[Congressional Record (Bound Edition), Volume 146 (2000), Part 9]
[Senate]
[Pages 11958-11981]
[From the U.S. Government Publishing Office, www.gpo.gov]



                          AMENDMENTS SUBMITTED

                                 ______
                                 

  DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND 
               RELATED AGENCIES APPROPRIATIONS ACT, 2001

                                 ______
                                 

                SPECTER (AND HARKIN) AMENDMENT NO. 3590

  Mr. SPECTER (for himself and Mr. Harkin) proposed an amendment 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; as 
follows:

       Strike all after the enacting clause, and insert the 
     following:

[[Page 11959]]

     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 and the National Skill Standards Act of 1994; 
     $2,990,141,000 plus reimbursements, of which $1,718,801,000 
     is available for obligation for the period July 1, 2001 
     through June 30, 2002, of which $1,250,965,000 is available 
     for obligation for the period April 1, 2001 through June 30, 
     2002, including $1,000,965,000 to carry out chapter 4 of the 
     Workforce Investment Act and $250,000,000 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.
       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 the activities for national grants or 
     contracts with public agencies and public or private 
     nonprofit organizations under paragraph (1)(A) of section 
     506(a) of title V of the Older Americans Act of 1965, as 
     amended, or to carry out older worker activities as 
     subsequently authorized, $343,356,000.
       To carry out the activities for grants to States under 
     paragraph (3) of section 506(a) of title V of the Older 
     Americans Act of 1965, as amended, or to carry out older 
     worker activities as subsequently authorized, $96,844,000.


              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, $153,452,000, 
     together with not to exceed $3,095,978,000 (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 $153,452,000, together with not to exceed 
     $763,283,000 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, $107,651,000, 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, $103,342,000.

                  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.

                  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, $350,779,000, 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,

[[Page 11960]]

     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, 
     $30,510,000 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, $19,971,000; (2) for conversion to a 
     paperless office, $7,005,000; (3) for communications 
     redesign, $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)

       Beginning in fiscal year 2001 and thereafter, such sums as 
     may be necessary from the Black Lung Disability Trust Fund, 
     to remain available until expended, for payment of all 
     benefits 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. 
     In addition, the following amounts shall be available from 
     the Fund for fiscal year 2001 for expenses of operation and 
     administration of the Black Lung Benefits program as 
     authorized by section 9501(d)(5) of that Act: $30,393,000 for 
     transfer to the 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 payments into 
     Miscellaneous Receipts for the expenses of the Department of 
     Treasury.

             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, $244,747,000, 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 
     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 and their employees for services rendered, 
     $369,327,000, 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

[[Page 11961]]

     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, $30,000,000 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; $337,964,000: 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, $19,800,000, 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. Extended Deadline for Expenditure. Section 
     403(a)(5)(C)(viii) of the Social Security Act (42 U.S.C. 
     603(a)(5)(C)(viii)) (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 ``3 years'' and inserting ``5 
     years''.
       Sec. 104. Elimination of Set-Aside of Portion of Welfare-
     to-Work Funds for Performance Bonuses. (a) In General.--
     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) Conforming Amendments.--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) Funding Amendment.--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) Effective Date.--The amendments made by subsections 
     (a), (b), and (c) of this section shall take effect on 
     October 1, 2000.

           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, and the Native 
     Hawaiian Health Care Act of 1988, as amended, $4,522,424,000, 
     of which $150,000 shall remain available until expended for 
     interest subsidies on loan guarantees made prior to fiscal 
     year 1981 under part B of title VII of the Public Health 
     Service Act, and of which $10,000,000 shall be available for 
     the construction and renovation of health care and other 
     facilities, 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 221 of the Health Insurance Portability 
     and Accountability Act of 1996, shall be sufficient to 
     recover the full costs of operating the Program, and shall 
     remain available to carry out that Act until expended: 
     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 
     $538,000,000 shall be for State AIDS Drug Assistance Programs 
     authorized by section 2616 of the Public Health Service Act.

[[Page 11962]]




                ricky ray hemophilia relief fund program

       For payment to the Ricky Ray Hemophilia Relief Fund, as 
     provided by Public Law 105-369, $85,000,000, of which 
     $10,000,000 shall be for program management.


           Health Education Assistance Loans Program Account

       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, $3,204,496,000, 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: Provided, That in addition to amounts 
     provided herein, up to $91,129,000 shall be available from 
     amounts available under section 241 of the Public Health 
     Service Act: 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.

                     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, $3,804,084,000.


               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, $2,328,102,000.


         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, 
     $309,923,000.


    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, $1,318,106,000.


        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, $1,189,425,000.


         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, $2,066,526,000.


             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, 
     $1,554,176,000.


        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, $986,069,000.


                         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, $516,605,000.


          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, $508,263,000.


                      National Institute on Aging

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to aging, $794,625,000.


 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, $401,161,000.


    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, $303,541,000.


                 National Institute of Nursing Research

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to nursing research, 
     $106,848,000.


           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, $336,848,000.


                    National Institute on Drug Abuse

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to drug abuse, $790,038,000.


                  National Institute of Mental Health

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to mental health, 
     $1,117,928,000.


                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, 
     $385,888,000.


                 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, $775,212,000: 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 with such grants: Provided 
     further, That $75,000,000 shall be for extramural facilities 
     construction grants.


       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, $100,089,000.


                  John E. Fogarty International Center

       For carrying out the activities at the John E. Fogarty 
     International Center, $61,260,000.


                      National Library of Medicine

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to health information 
     communications, $256,953,000, 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.


                         Office of the Director

                     (including transfer of funds)

       For carrying out the responsibilities of the Office of the 
     Director, National Institutes of Health, $352,165,000, 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

[[Page 11963]]

     used by the National Institutes of Health, including the 
     acquisition of real property, $148,900,000, to remain 
     available until expended, of which $47,300,000 shall be for 
     the 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, 
     $2,730,757,000: Provided, That in addition to amounts 
     provided herein, $12,000,000 shall be available from amounts 
     available under section 241 of the Public Health Services 
     Act, to carry out the National Household Survey on Drug 
     Abuse.

               Agency for Healthcare Research and Quality


                    Healthcare Research and Quality

       For carrying out titles III and IX of the Public Health 
     Service Act, 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 $269,943,000.

                  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 
     $2,018,500,000, 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 $3,000,000 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 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: 
     Provided further, That administrative fees collected relative 
     to Medicare overpayment recovery activities shall be 
     transferred to the Health Care Fraud and Abuse Control 
     (HCFAC) account, to be used for Medicare Integrity Program 
     (MIP) activities in addition to the amounts already 
     specified, and shall remain available until expended.

                Administration for Children and Families


                   low income home energy assistance

       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), $418,321,000, to 
     remain available through September 30, 2003.
       For carrying out section 5 of the Torture Victims Relief 
     Act of 1998 (Public Law 105-320), $7,265,000.


  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), 
     $2,473,880,000, 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.


   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: 
     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: 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, $222,672,000 shall be reserved by 
     the States for activities authorized under section 658G, of 
     which $60,000,000 shall be for activities that improve the 
     quality of infant and toddler child care.


                      Social Services Block Grant

       For making grants to States pursuant to section 2002 of the 
     Social Security Act, $600,000,000: 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 $600,000,000.


                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, part B(1) of title IV and sections 413, 429A, 1110, and 
     1115 of the Social Security Act; 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

[[Page 11964]]

     Law 100-485, $7,881,586,000, of which $41,791,000, 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); of which $134,074,000, to remain available 
     until expended, shall be for activities authorized by 
     sections 40155, 40211, and 40241 of Public Law 103-322; of 
     which $606,676,000 shall be for making payments under the 
     Community Services Block Grant Act; and of which 
     $6,267,000,000 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 2000 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 2000 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, $4,868,100,000.
       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, $954,619,000: 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 available to such State for such purpose for fiscal 
     year 1995: Provided further, That in considering grant 
     applications for nutrition services for elder Indian 
     recipients, the Assistant Secretary shall provide maximum 
     flexibility to applicants who seek to take into account 
     subsistence, local customs, and other characteristics that 
     are appropriate to the unique cultural, regional, and 
     geographic needs of the American Indian, Alaska and Hawaiian 
     Native communities to be served.

                        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, $206,766,000, 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, $10,569,000 shall be for 
     activities specified under section 2003(b)(2), of which 
     $9,131,000 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.


                      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.


                        office for Civil Rights

       For expenses necessary for the Office for Civil Rights, 
     $20,742,000, 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 public health and social services, $264,600,000.

                           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 
     II.
       Sec. 205. Notwithstanding section 241(a) of the Public 
     Health Service Act, such portion as the Secretary shall 
     determine, but not more than 1.6 percent, of any amounts 
     appropriated for programs authorized under the PHS Act shall 
     be made available for the evaluation (directly or by grants 
     or contracts) of the implementation and effectiveness of such 
     programs.


                          (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. (a) Mental Health.--Section 1918(b) of the Public 
     Health Service Act (42 U.S.C. 300x-7(b)) is amended to read 
     as follows:
       ``(b) Minimum Allotments for States.--Each State's 
     allotment for fiscal year 2001 for programs under this 
     subpart shall not be less than such State's allotment for 
     such programs for fiscal year 2000.''.

[[Page 11965]]

       (b) Substance Abuse.--Section 1933(b) of the Public Health 
     Service Act (42 U.S.C. 300x-33(b)) is amended to read as 
     follows:
       ``(b) Minimum Allotments for States.--Each State's 
     allotment for fiscal year 2001 for programs under this 
     subpart shall not be less than such State's allotment for 
     such programs for fiscal year 2000.''.
       Sec. 212. 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. 213. Extension of Certain Adjudication Provisions.--
     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. 214. 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. 215. Withholding of Substance Abuse Funds. (a) In 
     General.--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 December 15, 2000 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) Amount of State Funds.--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) Additional State Funds.--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) Enforcement of State Obligations.--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, 
     2000.
       Sec. 216. Section 403(a)(3) of the Social Security Act (42 
     U.S.C. 603(a)(3)) is amended--
       (1) in subparagraph (A)--
       (A) in clause (i), by striking ``and'' at the end;
       (B) in clause (ii)--
       (i) by striking ``1999, 2000, and 2001'' and inserting 
     ``1999 and 2000''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following new clause:
       ``(iii) for fiscal year 2001, a grant in an amount equal to 
     the amount of the grant to the State under clause (i) for 
     fiscal year 1998.'' and
       (2) in subparagraph (G), by inserting at the end, ``Upon 
     enactment, the provisions of this Act that would have been 
     estimated by the Director of the Office of Management and 
     Budget as changing direct spending and receipts for fiscal 
     year 2001 under section 252 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (Public Law 99-177), to 
     the extent such changes would have been estimated to result 
     in savings in fiscal year 2001 of $240,000,000 in budget 
     authority and $122,000,000 in outlays, shall be treated as if 
     enacted in an appropriations act pursuant to Rule 3 of the 
     Budget Scorekeeping Guidelines set forth in the Joint 
     Explanatory Statement of the Committee of Conference 
     accompanying Conference Report No. 105-217, thereby changing 
     discretionary spending under section 251 of that Act.''.
       Sec. 217. (a) Notwithstanding Section 2104(f) of the Social 
     Security Act (the Act), the Secretary of Health and Human 
     Services shall reduce the amounts allotted to a State under 
     subsection (b) of the Act for fiscal year 1998 by the 
     applicable amount with respect to the State; and
       (b) Notwithstanding Section 2104(a) of the Act, the 
     Secretary shall increase the amount otherwise payable to each 
     State under such subsection for fiscal year 2003 by the 
     amount of the reduction made under paragraph (a) of this 
     section. Funds made available under this subsection shall 
     remain available through September 30, 2004.
       (c) Applicable Amount Defined.--In subsection (a), with 
     respect to a State, the term ``applicable amount'' means, 
     with respect to a State, an amount bearing the same 
     proportion to $1,900,000,000 as the unexpended balance of its 
     fiscal year 1998 allotment as of September 30, 2000, which 
     would otherwise be redistributed to States in fiscal year 
     2001 under Section 2104(f) of the Act, bears to the sum of 
     the unexpended balances of fiscal year 1998 allotments for 
     all States as of September 30, 2000: Provided, That, the 
     applicable amount for a State shall not exceed the unexpended 
     balance of its fiscal year 1998 allotment as of September 30, 
     2000.

                   TITLE III--DEPARTMENT OF EDUCATION

              Office of Elementary and Secondary 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 part I of title X of the 
     Elementary and Secondary Education Act of 1965, 
     $1,434,500,000, of which $40,000,000 shall be for the Goals 
     2000: Educate America Act, and of which $192,000,000 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, notwithstanding part I of title X of the 
     Elementary and Secondary Education Act of 1965 or any other 
     provision of law, a community-based organization that has 
     experience in providing before- and after-school services 
     shall be eligible to receive a grant under that part, on the 
     same basis as a school or consortium described in section 
     10904 of that Act, and the Secretary shall give priority to 
     any application for such a grant that is submitted jointly by 
     such a community-based organization and such a school or 
     consortium.


                    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, $8,986,800,000, of which 
     $2,729,958,000 shall become available on July 1, 2001, and 
     shall remain available through September 30, 2002, and of 
     which $6,223,342,000 shall become available on October 1, 
     2001 and shall remain available through September 30, 2002, 
     for academic year 2000-2001: Provided, That $7,113,403,000 
     shall be available for basic grants under section 1124: 
     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 
     $1,222,397,000 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 made to each 
     State and local educational agency at no less than 100 
     percent of the amount such State or local educational agency 
     received under this authority for fiscal year 2000: 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 each such local educational 
     agency shall receive an amount equal to the Concentration 
     Grant the agency received in fiscal year 2000, ratably 
     reduced, if necessary, to ensure that these local educational 
     agencies receive no greater share of their hold-harmless 
     amounts than other local educational agencies: Provided 
     further, That notwithstanding any other provision of law, in 
     calculating the amount of Federal assistance awarded to a 
     State or local educational agency under any program under 
     title I of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6301 et seq.) on the basis of a formula described 
     in section 1124 or 1124A of such Act (20 U.S.C. 6333, 6334), 
     any funds appropriated for the program in excess of the 
     amount appropriated for the program for fiscal year 2000 
     shall be awarded according to the formula, except that, for 
     such purposes, the formula shall be applied only to States or 
     local educational agencies that experience a reduction under 
     the program for fiscal year 2001 as a result of the 
     application of the 100 percent hold harmless provisions under 
     the heading ``Education for the Disadvantaged'': Provided 
     further, That the Secretary shall not take into account the 
     hold harmless provisions in this section in determining State 
     allocations under any

[[Page 11966]]

     other program administered by the Secretary in any fiscal 
     year.


                               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, 
     $1,030,000,000, of which $818,000,000 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), $82,000,000, to remain available until expended, 
     shall be for payments under section 8003(f), $25,000,000 
     shall be for construction under section 8007, $47,000,000 
     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.


