; and

       ``(II) develop an agreement, executed on behalf of the 
     Administration by an employee of the Administration in 
     Washington, the District of Columbia, that provides, at a 
     minimum, that--

       ``(aa) any printed material to announce the cosponsorship 
     or to be distributed at the cosponsored activity, shall be 
     approved in advance by the Administration;
       ``(bb) the terms and conditions of the cooperation shall be 
     specified;
       ``(cc) only minimal charges may be imposed on any small 
     business concern to cover the direct costs of providing the 
     assistance;
       ``(dd) the Administration may provide to the cosponsorship 
     mailing labels, but not lists of names and addresses of small 
     business concerns compiled by the Administration;
       ``(ee) all printed materials containing the names of both 
     the Administration and the cosponsor shall include a 
     prominent disclaimer that the cooperation does not constitute 
     or imply an endorsement by the Administration of any product 
     or service of the cosponsor; and
       ``(ff) the Administration shall ensure that it receives 
     appropriate recognition in all cosponsorship printed 
     materials.''.

       (b) Extension of Cosponsorship Authority.--Section 
     401(a)(2) of the Small Business Administration 
     Reauthorization and Amendments Act of 1994 (15 U.S.C. 637 
     note) is amended by striking ``September 30, 2000'' and 
     inserting ``September 30, 2003''.

                       TITLE VI--HUBZONE PROGRAM

                 Subtitle A--HUBZones in Native America

     SEC. 601. SHORT TITLE.

       This subtitle may be cited as the ``HUBZones in Native 
     America Act of 2000''.

     SEC. 602. HUBZONE SMALL BUSINESS CONCERN.

       Section 3(p)(3) of the Small Business Act (15 U.S.C. 
     632(p)(3)) is amended to read as follows:
       ``(3) Hubzone small business concern.--The term `HUBZone 
     small business concern' means--
       ``(A) a small business concern that is owned and controlled 
     by 1 or more persons, each of whom is a United States 
     citizen;
       ``(B) a small business concern that is--
       ``(i) an Alaska Native Corporation owned and controlled by 
     Natives (as determined pursuant to section 29(e)(1) of the 
     Alaska Native Claims Settlement Act (43 U.S.C. 1626(e)(1))); 
     or
       ``(ii) a direct or indirect subsidiary corporation, joint 
     venture, or partnership of an Alaska Native Corporation 
     qualifying pursuant to section 29(e)(1) of the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1626(e)(1)), if that 
     subsidiary, joint venture, or partnership is owned and 
     controlled by Natives (as determined pursuant to section 
     29(e)(2)) of the Alaska Native Claims Settlement Act (43 
     U.S.C. 1626(e)(2))); or
       ``(C) a small business concern--
       ``(i) that is wholly owned by 1 or more Indian tribal 
     governments, or by a corporation that is wholly owned by 1 or 
     more Indian tribal governments; or
       ``(ii) that is owned in part by 1 or more Indian tribal 
     governments, or by a corporation that is wholly owned by 1 or 
     more Indian tribal governments, if all other owners are 
     either United States citizens or small business concerns.''.

     SEC. 603. QUALIFIED HUBZONE SMALL BUSINESS CONCERN.

       (a) In General.--Section 3(p)(5)(A)(i) of the Small 
     Business Act (15 U.S.C. 632(p)(5)(A)(i)) is amended by 
     striking subclauses (I) and (II) and inserting the following:

       ``(I) it is a HUBZone small business concern--

       ``(aa) pursuant to subparagraph (A) or (B) of paragraph 
     (3), and that its principal office is located in a HUBZone 
     and not fewer than 35 percent of its employees reside in a 
     HUBZone; or
       ``(bb) pursuant to paragraph (3)(C), and not fewer than 35 
     percent of its employees engaged in performing a contract 
     awarded to the small business concern on the basis of a 
     preference provided under section 31(b) reside within any 
     Indian reservation governed by 1 or more of the tribal 
     government owners, or reside within any HUBZone adjoining any 
     such Indian reservation;

       ``(II) the small business concern will attempt to maintain 
     the applicable employment percentage under subclause (I) 
     during the performance of any contract awarded to the small 
     business concern on the basis of a preference provided under 
     section 31(b); and''.

