[Congressional Record (Bound Edition), Volume 150 (2004), Part 8]
[Senate]
[Pages 10351-10379]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3176. Ms. LANDRIEU submitted an amendment intended to be proposed 
by her to the bill S. 2400, to authorize appropriations for fiscal year 
2005 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 130, between lines 9 and 10, insert the following:

     SEC. 642. FULL SBP SURVIVOR BENEFITS FOR SURVIVING SPOUSES 
                   OVER AGE 62.

       (a) Phased Increase in Basic Annuity to 55 Percent.--(1) 
     Subsection (a)(1)(B)(i) of section 1451 of title 10, United 
     States Code, is amended by striking ``35 percent of the base 
     amount.'' and inserting ``the product of the base amount and 
     the percent applicable for the month. The percent applicable 
     for a month is 35 percent for months beginning before October 
     2005, 40 percent for months beginning after September 2005 
     and before April 2006, 45 percent for months beginning after 
     March 2006 and before April 2007, 50 percent for months 
     beginning after March 2007 and before April 2008, and 55 
     percent for months beginning after March 2008.''.
       (2) Subsection (a)(2)(B)(i)(I) of such section is amended 
     by striking ``35 percent'' and inserting ``the percent 
     specified under paragraph (1)(B)(i) as being applicable for 
     the month''.
       (3) Subsection (c)(1)(B)(i) of such section is amended--
       (A) by striking ``35 percent'' and inserting ``the 
     applicable percent''; and
       (B) by adding at the end the following: ``The percent 
     applicable for a month under the preceding sentence is the 
     percent specified under subsection (a)(1)(B)(i) as being 
     applicable for the month.''.
       (4) The heading for subsection (d)(2)(A) of such section is 
     amended to read as follows: ``Computation   of   Annuity.--
     ''.
       (b) Phased Elimination of Supplemental Annuity.--(1) 
     Section 1457(b) of title 10, United States Code, is amended--
       (A) by striking ``5, 10, 15, or 20 percent'' and inserting 
     ``the applicable percent''; and
       (B) by inserting after the first sentence the following: 
     ``The percent used for the computation shall be an even 
     multiple of 5 percent and, whatever the percent specified in 
     the election, may not exceed 20 percent for months beginning 
     before October 2005, 15 percent for months beginning after 
     September 2005 and before April 2006, 10 percent for months 
     beginning after March 2006 and before April 2007, and 5 
     percent for months beginning after March 2007.''.
       (2) Effective on April 1, 2008, chapter 73 of such title is 
     amended--
       (A) by striking subchapter III; and
       (B) by striking the item relating to subchapter III in the 
     table of subchapters at the beginning of that chapter.
       (c) Recomputation of Annuities.--(1) Effective on the first 
     day of each month referred to in paragraph (2)--
       (A) each annuity under section 1450 of title 10, United 
     States Code, that commenced before that month, is computed 
     under a provision of section 1451 of that title amended by 
     subsection (a), and is payable for that month shall be 
     recomputed so as to be equal to the amount that would be in 
     effect if the percent applicable for that month under that 
     provision, as so amended, had been used for the initial 
     computation of the annuity; and
       (B) each supplemental survivor annuity under section 1457 
     of such title that commenced before that month and is payable 
     for that month shall be recomputed so as to be equal to the 
     amount that would be in effect if the percent applicable for 
     that month under that section, as amended by this section, 
     had been used for the initial computation of the supplemental 
     survivor annuity.
       (2) The requirements for recomputation of annuities under 
     paragraph (1) apply with respect to the following months:
       (A) October 2005.
       (B) April 2006.
       (C) April 2007.
       (D) April 2008.
       (d) Recomputation of Retired Pay Reductions for 
     Supplemental Survivor Annuities.--The Secretary of Defense 
     shall take such actions as are necessitated by the amendments 
     made by subsection (b) and the requirements of subsection 
     (c)(1)(B) to ensure that the reductions in retired pay under 
     section 1460 of title 10, United States Code, are adjusted to 
     achieve the objectives set forth in subsection (b) of that 
     section.
       (e) Open Enrollment Period For Survivor Benefit Plan 
     Commencing October 1, 2005.--(1)(A) An eligible retired or 
     former member may elect to participate in the Survivor 
     Benefit Plan under subchapter II of chapter 73 of title 10, 
     United States Code, during the open enrollment period 
     specified in paragraph (5).
       (B) An eligible retired or former member who elects under 
     subparagraph (A) to participate in the Survivor Benefit Plan 
     at the maximum level may also elect during the open 
     enrollment period to participate in the Supplemental Survivor 
     Benefit Plan established under subchapter III of chapter 73 
     of title 10, United States Code.
       (C) For purposes of subparagraphs (A) and (B), an eligible 
     retired or former member is a member or former member of the 
     uniformed services who on the day before the first day of the 
     open enrollment period is not a participant in the Survivor 
     Benefit Plan and--
       (i) is entitled to retired pay; or
       (ii) would be entitled to retired pay under chapter 1223 of 
     title 10, United States Code, but for the fact that such 
     member or former member is under 60 years of age.
       (D) A person making an election under subparagraph (A) by 
     reason of eligibility under subparagraph (C)(i) shall be 
     treated for all purposes as providing a standard annuity 
     under the Survivor Benefit Plan.
       (E) A person making an election under subparagraph (A) by 
     reason of eligibility under subparagraph (C)(ii) shall be 
     treated for all purposes as providing a reserve-component 
     annuity under the Survivor Benefit Plan.
       (2) A person who on the day before the first day of the 
     open enrollment period is a participant in the Survivor 
     Benefit Plan but is not participating at the maximum base 
     amount or is providing coverage under the Plan for a 
     dependent child and not for the person's spouse or former 
     spouse may, during the open enrollment period, elect to--
       (A) participate in the Plan at a higher base amount (not in 
     excess of the participant's retired pay); or
       (B) provide annuity coverage under the Plan for the 
     person's spouse or former spouse at a base amount not less 
     than the base amount provided for the dependent child.
       (3)(A) A person who is eligible to make an election under 
     this paragraph may elect during the open enrollment period to 
     participate in the Supplemental Survivor Benefit Plan 
     established under subchapter III of chapter 73 of title 10, 
     United States Code.
       (B) Except as provided in subparagraph (C), a person is 
     eligible to make an election under subparagraph (A) if on the 
     day before the first day of the open enrollment period the 
     person--
       (i) is a participant in the Survivor Benefit Plan at the 
     maximum level, or during the open enrollment period the 
     person increases the level of such participation to the 
     maximum level under paragraph (2) of this subsection; and
       (ii) under that Plan is providing annuity coverage for the 
     person's spouse or a former spouse.
       (C) A person is not eligible to make an election under 
     subparagraph (A) if (as determined by the Secretary 
     concerned) the annuity of a spouse or former spouse 
     beneficiary of that person under the Survivor Benefit Plan is 
     to be computed under section 1451(e) of title 10, United 
     States Code. However, such a person may during the open 
     enrollment period waive the right to have that annuity 
     computed under such section 1451(e). Any such election is 
     irrevocable. A person making such a waiver may make an 
     election under subparagraph (A) as in the case of any other 
     participant in the Survivor Benefit Plan.
       (4) An election under this subsection shall be made in 
     writing, signed by the person making the election, and 
     received by the Secretary concerned before the end of the 
     open enrollment period. Any such election shall be made 
     subject to the same conditions, and with the same 
     opportunities for

[[Page 10352]]

     designation of beneficiaries and specification of base 
     amount, that apply under the Survivor Benefit Plan or the 
     Supplemental Survivor Benefit Plan, as the case may be. A 
     person making an election under paragraph (1) to provide a 
     reserve-component annuity shall make a designation described 
     in section 1448(e) of title 10, United States Code. Any such 
     election shall be effective as of the first day of the first 
     calendar month following the month in which the election is 
     received by the Secretary concerned.
       (5) The open enrollment period under this section shall be 
     the one-year period beginning on October 1, 2005.
       (6) If a person making an election under this subsection 
     dies before the end of the two-year period beginning on the 
     effective date of the election, the election is void and the 
     amount of any reduction in retired pay of the person that is 
     attributable to the election shall be paid in a lump sum to 
     the person who would have been the deceased person's 
     beneficiary under the voided election if the deceased person 
     had died after the end of such two-year period.
       (7) The provisions of sections 1449, 1453, and 1454 of 
     title 10, United States Code, are applicable to a person 
     making an election, and to an election, under this subsection 
     in the same manner as if the election were made under the 
     Survivor Benefit Plan or the Supplemental Survivor Benefit 
     Plan, as the case may be.
       (8) The Secretary of Defense may require that the premium 
     for a person making an election under paragraph (1)(A) or (2) 
     include, in addition to the amount required under section 
     1452(a) of title 10, United States Code, an amount determined 
     under regulations prescribed by the Secretary of Defense for 
     the purposes of this subsection. Any such amount shall be 
     stated as a percentage of the base amount of the person 
     making the election and shall reflect the number of years 
     that have elapsed since the person retired, but may not 
     exceed 4.5 percent of that person's base amount.
       (f) Report Concerning Open Season.--Not later than July 1, 
     2005, the Secretary of Defense shall submit to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives a report on the open season authorized by 
     subsection (e) for the Survivor Benefit Plan. The report 
     shall include the following:
       (1) A description of the Secretary's plans for 
     implementation of the open season.
       (2) The Secretary's estimates of the costs associated with 
     the open season, including any anticipated effect of the open 
     season on the actuarial status of the Department of Defense 
     Military Retirement Fund.
       (3) Any recommendation by the Secretary for further 
     legislative action.
                                 ______
                                 
  SA 3177. Mr. CHAFEE submitted an amendment intended to be proposed by 
him to the bill S. 2400, to authorize appropriations for fiscal year 
2005 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 176, after line 21, insert the following:

     SEC. 844. APPLICABILITY OF BERRY AMENDMENT TO PROCUREMENTS OF 
                   ARMED FORCES UNIFORMS AND UNIFORM ITEMS WITH 
                   NONAPPROPRIATED FUNDS.

       (a) Applicability.--Section 2533a of title 10, United 
     States Code, is amended--
       (1) in subsection (b)(1), by striking subparagraph (B) and 
     inserting the following:
       ``(B) clothing, including--
       ``(i) uniforms (including uniform headware) of the armed 
     forces; and
       ``(ii) insignia, medals, other award appurtenances and 
     decorations, other devices and accessories, belts, and belt 
     buckles for armed forces uniforms;''; and
       (2) in subsection (g), by inserting ``, other than uniforms 
     and uniform items described in clauses (i) and (ii) of 
     subsection (b)(1)(B),'' after ``items''.
       (b) Effective Date and Applicability.--This section and the 
     amendments made by this section shall take effect 180 days 
     after the date of the enactment of this Act and shall apply 
     with respect to expenditures made on or after such effective 
     date.
                                 ______
                                 
  SA 3178. Mr. GREGG (for himself and Mr. Kennedy) proposed an 
amendment to the bill S. 15, to amend the Public Health Service Act to 
provide protections and countermeasures against chemical, radiological, 
or nuclear agents that may be used in a terrorist attack against the 
United States by giving the National Institutes of Health contracting 
flexibility, infrastructure improvements, and expediting the scientific 
peer review process, and streamlining the Food and Drug Administration 
approval process of countermeasures; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Project BioShield Act of 
     2004''.

     SEC. 2. BIOMEDICAL COUNTERMEASURE RESEARCH AND DEVELOPMENT--
                   AUTHORITIES.

       (a) In General.--Part B of title III of the Public Health 
     Service Act (42 U.S.C. 243 et seq.) is amended by inserting 
     after section 319F the following section:

     ``SEC. 319F-1. AUTHORITY FOR USE OF CERTAIN PROCEDURES 
                   REGARDING QUALIFIED COUNTERMEASURE RESEARCH AND 
                   DEVELOPMENT ACTIVITIES.

       ``(a) In General.--
       ``(1) Authority.--In conducting and supporting research and 
     development activities regarding countermeasures under 
     section 319F(h), the Secretary may conduct and support such 
     activities in accordance with this section and, in 
     consultation with the Director of the National Institutes of 
     Health, as part of the program under section 446, if the 
     activities concern qualified countermeasures.
       ``(2) Qualified countermeasure.--For purposes of this 
     section, the term `qualified countermeasure' means a drug (as 
     that term is defined by section 201(g)(1) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 321(g)(1))), 
     biological product (as that term is defined by section 351(i) 
     of this Act (42 U.S.C. 262(i))), or device (as that term is 
     defined by section 201(h) of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 321(h))) that the Secretary 
     determines to be a priority (consistent with sections 302(2) 
     and 304(a) of the Homeland Security Act of 2002) to--
       ``(A) treat, identify, or prevent harm from any biological, 
     chemical, radiological, or nuclear agent that may cause a 
     public health emergency affecting national security; or
       ``(B) treat, identify, or prevent harm from a condition 
     that may result in adverse health consequences or death and 
     may be caused by administering a drug, biological product, or 
     device that is used as described in subparagraph (A).
       ``(3) Interagency cooperation.--
       ``(A) In general.--In carrying out activities under this 
     section, the Secretary is authorized, subject to subparagraph 
     (B), to enter into interagency agreements and other 
     collaborative undertakings with other agencies of the United 
     States Government.
       ``(B) Limitation.--An agreement or undertaking under this 
     paragraph shall not authorize another agency to exercise the 
     authorities provided by this section.
       ``(4) Availability of facilities to the secretary.--In any 
     grant, contract, or cooperative agreement entered into under 
     the authority provided in this section with respect to a 
     biocontainment laboratory or other related or ancillary 
     specialized research facility that the Secretary determines 
     necessary for the purpose of performing, administering, or 
     supporting qualified countermeasure research and development, 
     the Secretary may provide that the facility that is the 
     object of such grant, contract, or cooperative agreement 
     shall be available as needed to the Secretary to respond to 
     public health emergencies affecting national security.
       ``(5) Transfers of qualified countermeasures.--Each 
     agreement for an award of a grant, contract, or cooperative 
     agreement under section 319F(h) for the development of a 
     qualified countermeasure shall provide that the recipient of 
     the award will comply with all applicable export-related 
     controls with respect to such countermeasure.
       ``(b) Expedited Procurement Authority.--
       ``(1) Increased simplified acquisition threshold for 
     qualified countermeasure procurements.--
       ``(A) In general.--For any procurement by the Secretary of 
     property or services for use (as determined by the Secretary) 
     in performing, administering, or supporting qualified 
     countermeasure research or development activities under this 
     section that the Secretary determines necessary to respond to 
     pressing research and development needs under this section, 
     the amount specified in section 4(11) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403(11)), as 
     applicable pursuant to section 302A(a) of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     252a(a)), shall be deemed to be $25,000,000 in the 
     administration, with respect to such procurement, of--
       ``(i) section 303(g)(1)(A) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(A)) 
     and its implementing regulations; and
       ``(ii) section 302A(b) of such Act (41 U.S.C. 252a(b)) and 
     its implementing regulations.
       ``(B) Application of certain provisions.--Notwithstanding 
     subparagraph (A) and the provision of law and regulations 
     referred to in such subparagraph, each of the following 
     provisions shall apply to procurements described in this 
     paragraph to the same extent that such provisions would apply 
     to such procurements in the absence of subparagraph (A):
       ``(i) Chapter 37 of title 40, United States Code (relating 
     to contract work hours and safety standards).
       ``(ii) Subsections (a) and (b) of section 7 of the Anti-
     Kickback Act of 1986 (41 U.S.C. 57(a) and (b)).

[[Page 10353]]

       ``(iii) Section 304C of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 254d) 
     (relating to the examination of contractor records).
       ``(iv) Section 3131 of title 40, United States Code 
     (relating to bonds of contractors of public buildings or 
     works).
       ``(v) Subsection (a) of section 304 of the Federal Property 
     and Administrative Services Act of 1949 (41 U.S.C. 254(a)) 
     (relating to contingent fees to middlemen).
       ``(vi) Section 6002 of the Solid Waste Disposal Act (42 
     U.S.C. 6962).
       ``(vii) Section 1354 of title 31, United States Code 
     (relating to the limitation on the use of appropriated funds 
     for contracts with entities not meeting veterans employment 
     reporting requirements).
       ``(C) Internal controls to be instituted.--The Secretary 
     shall institute appropriate internal controls for 
     procurements that are under this paragraph, including 
     requirements with regard to documenting the justification for 
     use of the authority in this paragraph with respect to the 
     procurement involved.
       ``(D) Authority to limit competition.--In conducting a 
     procurement under this paragraph, the Secretary may not use 
     the authority provided for under subparagraph (A) to conduct 
     a procurement on a basis other than full and open competition 
     unless the Secretary determines that the mission of the 
     BioShield Program under the Project BioShield Act of 2004 
     would be seriously impaired without such a limitation.
       ``(2) Procedures other than full and open competition.--
       ``(A) In general.--In using the authority provided in 
     section 303(c)(1) of title III of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253(c)(1)) to 
     use procedures other than competitive procedures in the case 
     of a procurement described in paragraph (1) of this 
     subsection, the phrase `available from only one responsible 
     source' in such section 303(c)(1) shall be deemed to mean 
     `available from only one responsible source or only from a 
     limited number of responsible sources'.
       ``(B) Relation to other authorities.--The authority under 
     subparagraph (A) is in addition to any other authority to use 
     procedures other than competitive procedures.
       ``(C) Applicable government-wide regulations.--The 
     Secretary shall implement this paragraph in accordance with 
     government-wide regulations implementing such section 
     303(c)(1) (including requirements that offers be solicited 
     from as many potential sources as is practicable under the 
     circumstances, that required notices be published, and that 
     submitted offers be considered), as such regulations apply to 
     procurements for which an agency has authority to use 
     procedures other than competitive procedures when the 
     property or services needed by the agency are available from 
     only one responsible source or only from a limited number of 
     responsible sources and no other type of property or services 
     will satisfy the needs of the agency.
       ``(3) Increased micropurchase threshold.--
       ``(A) In general.--For a procurement described by paragraph 
     (1), the amount specified in subsections (c), (d), and (f) of 
     section 32 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 428) shall be deemed to be $15,000 in the 
     administration of that section with respect to such 
     procurement.
       ``(B) Internal controls to be instituted.--The Secretary 
     shall institute appropriate internal controls for purchases 
     that are under this paragraph and that are greater than 
     $2,500.
       ``(C) Exception to preference for purchase card 
     mechanism.--No provision of law establishing a preference for 
     using a Government purchase card method for purchases shall 
     apply to purchases that are under this paragraph and that are 
     greater than $2,500.
       ``(4) Review.--
       ``(A) Review allowed.--Notwithstanding subsection (f), 
     section 1491 of title 28, United States Code, and section 
     3556 of title 31 of such Code, review of a contracting agency 
     decision relating to a procurement described in paragraph (1) 
     may be had only by filing a protest--
       ``(i) with a contracting agency; or
       ``(ii) with the Comptroller General under subchapter V of 
     chapter 35 of title 31, United States Code.
       ``(B) Override of stay of contract award or performance 
     committed to agency discretion.--Notwithstanding section 1491 
     of title 28, United States Code, and section 3553 of title 31 
     of such Code, the following authorizations by the head of a 
     procuring activity are committed to agency discretion:
       ``(i) An authorization under section 3553(c)(2) of title 
     31, United States Code, to award a contract for a procurement 
     described in paragraph (1) of this subsection.
       ``(ii) An authorization under section 3553(d)(3)(C) of such 
     title to perform a contract for a procurement described in 
     paragraph (1) of this subsection.
       ``(c) Authority to Expedite Peer Review.--
       ``(1) In general.--The Secretary may, as the Secretary 
     determines necessary to respond to pressing qualified 
     countermeasure research and development needs under this 
     section, employ such expedited peer review procedures 
     (including consultation with appropriate scientific experts) 
     as the Secretary, in consultation with the Director of NIH, 
     deems appropriate to obtain assessment of scientific and 
     technical merit and likely contribution to the field of 
     qualified countermeasure research, in place of the peer 
     review and advisory council review procedures that would be 
     required under sections 301(a)(3), 405(b)(1)(B), 405(b)(2), 
     406(a)(3)(A), 492, and 494, as applicable to a grant, 
     contract, or cooperative agreement--
       ``(A) that is for performing, administering, or supporting 
     qualified countermeasure research and development activities; 
     and
       ``(B) the amount of which is not greater than $1,500,000.
       ``(2) Subsequent phases of research.--The Secretary's 
     determination of whether to employ expedited peer review with 
     respect to any subsequent phases of a research grant, 
     contract, or cooperative agreement under this section shall 
     be determined without regard to the peer review procedures 
     used for any prior peer review of that same grant, contract, 
     or cooperative agreement. Nothing in the preceding sentence 
     may be construed to impose any requirement with respect to 
     peer review not otherwise required under any other law or 
     regulation.
       ``(d) Authority for Personal Services Contracts.--
       ``(1) In general.--For the purpose of performing, 
     administering, or supporting qualified countermeasure 
     research and development activities, the Secretary may, as 
     the Secretary determines necessary to respond to pressing 
     qualified countermeasure research and development needs under 
     this section, obtain by contract (in accordance with section 
     3109 of title 5, United States Code, but without regard to 
     the limitations in such section on the period of service and 
     on pay) the personal services of experts or consultants who 
     have scientific or other professional qualifications, except 
     that in no case shall the compensation provided to any such 
     expert or consultant exceed the daily equivalent of the 
     annual rate of compensation for the President.
       ``(2) Federal tort claims act coverage.--
       ``(A) In general.--A person carrying out a contract under 
     paragraph (1), and an officer, employee, or governing board 
     member of such person, shall, subject to a determination by 
     the Secretary, be deemed to be an employee of the Department 
     of Health and Human Services for purposes of claims under 
     sections 1346(b) and 2672 of title 28, United States Code, 
     for money damages for personal injury, including death, 
     resulting from performance of functions under such contract.
       ``(B) Exclusivity of remedy.--The remedy provided by 
     subparagraph (A) shall be exclusive of any other civil action 
     or proceeding by reason of the same subject matter against 
     the entity involved (person, officer, employee, or governing 
     board member) for any act or omission within the scope of the 
     Federal Tort Claims Act.
       ``(C) Recourse in case of gross misconduct or contract 
     violation.--
       ``(i) In general.--Should payment be made by the United 
     States to any claimant bringing a claim under this paragraph, 
     either by way of administrative determination, settlement, or 
     court judgment, the United States shall have, notwithstanding 
     any provision of State law, the right to recover against any 
     entity identified in subparagraph (B) for that portion of the 
     damages so awarded or paid, as well as interest and any costs 
     of litigation, resulting from the failure of any such entity 
     to carry out any obligation or responsibility assumed by such 
     entity under a contract with the United States or from any 
     grossly negligent or reckless conduct or intentional or 
     willful misconduct on the part of such entity.
       ``(ii) Venue.--The United States may maintain an action 
     under this subparagraph against such entity in the district 
     court of the United States in which such entity resides or 
     has its principal place of business.
       ``(3) Internal controls to be instituted.--
       ``(A) In general.--The Secretary shall institute 
     appropriate internal controls for contracts under this 
     subsection, including procedures for the Secretary to make a 
     determination of whether a person, or an officer, employee, 
     or governing board member of a person, is deemed to be an 
     employee of the Department of Health and Human Services 
     pursuant to paragraph (2).
       ``(B) Determination of employee status to be final.--A 
     determination by the Secretary under subparagraph (A) that a 
     person, or an officer, employee, or governing board member of 
     a person, is or is not deemed to be an employee of the 
     Department of Health and Human Services shall be final and 
     binding on the Secretary and the Attorney General and other 
     parties to any civil action or proceeding.
       ``(4) Number of personal services contracts limited.--The 
     number of experts and consultants whose personal services are 
     obtained under paragraph (1) shall not exceed 30 at any time.
       ``(e) Streamlined Personnel Authority.--
       ``(1) In general.--In addition to any other personnel 
     authorities, the Secretary may, as the Secretary determines 
     necessary to respond to pressing qualified countermeasure 
     research and development needs under this

[[Page 10354]]

     section, without regard to those provisions of title 5, 
     United States Code, governing appointments in the competitive 
     service, and without regard to the provisions of chapter 51 
     and subchapter III of chapter 53 of such title relating to 
     classification and General Schedule pay rates, appoint 
     professional and technical employees, not to exceed 30 such 
     employees at any time, to positions in the National 
     Institutes of Health to perform, administer, or support 
     qualified countermeasure research and development activities 
     in carrying out this section.
       ``(2) Limitations.--The authority provided for under 
     paragraph (1) shall be exercised in a manner that--
       ``(A) recruits and appoints individuals based solely on 
     their abilities, knowledge, and skills;
       ``(B) does not discriminate for or against any applicant 
     for employment on any basis described in section 2302(b)(1) 
     of title 5, United States Code;
       ``(C) does not allow an official to appoint an individual 
     who is a relative (as defined in section 3110(a)(3) of such 
     title) of such official;
       ``(D) does not discriminate for or against an individual 
     because of the exercise of any activity described in 
     paragraph (9) or (10) of section 2302(b) of such title; and
       ``(E) accords a preference, among equally qualified 
     persons, to persons who are preference eligibles (as defined 
     in section 2108(3) of such title).
       ``(3) Internal controls to be instituted.--The Secretary 
     shall institute appropriate internal controls for 
     appointments under this subsection.
       ``(f) Actions Committed to Agency Discretion.--Actions by 
     the Secretary under the authority of this section are 
     committed to agency discretion.''.
       (b) Technical Amendment.--Section 481A of the Public Health 
     Service Act (42 U.S.C. 287a-2) is amended--
       (1) in subsection (a)(1), by inserting ``or the Director of 
     the National Institute of Allergy and Infectious Diseases'' 
     after ``Director of the Center'';
       (2) in subsection (c)--
       (A) in paragraph (1), by inserting ``or the Director of the 
     National Institute of Allergy and Infectious Diseases'' after 
     ``Director of the Center''; and
       (B) in paragraph (2), in the matter preceding subparagraph 
     (A), by striking ``subsection (i)'' and inserting 
     ``subsection (i)(1)'';
       (3) in subsection (d), by inserting ``or the Director of 
     the National Institute of Allergy and Infectious Diseases'' 
     after ``Director of the Center'';
       (4) in subsection (e)--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A), by inserting 
     ``or the Director of the National Institute of Allergy and 
     Infectious Diseases'' after ``Director of the Center'';
       (ii) in subparagraph (A), by inserting ``(or, in the case 
     of the Institute, 75 percent)'' after ``50 percent''; and
       (iii) in subparagraph (B), by inserting ``(or, in the case 
     of the Institute, 75 percent)'' after ``40 percent'';
       (B) in paragraph (2), by inserting ``or the Director of the 
     National Institute of Allergy and Infectious Diseases'' after 
     ``Director of the Center''; and
       (C) in paragraph (4), by inserting ``of the Center or the 
     Director of the National Institute of Allergy and Infectious 
     Diseases'' after ``Director'';
       (5) in subsection (f)--
       (A) in paragraph (1), by inserting ``in the case of an 
     award by the Director of the Center,'' before ``the 
     applicant''; and
       (B) in paragraph (2), by inserting ``of the Center or the 
     Director of the National Institute of Allergy and Infectious 
     Diseases'' after ``Director''; and
       (6) in subsection (i)--
       (A) by striking ``Appropriations.--For the purpose of 
     carrying out this section,'' and inserting the following: 
     ``Appropriations.--
       ``(1) Center.--For the purpose of carrying out this section 
     with respect to the Center,''; and
       (B) by adding at the end the following:
       ``(2) National institute of allergy and infectious 
     diseases.--For the purpose of carrying out this section with 
     respect to the National Institute of Allergy and Infectious 
     Diseases, there are authorized to be appropriated such sums 
     as may be necessary for each of the fiscal years 2004 and 
     2005.''.
       (c) Additional Authorizations of Appropriations.--Section 
     2106 of the Public Health Service Act (42 U.S.C. 300aa-6) is 
     amended--
       (1) in subsection (a), by striking ``authorized to be 
     appropriated'' and all that follows and inserting the 
     following: ``authorized to be appropriated such sums as may 
     be necessary for each of the fiscal years 2004 and 2005.''; 
     and
       (2) in subsection (b), by striking ``authorized to be 
     appropriated'' and all that follows and inserting the 
     following: ``authorized to be appropriated such sums as may 
     be necessary for each of the fiscal years 2004 and 2005.''.
       (d) Technical Amendments.--Section 319F of the Public 
     Health Service Act (42 U.S.C. 247d-6) is amended--
       (1) in subsection (a), by inserting ``the Secretary of 
     Homeland Security,'' after ``Management Agency,''; and
       (2) in subsection (h)(4)(B), by striking ``to diagnose 
     conditions'' and inserting ``to treat, identify, or prevent 
     conditions''.
       (e) Rule of Construction.--Nothing in this section has any 
     legal effect on sections 302(2), 302(4), 304(a), or 304(b) of 
     the Homeland Security Act of 2002.