                      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 Stewart B. McKinney Homeless Assistance Act; and the 
     Civil Rights Act of 1964 and part B of title VIII of the 
     Higher Education Act of 1965; $4,672,534,000, of which 
     $1,100,200,000 shall become available on July 1, 2001, and 
     remain available through September 30, 2002, and of which 
     $2,915,000,000 shall become available on October 1, 2001 and 
     shall remain available through September 30, 2002 for 
     academic year 2001-2002: Provided, That of the amount 
     appropriated, $435,000,000 shall be for Eisenhower 
     professional development State grants under title II-B and 
     $3,100,000,000 shall be for title VI and up to $750,000 shall 
     be for an evaluation of comprehensive regional assistance 
     centers under title XIII of ESEA: Provided further, That of 
     the amount made available for Title VI, $2,700,000,000 shall 
     be available, notwithstanding any other provision of law, for 
     purposes consistent with title VI to be determined by the 
     local education agency as part of a local strategy for 
     improving academic achievement: Provided further, That these 
     funds may also be used to address the shortage of highly 
     qualified teachers to reduce class size, particularly in 
     early grades, using highly qualified teachers to improve 
     educational achievement for regular and special needs 
     children; to support efforts to recruit, train and retrain 
     highly qualified teachers or for school construction and 
     renovation of facilities, at the sole discretion of the local 
     educational agency.


                           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.

      Office of Bilingual Education and Minority Languages Affairs


                   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, without regard to section 7103(b), $443,000,000: 
     Provided, That State educational agencies may use all, or any 
     part of, their part C allocation for competitive grants to 
     local educational agencies.

        Office of Special Education and Rehabilitative Services


                           Special Education

       For carrying out the Individuals with Disabilities 
     Education Act, $7,352,341,000, of which $2,464,452,000 shall 
     become available for obligation on July 1, 2001, and shall 
     remain available through September 30, 2002, and of which 
     $4,624,000,000 shall become available on October 1, 2001 and 
     shall remain available through September 30, 2002, for 
     academic year 2001-2002: Provided, 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 the amount 
     for section 611(c) of the Act shall be equal to the amount 
     available for that section under Public Law 106-113, 
     increased by the rate of inflation as specified in section 
     611(f)(1)(B)(ii) of the 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, 
     $2,799,519,000: Provided, That notwithstanding section 
     105(b)(1) of the Assistive Technology Act of 1998 (``the AT 
     Act''), each State shall be provided $50,000 for activities 
     under section 102 of the AT Act: Provided further, That 
     notwithstanding section 105(b)(1) and section 101(f)(2) and 
     (3) of the Assistive Technology Act of 1998, each State shall 
     be provided a minimum of $500,000 for activities under 
     section 101: Provided further, That $7,000,000 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.

           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.), $12,500,000.


               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.), $54,366,000, of which $7,176,000 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.), 
     $87,650,000: Provided, That from the total amount available, 
     the University may at its discretion use funds for the 
     endowment program as authorized under section 207.

                Office of Vocational and Adult Education


                     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, $1,726,600,000, of which $1,000,000 shall remain 
     available until expended, and of which $929,000,000 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 up to 15 percent of the funds provided 
     may be used by the national entity designated under section 
     118(a) to cover the cost of authorized activities and 
     operations, including Federal salaries and expenses: Provided 
     further, That the national entity is authorized, effective 
     upon enactment, to charge fees for publications, training, 
     and technical assistance developed by that national entity: 
     Provided further, That revenues received from publications 
     and delivery of technical assistance and training, 
     notwithstanding 31 U.S.C. 3302, may be credited to the 
     national entity's account and shall be available to the 
     national entity, without fiscal year limitation, so long as 
     such revenues are used for authorized activities and 
     operations of the national entity: Provided further, That of 
     the funds made available to carry out section 204 of the 
     Perkins Act, all funds that a State receives in excess of its 
     prior-year allocation shall be competitively awarded: 
     Provided further, That in making these awards, each State 
     shall give priority to consortia whose applications most 
     effectively integrate all components under section 204(c): 
     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 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: Provided further, That of 
     the amounts made available for title I of the Perkins Act, 
     the Secretary may reserve up to 0.54 percent for incentive 
     grants under section 503 of the Workforce Investment Act, 
     without regard to section 111(a)(1)(C) of the Perkins Act: 
     Provided further, That of the amounts made available for the 
     Adult Education and Family Literacy Act, the Secretary may 
     reserve up to 0.54 percent for incentive grants under section 
     503 of the Workforce Investment Act, without regard to 
     section 211(a)(3) of the Adult Education and Family Literacy 
     Act.

                 Office of Student Financial Assistance


                      Student Financial Assistance

       For carrying out subparts 1, 3 and 4 of part A, part C and 
     part E of title IV of the Higher Education Act of 1965, as 
     amended, $10,624,000,000, 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 $3,650: 
     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

[[Page 11967]]

     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.

                   Office of Postsecondary Education


                            Higher Education

       For carrying out, to the extent not otherwise provided, 
     section 121 and titles II, III, IV, V, VI, VII, and VIII of 
     the Higher Education Act of 1965, as amended, and the Mutual 
     Educational and Cultural Exchange Act of 1961; 
     $1,694,520,000, 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 
     $11,000,000, to remain available through September 30, 2002, 
     shall be available to fund fellowships under part A, subpart 
     1 of title VII of said Act, of which up to $1,000,000 shall 
     be available to fund fellowships for academic year 2001-2002, 
     and the remainder shall be available to fund fellowships for 
     academic year 2002-2003: 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 section 
     404F(a) of the Higher Education Amendments of 1998 is amended 
     by striking out ``using funds appropriated under section 404H 
     that do not exceed $200,000'' and inserting in lieu thereof 
     ``using not more than 0.2 percent of the funds appropriated 
     under section 404H''.


                           Howard University

       For partial support of Howard University (20 U.S.C. 121 et 
     seq.), $224,000,000, of which not less than $3,530,000 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, $737,000 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.

             Office of Educational Research and Improvement


            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, and parts A, B, and K and section 10102, section 
     10105, 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, $496,519,000: Provided, 
     That of the funds appropriated under section 10601 of title X 
     of the Elementary and Secondary Education Act of 1965, as 
     amended, $1,500,000 shall be used to conduct a violence 
     prevention demonstration program: Provided further, That 
     $40,000,000 of the funds provided 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: 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, in 
     addition to the funds for title VI of Public Law 103-227 and 
     notwithstanding the provisions of section 601(c)(1)(C) of 
     that Act, $1,000,000 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, $396,672,000.


                        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, $73,224,000.


                    Office of the Inspector General

       For expenses necessary for the Office of Inspector General, 
     as authorized by section 212 of the Department of Education 
     Organization Act, $35,456,000.

                           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.

                       TITLE IV--RELATED AGENCIES

                      Armed Forces Retirement Home


                      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. In addition, for completion of the long-term 
     care facility at the United States Naval Home, $6,228,000 to 
     become available on October 1, 2001, and remain available 
     until expended.

             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, $302,504,000: 
     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

[[Page 11968]]

     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, $168,000,000, to remain available until 
     expended.

                  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, $2,350,000.

                     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, $92,500,000, 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 to section 
     201(g)(1) of the Social Security Act, $23,053,000,000, 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.
       From funds provided under the previous paragraph, not less 
     than $100,000,000 shall be available for payment to the 
     Social Security trust funds for administrative expenses for 
     conducting continuing disability reviews.
       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

[[Page 11969]]

     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 
     $6,469,800,000 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
       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.


                      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, $12,951,000.

                      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 unless the 
     Secretary of Health and Human Services determines that such 
     programs are effective in preventing the spread of HIV and do 
     not encourage the use of illegal drugs.
       Sec. 506. (a) Purchase of American-Made Equipment and 
     Products.--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) Notice Requirement.--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) Prohibition of Contracts With Persons Falsely Labeling 
     Products as Made in America.--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, 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.

[[Page 11970]]

       Sec. 511. (a) Limitation on Use of Funds for Promotion of 
     Legalization of Controlled Substances.--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) Exceptions.--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. Except as otherwise specifically provided by law, 
     unobligated balances remaining available at the end of fiscal 
     year 2000 from appropriations made available for salaries and 
     expenses for fiscal year 2000 in this Act, shall remain 
     available through December 31, 2001, for each such account 
     for the purposes authorized: Provided, That the House and 
     Senate Committees on Appropriations shall be notified at 
     least 15 days prior to the obligation of such funds.
       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. Restoring Benefit Payments to Appropriate Year. 
     Section 5527 of Public Law 105-33 is repealed.
       Sec. 516. 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''.
       This Act may be cited as the ``Departments of Labor, Health 
     and Human Services, and Education, and Related Agencies 
     Appropriations Act, 2001''.
                                 ______
                                 

                 DeWINE (AND OTHERS) AMENDMENT NO. 3591

  (Ordered to lie on the table.)
  Mr. DeWINE (for himself, Mr. Gorton, Mr. Graham, and Mr. Enzi) 
submitted an amendment intended to be proposed by them to the bill, 
H.R. 4577 supra; as follows:

       On page 70, line 7, insert before the period the following: 
     ``: Provided, That $10,000,000 shall be made available to the 
     Secretary of Education for the Troops-to-Teachers Program for 
     transfer to the Defense Activity for Non-Traditional 
     Education Support of the Department of Defense, such funds to 
     be used by the Secretary of Defense to perform the actual 
     administration of the Troops-to-Teachers Program, including 
     the selection of participants in the Program under section 
     594 of the Troops-to-Teachers Program Act of 1999: Provided 
     further, That the Secretary of Education may retain a portion 
     of such funds to identify local educational agencies with 
     teacher shortages and States with alternative certification 
     requirements, as required by section 592 of such Act''.
                                 ______
                                 

                 DeWINE (AND OTHERS) AMENDMENT NO. 3592

  (Ordered to lie on the table.)
  Mr. DeWINE (for himself, Mrs. Murray, Mr. Grassley, Mr. Durbin, Mrs. 
Lincoln, Mr. Hagel, and Mr. Dodd) submitted an amendment intended to be 
proposed by them to the bill, H.R. 4577 supra; as follows:

       On page 54, between lines 10 and 11, insert the following:
       Sec. __. (a) In addition to amounts made available under 
     the heading ``Health Resources and Services Administration-
     Health Resources and Services'' for poison prevention and 
     poison control center activities, there shall be available an 
     additional $21,600,000 to provide assistance for such 
     activities and to stabilize the funding of regional poison 
     control centers as provided for pursuant to the Poison 
     Control Center Enhancement and Awareness Act (Public Law 106-
     174).
       (b) Amounts made available under this Act for the 
     administrative and related expenses of the Department of 
     Health and Human Services, the Department of Labor, and the 
     Department of Education shall be reduced on a pro rata basis 
     by $21,600,000.
                                 ______
                                 

                  ENZI (AND OTHERS) AMENDMENT NO. 3593

  Mr. ENZI (for himself, Mr. Lott, Mr. Nickles, Mr. Jeffords, Mr. Bond, 
Mr. Hutchinson, Mr. Brownback, Mr. Sessions, Mr. Hagel, Mr. DeWine, Mr. 
Crapo, Mr. Bennett, Mr. Thompson, Mr. Burns, Ms. Collins, Mr. Frist, 
Mr. Gregg, Mr. Coverdell, Mr. Voinovich, Mr. Fitzgerald, Mr. Abraham, 
Ms. Snowe, Mr. Ashcroft, Mr. Grams, Mrs. Hutchison, Mr. Thomas, Mr. 
Allard, Mr. L. Chafee, Mr. Domenici, Mr. Thurmond, and Mr. Helms) 
proposed an amendment to the bill, H.R. 4577, supra; as follows:

       On page 23, between lines 12 and 13, insert the following:
       Sec.   . None of the funds made available in this Act may 
     be used by the Occupational Safety and Health Administration 
     to promulgate, issue, implement, administer, or enforce any 
     proposed, temporary, or final standard on ergonomic 
     protection.
                                 ______
                                 

              HUTCHINSON (AND NICKLES) AMENDMENT NO. 3594

  Mr. HUTCHINSON (for himself and Mr. Nickles) proposed an amendment to 
amendment no. 3593 previously proposed by Mr. Enzi to the bill, H.R. 
4577, supra; as follows:

       Strike all after the first word, and insert the following:
       None of the funds made available in this Act may be used by 
     the Occupational Safety and Health Administration to 
     promulgate, issue, implement, administer, or enforce any 
     proposed, temporary, or final standard on ergonomic 
     protection.
                                 ______
                                 

                       GRAHAM AMENDMENT NO. 3595

  (Ordered to lie on the table.)
  Mr. GRAHAM submitted an amendment intended to be proposed by him to 
the bill, H.R. 4577, supra; as follows:

       On page 40, beginning on line 10, strike ``$600,000,000'' 
     and all that follows through line 13, and insert 
     ``$1,700,000,000.''.
                                 ______
                                 

                      WELLSTONE AMENDMENT NO. 3596

  (Ordered to lie on the table.)
  Mr. WELLSTONE submitted an amendment intended to be proposed by him 
to the bill, H.R. 4577, supra; as follows:

       On page 40, beginning on line 10, strike ``$600,000,000'' 
     and all that follows through line 13, and insert 
     ``$2,380,000,000.''.
                                 ______
                                 

                       GRAHAM AMENDMENT NO. 3597

  (Ordered to lie on the table.)
  Mr. GRAHAM submitted an amendment intended to be proposed by him to 
the bill, H.R. 4577, supra; as follows:

       On page 54, between lines 10 and 11, insert the following:
       Sec. __. (a) Study.--The Secretary of Health and Human 
     Services shall conduct a study to examine--
       (1) the experiences of hospitals in the United States in 
     obtaining reimbursement from foreign health insurance 
     companies whose enrollees receive medical treatment in the 
     United States;
       (2) the identity of the foreign health insurance companies 
     that do not cooperate with or reimburse (in whole or in part) 
     United States health care providers for medical services 
     rendered in the United States to enrollees who are foreign 
     nationals;
       (3) the amount of unreimbursed services that hospitals in 
     the United States provide to foreign nationals described in 
     paragraph (2); and
       (4) solutions to the problems identified in the study.
       (b) Report.--Not later than March 31, 2001, the Secretary 
     of Health and Human Services shall prepare and submit to the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate, a report concerning the results of the study 
     conducted under subsection (a), including the recommendations 
     described in paragraph (4) of such subsection.
                                 ______
                                 

                        ROBB AMENDMENT NO. 3598

  Mr. ROBB proposed an amendment to the instructions to the motion to 
commit the bill, H.R. 4577, supra; as follows:

    TITLE __--MEDICARE OUTPATIENT PRESCRIPTION DRUG BENEFIT PROGRAM

     SEC. __01. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This title may be cited as the ``Medicare 
     Outpatient Drug Act of 2000''.
       (b) Table of Contents.--The table of contents of this title 
     is as follows:

Sec. __01. Short title; table of contents.
Sec. __02. Medicare outpatient prescription drug benefit program.

         ``Part D--Outpatient Prescription Drug Benefit Program

``Sec. 1860. Definitions.

[[Page 11971]]

  ``Subpart 1--Establishment of Outpatient Prescription Drug Benefit 
                                Program

``Sec. 1860A. Establishment of outpatient prescription drug benefit 
              program.
``Sec. 1860B. Enrollment.
``Sec. 1860C. Providing information to beneficiaries.
``Sec. 1860D. Premiums.
``Sec. 1860E. Cost-sharing.
``Sec. 1860F. Selection of entities to provide outpatient drug benefit.
``Sec. 1860G. Conditions for awarding contract.
``Sec. 1860H. Payments.
``Sec. 1860I. Employer incentive program for employment-based retiree 
              drug coverage.
``Sec. 1860J. Appropriations.