       (b) Clarifying Amendment.--Section 3(p)(5)(D)(i) of the 
     Small Business Act (15 U.S.C. 632(p)(5)(D)(i)) is amended by 
     inserting ``once the Administrator has made the certification 
     required by subparagraph (A)(i) regarding a qualified HUBZone 
     small business concern and has determined that subparagraph 
     (A)(ii) does not apply to that concern,'' before ``include''.

     SEC. 604. OTHER DEFINITIONS.

       Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) 
     is amended by adding at the end the following:
       ``(6) Native american small business concerns.--
       ``(A) Alaska native corporation.--The term `Alaska Native 
     Corporation' has the same meaning as the term `Native 
     Corporation' in section 3 of the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1602).
       ``(B) Alaska native village.--The term `Alaska Native 
     Village' has the same meaning as the term `Native village' in 
     section 3 of the Alaska Native Claims Settlement Act (43 
     U.S.C. 1602).
       ``(C) Indian reservation.--The term `Indian reservation'--
       ``(i) has the same meaning as the term `Indian country' in 
     section 1151 of title 18, United States Code, except that 
     such term does not include--

       ``(I) any lands that are located within a State in which a 
     tribe did not exercise governmental jurisdiction on the date 
     of enactment of this paragraph, unless that tribe is 
     recognized after that date of enactment by either an Act of 
     Congress or pursuant to regulations of the Secretary of the 
     Interior for the administrative recognition that an Indian 
     group exists as an Indian tribe (part 83 of title 25, Code of 
     Federal Regulations); and
       ``(II) lands taken into trust or acquired by an Indian 
     tribe after the date of enactment of this paragraph if such 
     lands are not located within the external boundaries of an 
     Indian reservation or former reservation or are not 
     contiguous to the lands held in trust or restricted status on 
     that date of enactment; and

       ``(ii) in the State of Oklahoma, means lands that--

       ``(I) are within the jurisdictional areas of an Oklahoma 
     Indian tribe (as determined by the Secretary of the 
     Interior); and
       ``(II) are recognized by the Secretary of the Interior as 
     eligible for trust land status under part 151 of title 25, 
     Code of Federal Regulations (as in effect on the date of 
     enactment of this paragraph).''.

                  Subtitle B--Other HUBZone Provisions

     SEC. 611. DEFINITIONS.

       (a) Qualified Census Tract.--Section 3(p)(4)(A) of the 
     Small Business Act (15 U.S.C. 632(p)(4)(A)) is amended by 
     striking ``(I)''.
       (b) Qualified Nonmetropolitan County.--Section 3(p)(4) of 
     the Small Business Act (15 U.S.C. 632(p)(4)) is amended by 
     striking subparagraph (B) and inserting the following:
       ``(B) Qualified nonmetropolitan county.--The term 
     `qualified nonmetropolitan county' means any county--
       ``(i) that was not located in a metropolitan statistical 
     area (as defined in section 143(k)(2)(B) of the Internal 
     Revenue Code of 1986) at the time of the most recent census 
     taken for purposes of selecting qualified census tracts under 
     section 42(d)(5)(C)(ii) of the Internal Revenue Code of 1986; 
     and
       ``(ii) in which--

       ``(I) the median household income is less than 80 percent 
     of the nonmetropolitan State median household income, based 
     on the most recent

[[Page 27017]]

     data available from the Bureau of the Census of the 
     Department of Commerce; or
       ``(II) the unemployment rate is not less than 140 percent 
     of the Statewide average unemployment rate for the State in 
     which the county is located, based on the most recent data 
     available from the Secretary of Labor.''.

     SEC. 612. ELIGIBLE CONTRACTS.

