[Congressional Record (Bound Edition), Volume 148 (2002), Part 1]
[Senate]
[Pages 251-260]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2709. Mrs. LINCOLN submitted an amendment intended to be proposed 
to amendment SA 2698 submitted by Mr. Daschle and intended to be 
proposed to the bill (H.R. 622) to amend the Internal Revenue Code of 
1986 to expand the adoption credit, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 9, line 20, strike ``or''.
       On page 9, line 22, strike the comma and insert ``, or''.
       On page 9, between lines 22 and 23, insert:

       ``(V) which is qualified retail improvement property,

       On page 15, line 7, strike the end quotation marks and the 
     second period.
       On page 15, after line 7, insert:
       ``(4) Qualified retail improvement property.--For purposes 
     of this subsection--
       ``(A) In general.--The term `qualified retail improvement 
     property' means any improvement to an interior portion of a 
     building which is primarily used or held for use in a 
     qualified retail business at the location of such 
     improvement, but only if such improvement is placed in 
     service more than 3 years after the date the building was 
     first placed in service.
       ``(B) Certain improvements not included.--The term 
     `qualified retail improvement' does not include any 
     improvement of a type described in clauses (i) through (iv) 
     of subsection (k)(3)(B).
       ``(C) Qualified retail business.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `qualified retail business' 
     means a trade or business of selling tangible personal 
     property to the general public.
       ``(ii) Treatment of certain sales of intangible property or 
     sales.--Any sale of intangible property or services shall be 
     considered a sale of tangible property if such sale is 
     incidental to the sale of tangible property. A trade or 
     business shall not fail to be treated as a qualified retail 
     business by reason of sales of intangible property or 
     services if such sales (other than sales that are incidental 
     to the sale of tangible personal property) represent less 
     than 10 percent of the total sales of the trade or business 
     at the location.''.
                                  ____

  SA 2710. Mrs. LINCOLN submitted an amendment intended to be proposed 
by her to the bill H.R. 622, to amend the Internal Revenue Code of 1986 
to expand the adoption credit, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. __. CLARIFICATION OF EXCISE TAX EXEMPTIONS FOR 
                   AGRICULTURAL AERIAL APPLICATORS.

       (a) No Waiver by Farm Owner, Tenant, or Operator 
     Necessary.--Subparagraph (B) of section 6420(c)(4) (relating 
     to certain farming use other than by owner, etc.) is amended 
     to read as follows:
       ``(B) if the person so using the gasoline is an aerial or 
     other applicator of fertilizers or other substances and is 
     the ultimate purchaser of the gasoline, then subparagraph (A) 
     of this paragraph shall not apply and the aerial or other 
     applicator shall be treated as having used such gasoline on a 
     farm for farming purposes.''.
       (b) Exemption Includes Fuel Used Between Airfield and 
     Farm.--Section 6420(c)(4), as amended by subsection (a), is 
     amended by adding at the end the following new flush 
     sentence:

     ``For purposes of this paragraph, in the case of an aerial 
     applicator, gasoline shall be treated as used on a farm for 
     farming purposes if the gasoline is used for the direct 
     flight between the airfield and 1 or more farms.''.
       (c) Exemption from Tax on Air Transportation of Persons for 
     Forestry Purposes Extended to Fixed-Wing Aircraft.--
     Subsection (f) of section 4261 (relating to tax on air 
     transportation of persons) is amended to read as follows:
       ``(f) Exemption for Certain Uses.--No tax shall be imposed 
     under subsection (a) or (b) on air transportation--
       ``(1) by helicopter for the purpose of transporting 
     individuals, equipment, or supplies in the exploration for, 
     or the development or removal of, hard minerals, oil, or gas, 
     or
       ``(2) by helicopter or by fixed-wing aircraft for the 
     purpose of the planting, cultivation, cutting, or 
     transportation of, or caring for, trees (including logging 
     operations),

     but only if the helicopter or fixed-wing aircraft does not 
     take off from, or land at, a facility eligible for assistance 
     under the Airport and Airway Development Act of 1970, or 
     otherwise use services provided pursuant to section 44509 or 
     44913(b) or subchapter I of chapter 471 of title 49, United 
     States Code, during such use. In the case of helicopter 
     transportation described in paragraph (1), this subsection 
     shall be applied by treating each flight segment as a 
     distinct flight.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to fuel use or air transportation after December 
     31, 2001, and before January 1, 2003.
                                  ____

  SA 2711. Mrs. LINCOLN submitted an amendment intended to be proposed 
by her to the bill H.R. 622, to amend the Internal Revenue Code of 1986 
to expand the adoption credit, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. __. RECOVERY PERIOD FOR CERTAIN WIRELESS 
                   TELECOMMUNICATIONS EQUIPMENT.

       (a) 5-Year Recovery Period for Certain Wireless 
     Telecommunications Equipment.--
       (1) In general.--Subparagraph (A) of section 168(i)(2) 
     (defining qualified technological equipment) is amended by 
     striking ``and'' at the end of clause (ii), by striking the 
     period at the end of clause (iii) and inserting ``, and'', 
     and by adding at the end the following:
       ``(iv) any wireless telecommunication equipment.''.
       (2) Definition of wireless telecommunication equipment.--
     Paragraph (2) of section 168(i) is amended by adding at the 
     end the following:
       ``(D) Wireless telecommunication equipment.--
       ``(i) In general.--For purposes of this paragraph--

       ``(I) In general.--The term `wireless telecommunication 
     equipment' means equipment which is used in the transmission, 
     reception, coordination, or switching of wireless 
     telecommunications service.
       ``(II) Exception.--The term `wireless telecommunication 
     equipment' shall not include towers, buildings, T-1 lines, or 
     other cabling which connects cell sites to mobile switching 
     centers.

       ``(ii) Wireless telecommunications service.--For purposes 
     of clause (i), the term `wireless telecommunications service' 
     includes any commercial mobile radio service as defined in 
     title 47 of the Code of Federal Regulations.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after September 10, 
     2001.
                                  ____

  SA 2712. Mrs. LINCOLN submitted an amendment intended to be proposed 
by her to the bill H.R. 622, to amend the Internal Revenue Code of 1986 
to expand the adoption credit, and for other

[[Page 252]]

purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. DELAY IN MEDICAID UPL CHANGES FOR NON-STATE 
                   GOVERNMENT-OWNED OR OPERATED HOSPITALS.

       (a) Congressional Findings.--Congress finds the following:
       (1) The Secretary of Health and Human Services, in 
     regulations promulgated on January 12, 2001, provided for an 
     exception to the upper limits on payment under State medicaid 
     plans so to permit payment to city and county public 
     hospitals at a rate up to 150 percent of the medicare payment 
     rate.
       (2) The Secretary justified this exception because these 
     hospitals--
       (A) provide access to a wide range of needed care not often 
     otherwise available in underserved areas;
       (B) deliver a significant proportion of uncompensated care; 
     and
       (C) are critically dependent on public financing sources, 
     such as the medicaid program.
       (3) There has been no evidence presented to Congress that 
     has changed this justification for such exception.
       (b) Moratorium on UPL Changes.--Any change in the upper 
     limits on payment under title XIX of the Social Security Act 
     for services of non-State government-owned or operated 
     hospitals, whether based on the final rule published on 
     January 18, 2002, or otherwise, may not be effective before 
     the later of January 1, 2003, or 3 months after the 
     submission to Congress of the plan described in subsection 
     (c).
       (c) Mitigation Plan.--The Secretary of Health and Human 
     Services shall submit to Congress a report that contains a 
     plan for mitigating the loss of funding to non-State 
     government-owned or operated hospitals as a result of any 
     change in the upper limits on payment referred to in 
     subsection (b). Such report shall also include such 
     recommendations for legislative action as the Secretary deems 
     appropriate.
                                  ____

  SA 2713. Mr. DASCHLE (for Mr. Kennedy) submitted an amendment 
intended to be proposed by Mr. Daschle to the bill H.R. 622, to amend 
the Internal Revenue Code of 1986 to expand the adoption credit, and 
for other purposes; which was ordered to lie on the table; as follows:

       Strike title IV and insert the following:

           TITLE IV--TEMPORARY ENHANCED UNEMPLOYMENT BENEFITS

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Temporary Unemployment 
     Compensation Act of 2002''.

     SEC. 402. FEDERAL-STATE AGREEMENTS.

       (a) In General.--Any State which desires to do so may enter 
     into and participate in an agreement under this title with 
     the Secretary of Labor (in this title referred to as the 
     ``Secretary''). Any State which is a party to an agreement 
     under this title may, upon providing 30 days' written notice 
     to the Secretary, terminate such agreement.
       (b) Provisions of Agreement.--
       (1) In general.--Any agreement under subsection (a) shall 
     provide that the State agency of the State will make--
       (A) payments of temporary enhanced unemployment 
     compensation to individuals; and
       (B) payments of temporary supplemental unemployment 
     compensation to individuals who--
       (i) have--

       (I) exhausted all rights to regular compensation under the 
     State law (or, as the case may be, all rights to temporary 
     enhanced unemployment compensation); or
       (II) received 26 weeks of regular compensation under the 
     State law (or, as the case may be, 26 weeks of temporary 
     enhanced unemployment compensation);

       (ii) do not have any rights to regular compensation under 
     the State law of any other State (or to temporary enhanced 
     unemployment compensation); and
       (iii) are not receiving compensation under the unemployment 
     compensation law of any other country.
       (2) Special rules regarding temporary enhanced unemployment 
     compensation.--
       (A) In general.--Subject to subparagraphs (B) and (C), 
     eligibility for, and the amount of, temporary enhanced 
     unemployment compensation shall be determined in the same 
     manner as eligibility for, and the amount of, regular 
     compensation is determined under the State law.
       (B) Eligibility for teuc.--In the case of an individual who 
     is not eligible for regular compensation under the State law 
     because--
       (i) of the use of a definition of base period that does not 
     count wages earned in the most recently completed calendar 
     quarter, then eligibility for temporary enhanced unemployment 
     compensation under subparagraph (A) shall be determined by 
     applying a base period ending at the close of the calendar 
     quarter most recently completed before the date of the 
     individual's application for benefits, except that this 
     clause shall not apply unless wage data for that quarter has 
     been reported to the State or supplied to the State agency on 
     behalf of the individual; or
       (ii) such individual does not meet requirements relating to 
     availability for work, active search for work, or refusal to 
     accept work, because such individual is seeking, or is 
     available for, only part-time (and not full-time) work, then 
     eligibility for temporary enhanced unemployment compensation 
     under subparagraph (A) shall be determined without regard to 
     the fact that such individual is seeking, or is available 
     for, only part-time (and not full-time) work, except that 
     this clause shall not apply unless--

       (I) the individual's employment on which eligibility for 
     the temporary enhanced unemployment compensation is based was 
     part-time employment; or
       (II) the individual can show good cause for seeking, or 
     being available for, only part-time (and not full-time) work.