    ``Subpart 2--Medicare Pharmacy and Therapeutics (P&T) Advisory 
                               Committee

``Sec. 1860M. Medicare Pharmacy and Therapeutics (P&T) Advisory 
              Committee.''.
Sec. __03. Part D benefits under Medicare+Choice plans.
Sec. __04. Exclusion of part D costs from determination of part B 
              monthly premium.
Sec. __05. Reporting requirements for Secretary of the Treasury 
              regarding income-related part D premium.
Sec. __06. Additional assistance for low-income beneficiaries.
Sec. __07. Medigap revisions.
Sec. __08. HHS studies and report to Congress.
Sec. __09. Appropriations.

     SEC. __02. MEDICARE OUTPATIENT PRESCRIPTION DRUG BENEFIT 
                   PROGRAM.

       (a) Establishment.--Title XVIII of the Social Security Act 
     (42 U.S.C. 1395 et seq.) is amended by redesignating part D 
     as part E and by inserting after part C the following new 
     part:

         ``Part D--Outpatient Prescription Drug Benefit Program


                             ``definitions

       ``Sec. 1860. In this part:
       ``(1) Covered outpatient drug.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `covered outpatient drug' means any of the following 
     products:
       ``(i) A drug which may be dispensed only upon prescription, 
     and--

       ``(I) which is approved for safety and effectiveness as a 
     prescription drug under section 505 of the Federal Food, 
     Drug, and Cosmetic Act;
       ``(II)(aa) which was commercially used or sold in the 
     United States before the date of enactment of the Drug 
     Amendments of 1962 or which is identical, similar, or related 
     (within the meaning of section 310.6(b)(1) of title 21 of the 
     Code of Federal Regulations) to such a drug, and (bb) which 
     has not been the subject of a final determination by the 
     Secretary that it is a `new drug' (within the meaning of 
     section 201(p) of the Federal Food, Drug, and Cosmetic Act) 
     or an action brought by the Secretary under section 301, 
     302(a), or 304(a) of such Act to enforce section 502(f) or 
     505(a) of such Act; or
       ``(III)(aa) which is described in section 107(c)(3) of the 
     Drug Amendments of 1962 and for which the Secretary has 
     determined there is a compelling justification for its 
     medical need, or is identical, similar, or related (within 
     the meaning of section 310.6(b)(1) of title 21 of the Code of 
     Federal Regulations) to such a drug, and (bb) for which the 
     Secretary has not issued a notice of an opportunity for a 
     hearing under section 505(e) of the Federal Food, Drug, and 
     Cosmetic Act on a proposed order of the Secretary to withdraw 
     approval of an application for such drug under such section 
     because the Secretary has determined that the drug is less 
     than effective for all conditions of use prescribed, 
     recommended, or suggested in its labeling.

       ``(ii) A biological product which--

       ``(I) may only be dispensed upon prescription;
       ``(II) is licensed under section 351 of the Public Health 
     Service Act; and

       ``(III) is produced at an establishment licensed under such 
     section to produce such product.

       ``(iii) Insulin approved under appropriate Federal law, 
     including needles, syringes, and disposable pumps for the 
     administration of such insulin.
       ``(iv) A prescribed drug or biological product that would 
     meet the requirements of clause (i) or (ii) but that it is 
     available over-the-counter in addition to being available 
     upon prescription.
       ``(B) Exclusion.--The term `covered outpatient drug' does 
     not include any product--
       ``(i) except as provided in subparagraph (A)(iv), which may 
     be distributed to individuals without a prescription;
       ``(ii) that is covered under part A or B (unless coverage 
     of such product is not available because benefits under part 
     A or B have been exhausted); or
       ``(iii) except for agents used to promote smoking 
     cessation, for which coverage may be excluded or restricted 
     under section 1927(d)(2).
       ``(2) Eligible beneficiary.--The term `eligible 
     beneficiary' means an individual that is entitled to benefits 
     under part A or enrolled under part B.
       ``(3) Eligible entity.--The term `eligible entity' means 
     any entity that the Secretary determines to be appropriate to 
     provide eligible beneficiaries with covered outpatient drugs 
     under a contract entered into under this part, including--
       ``(A) a pharmacy benefit management company;
       ``(B) a retail pharmacy delivery system;
       ``(C) a health plan or insurer;
       ``(D) a State (through mechanisms established under a State 
     plan under title XIX);
       ``(E) any other entity approved by the Secretary; or
       ``(F) any combination of the entities described in 
     subparagraphs (A) through (E) if the Secretary determines 
     that such combination--
       ``(i) increases the scope or efficiency of the provision of 
     benefits under this part; and
       ``(ii) is not anticompetitive.

  ``Subpart 1--Establishment of Outpatient Prescription Drug Benefit 
                                Program


    ``establishment of outpatient prescription drug benefit program

       ``Sec. 1860A. (a) Provision of Benefit.--Beginning in 2003, 
     the Secretary shall provide for an outpatient prescription 
     drug benefit program under which an eligible beneficiary 
     shall be provided covered outpatient drugs.
       ``(b) Voluntary Nature of Program.--Nothing in this part 
     shall be construed as requiring an eligible beneficiary to 
     enroll in the program established under this part.
       ``(c) Scope of Benefits.--The program established under 
     this part shall provide for coverage of all therapeutic 
     classes of covered outpatient drugs.
       ``(d) Financing.--The costs of providing benefits under 
     this part shall be payable from the Federal Supplementary 
     Medical Insurance Trust Fund established under section 1841.


                              ``enrollment

       ``Sec. 1860B. (a) Enrollment Under Part D.--
       ``(1) Establishment of process.--
       ``(A) In general.--The Secretary shall establish a process 
     through which an eligible beneficiary (including an eligible 
     beneficiary enrolled in a Medicare+Choice plan offered by a 
     Medicare+Choice organization) may make an election to enroll 
     under this part. Such process shall be similar to the process 
     for enrollment in part B under section 1837.
       ``(B) Requirement of enrollment.--An eligible beneficiary 
     must enroll under this part in order to be eligible to 
     receive covered outpatient drugs under this title.
       ``(2) Enrollment procedures.--
       ``(A) Late enrollment penalty.--
       ``(i) In general.--Subject to the succeeding provisions of 
     this subparagraph, in the case of an eligible beneficiary 
     whose coverage period under this part began pursuant to an 
     enrollment after the beneficiary's initial enrollment period 
     under part B (determined pursuant to section 1837(d)) and not 
     pursuant to the open enrollment period described in 
     subparagraph (B), the Secretary shall establish procedures 
     for increasing the amount of the monthly premium under 
     section 1860D applicable to such beneficiary--

       ``(I) by an amount that is equal to 10 percent of such 
     premium for each full 12-month period (in the same continuous 
     period of eligibility) in which the eligible beneficiary 
     could have been enrolled under this part but was not so 
     enrolled; or
       ``(II) if determined appropriate by the Secretary, by an 
     amount that the Secretary determines is actuarily sound for 
     each such period.

       ``(ii) Periods taken into account.--For purposes of 
     calculating any 12-month period under clause (i), there shall 
     be taken into account--

       ``(I) the months which elapsed between the close of the 
     eligible beneficiary's initial enrollment period and the 
     close of the enrollment period in which the beneficiary 
     enrolled; and
       ``(II) in the case of an eligible beneficiary who reenrolls 
     under this part, the months which elapsed between the date of 
     termination of a previous coverage period and the close of 
     the enrollment period in which the beneficiary reenrolled.

       ``(iii) Periods not taken into account.--

       ``(I) In general.--For purposes of calculating any 12-month 
     period under clause (i), subject to subclause (II), there 
     shall not be taken into account months for which the eligible 
     beneficiary can demonstrate that the beneficiary was covered 
     under a group health plan, including a qualified retiree 
     prescription drug plan (as defined in section 1860I(e)(3)) 
     for which an incentive payment was paid under section 1860I, 
     that provides coverage of the cost of prescription drugs 
     whose actuarial value (as defined by the Secretary) to the 
     beneficiary equals or exceeds the actuarial value of the 
     benefits provided to an individual enrolled in the outpatient 
     prescription drug benefit program under this part.
       ``(II) Application.--This clause shall only apply with 
     respect to a coverage period the enrollment for which occurs 
     before the end of the 60-day period that begins on the first 
     day of the month which includes the date on which the plan 
     terminates, ceases to provide,

[[Page 11972]]

     or reduces the value of the prescription drug coverage under 
     such plan to below the value of the coverage provided under 
     the program under this part.

       ``(iv) Periods treated separately.--Any increase in an 
     eligible beneficiary's monthly premium under clause (i) with 
     respect to a particular continuous period of eligibility 
     shall not be applicable with respect to any other continuous 
     period of eligibility which the beneficiary may have.
       ``(v) Continuous period of eligibility.--

       ``(I) In general.--Subject to subclause (II), for purposes 
     of this subparagraph, an eligible beneficiary's `continuous 
     period of eligibility' is the period that begins with the 
     first day on which the beneficiary is eligible to enroll 
     under section 1836 and ends with the beneficiary's death.
       ``(II) Separate period.--Any period during all of which an 
     eligible beneficiary satisfied paragraph (1) of section 1836 
     and which terminated in or before the month preceding the 
     month in which the beneficiary attained age 65 shall be a 
     separate `continuous period of eligibility' with respect to 
     the beneficiary (and each such period which terminates shall 
     be deemed not to have existed for purposes of subsequently 
     applying this subparagraph).

       ``(B) Open enrollment period for current beneficiaries in 
     which late enrollment procedures do not apply.--The Secretary 
     shall establish an applicable period, which shall begin on 
     the date on which the Secretary first begins to accept 
     elections for enrollment under this part, during which any 
     eligible beneficiary may enroll under this part without the 
     application of the late enrollment procedures established 
     under subparagraph (A)(i).
       ``(3) Period of coverage.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an eligible beneficiary's coverage under the program under 
     this part shall be effective for the period provided in 
     section 1838, as if that section applied to the program under 
     this part.
       ``(B) Open enrollment.--An eligible beneficiary who enrolls 
     under the program under this part pursuant to paragraph 
     (2)(B) shall be entitled to the benefits under this part 
     beginning on the first day of the month following the month 
     in which such enrollment occurs.
       ``(C) Limitation.--Coverage under this part shall not begin 
     prior to January 1, 2003.
       ``(4) Part d coverage terminated by termination of coverage 
     under parts a and b.--
       ``(A) In general.--In addition to the causes of termination 
     specified in section 1838, the Secretary shall terminate an 
     individual's coverage under this part if the individual is no 
     longer enrolled in either part A or part B.
       ``(B) Effective date.--The termination described in 
     subparagraph (A) shall be effective on the effective date of 
     termination of coverage under part A or (if later) under part 
     B.
       ``(b) Enrollment With Eligible Entity.--
       ``(1) Process.--
       ``(A) In general.--The Secretary shall establish a process 
     through which an eligible beneficiary who is enrolled under 
     this part but not enrolled in a Medicare+Choice plan offered 
     by a Medicare+Choice organization shall make an annual 
     election to enroll with any eligible entity that has been 
     awarded a contract under this part and serves the geographic 
     area in which the beneficiary resides.
       ``(B) Rules.--In establishing the process under 
     subparagraph (A), the Secretary shall use rules similar to 
     the rules for enrollment and disenrollment with a 
     Medicare+Choice plan under section 1851 (including special 
     election periods under subsection (e)(4) of such section).
       ``(2) Medicare+choice enrollees.--An eligible beneficiary 
     who is enrolled under this part and enrolled in a 
     Medicare+Choice plan offered by a Medicare+Choice 
     organization shall receive coverage of covered outpatient 
     drugs under this part through such plan.
       ``(c) First Enrollment Period.--The processes developed 
     under subsections (a) and (b) shall ensure that eligible 
     beneficiaries are permitted to enroll under this part and 
     with an eligible entity prior to January 1, 2003, in order to 
     ensure that coverage under this part is effective as of such 
     date.


                ``providing information to beneficiaries

       ``Sec. 1860C. (a) Activities.--
       ``(1) In general.--The Secretary shall conduct activities 
     that are designed to broadly disseminate information to 
     eligible beneficiaries (and prospective eligible 
     beneficiaries) regarding the coverage provided under this 
     part.
       ``(2) Special rule for first enrollment under the 
     program.--To the extent practicable, the activities described 
     in paragraph (1) shall ensure that eligible beneficiaries are 
     provided with such information at least 30 days prior to the 
     first enrollment period described in section 1860B(c).
       ``(b) Requirements.--
       ``(1) In general.--The activities described in subsection 
     (a) shall--
       ``(A) be similar to the activities performed by the 
     Secretary under section 1851(d);
       ``(B) be coordinated with the activities performed by the 
     Secretary under such section and under section 1804; and
       ``(C) provide for the dissemination of information 
     comparing the eligible entities that are available to 
     eligible beneficiaries residing in an area under this part.
       ``(2) Comparative information.--The comparative information 
     described in paragraph (1)(B) shall include the following:
       ``(A) Benefits.--A comparison of the benefits provided by 
     each eligible entity, including a comparison of the pharmacy 
     networks used by each eligible entity and the formularies and 
     appeals processes implemented by each entity.
       ``(B) Quality and performance.--To the extent available, 
     the quality and performance of each eligible entity.
       ``(C) Beneficiary costs.--The cost-sharing required of 
     eligible beneficiaries enrolled in each eligible entity.
       ``(D) Consumer satisfaction surveys.--To the extent 
     available, the results of consumer satisfaction surveys 
     regarding each eligible entity.
       ``(E) Additional information.--Such additional information 
     as the Secretary may prescribe.
       ``(3) Information standards.--The Secretary shall develop 
     standards to ensure that the information provided to eligible 
     beneficiaries under this part is complete, accurate, and 
     uniform.
       ``(c) Use of Medicare Consumer Coalitions To Provide 
     Information.--
       ``(1) In general.--The Secretary may contract with Medicare 
     Consumer Coalitions to conduct the informational activities--
       ``(A) under this section;
       ``(B) under section 1851(d); and
       ``(C) under section 1804.
       ``(2) Selection of coalitions.--If the Secretary determines 
     the use of Medicare Consumer Coalitions to be appropriate, 
     the Secretary shall--
       ``(A) develop and disseminate, in such areas as the 
     Secretary determines appropriate, a request for proposals for 
     Medicare Consumer Coalitions to contract with the Secretary 
     in order to conduct any of the informational activities 
     described in paragraph (1); and
       ``(B) select a proposal of a Medicare Consumer Coalition to 
     conduct the informational activities in each such area, with 
     a preference for broad participation by organizations with 
     experience in providing information to beneficiaries under 
     this title.
       ``(3) Payment to medicare consumer coalitions.--The 
     Secretary shall make payments to Medicare Consumer Coalitions 
     contracting under this subsection in such amounts and in such 
     manner as the Secretary determines appropriate.
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary such sums as 
     may be necessary to contract with Medicare Consumer 
     Coalitions under this section.
       ``(5) Medicare consumer coalition defined.--In this 
     subsection, the term `Medicare Consumer Coalition' means an 
     entity that is a nonprofit organization operated under the 
     direction of a board of directors that is primarily composed 
     of beneficiaries under this title.