       (a) Commodities Contracts.--Section 31(b)(3) of the Small 
     Business Act (15 U.S.C. 657a(b)(3)) is amended--
       (1) by striking ``In any'' and inserting the following:
       ``(A) In general.--Subject to subparagraph (B), in any''; 
     and
       (2) by adding at the end the following:
       ``(B) Procurement of commodities.--For purchases by the 
     Secretary of Agriculture of agricultural commodities, the 
     price evaluation preference shall be--
       ``(i) 10 percent, for the portion of a contract to be 
     awarded that is not greater than 25 percent of the total 
     volume being procured for each commodity in a single 
     invitation;
       ``(ii) 5 percent, for the portion of a contract to be 
     awarded that is greater than 25 percent, but not greater than 
     40 percent, of the total volume being procured for each 
     commodity in a single invitation; and
       ``(iii) zero, for the portion of a contract to be awarded 
     that is greater than 40 percent of the total volume being 
     procured for each commodity in a single invitation.
       ``(C) Treatment of preference.--A contract awarded to a 
     HUBZone small business concern under a preference described 
     in subparagraph (B) shall not be counted toward the 
     fulfillment of any requirement partially set aside for 
     competition restricted to small business concerns.''.
       (b) Definitions.--Section 3(p) of the Small Business Act 
     (15 U.S.C. 632(p)), as amended by this Act, is amended--
       (1) in paragraph (5)(A)(i)(III)--
       (A) in item (aa), by striking ``and'' at the end; and
       (B) by adding at the end the following:
       ``(cc) in the case of a contract for the procurement by the 
     Secretary of Agriculture of agricultural commodities, none of 
     the commodity being procured will be obtained by the prime 
     contractor through a subcontract for the purchase of the 
     commodity in substantially the final form in which it is to 
     be supplied to the Government; and''; and
       (2) by adding at the end the following:
       ``(7) Agricultural commodity.--The term `agricultural 
     commodity' has the same meaning as in section 102 of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5602).''.

     SEC. 613. HUBZONE REDESIGNATED AREAS.

       Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) 
     is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B), by striking ``or'' at the end;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(D) redesignated areas.''; and
       (2) in paragraph (4), by adding at the end the following:
       ``(C) Redesignated area.--The term `redesignated area' 
     means any census tract that ceases to be qualified under 
     subparagraph (A) and any nonmetropolitan county that ceases 
     to be qualified under subparagraph (B), except that a census 
     tract or a nonmetropolitan county may be a `redesignated 
     area' only for the 3-year period following the date on which 
     the census tract or nonmetropolitan county ceased to be so 
     qualified.''.

     SEC. 614. COMMUNITY DEVELOPMENT.

       Section 3(p) of the Small Business Act (15 U.S.C. 632(p)), 
     as amended by this Act, is amended--
       (1) in paragraph (3)--
       (A) in subparagraph (B), by striking ``or'' at the end;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(D) a small business concern that is--
       ``(i) wholly owned by a community development corporation 
     that has received financial assistance under Part 1 of 
     Subchapter A of the Community Economic Development Act of 
     1981 (42 U.S.C. 9805 et seq.); or
       ``(ii) owned in part by 1 or more community development 
     corporations, if all other owners are either United States 
     citizens or small business concerns.''; and
       (2) in paragraph (5)(A)(i)(I)(aa), by striking 
     ``subparagraph (A) or (B)'' and inserting ``subparagraph (A), 
     (B), or (D)''.

     SEC. 615. REFERENCE CORRECTIONS.

       (a) Section 3.--Section 3(p)(5)(C) of the Small Business 
     Act (15 U.S.C. 632(p)(5)(C)) is amended by striking 
     ``subclause (IV) and (V) of subparagraph (A)(i)'' and 
     inserting ``items (aa) and (bb) of subparagraph 
     (A)(i)(III)''.
       (b) Section 8.--Section 8(d)(4)(D) of the Small Business 
     Act (15 U.S.C. 637(d)(4)(D)) is amended by inserting 
     ``qualified HUBZone small business concerns,'' after ``small 
     business concerns,''.

      TITLE VII--NATIONAL WOMEN'S BUSINESS COUNCIL REAUTHORIZATION

     SEC. 701. SHORT TITLE.

       This title may be cited as the ``National Women's Business 
     Council Reauthorization Act of 2000''.

     SEC. 702. MEMBERSHIP OF THE COUNCIL.

       Section 407 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is amended--
       (1) in subsection (a), by striking ``Not later'' and all 
     that follows through ``the President'' and inserting ``The 
     President'';
       (2) in subsection (b)--
       (A) by striking ``Not later'' and all that follows through 
     ``the Administrator'' and inserting ``The Administrator''; 
     and
       (B) by striking ``the Assistant Administrator of the Office 
     of Women's Business Ownership and'';
       (3) in subsection (d), by striking ``, except that'' and 
     all that follows through the end of the subsection and 
     inserting a period; and
       (4) in subsection (h), by striking ``Not later'' and all 
     that follows through ``the Administrator'' and inserting 
     ``The Administrator''.

     SEC. 703. REPEAL OF PROCUREMENT PROJECT.

       Section 409 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is repealed.