       (C) Increased benefits.--
       (i) Individuals eligible for regular compensation.--In the 
     case of an individual who is eligible for regular 
     compensation (including dependents' allowances) under the 
     State law without regard to this paragraph, the amount of 
     temporary enhanced unemployment compensation payable to such 
     individual for any week shall be an amount equal to the 
     greater of--

       (I) 15 percent of the amount of such regular compensation 
     payable to such individual for the week; or
       (II) $25.

       (ii) Individuals not eligible for regular compensation but 
     eligible for teuc by reason of subparagraph (b).--In the case 
     of an individual who is eligible for temporary enhanced 
     unemployment compensation under this paragraph by reason of 
     either clause (i) or (ii) of subparagraph (B), the amount of 
     temporary enhanced unemployment compensation payable to such 
     individual for any week shall be equal to the amount of 
     compensation payable to such individual (as determined under 
     subparagraph (A)) for the week, plus an amount equal to the 
     greater of--

       (I) 15 percent of the amount so determined; or
       (II) $25.

       (iii) Rounding.--For purposes of determining the amount 
     under clause (i)(I) or (ii)(I), such amount shall be rounded 
     to the dollar amount specified under the State law.
       (c) Nonreduction Rule.--Under an agreement entered into 
     under this title, subsection (b)(2)(C) shall not apply (or 
     shall cease to apply) with respect to a State upon a 
     determination by the Secretary that the method governing the 
     computation of regular compensation under the State law of 
     that State has been modified in a way such that the average 
     weekly amount of regular compensation which will be payable 
     during the period of the agreement (determined disregarding 
     any temporary enhanced unemployment compensation) will be 
     less than the average weekly amount of regular compensation 
     which would otherwise have been payable during such period 
     under the State law, as in effect on September 11, 2001.
       (d) Coordination Rules.--
       (1) Regular compensation payable under a federal law.--
     Rules similar to the rules under subsection (b)(2) shall 
     apply in determining the amount of benefits payable under any 
     Federal law to the extent that those benefits are determined 
     by reference to regular compensation payable under the State 
     law of the State involved.
       (2) Temporary supplemental unemployment compensation to 
     serve as second-tier benefits.--Notwithstanding any other 
     provision of law, neither regular compensation, temporary 
     enhanced unemployment compensation, extended compensation, 
     nor additional compensation under any Federal or State law 
     shall be payable to any individual for any week for which 
     temporary supplemental unemployment compensation is payable 
     to such individual.
       (3) Treatment of other unemployment compensation.--After 
     the date on which a State enters into an agreement under this 
     title, any regular compensation (or, as the case may be, 
     temporary enhanced unemployment compensation) in excess of 26 
     weeks, any extended compensation, and any additional 
     compensation under any Federal or State law shall be payable 
     to an individual in accordance with the State law after such 
     individual has exhausted any rights to temporary supplemental 
     unemployment compensation under the agreement.
       (e) Exhaustion of Benefits.--For purposes of subsection 
     (b)(1)(B)(i)(I), an individual shall be considered to have 
     exhausted such individual's rights to regular compensation 
     (or, as the case may be, rights to temporary enhanced 
     unemployment compensation) under a State law (or agreement 
     under this title) when--
       (1) no payments of regular compensation (or, as the case 
     may be, rights to temporary enhanced unemployment 
     compensation) can be made under such law (or such agreement) 
     because the individual has received all such compensation 
     available to the individual based on employment or wages 
     during the individual's base period; or
       (2) the individual's rights to such compensation have been 
     terminated by reason of the expiration of the benefit year 
     with respect to which such rights existed.
       (f) Weekly Benefit Amount, Terms and Conditions, Etc. 
     Relating to Temporary

[[Page 253]]

     Supplemental Unemployment Compensation.--For purposes of any 
     agreement under this title--
       (1) the amount of temporary supplemental unemployment 
     compensation which shall be payable to an individual for any 
     week of total unemployment shall be equal to--
       (A) the amount of regular compensation (including 
     dependents' allowances) payable to such individual under the 
     State law for a week for total unemployment during such 
     individual's benefit year; plus
       (B) the amount of any temporary enhanced unemployment 
     compensation payable to such individual for a week for total 
     unemployment during such individual's benefit year;
       (2) the terms and conditions of the State law which apply 
     to claims for regular compensation and to the payment thereof 
     shall apply to claims for temporary supplemental unemployment 
     compensation and the payment thereof, except where 
     inconsistent with the provisions of this title or with the 
     regulations or operating instructions of the Secretary 
     promulgated to carry out this title; and
       (3) the maximum amount of temporary supplemental 
     unemployment compensation payable to any individual for whom 
     a temporary supplemental unemployment compensation account is 
     established under section 403 shall not exceed the amount 
     established in such account for such individual.

     SEC. 403. TEMPORARY SUPPLEMENTAL UNEMPLOYMENT COMPENSATION 
                   ACCOUNT.

       (a) In General.--Any agreement under this title shall 
     provide that the State will establish, for each eligible 
     individual who files an application for temporary 
     supplemental unemployment compensation, a temporary 
     supplemental unemployment compensation account.
       (b) Amount in Account.--
       (1) In general.--The amount established in an account under 
     subsection (a) shall be equal to the greater of--
       (A) 50 percent of--
       (i) the total amount of regular compensation (including 
     dependents' allowances) payable to the individual during the 
     individual's benefit year under such law; plus
       (ii) the amount of any temporary enhanced unemployment 
     compensation payable to the individual during the 
     individual's benefit year under the agreement; or
       (B) 13 times the individual's weekly benefit amount.
       (2) Weekly benefit amount.--For purposes of paragraph 
     (1)(B), an individual's weekly benefit amount for any week is 
     an amount equal to--
       (A) the amount of regular compensation (including 
     dependents' allowances) under the State law payable to the 
     individual for such week for total unemployment; plus
       (B) the amount of any temporary enhanced unemployment 
     compensation under the agreement payable to the individual 
     for such week for total unemployment.

     SEC. 404. PAYMENTS TO STATES HAVING AGREEMENTS UNDER THIS 
                   TITLE.

       (a) General Rule.--There shall be paid to each State which 
     has entered into an agreement under this title an amount 
     equal to--
       (1) 100 percent of any temporary enhanced unemployment 
     compensation made payable to individuals by such State;
       (2) 100 percent of any regular compensation which would 
     have been temporary enhanced unemployment compensation under 
     this title but for the fact that its State law contains 
     provisions comparable to the provisions in clauses (i) and 
     (ii) of section 402(b)(2)(B); and
       (3) 100 percent of the temporary supplemental unemployment 
     compensation paid to individuals by the State pursuant to 
     such agreement.
       (b) Determination of Amount.--Sums under subsection (a) 
     payable to any State by reason of such State having an 
     agreement under this title shall be payable, either in 
     advance or by way of reimbursement (as may be determined by 
     the Secretary), in such amounts as the Secretary estimates 
     the State will be entitled to receive under this title for 
     each calendar month, reduced or increased, as the case may 
     be, by any amount by which the Secretary finds that the 
     Secretary's estimates for any prior calendar month were 
     greater or less than the amounts which should have been paid 
     to the State. Such estimates may be made on the basis of such 
     statistical, sampling, or other method as may be agreed upon 
     by the Secretary and the State agency of the State involved.
       (c) Administrative Expenses, Etc.--There is hereby 
     appropriated, without fiscal year limitation, out of the 
     employment security administration account of the 
     Unemployment Trust Fund (as established by section 901(a) of 
     the Social Security Act (42 U.S.C. 1101(a))) $500,000,000 to 
     reimburse States for the costs of the administration of 
     agreements under this title (including any improvements in 
     technology in connection therewith) and to provide 
     reemployment services to unemployment compensation claimants 
     in States having agreements under this title. Each State's 
     share of the amount appropriated by the preceding sentence 
     shall be determined by the Secretary according to the factors 
     described in section 302(a) of the Social Security Act (42 
     U.S.C. 501(a)) and certified by the Secretary to the 
     Secretary of the Treasury.

     SEC. 405. FINANCING PROVISIONS.

       (a) In General.--Funds in the extended unemployment 
     compensation account (as established by section 905(a) of the 
     Social Security Act (42 U.S.C. 1105(a))), and the Federal 
     unemployment account (as established by section 904(g) of 
     such Act (42 U.S.C. 1104(g))), of the Unemployment Trust Fund 
     (as established by section 904(a) of such Act (42 U.S.C. 
     1104(a))) shall be used, in accordance with subsection (b), 
     for the making of payments (described in section 404(a)) to 
     States having agreements entered into under this title.
       (b) Certification.--The Secretary shall from time to time 
     certify to the Secretary of the Treasury for payment to each 
     State the sums described in section 404(a) which are payable 
     to such State under this title. The Secretary of the 
     Treasury, prior to audit or settlement by the General 
     Accounting Office, shall make payments to the State in 
     accordance with such certification by transfers from the 
     extended unemployment compensation account, as so established 
     (or, to the extent that there are insufficient funds in that 
     account, from the Federal unemployment account, as so 
     established) to the account of such State in the Unemployment 
     Trust Fund (as so established).