                               ``premiums

       ``Sec. 1860D. (a) Annual Establishment of Monthly Premium 
     Rates.--
       ``(1) In general.--The Secretary shall, during September of 
     each year (beginning in 2002), determine and promulgate a 
     monthly premium rate for the succeeding year in accordance 
     with the provisions of this subsection.
       ``(2) Actuarial determinations.--
       ``(A) Determination of annual benefit and administrative 
     costs.--The Secretary shall estimate annually for the 
     succeeding year the amount equal to the total of the benefits 
     and administrative costs that will be payable from the 
     Federal Supplementary Medical Insurance Trust Fund for 
     providing covered outpatient drugs in such calendar year with 
     respect to enrollees in the program under this part.
       ``(B) Determination of monthly premium rates.--
       ``(i) In general.--The Secretary shall determine the 
     monthly premium rate with respect to such enrollees for such 
     succeeding year, which shall be \1/12\ of the applicable 
     share of the amount determined under subparagraph (A), 
     divided by the total number of such enrollees, and rounded 
     (if such rate is not a multiple of 10 cents) to the nearest 
     multiple of 10 cents.
       ``(ii) Definition of applicable share.--For purposes of 
     clause (i), the term `applicable share' means--

       ``(I) one-half, in the case of premiums paid by an eligible 
     beneficiary enrolled in the program under this part; and
       ``(II) two-thirds, in the case of premiums paid for such a 
     beneficiary by an employer (as defined in section 
     1860I(e)(2)) that the beneficiary formerly worked for.

       ``(3) Publication of assumptions.--The Secretary shall 
     publish, together with the promulgation of the monthly 
     premium rates for the succeeding year, a statement setting 
     forth the actuarial assumptions and bases employed in 
     arriving at the amounts and rates determined under paragraphs 
     (1) and (2).
       ``(b) Collection of Premium.--The monthly premium 
     applicable to an eligible beneficiary under this part shall 
     be collected and credited to the Federal Supplementary 
     Medical Insurance Trust Fund in the same manner as the 
     monthly premium determined

[[Page 11973]]

     under section 1839 is collected and credited to such Trust 
     Fund under section 1840.


                             ``cost-sharing

       ``Sec. 1860E. (a) Deductible.--
       ``(1) In general.--Subject to paragraph (2), no payments 
     shall be made under this part on behalf of an eligible 
     beneficiary until the beneficiary has met a $250 deductible.
       ``(2) Waiver of deductible for generic drugs.--
       ``(A) In general.--An eligible entity may provide that 
     generic drugs are not subject to the deductible described in 
     paragraph (1) if the Secretary determines that the waiver of 
     the deductible--
       ``(i) is tied to the performance measures and other 
     incentives applicable to the entity pursuant to section 
     1860H(a); and
       ``(ii) will not result in an increase in the expenditures 
     made from the Federal Supplementary Medical Insurance Trust 
     Fund.
       ``(B) Credit for amounts paid.--If the deductible is waived 
     pursuant to subparagraph (A), any coinsurance paid by an 
     eligible beneficiary for the generic drug shall be credited 
     toward the annual deductible.
       ``(b) Coinsurance.--
       ``(1) Establishment.--
       ``(A) In general.--Subject to paragraph (2), if any covered 
     outpatient drug is provided to an eligible beneficiary in a 
     year after the beneficiary has met any deductible requirement 
     under subsection (a) for the year, the beneficiary shall be 
     responsible for making payments for the drug in an amount 
     equal to the applicable percentage of the cost of the drug.
       ``(B) Applicable percentage defined.--For purposes of 
     subparagraph (A), the `applicable percentage' means, with 
     respect to any covered outpatient drug provided to an 
     eligible beneficiary in a year--
       ``(i) 50 percent to the extent the out-of-pocket expenses 
     of the beneficiary for such drug, when added to the out-of-
     pocket expenses of the beneficiary for covered outpatient 
     drugs previously provided in the year, do not exceed $3,500;
       ``(ii) 25 percent to the extent such expenses, when so 
     added, exceed $3,500 but do not exceed $4,000; and
       ``(iii) 0 percent to the extent such expenses, when so 
     added, would exceed $4,000.
       ``(C) Out-of-pocket expenses defined.--For purposes of 
     subparagraph (B), the term `out-of-pocket expenses' means 
     expenses incurred as a result of the application of the 
     deductible under subsection (a) and the coinsurance required 
     under this subsection.
       ``(2) Reduction by eligible entity.--An eligible entity may 
     reduce the applicable percentage that an eligible beneficiary 
     is subject to under paragraph (1) if the Secretary determines 
     that such reduction--
       ``(A) is tied to the performance measures and other 
     incentives applicable to the entity pursuant to section 
     1860H(a); and
       ``(B) will not result in an increase in the expenditures 
     made from the Federal Supplementary Medical Insurance Trust 
     Fund.
       ``(c) Inflation Adjustment.--
       ``(1) In general.--In the case of any calendar year 
     beginning after 2004, each of the dollar amounts in 
     subsections (a)(1) and (b)(1)(B) shall be increased by an 
     amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the percentage (if any) by which the amount of 
     expenditures under this part in the preceding calendar year 
     exceeds the amount of such expenditures in 2003.
       ``(2) Rounding.--If any dollar amount after being increased 
     under paragraph (1) is not a multiple of $5, such dollar 
     amount shall be rounded to the nearest multiple of $5.


       ``selection of entities to provide outpatient drug benefit

       ``Sec. 1860F. (a) Establishment of Bidding Process.--
       ``(1) In general.--The Secretary shall establish procedures 
     under which the Secretary accepts bids submitted by eligible 
     entities and awards contracts to such entities in order to 
     administer and deliver the benefits provided under this part 
     to eligible beneficiaries in an area.
       ``(2) Competitive procedures.--Competitive procedures (as 
     defined in section 4(5) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 403(5))) shall be used to enter into 
     contracts under this part.
       ``(b) Area for Contracts.--
       ``(1) Regional basis.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     and subject to paragraph (2), the contract entered into 
     between the Secretary and an eligible entity shall require 
     the eligible entity to provide covered outpatient drugs on a 
     regional basis.
       ``(B) Partial regional basis.--
       ``(i) In general.--If determined appropriate by the 
     Secretary, the Secretary may permit the coverage described in 
     subparagraph (A) to be provided on a partial regional basis.
       ``(ii) Requirements.--If the Secretary permits coverage 
     pursuant to clause (i), the Secretary shall ensure that the 
     partial region in which coverage is provided is--

       ``(I) at least the size of the commercial service area of 
     the eligible entity for that area; and
       ``(II) not smaller than a State.

       ``(2) Determination.--
       ``(A) In general.--In determining coverage areas under this 
     part, the Secretary shall--
       ``(i) take into account the number of eligible 
     beneficiaries in an area in order to encourage participation 
     by eligible entities; and
       ``(ii) ensure that there are at least 10 different coverage 
     areas in the United States.
       ``(B) No administrative or judicial review.--The 
     determination of coverage areas under this part shall not be 
     subject to administrative or judicial review.
       ``(c) Submission of Bids.--
       ``(1) In general.--Each eligible entity desiring to provide 
     covered outpatient drugs under this part shall submit a bid 
     to the Secretary at such time, in such manner, and 
     accompanied by such information as the Secretary may 
     reasonably require.
       ``(2) Required information.--The bids described in 
     paragraph (1) shall include--
       ``(A) a proposal for the estimated prices of covered 
     outpatient drugs and the projected annual increases in such 
     prices, including differentials between formulary and 
     nonformulary prices, if applicable;
       ``(B) the amount that the entity will charge the Secretary 
     for administering and delivering the benefits under such 
     contract;
       ``(C) a statement regarding whether the entity will waive 
     the deductible for generic drugs pursuant to section 
     1860E(a)(2);
       ``(D) a statement regarding whether the entity will reduce 
     the applicable coinsurance percentage pursuant to section 
     1860E(b)(2) and if so, the amount of such reduction;
       ``(E) a detailed description of--
       ``(i) the risk corridors tied to performance measures and 
     other incentives that the entity will accept under the 
     contract; and
       ``(ii) how the entity will meet such measures and 
     incentives;
       ``(F) a detailed description of any ownership or shared 
     financial interests with other entities involved in the 
     delivery of the benefit as proposed;
       ``(G) a detailed description of the entity's estimated 
     marketing and advertising expenditures related to enrolling 
     and retaining eligible beneficiaries; and
       ``(H) such other information that the Secretary determines 
     is necessary in order to carry out this part, including 
     information relating to the bidding process under this part.
       ``(d) Access.--
       ``(1) In general.--The Secretary shall ensure that an 
     eligible entity--
       ``(A) complies with the access requirements described in 
     section 1860G(4)(A); and
       ``(B) makes available to each beneficiary covered under the 
     contract the full scope of the benefits required under this 
     part.
       ``(2) Areas not covered by contracts.--The Secretary shall 
     develop procedures for the provision of covered outpatient 
     drugs under this part to each eligible beneficiary that 
     resides in an area that is not covered by any contract under 
     this part.
       ``(3) Beneficiaries residing in different locations.--The 
     Secretary shall develop procedures to ensure that each 
     eligible beneficiary that resides in different areas in a 
     year is provided the benefits under this part throughout the 
     entire year.
       ``(e) Awarding of Contracts.--
       ``(1) Number of contracts.--The Secretary shall, consistent 
     with the requirements of this part and the goal of containing 
     costs under this title, award in a competitive manner at 
     least 2 contracts in an area, unless only 1 bidding entity 
     meets the minimum standards specified under this part and by 
     the Secretary.
       ``(2) Determination.--In determining which of the eligible 
     entities that submitted bids that meet the minimum standards 
     specified under this part and by the Secretary (including the 
     terms and conditions described in section 1860G) to award a 
     contract, the Secretary shall consider the comparative merits 
     of each bid, as determined on the basis of the past 
     performance of the entity and other relevant factors, with 
     respect to--
       ``(A) how well the entity meets such minimum standards;
       ``(B) the amount that the entity will charge the Secretary 
     for administering and delivering the benefits under the 
     contract;
       ``(C) the proposed prices of covered outpatient drugs and 
     annual increases in such prices;
       ``(D) the proposed risk corridors tied to performance 
     measures and other incentives that the entity will be subject 
     to under the contract;
       ``(E) the factors described in section 1860C(b)(2);
       ``(F) prior experience in administering a prescription drug 
     benefit program;
       ``(G) effectiveness in containing costs through pricing 
     incentives and utilization management; and
       ``(H) such other factors as the Secretary deems necessary 
     to evaluate the merits of each bid.
       ``(3) Exception to conflict of interest rules.--In awarding 
     contracts under this part, the Secretary may waive conflict 
     of interest laws generally applicable to Federal acquisitions 
     (subject to such safeguards as the Secretary may find 
     necessary to impose) in circumstances where the Secretary 
     finds that such waiver--
       ``(A) is not inconsistent with the--
       ``(i) purposes of the programs under this title; or

[[Page 11974]]

       ``(ii) best interests of enrolled individuals; and
       ``(B) permits a sufficient level of competition for such 
     contracts, promotes efficiency of benefits administration, or 
     otherwise serves the objectives of the program under this 
     part.
       ``(4) No administrative or judicial review.--The 
     determination of the Secretary to award or not award a 
     contract to an eligible entity under this part shall not be 
     subject to administrative or judicial review.
       ``(f) Approval of Marketing Material and Application 
     Forms.--The provisions of section 1851(h) shall apply to 
     marketing material and application forms under this part in 
     the same manner as such provisions apply to marketing 
     material and application forms under part C.
       ``(g) Duration of Contracts.--Each contract under this part 
     shall be for a term of at least 2 years but not more than 5 
     years, as determined by the Secretary.


                   ``conditions for awarding contract

       ``Sec. 1860G. The Secretary shall not award a contract to 
     an eligible entity under this part unless the Secretary finds 
     that the eligible entity agrees to comply with such terms and 
     conditions as the Secretary shall specify, including the 
     following:
       ``(1) Quality and financial standards.--The eligible entity 
     meets the quality and financial standards specified by the 
     Secretary.
       ``(2) Procedures to ensure proper utilization, compliance, 
     and avoidance of adverse drug reactions.--The eligible entity 
     has in place drug utilization review procedures to ensure--
       ``(A) the appropriate utilization by eligible beneficiaries 
     of the benefits to be provided under the contract; and
       ``(B) the avoidance of adverse drug reactions among 
     eligible beneficiaries enrolled with the entity, including 
     problems due to therapeutic duplication, drug-disease 
     contraindications, drug-drug interactions (including serious 
     interactions with nonprescription or over-the-counter drugs), 
     incorrect drug dosage or duration of drug treatment, drug-
     allergy interactions, and clinical abuse and misuse.
       ``(3) Cost-effective provision of benefits.--
       ``(A) In general.--In providing the benefits under a 
     contract under this part, an eligible entity may--
       ``(i) employ mechanisms to provide the benefits 
     economically, including the use of--

       ``(I) formularies (pursuant to subparagraph (B));
       ``(II) alternative methods of distribution; and
       ``(III) generic drug substitution;

       ``(ii) use mechanisms to encourage eligible beneficiaries 
     to select cost-effective drugs or less costly means of 
     receiving drugs, including the use of pharmacy incentive 
     programs, therapeutic interchange programs, and disease 
     management programs; and
       ``(iii) encourage pharmacy providers to--

       ``(I) inform beneficiaries of the differentials in price 
     between generic and nongeneric drug equivalents; and
       ``(II) provide medication therapy management programs in 
     order to enhance beneficiaries' understanding of the 
     appropriate use of medications and to reduce the risk of 
     potential adverse events associated with medications.