     SEC. 704. STUDIES AND OTHER RESEARCH.

       Section 410 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is amended to read as follows:

     ``SEC. 409. STUDIES AND OTHER RESEARCH.

       ``(a) In General.--The Council may conduct such studies and 
     other research relating to the award of Federal prime 
     contracts and subcontracts to women-owned businesses, to 
     access to credit and investment capital by women 
     entrepreneurs, or to other issues relating to women-owned 
     businesses, as the Council determines to be appropriate.
       ``(b) Contract Authority.--In conducting any study or other 
     research under this section, the Council may contract with 1 
     or more public or private entities.''.

     SEC. 705. AUTHORIZATION OF APPROPRIATIONS.

       Section 411 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is amended to read as follows:

     ``SEC. 410. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There is authorized to be appropriated 
     to carry out this title $1,000,000, for each of fiscal years 
     2001 through 2003, of which $550,000 shall be available in 
     each such fiscal year to carry out section 409.
       ``(b) Budget Review.--No amount made available under this 
     section for any fiscal year may be obligated or expended by 
     the Council before the date on which the Council reviews and 
     approves the operating budget of the Council to carry out the 
     responsibilities of the Council for that fiscal year.''.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

     SEC. 801. LOAN APPLICATION PROCESSING.

       (a) Study.--The Administrator of the Small Business 
     Administration shall conduct a study to determine the average 
     time that the Administration requires to process an 
     application for each type of loan or loan guarantee made 
     under the Small Business Act (15 U.S.C. 631 et seq.).
       (b) Transmittal.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall transmit to 
     Congress the results of the study conducted under subsection 
     (a).

     SEC. 802. APPLICATION OF OWNERSHIP REQUIREMENTS.

       (a) Small Business Act.--Section 7(a) of the Small Business 
     Act (15 U.S.C. 636(a)) is amended by adding at the end the 
     following:
       ``(30) Ownership requirements.--Ownership requirements to 
     determine the eligibility of a small business concern that 
     applies for assistance under any credit program under this 
     Act shall be determined without regard to any ownership 
     interest of a spouse arising solely from the application of 
     the community property laws of a State for purposes of 
     determining marital interests.''.
       (b) Small Business Investment Act of 1958.--Section 502 of 
     the Small Business Investment Act of 1958 (15 U.S.C. 696) is 
     amended by adding at the end the following:
       ``(6) Ownership requirements.--Ownership requirements to 
     determine the eligibility of a small business concern that 
     applies for assistance under any credit program under this 
     title shall be determined without regard to any ownership 
     interest of a spouse arising solely from the application of 
     the community property laws of a State for purposes of 
     determining marital interests.''.

     SEC. 803. SUBCONTRACTING PREFERENCE FOR VETERANS.

       Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) 
     is amended--
       (1) in paragraph (1), by inserting ``small business 
     concerns owned and controlled by veterans,'' after ``small 
     business concerns,'' the first place that term appears in 
     each of the first and second sentences;
       (2) in paragraph (3)--
       (A) in subparagraph (A), by inserting ``small business 
     concerns owned and controlled by service-disabled veterans,'' 
     after ``small business concerns owned and controlled by 
     veterans,'' in each of the first and second sentences; and
       (B) in subparagraph (F), by inserting ``small business 
     concern owned and controlled by service-disabled veterans,'' 
     after ``small business concern owned and controlled by 
     veterans,''; and
       (3) in each of paragraphs (4)(D), (4)(E), (6)(A), (6)(C), 
     (6)(F), and (10)(B), by inserting ``small business concerns 
     owned and controlled by service-disabled veterans,'' after 
     ``small business concerns owned and controlled by 
     veterans,''.

     SEC. 804. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM FUNDING.

       (a) Authorization.--
       (1) In general.--Section 20(a)(1) of the Small Business Act 
     (15 U.S.C. 631 note) is amended by striking ``For fiscal year 
     1985'' and all that follows through ``expended.'' and 
     inserting the following: ``For fiscal year 2000 and each 
     fiscal