     SEC. 406. FRAUD AND OVERPAYMENTS.

       (a) In General.--If an individual knowingly has made, or 
     caused to be made by another, a false statement or 
     representation of a material fact, or knowingly has failed, 
     or caused another to fail, to disclose a material fact, and 
     as a result of such false statement or representation or of 
     such nondisclosure such individual has received any temporary 
     enhanced unemployment compensation or temporary supplemental 
     unemployment compensation under this title to which such 
     individual was not entitled, such individual--
       (1) shall be ineligible for any further benefits under this 
     title in accordance with the provisions of the applicable 
     State unemployment compensation law relating to fraud in 
     connection with a claim for unemployment compensation; and
       (2) shall be subject to prosecution under section 1001 of 
     title 18, United States Code.
       (b) Repayment.--In the case of individuals who have 
     received any temporary enhanced unemployment compensation or 
     temporary supplemental unemployment compensation under this 
     title to which such individuals were not entitled, the State 
     shall require such individuals to repay those benefits to the 
     State agency, except that the State agency may waive such 
     repayment if it determines that--
       (1) the payment of such benefits was without fault on the 
     part of any such individual; and
       (2) such repayment would be contrary to equity and good 
     conscience.
       (c) Recovery by State Agency.--
       (1) In general.--The State agency may recover the amount to 
     be repaid, or any part thereof, by deductions from any 
     regular compensation, temporary enhanced unemployment 
     compensation, or temporary supplemental unemployment 
     compensation payable to such individual under this title or 
     from any unemployment compensation payable to such individual 
     under any Federal unemployment compensation law administered 
     by the State agency or under any other Federal law 
     administered by the State agency which provides for the 
     payment of any assistance or allowance with respect to any 
     week of unemployment, during the 3-year period after the date 
     such individuals received the payment of the temporary 
     enhanced unemployment compensation or the temporary 
     supplemental unemployment compensation to which such 
     individuals were not entitled, except that no single 
     deduction may exceed 50 percent of the weekly benefit amount 
     from which such deduction is made.
       (2) Opportunity for hearing.--No repayment shall be 
     required, and no deduction shall be made, until a 
     determination has been made, notice thereof and an 
     opportunity for a fair hearing has been given to the 
     individual, and the determination has become final.
       (d) Review.--Any determination by a State agency under this 
     section shall be subject to review in the same manner and to 
     the same extent as determinations under the State 
     unemployment compensation law, and only in that manner and to 
     that extent.

     SEC. 407. DEFINITIONS.

       In this title, the terms ``compensation'', ``regular 
     compensation'', ``extended compensation'', ``additional 
     compensation'', ``benefit year'', ``base period'', ``State'', 
     ``State agency'', ``State law'', and ``week'' have the 
     respective meanings given such terms under section 205 of the 
     Federal-State Extended Unemployment Compensation Act of 1970 
     (26 U.S.C. 3304 note).

     SEC. 408. APPLICABILITY.

       (a) In General.--An agreement entered into under this title 
     shall apply to weeks of unemployment--
       (1) beginning after the date on which such agreement is 
     entered into; and
       (2) ending before January 6, 2003.
       (b) Specific Rules.--
       (1) In general.--Under such an agreement, the following 
     rules shall apply:

[[Page 254]]

       (A) Alternative base periods.--The payment of temporary 
     enhanced unemployment compensation by reason of section 
     402(b)(2)(B)(i) (relating to alternative base periods) shall 
     not apply except in the case of initial claims filed on or 
     after the first day of the week that includes September 11, 
     2001.
       (B) Part-time employment and increased benefits.--The 
     payment of temporary enhanced unemployment compensation by 
     reason of subparagraphs (B)(ii) and (C) of section 402(b)(2) 
     (relating to part-time employment and increased benefits, 
     respectively) shall apply to weeks of unemployment described 
     in subsection (a), regardless of the date on which an 
     individual's initial claim for benefits is filed.
       (C) Eligibility for temporary supplemental unemployment 
     compensation.--The payment of temporary supplemental 
     unemployment compensation pursuant to section 402(b)(1)(B) 
     shall not apply except in the case of individuals who first 
     meet either the condition described in subclause (I) or (II) 
     of clause (i) of such section on or after the first day of 
     the week that includes September 11, 2001.
       (2) Reapplication process.--
       (A) Alternative base periods.--In the case of an individual 
     who filed an initial claim for regular compensation on or 
     after the first day of the week that includes September 11, 
     2001, and before the date that the State entered into an 
     agreement under subsection (a)(1) that was denied as a result 
     of the application of the base period that applied under the 
     State law prior to the date on which the State entered into 
     the agreement, such individual--
       (i) may file a claim for temporary enhanced unemployment 
     compensation based on section 402(b)(2)(B)(i) (relating to 
     alternative base periods) on or after the date on which the 
     State enters into such agreement and before the date on which 
     such agreement terminates; and
       (ii) if eligible, shall be entitled to such compensation 
     only for weeks of unemployment described in subsection (a) 
     beginning on or after the date on which the individual files 
     such claim.
       (B) Part-time employment.--In the case of an individual who 
     before the date that the State entered into an agreement 
     under subsection (a)(1) was denied regular compensation under 
     the State law's provisions relating to availability for work, 
     active search for work, or refusal to accept work, solely by 
     virtue of the fact that such individual is seeking, or 
     available for, only part-time (and not full-time) work, such 
     individual--
       (i) may file a claim for temporary enhanced unemployment 
     compensation based on section 402(b)(2)(B)(ii) (relating to 
     part-time employment) on or after the date on which the State 
     enters into the agreement under subsection (a)(1) and before 
     the date on which such agreement terminates; and
       (ii) if eligible, shall be entitled to such compensation 
     only for weeks of unemployment described in subsection (a) 
     beginning on or after the date on which the individual files 
     such claim.
       (3) No retroactive payments for weeks prior to agreement.--
     No amounts shall be payable to an individual under an 
     agreement entered into under this title for any week of 
     unemployment prior to the week beginning after the date on 
     which such agreement is entered into.

     SEC. 409. RULE OF CONSTRUCTION REGARDING CHANGES TO STATE 
                   LAW.

       Nothing in this title shall be construed as requiring a 
     State to modify the laws of such State in order to enter into 
     an agreement under this title or to comply with the 
     provisions of the agreement described in section 402(b).

     SEC. 410. WORKFORCE INVESTMENT ACTIVITIES.

       Section 134(d)(4) of the Workforce Investment Act of 1998 
     (29 U.S.C. 2864(d)(4)) is amended by adding at the end the 
     following:
       ``(H) In training with the approval of the state agency.--
     Notwithstanding any other provision of law, an eligible adult 
     or dislocated worker receiving training services (other than 
     on-the-job training) under this paragraph shall be deemed to 
     be in training with the approval of the State agency for 
     purposes of section 3304(a)(8) of the Internal Revenue Code 
     of 1986.''.
                                  ____

  SA 2714. Mr. DURBIN (for himself, Mr. Wellstone, Mr. Dayton, Ms. 
Landrieu, and Mrs. Lincoln) proposed an amendment to amendment SA 2698 
submitted by Mr. Daschle and intended to be proposed to the bill (H.R. 
622) to amend the Internal Revenue Code of 1986 to expand the adoption 
credit, and for other purposes; as follows:

       Strike title IV and insert the following:

           TITLE IV--TEMPORARY ENHANCED UNEMPLOYMENT BENEFITS

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Temporary Unemployment 
     Compensation Act of 2002''.

     SEC. 402. FEDERAL-STATE AGREEMENTS.

       (a) In General.--Any State which desires to do so may enter 
     into and participate in an agreement under this title with 
     the Secretary of Labor (in this title referred to as the 
     ``Secretary''). Any State which is a party to an agreement 
     under this title may, upon providing 30 days' written notice 
     to the Secretary, terminate such agreement.
       (b) Provisions of Agreement.--
       (1) In general.--Any agreement under subsection (a) shall 
     provide that the State agency of the State will make--
       (A) payments of temporary enhanced unemployment 
     compensation to individuals; and
       (B) payments of temporary supplemental unemployment 
     compensation to individuals who--
       (i) have--

       (I) exhausted all rights to regular compensation under the 
     State law (or, as the case may be, all rights to temporary 
     enhanced unemployment compensation); or
       (II) received 26 weeks of regular compensation under the 
     State law (or, as the case may be, 26 weeks of temporary 
     enhanced unemployment compensation);

       (ii) do not have any rights to regular compensation under 
     the State law of any other State (or to temporary enhanced 
     unemployment compensation); and
       (iii) are not receiving compensation under the unemployment 
     compensation law of any other country.
       (2) Special rules regarding temporary enhanced unemployment 
     compensation.--
       (A) In general.--Subject to subparagraphs (B) and (C), 
     eligibility for, and the amount of, temporary enhanced 
     unemployment compensation shall be determined in the same 
     manner as eligibility for, and the amount of, regular 
     compensation is determined under the State law.
       (B) Eligibility for teuc.--In the case of an individual who 
     is not eligible for regular compensation under the State law 
     because--
       (i) of the use of a definition of base period that does not 
     count wages earned in the most recently completed calendar 
     quarter, then eligibility for temporary enhanced unemployment 
     compensation under subparagraph (A) shall be determined by 
     applying a base period ending at the close of the calendar 
     quarter most recently completed before the date of the 
     individual's application for benefits, except that this 
     clause shall not apply unless wage data for that quarter has 
     been reported to the State or supplied to the State agency on 
     behalf of the individual; or
       (ii) such individual does not meet requirements relating to 
     availability for work, active search for work, or refusal to 
     accept work, because such individual is seeking, or is 
     available for, only part-time (and not full-time) work, then 
     eligibility for temporary enhanced unemployment compensation 
     under subparagraph (A) shall be determined without regard to 
     the fact that such individual is seeking, or is available 
     for, only part-time (and not full-time) work, except that 
     this clause shall not apply unless--

       (I) the individual's employment on which eligibility for 
     the temporary enhanced unemployment compensation is based was 
     part-time employment; or
       (II) the individual can show good cause for seeking, or 
     being available for, only part-time (and not full-time) work.