     SEC. 3. BIOMEDICAL COUNTERMEASURES PROCUREMENT.

       (a) Additional Authority Regarding Strategic National 
     Stockpile.--
       (1) Transfer of program.--Section 121 of the Public Health 
     Security and Bioterrorism Preparedness and Response Act of 
     2002 (116 Stat. 611; 42 U.S.C. 300hh-12) is transferred from 
     such Act to the Public Health Service Act, is redesignated as 
     section 319F-2, and is inserted after section 319F-1 of the 
     Public Health Service Act (as added by section 2 of this 
     Act).
       (2) Additional authority.--Section 319F-2 of the Public 
     Health Service Act, as added by paragraph (1), is amended to 
     read as follows:

     ``SEC. 319F-2. STRATEGIC NATIONAL STOCKPILE.

       ``(a) Strategic National Stockpile.--
       ``(1) In general.--The Secretary, in coordination with the 
     Secretary of Homeland Security (referred to in this section 
     as the `Homeland Security Secretary'), shall maintain a 
     stockpile or stockpiles of drugs, vaccines and other 
     biological products, medical devices, and other supplies in 
     such numbers, types, and amounts as are determined by the 
     Secretary to be appropriate and practicable, taking into 
     account other available sources, to provide for the emergency 
     health security of the United States, including the emergency 
     health security of children and other vulnerable populations, 
     in the event of a bioterrorist attack or other public health 
     emergency.
       ``(2) Procedures.--The Secretary, in managing the stockpile 
     under paragraph (1), shall--
       ``(A) consult with the working group under section 319F(a);
       ``(B) ensure that adequate procedures are followed with 
     respect to such stockpile for inventory management and 
     accounting, and for the physical security of the stockpile;
       ``(C) in consultation with Federal, State, and local 
     officials, take into consideration the timing and location of 
     special events;
       ``(D) review and revise, as appropriate, the contents of 
     the stockpile on a regular basis to ensure that emerging 
     threats, advanced technologies, and new countermeasures are 
     adequately considered;
       ``(E) devise plans for the effective and timely supply-
     chain management of the stockpile, in consultation with 
     appropriate Federal, State and local agencies, and the public 
     and private health care infrastructure;
       ``(F) deploy the stockpile as required by the Secretary of 
     Homeland Security to respond to an actual or potential 
     emergency;
       ``(G) deploy the stockpile at the discretion of the 
     Secretary to respond to an actual or potential public health 
     emergency or other situation in which deployment is necessary 
     to protect the public health or safety; and
       ``(H) ensure the adequate physical security of the 
     stockpile.
       ``(b) Smallpox Vaccine Development.--
       ``(1) In general.--The Secretary shall award contracts, 
     enter into cooperative agreements, or carry out such other 
     activities as may reasonably be required in order to ensure 
     that the stockpile under subsection (a) includes an amount of 
     vaccine against smallpox as determined by such Secretary to 
     be sufficient to meet the health security needs of the United 
     States.
       ``(2) Rule of construction.--Nothing in this section shall 
     be construed to limit the private distribution, purchase, or 
     sale of vaccines from sources other than the stockpile 
     described in subsection (a).
       ``(c) Additional Authority Regarding Procurement of Certain 
     Biomedical Countermeasures; Availability of Special Reserve 
     Fund.--
       ``(1) In general.--
       ``(A) Use of fund.--A security countermeasure may, in 
     accordance with this subsection, be procured with amounts in 
     the special reserve fund under paragraph (10).
       ``(B) Security countermeasure.--For purposes of this 
     subsection, the term `security countermeasure' means a drug 
     (as that term is defined by section 201(g)(1) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 321(g)(1))), 
     biological product (as that term is defined by section 351(i) 
     of this Act (42 U.S.C. 262(i))), or device (as that term is 
     defined by section 201(h) of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 321(h))) that--
       ``(i)(I) -the Secretary determines to be a priority 
     (consistent with sections 302(2) and 304(a) of the Homeland 
     Security Act of 2002) to treat, identify, or prevent harm 
     from any biological, chemical, radiological, or nuclear agent 
     identified as a material threat under paragraph (2)(A)(ii), 
     or to treat, identify, or prevent harm from a condition that 
     may result in adverse health consequences or death and may be 
     caused by administering a drug, biological product, or device 
     against such an agent;
       ``(II) the Secretary determines under paragraph (2)(B)(ii) 
     to be a necessary countermeasure; and
       ``(III)(aa) is approved or cleared under chapter V of the 
     Federal Food, Drug, and

[[Page 10355]]

     Cosmetic Act or licensed under section 351 of this Act; or
       ``(bb) is a countermeasure for which the Secretary 
     determines that sufficient and satisfactory clinical 
     experience or research data (including data, if available, 
     from pre-clinical and clinical trials) support a reasonable 
     conclusion that the countermeasure will qualify for approval 
     or licensing within eight years after the date of a 
     determination under paragraph (5); or
       ``(ii) is authorized for emergency use under section 564 of 
     the Federal Food, Drug, and Cosmetic Act.
       ``(2) Determination of material threats.--
       ``(A) Material threat.--The Homeland Security Secretary, in 
     consultation with the Secretary and the heads of other 
     agencies as appropriate, shall on an ongoing basis--
       ``(i) assess current and emerging threats of chemical, 
     biological, radiological, and nuclear agents; and
       ``(ii) determine which of such agents present a material 
     threat against the United States population sufficient to 
     affect national security.
       ``(B) Public health impact; necessary countermeasures.--The 
     Secretary shall on an ongoing basis--
       ``(i) assess the potential public health consequences for 
     the United States population of exposure to agents identified 
     under subparagraph (A)(ii); and
       ``(ii) determine, on the basis of such assessment, the 
     agents identified under subparagraph (A)(ii) for which 
     countermeasures are necessary to protect the public health.
       ``(C) Notice to congress.--The Secretary and the Homeland 
     Security Secretary shall promptly notify the designated 
     congressional committees (as defined in paragraph (10)) that 
     a determination has been made pursuant to subparagraph (A) or 
     (B).
       ``(D) Assuring access to threat information.--In making the 
     assessment and determination required under subparagraph (A), 
     the Homeland Security Secretary shall use all relevant 
     information to which such Secretary is entitled under section 
     202 of the Homeland Security Act of 2002, including but not 
     limited to information, regardless of its level of 
     classification, relating to current and emerging threats of 
     chemical, biological, radiological, and nuclear agents.
       ``(3) Assessment of availability and appropriateness of 
     countermeasures.--The Secretary, in consultation with the 
     Homeland Security Secretary, shall assess on an ongoing basis 
     the availability and appropriateness of specific 
     countermeasures to address specific threats identified under 
     paragraph (2).
       ``(4) Call for development of countermeasures; commitment 
     for recommendation for procurement.--
       ``(A) Proposal to the president.--If, pursuant to an 
     assessment under paragraph (3), the Homeland Security 
     Secretary and the Secretary make a determination that a 
     countermeasure would be appropriate but is either currently 
     unavailable for procurement as a security countermeasure or 
     is approved, licensed, or cleared only for alternative uses, 
     such Secretaries may jointly submit to the President a 
     proposal to--
       ``(i) issue a call for the development of such 
     countermeasure; and
       ``(ii) make a commitment that, upon the first development 
     of such countermeasure that meets the conditions for 
     procurement under paragraph (5), the Secretaries will, based 
     in part on information obtained pursuant to such call, make a 
     recommendation under paragraph (6) that the special reserve 
     fund under paragraph (10) be made available for the 
     procurement of such countermeasure.
       ``(B) Countermeasure specifications.--The Homeland Security 
     Secretary and the Secretary shall, to the extent practicable, 
     include in the proposal under subparagraph (A)--
       ``(i) estimated quantity of purchase (in the form of number 
     of doses or number of effective courses of treatments 
     regardless of dosage form);
       ``(ii) necessary measures of minimum safety and 
     effectiveness;
       ``(iii) estimated price for each dose or effective course 
     of treatment regardless of dosage form; and
       ``(iv) other information that may be necessary to encourage 
     and facilitate research, development, and manufacture of the 
     countermeasure or to provide specifications for the 
     countermeasure.
       ``(C) Presidential approval.--If the President approves a 
     proposal under subparagraph (A), the Homeland Security 
     Secretary and the Secretary shall make known to persons who 
     may respond to a call for the countermeasure involved--
       ``(i) the call for the countermeasure;
       ``(ii) specifications for the countermeasure under 
     subparagraph (B); and
       ``(iii) the commitment described in subparagraph (A)(ii).
       ``(5) Secretary's determination of countermeasures 
     appropriate for funding from special reserve fund.--
       ``(A) In general.--The Secretary, in accordance with the 
     provisions of this paragraph, shall identify specific 
     security countermeasures that the Secretary determines, in 
     consultation with the Homeland Security Secretary, to be 
     appropriate for inclusion in the stockpile under subsection 
     (a) pursuant to procurements made with amounts in the special 
     reserve fund under paragraph (10) (referred to in this 
     subsection individually as a `procurement under this 
     subsection').
       ``(B) Requirements.--In making a determination under 
     subparagraph (A) with respect to a security countermeasure, 
     the Secretary shall determine and consider the following:
       ``(i) The quantities of the product that will be needed to 
     meet the needs of the stockpile.
       ``(ii) The feasibility of production and delivery within 
     eight years of sufficient quantities of the product.
       ``(iii) Whether there is a lack of a significant commercial 
     market for the product at the time of procurement, other than 
     as a security countermeasure.
       ``(6) Recommendation for president's approval.--
       ``(A) Recommendation for procurement.--In the case of a 
     security countermeasure that the Secretary has, in accordance 
     with paragraphs (3) and (5), determined to be appropriate for 
     procurement under this subsection, the Homeland Security 
     Secretary and the Secretary shall jointly submit to the 
     President, in coordination with the Director of the Office of 
     Management and Budget, a recommendation that the special 
     reserve fund under paragraph (10) be made available for the 
     procurement of such countermeasure.
       ``(B) Presidential approval.--The special reserve fund 
     under paragraph (10) is available for a procurement of a 
     security countermeasure only if the President has approved a 
     recommendation under subparagraph (A) regarding the 
     countermeasure.
       ``(C) Notice to designated congressional committees.--The 
     Secretary and the Homeland Security Secretary shall notify 
     the designated congressional committees of each decision of 
     the President to approve a recommendation under subparagraph 
     (A). Such notice shall include an explanation of the decision 
     to make available the special reserve fund under paragraph 
     (10) for procurement of such a countermeasure, including, 
     where available, the number of, nature of, and other 
     information concerning potential suppliers of such 
     countermeasure, and whether other potential suppliers of the 
     same or similar countermeasures were considered and rejected 
     for procurement under this section and the reasons therefor.
       ``(D) Subsequent specific countermeasures.--Procurement 
     under this subsection of a security countermeasure for a 
     particular purpose does not preclude the subsequent 
     procurement under this subsection of any other security 
     countermeasure for such purpose if the Secretary has 
     determined under paragraph (5)(A) that such countermeasure is 
     appropriate for inclusion in the stockpile and if, as 
     determined by the Secretary, such countermeasure provides 
     improved safety or effectiveness, or for other reasons 
     enhances preparedness to respond to threats of use of a 
     biological, chemical, radiological, or nuclear agent. Such a 
     determination by the Secretary is committed to agency 
     discretion.
       ``(E) Rule of construction.--Recommendations and approvals 
     under this paragraph apply solely to determinations that the 
     special reserve fund under paragraph (10) will be made 
     available for a procurement of a security countermeasure, and 
     not to the substance of contracts for such procurement or 
     other matters relating to awards of such contracts.
       ``(7) Procurement.--
       ``(A) In general.--For purposes of a procurement under this 
     subsection that is approved by the President under paragraph 
     (6), the Homeland Security Secretary and the Secretary shall 
     have responsibilities in accordance with subparagraphs (B) 
     and (C).
       ``(B) Interagency agreement; costs.--
       ``(i) Interagency agreement.--The Homeland Security 
     Secretary shall enter into an agreement with the Secretary 
     for procurement of a security countermeasure in accordance 
     with the provisions of this paragraph. The special reserve 
     fund under paragraph (10) shall be available for payments 
     made by the Secretary to a vendor for such procurement.
       ``(ii) Other costs.--The actual costs to the Secretary 
     under this section, other than the costs described in clause 
     (i), shall be paid from the appropriation provided for under 
     subsection (f)(1).
       ``(C) Procurement.--
       ``(i) In general.--The Secretary shall be responsible for--

       ``(I) arranging for procurement of a security 
     countermeasure, including negotiating terms (including 
     quantity, production schedule, and price) of, and entering 
     into, contracts and cooperative agreements, and for carrying 
     out such other activities as may reasonably be required, in 
     accordance with the provisions of this subparagraph; and
       ``(II) promulgating such regulations as the Secretary 
     determines necessary to implement the provisions of this 
     subsection.

       ``(ii) Contract terms.--A contract for procurements under 
     this subsection shall (or, as specified below, may) include 
     the following terms:

       ``(I) Payment conditioned on delivery.--The contract shall 
     provide that no payment may be made until delivery has been 
     made of a portion, acceptable to the Secretary, of the

[[Page 10356]]

     total number of units contracted for, except that, 
     notwithstanding any other provision of law, the contract may 
     provide that, if the Secretary determines (in the Secretary's 
     discretion) that an advance payment is necessary to ensure 
     success of a project, the Secretary may pay an amount, not to 
     exceed 10 percent of the contract amount, in advance of 
     delivery. The contract shall provide that such advance 
     payment is required to be repaid if there is a failure to 
     perform by the vendor under the contract. Nothing in this 
     subclause may be construed as affecting rights of vendors 
     under provisions of law or regulation (including the Federal 
     Acquisition Regulation) relating to termination of contracts 
     for the convenience of the Government.
       ``(II) Discounted payment.--The contract may provide for a 
     discounted price per unit of a product that is not licensed, 
     cleared, or approved as described in paragraph 
     (1)(B)(i)(III)(aa) at the time of delivery, and may provide 
     for payment of an additional amount per unit if the product 
     becomes so licensed, cleared, or approved before the 
     expiration date of the contract (including an additional 
     amount per unit of product delivered before the effective 
     date of such licensing, clearance, or approval).
       ``(III) Contract duration.--The contract shall be for a 
     period not to exceed five years, except that, in first 
     awarding the contract, the Secretary may provide for a longer 
     duration, not exceeding eight years, if the Secretary 
     determines that complexities or other difficulties in 
     performance under the contract justify such a period. The 
     contract shall be renewable for additional periods, none of 
     which shall exceed five years.
       ``(IV) Storage by vendor.--The contract may provide that 
     the vendor will provide storage for stocks of a product 
     delivered to the ownership of the Federal Government under 
     the contract, for such period and under such terms and 
     conditions as the Secretary may specify, and in such case 
     amounts from the special reserve fund under paragraph (10) 
     shall be available for costs of shipping, handling, storage, 
     and related costs for such product.
       ``(V) Product approval.--The contract shall provide that 
     the vendor seek approval, clearance, or licensing of the 
     product from the Secretary; for a timetable for the 
     development of data and other information to support such 
     approval, clearance, or licensing; and that the Secretary may 
     waive part or all of this contract term on request of the 
     vendor or on the initiative of the Secretary.
       ``(VI) Non-stockpile transfers of security 
     countermeasures.--The contract shall provide that the vendor 
     will comply with all applicable export-related controls with 
     respect to such countermeasure.

       ``(iii) Availability of simplified acquisition 
     procedures.--

       ``(I) In general.--If the Secretary determines that there 
     is a pressing need for a procurement of a specific 
     countermeasure, the amount of the procurement under this 
     subsection shall be deemed to be below the threshold amount 
     specified in section 4(11) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(11)), for purposes of 
     application to such procurement, pursuant to section 302A(a) 
     of the Federal Property and Administrative Services Act of 
     1949 (41 U.S.C. 252a(a)), of--

       ``(aa) section 303(g)(1)(A) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(A)) 
     and its implementing regulations; and
       ``(bb) section 302A(b) of such Act (41 U.S.C. 252a(b)) and 
     its implementing regulations.

       ``(II) Application of certain provisions.--Notwithstanding 
     subclause (I) and the provision of law and regulations 
     referred to in such clause, each of the following provisions 
     shall apply to procurements described in this clause to the 
     same extent that such provisions would apply to such 
     procurements in the absence of subclause (I):

       ``(aa) Chapter 37 of title 40, United States Code (relating 
     to contract work hours and safety standards).
       ``(bb) Subsections (a) and (b) of section 7 of the Anti-
     Kickback Act of 1986 (41 U.S.C. 57(a) and (b)).
       ``(cc) Section 304C of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 254d) 
     (relating to the examination of contractor records).
       ``(dd) Section 3131 of title 40, United States Code 
     (relating to bonds of contractors of public buildings or 
     works).
       ``(ee) Subsection (a) of section 304 of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     254(a)) (relating to contingent fees to middlemen).
       ``(ff) Section 6002 of the Solid Waste Disposal Act (42 
     U.S.C. 6962).
       ``(gg) Section 1354 of title 31, United States Code 
     (relating to the limitation on the use of appropriated funds 
     for contracts with entities not meeting veterans employment 
     reporting requirements).

       ``(III) Internal controls to be established.--The Secretary 
     shall establish appropriate internal controls for 
     procurements made under this clause, including requirements 
     with respect to documentation of the justification for the 
     use of the authority provided under this paragraph with 
     respect to the procurement involved.
       ``(IV) Authority to limit competition.--In conducting a 
     procurement under this subparagraph, the Secretary may not 
     use the authority provided for under subclause (I) to conduct 
     a procurement on a basis other than full and open competition 
     unless the Secretary determines that the mission of the 
     BioShield Program under the Project BioShield Act of 2004 
     would be seriously impaired without such a limitation.

       ``(iv) Procedures other than full and open competition.--

       ``(I) In general.--In using the authority provided in 
     section 303(c)(1) of title III of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253(c)(1)) to 
     use procedures other than competitive procedures in the case 
     of a procurement under this subsection, the phrase `available 
     from only one responsible source' in such section 303(c)(1) 
     shall be deemed to mean `available from only one responsible 
     source or only from a limited number of responsible sources'.
       ``(II) Relation to other authorities.--The authority under 
     subclause (I) is in addition to any other authority to use 
     procedures other than competitive procedures.
       ``(III) Applicable government-wide regulations.--The 
     Secretary shall implement this clause in accordance with 
     government-wide regulations implementing such section 
     303(c)(1) (including requirements that offers be solicited 
     from as many potential sources as is practicable under the 
     circumstances, that required notices be published, and that 
     submitted offers be considered), as such regulations apply to 
     procurements for which an agency has authority to use 
     procedures other than competitive procedures when the 
     property or services needed by the agency are available from 
     only one responsible source or only from a limited number of 
     responsible sources and no other type of property or services 
     will satisfy the needs of the agency.

       ``(v) Premium provision in multiple award contracts.--

       ``(I) In general.--If, under this subsection, the Secretary 
     enters into contracts with more than one vendor to procure a 
     security countermeasure, such Secretary may, notwithstanding 
     any other provision of law, include in each of such contracts 
     a provision that--

       ``(aa) identifies an increment of the total quantity of 
     security countermeasure required, whether by percentage or by 
     numbers of units; and
       ``(bb) promises to pay one or more specified premiums based 
     on the priority of such vendors' production and delivery of 
     the increment identified under item (aa), in accordance with 
     the terms and conditions of the contract.

       ``(II) Determination of government's requirement not 
     reviewable.--If the Secretary includes in each of a set of 
     contracts a provision as described in subclause (I), such 
     Secretary's determination of the total quantity of security 
     countermeasure required, and any amendment of such 
     determination, is committed to agency discretion.

       ``(vi) Extension of closing date for receipt of proposals 
     not reviewable.--A decision by the Secretary to extend the 
     closing date for receipt of proposals for a procurement under 
     this subsection is committed to agency discretion.
       ``(vii) Limiting competition to sources responding to 
     request for information.--In conducting a procurement under 
     this subsection, the Secretary may exclude a source that has 
     not responded to a request for information under section 
     303A(a)(1)(B) of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253a(a)(1)(B)) if such 
     request has given notice that the Secretary may so exclude 
     such a source.
       ``(8) Interagency cooperation.--
       ``(A) In general.--In carrying out activities under this 
     section, the Homeland Security Secretary and the Secretary 
     are authorized, subject to subparagraph (B), to enter into 
     interagency agreements and other collaborative undertakings 
     with other agencies of the United States Government.
       ``(B) Limitation.--An agreement or undertaking under this 
     paragraph shall not authorize another agency to exercise the 
     authorities provided by this section to the Homeland Security 
     Secretary or to the Secretary.
       ``(9) Restrictions on use of funds.--Amounts in the special 
     reserve fund under paragraph (10) shall not be used to pay--
       ``(A) costs for the purchase of vaccines under procurement 
     contracts entered into before the date of the enactment of 
     the Project BioShield Act of 2004; or
       ``(B) costs other than payments made by the Secretary to a 
     vendor for a procurement of a security countermeasure under 
     paragraph (7).
       ``(10) Definitions.--
       ``(A) Special reserve fund.--For purposes of this 
     subsection, the term `special reserve fund' has the meaning 
     given such term in section 510 of the Homeland Security Act 
     of 2002.
       ``(B) Designated congressional committees.--For purposes of 
     this section, the term `designated congressional committees' 
     means the following committees of the Congress:
       ``(i) In the House of Representatives: the Committee on 
     Energy and Commerce, the Committee on Appropriations, the 
     Committee on Government Reform, and the Select Committee on 
     Homeland Security (or any successor to the Select Committee).