       ``(B) Formularies.--If an eligible entity uses a formulary 
     under this part, such formulary shall comply with standards 
     established by the Secretary in consultation with the 
     Medicare Pharmacy and Therapeutics Advisory Committee 
     established under section 1860M. Such standards shall require 
     that the eligible entity--
       ``(i) use a pharmacy and therapeutic committee (that meets 
     the standards for a pharmacy and therapeutic committee 
     established by the Secretary in consultation with the 
     Medicare Pharmacy and Therapeutics Advisory Committee 
     established under section 1860M) to develop and implement the 
     formulary;
       ``(ii) include in the formulary--

       ``(I) at least 1 drug from each therapeutic class (as 
     defined by the entity's pharmacy and therapeutic committee in 
     accordance with standards established by the Secretary in 
     consultation with the Medicare Pharmacy and Therapeutics 
     Advisory Committee established under section 1860M);
       ``(II) if there is more than 1 drug available in a 
     therapeutic class, at least 2 drugs from such class; and
       ``(III) if there is more than 2 drugs available in a 
     therapeutic class, at least 2 drugs from such class and a 
     generic drug substitute if available;

       ``(iii) develop procedures for the--

       ``(I) addition of new therapeutic classes to the formulary;
       ``(II) addition of new drugs to an existing therapeutic 
     class; and
       ``(III) modification of the formulary;

       ``(iv) provide for coverage of nonformulary drugs when 
     determined (pursuant to subparagraph (C) or (D)(i) of 
     paragraph (4)) to be medically necessary to prevent or slow 
     the deterioration of, or improve or maintain, the health of 
     an eligible beneficiary; and
       ``(v) disclose to current and prospective beneficiaries and 
     to providers in the service area the nature of the formulary 
     restrictions, including information regarding the drugs 
     included in the formulary, coinsurance, and any difference in 
     the cost-sharing for different types of drugs.
       ``(C) Construction.--Nothing in this paragraph shall be 
     construed as precluding an eligible entity from--
       ``(i) requiring cost-sharing for nonformulary drugs that is 
     higher than the cost-sharing established in section 1860E(b), 
     except that such entity shall provide for coverage of a 
     nonformulary drug at the same cost-sharing level as a drug 
     within the formulary if such nonformulary drug is determined 
     (pursuant to subparagraph (C) or (D)(i) of paragraph (4)) to 
     be medically necessary to prevent or slow the deterioration 
     of, or improve or maintain, the health of an eligible 
     beneficiary;
       ``(ii) educating prescribing providers, pharmacists, and 
     beneficiaries about the medical and cost benefits of 
     formulary drugs (including generic drugs); or
       ``(iii) requesting prescribing providers to consider a 
     formulary drug prior to dispensing of a nonformulary drug, as 
     long as such request does not unduly delay the provision of 
     the drug.
       ``(4) Patient protections.--
       ``(A) Access.--The eligible entity ensures that the covered 
     outpatient drugs are accessible and convenient to eligible 
     beneficiaries covered under the contract, including by 
     offering the services in the following manner:
       ``(i) Services during emergencies.--The offering of 
     services 24 hours a day and 7 days a week for emergencies.
       ``(ii) Contracts with retail pharmacies.--The offering of 
     services--

       ``(I) at a sufficient number (as determined by the 
     Secretary) of retail pharmacies;
       ``(II) to the extent feasible, at retail pharmacies located 
     throughout the eligible entity's service area to ensure 
     reasonable geographic access (as determined by the Secretary) 
     to such services; and
       ``(III) such that--

       ``(aa) the total charge for each covered outpatient drug 
     dispensed to an eligible beneficiary enrolled with the entity 
     does not exceed the negotiated price for the drug (as 
     reported to the Secretary pursuant to paragraph (6)(A)); and
       ``(bb) the retail pharmacy dispensing the drug does not 
     charge (or collect from) such beneficiary an amount that 
     exceeds the beneficiary's obligation (as determined in 
     accordance with the provisions of this part) of the 
     negotiated price.
       ``(B) Continuity of care.--
       ``(i) In general.--The eligible entity ensures that, in the 
     case of an eligible beneficiary who loses coverage under this 
     part with such entity under circumstances that would permit a 
     special election period (as established by the Secretary 
     under section 1860B(b)), the entity will continue to provide 
     coverage under this part to such beneficiary until the 
     beneficiary enrolls and receives such coverage with another 
     eligible entity under this part.
       ``(ii) Limited period.--In no event shall an eligible 
     entity be required to provide the extended coverage required 
     under clause (i) beyond the date which is 30 days after the 
     coverage with such entity would have terminated but for this 
     subparagraph.
       ``(C) Procedures regarding the determination of drugs that 
     are medically necessary.--The eligible entity has in place 
     procedures to determine if a drug is medically necessary to 
     prevent or slow the deterioration of, or improve or maintain, 
     the health of an eligible beneficiary. Such procedures shall 
     require that such determinations are based on professional 
     medical judgment, the medical condition of the beneficiary, 
     and other medical evidence.
       ``(D) Procedures regarding denials of care.--The eligible 
     entity has in place procedures to ensure--
       ``(i) a timely internal and external review and resolution 
     of denials of coverage (in whole or in part) and complaints 
     (including those regarding the use of formularies under 
     paragraph (3)) by eligible beneficiaries, or by providers, 
     pharmacists, and other individuals acting on behalf of each 
     such beneficiary (with the beneficiary's consent) in 
     accordance with requirements (as established by the 
     Secretary) that are comparable to such requirements for 
     Medicare+Choice organizations under part C; and
       ``(ii) that beneficiaries are provided with information 
     regarding the appeals procedures under this part at the time 
     of enrollment.
       ``(E) Procedures regarding patient confidentiality.--
     Insofar as an eligible entity maintains individually 
     identifiable medical records or other health information 
     regarding eligible beneficiaries under a contract entered 
     into under this part, the entity has in place procedures to--
       ``(i) safeguard the privacy of any individually 
     identifiable beneficiary information;
       ``(ii) maintain such records and information in a manner 
     that is accurate and timely;
       ``(iii) ensure timely access by such beneficiaries to such 
     records and information; and
       ``(iv) otherwise comply with applicable laws relating to 
     patient confidentiality.
       ``(F) Procedures regarding transfer of medical records.--
       ``(i) In general.--The eligible entity has in place 
     procedures for the timely transfer of

[[Page 11975]]

     records and information described in subparagraph (E) (with 
     respect to a beneficiary who loses coverage under this part 
     with the entity and enrolls with another entity under this 
     part) to such other entity.
       ``(ii) Patient confidentiality.--The procedures described 
     in clause (i) shall comply with the patient confidentiality 
     procedures described in subparagraph (E).
       ``(G) Procedures regarding medical errors.--The eligible 
     entity has in place procedures for working with the Secretary 
     to deter medical errors related to the provision of covered 
     outpatient drugs.
       ``(5) Procedures to control fraud, abuse, and waste.--The 
     eligible entity has in place procedures to control fraud, 
     abuse, and waste.
       ``(6) Reporting requirements.--
       ``(A) In general.--The eligible entity provides the 
     Secretary with reports containing information regarding the 
     following:
       ``(i) The prices that the eligible entity is paying for 
     covered outpatient drugs.
       ``(ii) The prices that eligible beneficiaries enrolled with 
     the entity will be charged for covered outpatient drugs.
       ``(iii) The administrative costs of providing such 
     benefits.
       ``(iv) Utilization of such benefits.
       ``(v) Marketing and advertising expenditures related to 
     enrolling and retaining eligible beneficiaries.
       ``(B) Timeframe for submitting reports.--
       ``(i) In general.--The eligible entity shall submit a 
     report described in subparagraph (A) to the Secretary within 
     3 months after the end of each 12-month period in which the 
     eligible entity has a contract under this part. Such report 
     shall contain information concerning the benefits provided 
     during such 12-month period.
       ``(ii) Last year of contract.--In the case of the last year 
     of a contract under this section, the Secretary may require 
     that a report described in subparagraph (A) be submitted 3 
     months prior to the end of the contract. Such report shall 
     contain information concerning the benefits provided between 
     the period covered by the most recent report under this 
     subparagraph and the date that a report is submitted under 
     this clause.
       ``(C) Confidentiality of information.--
       ``(i) In general.--Notwithstanding any other provision of 
     law and subject to clause (ii), information disclosed by an 
     eligible entity pursuant to subparagraph (A) is confidential 
     and shall only be used by the Secretary for the purposes of, 
     and to the extent necessary, to carry out this part.
       ``(ii) Utilization data.--Subject to patient 
     confidentiality laws, the Secretary shall make information 
     disclosed by an eligible entity pursuant to subparagraph 
     (A)(iv) (regarding utilization data) available for research 
     purposes. The Secretary may charge a reasonable fee for 
     making such information available.
       ``(7) Approval of marketing material and application 
     forms.--The eligible entity will comply with the requirements 
     described in section 1860F(f).
       ``(8) Records and audits.--The eligible entity maintains 
     adequate records related to the administration of the benefit 
     under this part and affords the Secretary access to such 
     records for auditing purposes.


                               ``payments

       ``Sec. 1860H. (a) Payments to Eligible Entities.--
       ``(1) Procedures.--
       ``(A) In general.--The Secretary shall establish procedures 
     for making payments to an eligible entity under a contract 
     entered into under this part for the administration and 
     delivery of the benefits under this part.
       ``(B) Entities only subject to limited risk.--Under the 
     procedures established under subparagraph (A), an eligible 
     entity shall only be at risk to the extent that the entity is 
     at risk under paragraph (2).
       ``(2) Risk corridors tied to performance measures and other 
     incentives.--
       ``(A) In general.--The procedures established under 
     paragraph (1) may include the use of--
       ``(i) risk corridors tied to performance measures that have 
     been agreed to between the eligible entity and the Secretary 
     under the contract; and
       ``(ii) any other incentives that the Secretary determines 
     appropriate.
       ``(B) Phase-in of risk corridors tied to performance 
     measures.--The Secretary may phase-in the use of risk 
     corridors tied to performance measures if the Secretary 
     determines such phase-in to be appropriate.
       ``(C) Payments subject to incentives.--If a contract under 
     this part includes the use of risk corridors tied to 
     performance measures or other incentives pursuant to 
     subparagraph (A), payments to eligible entities under such 
     contract shall be subject to such risk corridors tied to 
     performance measures and other incentives.
       ``(3) Risk adjustment.--To the extent that eligible 
     entities are at risk because of the risk corridors or other 
     incentives described in paragraph (2)(A), the procedures 
     established under paragraph (1) may include a methodology for 
     adjusting the payments made to such entities based on the 
     differences in actuarial risk of different enrollees being 
     served if the Secretary determines such adjustments to be 
     necessary and appropriate.
       ``(b) Secondary Payer Provisions.--The provisions of 
     section 1862(b) shall apply to the benefits provided under 
     this part.


``employer incentive program for employment-based retiree drug coverage

       ``Sec. 1860I. (a) Program Authority.--The Secretary is 
     authorized to develop and implement a program under this 
     section called the `Employer Incentive Program' that 
     encourages employers and other sponsors of employment-based 
     health care coverage to provide adequate prescription drug 
     benefits to retired individuals by subsidizing, in part, the 
     sponsor's cost of providing coverage under qualifying plans.
       ``(b) Sponsor Requirements.--In order to be eligible to 
     receive an incentive payment under this section with respect 
     to coverage of an individual under a qualified retiree 
     prescription drug plan (as defined in subsection (f)(3)), a 
     sponsor shall meet the following requirements:
       ``(1) Assurances.--The sponsor shall--
       ``(A) annually attest, and provide such assurances as the 
     Secretary may require, that the coverage offered by the 
     sponsor is a qualified retiree prescription drug plan, and 
     will remain such a plan for the duration of the sponsor's 
     participation in the program under this section; and
       ``(B) guarantee that it will give notice to the Secretary 
     and covered retirees--
       ``(i) at least 120 days before terminating its plan; and
       ``(ii) immediately upon determining that the actuarial 
     value of the prescription drug benefit under the plan falls 
     below the actuarial value of the outpatient prescription drug 
     benefit under this part.
       ``(2) Beneficiary information.--The sponsor shall report to 
     the Secretary, for each calendar quarter for which it seeks 
     an incentive payment under this section, the names and social 
     security numbers of all retirees (and their spouses and 
     dependents) covered under such plan during such quarter and 
     the dates (if less than the full quarter) during which each 
     such individual was covered.
       ``(3) Audits.--The sponsor and the employment-based retiree 
     health coverage plan seeking incentive payments under this 
     section shall agree to maintain, and to afford the Secretary 
     access to, such records as the Secretary may require for 
     purposes of audits and other oversight activities necessary 
     to ensure the adequacy of prescription drug coverage, the 
     accuracy of incentive payments made, and such other matters 
     as may be appropriate.
       ``(4) Other requirements.--The sponsor shall provide such 
     other information, and comply with such other requirements, 
     as the Secretary may find necessary to administer the program 
     under this section.
       ``(c) Incentive Payments.--
       ``(1) In general.--A sponsor that meets the requirements of 
     subsection (b) with respect to a quarter in a calendar year 
     shall be entitled to have payment made by the Secretary on a 
     quarterly basis (to the sponsor or, at the sponsor's 
     direction, to the appropriate employment-based health plan) 
     of an incentive payment, in the amount determined in 
     paragraph (2), for each retired individual (or spouse) who--
       ``(A) was covered under the sponsor's qualified retiree 
     prescription drug plan during such quarter; and
       ``(B) was eligible for but was not enrolled in the 
     outpatient prescription drug benefit program under this part.
       ``(2) Amount of incentive.--The payment under this section 
     with respect to each individual described in paragraph (1) 
     for a month shall be equal to \2/3\ of the monthly premium 
     amount payable by an eligible beneficiary enrolled under this 
     part, as set for the calendar year pursuant to section 
     1860D(a)(2).
       ``(3) Payment date.--The incentive under this section with 
     respect to a calendar quarter shall be payable as of the end 
     of the next succeeding calendar quarter.
       ``(d) Civil Money Penalties.--A sponsor, health plan, or 
     other entity that the Secretary determines has, directly or 
     through its agent, provided information in connection with a 
     request for an incentive payment under this section that the 
     entity knew or should have known to be false shall be subject 
     to a civil monetary penalty in an amount up to 3 times the 
     total incentive amounts under subsection (c) that were paid 
     (or would have been payable) on the basis of such 
     information.
       ``(e) Definitions.--In this section:
       ``(1) Employment-based retiree health coverage.--The term 
     `employment-based retiree health coverage' means health 
     insurance or other coverage of health care costs for retired 
     individuals (or for such individuals and their spouses and 
     dependents) based on their status as former employees or 
     labor union members.
       ``(2) Employer.--The term `employer' has the meaning given 
     the term in section 3(5) of the Employee Retirement Income 
     Security Act of 1974 (except that such term shall include 
     only employers of 2 or more employees).
       ``(3) Qualified retiree prescription drug plan.--The term 
     `qualified retiree prescription drug plan' means health 
     insurance coverage included in employment-based retiree 
     health coverage that--

[[Page 11976]]

       ``(A) provides coverage of the cost of prescription drugs 
     whose actuarial value (as defined by the Secretary) to each 
     retired beneficiary equals or exceeds the actuarial value of 
     the benefits provided to an individual enrolled in the 
     outpatient prescription drug benefit program under this part; 
     and
       ``(B) does not deny, limit, or condition the coverage or 
     provision of prescription drug benefits for retired 
     individuals based on age or any health status-related factor 
     described in section 2702(a)(1) of the Public Health Service 
     Act.
       ``(4) Sponsor.--The term `sponsor' has the meaning given 
     the term `plan sponsor' in section 3(16)(B) of the Employer 
     Retirement Income Security Act of 1974.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated from time to time, out of any 
     moneys in the Treasury not otherwise appropriated, such sums 
     as may be necessary to carry out the program under this 
     section.


                            ``Appropriations

       ``Sec. 1860J. There are authorized to be appropriated from 
     time to time, out of any moneys in the Treasury not otherwise 
     appropriated, to the Federal Supplementary Medical Insurance 
     Trust Fund established under section 1841, an amount equal to 
     the amount by which the benefits and administrative costs of 
     providing the benefits under this part exceed the premiums 
     collected under section 1860D.