       (C) Increased benefits.--
       (i) Individuals eligible for regular compensation.--In the 
     case of an individual who is eligible for regular 
     compensation (including dependents' allowances) under the 
     State law without regard to this paragraph, the amount of 
     temporary enhanced unemployment compensation payable to such 
     individual for any week shall be an amount equal to the 
     greater of--

       (I) 15 percent of the amount of such regular compensation 
     payable to such individual for the week; or
       (II) $25.

       (ii) Individuals not eligible for regular compensation but 
     eligible for teuc by reason of subparagraph (b).--In the case 
     of an individual who is eligible for temporary enhanced 
     unemployment compensation under this paragraph by reason of 
     either clause (i) or (ii) of subparagraph (B), the amount of 
     temporary enhanced unemployment compensation payable to such 
     individual for any week shall be equal to the amount of 
     compensation payable to such individual (as determined under 
     subparagraph (A)) for the week, plus an amount equal to the 
     greater of--

       (I) 15 percent of the amount so determined; or
       (II) $25.

       (iii) Rounding.--For purposes of determining the amount 
     under clause (i)(I) or (ii)(I), such amount shall be rounded 
     to the dollar amount specified under the State law.
       (c) Nonreduction Rule.--Under an agreement entered into 
     under this title, subsection (b)(2)(C) shall not apply (or 
     shall cease to apply) with respect to a State upon a 
     determination by the Secretary that the method governing the 
     computation of regular compensation under the State law of 
     that State has been modified in a way such that the average 
     weekly amount of regular compensation which will be payable 
     during the period of the agreement (determined disregarding 
     any temporary enhanced unemployment compensation) will be 
     less than the average weekly amount of regular compensation 
     which would otherwise have been payable during such period 
     under the State law, as in effect on September 11, 2001.
       (d) Coordination Rules.--
       (1) Regular compensation payable under a federal law.--
     Rules similar to the rules

[[Page 255]]

     under subsection (b)(2) shall apply in determining the amount 
     of benefits payable under any Federal law to the extent that 
     those benefits are determined by reference to regular 
     compensation payable under the State law of the State 
     involved.
       (2) Temporary supplemental unemployment compensation to 
     serve as second-tier benefits.--Notwithstanding any other 
     provision of law, neither regular compensation, temporary 
     enhanced unemployment compensation, extended compensation, 
     nor additional compensation under any Federal or State law 
     shall be payable to any individual for any week for which 
     temporary supplemental unemployment compensation is payable 
     to such individual.
       (3) Treatment of other unemployment compensation.--After 
     the date on which a State enters into an agreement under this 
     title, any regular compensation (or, as the case may be, 
     temporary enhanced unemployment compensation) in excess of 26 
     weeks, any extended compensation, and any additional 
     compensation under any Federal or State law shall be payable 
     to an individual in accordance with the State law after such 
     individual has exhausted any rights to temporary supplemental 
     unemployment compensation under the agreement.
       (e) Exhaustion of Benefits.--For purposes of subsection 
     (b)(1)(B)(i)(I), an individual shall be considered to have 
     exhausted such individual's rights to regular compensation 
     (or, as the case may be, rights to temporary enhanced 
     unemployment compensation) under a State law (or agreement 
     under this title) when--
       (1) no payments of regular compensation (or, as the case 
     may be, rights to temporary enhanced unemployment 
     compensation) can be made under such law (or such agreement) 
     because the individual has received all such compensation 
     available to the individual based on employment or wages 
     during the individual's base period; or
       (2) the individual's rights to such compensation have been 
     terminated by reason of the expiration of the benefit year 
     with respect to which such rights existed.
       (f) Weekly Benefit Amount, Terms and Conditions, Etc. 
     Relating to Temporary Supplemental Unemployment 
     Compensation.--For purposes of any agreement under this 
     title--
       (1) the amount of temporary supplemental unemployment 
     compensation which shall be payable to an individual for any 
     week of total unemployment shall be equal to--
       (A) the amount of regular compensation (including 
     dependents' allowances) payable to such individual under the 
     State law for a week for total unemployment during such 
     individual's benefit year; plus
       (B) the amount of any temporary enhanced unemployment 
     compensation payable to such individual for a week for total 
     unemployment during such individual's benefit year;
       (2) the terms and conditions of the State law which apply 
     to claims for regular compensation and to the payment thereof 
     shall apply to claims for temporary supplemental unemployment 
     compensation and the payment thereof, except where 
     inconsistent with the provisions of this title or with the 
     regulations or operating instructions of the Secretary 
     promulgated to carry out this title; and
       (3) the maximum amount of temporary supplemental 
     unemployment compensation payable to any individual for whom 
     a temporary supplemental unemployment compensation account is 
     established under section 403 shall not exceed the amount 
     established in such account for such individual.

     SEC. 403. TEMPORARY SUPPLEMENTAL UNEMPLOYMENT COMPENSATION 
                   ACCOUNT.

       (a) In General.--Any agreement under this title shall 
     provide that the State will establish, for each eligible 
     individual who files an application for temporary 
     supplemental unemployment compensation, a temporary 
     supplemental unemployment compensation account.
       (b) Amount in Account.--
       (1) In general.--The amount established in an account under 
     subsection (a) shall be equal to the greater of--
       (A) 50 percent of--
       (i) the total amount of regular compensation (including 
     dependents' allowances) payable to the individual during the 
     individual's benefit year under such law; plus
       (ii) the amount of any temporary enhanced unemployment 
     compensation payable to the individual during the 
     individual's benefit year under the agreement; or
       (B) 13 times the individual's weekly benefit amount.
       (2) Weekly benefit amount.--For purposes of paragraph 
     (1)(B), an individual's weekly benefit amount for any week is 
     an amount equal to--
       (A) the amount of regular compensation (including 
     dependents' allowances) under the State law payable to the 
     individual for such week for total unemployment; plus
       (B) the amount of any temporary enhanced unemployment 
     compensation under the agreement payable to the individual 
     for such week for total unemployment.

     SEC. 404. PAYMENTS TO STATES HAVING AGREEMENTS UNDER THIS 
                   TITLE.

       (a) General Rule.--There shall be paid to each State which 
     has entered into an agreement under this title an amount 
     equal to--
       (1) 100 percent of any temporary enhanced unemployment 
     compensation made payable to individuals by such State;
       (2) 100 percent of any regular compensation which would 
     have been temporary enhanced unemployment compensation under 
     this title but for the fact that its State law contains 
     provisions comparable to the provisions in clauses (i) and 
     (ii) of section 402(b)(2)(B); and
       (3) 100 percent of the temporary supplemental unemployment 
     compensation paid to individuals by the State pursuant to 
     such agreement.
       (b) Determination of Amount.--Sums under subsection (a) 
     payable to any State by reason of such State having an 
     agreement under this title shall be payable, either in 
     advance or by way of reimbursement (as may be determined by 
     the Secretary), in such amounts as the Secretary estimates 
     the State will be entitled to receive under this title for 
     each calendar month, reduced or increased, as the case may 
     be, by any amount by which the Secretary finds that the 
     Secretary's estimates for any prior calendar month were 
     greater or less than the amounts which should have been paid 
     to the State. Such estimates may be made on the basis of such 
     statistical, sampling, or other method as may be agreed upon 
     by the Secretary and the State agency of the State involved.
       (c) Administrative Expenses, Etc.--There is hereby 
     appropriated, without fiscal year limitation, out of the 
     employment security administration account of the 
     Unemployment Trust Fund (as established by section 901(a) of 
     the Social Security Act (42 U.S.C. 1101(a))) $500,000,000 to 
     reimburse States for the costs of the administration of 
     agreements under this title (including any improvements in 
     technology in connection therewith) and to provide 
     reemployment services to unemployment compensation claimants 
     in States having agreements under this title. Each State's 
     share of the amount appropriated by the preceding sentence 
     shall be determined by the Secretary according to the factors 
     described in section 302(a) of the Social Security Act (42 
     U.S.C. 501(a)) and certified by the Secretary to the 
     Secretary of the Treasury.

     SEC. 405. FINANCING PROVISIONS.

       (a) In General.--Funds in the extended unemployment 
     compensation account (as established by section 905(a) of the 
     Social Security Act (42 U.S.C. 1105(a))), and the Federal 
     unemployment account (as established by section 904(g) of 
     such Act (42 U.S.C. 1104(g))), of the Unemployment Trust Fund 
     (as established by section 904(a) of such Act (42 U.S.C. 
     1104(a))) shall be used, in accordance with subsection (b), 
     for the making of payments (described in section 404(a)) to 
     States having agreements entered into under this title.
       (b) Certification.--The Secretary shall from time to time 
     certify to the Secretary of the Treasury for payment to each 
     State the sums described in section 404(a) which are payable 
     to such State under this title. The Secretary of the 
     Treasury, prior to audit or settlement by the General 
     Accounting Office, shall make payments to the State in 
     accordance with such certification by transfers from the 
     extended unemployment compensation account, as so established 
     (or, to the extent that there are insufficient funds in that 
     account, from the Federal unemployment account, as so 
     established) to the account of such State in the Unemployment 
     Trust Fund (as so established).

     SEC. 406. FRAUD AND OVERPAYMENTS.

