[Congressional Record (Bound Edition), Volume 150 (2004), Part 7]
[Senate]
[Pages 8979-8981]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3142. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 3140 submitted by Mr. Feingold and intended to be proposed 
to the bill S. 1637, to amend the Internal Revenue Code of 1986 to 
comply with the World Trade Organization rulings on the FSC/ETI benefit 
in a manner that preserves jobs and production activities in the United 
States, to reform and simplify the international taxation rules of the 
United States, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 4, insert after line 14 the following:
       (5) National security exemption.--Subsection (a) shall not 
     apply to any procurement for national security purposes 
     entered into by:
       (A) the Department of Defense or any agency or entity 
     thereof;
       (B) the Department of the Army, the Department of the Navy, 
     the Department of the Air Force, or any agency or entity of 
     any of the military departments;
       (C) the Department of Homeland Security;
       (D) the Department of Energy or any agency or entity 
     thereof, with respect to the national security programs of 
     that Department; or
       (E) any element of the intelligence community.
                                 ______
                                 
  SA 3143. Mr. GRASSLEY proposed an amendment to the bill S. 1637, to 
amend the Internal Revenue Code of 1986 to comply with the World Trade 
Organization rulings on the FSC/ETI benefit in a manner that preserves 
jobs and production activities in the United States, to reform and 
simplify the international taxation rules of the United States, and for 
other purposes; as follows:

       On page 26, between lines 2 and 3, insert:
       ``(3) Gross receipts from use of films and video tape.--In 
     the case of any qualifying production property which is 
     property described in section 168(f)(3) produced in whole or 
     in significant part by the taxpayer within the United States 
     (determined after application of paragraph (2)), domestic 
     production gross receipts shall include gross receipts 
     derived by the taxpayer from the use of the property by the 
     taxpayer.
       On page 27, between lines 2 and 3, insert the following 
     flush sentence:

     Subparagraph (F) shall not apply to property described in 
     section 168(f)(3) to the extent of the gross receipts from 
     the use of the property to which subsection (e)(3) applies 
     (determined after application of this sentence).
       On page 34, strike lines 8 through 17, and insert:
       ``(9) Separate application to films and videotape.--
       ``(A) In general.--In the case of qualifying production 
     property described in section 168(f)(3), the deduction under 
     this section shall be determined separately with respect to 
     qualified production activities income of the taxpayer 
     allocable to each of the following markets with respect to 
     such property:
       ``(i) Theatrical.
       ``(ii) Broadcast television (including cable, foreign, pay-
     per-view, and syndication).
       ``(iii) Home video.
       ``(B) Rules for separate determination.--Except as provided 
     in subparagraph (C)--
       ``(i) any computation required to determine the amount of 
     the deduction with respect to any of the markets described in 
     subparagraph (A) shall be made by only taking into account 
     items properly allocable to such market, including the 
     computation of qualified production activities income, 
     modified taxable income, and the domestic/worldwide fraction, 
     and
       ``(ii) such items shall not be taken into account in 
     determining the deduction with respect to either of the other 
     2 markets or with respect to qualified production activities 
     income of the taxpayer not allocable to any of such markets.
       ``(C) Wage limitation.--This paragraph shall not apply for 
     purposes of subsection (b) and subsection (b) shall be 
     applied after the application of this paragraph.''
       On page 5, of the Senate amendment number 3118, as passed, 
     at the end of line 13, add the following: ``For purposes of 
     determining LEED certification as required under this clause, 
     points shall be credited by using the following:

       ``(I) For wood products, certification under the 
     Sustainable Forestry Initiative Program and the American Tree 
     Farm System.
       ``(II) For renewable wood products, as credited for 
     recycled content otherwise provided under LEED certification.
       ``(III) For composite wood products, certification under 
     standards established by the American National Standards 
     Institute, or such other voluntary standards as published in 
     the Federal Register by the Administrator of the 
     Environmental Protection Agency.

       On page 6, strike lines 20 and 21, of the Senate amendment 
     number 3118, as passed, and insert the following:

       ``(II) Compliance with certification standards cited under 
     clause (i).

       Beginning on page 12, line 10, of the Senate amendment 
     number 3118, as passed, strike all through page 16, line 10, 
     and insert the following:

     SEC. __. SUBSTANTIAL PRESENCE TEST REQUIRED TO DETERMINE BONA 
                   FIDE RESIDENCE IN UNITED STATES POSSESSIONS.