    ``Subpart 2--Medicare Pharmacy and Therapeutics (P&T) Advisory 
                               Committee


     ``medicare pharmacy and therapeutics (p&t) advisory committee

       ``Sec. 1860M. (a) Establishment of Committee.--There is 
     established a Medicare Pharmacy and Therapeutics Advisory 
     Committee (in this section referred to as the `Committee').
       ``(b) Functions of Committee.--On and after October 1, 
     2001, the Committee shall advise the Secretary on policies 
     related to--
       ``(1) the development of guidelines for the implementation 
     and administration of the outpatient prescription drug 
     benefit program under this part; and
       ``(2) the development of--
       ``(A) standards for a pharmacy and therapeutics committee 
     required of eligible entities under section 1860G(3)(B)(i);
       ``(B) procedures required of eligible entities under 
     subparagraphs (C) and (D) of section 1860G(4) for determining 
     if a drug is medically necessary to prevent or slow the 
     deterioration of, or improve or maintain, the health of an 
     eligible beneficiary;
       ``(C) standards for--
       ``(i) defining therapeutic classes;
       ``(ii) adding new therapeutic classes to a formulary;
       ``(iii) adding new drugs to a therapeutic class within a 
     formulary; and
       ``(iv) when and how often a formulary should be modified;
       ``(D) procedures to evaluate the bids submitted by eligible 
     entities under this part; and
       ``(E) procedures to ensure that eligible entities with a 
     contract under this part are in compliance with the 
     requirements under this part.
       ``(c) Structure and Membership of the Committee.--
       ``(1) Structure.--The Committee shall be composed of 19 
     members who shall be appointed by the Secretary.
       ``(2) Membership.--
       ``(A) In general.--The members of the Committee shall be 
     chosen on the basis of their integrity, impartiality, and 
     good judgment, and shall be individuals who are, by reason of 
     their education, experience, and attainments, exceptionally 
     qualified to perform the duties of members of the Committee.
       ``(B) Specific members.--Of the members appointed under 
     paragraph (1)--
       ``(i) eleven shall be chosen to represent physicians;
       ``(ii) four shall be chosen to represent pharmacists;
       ``(iii) one shall be chosen to represent the Health Care 
     Financing Administration;
       ``(iv) two shall be chosen to represent actuaries and 
     pharmacoeconomists; and
       ``(v) one shall be chosen to represent emerging drug 
     technologies.
       ``(d) Terms of Appointment.--Each member of the Committee 
     shall serve for a term determined appropriate by the 
     Secretary. The terms of service of the members initially 
     appointed shall begin on January 1, 2001.
       ``(e) Chairman.--The Secretary shall designate a member of 
     the Committee as Chairman. The term as Chairman shall be for 
     a 1-year period.
       ``(f) Compensation and Travel Expenses.--
       ``(1) Compensation of members.--Each member of the 
     Committee who is not an officer or employee of the Federal 
     Government shall be compensated at a rate equal to the daily 
     equivalent of the annual rate of basic pay prescribed for 
     level IV of the Executive Schedule under section 5315 of 
     title 5, United States Code, for each day (including travel 
     time) during which such member is engaged in the performance 
     of the duties of the Committee. All members of the Committee 
     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 Committee 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 Committee.
       ``(g) Operation of the Committee.--
       ``(1) Meetings.--The Committee shall meet at the call of 
     the Chairman (after consultation with the other members of 
     the Committee) not less often than quarterly to consider a 
     specific agenda of issues, as determined by the Chairman 
     after such consultation.
       ``(2) Quorum.--Ten members of the Committee shall 
     constitute a quorum for purposes of conducting business.
       ``(h) Federal Advisory Committee Act.--Section 14 of the 
     Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the Committee.
       ``(i) Transfer of Personnel, Resources, and Assets.--For 
     purposes of carrying out its duties, the Secretary and the 
     Committee may provide for the transfer to the Committee of 
     such civil service personnel in the employ of the Department 
     of Health and Human Services, and such resources and assets 
     of the Department used in carrying out this title, as the 
     Committee requires.
       ``(j) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out the purposes of this section.''.
       (b) Exclusions From Coverage.--
       (1) Application to part d.--Section 1862(a) of the Social 
     Security Act (42 U.S.C. 1395y(a)) is amended in the matter 
     preceding paragraph (1) by striking ``part A or part B'' and 
     inserting ``part A, B, or D''.
       (2) Prescription drugs not excluded from coverage if 
     reasonable and necessary.--Section 1862(a)(1) of the Social 
     Security Act (42 U.S.C. 1395y(a)(1)) is amended--
       (A) in subparagraph (H), by striking ``and'' at the end;
       (B) in subparagraph (I), by striking the semicolon at the 
     end and inserting ``, and''; and
       (C) by adding at the end the following new subparagraph:
       ``(J) in the case of prescription drugs covered under part 
     D, which are not reasonable and necessary to prevent or slow 
     the deterioration of, or improve or maintain, the health of 
     eligible beneficiaries;''.
       (c) Conforming References to Previous Part D.--
       (1) In general.--Any reference in law (in effect before the 
     date of enactment of this Act) to part D of title XVIII of 
     the Social Security Act is deemed a reference to part E of 
     such title (as in effect after such date).
       (2) Secretarial submission of legislative proposal.--Not 
     later than 6 months after the date of enactment of this Act, 
     the Secretary of Health and Human Services shall submit to 
     the appropriate committees of Congress a legislative proposal 
     providing for such technical and conforming amendments in the 
     law as are required by the provisions of this title.

     SEC. __03. PART D BENEFITS UNDER MEDICARE+CHOICE PLANS.

       (a) Eligibility, Election, and Enrollment.--Section 1851 of 
     the Social Security Act (42 U.S.C. 1395w-21) is amended--
       (1) in subsection (a)(1)(A), by striking ``parts A and B'' 
     and inserting ``parts A, B, and D''; and
       (2) in subsection (i)(1), by striking ``parts A and B'' and 
     inserting ``parts A, B, and D''.
       (b) Voluntary Beneficiary Enrollment for Drug Coverage.--
     Section 1852(a)(1)(A) of such Act (42 U.S.C. 1395w-
     22(a)(1)(A)) is amended by inserting ``(and under part D to 
     individuals also enrolled under that part)'' after ``parts A 
     and B''.
       (c) Access to Services.--Section 1852(d)(1) of such Act (42 
     U.S.C. 1395w-22(d)(1)) is amended--
       (1) in subparagraph (D), by striking ``and'' at the end;
       (2) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(F) in the case of covered outpatient drugs provided to 
     individuals enrolled under part D (as defined in section 
     1860(1)), the organization complies with the access 
     requirements applicable under part D.''.
       (d) Payments to Organizations.--Section 1853(a)(1)(A) of 
     such Act (42 U.S.C. 1395w-23(a)(1)(A)) is amended--
       (1) by inserting ``determined separately for the benefits 
     under parts A and B and under part D (for individuals 
     enrolled under that part)'' after ``as calculated under 
     subsection (c)'';
       (2) by striking ``that area, adjusted for such risk 
     factors'' and inserting ``that area. In the case of payment 
     for the benefits under parts A and B, such payment shall be 
     adjusted for such risk factors as''; and
       (3) by inserting before the last sentence the following: 
     ``In the case of the payments for the benefits under part D, 
     such payment shall initially be adjusted for the risk factors 
     of each enrollee as the Secretary determines

[[Page 11977]]

     to be feasible and appropriate to ensure actuarial 
     equivalence. By 2006, the adjustments to payments for 
     benefits under part D shall be for the same risk factors used 
     to adjust payments for the benefits under parts A and B.''.
       (e) Calculation of Annual Medicare+Choice Capitation 
     Rates.--Section 1853(c) of such Act (42 U.S.C. 1395w-23(c)) 
     is amended--
       (1) in paragraph (1), in the matter preceding subparagraph 
     (A), by inserting ``for benefits under parts A and B'' after 
     ``capitation rate''; and
       (2) by adding at the end the following new paragraph:
       ``(8) Payment for part d benefits.--The Secretary shall 
     determine a capitation rate for part D benefits (for 
     individuals enrolled under such part) as follows:
       ``(A) Drugs dispensed in 2003.--In the case of prescription 
     drugs dispensed in 2003, the capitation rate shall be based 
     on the projected national per capita costs for prescription 
     drug benefits under part D and associated claims processing 
     costs for beneficiaries enrolled under part D and not 
     enrolled with a Medicare+Choice organization under this part.
       ``(B) Drugs dispensed in subsequent years.--In the case of 
     prescription drugs dispensed in a subsequent year, the 
     capitation rate shall be equal to the capitation rate for the 
     preceding year increased by the Secretary's estimate of the 
     projected per capita rate of growth in expenditures under 
     this title for an individual enrolled under part D for such 
     subsequent year.''.
       (f) Limitation on Enrollee Liability.--Section 1854(e) of 
     such Act (42 U.S.C. 1395w-24(e)) is amended by adding at the 
     end the following new paragraph:
       ``(5) Special rule for part d benefits.--With respect to 
     outpatient prescription drug benefits under part D, a 
     Medicare+Choice organization may not require that an enrollee 
     pay a deductible or a coinsurance percentage that exceeds the 
     deductible or coinsurance percentage applicable for such 
     benefits for an eligible beneficiary under part D.''.
       (g) Requirement for Additional Benefits.--Section 
     1854(f)(1) of such Act (42 U.S.C. 1395w-24(f)(1)) is amended 
     by adding at the end the following new sentence: ``Such 
     determination shall be made separately for the benefits under 
     parts A and B and for prescription drug benefits under part 
     D.''.
       (h) Effective Date.--The amendments made by this section 
     shall apply to items and services provided under a 
     Medicare+Choice plan on or after January 1, 2003.

     SEC. __04. EXCLUSION OF PART D COSTS FROM DETERMINATION OF 
                   PART B MONTHLY PREMIUM.

       Section 1839(g) of the Social Security Act (42 U.S.C. 
     1395r(g)) is amended--
       (1) by striking ``attributable to the application of 
     section'' and inserting ``attributable to--
       ``(1) the application of section'';
       (2) by striking the period and inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(2) the program under part D providing payment for 
     covered outpatient drugs (including costs associated with 
     making payments to employers and other sponsors of 
     employment-based health care coverage under the Employer 
     Incentive Program under section 1860I).''.

     SEC. __05. REPORTING REQUIREMENTS FOR SECRETARY OF THE 
                   TREASURY REGARDING INCOME-RELATED PART D 
                   PREMIUM.

       (a) In General.--Subsection (l) of section 6103 of the 
     Internal Revenue Code of 1986 (relating to disclosure of 
     returns and return information for purposes other than tax 
     administration) is amended by adding at the end the following 
     new paragraph:
       ``(18) Disclosure of return information to carry out 
     income-related reduction in medicare part d premium.--
       ``(A) In general.--The Secretary may, upon written request 
     from the Secretary of Health and Human Services, disclose to 
     officers and employees of the Health Care Financing 
     Administration return information with respect to a taxpayer 
     who is required to pay a monthly premium under part D of the 
     Social Security Act. Such return information shall be limited 
     to--
       ``(i) taxpayer identity information with respect to such 
     taxpayer,
       ``(ii) the filing status of such taxpayer,
       ``(iii) the adjusted gross income of such taxpayer,
       ``(iv) the amounts excluded from such taxpayer's gross 
     income under sections 135 and 911,
       ``(v) the interest received or accrued during the taxable 
     year which is exempt from the tax imposed by chapter 1 to the 
     extent such information is available, and
       ``(vi) the amounts excluded from such taxpayer's gross 
     income under sections 931 and 933 to the extent such 
     information is available.
       ``(B) Restriction on use of disclosed information.--Return 
     information disclosed under subparagraph (A) may be used by 
     officers and employees of the Health Care Financing 
     Administration only for the purposes of, and to the extent 
     necessary in, establishing the appropriate monthly premium 
     under part D of the Social Security Act.''.
       (b) Conforming Amendment.--Paragraphs (3)(A) and (4) of 
     section 6103(p) of such Code are each amended by striking 
     ``or (17)'' each place it appears and inserting ``(17), or 
     (18)''.

     SEC. __06. ADDITIONAL ASSISTANCE FOR LOW-INCOME 
                   BENEFICIARIES.

       (a) Inclusion in Medicare Cost-Sharing.--Section 1905(p)(3) 
     of the Social Security Act (42 U.S.C. 1396d(p)(3)) is 
     amended--
       (1) in subparagraph (A)--
       (A) in clause (i), by striking ``and'' at the end;
       (B) in clause (ii), by inserting ``and'' at the end; and
       (C) by adding at the end the following new clause:
       ``(iii) premiums under section 1860D.'';
       (2) in subparagraph (B), by striking ``section 1813'' and 
     inserting ``sections 1813 and 1860E(b)''; and
       (3) in subparagraph (C), by striking ``section 1813 and 
     section 1833(b)'' and inserting ``sections 1813, 1833(b), and 
     1860E(a)''.
       (b) Expansion of Medical Assistance.--Section 
     1902(a)(10)(E) of the Social Security Act (42 U.S.C. 
     1396a(a)(10)(E)) is amended--
       (1) in clause (iii)--
       (A) by striking ``section 1905(p)(3)(A)(ii)'' and inserting 
     ``clauses (ii) and (iii) of section 1905(p)(3)(A), for the 
     coinsurance described in section 1860E(b), and for the 
     deductible described in section 1860E(a)''; and
       (B) by striking ``and'' at the end;
       (2) by redesignating clause (iv) as clause (vi); and
       (3) by inserting after clause (iii) the following new 
     clauses:
       ``(iv) for making medical assistance available for medicare 
     cost-sharing described in section 1905(p)(3)(A)(iii), for the 
     coinsurance described in section 1860E(b), and for the 
     deductible described in section 1860E(a) for individuals who 
     would be qualified medicare beneficiaries described in 
     section 1905(p)(1) but for the fact that their income exceeds 
     120 percent but does not exceed 135 percent of such official 
     poverty line for a family of the size involved;
       ``(v) for making medical assistance available for medicare 
     cost-sharing described in section 1905(p)(3)(A)(iii) on a 
     linear sliding scale based on the income of such individuals 
     for individuals who would be qualified medicare beneficiaries 
     described in section 1905(p)(1) but for the fact that their 
     income exceeds 135 percent but does not exceed 150 percent of 
     such official poverty line for a family of the size involved; 
     and''.
       (c) Nonapplicability of Payment Differential Requirements 
     to Medicare Part D Cost-Sharing.--Section 1902(n)(2) of the 
     Social Security Act (42 U.S.C. 1396a(n)(2)) is amended by 
     adding at the end the following new sentence: ``The preceding 
     sentence shall not apply to coinsurance described in section 
     1860E(b) or deductibles described in section 1860E(a).''.
       (d) 100 Percent Federal Medical Assistance Percentage.--The 
     first sentence of section 1905(b) of the Social Security Act 
     (42 U.S.C. 1396d(b)) is amended--
       (1) by striking ``and'' before ``(3)''; and
       (2) by inserting before the period at the end the 
     following: ``, and (4) the Federal medical assistance 
     percentage shall be 100 percent with respect to medical 
     assistance provided under clauses (iv) and (v) of section 
     1902(a)(10)(E)''.
       (e) Treatment of Territories.--Section 1108(g) of such Act 
     (42 U.S.C. 1308(g)) is amended by adding at the end the 
     following new paragraph:
       ``(3) Notwithstanding the preceding provisions of this 
     subsection, with respect to fiscal year 2003 and any fiscal 
     year thereafter, the amount otherwise determined under this 
     subsection (and subsection (f)) for the fiscal year for a 
     Commonwealth or territory shall be increased by the ratio (as 
     estimated by the Secretary) of--
       ``(A) the aggregate amount of payments made to the 50 
     States and the District of Columbia for the fiscal year under 
     title XIX that are attributable to making medical assistance 
     available for individuals described in clauses (i), (iii), 
     (iv), and (v) of section 1902(a)(10)(E) for payment of 
     medicare cost-sharing that consists of premiums under section 
     1860D, coinsurance described in section 1860E(b), or 
     deductibles described in section 1860E(a); to
       ``(B) the aggregate amount of total payments made to such 
     States and District for the fiscal year under such title.''.
       (f) Conforming Amendments.--Section 1933 of the Social 
     Security Act (42 U.S.C. 1396u-3) is amended--
       (1) in subsection (a), by striking ``section 
     1902(a)(10)(E)(iv)'' and inserting ``section 
     1902(a)(10)(E)(vi)'';
       (2) in subsection (c)(2)(A)--
       (A) in clause (i), by striking ``section 
     1902(a)(10)(E)(iv)(I)'' and inserting ``section 
     1902(a)(10)(E)(vi)(I)''; and
       (B) in clause (ii), by striking ``section 
     1902(a)(10)(E)(iv)(II)'' and inserting ``section 
     1902(a)(10)(E)(vi)(II)'';
       (3) in subsection (d), by striking ``section 
     1902(a)(10)(E)(iv)'' and inserting ``section 
     1902(a)(10)(E)(vi)''; and
       (4) in subsection (e), by striking ``section 
     1902(a)(10)(E)(iv)'' and inserting ``section 
     1902(a)(10)(E)(vi)''.