       (a) In General.--If an individual knowingly has made, or 
     caused to be made by another, a false statement or 
     representation of a material fact, or knowingly has failed, 
     or caused another to fail, to disclose a material fact, and 
     as a result of such false statement or representation or of 
     such nondisclosure such individual has received any temporary 
     enhanced unemployment compensation or temporary supplemental 
     unemployment compensation under this title to which such 
     individual was not entitled, such individual--
       (1) shall be ineligible for any further benefits under this 
     title in accordance with the provisions of the applicable 
     State unemployment compensation law relating to fraud in 
     connection with a claim for unemployment compensation; and
       (2) shall be subject to prosecution under section 1001 of 
     title 18, United States Code.
       (b) Repayment.--In the case of individuals who have 
     received any temporary enhanced unemployment compensation or 
     temporary supplemental unemployment compensation under this 
     title to which such individuals were not entitled, the State 
     shall require such individuals to repay those benefits to the 
     State agency, except that the State agency may waive such 
     repayment if it determines that--
       (1) the payment of such benefits was without fault on the 
     part of any such individual; and
       (2) such repayment would be contrary to equity and good 
     conscience.
       (c) Recovery by State Agency.--
       (1) In general.--The State agency may recover the amount to 
     be repaid, or any part

[[Page 256]]

     thereof, by deductions from any regular compensation, 
     temporary enhanced unemployment compensation, or temporary 
     supplemental unemployment compensation payable to such 
     individual under this title or from any unemployment 
     compensation payable to such individual under any Federal 
     unemployment compensation law administered by the State 
     agency or under any other Federal law administered by the 
     State agency which provides for the payment of any assistance 
     or allowance with respect to any week of unemployment, during 
     the 3-year period after the date such individuals received 
     the payment of the temporary enhanced unemployment 
     compensation or the temporary supplemental unemployment 
     compensation to which such individuals were not entitled, 
     except that no single deduction may exceed 50 percent of the 
     weekly benefit amount from which such deduction is made.
       (2) Opportunity for hearing.--No repayment shall be 
     required, and no deduction shall be made, until a 
     determination has been made, notice thereof and an 
     opportunity for a fair hearing has been given to the 
     individual, and the determination has become final.
       (d) Review.--Any determination by a State agency under this 
     section shall be subject to review in the same manner and to 
     the same extent as determinations under the State 
     unemployment compensation law, and only in that manner and to 
     that extent.

     SEC. 407. DEFINITIONS.

       In this title the terms ``compensation'', ``regular 
     compensation'', ``extended compensation'', ``additional 
     compensation'', ``benefit year'', ``base period'', ``State'', 
     ``State agency'', ``State law'', and ``week'' have the 
     respective meanings given such terms under section 205 of the 
     Federal-State Extended Unemployment Compensation Act of 1970.

     SEC. 408. APPLICABILITY.

       (a) In General.--An agreement entered into under this title 
     shall apply to weeks of unemployment--
       (1) beginning after the date on which such agreement is 
     entered into; and
       (2) ending before January 6, 2003.
       (b) Specific Rules.--
       (1) In general.--Under such an agreement, the following 
     rules shall apply:
       (A) Alternative base periods.--The payment of temporary 
     enhanced unemployment compensation by reason of section 
     402(b)(2)(B)(i) (relating to alternative base periods) shall 
     not apply except in the case of initial claims filed on or 
     after the first day of the week that includes September 11, 
     2001.
       (B) Part-time employment and increased benefits.--The 
     payment of temporary enhanced unemployment compensation by 
     reason of subparagraphs (B)(ii) and (C) of section 402(b)(2) 
     (relating to part-time employment and increased benefits, 
     respectively) shall apply to weeks of unemployment described 
     in subsection (a), regardless of the date on which an 
     individual's initial claim for benefits is filed.
       (C) Eligibility for temporary supplemental unemployment 
     compensation.--The payment of temporary supplemental 
     unemployment compensation pursuant to section 402(b)(1)(B) 
     shall not apply except in the case of individuals who first 
     meet either the condition described in subclause (I) or (II) 
     of clause (i) of such section on or after the first day of 
     the week that includes September 11, 2001.
       (2) Reapplication process.--
       (A) Alternative base periods.--In the case of an individual 
     who filed an initial claim for regular compensation on or 
     after the first day of the week that includes September 11, 
     2001, and before the date that the State entered into an 
     agreement under subsection (a)(1) that was denied as a result 
     of the application of the base period that applied under the 
     State law prior to the date on which the State entered into 
     the agreement, such individual--
       (i) may file a claim for temporary enhanced unemployment 
     compensation based on section 402(b)(2)(B)(i) (relating to 
     alternative base periods) on or after the date on which the 
     State enters into such agreement and before the date on which 
     such agreement terminates; and
       (ii) if eligible, shall be entitled to such compensation 
     only for weeks of unemployment described in subsection (a) 
     beginning on or after the date on which the individual files 
     such claim.
       (B) Part-time employment.--In the case of an individual who 
     before the date that the State entered into an agreement 
     under subsection (a)(1) was denied regular compensation under 
     the State law's provisions relating to availability for work, 
     active search for work, or refusal to accept work, solely by 
     virtue of the fact that such individual is seeking, or 
     available for, only part-time (and not full-time) work, such 
     individual--
       (i) may file a claim for temporary enhanced unemployment 
     compensation based on section 402(b)(2)(B)(ii) (relating to 
     part-time employment) on or after the date on which the State 
     enters into the agreement under subsection (a)(1) and before 
     the date on which such agreement terminates; and
       (ii) if eligible, shall be entitled to such compensation 
     only for weeks of unemployment described in subsection (a) 
     beginning on or after the date on which the individual files 
     such claim.
       (3) No retroactive payments for weeks prior to agreement.--
     No amounts shall be payable to an individual under an 
     agreement entered into under this title for any week of 
     unemployment prior to the week beginning after the date on 
     which such agreement is entered into.

     SEC. 409. RULE OF CONSTRUCTION REGARDING CHANGES TO STATE 
                   LAW.

       Nothing in this title shall be construed as requiring a 
     State to modify the laws of such State in order to enter into 
     an agreement under this title or to comply with the 
     provisions of the agreement described in section 102(b).
                                  ____

  SA 2715. Mr. LOTT (for Mr. Inhofe) submitted an amendment intended to 
be proposed by Mr. Lott to the bill H.R. 622 to amend the Internal 
Revenue Code of 1986 to expand the adoption credit, and for other 
puposes; which was ordered to lie on the table; as follows:

       At the end add the following:

     SEC. __. PRORATION OF HEAVY VEHICLE USE TAX BETWEEN 
                   PURCHASERS OF SAME VEHICLE.

       (a) In General.--Section 4481(c) of the Internal Revenue 
     Code of 1986 (relating to proration of tax) is amended by 
     adding at the end the following new paragraph:
       ``(3) Where vehicle sold.--If in any taxable period a 
     highway motor vehicle is sold before the last day in such 
     period by the person who paid the tax imposed by this section 
     for any portion of such period ending with such last day, the 
     portion of the tax imposed by this section for the period 
     from the date of the sale to such last day shall be credited 
     or refunded (without interest) to such person. In the case of 
     a refund, such refund shall be made not later than 45 days 
     after such last day.''.
       (b) Conforming Amendments.--
       (1) Section 4481(c)(1) of the Internal Revenue Code of 1986 
     is amended by inserting ``by the person described in 
     subsection (b)'' after ``vehicle''.
       (2) Section 4481(d) of such Code is amended to read as 
     follows:
       ``(d) Cross Reference.--

  ``For privilege of paying tax imposed by this section in 
installments, see section 6156.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales occurring after the date of the 
     enactment of this Act.
                                  ____

  SA 2716. Mr. SMITH of Oregon (for himself and Mr. Allen) submitted an 
amendment intended to be proposed by him to the bill H.R. 622, to amend 
the Internal Revenue Code of 1986 to expand the adoption credit, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the end of the bill, add the following:

     SEC. __. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN PROPERTY 
                   ACQUIRED AFTER DECEMBER 31, 2001, AND BEFORE 
                   JANUARY 1, 2004.

       (a) In General.--Section 168 of the Internal Revenue Code 
     of 1986 (relating to accelerated cost recovery system) is 
     amended by adding at the end the following new subsection:
       ``(k) Special Allowance for Certain Property Acquired After 
     December 31, 2001, and Before January 1, 2004.--
       ``(1) Additional allowance.--In the case of any qualified 
     property--
       ``(A) the depreciation deduction provided by section 167(a) 
     for the taxable year in which such property is placed in 
     service shall include an allowance equal to 30 percent of the 
     adjusted basis of the qualified property, and
       ``(B) the adjusted basis of the qualified property shall be 
     reduced by the amount of such deduction before computing the 
     amount otherwise allowable as a depreciation deduction under 
     this chapter for such taxable year and any subsequent taxable 
     year.
       ``(2) Qualified property.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified property' means 
     property--
       ``(i)(I) to which this section applies which has a recovery 
     period of 20 years or less or which is water utility 
     property,
       ``(II) which is computer software (as defined in section 
     167(f)(1)(B)) for which a deduction is allowable under 
     section 167(a) without regard to this subsection,
       ``(III) which is qualified leasehold improvement property, 
     or
       ``(IV) which is eligible for depreciation under section 
     167(g),
       ``(ii) the original use of which commences with the 
     taxpayer after December 31, 2001,
       ``(iii) which is--

       ``(I) acquired by the taxpayer after December 31, 2001, and 
     before January 1, 2004, but only if no written binding 
     contract for the acquisition was in effect before January 1, 
     2002, or
       ``(II) acquired by the taxpayer pursuant to a written 
     binding contract which was entered into after December 31, 
     2001, and before January 1, 2004, and

       ``(iv) which is placed in service by the taxpayer before 
     January 1, 2004, or, in the case

[[Page 257]]

     of property described in subparagraph (B), before January 1, 
     2005.
       ``(B) Certain property having longer production periods 
     treated as qualified property.--
       ``(i) In general.--The term `qualified property' includes 
     property--

       ``(I) which meets the requirements of clauses (i), (ii), 
     and (iii) of subparagraph (A),
       ``(II) which has a recovery period of at least 10 years or 
     is transportation property, and
       ``(III) which is subject to section 263A by reason of 
     clause (ii) or (iii) of subsection (f)(1)(B) thereof.