[[Page 10357]]

       ``(ii) In the Senate: the appropriate committees.
       ``(d) Disclosures.--No Federal agency shall disclose under 
     section 552 of title 5, United States Code, any information 
     identifying the location at which materials in the stockpile 
     under subsection (a) are stored.
       ``(e) Definition.--For purposes of subsection (a), the term 
     `stockpile' includes--
       ``(1) a physical accumulation (at one or more locations) of 
     the supplies described in subsection (a); or
       ``(2) a contractual agreement between the Secretary and a 
     vendor or vendors under which such vendor or vendors agree to 
     provide to such Secretary supplies described in subsection 
     (a).
       ``(f) Authorization of Appropriations.--
       ``(1) Strategic national stockpile.--For the purpose of 
     carrying out subsection (a), there are authorized to be 
     appropriated $640,000,000 for fiscal year 2002, and such sums 
     as may be necessary for each of fiscal years 2003 through 
     2006. Such authorization is in addition to amounts in the 
     special reserve fund referred to in subsection (c)(10)(A).
       ``(2) Smallpox vaccine development.--For the purpose of 
     carrying out subsection (b), there are authorized to be 
     appropriated $509,000,000 for fiscal year 2002, and such sums 
     as may be necessary for each of fiscal years 2003 through 
     2006.''.
       (b) Amendments to Homeland Security Act of 2002.--Title V 
     of the Homeland Security Act of 2002 (116 Stat. 2212; 6 
     U.S.C. 311 et seq.) is amended--
       (1) in section 502(3) (6 U.S.C. 312(3))--
       (A) in subparagraph (B), by striking ``the Strategic 
     National Stockpile,''; and
       (B) in subparagraph (D), by inserting ``, including 
     requiring deployment of the Strategic National Stockpile,'' 
     after ``resources''; and
       (2) by adding at the end the following:

     ``SEC. 510. PROCUREMENT OF SECURITY COUNTERMEASURES FOR 
                   STRATEGIC NATIONAL STOCKPILE.

       ``(a) Authorization of Appropriations.--For the procurement 
     of security countermeasures under section 319F-2(c) of the 
     Public Health Service Act (referred to in this section as the 
     `security countermeasures program'), there is authorized to 
     be appropriated up to $5,593,000,000 for the fiscal years 
     2004 through 2013. Of the amounts appropriated under the 
     preceding sentence, not to exceed $3,418,000,000 may be 
     obligated during the fiscal years 2004 through 2008, of which 
     not to exceed $890,000,000 may be obligated during fiscal 
     year 2004.
       ``(b) Special Reserve Fund.--For purposes of the security 
     countermeasures program, the term `special reserve fund' 
     means the `Biodefense Countermeasures' appropriations account 
     or any other appropriation made under subsection (a).
       ``(c) Availability.--Amounts appropriated under subsection 
     (a) become available for a procurement under the security 
     countermeasures program only upon the approval by the 
     President of such availability for the procurement in 
     accordance with paragraph (6)(B) of such program.
       ``(d) Related Authorizations of Appropriations.--
       ``(1) Threat assessment capabilities.--For the purpose of 
     carrying out the responsibilities of the Secretary for terror 
     threat assessment under the security countermeasures program, 
     there are authorized to be appropriated such sums as may be 
     necessary for each of the fiscal years 2004 through 2006, for 
     the hiring of professional personnel within the Directorate 
     for Information Analysis and Infrastructure Protection, who 
     shall be analysts responsible for chemical, biological, 
     radiological, and nuclear threat assessment (including but 
     not limited to analysis of chemical, biological, 
     radiological, and nuclear agents, the means by which such 
     agents could be weaponized or used in a terrorist attack, and 
     the capabilities, plans, and intentions of terrorists and 
     other non-state actors who may have or acquire such agents). 
     All such analysts shall meet the applicable standards and 
     qualifications for the performance of intelligence activities 
     promulgated by the Director of Central Intelligence pursuant 
     to section 104 of the National Security Act of 1947.
       ``(2) Intelligence sharing infrastructure.--For the purpose 
     of carrying out the acquisition and deployment of secure 
     facilities (including information technology and physical 
     infrastructure, whether mobile and temporary, or permanent) 
     sufficient to permit the Secretary to receive, not later than 
     180 days after the date of enactment of the Project BioShield 
     Act of 2004, all classified information and products to which 
     the Under Secretary for Information Analysis and 
     Infrastructure Protection is entitled under subtitle A of 
     title II, there are authorized to be appropriated such sums 
     as may be necessary for each of the fiscal years 2004 through 
     2006.''.
       (c) Stockpile Functions Transferred.--
       (1) In general.--Except as provided in paragraph (2), there 
     shall be transferred to the Secretary of Health and Human 
     Services the functions, personnel, assets, unexpended 
     balances, and liabilities of the Strategic National 
     Stockpile, including the functions of the Secretary of 
     Homeland Security relating thereto.
       (2) Exceptions.--
       (A) Functions.--The transfer of functions pursuant to 
     paragraph (1) shall not include such functions as are 
     explicitly assigned to the Secretary of Homeland Security by 
     this Act (including the amendments made by this Act).
       (B) Assets and unexpended balances.--The transfer of assets 
     and unexpended balances pursuant to paragraph (1) shall not 
     include the funds appropriated under the heading ``biodefense 
     countermeasures'' in the Department of Homeland Security 
     Appropriations Act, 2004 (Public law 108-90).
       (3) Conforming amendment.--Section 503 of the Homeland 
     Security Act of 2002 (6 U.S.C. 313) is amended by striking 
     paragraph (6).

     SEC. 4. AUTHORIZATION FOR MEDICAL PRODUCTS FOR USE IN 
                   EMERGENCIES.

       (a) In General.--Section 564 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 360bbb-3) is amended to read as 
     follows:

     ``SEC. 564. AUTHORIZATION FOR MEDICAL PRODUCTS FOR USE IN 
                   EMERGENCIES.

       ``(a) In General.--
       ``(1) Emergency uses.--Notwithstanding sections 505, 
     510(k), and 515 of this Act and section 351 of the Public 
     Health Service Act, and subject to the provisions of this 
     section, the Secretary may authorize the introduction into 
     interstate commerce, during the effective period of a 
     declaration under subsection (b), of a drug, device, or 
     biological product intended for use in an actual or potential 
     emergency (referred to in this section as an `emergency 
     use').
       ``(2) Approval status of product.--An authorization under 
     paragraph (1) may authorize an emergency use of a product 
     that--
       ``(A) is not approved, licensed, or cleared for commercial 
     distribution under a provision of law referred to in such 
     paragraph (referred to in this section as an `unapproved 
     product'); or
       ``(B) is approved, licensed, or cleared under such a 
     provision, but which use is not under such provision an 
     approved, licensed, or cleared use of the product (referred 
     to in this section as an `unapproved use of an approved 
     product').
       ``(3) Relation to other uses.--An emergency use authorized 
     under paragraph (1) for a product is in addition to any other 
     use that is authorized for the product under a provision of 
     law referred to in such paragraph.
       ``(4) Definitions.--For purposes of this section:
       ``(A) The term `biological product' has the meaning given 
     such term in section 351 of the Public Health Service Act.
       ``(B) The term `emergency use' has the meaning indicated 
     for such term in paragraph (1).
       ``(C) The term `product' means a drug, device, or 
     biological product.
       ``(D) The term `unapproved product' has the meaning 
     indicated for such term in paragraph (2)(A).
       ``(E) The term `unapproved use of an approved product' has 
     the meaning indicated for such term in paragraph (2)(B).
       ``(b) Declaration of Emergency.--
       ``(1) In general.--The Secretary may declare an emergency 
     justifying the authorization under this subsection for a 
     product on the basis of--
       ``(A) a determination by the Secretary of Homeland Security 
     that there is a domestic emergency, or a significant 
     potential for a domestic emergency, involving a heightened 
     risk of attack with a specified biological, chemical, 
     radiological, or nuclear agent or agents;
       ``(B) a determination by the Secretary of Defense that 
     there is a military emergency, or a significant potential for 
     a military emergency, involving a heightened risk to United 
     States military forces of attack with a specified biological, 
     chemical, radiological, or nuclear agent or agents; or
       ``(C) a determination by the Secretary of a public health 
     emergency under section 319 of the Public Health Service Act 
     that affects, or has a significant potential to affect, 
     national security, and that involves a specified biological, 
     chemical, radiological, or nuclear agent or agents, or a 
     specified disease or condition that may be attributable to 
     such agent or agents.
       ``(2) Termination of declaration.--
       ``(A) In general.--A declaration under this subsection 
     shall terminate upon the earlier of--
       ``(i) a determination by the Secretary, in consultation as 
     appropriate with the Secretary of Homeland Security or the 
     Secretary of Defense, that the circumstances described in 
     paragraph (1) have ceased to exist; or
       ``(ii) the expiration of the one-year period beginning on 
     the date on which the declaration is made.
       ``(B) Renewal.--Notwithstanding subparagraph (A), the 
     Secretary may renew a declaration under this subsection, and 
     this paragraph shall apply to any such renewal.
       ``(C) Disposition of product.--If an authorization under 
     this section with respect to an unapproved product ceases to 
     be effective as a result of a termination under subparagraph 
     (A) of this paragraph, the Secretary shall consult with the 
     manufacturer of such product with respect to the appropriate 
     disposition of the product.
       ``(3) Advance notice of termination.--The Secretary shall 
     provide advance notice that

[[Page 10358]]

     a declaration under this subsection will be terminated. The 
     period of advance notice shall be a period reasonably 
     determined to provide--
       ``(A) in the case of an unapproved product, a sufficient 
     period for disposition of the product, including the return 
     of such product (except such quantities of product as are 
     necessary to provide for continued use consistent with 
     subsection (f)(2)) to the manufacturer (in the case of a 
     manufacturer that chooses to have such product returned); and
       ``(B) in the case of an unapproved use of an approved 
     product, a sufficient period for the disposition of any 
     labeling, or any information under subsection (e)(2)(B)(ii), 
     as the case may be, that was provided with respect to the 
     emergency use involved.
       ``(4) Publication.--The Secretary shall promptly publish in 
     the Federal Register each declaration, determination, advance 
     notice of termination, and renewal under this subsection.
       ``(c) Criteria for Issuance of Authorization.--The 
     Secretary may issue an authorization under this section with 
     respect to the emergency use of a product only if, after 
     consultation with the Director of the National Institutes of 
     Health and the Director of the Centers for Disease Control 
     and Prevention (to the extent feasible and appropriate given 
     the circumstances of the emergency involved), the Secretary 
     concludes--
       ``(1) that an agent specified in a declaration under 
     subsection (b) can cause a serious or life-threatening 
     disease or condition;
       ``(2) that, based on the totality of scientific evidence 
     available to the Secretary, including data from adequate and 
     well-controlled clinical trials, if available, it is 
     reasonable to believe that--
       ``(A) the product may be effective in diagnosing, treating, 
     or preventing--
       ``(i) such disease or condition; or
       ``(ii) a serious or life-threatening disease or condition 
     caused by a product authorized under this section, approved 
     or cleared under this Act, or licensed under section 351 of 
     the Public Health Service Act, for diagnosing, treating, or 
     preventing such a disease or condition caused by such an 
     agent; and
       ``(B) the known and potential benefits of the product, when 
     used to diagnose, prevent, or treat such disease or 
     condition, outweigh the known and potential risks of the 
     product;
       ``(3) that there is no adequate, approved, and available 
     alternative to the product for diagnosing, preventing, or 
     treating such disease or condition; and
       ``(4) that such other criteria as the Secretary may by 
     regulation prescribe are satisfied.
       ``(d) Scope of Authorization.--An authorization of a 
     product under this section shall state--
       ``(1) each disease or condition that the product may be 
     used to diagnose, prevent, or treat within the scope of the 
     authorization;
       ``(2) the Secretary's conclusions, made under subsection 
     (c)(2)(B), that the known and potential benefits of the 
     product, when used to diagnose, prevent, or treat such 
     disease or condition, outweigh the known and potential risks 
     of the product; and
       ``(3) the Secretary's conclusions, made under subsection 
     (c), concerning the safety and potential effectiveness of the 
     product in diagnosing, preventing, or treating such diseases 
     or conditions, including an assessment of the available 
     scientific evidence.
       ``(e) Conditions of Authorization.--
       ``(1) Unapproved product.--
       ``(A) Required conditions.--With respect to the emergency 
     use of an unapproved product, the Secretary, to the extent 
     practicable given the circumstances of the emergency, shall, 
     for a person who carries out any activity for which the 
     authorization is issued, establish such conditions on an 
     authorization under this section as the Secretary finds 
     necessary or appropriate to protect the public health, 
     including the following:
       ``(i) Appropriate conditions designed to ensure that health 
     care professionals administering the product are informed--

       ``(I) that the Secretary has authorized the emergency use 
     of the product;
       ``(II) of the significant known and potential benefits and 
     risks of the emergency use of the product, and of the extent 
     to which such benefits and risks are unknown; and
       ``(III) of the alternatives to the product that are 
     available, and of their benefits and risks.

       ``(ii) Appropriate conditions designed to ensure that 
     individuals to whom the product is administered are 
     informed--

       ``(I) that the Secretary has authorized the emergency use 
     of the product;
       ``(II) of the significant known and potential benefits and 
     risks of such use, and of the extent to which such benefits 
     and risks are unknown; and
       ``(III) of the option to accept or refuse administration of 
     the product, of the consequences, if any, of refusing 
     administration of the product, and of the alternatives to the 
     product that are available and of their benefits and risks.

       ``(iii) Appropriate conditions for the monitoring and 
     reporting of adverse events associated with the emergency use 
     of the product.
       ``(iv) For manufacturers of the product, appropriate 
     conditions concerning recordkeeping and reporting, including 
     records access by the Secretary, with respect to the 
     emergency use of the product.
       ``(B) Authority for additional conditions.--With respect to 
     the emergency use of an unapproved product, the Secretary 
     may, for a person who carries out any activity for which the 
     authorization is issued, establish such conditions on an 
     authorization under this section as the Secretary finds 
     necessary or appropriate to protect the public health, 
     including the following:
       ``(i) Appropriate conditions on which entities may 
     distribute the product with respect to the emergency use of 
     the product (including limitation to distribution by 
     government entities), and on how distribution is to be 
     performed.
       ``(ii) Appropriate conditions on who may administer the 
     product with respect to the emergency use of the product, and 
     on the categories of individuals to whom, and the 
     circumstances under which, the product may be administered 
     with respect to such use.
       ``(iii) Appropriate conditions with respect to the 
     collection and analysis of information, during the period 
     when the authorization is in effect, concerning the safety 
     and effectiveness of the product with respect to the 
     emergency use of such product.
       ``(iv) For persons other than manufacturers of the product, 
     appropriate conditions concerning recordkeeping and 
     reporting, including records access by the Secretary, with 
     respect to the emergency use of the product.
       ``(2) Unapproved use.--With respect to the emergency use of 
     a product that is an unapproved use of an approved product:
       ``(A) For a manufacturer of the product who carries out any 
     activity for which the authorization is issued, the Secretary 
     shall, to the extent practicable given the circumstances of 
     the emergency, establish conditions described in clauses (i) 
     and (ii) of paragraph (1)(A), and may establish conditions 
     described in clauses (iii) and (iv) of such paragraph.
       ``(B)(i) If the authorization under this section regarding 
     the emergency use authorizes a change in the labeling of the 
     product, but the manufacturer of the product chooses not to 
     make such change, such authorization may not authorize 
     distributors of the product or any other person to alter or 
     obscure the labeling provided by the manufacturer.
       ``(ii) In the circumstances described in clause (i), for a 
     person who does not manufacture the product and who chooses 
     to act under this clause, an authorization under this section 
     regarding the emergency use shall, to the extent practicable 
     given the circumstances of the emergency, authorize such 
     person to provide appropriate information with respect to 
     such product in addition to the labeling provided by the 
     manufacturer, subject to compliance with clause (i). While 
     the authorization under this section is effective, such 
     additional information shall not be considered labeling for 
     purposes of section 502.
       ``(C) The Secretary may establish with respect to the 
     distribution and administration of the product for the 
     unapproved use conditions no more restrictive than those 
     established by the Secretary with respect to the distribution 
     and administration of the product for the approved use.
       ``(3) Good manufacturing practice.--With respect to the 
     emergency use of a product for which an authorization under 
     this section is issued (whether an unapproved product or an 
     unapproved use of an approved product), the Secretary may 
     waive or limit, to the extent appropriate given the 
     circumstances of the emergency, requirements regarding 
     current good manufacturing practice otherwise applicable to 
     the manufacture, processing, packing, or holding of products 
     subject to regulation under this Act, including such 
     requirements established under section 501.
       ``(4) Advertising.--The Secretary may establish conditions 
     on advertisements and other promotional descriptive printed 
     matter that relate to the emergency use of a product for 
     which an authorization under this section is issued (whether 
     an unapproved product or an unapproved use of an approved 
     product), including, as appropriate--
       ``(A) with respect to drugs and biological products, 
     requirements applicable to prescription drugs pursuant to 
     section 502(n); or
       ``(B) with respect to devices, requirements applicable to 
     restricted devices pursuant to section 502(r).
       ``(f) Duration of Authorization.--
       ``(1) In general.--Except as provided in paragraph (2), an 
     authorization under this section shall be effective until the 
     earlier of the termination of the declaration under 
     subsection (b) or a revocation under subsection (g).
       ``(2) Continued use after end of effective period.--
     Notwithstanding the termination of the declaration under 
     subsection (b) or a revocation under subsection (g), an 
     authorization shall continue to be effective to provide for 
     continued use of an unapproved product with respect to a 
     patient to whom it was administered during the period 
     described by paragraph (1), to the extent found necessary by 
     such patient's attending physician.
       ``(g) Revocation of Authorization.--
       ``(1) Review.--The Secretary shall periodically review the 
     circumstances and the appropriateness of an authorization 
     under this section.

[[Page 10359]]

       ``(2) Revocation.--The Secretary may revoke an 
     authorization under this section if the criteria under 
     subsection (c) for issuance of such authorization are no 
     longer met or other circumstances make such revocation 
     appropriate to protect the public health or safety.
       ``(h) Publication; Confidential Information.--
       ``(1) Publication.--The Secretary shall promptly publish in 
     the Federal Register a notice of each authorization, and each 
     termination or revocation of an authorization under this 
     section, and an explanation of the reasons therefor (which 
     may include a summary of data or information that has been 
     submitted to the Secretary in an application under section 
     505(i) or section 520(g), even if such summary may indirectly 
     reveal the existence of such application).
       ``(2) Confidential information.--Nothing in this section 
     alters or amends section 1905 of title 18, United States 
     Code, or section 552(b)(4) of title 5 of such Code.
       ``(i) Actions Committed to Agency Discretion.--Actions 
     under the authority of this section by the Secretary, by the 
     Secretary of Defense, or by the Secretary of Homeland 
     Security are committed to agency discretion.
       ``(j) Rules of Construction.--The following applies with 
     respect to this section:
       ``(1) Nothing in this section impairs the authority of the 
     President as Commander in Chief of the Armed Forces of the 
     United States under article II, section 2 of the United 
     States Constitution.
       ``(2) Nothing in this section impairs the authority of the 
     Secretary of Defense with respect to the Department of 
     Defense, including the armed forces, under other provisions 
     of Federal law.
       ``(3) Nothing in this section (including any exercise of 
     authority by a manufacturer under subsection (e)(2)) impairs 
     the authority of the United States to use or manage 
     quantities of a product that are owned or controlled by the 
     United States (including quantities in the stockpile 
     maintained under section 319F-2 of the Public Health Service 
     Act).
       ``(k) Relation to Other Provisions.--If a product is the 
     subject of an authorization under this section, the use of 
     such product within the scope of the authorization shall not 
     be considered to constitute a clinical investigation for 
     purposes of section 505(i), section 520(g), or any other 
     provision of this Act or section 351 of the Public Health 
     Service Act.
       ``(l) Option to Carry Out Authorized Activities.--Nothing 
     in this section provides the Secretary any authority to 
     require any person to carry out any activity that becomes 
     lawful pursuant to an authorization under this section, and 
     no person is required to inform the Secretary that the person 
     will not be carrying out such activity, except that a 
     manufacturer of a sole-source unapproved product authorized 
     for emergency use shall report to the Secretary within a 
     reasonable period of time after the issuance by the Secretary 
     of such authorization if such manufacturer does not intend to 
     carry out any activity under the authorization. This section 
     only has legal effect on a person who carries out an activity 
     for which an authorization under this section is issued. This 
     section does not modify or affect activities carried out 
     pursuant to other provisions of this Act or section 351 of 
     the Public Health Service Act. Nothing in this subsection may 
     be construed as restricting the Secretary from imposing 
     conditions on persons who carry out any activity pursuant to 
     an authorization under this section.''.
       (b) Repeal of Termination Provision.--Subsection (d) of 
     section 1603 of the National Defense Authorization Act for 
     Fiscal Year 2004 (10 U.S.C. 1107a note) is repealed.

     SEC. 5. REPORTS REGARDING AUTHORITIES UNDER THIS ACT.

       (a) Secretary of Health and Human Services.--
       (1) Annual reports on particular exercises of authority.--
       (A) Relevant authorities.--The Secretary of Health and 
     Human Services (referred to in this subsection as the 
     ``Secretary'') shall submit reports in accordance with 
     subparagraph (B) regarding the exercise of authority under 
     the following provisions of law:
       (i) With respect to section 319F-1 of the Public Health 
     Service Act (as added by section 2 of this Act):

       (I) Subsection (b)(1) (relating to increased simplified 
     acquisition threshold).
       (II) Subsection (b)(2) (relating to procedures other than 
     full and open competition).
       (III) Subsection (c) (relating to expedited peer review 
     procedures).

       (ii) With respect to section 319F-2 of the Public Health 
     Service Act (as added by section 3 of this Act):

       (I) Subsection (c)(7)(C)(iii) (relating to simplified 
     acquisition procedures).
       (II) Subsection (c)(7)(C)(iv) (relating to procedures other 
     than full and open competition).
       (III) Subsection (c)(7)(C)(v) (relating to premium 
     provision in multiple-award contracts).

       (iii) With respect to section 564 of the Federal Food, 
     Drug, and Cosmetic Act (as added by section 4 of this Act):

       (I) Subsection (a)(1) (relating to emergency uses of 
     certain drugs and devices).
       (II) Subsection (b)(1) (relating to a declaration of an 
     emergency).
       (III) Subsection (e) (relating to conditions on 
     authorization).

       (B) Contents of reports.--The Secretary shall annually 
     submit to the designated congressional committees a report 
     that summarizes--
       (i) the particular actions that were taken under the 
     authorities specified in subparagraph (A), including, as 
     applicable, the identification of the threat agent, 
     emergency, or the biomedical countermeasure with respect to 
     which the authority was used;
       (ii) the reasons underlying the decision to use such 
     authorities, including, as applicable, the options that were 
     considered and rejected with respect to the use of such 
     authorities;
       (iii) the number of, nature of, and other information 
     concerning the persons and entities that received a grant, 
     cooperative agreement, or contract pursuant to the use of 
     such authorities, and the persons and entities that were 
     considered and rejected for such a grant, cooperative 
     agreement, or contract, except that the report need not 
     disclose the identity of any such person or entity; and
       (iv) whether, with respect to each procurement that is 
     approved by the President under section 319F-2(c)(6) of the 
     Public Health Service Act (as added by section 3 of this 
     Act), a contract was entered into within one year after such 
     approval by the President.
       (2) Annual summaries regarding certain activity.--The 
     Secretary shall annually submit to the designated 
     congressional committees a report that summarizes the 
     activity undertaken pursuant to the following authorities 
     under section 319F-1 of the Public Health Service Act (as 
     added by section 2 of this Act):
       (A) Subsection (b)(3) (relating to increased micropurchase 
     threshold).
       (B) Subsection (d) (relating to authority for personal 
     services contracts).
       (C) Subsection (e) (relating to streamlined personnel 
     authority).

     With respect to subparagraph (B), the report shall include a 
     provision specifying, for the one-year period for which the 
     report is submitted, the number of persons who were paid 
     amounts greater than $100,000 and the number of persons who 
     were paid amounts between $50,000 and $100,000.
       (3) Report on additional barriers to procurement of 
     security countermeasures.--Not later than one year after the 
     date of the enactment of this Act, the Secretary, in 
     consultation with the Secretary of Homeland Security, shall 
     report to the designated congressional committees any 
     potential barriers to the procurement of security 
     countermeasures that have not been addressed by this Act.
       (b) General Accounting Office Review.--
       (1) In general.--Four years after the date of the enactment 
     of this Act, the Comptroller General of the United States 
     shall initiate a study--
       (A)(i) to review the Secretary of Health and Human 
     Services' utilization of the authorities granted under this 
     Act with respect to simplified acquisition procedures, 
     procedures other than full and open competition, increased 
     micropurchase thresholds, personal services contracts, 
     streamlined personnel authority, and the purchase of security 
     countermeasures under the special reserve fund; and
       (ii) to make recommendations to improve the utilization or 
     effectiveness of such authorities in the future;
       (B)(i) to review and assess the adequacy of the internal 
     controls instituted by such Secretary with respect to such 
     authorities, where required by this Act; and
       (ii) to make recommendations to improve the effectiveness 
     of such controls;
       (C)(i) to review such Secretary's utilization of the 
     authority granted under this Act to authorize an emergency 
     use of a biomedical countermeasure, including the means by 
     which the Secretary determines whether and under what 
     conditions any such authorizations should be granted and the 
     benefits and adverse impacts, if any, resulting from the use 
     of such authority; and
       (ii) to make recommendations to improve the utilization or 
     effectiveness of such authority and to enhance protection of 
     the public health;
       (D) to identify any purchases or procurements that would 
     not have been made or would have been significantly delayed 
     except for the authorities described in subparagraph (A)(i); 
     and
       (E)(i) to determine whether and to what extent activities 
     undertaken pursuant to the biomedical countermeasure research 
     and development authorities established in this Act have 
     enhanced the development of biomedical countermeasures 
     affecting national security; and
       (ii) to make recommendations to improve the ability of the 
     Secretary to carry out these activities in the future.
       (2) Additional provisions regarding determination on 
     development of biomedical countermeasures affecting national 
     security.--In the report under paragraph (1), the 
     determination under subparagraph (E) of such paragraph shall 
     include--

[[Page 10360]]

       (A) the Comptroller General's assessment of the current 
     availability of countermeasures to address threats identified 
     by the Secretary of Homeland Security;
       (B) the Comptroller General's assessment of the extent to 
     which programs and activities under this Act will reduce any 
     gap between the threat and the availability of 
     countermeasures to an acceptable level of risk; and
       (C)(i) the Comptroller General's assessment of threats to 
     national security that are posed by technology that will 
     enable, during the 10-year period beginning on the date of 
     the enactment of this Act, the development of antibiotic 
     resistant, mutated, or bioengineered strains of biological 
     agents; and
       (ii) recommendations on short-term and long-term 
     governmental strategies for addressing such threats, 
     including recommendations for Federal policies regarding 
     research priorities, the development of countermeasures, and 
     investments in technology.
       (3) Report.--A report providing the results of the study 
     under paragraph (1) shall be submitted to the designated 
     congressional committees not later than five years after the 
     date of the enactment of this Act.
       (c) Report Regarding Biocontainment Facilities.--Not later 
     than 120 days after the date of the enactment of this Act, 
     the Secretary of Homeland Security and the Secretary of 
     Health and Human Services shall jointly report to the 
     designated congressional committees whether there is a lack 
     of adequate large-scale biocontainment facilities necessary 
     for the testing of security countermeasures in accordance 
     with Food and Drug Administration requirements.
       (d) Designated Congressional Committees.--For purposes of 
     this section, the term ``designated congressional 
     committees'' means the following committees of the Congress:
       (1) In the House of Representatives: the Committee on 
     Energy and Commerce, the Committee on Appropriations, the 
     Committee on Government Reform, and the Select Committee on 
     Homeland Security (or any successor to the Select Committee).
       (2) In the Senate: the appropriate committees.