       (a) Substantial Presence Test.--
       (1) In General.--Subpart D of part III of subchapter N of 
     chapter 1 (relating to possessions of the United States) is 
     amended by adding at the end the following new section:

     ``SEC. 937. BONA FIDE RESIDENT.

       ``For purposes of this subpart, section 865(g)(3), section 
     876, section 881(b), paragraphs (2) and (3) of section 
     901(b), section 957(c), section 3401(a)(8)(C), and section 
     7654(a), the term `bona fide resident' means a person who 
     satisfies a test, determined by the Secretary, similar to the 
     substantial presence test under section 7701(b)(3) with 
     respect to Guam, American Samoa, the Northern Mariana 
     Islands, Puerto Rico, or the Virgin Islands, as the case may 
     be.''.
       (2) Conforming amendments.--
       (A) The following provisions are amended by striking 
     ``during the entire taxable year'' and inserting ``for the 
     taxable year'':
       (i) Paragraph (3) of section 865(g).
       (ii) Subsection (a) of section 876(a).

[[Page 8980]]

       (iii) Paragraphs (2) and (3) of section 901(b).
       (iv) Subsection (a) of section 931.
       (v) Paragraphs (1) and (2) of section 933.
       (B) Section 931(d) is amended by striking paragraph (3).
       (C) Section 932 is amended by striking ``at the close of 
     the taxable year'' and inserting ``for the taxable year'' 
     each place it appears.
       (3) Clerical amendment.--The table of sections of subpart D 
     of part III of subchapter N of chapter 1 is amended by adding 
     at the end the following new item:

``Sec. 937. Bona fide resident.''.

       (b) Reporting Requirements for Bona Fide Residents of the 
     Virgin Islands.--Paragraph (2) of section 932(c) (relating to 
     treatment of Virgin Islands residents) is amended to read as 
     follows:
       ``(2) Filing requirements.--
       ``(A) In general.--Notwithstanding paragraph (4), each 
     individual to whom this subsection applies for the taxable 
     year shall file an income tax return for the taxable year 
     with--
       ``(i) the Virgin Islands, and
       ``(ii) the United States.
       ``(B) Filing fee.--The Secretary shall charge a processing 
     fee with respect to the return filed under subparagraph 
     (A)(ii) of an amount appropriate to cover the administrative 
     costs of the requirements of subparagraph (A)(ii) and the 
     enforcement of the purposes of subparagraph (A)(ii).''.
       (c) Penalties.--
       (1) In general.--Part I of subchapter B of chapter 68 is 
     amended by adding at the end the following new section:

     ``SEC. 6717. FAILURE OF VIRGIN ISLANDS RESIDENTS TO FILE 
                   RETURNS WITH THE UNITED STATES.

       ``(a) Penalty Authorized.--The Secretary may impose a civil 
     money penalty on any person who violates, or causes any 
     violation of, the requirements of section 932(c)(2)(A)(ii).
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as provided in subsection (c), 
     the amount of any civil penalty imposed under subsection (a) 
     shall not exceed $5,000.
       ``(2) Reasonable cause exception.--No penalty shall be 
     imposed under subsection (a) with respect to any violation if 
     such violation was due to reasonable cause and the taxpayer 
     acted in good faith.
       ``(c) Willful Violations.--In the case of any person 
     willfully violating, or willfully causing any violation of, 
     any requirement of section 932(c)(2)(A)(ii)--
       ``(1) the maximum penalty under subsection (b)(1) shall be 
     increased to $25,000 and
       ``(2) subsection (b)(2) shall not apply.''.
       (2) Clerical amendment.--The table of sections for Part I 
     of subchapter B of chapter 68 is amended by adding at the end 
     the following new item:

``Sec. 6717. Failure of Virgin Islands residents to file returns with 
              the United States.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.
       On page 185, line 10, insert ``insuring,'' before ``or''.
       On page 287, beginning with line 10, strike all through 
     page 288, line 3, and insert:
       ``(A) obligations of the United States, money, or deposits 
     with persons described in paragraph (4);''.
       (b) Eligible Persons.--Section 956(c) (relating to 
     exceptions to definition of United States property) is 
     amended by adding at the end the following new paragraph:
       ``(4) Financial services providers.--
       ``(A) In general.--For purposes of paragraph (2)(A), a 
     person is described in this paragraph if at least 80 percent 
     of the person's income is income described in section 
     904(d)(2)(C)(ii) (and the regulations thereunder) which is 
     derived from persons who are not related persons.
       ``(B) Special rules.--For purposes of subparagraph (A)--
       ``(i) all related persons shall be treated as 1 person in 
     applying the 80-percent test, and
       ``(ii) there shall be disregarded any item of income or 
     gain from a transaction or series of transactions a principal 
     purpose of which is the qualification of a person as a person 
     described in this paragraph.
       ``(C) Related person.--For purposes of this paragraph, the 
     term `related person' has the meaning given such term by 
     section 954(d)(3).''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
       On page 335, strike lines 4 through 10, and insert the 
     following:
       (2) Leases to foreign entities.--In the case of tax-exempt 
     use property leased to a tax-exempt entity which is a foreign 
     person or entity, the amendments made by this section shall 
     apply to taxable years beginning after March 31, 2004, with 
     respect to leases entered into on or before November 18, 
     2003.
       On page 422, line 21, strike ``$10,000,000'' and insert 
     ``$25,000,000''.
       On page 557, between lines 9 and 10, insert the following:

     SEC. __. GOLD, SILVER, PLATINUM, AND PALLADIUM TREATED IN THE 
                   SAME MANNER AS STOCKS AND BONDS FOR MAXIMUM 
                   CAPITAL GAINS RATE FOR INDIVIDUALS.

       (a) In General.--Section 1(h)(5) (relating to definition of 
     collectibles gain and loss) is amended--
       (1) by striking ``(as defined in section 408(m) without 
     regard to paragraph (3) thereof)'' in subparagraph (A) 
     thereof, and
       (2) by adding at the end the following new subparagraph:
       ``(C) Collectible.--For purposes of this paragraph, the 
     term `collectible' has the meaning given such term by section 
     408(m), except that in applying paragraph (3)(B) thereof the 
     determination of whether any bullion is excluded from 
     treatment as a collectible shall be made without regard to 
     the person who is in physical possession of the bullion.''
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2003.

     SEC. __. INCLUSION OF PRIMARY AND SECONDARY MEDICAL 
                   STRATEGIES FOR CHILDREN AND ADULTS WITH SICKLE 
                   CELL DISEASE AS MEDICAL ASSISTANCE UNDER THE 
                   MEDICAID PROGRAM.

       (a) Optional Medical Assistance.--
       (1) In general.--Section 1905 of the Social Security Act 
     (42 U.S.C. 1396d) is amended--
       (A) in subsection (a)--
       (i) by striking ``and'' at the end of paragraph (26);
       (ii) by redesignating paragraph (27) as paragraph (28); and
       (iii) by inserting after paragraph (26), the following:
       ``(27) subject to subsection (x), primary and secondary 
     medical strategies and treatment and services for individuals 
     who have Sickle Cell Disease; and''; and
       (B) by adding at the end the following:
       ``(x) For purposes of subsection (a)(27), the strategies, 
     treatment, and services described in that subsection include 
     the following:
       ``(1) Chronic blood transfusion (with deferoxamine 
     chelation) to prevent stroke in individuals with Sickle Cell 
     Disease who have been identified as being at high risk for 
     stroke.
       ``(2) Genetic counseling and testing for individuals with 
     Sickle Cell Disease or the sickle cell trait to allow health 
     care professionals to treat such individuals and to prevent 
     symptoms of Sickle Cell Disease.
       ``(3) Other treatment and services to prevent individuals 
     who have Sickle Cell Disease and who have had a stroke from 
     having another stroke.''.
       (2) Rule of construction.--Nothing in subsections (a)(27) 
     or (x) of section 1905 of the Social Security Act (42 U.S.C. 
     1396d), as added by paragraph (1), shall be construed as 
     implying that a State medicaid program under title XIX of 
     such Act could not have treated, prior to the date of 
     enactment of this Act, any of the primary and secondary 
     medical strategies and treatment and services described in 
     such subsections as medical assistance under such program, 
     including as early and periodic screening, diagnostic, and 
     treatment services under section 1905(r) of such Act.
       (b) Federal Reimbursement for Education and Other Services 
     Related to the Prevention and Treatment of Sickle Cell 
     Disease.--Section 1903(a)(3) of the Social Security Act (42 
     U.S.C. 1396b(a)(3)) is amended--
       (1) in subparagraph (D), by striking ``plus'' at the end 
     and inserting ``and''; and
       (2) by adding at the end the following:
       ``(E) 50 percent of the sums expended with respect to costs 
     incurred during such quarter as are attributable to 
     providing--
       ``(i) services to identify and educate individuals who are 
     likely to be eligible for medical assistance under this title 
     and who have Sickle Cell Disease or who are carriers of the 
     sickle cell gene, including education regarding how to 
     identify such individuals; or
       ``(ii) education regarding the risks of stroke and other 
     complications, as well as the prevention of stroke and other 
     complications, in individuals who are likely to be eligible 
     for medical assistance under this title and who have Sickle 
     Cell Disease; plus''.
       (c) Demonstration Program for the Development and 
     Establishment of Systemic Mechanisms for the Prevention and 
     Treatment of Sickle Cell Disease.--
       (1) Authority to conduct demonstration program.--
       (A) In general.--The Administrator, through the Bureau of 
     Primary Health Care and the Maternal and Child Health Bureau, 
     shall conduct a demonstration program by making grants to up 
     to 40 eligible entities for each fiscal year in which the 
     program is conducted under this section for the purpose of 
     developing and establishing systemic mechanisms to improve 
     the prevention and treatment of Sickle Cell Disease, 
     including through--
       (i) the coordination of service delivery for individuals 
     with Sickle Cell Disease;
       (ii) genetic counseling and testing;
       (iii) bundling of technical services related to the 
     prevention and treatment of Sickle Cell Disease;
       (iv) training of health professionals; and
       (v) identifying and establishing other efforts related to 
     the expansion and coordination of education, treatment, and 
     continuity of care programs for individuals with Sickle Cell 
     Disease.
       (B) Grant award requirements.--
       (i) Geographic diversity.--The Administrator shall, to the 
     extent practicable, award