       ``(ii) Only pre-january 1, 2004, basis eligible for 
     additional allowance.--In the case of property which is 
     qualified property solely by reason of clause (i), paragraph 
     (1) shall apply only to the extent of the adjusted basis 
     thereof attributable to manufacture, construction, or 
     production before January 1, 2004.
       ``(iii) Transportation property.--For purposes of this 
     subparagraph, the term `transportation property' means 
     tangible personal property used in the trade or business of 
     transporting persons or property.
       ``(C) Exceptions.--
       ``(i) Alternative depreciation property.--The term 
     `qualified property' shall not include any property to which 
     the alternative depreciation system under subsection (g) 
     applies, determined--

       ``(I) without regard to paragraph (7) of subsection (g) 
     (relating to election to have system apply), and
       ``(II) after application of section 280F(b) (relating to 
     listed property with limited business use).

       ``(ii) Election out.--If a taxpayer makes an election under 
     this clause with respect to any class of property for any 
     taxable year, this subsection shall not apply to all property 
     in such class placed in service during such taxable year.
       ``(D) Special rules.--
       ``(i) Self-constructed property.--In the case of a taxpayer 
     manufacturing, constructing, or producing property for the 
     taxpayer's own use, the requirements of clause (iii) of 
     subparagraph (A) shall be treated as met if the taxpayer 
     begins manufacturing, constructing, or producing the property 
     after December 31, 2001, and before January 1, 2004.
       ``(ii) Sale-leasebacks.--For purposes of subparagraph 
     (A)(ii), if property--

       ``(I) is originally placed in service after December 31, 
     2001, by a person, and
       ``(II) sold and leased back by such person within 3 months 
     after the date such property was originally placed in 
     service,

     such property shall be treated as originally placed in 
     service not earlier than the date on which such property is 
     used under the leaseback referred to in subclause (II).
       ``(E) Coordination with section 280f.--For purposes of 
     section 280F--
       ``(i) Automobiles.--In the case of a passenger automobile 
     (as defined in section 280F(d)(5)) which is qualified 
     property, the Secretary shall increase the limitation under 
     section 280F(a)(1)(A)(i) by $4,600.
       ``(ii) Listed property.--The deduction allowable under 
     paragraph (1) shall be taken into account in computing any 
     recapture amount under section 280F(b)(2).
       ``(3) Qualified leasehold improvement property.--For 
     purposes of this subsection--
       ``(A) In general.--The term `qualified leasehold 
     improvement property' means any improvement to an interior 
     portion of a building which is nonresidential real property 
     if--
       ``(i) such improvement is made under or pursuant to a lease 
     (as defined in subsection (h)(7))--

       ``(I) by the lessee (or any sublessee) of such portion, or
       ``(II) by the lessor of such portion,

       ``(ii) such portion is to be occupied exclusively by the 
     lessee (or any sublessee) of such portion, and
       ``(iii) such improvement is placed in service more than 3 
     years after the date the building was first placed in 
     service.
       ``(B) Certain improvements not included.--Such term shall 
     not include any improvement for which the expenditure is 
     attributable to--
       ``(i) the enlargement of the building,
       ``(ii) any elevator or escalator,
       ``(iii) any structural component benefiting a common area, 
     and
       ``(iv) the internal structural framework of the building.
       ``(C) Definitions and special rules.--For purposes of this 
     paragraph--
       ``(i) Binding commitment to lease treated as lease.--A 
     binding commitment to enter into a lease shall be treated as 
     a lease, and the parties to such commitment shall be treated 
     as lessor and lessee, respectively.
       ``(ii) Related persons.--A lease between related persons 
     shall not be considered a lease. For purposes of the 
     preceding sentence, the term `related persons' means--

       ``(I) members of an affiliated group (as defined in section 
     1504), and
       ``(II) persons having a relationship described in 
     subsection (b) of section 267; except that, for purposes of 
     this clause, the phrase `80 percent or more' shall be 
     substituted for the phrase `more than 50 percent' each place 
     it appears in such subsection.

       ``(D) Improvements made by lessor.--In the case of an 
     improvement made by the person who was the lessor of such 
     improvement when such improvement was placed in service, such 
     improvement shall be qualified leasehold improvement property 
     (if at all) only so long as such improvement is held by such 
     person.''.
       (b) Allowance Against Alternative Minimum Tax.--
       (1) In general.--Section 56(a)(1)(A) of the Internal 
     Revenue Code of 1986 (relating to depreciation adjustment for 
     alternative minimum tax) is amended by adding at the end the 
     following new clause:
       ``(iii) Additional allowance for certain property acquired 
     after december 31, 2001, and before january 1, 2004.--The 
     deduction under section 168(k) shall be allowed.''
       (2) Conforming amendment.--Clause (i) of section 
     56(a)(1)(A) of the Internal Revenue Code of 1986 is amended 
     by striking ``clause (ii)'' both places it appears and 
     inserting ``clauses (ii) and (iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2001, in taxable years ending after such date.
                                  ____

  SA 2717. Mr. NICKLES (for Mr. Bond (for himself, Ms. Collins, Mr. 
Enzi, Mr. Allen, and Mr. Nickles)) proposed an amendment to the bill 
H.R. 622, to amend the Internal Revenue Code of 1986 to expand the 
adoption credit, and for other purposes; as follows:

       At the end, add the following:

     SEC. __. TEMPORARY INCREASE IN EXPENSING UNDER SECTION 179.

       (a) In General.--The table contained in section 179(b)(1) 
     of the Internal Revenue Code of 1986 (relating to dollar 
     limitation) is amended to read as follows:

                                                  ``If thThe applicable
                                                             amount is:
      2001.....................................................$24,000 
      2002 or 2003.............................................$40,000 
      2004 or thereafter.....................................$25,000.''

       (b) Temporary Increase in Amount of Property Triggering 
     Phaseout of Maximum Benefit.--Paragraph (2) of section 179(b) 
     of the Internal Revenue Code of 1986 is amended by inserting 
     before the period ``($325,000 in the case of taxable years 
     beginning during 2002 or 2003)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.
                                  ____

  SA 2718. Mr. REID (for Mr. Baucus (for himself, Mr. Torricelli, and 
Mr. Bayh)) proposed an amendment to amendment SA 2698 submitted by Mr. 
Daschle and intended to be proposed to the bill (H.R. 622) to amend the 
Internal Revenue Code of 1986 to expand the adoption credit, and for 
other purposes; as follows:

       Strike section 201 and insert the following:

     SEC. 201. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN PROPERTY 
                   ACQUIRED AFTER DECEMBER 31, 2001, AND BEFORE 
                   JANUARY 1, 2004.

       (a) In General.--Section 168 (relating to accelerated cost 
     recovery system) is amended by adding at the end the 
     following new subsection:
       ``(k) Special Allowance for Certain Property Acquired After 
     December 31, 2001, and Before January 1, 2004.--
       ``(1) Additional allowance.--In the case of any qualified 
     property--
       ``(A) the depreciation deduction provided by section 167(a) 
     for the taxable year in which such property is placed in 
     service shall include an allowance equal to 30 percent of the 
     adjusted basis of the qualified property, and
       ``(B) the adjusted basis of the qualified property shall be 
     reduced by the amount of such deduction before computing the 
     amount otherwise allowable as a depreciation deduction under 
     this chapter for such taxable year and any subsequent taxable 
     year.
       ``(2) Qualified property.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified property' means 
     property--
       ``(i)(I) to which this section applies which has a recovery 
     period of 20 years or less or which is water utility 
     property,
       ``(II) which is computer software (as defined in section 
     167(f)(1)(B)) for which a deduction is allowable under 
     section 167(a) without regard to this subsection,
       ``(III) which is qualified leasehold improvement property, 
     or
       ``(IV) which is eligible for depreciation under section 
     167(g),
       ``(ii) the original use of which commences with the 
     taxpayer after December 31, 2001,
       ``(iii) which is--

       ``(I) acquired by the taxpayer after December 31, 2001, and 
     before January 1, 2004, but only if no written binding 
     contract for the acquisition was in effect before January 1, 
     2002, or
       ``(II) acquired by the taxpayer pursuant to a written 
     binding contract which was entered into after December 31, 
     2001, and before January 1, 2004, and

       ``(iv) which is placed in service by the taxpayer before 
     January 1, 2004, or, in the case of property described in 
     subparagraph (B), before January 1, 2005.

[[Page 258]]

       ``(B) Certain property having longer production periods 
     treated as qualified property.--
       ``(i) In general.--The term `qualified property' includes 
     property--

       ``(I) which meets the requirements of clauses (i), (ii), 
     and (iii) of subparagraph (A),
       ``(II) which has a recovery period of at least 10 years or 
     is transportation property, and
       ``(III) which is subject to section 263A by reason of 
     clause (ii) or (iii) of subsection (f)(1)(B) thereof.

       ``(ii) Only pre-january 1, 2004, basis eligible for 
     additional allowance.--In the case of property which is 
     qualified property solely by reason of clause (i), paragraph 
     (1) shall apply only to the extent of the adjusted basis 
     thereof attributable to manufacture, construction, or 
     production before January 1, 2004.
       ``(iii) Transportation property.--For purposes of this 
     subparagraph, the term `transportation property' means 
     tangible personal property used in the trade or business of 
     transporting persons or property.
       ``(C) Exceptions.--
       ``(i) Alternative depreciation property.--The term 
     `qualified property' shall not include any property to which 
     the alternative depreciation system under subsection (g) 
     applies, determined--

       ``(I) without regard to paragraph (7) of subsection (g) 
     (relating to election to have system apply), and
       ``(II) after application of section 280F(b) (relating to 
     listed property with limited business use).