     SEC. 6. OUTREACH.

       The Secretary of Health and Human Services shall develop 
     outreach measures to ensure to the extent practicable that 
     diverse institutions, including Historically Black Colleges 
     and Universities and those serving large proportions of Black 
     or African Americans, American Indians, Appalachian 
     Americans, Alaska Natives, Asians, Native Hawaiians, other 
     Pacific Islanders, Hispanics or Latinos, or other 
     underrepresented populations, are meaningfully aware of 
     available research and development grants, contracts, 
     cooperative agreements, and procurements conducted under 
     sections 2 and 3 of this Act.

     SEC. 7. RECOMMENDATION FOR EXPORT CONTROLS ON CERTAIN 
                   BIOMEDICAL COUNTERMEASURES.

       Upon the award of any grant, contract, or cooperative 
     agreement under section 2 or 3 of this Act for the research, 
     development, or procurement of a qualified countermeasure or 
     a security countermeasure (as those terms are defined in this 
     Act), the Secretary of Health and Human Services shall, in 
     consultation with the heads of other appropriate Federal 
     agencies, determine whether the countermeasure involved in 
     such grant, contract, or cooperative agreement is subject to 
     existing export-related controls and, if not, may make a 
     recommendation to the appropriate Federal agency or agencies 
     that such countermeasure should be included on the list of 
     controlled items subject to such controls.

     SEC. 8. ENSURING COORDINATION, COOPERATION AND THE 
                   ELIMINATION OF UNNECESSARY DUPLICATION IN 
                   PROGRAMS DESIGNED TO PROTECT THE HOMELAND FROM 
                   BIOLOGICAL, CHEMICAL, RADIOLOGICAL, AND NUCLEAR 
                   AGENTS.

       (a) Ensuring Coordination of Programs.--The Secretary of 
     Health and Human Services, the Secretary of Homeland 
     Security, and the Secretary of Defense shall ensure that the 
     activities of their respective Departments coordinate, 
     complement, and do not unnecessarily duplicate programs to 
     identify potential domestic threats from biological, 
     chemical, radiological or nuclear agents, detect domestic 
     incidents involving such agents, analyze such incidents, and 
     develop necessary countermeasures. The aforementioned 
     Secretaries shall further ensure that information and 
     technology possessed by the Departments relevant to these 
     activities are shared with the other Departments.
       (b) Designation of Agency Coordination Officer.--The 
     Secretary of Health and Human Services, the Secretary of 
     Homeland Security, and the Secretary of Defense shall each 
     designate an officer or employee of their respective 
     Departments who shall coordinate, through regular meetings 
     and communications, with the other aforementioned Departments 
     such programs and activities carried out by their 
     Departments.

     SEC. 9. AUTHORITY OF THE SECRETARY OF HEALTH AND HUMAN 
                   SERVICES DURING NATIONAL EMERGENCIES.

       Section 1135(b) of the Social Security Act (42 U.S.C. 
     1320b-5(b)) is amended--
       (1) by striking paragraph (3) and inserting the following:
       ``(3) actions under section 1867 (relating to examination 
     and treatment for emergency medical conditions and women in 
     labor) for--
       ``(A) a transfer of an individual who has not been 
     stabilized in violation of subsection (c) of such section if 
     the transfer is necessitated by the circumstances of the 
     declared emergency in the emergency area during the emergency 
     period; or
       ``(B) the direction or relocation of an individual to 
     receive medical screening in an alternate location pursuant 
     to an appropriate State emergency preparedness plan;'';
       (2) in paragraph (5), by striking ``and'' at the end;
       (3) in paragraph (6), by striking the period and inserting 
     ``; and'';
       (4) by inserting after paragraph (6), the following:
       ``(7) sanctions and penalties that arise from noncompliance 
     with the following requirements (as promulgated under the 
     authority of section 264(c) of the Health Insurance 
     Portability and Accountability Act of 1996 (42 U.S.C. 1320d-2 
     note)--
       ``(A) section 164.510 of title 45, Code of Federal 
     Regulations, relating to--
       ``(i) requirements to obtain a patient's agreement to speak 
     with family members or friends; and
       ``(ii) the requirement to honor a request to opt out of the 
     facility directory;
       ``(B) section 164.520 of such title, relating to the 
     requirement to distribute a notice; or
       ``(C) section 164.522 of such title, relating to--
       ``(i) the patient's right to request privacy restrictions; 
     and
       ``(ii) the patient's right to request confidential 
     communications.''; and
       (5) by adding at the end the following: ``A waiver or 
     modification provided for under paragraph (3) or (7) shall 
     only be in effect if such actions are taken in a manner that 
     does not discriminate among individuals on the basis of their 
     source of payment or of their ability to pay, and shall be 
     limited to a 72-hour period beginning upon implementation of 
     a hospital disaster protocol. A waiver or modification under 
     such paragraph (7) shall be withdrawn after such period and 
     the provider shall comply with the requirements under such 
     paragraph for any patient still under the care of the 
     provider.''.
                                 ______
                                 
  SA 3179. Mr. LOTT (for himself and Mr. Cochran) submitted an 
amendment intended to be proposed by him to the bill S. 2400, to 
authorize appropriations for fiscal year 2005 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Services, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 30, between lines 14 and 15, insert the following:

     SEC. 217. ADVANCED FERRITE ANTENNA.

       (a) Amount for Development and Testing.--Of the amount 
     authorized to be appropriated under section 201(2), 
     $3,000,000 shall be available for development and testing of 
     the Advanced Ferrite Antenna.
       (b) Adjustments to Authorizations of Appropriations.--(1) 
     The amount authorized to be appropriated under section 201(2) 
     is hereby increased by $3,000,000.
       (2) The amount authorized to be appropriated under section 
     102(a)(3) is hereby reduced by $3,000,000, to be derived from 
     the amounts for the LCU(X) program.
                                 ______
                                 
  SA 3180. Mr. GREGG (for himself and Mr. Kennedy) proposed an 
amendment to the bill S. 15, to amend the Public Health Service Act to 
provide protections and countermeasures against chemical, radiological, 
or nuclear agents that may be used in a terrorist attack against the 
United States by giving the National Institutes of Health contracting 
flexibility, infrastructure improvements, and expediting the scientific 
peer review process, and streamlining the Food and Drug Administration 
approval process of countermeasures; as follows:

       Amend the title so as to read: To amend the Public Health 
     Service Act to provide protections and countermeasures 
     against chemical, radiological, or nuclear agents that may be 
     used in a terrorist attack against the United States by 
     giving the National Institutes of Health contracting 
     flexibility, infrastructure improvements, and expediting the 
     scientific peer review process, and streamlining the Food and 
     Drug Administration approval process of countermeasures.''.
                                 ______
                                 
  SA 3181. Ms. CANTWELL (for herself, Mr. Hollings, Mrs. Murray, Mrs. 
Clinton, Mrs. Feinstein, Mr. Lautenberg, and Mr. Schumer) submitted an 
amendment intended to be proposed by her to the bill S. 2400, to 
authorize appropriations for fiscal year 2005 for military activities 
of the Department of Defense, for military construction,

[[Page 10361]]

and for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Services, and 
for other purposes; which was ordered to lie on the table; as follows:

       Beginning on page 384, strike line 3 and all that follows 
     through page 391, line 7, and insert the following:

     SEC. 3117. ANNUAL REPORT ON EXPENDITURES FOR SAFEGUARDS AND 
                   SECURITY.

       (a) Annual Report Required.--Subtitle C of title XLVII of 
     the Atomic Energy Defense Act (50 U.S.C. 2771 et seq.) is 
     amended by adding at the end the following new section:

     ``SEC. 4732. ANNUAL REPORT ON EXPENDITURES FOR SAFEGUARDS AND 
                   SECURITY.

       ``The Secretary of Energy shall submit to Congress each 
     year, in the budget justification materials submitted to 
     Congress in support of the budget of the President for the 
     fiscal year beginning in such year (as submitted under 
     section 1105(a) of title 31, United States Code), the 
     following:
       ``(1) A detailed description and accounting of the proposed 
     obligations and expenditures by the Department of Energy for 
     safeguards and security in carrying out programs necessary 
     for the national security for the fiscal year covered by such 
     budget, including any technologies on safeguards and security 
     proposed to be deployed or implemented during such fiscal 
     year.
       ``(2) With respect to the fiscal year ending in the year 
     before the year in which such budget is submitted, a detailed 
     description and accounting of--
       ``(A) the policy on safeguards and security, including any 
     modifications in such policy adopted or implemented during 
     such fiscal year;
       ``(B) any initiatives on safeguards and security in effect 
     or implemented during such fiscal year;
       ``(C) the amount obligated and expended for safeguards and 
     security during such fiscal year, set forth by total amount, 
     by amount per program, and by amount per facility; and
       ``(D) the technologies on safeguards and security deployed 
     or implemented during such fiscal year.''.
       (b) Clerical Amendment.--The table of contents for that Act 
     is amended by inserting after the item relating to section 
     4731 the following new item:

``Sec. 4732. Annual report on expenditures for safeguards and 
              security.''.

     SEC. 3118. AUTHORITY TO CONSOLIDATE COUNTERINTELLIGENCE 
                   OFFICES OF DEPARTMENT OF ENERGY AND NATIONAL 
                   NUCLEAR SECURITY ADMINISTRATION WITHIN NATIONAL 
                   NUCLEAR SECURITY ADMINISTRATION.

       (a) Authority.--The Secretary of Energy may consolidate the 
     counterintelligence programs and functions referred to in 
     subsection (b) within the Office of Defense Nuclear 
     Counterintelligence of the National Nuclear Security 
     Administration and provide for their discharge by that 
     Office.
       (b) Covered Programs and Functions.--The programs and 
     functions referred to in this subsection are as follows:
       (1) The functions and programs of the Office of 
     Counterintelligence of the Department of Energy under section 
     215 of the Department of Energy Organization Act (42 U.S.C. 
     7144b).
       (2) The functions and programs of the Office of Defense 
     Nuclear Counterintelligence of the National Nuclear Security 
     Administration under section 3232 of the National Nuclear 
     Security Administration Act (50 U.S.C. 2422), including the 
     counterintelligence programs under section 3233 of that Act 
     (50 U.S.C. 2423).
       (c) Establishment of Policy.--The Secretary shall have the 
     responsibility to establish policy for the discharge of the 
     counterintelligence programs and functions consolidated 
     within the National Nuclear Security Administration under 
     subsection (a) as provided for under section 213 of the 
     Department of Energy Organization Act (42 U.S.C. 7144).
       (d) Preservation of Counterintelligence Capability.--In 
     consolidating counterintelligence programs and functions 
     within the National Nuclear Security Administration under 
     subsection (a), the Secretary shall ensure that the 
     counterintelligence capabilities of the Department of Energy 
     and the National Nuclear Security Administration are in no 
     way degraded or compromised.
       (e) Report on Exercise of Authority.--In the event the 
     Secretary exercises the authority in subsection (a), the 
     Secretary shall submit to the congressional defense 
     committees a report on the exercise of the authority. The 
     report shall include--
       (1) a description of the manner in which the 
     counterintelligence programs and functions referred to in 
     subsection (b) shall be consolidated within the Office of 
     Defense Nuclear Counterintelligence of the National Nuclear 
     Security Administration and discharged by that Office;
       (2) a notice of the date on which that Office shall 
     commence the discharge of such programs and functions, as so 
     consolidated; and
       (3) a proposal for such legislative action as the Secretary 
     considers appropriate to effectuate the discharge of such 
     programs and functions, as so consolidated, by that Office.
       (f) Deadline for Exercise of Authority.--The authority in 
     subsection (a) may be exercised, if at all, not later than 
     one year after the date of the enactment of this Act.

     SEC. 3119. ON-SITE TREATMENT AND STORAGE OF WASTES FROM 
                   REPROCESSING ACTIVITIES AND RELATED WASTE.

       (a) Authority.--Of the amount authorized to be appropriated 
     by section 3102(a)(1) for environmental management for 
     defense site acceleration completion, $350,000,000 shall be 
     available for the following purposes at the sites referred to 
     in subsection (b):
       (1) The safe management of tanks or tank farms used to 
     store waste from reprocessing activities.
       (2) The on-site treatment and storage of wastes from 
     reprocessing activities and related waste.
       (3) The consolidation of tank waste.
       (4) The emptying and cleaning of storage tanks.
       (b) Sites.--The sites referred to in this subsection are as 
     follows:
       (1) The Idaho National Engineering and Environmental 
     Laboratory, Idaho.
       (2) The Savannah River Site, Aiken, South Carolina.
       (3) The Hanford Site, Richland, Washington.
                                 ______
                                 
  SA 3182. Ms. CANTWELL submitted an amendment intended to be proposed 
to amendment SA 3170 submitted by Mr. Graham of South Carolina and 
intended to be proposed to the bill S. 2400, to authorize 
appropriations for fiscal year 2005 for military activities of the 
Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Services, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 2, strike line 11.
                                 ______
                                 
  SA 3183. Mr. SMITH (for himself and Mr. Kennedy) submitted an 
amendment intended to be proposed by him to the bill S. 2400, to 
authorize appropriations for fiscal year 2005 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Services, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of the bill insert the following:

            TITLE __--LOCAL LAW ENFORCEMENT ENHANCEMENT ACT.

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Local Law Enforcement 
     Enhancement Act of 2004''.

     SEC. __02. FINDINGS.

       Congress makes the following findings:
       (1) The incidence of violence motivated by the actual or 
     perceived race, color, religion, national origin, gender, 
     sexual orientation, or disability of the victim poses a 
     serious national problem.
       (2) Such violence disrupts the tranquility and safety of 
     communities and is deeply divisive.
       (3) State and local authorities are now and will continue 
     to be responsible for prosecuting the overwhelming majority 
     of violent crimes in the United States, including violent 
     crimes motivated by bias. These authorities can carry out 
     their responsibilities more effectively with greater Federal 
     assistance.
       (4) Existing Federal law is inadequate to address this 
     problem.
       (5) The prominent characteristic of a violent crime 
     motivated by bias is that it devastates not just the actual 
     victim and the family and friends of the victim, but 
     frequently savages the community sharing the traits that 
     caused the victim to be selected.
       (6) Such violence substantially affects interstate commerce 
     in many ways, including--
       (A) by impeding the movement of members of targeted groups 
     and forcing such members to move across State lines to escape 
     the incidence or risk of such violence; and
       (B) by preventing members of targeted groups from 
     purchasing goods and services, obtaining or sustaining 
     employment, or participating in other commercial activity.
       (7) Perpetrators cross State lines to commit such violence.
       (8) Channels, facilities, and instrumentalities of 
     interstate commerce are used to facilitate the commission of 
     such violence.
       (9) Such violence is committed using articles that have 
     traveled in interstate commerce.
       (10) For generations, the institutions of slavery and 
     involuntary servitude were defined by the race, color, and 
     ancestry of those held in bondage. Slavery and involuntary 
     servitude were enforced, both prior to and after the adoption 
     of the 13th amendment to the Constitution of the United 
     States, through widespread public and private violence 
     directed at persons because of their race, color, or 
     ancestry, or perceived

[[Page 10362]]

     race, color, or ancestry. Accordingly, eliminating racially 
     motivated violence is an important means of eliminating, to 
     the extent possible, the badges, incidents, and relics of 
     slavery and involuntary servitude.
       (11) Both at the time when the 13th, 14th, and 15th 
     amendments to the Constitution of the United States were 
     adopted, and continuing to date, members of certain religious 
     and national origin groups were and are perceived to be 
     distinct ``races''. Thus, in order to eliminate, to the 
     extent possible, the badges, incidents, and relics of 
     slavery, it is necessary to prohibit assaults on the basis of 
     real or perceived religions or national origins, at least to 
     the extent such religions or national origins were regarded 
     as races at the time of the adoption of the 13th, 14th, and 
     15th amendments to the Constitution of the United States.
       (12) Federal jurisdiction over certain violent crimes 
     motivated by bias enables Federal, State, and local 
     authorities to work together as partners in the investigation 
     and prosecution of such crimes.
       (13) The problem of crimes motivated by bias is 
     sufficiently serious, widespread, and interstate in nature as 
     to warrant Federal assistance to States and local 
     jurisdictions.

     SEC. __03. DEFINITION OF HATE CRIME.

       In this title, the term ``hate crime'' has the same meaning 
     as in section 280003(a) of the Violent Crime Control and Law 
     Enforcement Act of 1994 (28 U.S.C. 994 note).

     SEC. __04. SUPPORT FOR CRIMINAL INVESTIGATIONS AND 
                   PROSECUTIONS BY STATE AND LOCAL LAW ENFORCEMENT 
                   OFFICIALS.

       (a) Assistance Other Than Financial Assistance.--
       (1) In general.--At the request of a law enforcement 
     official of a State or Indian tribe, the Attorney General may 
     provide technical, forensic, prosecutorial, or any other form 
     of assistance in the criminal investigation or prosecution of 
     any crime that--
       (A) constitutes a crime of violence (as defined in section 
     16 of title 18, United States Code);
       (B) constitutes a felony under the laws of the State or 
     Indian tribe; and
       (C) is motivated by prejudice based on the race, color, 
     religion, national origin, gender, sexual orientation, or 
     disability of the victim, or is a violation of the hate crime 
     laws of the State or Indian tribe.
       (2) Priority.--In providing assistance under paragraph (1), 
     the Attorney General shall give priority to crimes committed 
     by offenders who have committed crimes in more than 1 State 
     and to rural jurisdictions that have difficulty covering the 
     extraordinary expenses relating to the investigation or 
     prosecution of the crime.
       (b) Grants.--
       (1) In general.--The Attorney General may award grants to 
     assist State, local, and Indian law enforcement officials 
     with the extraordinary expenses associated with the 
     investigation and prosecution of hate crimes.
       (2) Office of justice programs.--In implementing the grant 
     program, the Office of Justice Programs shall work closely 
     with the funded jurisdictions to ensure that the concerns and 
     needs of all affected parties, including community groups and 
     schools, colleges, and universities, are addressed through 
     the local infrastructure developed under the grants.
       (3)  Application.--
       (A) In general.--Each State that desires a grant under this 
     subsection shall submit an application to the Attorney 
     General at such time, in such manner, and accompanied by or 
     containing such information as the Attorney General shall 
     reasonably require.
       (B) Date for submission.--Applications submitted pursuant 
     to subparagraph (A) shall be submitted during the 60-day 
     period beginning on a date that the Attorney General shall 
     prescribe.
       (C) Requirements.--A State or political subdivision of a 
     State or tribal official applying for assistance under this 
     subsection shall--
       (i) describe the extraordinary purposes for which the grant 
     is needed;
       (ii) certify that the State, political subdivision, or 
     Indian tribe lacks the resources necessary to investigate or 
     prosecute the hate crime;
       (iii) demonstrate that, in developing a plan to implement 
     the grant, the State, political subdivision, or tribal 
     official has consulted and coordinated with nonprofit, 
     nongovernmental victim services programs that have experience 
     in providing services to victims of hate crimes; and
       (iv) certify that any Federal funds received under this 
     subsection will be used to supplement, not supplant, non-
     Federal funds that would otherwise be available for 
     activities funded under this subsection.
       (4) Deadline.--An application for a grant under this 
     subsection shall be approved or disapproved by the Attorney 
     General not later than 30 business days after the date on 
     which the Attorney General receives the application.
       (5) Grant amount.--A grant under this subsection shall not 
     exceed $100,000 for any single jurisdiction within a 1 year 
     period.
       (6) Report.--Not later than December 31, 2005, the Attorney 
     General shall submit to Congress a report describing the 
     applications submitted for grants under this subsection, the 
     award of such grants, and the purposes for which the grant 
     amounts were expended.
       (7) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $5,000,000 
     for each of fiscal years 2005 and 2006.

     SEC. __05. GRANT PROGRAM.

       (a) Authority To Make Grants.--The Office of Justice 
     Programs of the Department of Justice shall award grants, in 
     accordance with such regulations as the Attorney General may 
     prescribe, to State and local programs designed to combat 
     hate crimes committed by juveniles, including programs to 
     train local law enforcement officers in identifying, 
     investigating, prosecuting, and preventing hate crimes.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

     SEC. __06. AUTHORIZATION FOR ADDITIONAL PERSONNEL TO ASSIST 
                   STATE AND LOCAL LAW ENFORCEMENT.

       There are authorized to be appropriated to the Department 
     of the Treasury and the Department of Justice, including the 
     Community Relations Service, for fiscal years 2005, 2006, and 
     2007 such sums as are necessary to increase the number of 
     personnel to prevent and respond to alleged violations of 
     section 249 of title 18, United States Code, as added by 
     section __07.

     SEC. __07. PROHIBITION OF CERTAIN HATE CRIME ACTS.

       (a) In General.--Chapter 13 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 249. Hate crime acts

       ``(a) In General.--
       ``(1) Offenses involving actual or perceived race, color, 
     religion, or national origin.--Whoever, whether or not acting 
     under color of law, willfully causes bodily injury to any 
     person or, through the use of fire, a firearm, or an 
     explosive or incendiary device, attempts to cause bodily 
     injury to any person, because of the actual or perceived 
     race, color, religion, or national origin of any person--
       ``(A) shall be imprisoned not more than 10 years, fined in 
     accordance with this title, or both; and
       ``(B) shall be imprisoned for any term of years or for 
     life, fined in accordance with this title, or both, if--
       ``(i) death results from the offense; or
       ``(ii) the offense includes kidnaping or an attempt to 
     kidnap, aggravated sexual abuse or an attempt to commit 
     aggravated sexual abuse, or an attempt to kill.
       ``(2) Offenses involving actual or perceived religion, 
     national origin, gender, sexual orientation, or disability.--
       ``(A) In general.--Whoever, whether or not acting under 
     color of law, in any circumstance described in subparagraph 
     (B), willfully causes bodily injury to any person or, through 
     the use of fire, a firearm, or an explosive or incendiary 
     device, attempts to cause bodily injury to any person, 
     because of the actual or perceived religion, national origin, 
     gender, sexual orientation, or disability of any person--
       ``(i) shall be imprisoned not more than 10 years, fined in 
     accordance with this title, or both; and
       ``(ii) shall be imprisoned for any term of years or for 
     life, fined in accordance with this title, or both, if--

       ``(I) death results from the offense; or
       ``(II) the offense includes kidnaping or an attempt to 
     kidnap, aggravated sexual abuse or an attempt to commit 
     aggravated sexual abuse, or an attempt to kill.

       ``(B) Circumstances described.--For purposes of 
     subparagraph (A), the circumstances described in this 
     subparagraph are that--
       ``(i) the conduct described in subparagraph (A) occurs 
     during the course of, or as the result of, the travel of the 
     defendant or the victim--

       ``(I) across a State line or national border; or

       ``(II) using a channel, facility, or instrumentality of 
     interstate or foreign commerce;

       ``(ii) the defendant uses a channel, facility, or 
     instrumentality of interstate or foreign commerce in 
     connection with the conduct described in subparagraph (A);
       ``(iii) in connection with the conduct described in 
     subparagraph (A), the defendant employs a firearm, explosive 
     or incendiary device, or other weapon that has traveled in 
     interstate or foreign commerce; or
       ``(iv) the conduct described in subparagraph (A)--

       ``(I) interferes with commercial or other economic activity 
     in which the victim is engaged at the time of the conduct; or
       ``(II) otherwise affects interstate or foreign commerce.