[[Page 27018]]

     year thereafter, there are authorized to be appropriated such 
     sums as may be necessary and appropriate, to remain available 
     until expended, and to be available solely--
       ``(A) to carry out the Small Business Development Center 
     Program under section 21, but not to exceed the annual 
     funding level, as specified in section 21(a);
       ``(B) to pay the expenses of the National Small Business 
     Development Center Advisory Board, as provided in section 
     21(i);
       ``(C) to pay the expenses of the information sharing 
     system, as provided in section 21(c)(8);
       ``(D) to pay the expenses of the association referred to in 
     section 21(a)(3)(A) for conducting the certification program, 
     as provided in section 21(k)(2); and
       ``(E) to pay the expenses of the Administration, including 
     salaries of examiners, for conducting examinations as part of 
     the certification program conducted by the association 
     referred to in section 21(a)(3)(A).''.
       (2) Technical amendment.--Section 20(a) of the Small 
     Business Act (15 U.S.C. 631 note) is amended by moving the 
     margins of paragraphs (3) and (4), including subparagraphs 
     (A) and (B) of paragraph (4), 2 ems to the left.
       (b) Funding Formula.--Section 21(a)(4)(C) of the Small 
     Business Act (15 U.S.C. 648(a)(4)(C)) is amended to read as 
     follows:
       ``(C) Funding formula.--
       ``(i) In general.--Subject to clause (iii), the amount of a 
     formula grant received by a State under this subparagraph 
     shall be equal to an amount determined in accordance with the 
     following formula:
       ``(I) The annual amount made available under section 20(a) 
     for the Small Business Development Center Program, less any 
     reductions made for expenses authorized by clause (v) of this 
     subparagraph, shall be divided on a pro rata basis, based on 
     the percentage of the population of each State, as compared 
     to the population of the United States.
       ``(II) If the pro rata amount calculated under subclause 
     (I) for any State is less than the minimum funding level 
     under clause (iii), the Administration shall determine the 
     aggregate amount necessary to achieve that minimum funding 
     level for each such State.
       ``(III) The aggregate amount calculated under subclause 
     (II) shall be deducted from the amount calculated under 
     subclause (I) for States eligible to receive more than the 
     minimum funding level. The deductions shall be made on a pro 
     rata basis, based on the population of each such State, as 
     compared to the total population of all such States.
       ``(IV) The aggregate amount deducted under subclause (III) 
     shall be added to the grants of those States that are not 
     eligible to receive more than the minimum funding level in 
     order to achieve the minimum funding level for each such 
     State, except that the eligible amount of a grant to any 
     State shall not be reduced to an amount below the minimum 
     funding level.
       ``(ii) Grant determination.--The amount of a grant that a 
     State is eligible to apply for under this subparagraph shall 
     be the amount determined under clause (i), subject to any 
     modifications required under clause (iii), and shall be based 
     on the amount available for the fiscal year in which 
     performance of the grant commences, but not including amounts 
     distributed in accordance with clause (iv). The amount of a 
     grant received by a State under any provision of this 
     subparagraph shall not exceed the amount of matching funds 
     from sources other than the Federal Government, as required 
     under subparagraph (A).
       ``(iii) Minimum funding level.--The amount of the minimum 
     funding level for each State shall be determined for each 
     fiscal year based on the amount made available for that 
     fiscal year to carry out this section, as follows:
       ``(I) If the amount made available is not less than 
     $81,500,000 and not more than $90,000,000, the minimum 
     funding level shall be $500,000.
       ``(II) If the amount made available is less than 
     $81,500,000, the minimum funding level shall be the remainder 
     of $500,000 minus a percentage of $500,000 equal to the 
     percentage amount by which the amount made available is less 
     than $81,500,000.
       ``(III) If the amount made available is more than 
     $90,000,000, the minimum funding level shall be the sum of 
     $500,000 plus a percentage of $500,000 equal to the 
     percentage amount by which the amount made available exceeds 
     $90,000,000.
       ``(iv) Distributions.--Subject to clause (iii), if any 
     State does not apply for, or use, its full funding 
     eligibility for a fiscal year, the Administration shall 
     distribute the remaining funds as follows:
       ``(I) If the grant to any State is less than the amount 
     received by that State in fiscal year 2000, the 
     Administration shall distribute such remaining funds, on a 
     pro rata basis, based on the percentage of shortage of each 
     such State, as compared to the total amount of such remaining 
     funds available, to the extent necessary in order to increase 
     the amount of the grant to the amount received by that State 
     in fiscal year 2000, or until such funds are exhausted, 
     whichever first occurs.
       ``(II) If any funds remain after the application of 
     subclause (I), the remaining amount may be distributed as 
     supplemental grants to any State, as the Administration 
     determines, in its discretion, to be appropriate, after 
     consultation with the association referred to in subsection 
     (a)(3)(A).
       ``(v) Use of amounts.--
       ``(I) In general.--Of the amounts made available in any 
     fiscal year to carry out this section--

       ``(aa) not more than $500,000 may be used by the 
     Administration to pay expenses enumerated in subparagraphs 
     (B) through (D) of section 20(a)(1); and
       ``(bb) not more than $500,000 may be used by the 
     Administration to pay the examination expenses enumerated in 
     section 20(a)(1)(E).