       ``(ii) Election out.--If a taxpayer makes an election under 
     this clause with respect to any class of property for any 
     taxable year, this subsection shall not apply to all property 
     in such class placed in service during such taxable year.
       ``(D) Special rules.--
       ``(i) Self-constructed property.--In the case of a taxpayer 
     manufacturing, constructing, or producing property for the 
     taxpayer's own use, the requirements of clause (iii) of 
     subparagraph (A) shall be treated as met if the taxpayer 
     begins manufacturing, constructing, or producing the property 
     after December 31, 2001, and before January 1, 2004.
       ``(ii) Sale-leasebacks.--For purposes of subparagraph 
     (A)(ii), if property--

       ``(I) is originally placed in service after December 31, 
     2001, by a person, and
       ``(II) sold and leased back by such person within 3 months 
     after the date such property was originally placed in 
     service,

     such property shall be treated as originally placed in 
     service not earlier than the date on which such property is 
     used under the leaseback referred to in subclause (II).
       ``(E) Coordination with section 280f.--For purposes of 
     section 280F--
       ``(i) Automobiles.--In the case of a passenger automobile 
     (as defined in section 280F(d)(5)) which is qualified 
     property, the Secretary shall increase the limitation under 
     section 280F(a)(1)(A)(i) by $4,600.
       ``(ii) Listed property.--The deduction allowable under 
     paragraph (1) shall be taken into account in computing any 
     recapture amount under section 280F(b)(2).
       ``(3) Qualified leasehold improvement property.--For 
     purposes of this subsection--
       ``(A) In general.--The term `qualified leasehold 
     improvement property' means any improvement to an interior 
     portion of a building which is nonresidential real property 
     if--
       ``(i) such improvement is made under or pursuant to a lease 
     (as defined in subsection (h)(7))--

       ``(I) by the lessee (or any sublessee) of such portion, or
       ``(II) by the lessor of such portion,

       ``(ii) such portion is to be occupied exclusively by the 
     lessee (or any sublessee) of such portion, and
       ``(iii) such improvement is placed in service more than 3 
     years after the date the building was first placed in 
     service.
       ``(B) Certain improvements not included.--Such term shall 
     not include any improvement for which the expenditure is 
     attributable to--
       ``(i) the enlargement of the building,
       ``(ii) any elevator or escalator,
       ``(iii) any structural component benefiting a common area, 
     and
       ``(iv) the internal structural framework of the building.
       ``(C) Definitions and special rules.--For purposes of this 
     paragraph--
       ``(i) Binding commitment to lease treated as lease.--A 
     binding commitment to enter into a lease shall be treated as 
     a lease, and the parties to such commitment shall be treated 
     as lessor and lessee, respectively.
       ``(ii) Related persons.--A lease between related persons 
     shall not be considered a lease. For purposes of the 
     preceding sentence, the term `related persons' means--

       ``(I) members of an affiliated group (as defined in section 
     1504), and
       ``(II) persons having a relationship described in 
     subsection (b) of section 267; except that, for purposes of 
     this clause, the phrase `80 percent or more' shall be 
     substituted for the phrase `more than 50 percent' each place 
     it appears in such subsection.

       ``(D) Improvements made by lessor.--In the case of an 
     improvement made by the person who was the lessor of such 
     improvement when such improvement was placed in service, such 
     improvement shall be qualified leasehold improvement property 
     (if at all) only so long as such improvement is held by such 
     person.''.
       (b) Allowance Against Alternative Minimum Tax.--
       (1) In general.--Section 56(a)(1)(A) (relating to 
     depreciation adjustment for alternative minimum tax) is 
     amended by adding at the end the following new clause:
       ``(iii) Additional allowance for certain property acquired 
     after december 31, 2001, and before january 1, 2004.--The 
     deduction under section 168(k) shall be allowed.''
       (2) Conforming amendment.--Clause (i) of section 
     56(a)(1)(A) is amended by striking ``clause (ii)'' both 
     places it appears and inserting ``clauses (ii) and (iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2001, in taxable years ending after such date.
                                  ____

  SA 2719. Mr. REID (for Mr. Harkin) proposed an amendment to amendment 
SA 2698 submitted by Mr. Daschle and intended to be proposed to the 
bill (H.R. 622) to amend the Internal Revenue Code of 1986 to expand 
the adoption credit, and for other purposes; as follows:

       Strike section 301 and insert the following:

     SEC. 301. TEMPORARY INCREASES OF MEDICAID FMAP FOR FISCAL 
                   YEAR 2002.

       (a) Permitting Maintenance of Fiscal Year 2001 FMAP.--
     Notwithstanding any other provision of law, but subject to 
     subsection (d), if the FMAP determined without regard to this 
     section for a State for fiscal year 2002 is less than the 
     FMAP as so determined for fiscal year 2001, the FMAP for the 
     State for fiscal year 2001 shall be substituted for the 
     State's FMAP for fiscal year 2002, before the application of 
     this section.
       (b) General 3 Percentage Points Increase.--Notwithstanding 
     any other provision of law, but subject to subsections (e) 
     and (f), for each State for each calendar quarter in fiscal 
     year 2002, the FMAP (taking into account the application of 
     subsection (a)) shall be increased by 3 percentage points.
       (c) Further Increase for States With High Unemployment 
     Rates.--
       (1) In general.--Notwithstanding any other provision of 
     law, but subject to subsections (e) and (f), the FMAP for a 
     high unemployment State for a calendar quarter in fiscal year 
     2002 (and any subsequent calendar quarter in such fiscal year 
     regardless of whether the State continues to be a high 
     unemployment State for a calendar quarter in such fiscal 
     year) shall be increased (after the application of 
     subsections (a) and (b)) by 1.50 percentage points.
       (2) High unemployment state.--
       (A) In general.--For purposes of this subsection, a State 
     is a high unemployment State for a calendar quarter if, for 
     any 3 consecutive month period beginning on or after June 
     2001 and ending with the second month before the beginning of 
     the calendar quarter, the State has an average seasonally 
     adjusted unemployment rate that exceeds the average weighted 
     unemployment rate during such period. Such unemployment rates 
     for such months shall be determined based on publications of 
     the Bureau of Labor Statistics of the Department of Labor.
       (B) Average weighted unemployment rate defined.--For 
     purposes of subparagraph (A), the ``average weighted 
     unemployment rate'' for a period is--
       (i) the sum of the seasonally adjusted number of unemployed 
     civilians in each State and the District of Columbia for the 
     period; divided by
       (ii) the sum of the civilian labor force in each State and 
     the District of Columbia for the period.
       (d) 1-Year Increase in Cap on Medicaid Payments to 
     Territories.--Notwithstanding any other provision of law, 
     with respect to fiscal year 2002, the amounts otherwise 
     determined for Puerto Rico, the Virgin Islands, Guam, the 
     Northern Mariana Islands, and American Samoa under section 
     1108 of the Social Security Act (42 U.S.C. 1308) shall each 
     be increased by an amount equal to 6 percentage points of 
     such amounts.
       (e) Scope of Application.--The increases in the FMAP for a 
     State under this section shall apply only for purposes of 
     title XIX of the Social Security Act and shall not apply with 
     respect to--
       (1) disproportionate share hospital payments described in 
     section 1923 of such Act (42 U.S.C. 1396r-4); and
       (2) payments under titles IV and XXI of such Act (42 U.S.C. 
     601 et seq. and 1397aa et seq.).
       (f) State Eligibility.--A State is eligible for an increase 
     in its FMAP under subsection (b) or (c) only if the 
     eligibility under its State plan under title XIX of the 
     Social Security Act (including any waiver under such title or 
     under section 1115 of such Act (42 U.S.C. 1315)) is no more 
     restrictive than the eligibility under such plan (or waiver) 
     as in effect on October 1, 2001.
       (g) Definitions.--In this section:
       (1) FMAP.--The term ``FMAP'' means the Federal medical 
     assistance percentage, as defined in section 1905(b) of the 
     Social Security Act (42 U.S.C. 1396d(b)).

[[Page 259]]

       (2) State.--The term ``State'' has the meaning given such 
     term for purposes of title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.).
       (h) Implementation for Remainder of Fiscal Year 2002.--The 
     Secretary of Health and Human Services shall increase 
     payments to States under title XIX for the second, third, and 
     fourth calendar quarters of fiscal year 2002 to take into 
     account the increases in the FMAP provided for in this 
     section for fiscal year 2002 (including the first quarter of 
     such fiscal year).
                                  ____

  SA 2720. Mrs. LINCOLN submitted an amendment intended to be proposed 
by her to the bill H.R. 622, to amend the Internal Revenue Code of 1986 
to expand the adoption credit, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. __. TAX INCENTIVES FOR QUALIFIED UNITED STATES 
                   INDEPENDENT FILM AND TELEVISION PRODUCTION.

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

     ``SEC. 45G. UNITED STATES INDEPENDENT FILM AND TELEVISION 
                   PRODUCTION WAGE CREDIT.