       ``(b) Certification Requirement.--No prosecution of any 
     offense described in this subsection may be undertaken by the 
     United States, except under the certification in writing of 
     the Attorney General, the Deputy Attorney General, the 
     Associate Attorney General, or any Assistant Attorney General 
     specially designated by the Attorney General that--
       ``(1) he or she has reasonable cause to believe that the 
     actual or perceived race, color, religion, national origin, 
     gender, sexual orientation, or disability of any person was a 
     motivating factor underlying the alleged conduct of the 
     defendant; and

[[Page 10363]]

       ``(2) he or his designee or she or her designee has 
     consulted with State or local law enforcement officials 
     regarding the prosecution and determined that--
       ``(A) the State does not have jurisdiction or does not 
     intend to exercise jurisdiction;
       ``(B) the State has requested that the Federal Government 
     assume jurisdiction;
       ``(C) the State does not object to the Federal Government 
     assuming jurisdiction; or
       ``(D) the verdict or sentence obtained pursuant to State 
     charges left demonstratively unvindicated the Federal 
     interest in eradicating bias-motivated violence.
       ``(c) Definitions.--In this section--
       ``(1) the term `explosive or incendiary device' has the 
     meaning given the term in section 232 of this title; and
       ``(2) the term `firearm' has the meaning given the term in 
     section 921(a) of this title.''.
       (b) Technical and Conforming Amendment.--The analysis for 
     chapter 13 of title 18, United States Code, is amended by 
     adding at the end the following:

``249. Hate crime acts.''.

     SEC. __08. DUTIES OF FEDERAL SENTENCING COMMISSION.

       (a) Amendment of Federal Sentencing Guidelines.--Pursuant 
     to the authority provided under section 994 of title 28, 
     United States Code, the United States Sentencing Commission 
     shall study the issue of adult recruitment of juveniles to 
     commit hate crimes and shall, if appropriate, amend the 
     Federal sentencing guidelines to provide sentencing 
     enhancements (in addition to the sentencing enhancement 
     provided for the use of a minor during the commission of an 
     offense) for adult defendants who recruit juveniles to assist 
     in the commission of hate crimes.
       (b) Consistency With Other Guidelines.--In carrying out 
     this section, the United States Sentencing Commission shall--
       (1) ensure that there is reasonable consistency with other 
     Federal sentencing guidelines; and
       (2) avoid duplicative punishments for substantially the 
     same offense.

     SEC. __09. STATISTICS.

       Subsection (b)(1) of the first section of the Hate Crimes 
     Statistics Act (28 U.S.C. 534 note) is amended by inserting 
     ``gender,'' after ``race,''.

     SEC. __10. SEVERABILITY.

       If any provision of this title, an amendment made by this 
     title, or the application of such provision or amendment to 
     any person or circumstance is held to be unconstitutional, 
     the remainder of this title, the amendments made by this 
     title, and the application of the provisions of such to any 
     person or circumstance shall not be affected thereby.
                                 ______
                                 
  SA 3184. Mr. GRAHAM of Florida (for himself and Mr. Nelson of 
Florida) submitted an amendment intended to be proposed by him to the 
bill S. 2400, to authorize appropriations for fiscal year 2005 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       At end of subtitle B of title I, add the following:

     SEC. 113. INTEGRATION OF JAVELIN ANTI-ARMOR MISSILE SYSTEM 
                   INTO ENGAGEMENT SKILLS TRAINER 2000.

       The amount authorized to be appropriated by section 101(5) 
     for other procurement for the Army is hereby increased by 
     $3,000,000, with the amount of the increase to be allocated 
     to the integration of the JAVELIN anti-armor missile system 
     into the Engagement Skills Trainer 2000 in order to allow 
     soldiers in infantry rifle platoons to train will all their 
     organic weapons.
                                 ______
                                 
  SA 3185. Mr. GRAHAM of Florida (for himself and Mr. Nelson of 
Florida) submitted an amendment intended to be proposed by him to the 
bill S. 2400, to authorize appropriations for fiscal year 2005 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of subtitle B of title III, add the following:

     SEC. 313. NAVAL PROFESSIONAL MILITARY EDUCATION.

       The amount authorized to be appropriated by section 301(2) 
     for operation and maintenance for the Navy is hereby 
     increased by $4,000,000, with the amount of the increase to 
     be allocated to Naval Professional Military Education (NPME).
                                 ______
                                 
  SA 3186. Mr. GRAHAM of Florida (for himself and Mr. Nelson of 
Florida) submitted an amendment intended to be proposed by him to the 
bill S. 2400, to authorize appropriations for fiscal year 2005 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of subtitle B of title II, add the following:

     SEC. 217. ADVANCED DIGITAL RADAR SYSTEM.

       The amount authorized to be appropriated by section 201(1) 
     for research, development, test, and evaluation, Army, is 
     hereby increased by $3,000,000, with the amount of the 
     increase to be made available for initial development of the 
     Advanced Digital Radar System (ADRS) (PE 0605602A).
                                 ______
                                 
  SA 3187. Mr. GRAHAM of Florida (for himself and Mr. Nelson of 
Florida) submitted an amendment intended to be proposed by him to the 
bill S. 2400, to authorize appropriations for fiscal year 2005 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of subtitle B of title III, add the following:

     SEC. 313. DEPLOYMENT AND EXPANSION OF CIVIL SUPPORT TEAM 
                   TRAINER PROGRAM.

       The amount authorized to be appropriated by section 301(1) 
     for operation and maintenance for the Army is hereby 
     increased by $5,000,000, with the amount of the increase to 
     be allocated to deploy and expand the scenarios in the Civil 
     Support Team Trainer (CSTT) program, a simulations based 
     training program for the National Guard Weapons of Mass 
     Destruction Civil Support Teams (WMD-CSTs).
                                 ______
                                 
  SA 3188. Mr. GRAHAM of Florida (for himself and Mr. Nelson of 
Florida) submitted an amendment intended to be proposed by him to the 
bill S. 2400, to authorize appropriations for fiscal year 2005 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

         At the end of subtitle B of title III, add the following:

     SEC. 313. ROTARY WING NIGHT VISION GOGGLE TRAINING.

       The amount authorized to be appropriated by section 301(2) 
     for operation and maintenance for the Navy is hereby 
     increased by $4,000,000, with the amount of the increase to 
     be allocated to the development of rotary wing night vision 
     goggle (NVG) training.
                                 ______
                                 
  SA 3189. Mr. GRAHAM of Florida (for himself and Mr. Nelson of 
Florida) submitted an amendment intended to be proposed by him to the 
bill S. 2400, to authorize appropriations for fiscal year 2005 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

         At the end of subtitle B of title II, add the following:

     SEC. 217. RAPID RESPONSE NETWORKING FOR MULTIPLE 
                   APPLICATIONS.

       The amount authorized to be appropriated by section 201(4) 
     for research, development, test, and evaluation, Defense-wide 
     activities, is hereby increased by $1,500,000, with the 
     amount of the increase to be allocated to the Defense Threat 
     Reducation Agency and made available to the University of 
     North Florida for the purpose of permitting the University to 
     continue its ongoing research on Rapid Response networking 
     for Multiple Applications.
                                 ______
                                 
  SA 3190. Mr. DASCHLE submitted an amendment intended to be proposed 
by him to the bill S. 2400, to authorize appropriations for fiscal year 
2005 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

         On page 131, between lines 17 and 18, insert the 
     following:

     SEC. 653. RELIEF FOR MOBILIZED MILITARY RESERVISTS FROM 
                   CERTAIN FEDERAL AGRICULTURAL LOAN OBLIGATIONS.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981-2009dd-

[[Page 10364]]

     7) is amended by inserting after section 331F the following:

     ``SEC. 332. RELIEF FOR MOBILIZED MILITARY RESERVISTS FROM 
                   CERTAIN AGRICULTURAL LOAN OBLIGATIONS.

       ``(a) Forgiveness of Interest Payments Due While Borrower 
     Is a Mobilized Military Reservist.--Any requirement that a 
     borrower of a direct loan made under this title make any 
     interest payment on the loan that would otherwise be required 
     to be made while the borrower is a mobilized military 
     reservist is hereby rescinded.
       ``(b) Deferral of Principal Payments Due While or After 
     Borrower Is a Mobilized Military Reservist.--The due date of 
     any payment of principal on a direct loan made to a borrower 
     under this title that would otherwise be required to be made 
     while or after the borrower is a mobilized military reservist 
     is hereby deferred for a period equal in length to the period 
     for which the borrower is a mobilized military reservist.
       ``(c) Mobilized Military Reservist.--In this section, the 
     term `mobilized military reservist' means an individual who--
       ``(1) is on active duty under section 688, 12301(a), 
     12301(g), 12302, 12304, 12306, or 12406, or chapter 15 of 
     title 10, United States Code, or any other provision of law 
     during a war or during a national emergency declared by the 
     President or Congress, regardless of the location at which 
     the active duty service is performed; or
       ``(2) in the case of a member of the National Guard, is on 
     full-time National Guard duty (as defined in section 
     101(d)(5) of title 10, United States Code) under a call to 
     active service authorized by the President or the Secretary 
     of Defense for a period of more than 30 consecutive days 
     under section 502(f) of title 32, United States Code, for 
     purposes of responding to a national emergency declared by 
     the President and supported by Federal funds.''.
                                 ______
                                 
  SA 3191. Mr. KYL (for himself and Mr. Cornyn) proposed an amendment 
to the bill S. 2400, to authorize appropriations for fiscal year 2005 
for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; as follows:

       At the end of the amendment, insert the following:

     SEC. 858. SENSE OF THE SENATE REGARDING EXCISE TAXES ON 
                   EXCESS FEE TRANSACTIONS OF CERTAIN ATTORNEYS.

       It is the sense of the Senate that Congress should, as soon 
     as practicable, enact the following legislation:

     SEC. __. EXCISE TAXES ON EXCESS FEE TRANSACTIONS OF CERTAIN 
                   ATTORNEYS.

       (a) Imposition of Tax.--
       (1) In general.--Subchapter D of chapter 42 of the Internal 
     Revenue Code of 1986 (relating to failure by certain 
     charitable organizations to meet certain qualification 
     requirements) is amended by adding at the end the following 
     new section:

     ``SEC. 4959. TAXES ON EXCESS FEE TRANSACTIONS.

       ``(a) Initial Taxes.--
       ``(1) In general.--There is hereby imposed on the 
     collecting attorney in each excess fee transaction a tax 
     equal to 5 percent of the excess fee.
       ``(2) Payment.--The tax imposed by paragraph (1) shall be 
     paid by any collecting attorney referred to in subsection 
     (f)(1) with respect to such transaction.
       ``(b) Additional Tax on the Collecting Attorney.--
       ``(1) In general.--In any case in which a tax is imposed by 
     subsection (a) on an excess fee transaction and the excess 
     fee involved in such transaction is not corrected within the 
     taxable period, there is hereby imposed a tax equal to 200 
     percent of the excess fee involved.
       ``(2) Payment.--The tax imposed by this paragraph shall be 
     paid by any collecting attorney referred to in subsection 
     (f)(1) with respect to such transaction.
       ``(c) Excess Fee Transaction; Excess Fee.--For purposes of 
     this section--
       ``(1) Excess fee transaction.--
       ``(A) In general.--The term `excess fee transaction' means 
     any transaction in which a fee is provided by an applicable 
     plaintiff (including payments resulting from litigation on 
     behalf of an applicable plaintiff determined on an hourly or 
     percentage basis, whether such fee is paid from the 
     applicable plaintiff's recovery, pursuant to a separately 
     negotiated agreement, or in any other manner), directly or 
     indirectly, to or for the use of any collecting attorney with 
     respect to such applicable plaintiff if the amount of the fee 
     provided exceeds the value of the services received in 
     exchange therefor or subsection (g)(1) applies.
       ``(B) Determination of value.--For purposes of subparagraph 
     (A), in determining whether the amount of the fee provided 
     exceeds the value of the services received in exchange 
     therefor, the value of the services shall be the sum of--
       ``(i) the reasonable expenses incurred by the collecting 
     attorney in the course of the representation of the 
     applicable plaintiff, and
       ``(ii) a reasonable fee based on--

       ``(I) the number of hours of non-duplicative, professional 
     quality legal work provided by the collecting attorney of 
     material value to the outcome of the representation of the 
     applicable plaintiff, taking into account the factors 
     described in subparagraphs (B) and (D) of subsection (h)(2),
       ``(II) reasonable hourly rates for the individuals 
     performing such work based on hourly rates charged by other 
     attorneys for the rendition of comparable services, including 
     rates charged by adversary defense counsel in the 
     representation, taking into account the factors described in 
     subparagraphs (A), (C), (E), and (G) of subsection (h)(2), 
     and
       ``(III) to the extent such items are not taken into account 
     in establishing the reasonable hourly rates under subclause 
     (II), an appropriate adjustment rate determined in accordance 
     with subparagraph (C) to compensate the collecting attorney 
     for periods of substantial risk of non-payment of fees and 
     for skillful or innovative services which increase the amount 
     of the applicable plaintiff's recovery.

       ``(iii) Fees in certain settlements.--For purposes of this 
     subparagraph, the value of services for any collecting 
     attorney receiving fees under the Master Settlement Agreement 
     shall be deemed to include a reasonable fee that is based on 
     a reasonable hourly rate (including appropriate adjustment 
     rates) of not less than $20,000 per hour
       ``(C) Adjustment rate.--
       ``(i) In general.--For purposes of this paragraph, an 
     appropriate adjustment rate is a percentage of the reasonable 
     hourly rate under subparagraph (B)(ii)(II) which is added to 
     the amount of such rate and which is not more than the sum of 
     one risk percentage and one skill percentage described in 
     clauses (ii) and (iii), respectively.
       ``(ii) Risk percentage.--For purposes of this subparagraph, 
     the term `risk percentage' means a percentage rate that is 
     proportional to the collecting attorney's risk of nonrecovery 
     of fees and which is--

       ``(I) in the case of a collecting attorney who assumed a 
     substantial risk of nonpayment of fees, not more than 100 
     percent,
       ``(II) in the case of a collecting attorney who assumed a 
     substantial risk of nonpayment of fees and devoted more than 
     8,000 hours of legal work (as described in subparagraph 
     (B)(ii)(I)) and more than 2 years to the case before 
     resolution of all claims, not more than 200 percent, or
       ``(III) in the case of a collecting attorney who assumed a 
     substantial risk of nonpayment of fees and devoted more than 
     15,000 hours of legal work (as described in subparagraph 
     (B)(ii)(I)) and more than 4 years to the case before 
     resolution of all claims, not more than 300 percent.

       ``(iii) Skill percentage.--For purposes of this 
     subparagraph, the term `skill percentage' means, in the case 
     of a collecting attorney who has demonstrated exceptionally 
     skillful or innovative legal service which generated a 
     recovery for the applicable plaintiff substantially greater 
     than the typical recovery in similar cases, a percentage rate 
     that is proportional to the increase in the applicable 
     plaintiff's recovery and that is not more than 100 percent.
       ``(iv) Limitation.--An appropriate adjustment rate shall 
     not increase the collecting attorney's fee above an amount 
     that is proportional to the applicable plaintiff's recovery.
       ``(D) Court approval of fees.--Fee payments approved by any 
     court shall be presumed to not be in excess of the value of 
     the services received in exchange therefor if the court 
     approving the fee--
       ``(i) did not approve an adjustment rate greater than that 
     determined to be appropriate under subparagraph (C) in a case 
     where such fee included an adjustment rate, and
       ``(ii) obtained and relied upon a report of a legal 
     auditing firm with respect to such fee in accordance with the 
     procedures in paragraph (12).
       ``(2) Excess fee.--The term `excess fee' means the excess 
     referred to in paragraph (1)(A).
       ``(d) Joint and Several Liability.--For purposes of this 
     section, if more than 1 person is liable for any tax imposed 
     by subsection (a), all such persons shall be jointly and 
     severally liable for such tax.
       ``(e) Applicable Plaintiff.--For purposes of this section, 
     the term `applicable plaintiff' means any person represented 
     by a collecting attorney with respect to a claim described in 
     subsection (f)(1).
       ``(f) Other Definitions and Rules.--For purposes of this 
     section--
       ``(1) Collecting attorney.--The term `collecting attorney' 
     means any person engaged in the practice of law who 
     represents--
       ``(A) any governmental entity, including any State, 
     municipality, or political subdivision of a State, or any 
     person acting on such entity's behalf, including pursuant to 
     Federal or State Qui Tam statutes, in a claim for recoupment 
     of payments made or to be made by such entity to or on behalf 
     of any natural person by reason, directly or indirectly, of a 
     breach of duty that causes damage to such natural person,
       ``(B) any organization described in paragraph (3) or (4) of 
     section 501(c) and exempt

[[Page 10365]]

     from tax under section 501(a), in a claim for damages based 
     on a breach of duty, whether civil or criminal, causing 
     damage to such organization,
       ``(C) any natural person seeking to recover damages in a 
     claim based on breaches of duty, whether civil or criminal, 
     causing damage to such natural person, or
       ``(D) any assignee or other holder of claims described in 
     subparagraph (A), (B), or (C),
     when 1 or more of such claims, whether or not joined in 1 
     action, involve the same or a coordinated group of 
     plaintiff's attorneys or similarly situated defendants, arise 
     out of the same transaction or set of facts or involve 
     substantially similar liability issues, and result in 
     settlements or judgments aggregating at least $100,000,000.
       ``(2) Taxable period.--The term `taxable period' means, 
     with respect to any excess fee transaction, the period 
     beginning with the date on which the transaction occurs and 
     ending 90 days after the earliest of--
       ``(A) the date of the mailing of a notice of deficiency 
     under section 6212 with respect to the tax imposed by 
     subsection (a), or
       ``(B) the date on which the tax imposed by subsection (a) 
     is assessed.
       ``(3) Master settlement agreement.--The term `Master 
     Settlement Agreement' means that certain Master Settlement 
     Agreement of November 23, 1998, and other, concluded 
     Settlement Agreements based on State health care expenditures 
     pursuant to title XIX of the Social Security Act (42 U.S.C. 
     1396 et seq.), including lawsuits involving the States of 
     Florida, Minnesota, Mississippi, and Texas.
       ``(4) Correction.--
       ``(A) General rule.--Any excess fee transaction is 
     corrected by undoing the excess fee to the extent possible 
     and taking any additional measures necessary to place the 
     applicable plaintiff in a financial position not worse than 
     that in which such plaintiff would be if the collecting 
     attorney were dealing under the highest fiduciary standards.
       ``(B) Payment of excess fees.--
       ``(i) In general.--Except as provided in clause (ii), a 
     collecting attorney corrects an excess fee transaction by 
     paying any excess fees plus interest to the applicable 
     plaintiff.
       ``(ii) Certain settlements.--In the case of excess fees 
     arising from or related to the Master Settlement Agreement, 
     the collecting attorney corrects an excess fee transaction by 
     paying any excess fees plus interest to the Secretary of the 
     Treasury.
       ``(C) No waiver of fee.--No collecting attorney may avoid 
     imposition of any tax imposed by this section by transferring 
     any portion of the excess fee or refusing to accept any 
     portion of the excess fee.
       ``(5) Limited Reasonable Cause.--For purposes of section 
     4962(a), an excess fee transaction shall not be treated as an 
     event which was due to reasonable cause if the amount of the 
     fee provided would exceed the value of the services received 
     in exchange therefor determined with the maximum adjustment 
     rate allowed under subsection (c)(1)(C).
       ``(g) Disclosure Requirements.--
       ``(1) Treatment as excess fee.--Any fee provided after the 
     date of the enactment of this subsection by an applicable 
     plaintiff (including payments resulting from litigation on 
     behalf of an applicable plaintiff determined on an hourly or 
     percentage basis, whether such fee is paid from the 
     applicable plaintiff's recovery, pursuant to a separately 
     negotiated agreement, or in any other manner), directly or 
     indirectly, to or for the use of any collecting attorney with 
     respect to such applicable plaintiff shall be deemed to be an 
     excess fee provided in an excess fee transaction unless the 
     disclosure requirements described in paragraph (2) are met.
       ``(2) Contents of statement.--The disclosure requirements 
     of this paragraph are met for any taxable year in which a 
     collecting attorney receives any fees with respect to a claim 
     described in subsection (f)(1), if such collecting attorney--
       ``(A) includes in the return of tax for such taxable year a 
     statement including the information described in subsection 
     (c)(1) with respect to such claim, and
       ``(B) provides a statement including the information 
     described in subsection (c)(1) to the applicable plaintiff 
     prior to the deadline (including extensions) for filing such 
     return.
       ``(h) Legal Auditing Firm.--
       ``(1) In general.--In any case before a Federal district 
     court or a State court in which the court approves fees paid 
     to a collecting attorney, the court shall seek bids from 
     legal auditing firms with a specialty in reviewing attorney 
     billings and select 1 such legal auditing firm to review the 
     billing records submitted by the collecting attorney, under 
     the same standards the firm would use if it were hired by a 
     private party to review legal bills submitted to the party, 
     for the reasonableness of such attorney's billing patterns 
     and practices. The court shall require the collecting 
     attorney to submit billing records, cost records, and any 
     other information sought by such firm in its review.
       ``(2) Review by legal auditing firm.--In reviewing the 
     billing records and work performed by the collecting 
     attorney, the legal auditing firm shall address all relevant 
     matters, including--
       ``(A) the hourly rates of the collecting attorney compared 
     with the prevailing market rates for the services rendered by 
     the collecting attorney,
       ``(B) the number of hours worked by the collecting attorney 
     on the case compared with other cases that the collecting 
     attorney worked on during the same period,
       ``(C) whether the collecting attorney performed tasks that 
     could have been performed by attorneys with lower billing 
     rates,
       ``(D) whether the collecting attorney used appropriate 
     billing methodology, including keeping contemporaneous time 
     records and using appropriate billing time increments,
       ``(E) whether particular tasks were staffed appropriately,
       ``(F) whether the costs and expenses submitted by the 
     collecting attorney were reasonable,
       ``(G) whether the collecting attorney exercised billing 
     judgment, and
       ``(H) any other matters normally addressed by the legal 
     auditing firm when reviewing attorney billings for private 
     clients.
       ``(3) Filing of report; response; burden of proof.--The 
     court shall set a date for the filing of the report of the 
     legal auditing firm, and allow the collecting attorney or any 
     applicable plaintiff to respond to the report within a 
     reasonable time period. The report shall be presumed correct 
     unless rebutted by the collecting attorney or any applicable 
     plaintiff by clear and convincing evidence.
       ``(4) Fee for legal auditing firm.--The fee for the report 
     of the legal auditing firm shall be paid from the collecting 
     attorney's fee award, the applicable plaintiff's recovery, or 
     both in a manner determined by the court.
       ``(i) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     this section, including regulations to prevent avoidance of 
     the purposes of this section and regulations requiring 
     recordkeeping and information reporting.''.
       (2) Conforming and clerical amendments.--
       (A) Subsections (a), (b), and (c) of section 4963 of the 
     Internal Revenue Code of 1986 are each amended by inserting 
     ``4959,'' after ``4958,''.
       (B) Subsection (e) of section 6213 of such Code is amended 
     by inserting ``4959 (relating to excess fee transactions),'' 
     before ``4971''.
       (C) Paragraphs (2) and (3) of section 7422(g) of such Code 
     are each amended by inserting ``4959,'' after ``4958,''.
       (D) The heading for subchapter D of chapter 42 of such Code 
     is amended to read as follows:

``Subchapter D--Failure by Certain Charitable Organizations and Persons 
 to Meet Certain Qualification Requirements and Fiduciary Standards.''.

       (E) The table of subchapters for chapter 42 of such Code is 
     amended by striking the item relating to subchapter D and 
     inserting the following:

``Subchapter D. Failure by certain charitable organizations and persons 
              to meet certain qualification requirements and fiduciary 
              standards.''.

       (F) The table of sections for subchapter D of chapter 42 of 
     such Code is amended by adding at the end the following new 
     item:

``Sec. 4959. Taxes on excess fee transactions.''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to excess fees paid on or after the date of the 
     enactment of this Act.
       (b) Declatory Judgments Relating to Excise Taxes on Excise 
     Fee Transactions of Certain Attorneys.--
       (1) In general.--Subchapter B of chapter 76 of the Internal 
     Revenue Code of 1986 (relating to judicial proceedings) is 
     amended by redesignating section 7437 as section 7438 and by 
     inserting after section 7436 the following new section:

     ``SEC. 7437. DECLARATORY JUDGMENTS RELATING TO TAX ON EXCESS 
                   FEE TRANSACTIONS.