[[Page 8981]]

     grants under this section to eligible entities located in 
     different regions of the United States.
       (ii) Priority.--In awarding grants under this subsection, 
     the Administrator shall give priority to awarding grants to 
     eligible entities that are--

       (I) Federally-qualified health centers that have a 
     partnership or other arrangement with a comprehensive Sickle 
     Cell Disease treatment center that does not receive funds 
     from the National Institutes of Health; or
       (II) Federally-qualified health centers that intend to 
     develop a partnership or other arrangement with a 
     comprehensive Sickle Cell Disease treatment center that does 
     not receive funds from the National Institutes of Health.

       (2) Additional requirements.--An eligible entity awarded a 
     grant under this subsection shall use funds made available 
     under the grant to carry out, in addition to the activities 
     described in paragraph (1)(A), the following activities:
       (A) To facilitate and coordinate the delivery of education, 
     treatment, and continuity of care for individuals with Sickle 
     Cell Disease under--
       (i) the entity's collaborative agreement with a community-
     based Sickle Cell Disease organization or a nonprofit entity 
     that works with individuals who have Sickle Cell Disease;
       (ii) the Sickle Cell Disease newborn screening program for 
     the State in which the entity is located; and
       (iii) the maternal and child health program under title V 
     of the Social Security Act (42 U.S.C. 701 et seq.) for the 
     State in which the entity is located.
       (B) To train nursing and other health staff who provide 
     care for individuals with Sickle Cell Disease.
       (C) To enter into a partnership with adult or pediatric 
     hematologists in the region and other regional experts in 
     Sickle Cell Disease at tertiary and academic health centers 
     and State and county health offices.
       (D) To identify and secure resources for ensuring 
     reimbursement under the medicaid program, State children's 
     health insurance program, and other health programs for the 
     prevention and treatment of Sickle Cell Disease.
       (3) National coordinating center.--
       (A) Establishment.--The Administrator shall enter into a 
     contract with an entity to serve as the National Coordinating 
     Center for the demonstration program conducted under this 
     subsection.
       (B) Activities described.--The National Coordinating Center 
     shall--
       (i) collect, coordinate, monitor, and distribute data, best 
     practices, and findings regarding the activities funded under 
     grants made to eligible entities under the demonstration 
     program;
       (ii) develop a model protocol for eligible entities with 
     respect to the prevention and treatment of Sickle Cell 
     Disease;
       (iii) develop educational materials regarding the 
     prevention and treatment of Sickle Cell Disease; and
       (iv) prepare and submit to Congress a final report that 
     includes recommendations regarding the effectiveness of the 
     demonstration program conducted under this subsection and 
     such direct outcome measures as--

       (I) the number and type of health care resources utilized 
     (such as emergency room visits, hospital visits, length of 
     stay, and physician visits for individuals with Sickle Cell 
     Disease); and
       (II) the number of individuals that were tested and 
     subsequently received genetic counseling for the sickle cell 
     trait.