       ``(a) Amount of Credit.--
       ``(1) In general.--For purposes of section 38, the United 
     States independent film and television production wage credit 
     determined under this section with respect to any taxpayer 
     for any taxable year is an amount equal to 25 percent of the 
     qualified wages paid or incurred per qualified United States 
     independent film and television production during such 
     taxable year.
       ``(2) Higher percentage for production employment in 
     certain areas.--In the case of qualified employees in any 
     qualified United States independent film and television 
     production located in an area eligible for designation as a 
     low-income community under section 45D or eligible for 
     designation by the Delta Regional Authority as a distressed 
     county or isolated area of distress, paragraph (1) shall be 
     applied by substituting `35 percent' for `25 percent'.
       ``(b) Only First $25,000 of Wages per Production Taken Into 
     Account.--With respect to each qualified United States 
     independent film and television production, the amount of 
     qualified wages paid or incurred to each qualified employee 
     or personal service corporation which may be taken into 
     account per such production shall not exceed $25,000.
       ``(c) Qualified Wages.--For purposes of this section--
       ``(1) In general.--The term `qualified wages' means--
       ``(A) any wages paid or incurred by an employer for 
     services performed in the United States by an employee while 
     such employee is a qualified employee,
       ``(B) the employee fringe benefit expenses of the employer 
     allocable to such services performed by such employee,
       ``(C) any payments made to personal service corporations as 
     defined in section 269A(b)(1) for services performed in the 
     United States, and
       ``(D) renumeration, other than wages, for services 
     personally rendered in the United States.
       ``(2) Qualified employee.--
       ``(A) In general.--The term `qualified employee' means, 
     with respect to any period, any individual who renders 
     personal services if substantially all of such services are 
     performed during such period in an activity related to any 
     qualified United States independent film and television 
     production.
       ``(B) Certain individuals not eligible.--Such term shall 
     not include--
       ``(i) any individual described in subparagraph (A), (B), or 
     (C) of section 51(i)(1), and
       ``(ii) any 5-percent owner (as defined in section 
     416(i)(1)(B).
       ``(3) Coordination with other wage credits.--No credit 
     shall be allowed under any other provision of this chapter 
     for wages paid to any employee during any taxable year if the 
     employer is allowed a credit under this section for any of 
     such wages.
       ``(4) Wages.--The term `wages' has the same meaning as when 
     used in section 51.
       ``(5) Employee fringe benefit expenses.--The term `employee 
     fringe benefit expenses' means the amount allowable as a 
     deduction under this chapter to the employer for any taxable 
     year with respect to--
       ``(A) employer contributions under stock bonus, pension, 
     profit-sharing, or annuity plan,
       ``(B) employer-provided coverage under any accident or 
     health plan for employees, and
       ``(C) the cost of life or disability insurance provided to 
     employees.

     Any amount treated as wages under paragraph (1)(A) shall not 
     be taken into account under this subparagraph.
       ``(d) Qualified United States Independent Film and 
     Television Production.--For purposes of this section--
       ``(1) In general.--The term `qualified United States 
     independent film and television production' means any 
     production of any motion picture (whether released 
     theatrically or directly to video cassette or any other 
     format), television or cable programming, mini series, 
     episodic television, movie of the week, or pilot production 
     for any of the preceding productions if--
       ``(A) 75 percent of the total wages of the production are 
     qualified wages,
       ``(B) the production is created primarily for use as public 
     entertainment or for educational purposes, and
       ``(C) the total cost of wages of the production is more 
     than $200,000 but less than $10,000,000.

     Such term shall not include any production if records are 
     required under section 2257 of title 18, United States Code, 
     to be maintained with respect to any performer in such 
     production (reporting of books, films, etc. with sexually 
     explicit conduct). For purposes of subparagraph (A), no day 
     of photography shall be considered a day of principal 
     photography unless the cost of wages for the production for 
     that day exceeds the average daily cost of wages for such 
     production.
       ``(2) Public entertainment.--The term `public 
     entertainment' includes a motion picture film, video tape, or 
     television program intended for initial broadcast via the 
     public broadcast spectrum or delivered via cable 
     distribution, or productions that are submitted to a national 
     organization in existence on July 27, 2001, that rates films 
     for violent or adult content. Such term does not include any 
     film or tape the market for which is primarily topical, is 
     otherwise essentially transitory in nature, or is produced 
     for private noncommercial use.
       ``(3) Inflation adjustment.--
       ``(A) In general.--In the case of any taxable year 
     beginning in a calendar year after 2002, the $10,000,000 
     amount contained in paragraph (1)(C) shall be increased by an 
     amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment under section 1(f)(3) 
     for the calendar year in which the taxable year begins, 
     determined by substituting `calendar year 2001' for `calendar 
     year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any increase determined under 
     subparagraph (A) is not a multiple of $500,000, such amount 
     shall be rounded to the nearest multiple of $500,000.
       ``(e) Controlled Groups.--For purposes of this section--
       ``(1) all employers treated as a single employer under 
     subsection (a) or (b) of section 52 shall be treated as a 
     single employer for purposes of this subpart, and
       ``(2) the credit (if any) determined under this section 
     with respect to each such employer shall be its proportionate 
     share of the wages giving rise to such credit.
       ``(f) Application of Certain Other Rules.--For purposes of 
     this section, rules similar to the rules of section 51(k) and 
     subsections (c) and (d) of section 52 shall apply.''.
       (b) Credit Treated as Business Credit.--Section 38(b) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``plus'' at the end of paragraph (14), by striking the period 
     at the end of paragraph (15) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(16) the United States independent film and television 
     production wage credit determined under section 45G(a).''.
       (c) No Carrybacks.--Subsection (d) of section 39 of the 
     Internal Revenue Code of 1986 (relating to carryback and 
     carryforward of unused credits) is amended by adding at the 
     end the following:
       ``(11) No carryback of section 45g credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the United States 
     independent film and television production wage credit 
     determined under section 45G may be carried back to a taxable 
     year ending before the date of the enactment of section 
     45G.''.
       (d) Denial of Double Benefit.--Subsection (a) of section 
     280C of the Internal Revenue Code of 1986 is amended by 
     inserting ``45G(a),'' after ``45A(a),''.
       (e) Conforming Amendment.--The table of sections for 
     subpart D of part IV of subchapter A of chapter 1 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new item:

``Sec. 45G. United States independent film and television production 
              wage credit.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act in taxable years ending after such 
     date.
                                  ____

  SA 2721. Mr. REID (for Mr. Baucus) proposed an amendment to amendment 
SA 2698 submitted by Mr. Daschle and intended to be proposed to the 
bill (H.R. 622) to amend the Internal Revenue Code of 1986 to expand 
the adoption credit, and for other purposes; as follows:

       At the end add the following:

[[Page 260]]



               TITLE __--EMERGENCY AGRICULTURE ASSISTANCE

                   Subtitle A--Income Loss Assistance

     SEC. __01. INCOME LOSS ASSISTANCE.

       (a) In General.--The Secretary of Agriculture (referred to 
     in this title as the ``Secretary'') shall use $1,800,000,000 
     of funds of the Commodity Credit Corporation to make 
     emergency financial assistance available to producers on a 
     farm that have incurred qualifying income losses in calendar 
     year 2001.
       (b) Administration.--The Secretary shall make assistance 
     available under this section in the same manner as provided 
     under section 815 of the Agriculture, Rural Development, Food 
     and Drug Administration, and Related Agencies Appropriations 
     Act, 2001 (Public Law 105-277; 114 Stat. 1549A-55), including 
     using the same loss thresholds for the quantity and economic 
     losses as were used in administering that section.
       (c) Use of Funds for Cash Payments.--The Secretary may use 
     funds made available under this section to make, in a manner 
     consistent with this section, cash payments not for crop 
     disasters, but for income loss to carry out the purposes of 
     this section.

     SEC. __02. LIVESTOCK ASSISTANCE PROGRAM.

       (a) In General.--The Secretary shall use $500,000,000 of 
     the funds of the Commodity Credit Corporation to make and 
     administer payments for livestock losses to producers for 
     2001 losses in a county that has received an emergency 
     designation by the President or the Secretary after January 
     1, 2001, of which $12,000,000 shall be made available for the 
     American Indian livestock program under section 806 of the 
     Agriculture, Rural Development, Food and Drug Administration, 
     and Related Agencies Appropriations Act, 2001 (Public Law 
     105-277; 114 Stat. 1549A-51).
       (b) Administration.--The Secretary shall make assistance 
     available under this section in the same manner as provided 
     under section 806 of the Agriculture, Rural Development, Food 
     and Drug Administration, and Related Agencies Appropriations 
     Act, 2001 (Public Law 105-277; 114 Stat. 1549A-51).

                       Subtitle B--Administration

     SEC. __11. COMMODITY CREDIT CORPORATION.

       The Secretary shall use the funds, facilities, and 
     authorities of the Commodity Credit Corporation to carry out 
     this title.

     SEC. __12. ADMINISTRATIVE EXPENSES.

       (a) In General.--In addition to funds otherwise available, 
     not later than 30 days after the date of enactment of this 
     Act, out of any funds in the Treasury not otherwise 
     appropriated, the Secretary of the Treasury shall transfer to 
     the Secretary of Agriculture to pay the salaries and expenses 
     of the Department of Agriculture in carrying out this title 
     $50,000,000, to remain available until expended.
       (b) Receipt and Acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under subsection (a), 
     without further appropriation.

     SEC. __13. REGULATIONS.

       (a) In General.--The Secretary may promulgate such 
     regulations as are necessary to implement this title.
       (b) Procedure.--The promulgation of the regulations and 
     administration of this subtitle shall be made without regard 
     to--
       (1) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (2) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (3) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (c) Congressional Review of Agency Rulemaking.--In carrying 
     out this section, the Secretary shall use the authority 
     provided under section 808 of title 5, United States Code.
                                  ____

  SA 2722. Mr. ALLARD (for himself, Mr. Hatch, and Mr. Allen) submitted 
an amendment intended to be proposed by him to the bill H.R. 622, to 
amend the Internal Revenue Code of 1986 to expand the adoption credit, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. PERMANENT EXTENSION OF RESEARCH 
                   CREDIT; INCREASE IN RATES OF ALTERNATIVE 
                   INCREMENTAL CREDIT.

       (a) Permanent Extension of Research Credit.--
       (1) In general.--Section 41 of the Internal Revenue Code of 
     1986 (relating to credit for increasing research activities) 
     is amended by striking subsection (h).
       (2) Conforming amendment.--Paragraph (1) of section 45C(b) 
     of such Code is amended by striking subparagraph (D).
       (3) Effective date.--The amendments made by this subsection 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.
       (b) Increase in Rates of Alternative Incremental Credit.--
       (1) In general.--Subparagraph (A) of section 41(c)(4) of 
     the Internal Revenue Code of 1986 (relating to election of 
     alternative incremental credit) is amended--
       (A) by striking ``2.65 percent'' and inserting ``3 
     percent'',
       (B) by striking ``3.2 percent'' and inserting ``4 
     percent'', and
       (C) by striking ``3.75 percent'' and inserting ``5 
     percent''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

                          ____________________