       ``(a) In General.--In a case of actual controversy 
     involving--
       ``(1) a determination by the Secretary or the collecting 
     attorney with respect to the imposition of the excise tax on 
     excess fee transactions on such collecting attorney under 
     section 4959, or
       ``(2) a failure by the Secretary or the collecting attorney 
     to make such a determination,

     upon the filing of an appropriate pleading by an applicable 
     plaintiff, the Tax Court may make a declaration with respect 
     to such determination or failure. Any such declaration shall 
     have the force and effect of a decision of the Tax Court and 
     shall be reviewable as such.
       ``(b) Deferential Review.--If a collecting attorney's fee 
     has been approved by a court in accordance with section 
     4959(c)(1)(D) or by the Secretary pursuant to section 4959, 
     the Tax Court shall review the fee only for an abuse of 
     discretion.
       ``(c) Legal Auditing Firm.--In any petition for a 
     declaration referred to in subsection (a):
       ``(1) No previous report.--If a report by a legal auditing 
     firm that meets the requirements of section 4959(h) has not 
     been previously produced and relied on by another

[[Page 10366]]

     court, the Tax Court shall hire such a legal auditing firm 
     and rely on its report pursuant to the procedures in section 
     4959(h).
       ``(2) Second report.--
       ``(A) In general.--If a report by a legal auditing firm has 
     been approved by a court in accordance with section 4959, the 
     Tax Court shall hire a second legal auditing firm upon the 
     request of the petitioner.
       ``(B) Fee for report.--The Tax Court may direct the 
     petitioner to pay the fee for any report of a legal auditing 
     firm provided pursuant to subparagraph (A).
       ``(d) Time for Bringing Action.--No proceeding may be 
     initiated under this section by any person until 90 days 
     after such person first notifies the Secretary of the excess 
     fee transaction with respect to which the proceeding relates.
       ``(e) Definitions.--For purposes of this section, any term 
     used in this section and also in section 4959 shall have the 
     meaning given such term by section 4959.''.
       (2) Clerical amendment.--The table of sections for 
     subchapter B of chapter 76 of the Internal Revenue Code of 
     1986 is amended by striking the item relating to section 7437 
     and by inserting the following new items:

``Sec. 7437. Declaratory judgments relating to tax on excess fee 
              transactions.
``Sec. 7438. Cross references.''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to actions filed on or after the date of the 
     enactment of this Act.
       (c) Use of Certain Fees.--Any fees collected by the 
     Secretary of the Treasury pursuant to section 
     4959(f)(4)(B)(ii) of the Internal Revenue Code of 1986 (as 
     added by subsection (a)), shall be made available to the 
     Secretary of Defense, as provided by appropriation Acts, for 
     making expenditures to address the readiness, force 
     protection, and safety needs arising out of the ongoing 
     global war on terrorism. Such expenditures shall include 
     additional--
       (1) up-armored High Mobility Multipurpose Wheeled Vehicles;
       (2) add-on ballistic protection for medium and heavy 
     wheeled vehicles;
       (3) Interceptor Body Armor, including add-on protection for 
     the shoulder and side body areas;
       (4) unmanned aerial vehicles;
       (5) ammunition and selected items of high priority (such as 
     vehicles, night vision devices, sensors, and Javelin 
     missiles); and
       (6) replacement of equipment lost in combat.
                                 ______
                                 
  SA 3192. Mr. DOMENICI (for himself, Mrs. Feinstein, Mr. Lugar, Mr. 
Biden, Mr. Alexander, Mr. Bingaman, Mr. Reed, Mr. Akaka, Mr. Warner, 
Mr. Levin, and Mr. Feingold) proposed an amendment to the bill S. 2400, 
to authorize appropriations for fiscal year 2005 for military 
activities of the Department of Defense, for military construction, and 
for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Services, and 
for other purposes; as follows:

       At the end of subtitle C of title XXXI, add the following:

     SEC. 3132. ACCELERATION OF REMOVAL OR SECURITY OF FISSILE 
                   MATERIALS, RADIOLOGICAL MATERIALS, AND RELATED 
                   EQUIPMENT AT VULNERABLE SITES WORLDWIDE.

       (a) Sense of Congress.--(1) It is the sense of Congress 
     that the security, including the rapid removal or secure 
     storage, of high-risk, proliferation-attractive fissile 
     materials, radiological materials, and related equipment at 
     vulnerable sites worldwide should be a top priority among the 
     activities to achieve the national security of the United 
     States.
       (2) It is the sense of Congress that the President may 
     establish in the Department of Energy a task force to be 
     known as the Task Force on Nuclear Materials to carry out the 
     program authorized by subsection (b).
       (b) Program Authorized.--The Secretary of Energy may carry 
     out a program to undertake an accelerated, comprehensive 
     worldwide effort to mitigate the threats posed by high-risk, 
     proliferation-attractive fissile materials, radiological 
     materials, and related equipment located at sites potentially 
     vulnerable to theft or diversion.
       (c) Program Elements.--(1) Activities under the program 
     under subsection (b) may include the following:
       (A) Accelerated efforts to secure, remove, or eliminate 
     proliferation-attractive fissile materials or radiological 
     materials in research reactors, other reactors, and other 
     facilities worldwide.
       (B) Arrangements for the secure shipment of proliferation-
     attractive fissile materials, radiological materials, and 
     related equipment to other countries willing to accept such 
     materials and equipment, or to the United States if such 
     countries cannot be identified, and the provision of secure 
     storage or disposition of such materials and equipment 
     following shipment.
       (C) The transportation of proliferation-attractive fissile 
     materials, radiological materials, and related equipment from 
     sites identified as proliferation risks to secure facilities 
     in other countries or in the United States.
       (D) The processing and packaging of proliferation-
     attractive fissile materials, radiological materials, and 
     related equipment in accordance with required standards for 
     transport, storage, and disposition.
       (E) The provision of interim security upgrades for 
     vulnerable, proliferation-attractive fissile materials and 
     radiological materials and related equipment pending their 
     removal from their current sites.
       (F) The utilization of funds to upgrade security and 
     accounting at sites where proliferation-attractive fissile 
     materials or radiological materials will remain for an 
     extended period of time in order to ensure that such 
     materials are secure against plausible potential threats and 
     will remain so in the future.
       (G) The management of proliferation-attractive fissile 
     materials, radiological materials, and related equipment at 
     secure facilities.
       (H) Actions to ensure that security, including security 
     upgrades at sites and facilities for the storage or 
     disposition of proliferation-attractive fissile materials, 
     radiological materials, and related equipment, continues to 
     function as intended.
       (I) The provision of technical support to the International 
     Atomic Energy Agency (IAEA), other countries, and other 
     entities to facilitate removal of, and security upgrades to 
     facilities that contain, proliferation-attractive fissile 
     materials, radiological materials, and related equipment 
     worldwide.
       (J) The development of alternative fuels and irradiation 
     targets based on low-enriched uranium to convert research or 
     other reactors fueled by highly-enriched uranium to such 
     alternative fuels, as well as the conversion of reactors and 
     irradiation targets employing highly-enriched uranium to 
     employment of such alternative fuels and targets.
       (K) Accelerated actions for the blend down of highly-
     enriched uranium to low-enriched uranium.
       (L) The provision of assistance in the closure and 
     decommissioning of sites identified as presenting risks of 
     proliferation of proliferation-attractive fissile materials, 
     radiological materials, and related equipment.
       (M) Programs to--
       (i) assist in the placement of employees displaced as a 
     result of actions pursuant to the program in enterprises not 
     representing a proliferation threat; and
       (ii) convert sites identified as presenting risks of 
     proliferation regarding proliferation-attractive fissile 
     materials, radiological materials, and related equipment to 
     purposes not representing a proliferation threat to the 
     extent necessary to eliminate the proliferation threat.
       (2) The Secretary of Energy shall, in coordination with the 
     Secretary of State, carry out the program in consultation 
     with, and with the assistance of, appropriate departments, 
     agencies, and other entities of the United States Government.
       (3) The Secretary of Energy shall, with the concurrence of 
     the Secretary of State, carry out activities under the 
     program in collaboration with such foreign governments, non-
     governmental organizations, and other international entities 
     as the Secretary considers appropriate for the program.
       (d) Reports.--(1) Not later than March 15, 2005, the 
     Secretary shall submit to Congress a classified interim 
     report on the program under subsection (b).
       (2) Not later than January 1, 2006, the Secretary shall 
     submit to Congress a classified final report that includes 
     the following:
       (A) A survey by the Secretary of the facilities and sites 
     worldwide that contain proliferation-attractive fissile 
     materials, radiological materials, or related equipment.
       (B) A list of sites determined by the Secretary to be of 
     the highest priority, taking into account risk of theft from 
     such sites, for removal or security of proliferation-
     attractive fissile materials, radiological materials, or 
     related equipment, organized by level of priority.
       (C) A plan, including activities under the program under 
     this section, for the removal, security, or both of 
     proliferation-attractive fissile materials, radiological 
     materials, or related equipment at vulnerable facilities and 
     sites worldwide, including measurable milestones, metrics, 
     and estimated costs for the implementation of the plan.
       (3) A summary of each report under this subsection shall 
     also be submitted to Congress in unclassified form.
       (e) Funding.--Amounts authorized to be appropriated to the 
     Secretary of Energy for defense nuclear nonproliferation 
     activities shall be available for purposes of the program 
     under this section.
       (f) Definitions.--In this section:
       (1) The term ``fissile materials'' means plutonium, highly-
     enriched uranium, or other material capable of sustaining an 
     explosive nuclear chain reaction, including irradiated items 
     containing such materials if the radiation field from such 
     items is not sufficient to prevent the theft or misuse of 
     such items.
       (2) The term ``radiological materials'' includes Americium-
     241, Californium-252, Cesium-137, Cobalt-60, Iridium-192, 
     Plutonium-238, Radium-226 and Strontium-90, Curium-244, 
     Strontium-90, and irradiated items containing such materials, 
     or other materials

[[Page 10367]]

     designated by the Secretary of Energy for purposes of this 
     paragraph.
       (3) The term ``related equipment'' includes equipment 
     useful for enrichment of uranium in the isotope 235 and for 
     extraction of fissile materials from irradiated fuel rods and 
     other equipment designated by the Secretary of Energy for 
     purposes of this section.
       (4) The term ``highly-enriched uranium'' means uranium 
     enriched to or above 20 percent in isotope 235.
       (5) The term ``low-enriched uranium'' means uranium 
     enriched below 20 percent in isotope 235.
       (6) The term ``proliferation-attractive'', in the case of 
     fissile materials and radiological materials, means 
     quantities and types of such materials that are determined by 
     the Secretary of Energy to present a significant risk to the 
     national security of the United States if diverted to a use 
     relating to proliferation.
                                 ______
                                 
  SA 3193. Mrs. MURRAY submitted an amendment intended to be proposed 
by her to the bill S. 2400, to authorize appropriations for fiscal year 
2005 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of division A, add the following:

   TITLE XIII--BENEFITS FOR RESERVES ON EXTENDED TOURS OF ACTIVE DUTY

     SEC. 1301. SHORT TITLE.

       This title may be cited as the ``Guard and Reserve Enhanced 
     Benefits Act of 2004''.

                 Subtitle A--Family Assistance Benefits

     SEC. 1311. MILITARY FAMILY LEAVE.

       (a) General Requirements for Leave.--
       (1) Definitions.--Section 101 of the Family and Medical 
     Leave Act of 1993 (29 U.S.C. 2611) is amended by adding at 
     the end the following:
       ``(14) Active duty.--The term `active duty' means duty 
     under a call or order to active duty under a provision of law 
     referred to in section 101(a)(13)(B) of title 10, United 
     States Code.
       ``(15) Qualified member.--The term `qualified member' means 
     a member of the reserve components on active duty for a 
     period of more than 30 days.''.
       (2) Entitlement to leave.--Section 102(a)(1) of such Act 
     (29 U.S.C. 2612(a)) is amended by adding at the end the 
     following:
       ``(E) Because the spouse, son, daughter, or parent of the 
     employee is a qualified member.''.
       (3) Schedule.--Section 102(b)(1) of such Act (29 U.S.C. 
     2612(b)(1)) is amended by inserting after the second sentence 
     the following: ``Leave under subsection (a)(1)(E) may be 
     taken intermittently or on a reduced leave schedule.''.
       (4) Substitution of paid leave.--Section 102(d)(2)(A) of 
     such Act (29 U.S.C. 2612(d)(2)(A)) is amended by striking 
     ``(A), (B), or (C)'' and inserting ``(A), (B), (C), or (E)''.
       (5) Notice.--Section 102(e) of such Act (29 U.S.C. 2612(e)) 
     is amended by adding at the end the following:
       ``(3) Notice for military family leave.--In any case in 
     which an employee seeks leave under subsection (a)(1)(E), the 
     employee shall provide such notice as is practicable.''.
       (6) Certification.--Section 103 of such Act (29 U.S.C. 
     2613) is amended by adding at the end the following:
       ``(f) Certification for Military Family Leave.--An employer 
     may require that a request for leave under section 
     102(a)(1)(E) be supported by a certification issued at such 
     time and in such manner as the Secretary may by regulation 
     prescribe.''.
       (b) Military Family Leave for Civil Service Employees.--
       (1) Definitions.--Section 6381 of title 5, United States 
     Code, is amended--
       (A) in paragraph (5), by striking ``and'' at the end;
       (B) in paragraph (6), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(7) the term `active duty' means duty under a call or 
     order to active duty under a provision of law referred to in 
     section 101(a)(13)(B) of title 10, United States Code; and
       ``(8) the term `qualified member' means a member of the 
     reserve components on active duty for a period of more than 
     30 days.''.
       (2) Entitlement to leave.--Section 6382(a) of such title is 
     amended by adding at the end the following:
       ``(E) Because the spouse, son, daughter, or parent of the 
     employee is a qualified member.''.
       (3) Schedule.--Section 6382(b)(1) of such title is amended 
     by inserting after the second sentence the following: ``Leave 
     under subsection (a)(1)(E) may be taken intermittently or on 
     a reduced leave schedule.''.
       (4) Substitution of paid leave.--Section 6382(d) of such 
     title is amended by striking ``(A), (B), (C), or (D)'' and 
     inserting ``(A), (B), (C), (D), or (E)''.
       (5) Notice.--Section 6382(e) of such title is amended by 
     adding at the end the following:
       ``(3) In any case in which an employee seeks leave under 
     subsection (a)(1)(E), the employee shall provide such notice 
     as is practicable.''.
       (6) Certification.--Section 6383 of such title is amended 
     by adding at the end the following:
       ``(f) An employing agency may require that a request for 
     leave under section 6382(a)(1)(E) be supported by a 
     certification issued at such time and in such manner as the 
     Office of Personnel Management may by regulation 
     prescribe.''.

     SEC. 1312. CHILD CARE ASSISTANCE FOR MILITARY DEPENDENTS.

       (a) Authorization of Appropriations.--Section 658B of the 
     Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858) is amended--
       (1) by striking ``There is'' and inserting ``(a) In 
     General.--There is'';
       (2) in subsection (a), as so designated, by inserting 
     ``(except section 658T)'' after ``this subchapter''; and
       (3) by adding at the end the following:
       ``(b) Child Care for Certain Military Dependents.--There is 
     authorized to be appropriated to carry out section 658T 
     $200,000,000 for each of fiscal years 2005 through 2009.''.
       (b) Child Care Assistance.--The Child Care and Development 
     Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended 
     by adding at the end the following:

     ``SEC. 658T. CHILD CARE ASSISTANCE FOR MILITARY DEPENDENTS.

       ``(a) In General.--The Secretary shall make grants to 
     eligible spouses to assist the spouses in paying for the cost 
     of child care services provided to dependents by eligible 
     child care providers. In making the grants, the Secretary 
     shall give priority to eligible spouses of qualified members 
     on active duty for a period of more than 6 months.
       ``(b) Definitions.--In this section:
       ``(1) Active duty.--The term `active duty' means duty under 
     a call or order to active duty under a provision of law 
     referred to in section 101(a)(13)(B) of title 10, United 
     States Code.
       ``(2) Active duty for a period of more than 30 days.--The 
     term `active duty for a period of more than 30 days' has the 
     meaning given the term in section 101(d)(2) of title 10, 
     United States Code.
       ``(3) Dependent.--The term `dependent' means an individual 
     who is--
       ``(A) a dependent, as defined in section 401 of title 37, 
     United States Code, except that such term does not include a 
     person described in paragraph (1) or (3) of subsection (a) of 
     such section; and
       ``(B) an individual described in subparagraphs (A) and (B) 
     of section 658P(4).
       ``(4) Eligible spouse.--The term `eligible spouse' means a 
     person who--
       ``(A) is a parent of one or more dependents of a qualified 
     member; and
       ``(B) has the primary responsibility for the care of one or 
     more such dependents.
       ``(5) Qualified member.--The term `qualified member' means 
     a member of the reserve components of the Armed Forces on 
     active duty for a period of more than 30 days.
       ``(c) Applications.--To be eligible to receive a grant 
     under this section, a spouse shall submit an application to 
     the Secretary, at such time, in such manner, and containing 
     such information as the Secretary may require, including a 
     description of the eligible child care provider who provides 
     the child care services assisted through the grant.
       ``(d) Rule.--The provisions of this subchapter, other than 
     section 658P and provisions referenced in section 658P, that 
     apply to assistance provided under this subchapter shall not 
     apply to assistance provided under this section.''.
       (c) Conforming Amendments.--Section 658O of the Child Care 
     and Development Block Grant Act of 1990 (42 U.S.C. 9858m) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``appropriated under this 
     subchapter'' and inserting ``appropriated under section 
     658B(a)''; and
       (B) in paragraph (2), by striking ``appropriated under 
     section 658B'' and inserting ``appropriated under section 
     658(a)''; and
       (2) in subsection (b)(1), by striking ``appropriated under 
     section 658B'' and inserting ``appropriated under section 
     658(a)''.

                     Subtitle B--Education Benefits

                  PART I--MONTGOMERY GI BILL BENEFITS

     SEC. 1321. BASIC EDUCATIONAL ASSISTANCE FOR MEMBERS OF 
                   SELECTED RESERVE SERVING EXTENDED OR RECURRING 
                   PERIODS ON ACTIVE DUTY.

       (a) Entitlement.--(1) Subsection (a)(1) of section 3011 of 
     title 38, United States Code, is amended--
       (A) in subparagraph (B), by striking ``or'' at the end;
       (B) in subparagraph (C), by adding ``or'' at the end; and
       (C) by adding at the end the following new subparagraph:
       ``(D) after September 11, 2001, while a member of the 
     Selected Reserve--
       ``(i) serves at least 12 months of continuous active duty 
     in the Armed Forces; or
       ``(ii) during any 60-month period, serves an aggregate of 
     24 months of continuous active duty in the Armed Forces;''.
       (2) Subsection (d)(3) of such section is amended by 
     striking ``The period of service''

[[Page 10368]]

     and inserting ``Except in the case of an individual described 
     in subsection (a)(1)(D), the period of service''.
       (b) Exclusion From Contributions for Increased 
     Assistance.--Subsection (e)(1) of such section is amended by 
     inserting ``(other than an individual described in subsection 
     (a)(1)(D)'' after ``Any individual''.
       (c) Amount of Assistance.--Section 3015(a) of such title is 
     amended by inserting after ``three years'' the following: 
     ``or an individual whose service on active duty on which such 
     entitlement is based is described in clause (i) or (ii) of 
     section 3011(a)(1)(D) of this title''.

     SEC. 1322. INCREASE IN AMOUNT OF EDUCATIONAL ASSISTANCE FOR 
                   MEMBERS OF SELECTED RESERVE.

       (a) Increase in Amounts.--Section 16131(b)(1) of title 10, 
     United States Code, is amended--
       (1) in subparagraph (A), by striking ``$251'' and inserting 
     ``$400'';
       (2) in subparagraph (B), by striking ``$188'' and inserting 
     ``$300''; and
       (3) in subparagraph (C), by striking ``$125'' and inserting 
     ``$200''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the date of the enactment of this Act, 
     and shall apply with respect to monthly rates of educational 
     assistance for months beginning on or after that date.

     SEC. 1323. MODIFICATION OF TIME LIMITATION FOR USE OF 
                   ENTITLEMENT TO EDUCATIONAL ASSISTANCE OF 
                   MEMBERS OF SELECTED RESERVE.

       Section 16133(a)(2) of title 10, United States Code, is 
     amended--
       (1) by inserting ``that is five years after the date'' 
     after ``on the date''; and
       (2) by striking ``first'' and inserting ``later''.

                   PART II--OTHER EDUCATION BENEFITS

     SEC. 1326. STUDENT LOAN DEFERMENTS.

       (a) FFEL and Direct Subsidized Loans.--Section 428(b)(1)(M) 
     of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(1)(M)) 
     is amended--
       (1) in clause (ii), by striking ``or'' after the semicolon;
       (2) in clause (iii), by inserting ``or'' after the 
     semicolon; and
       (3) by inserting after clause (iii) the following:
       ``(iv) during which the borrower is a member of the reserve 
     components of the Armed Forces on active duty for a period of 
     more than 30 days under a call or order to active duty under 
     a provision of law referred to in section 101(a)(13)(B) of 
     title 10, United States Code, and for 3 months following 
     discharge or release from such active duty.''.
       (b) Consolidation Loans.--Section 428C(b)(4)(C)(ii) of the 
     Higher Education Act of 1965 (20 U.S.C. 1078-3(b)(4)(C)(ii)) 
     is amended--
       (1) in subclause (II), by striking ``or'' after the 
     semicolon;
       (2) in subclause (III), by striking ``or (II)'' and 
     inserting ``, (II) or (III)'';
       (3) by redesignating subclause (III) (as so amended) as 
     subclause (IV); and
       (4) by inserting after subclause (II) the following:
       ``(III) by the Secretary, in the case of a consolidation 
     loan of a student who is on an active duty deferment under 
     section 428(b)(1)(M)(iv); or''.
       (c) FFEL and Direct Unsubsidized Loans.--Section 428H(e)(2) 
     of the Higher Education Act of 1965 (20 U.S.C. 1078-8(e)(2)) 
     is amended by adding at the end the following:
       ``(C) Notwithstanding subparagraph (A), interest on loans 
     made under this section for which payments of principal are 
     deferred because the student is on an active duty deferment 
     under section 428(b)(1)(M)(iv) shall be paid by the 
     Secretary.''.
       (d) Perkins Loans.--Section 464(c)(2)(A) of the Higher 
     Education Act of 1965 (20 U.S.C. 1087dd(c)(2)(A)) is 
     amended--
       (1) in clause (iii), by striking ``or'' after the 
     semicolon;
       (2) in clause (iv), by inserting ``or'' after the 
     semicolon; and
       (3) by inserting after clause (iv) the following:
       ``(v) during which the borrower is a member of the reserve 
     components of the Armed Forces on active duty for a period of 
     more than 30 days under a call or order to active duty under 
     a provision of law referred to in section 101(a)(13)(B) of 
     title 10, United States Code, and for 3 months following 
     discharge or release from such active duty.''.

     SEC. 1327. PRESERVATION OF EDUCATIONAL STATUS AND TUITION.

       (a) In General.--Title VII of the Servicemembers Civil 
     Relief Act (50 U.S.C. App. 501 et seq.), as amended by 
     section 1 of Public Law 108-189 (117 Stat. 2835), is further 
     amended by adding at the end the following new section:

     ``SEC. 707. PRESERVATION OF EDUCATIONAL STATUS AND TUITION.

       ``(a) Leave of Absence.--A servicemember who is a member of 
     the reserve components on active duty for a period of more 
     than 30 days under a call or order to active duty under a 
     provision of law referred to in section 101(a)(13)(B) of 
     title 10, United States Code, and who is enrolled as a 
     student at an institution of higher education at the time of 
     entry into the service on active duty, shall be granted a 
     leave of absence from the institution during the period of 
     the service on active duty and for one year after the 
     conclusion of the service on active duty.
       ``(b) Educational Status.--
       ``(1) In general.--A servicemember on a leave of absence 
     from an institution of higher education under subsection (a) 
     shall be entitled, upon completion of the leave of absence, 
     to be restored to the educational status the servicemember 
     had attained before entering into the service on active duty 
     as described in that subsection without loss of academic 
     credits earned, scholarships or grants awarded, or, subject 
     to paragraph (2), tuition and other fees paid before the 
     entry of the servicemember into the service on active duty.
       ``(2) Tuition.--
       ``(A) Refund.--An institution of higher education shall 
     refund tuition or fees paid or credit the tuition and fees to 
     the next period of enrollment after a servicemember returns 
     from the leave of absence, at the option of the 
     servicemember. Notwithstanding the 180-day limitation 
     referred to in subsection (a)(2)(B) of section 484B of the 
     Higher Education Act of 1965 (20 U.S.C. 1091b), a 
     servicemember on a leave of absence under this section shall 
     not be treated as having withdrawn for purposes of such 
     section 484B unless the servicemember fails to return upon 
     the completion of the leave of absence.
       ``(B) Amount of refund.--If a servicemember requests a 
     refund for a period of enrollment, the percentage of the 
     tuition and fees that shall be refunded shall be equal to 100 
     percent minus--
       ``(i) the percentage of the period of enrollment (for which 
     the tuition and fees were paid) that was completed (as 
     determined in accordance with subsection (d) of such section 
     484B) as of the day the servicemember withdrew, provided that 
     such date occurs on or before the completion of 60 percent of 
     the period of enrollment; or
       ``(ii) 100 percent, if the day the person withdrew occurs 
     after the servicemember has completed 60 percent of the 
     period of enrollment.''.
       (b) Clerical Amendment.--The table of contents of that Act 
     is amended by adding at the end the following new item:

``Sec. 707. Preservation of educational status and tuition.''.

            Subtitle C--Compensation and Retirement Benefits

     SEC. 1331. NONREDUCTION IN PAY FOR FEDERAL EMPLOYEES WHO ARE 
                   RESERVES SERVING ON ACTIVE DUTY IN THE 
                   UNIFORMED SERVICES FOR EXTENDED PERIODS.