       ``(II) Limitation.--No funds described in subclause (I) may 
     be used for examination expenses under section 20(a)(1)(E) if 
     the usage would reduce the amount of grants made available 
     under clause (i)(I) of this subparagraph to less than 
     $85,000,000 (after excluding any amounts provided in 
     appropriations Acts for specific institutions or for purposes 
     other than the general small business development center 
     program) or would further reduce the amount of such grants 
     below such amount.
       ``(vi) Exclusions.--Grants provided to a State by the 
     Administration or another Federal agency to carry out 
     subsection (a)(6) or (c)(3)(G), or for supplemental grants 
     set forth in clause (iv)(II) of this subparagraph, shall not 
     be included in the calculation of maximum funding for a State 
     under clause (ii) of this subparagraph.
       ``(vii) Authorization of appropriations.--There is 
     authorized to be appropriated to carry out this subparagraph 
     $125,000,000 for each of fiscal years 2001, 2002, and 2003.
       ``(viii) State defined.--In this subparagraph, the term 
     `State' means each of the several States, the District of 
     Columbia, the Commonwealth of Puerto Rico, the Virgin 
     Islands, Guam, and American Samoa.''.

     SEC. 805. SURETY BONDS.

       (a) Contract Amounts.--Section 411 of the Small Business 
     Investment Act of 1958 (15 U.S.C. 694b) is amended--
       (1) in subsection (a)(1), by striking ``$1,250,000'' and 
     inserting ``$2,000,000''; and
       (2) in subsection (e)(2), by striking ``$1,250,000'' and 
     inserting ``$2,000,000''.
       (b) Extension of Certain Authority.--Section 207 of the 
     Small Business Administration Reauthorization and Amendment 
     Act of 1988 (15 U.S.C. 694b note) is amended by striking 
     ``2000'' and inserting ``2003''.

     SEC. 806. SIZE STANDARDS.

       (a) Industry Classifications.--Section 15(a) of the Small 
     Business Act (15 U.S.C. 644(a)) is amended in the eighth 
     sentence, by striking ``four-digit standard'' and all that 
     follows through ``published'' and inserting ``definition of a 
     `United States industry' under the North American Industry 
     Classification System, as established''.
       (b) Annual Receipts.--Section 3(a)(1) of the Small Business 
     Act (15 U.S.C. 632(a)(1)) is amended by striking ``$500,000'' 
     and inserting ``$750,000''.

     SEC. 807. NATIVE HAWAIIAN ORGANIZATIONS UNDER SECTION 8(A).

       Section 8(a)(15)(A) of the Small Business Act (15 U.S.C. 
     637(a)(15)(A)) is amended to read as follows:
       ``(A) is a nonprofit corporation that has filed articles of 
     incorporation with the director (or the designee thereof) of 
     the Hawaii Department of Commerce and Consumer Affairs, or 
     any successor agency,''.

     SEC. 808. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION 
                   CORRECTION.

       Section 33(k) of the Small Business Act (15 U.S.C. 657c(k)) 
     is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) In general.--Subject to paragraph (2), there are 
     authorized to be appropriated to the Corporation to carry out 
     this section--
       ``(A) $4,000,000 for fiscal year 2001;
       ``(B) $4,000,000 for fiscal year 2002;
       ``(C) $2,000,000 for fiscal year 2003; and
       ``(D) $2,000,000 for fiscal year 2004.'';
       (2) in paragraph (2)(A), by striking ``2001'' each place it 
     appears and inserting ``2002''; and
       (3) in paragraph (2)(B), by striking ``2002 or 2003'' and 
     inserting ``2003 or 2004''.

     SEC. 809. PRIVATE SECTOR RESOURCES FOR SCORE.