[[Page 11978]]

       (g) Effective Date.--The amendments made by this section 
     shall apply for medical assistance provided under section 
     1902(a)(10)(E) of the Social Security Act (42 U.S.C. 
     1396a(a)(10)(E)) on and after January 1, 2003.

     SEC. __07. MEDIGAP REVISIONS.

       Section 1882 of the Social Security Act (42 U.S.C. 1395ss) 
     is amended by adding at the end the following new subsection:
       ``(v) Modernized Benefit Packages for Medicare Supplemental 
     Policies.--
       ``(1) Promulgation of model regulation.--
       ``(A) NAIC model regulation.--If, within 9 months after the 
     date of enactment of the Medicare Outpatient Drug Act of 
     2000, the National Association of Insurance Commissioners (in 
     this subsection referred to as the `NAIC') changes the 1991 
     NAIC Model Regulation (described in subsection (p)) to revise 
     the benefit packages classified as `H', `I', and `J' under 
     the standards established by subsection (p)(2) (including the 
     benefit package classified as `J' with a high deductible 
     feature, as described in subsection (p)(11)) so that--
       ``(i) the coverage for outpatient prescription drugs 
     available under such benefit packages is replaced with 
     coverage for outpatient prescription drugs that compliments 
     but does not duplicate the benefits for outpatient 
     prescription drugs that beneficiaries are otherwise entitled 
     to under this title;
       ``(ii) the revised benefit packages provide a range of 
     coverage options for outpatient prescription drugs for 
     beneficiaries, but do not provide coverage for--

       ``(I) the deductible under section 1860E(a); or
       ``(II) more than 90 percent of the coinsurance applicable 
     to an individual under section 1860E(b);

       ``(iii) uniform language and definitions are used with 
     respect to such revised benefits;
       ``(iv) uniform format is used in the policy with respect to 
     such revised benefits; and
       ``(v) such revised standards meet any additional 
     requirements imposed by the Medicare Outpatient Drug Act of 
     2000;
     subsection (g)(2)(A) shall be applied in each State, 
     effective for policies issued to policy holders on and after 
     January 1, 2003, as if the reference to the Model Regulation 
     adopted on June 6, 1979, were a reference to the 1991 NAIC 
     Model Regulation as changed under this subparagraph (such 
     changed regulation referred to in this section as the `2003 
     NAIC Model Regulation').
       ``(B) Regulation by the secretary.--If the NAIC does not 
     make the changes in the 1991 NAIC Model Regulation within the 
     9-month period specified in subparagraph (A), the Secretary 
     shall promulgate, not later than 9 months after the end of 
     such period, a regulation and subsection (g)(2)(A) shall be 
     applied in each State, effective for policies issued to 
     policy holders on and after January 1, 2003, as if the 
     reference to the Model Regulation adopted on June 6, 1979, 
     were a reference to the 1991 NAIC Model Regulation as changed 
     by the Secretary under this subparagraph (such changed 
     regulation referred to in this section as the `2003 Federal 
     Regulation').
       ``(C) Consultation with working group.--In promulgating 
     standards under this paragraph, the NAIC or Secretary shall 
     consult with a working group similar to the working group 
     described in subsection (p)(1)(D).
       ``(D) Modification of standards if medicare benefits 
     change.--If benefits (including deductibles and coinsurance) 
     under part D of this title are changed and the Secretary 
     determines, in consultation with the NAIC, that changes in 
     the 2003 NAIC Model Regulation or 2003 Federal Regulation are 
     needed to reflect such changes, the preceding provisions of 
     this paragraph shall apply to the modification of standards 
     previously established in the same manner as they applied to 
     the original establishment of such standards.
       ``(2) Construction of benefits in other medicare 
     supplemental policies.--Nothing in the benefit packages 
     classified as `A' through `G' under the standards established 
     by subsection (p)(2) (including the benefit package 
     classified as `F' with a high deductible feature, as 
     described in subsection (p)(11)) shall be construed as 
     providing coverage for benefits for which payment may be made 
     under part D.
       ``(3) Application of provisions and conforming 
     references.--
       ``(A) Application of provisions.--The provisions of 
     paragraphs (4) through (10) of subsection (p) shall apply 
     under this section, except that--
       ``(i) any reference to the model regulation applicable 
     under that subsection shall be deemed to be a reference to 
     the applicable 2003 NAIC Model Regulation or 2003 Federal 
     Regulation; and
       ``(ii) any reference to a date under such paragraphs of 
     subsection (p) shall be deemed to be a reference to the 
     appropriate date under this subsection.
       ``(B) Other references.--Any reference to a provision of 
     subsection (p) or a date applicable under such subsection 
     shall also be considered to be a reference to the appropriate 
     provision or date under this subsection.''.

     SEC. __08. HHS STUDIES AND REPORT TO CONGRESS.

       (a) Studies.--The Secretary of Health and Human Services 
     shall conduct a study to determine the feasibility and 
     advisability of--
       (1) establishing a uniform format for pharmacy benefit 
     cards provided to beneficiaries by eligible entities under 
     the outpatient prescription drug benefit program under part D 
     of title XVIII of the Social Security Act (as added by 
     section __02); and
       (2) developing systems to electronically transfer 
     prescriptions under such program from the prescriber to the 
     pharmacist.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary of Health and Human 
     Services shall submit to Congress a report on the results of 
     the studies conducted under subsection (a), together with any 
     recommendations for legislation that the Secretary determines 
     to be appropriate as a result of such studies.

     SEC. __09. APPROPRIATIONS.

       In addition to amounts otherwise appropriated to the 
     Secretary of Health and Human Services, there are authorized 
     to be appropriated to the Secretary for fiscal year 2001 and 
     each subsequent fiscal year such sums as may be necessary to 
     administer the outpatient prescription drug benefit program 
     under part D of title XVIII of the Social Security Act (as 
     added by section __02).
                                 ______
                                 

                        REID AMENDMENT NO. 3599

  (Ordered to lie on the table.)
  Mr. REID submitted an amendment intended to be proposed by him to the 
bill, H.R. 4577, supra; as follows:

       At the appropriate place, insert the following:
       Sec.   . Section 448 of the Public Health Service Act (42 
     U.S.C. 285g) is amended by inserting ``gynecologic health,'' 
     after ``with respect to''.
                                 ______
                                 

                        LOTT AMENDMENT NO. 3600

  Mr. LOTT proposed an amendment to the instructions to the motion to 
commit the bill, H.R. 4577, supra; as follows:

       In lieu of the amendment insert:
       None of the funds made available in this Act may be used by 
     the Occupational Safety and Health Administration to 
     promulgate, issue, implement, administer, any proposed, 
     temporary, or final standard on ergonomic protection.
                                 ______
                                 

                        LOTT AMENDMENT NO. 3601

  Mr. LOTT proposed an amendment to amendment No. 3600 proposed by Mr. 
Lott to the instructions to the motion to commit the bill, H.R. 4577, 
supra; as follows:

       Strike all after the first word, and insert the following:
     ``of the funds made available in this Act may be used by the 
     Occupational Safety and Health Administration to promulgate, 
     issue, implement, administer, or enforce any proposed, 
     temporary, or final standard on ergonomic protection.
       ``This section shall take effect October 4, 2000.''
                                 ______
                                 

                  BOND (AND OTHERS) AMENDMENT NO. 3602

  (Ordered to lie on the table.)
  Mr. BOND (for himself, Mr. Hollings, Mr. Cochran, Mr. Daschle, Mr. 
Hutchinson, Mr. Kennedy, Mr. DeWine, Mrs. Lincoln, Mr. Abraham, Mr. 
Akaka, Mr. Ashcroft, Mr. Baucus, Mr. Bingaman, Mrs. Boxer, Mr. Breaux, 
Mr. Bryan, Mr. Burns, Mr. Campbell, Mr. L. Chafee, Mr. Cleland, Mrs. 
Collins, Mr. Craig, Mr. Crapo, Mr. Dodd, Mr. Dorgan, Mr. Durbin, Mr. 
Edwards, Mr. Enzi, Mr. Feingold, Mrs. Feinstein, Mr. Frist, Mr. Grams, 
Mr. Inouye, Mr. Jeffords, Mr. Johnson, Mr. Kerry, Mr. Kohl, Ms. 
Landrieu, Mr. Leahy, Mr. Levin, Mr. Lugar, Mr. Murkowski, Mrs. Murray, 
Mr. Robb, Mr. Rockefeller, Mr. Santorum, Mr. Smith of Oregon, Ms. 
Snowe, Mr. Warner, Mr. Welstone, Mr. Wyden, Mr. Schumer, Mr. 
Lautenberg, Mr. Bayh, Mr. Grassley, Mr. Sarbanes, Mr. Roth, and Mr. 
Hatch) submitted an amendment intended to be proposed by them to the 
bill, H.R. 4577, supra; as follows:
       On page 23, line 23, strike ``4,522,424,000'' and replace 
     with ``4,572,424,000''.
       On page 92, between lines 4 and 5, insert the following:
       Sec.  . 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 Human Services, and the Department of Education 
     Shall be reduced on a pro rata basis by $50,000,000.
                                 ______
                                 

               SMITH OF NEW HAMPSHIRE AMENDMENT NO. 3603

  (Ordered to lie on the table.)
  Mr. SMITH of New Hampshire submitted an amendment intended to be 
proposed by him to the bill, H.R. 4577, supra; as follows:


[[Page 11979]]

       At the appropriate place add the following: ``None of the 
     fund appropriated under this Act shall be expended by the 
     National Institutes of Health on a contract for the 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 
     (AAALAC) and has not been charged multiple times with 
     egregious violations of the Animal Welfare Act.
                                 ______
                                 

                       MURRAY AMENDMENT NO. 3604

  (Ordered to lie on the table.)
  Mrs. MURRAY submitted an amendment intended to be proposed by her to 
the bill, H.R. 4577, supra; as follows:

       On page 59, line 12, before the period insert the 
     following: ``: Provided further, That $1,400,000,000 of such 
     $2,700,000,000 shall be available, notwithstanding any other 
     provision of law, to award funds and carry out activities in 
     the same manner as funds were awarded and activities were 
     carried out under section 310 of the Department of Education 
     Appropriations Act, 2000: Provided further, That an 
     additional $350,000,000 is appropriated to award funds and 
     carry out activities in the same such manner''.
                                 ______
                                 

                       KERREY AMENDMENT NO. 3605

  (Ordered to lie on the table.)
  Mr. KERREY submitted an amendment intended to be proposed by him to 
the bill, H.R. 4577, supra; as follows:

       At the end of title III, insert the following:

     SEC. ___. WEB-BASED EDUCATION COMMISSION.

       There are authorized to be appropriated and are 
     appropriated $250,000 to carry out the Web-Based Education 
     Commission Act. Notwithstanding any other provision of this 
     Act, the amount of funds provided to each Federal agency that 
     receives appropriations under this Act shall be reduced by a 
     uniform percentage necessary to achieve an aggregate 
     reduction of $250,000 in funds provided to all such agencies 
     under this Act. Each head of a Federal agency that is subject 
     to a reduction under this section shall ensure that the 
     reduction in funding to the agency resulting from this 
     section is offset by a reduction in the administrative 
     expenditures of the agency.
                                 ______
                                 

                    DURBIN AMENDMENTS NOS. 3606-3607

  (Ordered to lie on the table.)
  Mr. DURBIN submitted two amendments intended to be proposed by him to 
the bill, H.R. 4577, supra; as follows:

                           Amendment No. 3606

       On page 54, between lines 10 and 11, insert the following:
       Sec. __. (a) Children's Asthma Programs.--In addition to 
     amounts appropriated under this title for the Centers for 
     Disease Control and Prevention, there shall be appropriated 
     $50,000,000 to enable the Centers for Disease Control and 
     Prevention to carry out children's asthma programs, of which 
     $10,000,000 may be used to carry out improved asthma 
     surveillance and tracking systems and $35,000,000 shall be 
     used to carry out diverse community-based childhood asthma 
     programs including both school- and community-based grant 
     programs: Provided, That not to exceed 5 percent of such 
     funds may be used by the Centers for Disease Control and 
     Prevention for administrative costs or reprogramming.
       (b) Emergency Spending.--Amounts made available under 
     subsection (a) 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, 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.
                                  ____


                           Amendment No. 3607

       On page 54, between lines 10 and 11, insert the following:
       Sec. __. (a) Children's Asthma Programs.--In addition to 
     amounts appropriated under this title for the Centers for 
     Disease Control and Prevention, there shall be appropriated 
     $50,000,000 to enable the Centers for Disease Control and 
     Prevention to carry out children's asthma programs, of which 
     $10,000,000 may be used to carry out improved asthma 
     surveillance and tracking systems and $35,000,000 shall be 
     used to carry out diverse community-based childhood asthma 
     programs including both school- and community-based grant 
     programs: Provided, That not to exceed 5 percent of such 
     funds may be used by the Centers for Disease Control and 
     Prevention for administrative costs or reprogramming.
       (b) Offset.--Amounts made available under this Act for the 
     administrative and related expenses of the Department of 
     Health and Human Services, the Department of Labor, and the 
     Department of Education shall be reduced on a pro rata basis 
     by $50,000,000.
                                 ______
                                 

             DURBIN (AND OTHERS) AMENDMENTS NOS. 3608-3609

  (Ordered to lie on the table.)
  Mr. DURBIN (for himself, Mr. Reed, and Mrs. Murray) submitted two 
amendments intended to be proposed by them to the bill, H.R. 4577, 
supra; as follows:

                           Amendment No. 3608

       On page 54, between lines 10 and 11, insert the following:
       Sec. ___. In addition to amounts otherwise appropriated 
     under this title for the Centers for Disease Control and 
     Prevention, $75,000,000, to be utilized to provide grants to 
     States and political subdivisions of States under section 317 
     of the Public Health Service Act to enable such States and 
     political subdivisions to carry out immunization 
     infrastructure and operations activities: Provided, That of 
     the total amount made available in this Act for 
     infrastructure funding for the Centers for Disease Control 
     and Prevention, not less than 10 percent shall be used for 
     immunization projects in areas with low or declining 
     immunization rates or areas that are particularly susceptible 
     to disease outbreaks, and not more than 14 percent shall be 
     used to carry out the incentive bonus program: Provided 
     further, That amounts made available under this section 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.
                                  ____


                           Amendment No. 3609

       On page 54, between lines 10 and 11, insert the following:
       Sec. ___. In addition to amounts otherwise appropriated 
     under this title for the Centers for Disease Control and 
     Prevention, $75,000,000, to be utilized to provide grants to 
     States and political subdivisions of States under section 317 
     of the Public Health Service Act to enable such States and 
     political subdivisions to carry out immunization 
     infrastructure and operations activities: Provided, That of 
     the total amount made available in this Act for 
     infrastructure funding for the Centers for Disease Control 
     and Prevention, not less than 10 percent shall be used for 
     immunization projects in areas with low or declining 
     immunization rates or areas that are particularly susceptible 
     to disease outbreaks, and not more than 14 percent shall be 
     used to carry out the incentive bonus program: Provided 
     further, That amounts made available under this Act for the 
     administrative and related expenses of the Department of 
     Health and Human Services, the Department of Labor, and the 
     Department of Education shall be reduced on a pro rata basis 
     by $75,000,000.
                                 ______
                                 

                       McCAIN AMENDMENT NO. 3610

  Mr. McCAIN proposed an amendment to the bill, H.R. 4577, supra; as 
follows:

       On page 92, between lines 4 and 5, insert the following:

                TITLE VI--CHILDREN'S INTERNET PROTECTION

     SECTION 601. SHORT TITLE.