       (a) In General.--Subchapter IV of chapter 55 of title 5, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 5538. Nonreduction in pay of Reserves on active duty 
       in the uniformed services for extended periods

       ``(a) An employee who is absent from a position of 
     employment with the Federal Government in order to perform 
     active duty in the uniformed services for a period of more 
     than 30 days pursuant to a call or order to active duty under 
     a provision of law referred to in section 101(a)(13)(B) of 
     title 10 shall be entitled, while serving on active duty, to 
     receive, for each pay period described in subsection (b), an 
     amount equal to the amount by which--
       ``(1) the amount of basic pay which would otherwise have 
     been payable to such employee for such pay period if such 
     employee's civilian employment with the Government had not 
     been interrupted by that service, exceeds (if at all)
       ``(2) the amount of pay and allowances which (as determined 
     under subsection (d))--
       ``(A) is payable to such employee for that service; and
       ``(B) is allocable to such pay period.
       ``(b)(1) Amounts under this section shall be payable with 
     respect to each pay period (which would otherwise apply if 
     the employee's civilian employment had not been 
     interrupted)--
       ``(A) during which such employee is entitled to 
     reemployment rights under chapter 43 of title 38 with respect 
     to the position from which such employee is absent (as 
     referred to in subsection (a)); and
       ``(B) for which such employee does not otherwise receive 
     basic pay (including by taking any annual, military, or other 
     paid leave) to which such employee is entitled by virtue of 
     such employee's civilian employment with the Government.
       ``(2) For purposes of this section, the period during which 
     an employee is entitled to reemployment rights under chapter 
     43 of title 38--
       ``(A) shall be determined disregarding the provisions of 
     section 4312(d) of title 38; and
       ``(B) shall include any period of time specified in section 
     4312(e) of title 38 within which an employee may report or 
     apply for employment or reemployment following completion of 
     the service on active duty to which called or ordered as 
     described in subsection (a).
       ``(c) Any amount payable under this section to an employee 
     shall be paid--
       ``(1) by such employee's employing agency;
       ``(2) from the appropriation or fund which would be used to 
     pay the employee if such employee were in a pay status; and
       ``(3) to the extent practicable, at the same time and in 
     the same manner as would basic

[[Page 10369]]

     pay if such employee's civilian employment had not been 
     interrupted.
       ``(d) The Office of Personnel Management shall, in 
     consultation with Secretary of Defense, prescribe any 
     regulations necessary to carry out the preceding provisions 
     of this section.
       ``(e)(1) The head of each agency referred to in section 
     2302(a)(2)(C)(ii) shall, in consultation with the Office, 
     prescribe procedures to ensure that the rights under this 
     section apply to the employees of such agency.
       ``(2) The Administrator of the Federal Aviation 
     Administration shall, in consultation with the Office, 
     prescribe procedures to ensure that the rights under this 
     section apply to the employees of that agency.
       ``(f) In this section--
       ``(1) the terms `employee', `Federal Government', and 
     `uniformed services' have the same respective meanings as 
     given them in section 4303 of title 38;
       ``(2) the term `employing agency', as used with respect to 
     an employee entitled to any payments under this section, 
     means the agency or other entity of the Government (including 
     an agency referred to in section 2302(a)(2)(C)(ii)) with 
     respect to which such employee has reemployment rights under 
     chapter 43 of title 38; and
       ``(3) the term `basic pay' includes any amount payable 
     under section 5304.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 55 of title 5, United States Code, is 
     amended by inserting after the item relating to section 5537 
     the following:

``5538. Nonreduction in pay of Reserves on active duty in the uniformed 
              services for extended periods.''

       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to pay periods (as described in 
     section 5538(b) of title 5, United States Code, as added by 
     this section) beginning on or after the date of enactment of 
     this Act.

     SEC. 1332. CREDIT FOR INCOME DIFFERENTIAL FOR EMPLOYMENT OF 
                   ACTIVATED MILITARY RESERVIST AND REPLACEMENT 
                   PERSONNEL.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     foreign tax credit, etc.) is amended by adding at the end the 
     following new section:

     ``SEC. 30B. EMPLOYER WAGE CREDIT FOR ACTIVATED MILITARY 
                   RESERVISTS.

       ``(a) General Rule.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to the sum of--
       ``(1) in the case of a small business employer, the 
     employment credit with respect to all qualified employees and 
     qualified replacement employees of the taxpayer, plus
       ``(2) the self-employment credit of a qualified self-
     employed taxpayer.
       ``(b) Employment Credit.--For purposes of this section--
       ``(1) Qualified employees.--
       ``(A) In general.--The employment credit with respect to a 
     qualified employee of the taxpayer for any taxable year is 
     equal to the lesser of--
       ``(i) the excess, if any, of--

       ``(I) the qualified employee's average daily qualified 
     compensation for the taxable year, over
       ``(II) the average daily military pay and allowances 
     received by the qualified employee during the taxable year,

     while participating in qualified reserve component duty to 
     the exclusion of the qualified employee's normal employment 
     duties for the number of days the qualified employee 
     participates in qualified reserve component duty during the 
     taxable year, including time spent in a travel status, or

       ``(ii) $6,000.

     The employment credit, with respect to all qualified 
     employees, is equal to the sum of the employment credits for 
     each qualified employee under this subsection.
       ``(B) Average daily qualified compensation and average 
     daily military pay and allowances.--As used with respect to a 
     qualified employee--
       ``(i) the term `average daily qualified compensation' means 
     the qualified compensation of the qualified employee for the 
     taxable year divided by the difference between--

       ``(I) 365, and
       ``(II) the number of days the qualified employee 
     participates in qualified reserve component duty during the 
     taxable year, including time spent in a travel status, and

       ``(ii) the term `average daily military pay and allowances' 
     means--

       ``(I) the amount paid to the qualified employee during the 
     taxable year as military pay and allowances on account of the 
     qualified employee's participation in qualified reserve 
     component duty, divided by

       ``(II) the total number of days the qualified employee 
     participates in qualified reserve component duty, including 
     time spent in travel status.

       ``(C) Qualified compensation.--When used with respect to 
     the compensation paid or that would have been paid to a 
     qualified employee for any period during which the qualified 
     employee participates in qualified reserve component duty, 
     the term `qualified compensation' means--
       ``(i) compensation which is normally contingent on the 
     qualified employee's presence for work and which would be 
     deductible from the taxpayer's gross income under section 
     162(a)(1) if the qualified employee were present and 
     receiving such compensation,
       ``(ii) compensation which is not characterized by the 
     taxpayer as vacation or holiday pay, or as sick leave or pay, 
     or as any other form of pay for a nonspecific leave of 
     absence, and with respect to which the number of days the 
     qualified employee participates in qualified reserve 
     component duty does not result in any reduction in the amount 
     of vacation time, sick leave, or other nonspecific leave 
     previously credited to or earned by the qualified employee, 
     and
       ``(iii) group health plan costs (if any) with respect to 
     the qualified employee.
       ``(D) Qualified employee.--The term `qualified employee' 
     means a person who--
       ``(i) has been an employee of the taxpayer for the 91-day 
     period immediately preceding the period during which the 
     employee participates in qualified reserve component duty, 
     and
       ``(ii) is a member of the Ready Reserve of a reserve 
     component of an Armed Force of the United States as defined 
     in sections 10142 and 10101 of title 10, United States Code.
       ``(2) Qualified replacement employees.--
       ``(A) In general.--The employment credit with respect to a 
     qualified replacement employee of the taxpayer for any 
     taxable year is equal to the lesser of--
       ``(i) the individual's qualified compensation attributable 
     to service rendered as a qualified replacement employee, or
       ``(ii) $6,000.
     The employment credit, with respect to all qualified 
     replacement employees, is equal to the sum of the employment 
     credits for each qualified replacement employee under this 
     subsection.
       ``(B) Qualified compensation.--When used with respect to 
     the compensation paid to a qualified replacement employee, 
     the term `qualified compensation' means--
       ``(i) compensation which is normally contingent on the 
     qualified replacement employee's presence for work and which 
     is deductible from the taxpayer's gross income under section 
     162(a)(1),
       ``(ii) compensation which is not characterized by the 
     taxpayer as vacation or holiday pay, or as sick leave or pay, 
     or as any other form of pay for a nonspecific leave of 
     absence, and
       ``(iii) group health plan costs (if any) with respect to 
     the qualified replacement employee.
       ``(C) Qualified replacement employee.--The term `qualified 
     replacement employee' means an individual who is hired to 
     replace a qualified employee or a qualified self-employed 
     taxpayer, but only with respect to the period during which 
     such employee or taxpayer participates in qualified reserve 
     component duty, including time spent in travel status.
       ``(c) Self-Employment Credit.--For purposes of this 
     section--
       ``(1) In general.--The self-employment credit of a 
     qualified self-employed taxpayer for any taxable year is 
     equal to the lesser of--
       ``(A) the excess, if any, of--
       ``(i) the self-employed taxpayer's average daily self-
     employment income for the taxable year over
       ``(ii) the average daily military pay and allowances 
     received by the taxpayer during the taxable year, while 
     participating in qualified reserve component duty to the 
     exclusion of the taxpayer's normal self-employment duties for 
     the number of days the taxpayer participates in qualified 
     reserve component duty during the taxable year, including 
     time spent in a travel status, or
       ``(B) $6,000.
       ``(2) Average daily self-employment income and average 
     daily military pay and allowances.--As used with respect to a 
     self-employed taxpayer--
       ``(A) the term `average daily self-employment income' means 
     the self-employment income (as defined in section 1402(b)) of 
     the taxpayer for the taxable year plus the amount paid for 
     insurance which constitutes medical care for the taxpayer for 
     such year (within the meaning of section 162(l)) divided by 
     the difference between--
       ``(i) 365, and
       ``(ii) the number of days the taxpayer participates in 
     qualified reserve component duty during the taxable year, 
     including time spent in a travel status, and
       ``(B) the term `average daily military pay and allowances' 
     means--
       ``(i) the amount paid to the taxpayer during the taxable 
     year as military pay and allowances on account of the 
     taxpayer's participation in qualified reserve component duty, 
     divided by
       ``(ii) the total number of days the taxpayer participates 
     in qualified reserve component duty, including time spent in 
     travel status.
       ``(3) Qualified self-employed taxpayer.--The term 
     `qualified self-employed taxpayer' means a taxpayer who--
       ``(A) has net earnings from self-employment (as defined in 
     section 1402(a)) for the taxable year, and
       ``(B) is a member of the Ready Reserve of a reserve 
     component of an Armed Force of the United States.
       ``(d) Coordination With Other Credits.--The amount of 
     credit otherwise allowable

[[Page 10370]]

     under sections 51(a) and 1396(a) with respect to any employee 
     shall be reduced by the credit allowed by this section with 
     respect to such employee.
       ``(e) Limitations.--
       ``(1) Application with other credits.--The credit allowed 
     under subsection (a) for any taxable year shall not exceed 
     the excess (if any) of--
       ``(A) the regular tax for the taxable year reduced by the 
     sum of the credits allowable under subpart A and sections 27, 
     29, and 30, over
       ``(B) the tentative minimum tax for the taxable year.
       ``(2) Disallowance for failure to comply with employment or 
     reemployment rights of members of the reserve components of 
     the armed forces of the united states.--No credit shall be 
     allowed under subsection (a) to a taxpayer for--
       ``(A) any taxable year, beginning after the date of the 
     enactment of this section, in which the taxpayer is under a 
     final order, judgment, or other process issued or required by 
     a district court of the United States under section 4323 of 
     title 38 of the United States Code with respect to a 
     violation of chapter 43 of such title, and
       ``(B) the 2 succeeding taxable years.
       ``(3) Disallowance with respect to persons ordered to 
     active duty for training.--No credit shall be allowed under 
     subsection (a) to a taxpayer with respect to any period by 
     taking into account any person who is called or ordered to 
     active duty for any of the following types of duty:
       ``(A) Active duty for training under any provision of title 
     10, United States Code.
       ``(B) Training at encampments, maneuvers, outdoor target 
     practice, or other exercises under chapter 5 of title 32, 
     United States Code.
       ``(C) Full-time National Guard duty, as defined in section 
     101(d)(5) of title 10, United States Code.
       ``(f) General Definitions and Special Rules.--For purposes 
     of this section--
       ``(1) Small business employer.--
       ``(A) In general.--The term `small business employer' 
     means, with respect to any taxable year, any employer who 
     employed an average of 50 or fewer employees on business days 
     during such taxable year.
       ``(B) Controlled groups.--For purposes of subparagraph (A), 
     all persons treated as a single employer under subsection 
     (b), (c), (m), or (o) of section 414 shall be treated as a 
     single employer.
       ``(2) Military pay and allowances.--The term `military pay' 
     means pay as that term is defined in section 101(21) of title 
     37, United States Code, and the term `allowances' means the 
     allowances payable to a member of the Armed Forces of the 
     United States under chapter 7 of that title.
       ``(3) Qualified reserve component duty.--The term 
     `qualified reserve component duty' means active duty 
     performed for a period not less than 180 days under a call or 
     order to active duty under a provision of law referred to in 
     section 101(a)(13)(B) of title 10, United States Code.
       ``(4) Carryback and carryforward allowed.--
       ``(A) In general.--If the credit allowable under subsection 
     (a) for a taxable year exceeds the amount of the limitation 
     under subsection (e)(1) for such taxable year (in this 
     paragraph referred to as the `unused credit year'), such 
     excess shall be a credit carryback to each of the 3 taxable 
     years preceding the unused credit year and a credit 
     carryforward to each of the 20 taxable years following the 
     unused credit year.
       ``(B) Rules.--Rules similar to the rules of section 39 
     shall apply with respect to the credit carryback and credit 
     carryforward under subparagraph (A).
       ``(5) Certain rules to apply.--Rules similar to the rules 
     of subsections (c), (d), and (e) of section 52 shall 
     apply.''.
       (b) No Deduction for Compensation Taken Into Account for 
     Credit.--Section 280C(a) of the Internal Revenue Code of 1986 
     (relating to rule for employment credits) is amended--
       (1) by inserting ``or compensation'' after ``salaries'', 
     and
       (2) by inserting ``30B,'' before ``45A(a)''.
       (c) Conforming Amendment.--Section 55(c)(2) of the Internal 
     Revenue Code of 1986 is amended by inserting ``30B(e)(1),'' 
     after ``30(b)(3),''.
       (d) Clerical Amendment.--The table of sections for subpart 
     B of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end 30A the 
     following new item:

``Sec. 30B. Employer wage credit for activated military reservists.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to amounts paid after the date of the enactment 
     of this Act, in taxable years ending after such date.

     SEC. 1333. REDUCED MINIMUM AGE FOR ELIGIBILITY FOR NON-
                   REGULAR SERVICE RETIRED PAY.

       Section 12731(a)(1) of title 10, United States Code, is 
     amended by striking ``60 years of age'' and inserting ``55 
     years of age''.

                    Subtitle D--Health Care Benefits

     SEC. 1341. EXPANDED ELIGIBILITY OF READY RESERVE MEMBERS 
                   UNDER TRICARE PROGRAM.

       (a) Unconditional Eligibility.--Subsection (a) of section 
     1076b of title 10, United States Code, is amended by striking 
     ``and receive benefits'' and all that follows through ``an 
     employer-sponsored health benefits plan''.
       (b) Permanent Authority.--Subsection (l) of such section is 
     repealed.
       (c) Conforming Amendments.--Such section is further 
     amended--
       (1) by striking subsections (i) and (j); and
       (2) by redesignating subsection (k) as subsection (i).

     SEC. 1342. CONTINUATION OF NON-TRICARE HEALTH BENEFITS PLAN 
                   COVERAGE FOR CERTAIN RESERVES CALLED OR ORDERED 
                   TO ACTIVE DUTY AND THEIR DEPENDENTS.

       (a) Required Continuation.--(1) Chapter 55 of title 10, 
     United States Code, is amended by inserting after section 
     1078a the following new section:

     ``Sec. 1078b. Continuation of non-TRICARE health benefits 
       plan coverage for dependents of certain Reserves called or 
       ordered to active duty

       ``(a) Payment of Premiums.--The Secretary concerned shall 
     pay the applicable premium to continue in force any qualified 
     health benefits plan coverage for the members of the family 
     of an eligible reserve component member for the benefits 
     coverage continuation period if timely elected by the member 
     in accordance with regulations prescribed under subsection 
     (g).
       ``(b) Eligible Member; Family Members.--(1) A member of a 
     reserve component is eligible for payment of the applicable 
     premium for continuation of qualified health benefits plan 
     coverage under subsection (a) while serving on active duty 
     for a period of more than 30 days pursuant to a call or order 
     issued under a provision of law referred to in section 
     101(a)(13)(B) of this title during a war or a national 
     emergency declared by the President or Congress.
       ``(2) For the purposes of this section, the members of the 
     family of an eligible reserve component member include only 
     the member's dependents described in subparagraphs (A), (D), 
     and (I) of section 1072(2) of this title.
       ``(c) Qualified Health Benefits Plan Coverage.--For the 
     purposes of this section, health benefits plan coverage for 
     the members of the family of a reserve component member 
     called or ordered to active duty is qualified health benefits 
     plan coverage if--
       ``(1) the coverage was in force on the date on which the 
     Secretary notified the reserve component member that issuance 
     of the call or order was pending or, if no such notification 
     was provided, the date of the call or order;
       ``(2) on such date, the coverage applied to the reserve 
     component member and members of the family of the reserve 
     component member; and
       ``(3) the coverage has not lapsed.
       ``(d) Applicable Premium.--The applicable premium payable 
     under this section for continuation of health benefits plan 
     coverage for the family members of a reserve component member 
     is the amount of the premium payable by the member for the 
     coverage of the family members.
       ``(e) Benefits Coverage Continuation Period.--The benefits 
     coverage continuation period under this section for qualified 
     health benefits plan coverage for the family members of an 
     eligible reserve component member called or ordered to active 
     duty is the period that--
       ``(1) begins on the date of the call or order; and
       ``(2) ends at the end of the day on which the active duty 
     terminates.
       ``(f) Extension of Period of COBRA Coverage.--
     Notwithstanding any other provision of law--
       ``(1) any period of coverage under a COBRA continuation 
     provision (as defined in section 9832(d)(1) of the Internal 
     Revenue Code of 1986) for an eligible reserve component 
     member under this section shall be deemed to be equal to the 
     benefits coverage continuation period for such member under 
     this section; and
       ``(2) with respect to the election of any period of 
     coverage under a COBRA continuation provision (as so 
     defined), rules similar to the rules under section 
     4980B(f)(5)(C) of such Code shall apply.
       ``(g) Regulations.--The Secretary of Defense shall 
     prescribe regulations for carrying out this section. The 
     regulations shall include such requirements for making an 
     election of payment of applicable premiums as the Secretary 
     considers appropriate.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1078a the following new item:

``1078b. Continuation of non-TRICARE health benefits plan coverage for 
              dependents of certain Reserves called or ordered to 
              active duty.''.

       (b) Applicability.--Section 1078b of title 10, United 
     States Code (as added by subsection (a)), shall apply with 
     respect to calls or orders of members of reserve components 
     of the Armed Forces to active duty as described in subsection 
     (b) of such section, that are issued by the Secretary of a 
     military department before, on, or after the date of the 
     enactment of this Act, but only with respect to qualified 
     health benefits plan coverage (as

[[Page 10371]]

     described in subsection (c) of such section) that is in 
     effect on or after the date of the enactment of this Act.
                                 ______
                                 
  SA 3194. Mrs. MURRAY submitted an amendment intended to be proposed 
by her to the bill S. 2400, to authorize appropriations for fiscal year 
2005 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 247, after line 21, insert the following:

     SEC. 717. RESTORATION OF PREVIOUS POLICY REGARDING 
                   RESTRICTIONS ON USE OF DEPARTMENT OF DEFENSE 
                   MEDICAL FACILITIES OVERSEAS.

       Section 1093(b) of title 10, United States Code, is 
     amended--
       (1) by inserting ``in the United States'' after ``treatment 
     facility''; and
       (2) by inserting ``in the United States'' after 
     ``Department of Defense''.
                                 ______
                                 
  SA 3195. Mrs. MURRAY (for herself and Mr. Edwards) submitted an 
amendment intended to be proposed by her to the bill S. 2400, to 
authorize appropriations for fiscal year 2005 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Services, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of title X, add the following:

     SEC. __. CHILD CARE ASSISTANCE FOR MILITARY DEPENDENTS.

       (a) Authorization of Appropriations.--Section 658B of the 
     Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858) is amended--
       (1) by striking ``There is'' and inserting ``(a) In 
     General.--There is'';
       (2) in subsection (a), as so designated, by inserting 
     ``(except section 658T)'' after ``this subchapter''; and
       (3) by adding at the end the following:
       ``(b) Child Care for Certain Military Dependents.--There is 
     authorized to be appropriated to carry out section 658T 
     $200,000,000 for each of fiscal years 2005 through 2009.''.
       (b) Child Care Assistance.--The Child Care and Development 
     Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended 
     by adding at the end the following:

     ``SEC. 658T. CHILD CARE ASSISTANCE FOR MILITARY DEPENDENTS.

       ``(a) In General.--The Secretary shall make grants to 
     eligible spouses to assist the spouses in paying for the cost 
     of child care services provided to dependents by eligible 
     child care providers. In making the grants, the Secretary 
     shall give priority to eligible spouses of qualified members 
     on active duty for a period of more than 6 months.
       ``(b) Definitions.--In this section:
       ``(1) Active duty.--The term `active duty' means duty under 
     a call or order to active duty under a provision of law 
     referred to in section 101(a)(13)(B) of title 10, United 
     States Code.
       ``(2) Active duty for a period of more than 30 days.--The 
     term `active duty for a period of more than 30 days' has the 
     meaning given the term in section 101(d)(2) of title 10, 
     United States Code.
       ``(3) Dependent.--The term `dependent' means an individual 
     who is--
       ``(A) a dependent, as defined in section 401 of title 37, 
     United States Code, except that such term does not include a 
     person described in paragraph (1) or (3) of subsection (a) of 
     such section; and
       ``(B) an individual described in subparagraphs (A) and (B) 
     of section 658P(4).
       ``(4) Eligible spouse.--The term `eligible spouse' means a 
     person who--
       ``(A) is a parent of one or more dependents of a qualified 
     member; and
       ``(B) has the primary responsibility for the care of one or 
     more such dependents.
       ``(5) Qualified member.--The term `qualified member' means 
     a member of the reserve components of the Armed Forces on 
     active duty for a period of more than 30 days.
       ``(c) Applications.--To be eligible to receive a grant 
     under this section, a spouse shall submit an application to 
     the Secretary, at such time, in such manner, and containing 
     such information as the Secretary may require, including a 
     description of the eligible child care provider who provides 
     the child care services assisted through the grant.
       ``(d) Rule.--The provisions of this subchapter, other than 
     section 658P and provisions referenced in section 658P, that 
     apply to assistance provided under this subchapter shall not 
     apply to assistance provided under this section.''.
       (c) Conforming Amendments.--Section 658O of the Child Care 
     and Development Block Grant Act of 1990 (42 U.S.C. 9858m) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``appropriated under this 
     subchapter'' and inserting ``appropriated under section 
     658B(a)''; and
       (B) in paragraph (2), by striking ``appropriated under 
     section 658B'' and inserting ``appropriated under section 
     658(a)''; and
       (2) in subsection (b)(1), by striking ``appropriated under 
     section 658B'' and inserting ``appropriated under section 
     658(a)''.
                                 ______
                                 
  SA 3196. Mr. DURBIN (for himself, Ms. Mikulski, Ms. Landrieu, Mrs. 
Murray, Mr. Dayton, and Mr. Corzine) submitted an amendment intended to 
be proposed by him to the bill S. 2400, to authorize appropriations for 
fiscal year 2005 for military activities of the Department of Defense, 
for military construction, and for defense activities of the Department 
of Energy, to prescribe personnel strengths for such fiscal year for 
the Armed Services, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. NONREDUCTION IN PAY WHILE FEDERAL EMPLOYEE IS 
                   PERFORMING ACTIVE SERVICE IN THE UNIFORMED 
                   SERVICES OR NATIONAL GUARD.

       (a) Short Title.--This section may be cited as the 
     ``Reservists Pay Security Act of 2004''.
       (b) In General.--Subchapter IV of chapter 55 of title 5, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 5538. Nonreduction in pay while serving in the 
       uniformed services or National Guard

       ``(a) An employee who is absent from a position of 
     employment with the Federal Government in order to perform 
     active duty in the uniformed services pursuant to a call or 
     order to active duty under a provision of law referred to in 
     section 101(a)(13)(B) of title 10 shall be entitled, while 
     serving on active duty, to receive, for each pay period 
     described in subsection (b), an amount equal to the amount by 
     which--
       ``(1) the amount of basic pay which would otherwise have 
     been payable to such employee for such pay period if such 
     employee's civilian employment with the Government had not 
     been interrupted by that service, exceeds (if at all)
       ``(2) the amount of pay and allowances which (as determined 
     under subsection (d))--
       ``(A) is payable to such employee for that service; and
       ``(B) is allocable to such pay period.
       ``(b)(1) Amounts under this section shall be payable with 
     respect to each pay period (which would otherwise apply if 
     the employee's civilian employment had not been 
     interrupted)--
       ``(A) during which such employee is entitled to 
     reemployment rights under chapter 43 of title 38 with respect 
     to the position from which such employee is absent (as 
     referred to in subsection (a)); and
       ``(B) for which such employee does not otherwise receive 
     basic pay (including by taking any annual, military, or other 
     paid leave) to which such employee is entitled by virtue of 
     such employee's civilian employment with the Government.
       ``(2) For purposes of this section, the period during which 
     an employee is entitled to reemployment rights under chapter 
     43 of title 38--
       ``(A) shall be determined disregarding the provisions of 
     section 4312(d) of title 38; and
       ``(B) shall include any period of time specified in section 
     4312(e) of title 38 within which an employee may report or 
     apply for employment or reemployment following completion of 
     service on active duty to which called or ordered as 
     described in subsection (a).
       ``(c) Any amount payable under this section to an employee 
     shall be paid--
       ``(1) by such employee's employing agency;
       ``(2) from the appropriation or fund which would be used to 
     pay the employee if such employee were in a pay status; and
       ``(3) to the extent practicable, at the same time and in 
     the same manner as would basic pay if such employee's 
     civilian employment had not been interrupted.
       ``(d) The Office of Personnel Management shall, in 
     consultation with Secretary of Defense, prescribe any 
     regulations necessary to carry out the preceding provisions 
     of this section.
       ``(e)(1) The head of each agency referred to in section 
     2302(a)(2)(C)(ii) shall, in consultation with the Office, 
     prescribe procedures to ensure that the rights under this 
     section apply to the employees of such agency.
       ``(2) The Administrator of the Federal Aviation 
     Administration shall, in consultation with the Office, 
     prescribe procedures to ensure that the rights under this 
     section apply to the employees of that agency.
       ``(f) For purposes of this section--
       ``(1) the terms `employee', `Federal Government', and 
     `uniformed services' have the same respective meanings as 
     given them in section 4303 of title 38;
       ``(2) the term `employing agency', as used with respect to 
     an employee entitled to any payments under this section, 
     means the agency or other entity of the Government (including 
     an agency referred to in section 2302(a)(2)(C)(ii)) with 
     respect to which such employee has reemployment rights under 
     chapter 43 of title 38; and

[[Page 10372]]

       ``(3) the term `basic pay' includes any amount payable 
     under section 5304.''.
       (c) Clerical Amendment.--The table of sections for chapter 
     55 of title 5, United States Code, is amended by inserting 
     after the item relating to section 5537 the following:

``5538. Nonreduction in pay while serving in the uniformed services or 
              National Guard.''.