       Section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 
     637(b)(1)(B)) is amended by adding at the end the following: 
     ``Notwithstanding any other provision of law, SCORE may 
     solicit cash and in-kind contributions from the private 
     sector to be used to carry out its functions under this Act, 
     and may use payments made by the Administration pursuant to 
     this subparagraph for such solicitation.''.

     SEC. 810. CONTRACT DATA COLLECTION.

       Section 15 of the Small Business Act (15 U.S.C. 644) is 
     amended by adding at the end the following new subsection:
       ``(p) Database, Analysis, and Annual Report With Respect to 
     Bundled Contracts.--
       ``(1) Bundled contract defined.--In this subsection, the 
     term `bundled contract' has the meaning given such term in 
     section 3(o)(1).
       ``(2) Database.--
       ``(A) In general.--Not later than 180 days after the date 
     of the enactment of this subsection, the Administrator of the 
     Small Business Administration shall develop and shall 
     thereafter maintain a database containing data and 
     information regarding--
       ``(i) each bundled contract awarded by a Federal agency; 
     and
       ``(ii) each small business concern that has been displaced 
     as a prime contractor as a result of the award of such a 
     contract.
       ``(3) Analysis.--For each bundled contract that is to be 
     recompeted as a bundled contract, the Administrator shall 
     determine--
       ``(A) the amount of savings and benefits (in accordance 
     with subsection (e)) achieved under the bundling of contract 
     requirements; and

[[Page 27019]]

       ``(B) whether such savings and benefits will continue to be 
     realized if the contract remains bundled, and whether such 
     savings and benefits would be greater if the procurement 
     requirements were divided into separate solicitations 
     suitable for award to small business concerns.
       ``(4) Annual report on contract bundling.--
       ``(A) In general.--Not later than 1 year after the date of 
     the enactment of this paragraph, and annually in March 
     thereafter, the Administration shall transmit a report on 
     contract bundling to the Committees on Small Business of the 
     House of Representatives and the Senate.
       ``(B) Contents.--Each report transmitted under subparagraph 
     (A) shall include--
       ``(i) data on the number, arranged by industrial 
     classification, of small business concerns displaced as prime 
     contractors as a result of the award of bundled contracts by 
     Federal agencies; and
       ``(ii) a description of the activities with respect to 
     previously bundled contracts of each Federal agency during 
     the preceding year, including--

       ``(I) data on the number and total dollar amount of all 
     contract requirements that were bundled; and
       ``(II) with respect to each bundled contract, data or 
     information on--

       ``(aa) the justification for the bundling of contract 
     requirements;
       ``(bb) the cost savings realized by bundling the contract 
     requirements over the life of the contract;
       ``(cc) the extent to which maintaining the bundled status 
     of contract requirements is projected to result in continued 
     cost savings;
       ``(dd) the extent to which the bundling of contract 
     requirements complied with the contracting agency's small 
     business subcontracting plan, including the total dollar 
     value awarded to small business concerns as subcontractors 
     and the total dollar value previously awarded to small 
     business concerns as prime contractors; and
       ``(ee) the impact of the bundling of contract requirements 
     on small business concerns unable to compete as prime 
     contractors for the consolidated requirements and on the 
     industries of such small business concerns, including a 
     description of any changes to the proportion of any such 
     industry that is composed of small business concerns.
       ``(5) Access to data.--
       ``(A) Federal procurement data system.--To assist in the 
     implementation of this section, the Administration shall have 
     access to information collected through the Federal 
     Procurement Data System.
       ``(B) Agency procurement data sources.--To assist in the 
     implementation of this section, the head of each contracting 
     agency shall provide, upon request of the Administration, 
     procurement information collected through existing agency 
     data collection sources.''.

     SEC. 811. PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSINESS 
                   CONCERNS.