       (4) Application.--An eligible entity desiring a grant under 
     this subsection shall submit an application to the 
     Administrator at such time, in such manner, and containing 
     such information as the Administrator may require.
       (5) Definitions.--In this subsection:
       (A) Administrator.--The term ``Administrator'' means the 
     Administrator of the Health Resources and Services 
     Administration.
       (B) Eligible entity.--The term ``eligible entity'' means a 
     Federally-qualified health center, a nonprofit hospital or 
     clinic, or a university health center that provides primary 
     health care, that--
       (i) has a collaborative agreement with a community-based 
     Sickle Cell Disease organization or a nonprofit entity with 
     experience in working with individuals who have Sickle Cell 
     Disease; and
       (ii) demonstrates to the Administrator that either the 
     Federally-qualified health center, the nonprofit hospital or 
     clinic, the university health center, the organization or 
     entity described in clause (i), or the experts described in 
     paragraph (2)(C), has at least 5 years of experience in 
     working with individuals who have Sickle Cell Disease.
       (C) Federally-qualified health center.--The term 
     ``Federally-qualified health center'' has the meaning given 
     that term in section 1905(l)(2)(B) of the Social Security Act 
     (42 U.S.C. 1396d(l)(2)(B)).
       (6) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection, $10,000,000 
     for each of fiscal years 2005 through 2009.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) take effect on the date of enactment of this Act and 
     apply to medical assistance and services provided under title 
     XIX of the Social Security Act (42 U.S.C. 1396 et seq.) on or 
     after that date.
       Beginning on page 558, line 1, strike all through page 559, 
     line 5.
       On page 930, after line 18, add the following:

    TITLE IX--OFFICE OF FEDERAL PROCUREMENT POLICY ACT IMPROVEMENTS

     SEC. 901. REPORT ON ACQUISITIONS OF GOODS FROM FOREIGN 
                   SOURCES.

       (a) Report.--The Office of Federal Procurement Policy Act 
     (41 U.S.C. 403 et seq.), as amended by this Act, is further 
     amended by adding at the end the following new section:

     ``SEC. 43. REPORT ON ACQUISITIONS OF GOODS FROM FOREIGN 
                   SOURCES.

       ``(a) Not later than 60 days after the end of each fiscal 
     year, the head of each executive agency shall submit to 
     Congress a report on the acquisitions that were made of 
     articles, materials, or supplies by such executive agency in 
     that fiscal year from entities that manufacture the articles, 
     materials, or supplies outside the United States.
       ``(b) The report for a fiscal year under subsection (a) 
     shall separately indicate the following information:
       ``(1) The dollar value of any articles, materials, or 
     supplies that were manufactured outside the United States.
       ``(2) An itemized list of all waivers granted with respect 
     to such articles, materials, or supplies under the Buy 
     American Act (41 U.S.C. 10a et seq.).
       ``(3) A summary of--
       ``(A) the total procurement funds expended on articles, 
     materials, and supplies manufactured inside the United 
     States; and
       ``(B) the total procurement funds expended on articles, 
     materials, and supplies manufactured outside the United 
     States.
       ``(c) The head of each executive agency submitting a report 
     under subsection (a) shall make the report publicly available 
     by posting on an Internet website.
       ``(d) Subsection (a) shall not apply to any procurement for 
     national security purposes entered into by--
       ``(1) the Department of Defense or any agency or entity 
     thereof;
       ``(2) the Department of the Army, the Department of the 
     Navy, the Department of the Air Force, or any agency or 
     entity of any of the military departments;
       ``(3) the Department of Homeland Security;
       ``(4) the Department of Energy or any agency or entity 
     thereof, with respect to the national security programs of 
     that Department; or
       ``(5) any element of the intelligence community.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of the Office of Federal Procurement Policy Act is 
     amended by adding at the end the following new item:

``Sec. 43. Report on acquisitions of goods from foreign sources.''.

       (c) Commerce Department Report.--Not later than 60 days 
     after the end of each fiscal year ending after the date of 
     the enactment of this Act, the Secretary of Commerce shall 
     submit to Congress and make publicly available by posting on 
     an Internet website a report on the acquisitions by foreign 
     governments of articles, materials, or supplies that were 
     manufactured or extracted in the United States in that fiscal 
     year. Such report shall indicate the dollar value of such 
     articles, materials, or supplies.

                          ____________________