       This title may be cited as the ``Childrens' Internet 
     Protection Act''.

     SEC. 602. REQUIREMENT FOR SCHOOLS AND LIBRARIES TO IMPLEMENT 
                   FILTERING OR BLOCKING TECHNOLOGY 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 filtering.--
       ``(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, or other 
     authority with responsibility for administration of the 
     school--

       ``(I) submits to the Commission a certification described 
     in subparagraph (B); and
       ``(II) ensures the use of such computers in accordance with 
     the certification.

       ``(ii) Applicability.--The prohibition in paragraph (1) 
     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.
       ``(B) Certification.--A certification under this 
     subparagraph is a certification that the school, school 
     board, or other authority with responsibility for 
     administration of the school--

[[Page 11980]]

       ``(i) has selected a technology for its computers with 
     Internet access in order to filter or block Internet access 
     through such computers to--

       ``(I) material that is obscene; and
       ``(II) child pornography; and

       ``(ii) is enforcing a policy to ensure the operation of the 
     technology during any use of such computers by minors.
       ``(C) Additional use of technology.--A school, school 
     board, or other authority may also use a technology covered 
     by a certification under subparagraph (B) to filter or block 
     Internet access through the computers concerned to any 
     material in addition to the material specified in that 
     subparagraph that the school, school board, or other 
     authority determines to be inappropriate for minors.
       ``(D) Timing of certifications.--
       ``(i) Schools with computers on effective date.--

       ``(I) In general.--Subject to subclause (II), in the case 
     of any school covered by this paragraph as of the effective 
     date of this paragraph under section 602(h) of the Childrens' 
     Internet Protection Act, the certification under subparagraph 
     (B) shall be made not later than 30 days after such effective 
     date.
       ``(II) Delay.--A certification for a school covered by 
     subclause (I) may be made at a date that is later than is 
     otherwise required by that subclause if State or local 
     procurement rules or regulations or competitive bidding 
     requirements prevent the making of the certification on the 
     date otherwise required by that subclause. A school, school 
     board, or other authority with responsibility for 
     administration of the school shall notify the Commission of 
     the applicability of this subclause to the school. Such 
     notice shall specify the date on which the certification with 
     respect to the school shall be effective for purposes of this 
     clause.

       ``(ii) Schools acquiring computers after effective date.--
     In the case of any school that first becomes covered by this 
     paragraph after such effective date, the certification under 
     subparagraph (B) shall be made not later than 10 days after 
     the date on which the school first becomes so covered.
       ``(iii) No requirement for additional certifications.--A 
     school that has submitted a certification under subparagraph 
     (B) shall not be required for purposes of this paragraph to 
     submit an additional certification under that subparagraph 
     with respect to any computers having Internet access that are 
     acquired by the school after the submittal of the 
     certification.
       ``(E) Noncompliance.--
       ``(i) Failure to submit certification.--Any school that 
     knowingly fails to submit a certification required by this 
     paragraph shall reimburse each telecommunications carrier 
     that provided such school services at discount rates under 
     paragraph (1)(B) after the effective date of this paragraph 
     under section 602(h) of the Childrens' Internet Protection 
     Act in an amount equal to the amount of the discount provided 
     such school by such carrier for such services during the 
     period beginning on such effective date and ending on the 
     date on which the provision of such services at discount 
     rates under paragraph (1)(B) is determined to cease under 
     subparagraph (F).
       ``(ii) Failure to comply with certification.--Any school 
     that knowingly fails to ensure the use of its computers in 
     accordance with a certification under subparagraph (B) shall 
     reimburse each telecommunications carrier that provided such 
     school services at discount rates under paragraph (1)(B) 
     after the date of such certification in an amount equal to 
     the amount of the discount provided such school by such 
     carrier for such services during the period beginning on the 
     date of such certification and ending on the date on which 
     the provision of such services at discount rates under 
     paragraph (1)(B) is determined to cease under subparagraph 
     (F).
       ``(iii) Treatment of reimbursement.--The receipt by a 
     telecommunications carrier of any reimbursement under this 
     subparagraph shall not affect the carrier's treatment of the 
     discount on which such reimbursement was based in accordance 
     with the third sentence of paragraph (1)(B).
       ``(F) Cessation date.--
       ``(i) Determination.--The Commission shall determine the 
     date on which the provision of services at discount rates 
     under paragraph (1)(B) shall cease under this paragraph by 
     reason of the failure of a school to comply with the 
     requirements of this paragraph.
       ``(ii) Notification.--The Commission shall notify 
     telecommunications carriers of each school determined to have 
     failed to comply with the requirements of this paragraph and 
     of the period for which such school shall be liable to make 
     reimbursement under subparagraph (E).
       ``(G) Recommencement of discounts.--
       ``(i) Recommencement.--Upon submittal to the Commission of 
     a certification under subparagraph (B) with respect to a 
     school to which clause (i) or (ii) of subparagraph (E) 
     applies, the school shall be entitled to services at discount 
     rates under paragraph (1)(B).
       ``(ii) Notification.--The Commission shall notify the 
     school and telecommunications carriers of the recommencement 
     of the school's entitlement to services at discount rates 
     under this subparagraph and of the date on which such 
     recommencement begins.
       ``(iii) Additional noncompliance.--The provisions of 
     subparagraphs (E) and (F) shall apply to any certification 
     submitted under clause (i).
       ``(H) Public availability of policy.--A school, school 
     board, or other authority that enforces a policy under 
     subparagraph (B)(ii) shall take appropriate actions to ensure 
     the ready availability to the public of information on such 
     policy and on its policy, if any, relating to the use of 
     technology under subparagraph (C).
       ``(I) Limitation on federal action.--
       ``(i) In general.--No agency or instrumentality of the 
     United States Government may--

       ``(I) establish any criteria for making a determination 
     under subparagraph (C);
       ``(II) review a determination made by a school, school 
     board, or other authority for purposes of a certification 
     under subparagraph (B); or
       ``(III) consider the criteria employed by a school, school 
     board, or other authority for purposes of determining the 
     eligibility of a school for services at discount rates under 
     paragraph (1)(B).

       ``(ii) Action by commission.--The Commission may not take 
     any action against a school, school board, or other authority 
     for a violation of a provision of this paragraph if the 
     school, school board, or other authority, as the case may be, 
     has made a good faith effort to comply with such 
     provision.''.
       (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 filtering.--
       ``(i) In general.--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 a certification described 
     in subparagraph (B); and
       ``(II) ensures the use of such computers in accordance with 
     the certification.

       ``(ii) Applicability.--The prohibition in paragraph (1) 
     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.
       ``(B) Certification.--
       ``(i) Access of minors to certain material.--A 
     certification under this subparagraph is a certification that 
     the library--

       ``(I) has selected a technology for its computer or 
     computers with Internet access in order to filter or block 
     Internet access through such computer or computers to--

       ``(aa) material that is obscene;
       ``(bb) child pornography; and
       ``(cc) any other material that the library determines to be 
     inappropriate for minors; and

       ``(II) is enforcing a policy to ensure the operation of the 
     technology during any use of such computer or computers by 
     minors.

       ``(ii) Access to child pornography generally.--

       ``(I) In general.--A certification under this subparagraph 
     with respect to a library is also a certification that the 
     library--

       ``(aa) has selected a technology for its computer or 
     computers with Internet access in order to filter or block 
     Internet access through such computer or computers to child 
     pornography; and
       ``(bb) is enforcing a policy to ensure the operation of the 
     technology during any use of such computer or computers.

       ``(II) Scope.--For purposes of identifying child 
     pornography under subclause (I), a library may utilize the 
     definition of that term in section 2256(8) of title 18, 
     United States Code.
       ``(III) Relationship to other certifications.--The 
     certification under this clause is in addition to any other 
     certification applicable with respect to a library under this 
     subparagraph.

       ``(C) Additional use of technology.--A library may also use 
     a technology covered by a certification under subparagraph 
     (B) to filter or block Internet access through the computers 
     concerned to any material in addition to the material 
     specified in that subparagraph that the library determines to 
     be inappropriate for minors.
       ``(D) Timing of certifications.--
       ``(i) Libraries with computers on effective date.--

       ``(I) In general.--In the case of any library covered by 
     this paragraph as of the effective date of this paragraph 
     under section 602(h) of the Childrens' Internet Protection 
     Act, the certifications under subparagraph (B) shall be made 
     not later than 30 days after such effective date.
       ``(II) Delay.--The certifications for a library covered by 
     subclause (I) may be made at a date than is later than is 
     otherwise required by that subclause if State or local 
     procurement rules or regulations or competitive bidding 
     requirements prevent the making of the certifications on the 
     date otherwise required by that subclause. A library shall 
     notify the Commission of the applicability of this subclause 
     to the library. Such notice shall specify the date on which 
     the certifications with respect to the library shall be 
     effective for purposes of this clause.

       ``(ii) Libraries acquiring computers after effective 
     date.--In the case of any

[[Page 11981]]

     library that first becomes subject to the certifications 
     under subparagraph (B) after such effective date, the 
     certifications under that subparagraph shall be made not 
     later than 10 days after the date on which the library first 
     becomes so subject.
       ``(iii) No requirement for additional certifications.--A 
     library that has submitted the certifications under 
     subparagraph (B) shall not be required for purposes of this 
     paragraph to submit an additional certifications under that 
     subparagraph with respect to any computers having Internet 
     access that are acquired by the library after the submittal 
     of such certifications.
       ``(E) Noncompliance.--
       ``(i) Failure to submit certification.--Any library that 
     knowingly fails to submit the certifications required by this 
     paragraph shall reimburse each telecommunications carrier 
     that provided such library services at discount rates under 
     paragraph (1)(B) after the effective date of this paragraph 
     under section 602(h) of the Childrens' Internet Protection 
     Act in an amount equal to the amount of the discount provided 
     such library by such carrier for such services during the 
     period beginning on such effective date and ending on the 
     date on which the provision of such services at discount 
     rates under paragraph (1)(B) is determined to cease under 
     subparagraph (F).
       ``(ii) Failure to comply with certification.--Any library 
     that knowingly fails to ensure the use of its computers in 
     accordance with a certification under subparagraph (B) shall 
     reimburse each telecommunications carrier that provided such 
     library services at discount rates under paragraph (1)(B) 
     after the date of such certification in an amount equal to 
     the amount of the discount provided such library by such 
     carrier for such services during the period beginning on the 
     date of such certification and ending on the date on which 
     the provision of such services at discount rates under 
     paragraph (1)(B) is determined to cease under subparagraph 
     (F).
       ``(iii) Treatment of reimbursement.--The receipt by a 
     telecommunications carrier of any reimbursement under this 
     subparagraph shall not affect the carrier's treatment of the 
     discount on which such reimbursement was based in accordance 
     with the third sentence of paragraph (1)(B).
       ``(F) Cessation date.--
       ``(i) Determination.--The Commission shall determine the 
     date on which the provision of services at discount rates 
     under paragraph (1)(B) shall cease under this paragraph by 
     reason of the failure of a library to comply with the 
     requirements of this paragraph.
       ``(ii) Notification.--The Commission shall notify 
     telecommunications carriers of each library determined to 
     have failed to comply with the requirements of this paragraph 
     and of the period for which such library shall be liable to 
     make reimbursement under subparagraph (E).
       ``(G) Recommencement of discounts.--
       ``(i) Recommencement.--Upon submittal to the Commission of 
     a certification under subparagraph (B) with respect to a 
     library to which clause (i) or (ii) of subparagraph (E) 
     applies, the library shall be entitled to services at 
     discount rates under paragraph (1)(B).
       ``(ii) Notification.--The Commission shall notify the 
     library and telecommunications carriers of the recommencement 
     of the library's entitlement to services at discount rates 
     under this paragraph and of the date on which such 
     recommencement begins.
       ``(iii) Additional noncompliance.--The provisions of 
     subparagraphs (E) and (F) shall apply to any certification 
     submitted under clause (i).
       ``(H) Public availability of policy.--A library that 
     enforces a policy under clause (i)(II) or (ii)(I)(bb) of 
     subparagraph (B) shall take appropriate actions to ensure the 
     ready availability to the public of information on such 
     policy and on its policy, if any, relating to the use of 
     technology under subparagraph (C).
       ``(I) Limitation on federal action.--
       ``(i) In general.--No agency or instrumentality of the 
     United States Government may--

       ``(I) establish any criteria for making a determination 
     under subparagraph (C);
       ``(II) review a determination made by a library for 
     purposes of a certification under subparagraph (B); or
       ``(III) consider the criteria employed by a library 
     purposes of determining the eligibility of the library for 
     services at discount rates under paragraph (1)(B).

       ``(ii) Action by commission.--The Commission may not take 
     any action against a library for a violation of a provision 
     of this paragraph if the library has made a good faith effort 
     to comply with such provision.''.
       (c) Minor Defined.--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.''.
       (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 requirements prescribed under paragraph (1) shall take 
     effect 120 days after the date of the enactment of this Act.
       (g) Availability of Rates.--Discounted rates under section 
     254(h)(1)(B) of the Communications Act of 1934 (47 U.S.C. 
     254(h)(1)(B))--
       (1) shall be available in amounts up to the annual cap on 
     Federal universal service support for schools and libraries 
     only for services covered by Federal Communications 
     Commission regulations on priorities for funding 
     telecommunications services, Internet access, Internet 
     services, and Internet connections that assign priority for 
     available funds for the poorest schools; and
       (2) to the extent made available under paragraph (1), may 
     be used for the purchase or acquisition of filtering or 
     blocking products necessary to meet the requirements of 
     section 254(h)(5) and (6) of that Act, but not for the 
     purchase of software or other technology other than what is 
     required to meet those requirements.
       (h) Effective Date.--The amendments made by this section 
     shall take effect 120 days after the date of the enactment of 
     this Act.

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