       Section 8 of the Small Business Act (15 U.S.C. 637) is 
     amended by adding at the end the following:
       ``(m) Procurement Program for Women-owned Small Business 
     Concerns.--
       ``(1) Definitions.--In this subsection, the following 
     definitions apply:
       ``(A) Contracting officer.--The term `contracting officer' 
     has the meaning given such term in section 27(f)(5) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     423(f)(5)).
       ``(B) Small business concern owned and controlled by 
     women.--The term `small business concern owned and controlled 
     by women' has the meaning given such term in section 3(n), 
     except that ownership shall be determined without regard to 
     any community property law.
       ``(2) Authority to restrict competition.--In accordance 
     with this subsection, a contracting officer may restrict 
     competition for any contract for the procurement of goods or 
     services by the Federal Government to small business concerns 
     owned and controlled by women, if--
       ``(A) each of the concerns is not less than 51 percent 
     owned by 1 or more women who are economically disadvantaged 
     (and such ownership is determined without regard to any 
     community property law);
       ``(B) the contracting officer has a reasonable expectation 
     that 2 or more small business concerns owned and controlled 
     by women will submit offers for the contract;
       ``(C) the contract is for the procurement of goods or 
     services with respect to an industry identified by the 
     Administrator pursuant to paragraph (3);
       ``(D) the anticipated award price of the contract 
     (including options) does not exceed--
       ``(i) $5,000,000, in the case of a contract assigned an 
     industrial classification code for manufacturing; or
       ``(ii) $3,000,000, in the case of all other contracts;
       ``(E) in the estimation of the contracting officer, the 
     contract award can be made at a fair and reasonable price; 
     and
       ``(F) each of the concerns--
       ``(i) is certified by a Federal agency, a State government, 
     or a national certifying entity approved by the 
     Administrator, as a small business concern owned and 
     controlled by women; or
       ``(ii) certifies to the contracting officer that it is a 
     small business concern owned and controlled by women and 
     provides adequate documentation, in accordance with standards 
     established by the Administration, to support such 
     certification.
       ``(3) Waiver.--With respect to a small business concern 
     owned and controlled by women, the Administrator may waive 
     subparagraph (2)(A) if the Administrator determines that the 
     concern is in an industry in which small business concerns 
     owned and controlled by women are substantially 
     underrepresented.
       ``(4) Identification of industries.--The Administrator 
     shall conduct a study to identify industries in which small 
     business concerns owned and controlled by women are 
     underrepresented with respect to Federal procurement 
     contracting.
       ``(5) Enforcement; penalties.--
       ``(A) Verification of eligibility.--In carrying out this 
     subsection, the Administrator shall establish procedures 
     relating to--
       ``(i) the filing, investigation, and disposition by the 
     Administration of any challenge to the eligibility of a small 
     business concern to receive assistance under this subsection 
     (including a challenge, filed by an interested party, 
     relating to the veracity of a certification made or 
     information provided to the Administration by a small 
     business concern under paragraph (2)(F)); and
       ``(ii) verification by the Administrator of the accuracy of 
     any certification made or information provided to the 
     Administration by a small business concern under paragraph 
     (2)(F).
       ``(B) Examinations.--The procedures established under 
     subparagraph (A) may provide for program examinations 
     (including random program examinations) by the Administrator 
     of any small business concern making a certification or 
     providing information to the Administrator under paragraph 
     (2)(F).
       ``(C) Penalties.--In addition to the penalties described in 
     section 16(d), any small business concern that is determined 
     by the Administrator to have misrepresented the status of 
     that concern as a small business concern owned and controlled 
     by women for purposes of this subsection, shall be subject 
     to--
       ``(i) section 1001 of title 18, United States Code; and
       ``(ii) sections 3729 through 3733 of title 31, United 
     States Code.
       ``(6) Provision of data.--Upon the request of the 
     Administrator, the head of any Federal department or agency 
     shall promptly provide to the Administrator such information 
     as the Administrator determines to be necessary to carry out 
     this subsection.''.
     John Edward Porter,
     C.W. Bill Young,
     Henry Bonilla,
     Ernest J. Istook, Jr.,
     Dan Miller,
     Jay Dickey,
     Roger F. Wicker,
     Anne M. Northup,
     Randy ``Duke'' Cunningham,
     David R. Obey,
     Steny H. Hoyer,
     Nancy Pelosi,
     Nita M. Lowey,
     Rosa L. DeLauro,
     Jesse L. Jackson, Jr.,
       (Except elimination of LIHEAP and CCDBG advanced funding; 
     immigration and charitable choice provisions),
                                Managers on the Part of the House.

     Arlen Specter,
     Thad Cochran,
     Slade Gorton,
     Judd Gregg,
     Kay Bailey Hutchison,
     Ted Stevens,
     Pete V. Domenici,
     Tom Harkin,
     Ernest F. Hollings,
     Daniel K. Inouye,
     Harry Reid,
     Herb Kohl,
     Patty Murray,
     Dianne Feinstein,
     Robert C. Byrd
     Managers on the Part of the Senate.

                          ____________________