       (d) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply with respect to pay periods (as described in section 
     5538(b) of title 5, United States Code, as amended by this 
     section) beginning on or after the date of enactment of this 
     Act.
       (2) Conditional retroactive application.--
       (A) In general.--The amendments made by this section shall 
     apply with respect to pay periods (as described in section 
     5538(b) of title 5, United States Code, as amended by this 
     section) beginning on or after October 11, 2002 through the 
     date of enactment of this Act, subject to the availability of 
     appropriations.
       (B) Authorization of appropriations.--There are authorized 
     to be appropriated $100,000,000 for purposes of subparagraph 
     (A).
                                 ______
                                 
  SA 3197. Mr. DAYTON (for himself and Mr. Feingold) submitted an 
amendment intended to be proposed by him to the bill S. 2400, to 
authorize appropriations for fiscal year 2005 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Services, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 172, strike line 11 and all that follows 
     through page 176, line 21.
                                 ______
                                 
  SA 3198. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 2400, to authorize appropriations for fiscal year 
2005 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 269, line 20, strike ``$150,000,000'' and insert 
     ``$500,000,000''.
                                 ______
                                 
  SA 3199. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 2400, to authorize appropriations for fiscal year 
2005 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 195, between lines 10 and 11, insert the following:

     SEC. 868. AVAILABILITY OF FEDERAL SUPPLY SCHEDULE SUPPLIES 
                   AND SERVICES TO UNITED SERVICE ORGANIZATIONS, 
                   INCORPORATED.

       Section 220105(7) of title 36, United States Code, is 
     amended by inserting before the semicolon at the end the 
     following: ``, including to acquire from the General Services 
     Administration supplies and services on the Federal Supply 
     Schedule of the General Services Administration as if the 
     corporation were an executive agency of the United States''.
                                 ______
                                 
  SA 3200. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 2400, to authorize appropriations for fiscal year 
2005 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of subtitle F of title X, add the following:

     SEC. 1055. ASSISTANCE TO FOREIGN MILITARY AND SECURITY FORCES 
                   FOR PEACEKEEPING AND PEACE ENFORCEMENT 
                   OPERATIONS.

       (a) In General.--Notwithstanding any other provision of 
     law, within the limitation established in subsection (c), the 
     Secretary of Defense may--
       (1) with the concurrence of the Secretary of State, provide 
     assistance in fiscal year 2005 to military or security forces 
     of a country to enhance their capability to participate in an 
     international peacekeeping or peace enforcement operation; or
       (2) transfer funds to the Secretary of State for the 
     purpose of providing such assistance.
       (b) Types of Assistance.--Assistance provided under 
     subsection (a) may include equipment, supplies, services, 
     training, and funding.
       (c) Limitation.--The cost of assistance provided under 
     subsection (a) may not exceed $100,000,000 in fiscal year 
     2005.
       (d) Construction of Authority.--The authority to provide 
     assistance under subsection (a) is in addition to any other 
     authority to provide assistance to foreign nations or forces 
     under any other provision of law.
                                 ______
                                 
  SA 3201. Mr. KENNEDY (for himself, Mrs. Murray, and Ms. Mikulski) 
submitted an amendment intended to be proposed by him to the bill S. 
2400, to authorize appropriations for fiscal year 2005 for military 
activities of the Department of Defense, for military construction, and 
for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Services, and 
for other purposes; which was ordered to lie on the table; as follows:

         At the end of subtitle F of title III, insert the 
     following:

     SEC. 353. EMERGENCY FUNDING FOR LOCAL EDUCATIONAL AGENCIES 
                   ENROLLING MILITARY DEPENDENT CHILDREN.

       (a) Short Title.--This section may be cited as the ``Help 
     for Military Children Affected by War Act of 2004''.
       (b) Grants Authorized.--The Secretary of Defense is 
     authorized to award grants, from distributions under 
     subsection (e), to eligible local educational agencies for 
     the additional education, counseling, and other needs of 
     military dependent children who are affected by war or 
     dramatic military decisions.
       (c) Definitions.--In this section:
       (1) Eligible local educational agency.-- The term 
     ``eligible local educational agency'' means a local 
     educational agency that--
       (A) had a number of military dependent children in average 
     daily attendance in the schools served by the local 
     educational agency during the school year preceding the 
     school year for which the determination is made, that--
       (i) equaled or exceeded 20 percent of the number of all 
     children in average daily attendance in the schools served by 
     such agency during the preceding school year; or
       (ii) was 1,000 or more,
     whichever is less; and
       (B) is designated by the Secretary of Defense as impacted 
     by--
       (i) Operation Iraqi Freedom;
       (ii) Operation Enduring Freedom;
       (iii) high operations tempo;
       (iv) military base realignment or closure; or
       (v) privatization of military housing.
       (2) Local educational agency.--The term ``local educational 
     agency'' has the meaning given the term in section 9101 of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7801).
       (3) Military dependent child.--The term ``military 
     dependent child'' means a child described in subparagraph (B) 
     or (D)(i) of section 8003(a)(1) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703(a)(1)).
       (d) Use of funds.--Grant funds provided under this section 
     shall be used for--
       (1) tutoring, after-school, and dropout prevention 
     activities for military dependent children with a parent who 
     is or has been impacted by war-related action described in 
     clause (i), (ii), or (iii) of subsection (c)(1)(B);
       (2) professional development of teachers, principals, and 
     counselors on the needs of military dependent children with a 
     parent who is or has been impacted by war-related action 
     described in clause (i), (ii), or (iii) of subsection 
     (c)(1)(B);
       (3) counseling and other comprehensive support services for 
     military dependent children with a parent who is or has been 
     impacted by war-related action described in clause (i), (ii), 
     or (iii) of subsection (c)(1)(B), including the hiring of a 
     military-school liaison; and
       (4) other basic educational activities associated with an 
     increase in military dependent children.
       (e) Distributions.--
       (1) Emergency allocation petition.--Notwithstanding any 
     other provision of this subsection and from not more than 10 
     percent of funds appropriated under subsection (f)(1) for a 
     fiscal year, the Secretary of Defense may allocate, on a pro 
     rata basis, such funds to eligible local educational agencies 
     that anticipate a rapid increase in military dependent 
     children and petition the Secretary of Defense for an 
     emergency allocation of such funds.
       (2) Pro rata distribution.--Each eligible local educational 
     agency not receiving funds under paragraph (1) for a fiscal 
     year shall receive a grant under this section for the fiscal 
     year in an amount that bears the same relation to the funds 
     appropriated under subsection (f)(1) and not allocated under 
     paragraph (1) for the fiscal year that do not exceed 
     $20,000,000 as the number of military dependent children who 
     were in average daily

[[Page 10373]]

     attendance in the schools served by such agency (as 
     determined by the Secretary of Education) for the preceding 
     or current school year, whichever is greater, bears to the 
     total number of military dependent children who were in 
     average daily attendance in the schools served by all 
     eligible local educational agencies in the preceding school 
     year (as so determined).
       (3) Hold harmless.--The Secretary of Defense shall 
     distribute funds appropriated under subsection (f)(1) and not 
     allocated under paragraph (1) for a fiscal year that are in 
     excess of $20,000,000 on a pro rata basis to each eligible 
     local educational agency not receiving funds under paragraph 
     (1) for the fiscal year that experiences (A) a decrease of 20 
     percent or more in the number of military dependent children 
     who were in average daily attendance in the schools served by 
     such agency, (B) a decrease of 20 percent or more in the 
     amount of funds received under section 8003(b) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7703(b)), or (C) a decrease of 1,000 or more military 
     dependent children who were in average daily attendance in 
     the schools served by such agency, from the school year 
     preceding the school year for which the determination is made 
     to the school year for which the determination is made.
       (f) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     the Department of Defense such sums as may be necessary to 
     carry out this section for fiscal year 2005 and each of the 2 
     succeeding fiscal years.
       (2) Special rule.--Funds appropriated under paragraph (1) 
     are in addition to any funds made available to local 
     educational agencies under section 351 or 352 of this Act or 
     section 8003 of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7703).
                                 ______
                                 
  SA 3202. Mr. DASCHLE submitted an amendment intended to be proposed 
by him to the bill S. 2400, to authorize appropriations for fiscal year 
2005 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

         On page 131, between lines 17 and 18, insert the 
     following:

     SEC. 653. RELIEF FOR MOBILIZED MILITARY RESERVISTS FROM 
                   CERTAIN FEDERAL AGRICULTURAL LOAN OBLIGATIONS.

       The Consolidated Farm and Rural Development Act is amended 
     by inserting after section 331F (7 U.S.C. 1981f) the 
     following:

     ``SEC. 332. RELIEF FOR MOBILIZED MILITARY RESERVISTS FROM 
                   CERTAIN AGRICULTURAL LOAN OBLIGATIONS.

       ``(a) Definition of Mobilized Military Reservist.--In this 
     section, the term `mobilized military reservist' means an 
     individual who--
       ``(1) is on active duty under section 688, 12301(a), 
     12301(g), 12302, 12304, 12306, or 12406, or chapter 15 of 
     title 10, United States Code, or any other provision of law 
     during a war or during a national emergency declared by the 
     President or Congress, regardless of the location at which 
     the active duty service is performed; or
       ``(2) in the case of a member of the National Guard, is on 
     full-time National Guard duty (as defined in section 
     101(d)(5) of title 10, United States Code) under a call to 
     active service authorized by the President or the Secretary 
     of Defense for a period of more than 30 consecutive days 
     under section 502(f) of title 32, United States Code, for 
     purposes of responding to a national emergency declared by 
     the President and supported by Federal funds.
       ``(b) Forgiveness of Interest Payments Due While Borrower 
     Is a Mobilized Military Reservist.--Any requirement that a 
     borrower of a direct loan made under this title make any 
     interest payment on the loan that would otherwise be required 
     to be made while the borrower is a mobilized military 
     reservist is rescinded.
       ``(c) Deferral of Principal Payments Due While or After 
     Borrower Is a Mobilized Military Reservist.--The due date of 
     any payment of principal on a direct loan made to a borrower 
     under this title that would otherwise be required to be made 
     while or after the borrower is a mobilized military reservist 
     is deferred for a period equal in length to the period for 
     which the borrower is a mobilized military reservist.
       ``(d) Nonaccrual of Interest.--Interest on a direct loan 
     made to a borrower described in this section shall not accrue 
     during the period the borrower is a mobilized military 
     reservist.
       ``(e) Borrower Not Considered To Be Delinquent or Receiving 
     Debt Forgiveness.--Notwithstanding section 373 or any other 
     provision of this title, a borrower who receives assistance 
     under this section shall not, as a result of the assistance, 
     be considered to be delinquent or receiving debt forgiveness 
     for purposes of receiving a direct or guaranteed loan under 
     this title.''.
                                 ______
                                 
  SA 3203. Mr. DAYTON submitted an amendment intended to be proposed by 
him to the bill S. 2400, to authorize appropriations for fiscal year 
2005 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

         On page 247, between lines 13 and 14, insert the 
     following:

     SEC. 1022. PERIODIC DETAILED ACCOUNTING FOR OPERATIONS OF THE 
                   GLOBAL WAR ON TERRORISM.

       (a) Monthly Accounting.--Not later than 30 days after the 
     end of each month, the Secretary of Defense shall submit to 
     the chairmen and ranking members of the Committees on Armed 
     Services of the Senate and the House of Representatives and 
     to all the members of the Committees on Appropriations of the 
     Senate and the House of Representatives, for such month for 
     each operation described in subsection (b), a full accounting 
     of all costs incurred for such operation during such month 
     and all amounts expended during such month for such 
     operation, and the purposes for which such costs were 
     incurred and such amounts were expended.
       (b) Operations Covered.--The operations referred to in 
     subsection (a) are as follows:
       (1) Operation Iraqi Freedom.
       (2) Operation Enduring Freedom.
       (3) All other operations relating to the Global War on 
     Terrorism.
       (c) Requirement for Comprehensiveness.--For the purpose of 
     providing a full and complete accounting of the costs and 
     expenditures under subsection (a) for operations described in 
     subsection (b), the Secretary shall account in the monthly 
     submission under subsection (a) for all costs and 
     expenditures that are reasonably attributable to such 
     operations, including personnel costs.
                                 ______
                                 
  SA 3204. Mrs. CLINTON (for herself, Mr. Leahy, and Mr. Kennedy) 
submitted an amendment intended to be proposed by her to the bill S. 
2400, to authorize appropriations for fiscal year 2005 for military 
activities of the Department of Defense, for military construction, and 
for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Services, and 
for other purposes; which was ordered to lie on the table; as follows:

         On page 372, after line 17, insert the following:

     SEC. 2844. PROHIBITION ON CLOSURE OF COMMISSARY STORES, MWR 
                   RETAIL FACILITIES, AND DEPENDENT ELEMENTARY AND 
                   SECONDARY SCHOOLS WITHOUT AUTHORIZATION OF 
                   CONGRESS.

       (a) Prohibition.--Notwithstanding any other provision of 
     law, the Secretary of Defense may not close any commissary 
     store, MWR retail facility, or Department of Defense 
     dependent elementary or secondary school without the specific 
     authorization of Congress for such action by law.
       (b) Comptroller General Report.--Not later than 90 days 
     after the date of the enactment of this Act, the Comptroller 
     General of the United States shall submit to the appropriate 
     committees of Congress a report on the policy of the 
     Department of Defense, and the criteria utilized by the 
     Department, with respect to the closure of commissary stores, 
     MWR retail facilities, and Department of Defense dependent 
     elementary and secondary schools, including an assessment 
     whether or not such policy and criteria are consistent with 
     Department policies and procedures on the preservation of the 
     quality of life of members of the Armed Forces.
       (c) Definitions.--In this section:
       (1) The term ``appropriate committees of Congress'' means--
       (A) the Committee on Armed Services of the Senate; and
       (B) the Committee on Armed Services of the House of 
     Representatives.
       (2) The term ``MWR retail facility'' means an exchange 
     store or other revenue-generating facility operated by 
     nonappropriated fund activities of the Department of Defense 
     for the morale, welfare, and recreation of members of the 
     Armed Forces.
                                 ______
                                 
  SA 3205. Mr. WARNER (for himself and Mr. Levin) proposed an amendment 
to the bill S. 2400, to authorize appropriations for fiscal year 2005 
for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; as follows:

       On page 18, strike line 11, strike ``AUTHORIZATION OF 
     APPROPRIATIONS FOR''.
       On page 18, strike lines 15 through 24, and insert the 
     following:
       (a) Amount.--Of the amount authorized to be appropriated 
     for the Army for fiscal year

[[Page 10374]]

     2005 for other procurement under section 101(5), $610,000,000 
     shall be available for both of the purposes described in 
     subsection (b) and may be used for either or both of such 
     purposes.
       (b) Purposes.--The purposes referred to in subsection (a) 
     are as follows:
       On page 19, beginning on line 7, strike ``authorized to be 
     appropriated in'' and insert ``available under''.
       On page 19, line 17, strike ``authorized to be 
     appropriated'' and insert ``available under''.
                                 ______
                                 
  SA 3206. Mr. WARNER proposed an amendment to the bill S. 2400, to 
authorize appropriations for fiscal year 2005 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Services, and for other 
purposes; as follows:

       On page 25, line 25, strike ``$9,698,958,000'' and insert 
     ``$9,686,958,000''.
                                 ______
                                 
  SA 3207. Mr. WARNER proposed an amendment to the bill S. 2400, to 
authorize appropriations for fiscal year 2005 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Services, and for other 
purposes; as follows:

         On page 318, line 2, strike ``$980,557,000'' and insert 
     ``$1,062,463,000''.
                                 ______
                                 
  SA 3208. Mr. WARNER proposed an amendment to the bill S. 2400, to 
authorize appropriations for fiscal year 2005 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Services, and for other 
purposes; as follows:

       On page 247, between lines 13 and 14, insert the following:

     SEC. 1022. TECHNICAL CORRECTION TO REFERENCE TO CERTAIN 
                   ANNUAL REPORTS.

       Section 2474(f)(2) of title 10, United States Code, is 
     amended by striking ``section 2466(e)'' and inserting 
     ``section 2466(d)''.
                                 ______
                                 
  SA 3209. Mr. WARNER (for himself and Mr. Levin) proposed an amendment 
to the bill S. 2400, to authorize appropriations for fiscal year 2005 
for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; as follows:

       At the end of title VII, add the following:

     SEC.  . CONTINUATION OF SUB-ACUTE CARE FOR TRANSITION PERIOD.

       Section 1074j(b) of title 10, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(4) The Secretary of Defense may take such actions as are 
     necessary to ensure that there is an effective transition in 
     the furnishing of part-time or intermittent home health care 
     benefits for covered beneficiaries who were receiving such 
     benefits before the establishment of the program under this 
     section. The actions taken under this paragraph may include 
     the continuation of such benefits on an extended basis for 
     such time as the Secretary determines appropriate.''.
                                 ______
                                 
  SA 3210. Mr. WARNER (for himself and Mr. Levin) proposed an amendment 
to the bill S. 2400, to authorize appropriations for fiscal year 2005 
for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; as follows:

       At the end of subtitle B of title VII, insert the 
     following:

     SEC. 717. TEMPORARY AUTHORITY FOR WAIVER OF COLLECTION OF 
                   PAYMENTS DUE FOR CHAMPUS BENEFITS RECEIVED BY 
                   DISABLED PERSONS UNAWARE OF LOSS OF CHAMPUS 
                   ELIGIBILITY.

       (a) Authority To Waive Debt.--(1) The Secretary of Defense, 
     in consultation with the other administering Secretaries, may 
     waive (in whole or in part) the collection of payments 
     otherwise due from a person described in subsection (b) for 
     health benefits received by such person under section 1086 of 
     title 10, United States Code, after the termination of that 
     person's eligibility for such benefits.
       (2) If the Secretary of Defense waives collection of 
     payments from a person under paragraph (1), the Secretary may 
     also authorize a continuation of benefits for such person 
     under such section 1086 for a period ending not later than 
     the end of the period specified in subsection (c) of this 
     section.
       (b) Eligible Persons.--A person is eligible for relief 
     under subsection (a)(1) if--
       (1) the person is described in paragraph (1) of subsection 
     (d) of section 1086 of title 10, United States Code;
       (2) except for such paragraph, the person would have been 
     eligible for the health benefits under such section; and
       (3) at the time of the receipt of such benefits--
       (A) the person satisfied the criteria specified in 
     paragraph (2)(B) of such subsection (d); and
       (B) the person was unaware of the loss of eligibility to 
     receive the health benefits.
       (c) Period of Applicability.--The authority provided under 
     this section to waive collection of payments and to continue 
     benefits shall apply, under terms and conditions prescribed 
     by the Secretary of Defense, to health benefits provided 
     under section 1086 of title 10, United States Code, during 
     the period beginning on July 1, 1999, and ending at the end 
     of December 31, 2004.
       (d) Consultation With Other Administering Secretaries.--(1) 
     The Secretary of Defense shall consult with the other 
     administering Secretaries in exercising the authority 
     provided in this section.
       (2) In this subsection, the term ``administering 
     Secretaries'' has the meaning given such term in section 
     1072(3) of title 10, United States Code.
                                 ______
                                 
  SA 3211. Mr. WARNER (for himself and Mr. Allard) proposed an 
amendment to the bill S. 2400, to authorize appropriations for fiscal 
year 2005 for military activities of the Department of Defense, for 
military construction, and for defense activities of the Department of 
Energy, to prescribe personnel strengths for such fiscal year for the 
Armed Services, and for other purposes; as follows:

       Strike section 3120 and insert the following:

     SEC. 3120. LOCAL STAKEHOLDER ORGANIZATIONS FOR DEPARTMENT OF 
                   ENERGY ENVIRONMENTAL MANAGEMENT 2006 CLOSURE 
                   SITES.

       (a) Establishment.--(1) The Secretary of Energy shall 
     establish for each Department of Energy Environmental 
     Management 2006 closure site a local stakeholder organization 
     having the responsibilities set forth in subsection (c).
       (2) The local stakeholder organization shall be established 
     in consultation with interested elected officials of local 
     governments in the vicinity of the closure site concerned.
       (b) Composition.--A local stakeholder organization for a 
     Department of Energy Environmental Management 2006 closure 
     site under subsection (a) shall be composed of such elected 
     officials of local governments in the vicinity of the closure 
     site concerned as the Secretary considers appropriate to 
     carry out the responsibilities set forth in subsection (c) 
     who agree to serve on the organization, or the designees of 
     such officials.
       (c) Responsibilities.--A local stakeholder organization for 
     a Department of Energy Environmental Management 2006 closure 
     site under subsection (a) shall--
       (1) solicit and encourage public participation in 
     appropriate activities relating to the closure and post-
     closure operations of the site;
       (2) disseminate information on the closure and post-closure 
     operations of the site to the State government of the State 
     in which the site is located, local and Tribal governments in 
     the vicinity of the site, and persons and entities having a 
     stake in the closure or post-closure operations of the site;
       (3) transmit to appropriate officers and employees of the 
     Department of Energy questions and concerns of governments, 
     persons, and entities referred to paragraph (2) on the 
     closure and post-closure operations of the site; and
       (4) perform such other duties as the Secretary and the 
     local stakeholder organization jointly determine appropriate 
     to assist the Secretary in meeting post-closure obligations 
     of the Department at the site.
       (d) Deadline for Establishment.--The local stakeholder 
     organization for a Department of Energy Environmental 
     Management 2006 closure site shall be established not later 
     than six months before the closure of the site.
       (e) Inapplicability of Federal Advisory Committee Act.--The 
     Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to local stakeholder organizations under this section.
       (f) Department of Energy Environmental Management 2006 
     Closure Site Defined.--In this section, the term ``Department 
     of Energy Environmental Management 2006 closure site'' means 
     each clean up site of the Department of Energy scheduled by 
     the Department as of January 1, 2004, for closure in 2006.
                                 ______
                                 
  SA 3212. Mr. LEVIN (for Mr. Byrd) proposed an amendment to the bill 
S. 2400, to authorize appropriations for fiscal year 2005 for military 
activities of the Department of Defense, for military construction, and 
for defense activities of the Department of Energy,

[[Page 10375]]

 to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; as follows:

       On page 177, strike lines 14 through 24, and insert the 
     following:
       (b) Increase and Realignment of Workforce.--(1)(A) During 
     fiscal years 2005, 2006, and 2007, the Secretary of Defense 
     shall increase the number of persons employed in the defense 
     acquisition and support workforce as follows:
       (i) During fiscal year 2005, to 105 percent of the baseline 
     number (as defined in subparagraph (B)).
       (ii) During fiscal year 2006, to 110 percent of the 
     baseline number.
       (iii) During fiscal year 2007, to 115 percent of the 
     baseline number.
       (B) In this paragraph, the term ``baseline number'', with 
     respect to persons employed in the defense acquisition and 
     support workforce, means the number of persons employed in 
     such workforce as of September 30, 2003 (determined on the 
     basis of full-time employee equivalence).
       (C) The Secretary of Defense may waive a requirement in 
     subparagraph (A) and, subject to subsection (a), employ in 
     the defense acquisition and support workforce a lesser number 
     of employees if the Secretary determines and certifies to the 
     congressional defense committees that the cost of increasing 
     such workforce to the larger size as required under that 
     subparagraph would exceed the savings to be derived from the 
     additional oversight that would be achieved by having a 
     defense acquisition and support workforce of such larger 
     size.
       (2) During fiscal years 2005, 2006, and 2007, the Secretary 
     of Defense may realign any part of the defense acquisition 
     and support workforce to support reinvestment in other, 
     higher priority positions in such workforce.
                                 ______
                                 
  SA 3213. Mr. LEVIN (for Mr. Reed) proposed an amendment to the bill 
S. 2400, to authorize appropriations for fiscal year 2005 for military 
activities of the Department of Defense, for military construction, and 
for defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Services, and 
for other purposes; as follows:

       Strike section 1005, and insert the following:

     SEC. 1005. UNIFORM FUNDING AND MANAGEMENT OF SERVICE ACADEMY 
                   ATHLETIC AND RECREATIONAL EXTRACURRICULAR 
                   PROGRAMS.

       (a) United States Military Academy.--(1) Chapter 403 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 4359. Athletic and recreational extracurricular 
       programs: uniform funding

       ``The authority and conditions provided in section 2494 of 
     this title shall also apply to any athletic or recreational 
     extracurricular program of the Academy that--
       ``(1) is not considered a morale, welfare, or recreation 
     program referred to in such section;
       ``(2) is funded out of appropriated funds;
       ``(3) is supported by a supplemental mission 
     nonappropriated fund instrumentality; and
       ``(4) is not operated as a private organization.''.
       (2) The table of sections at the beginning of such title is 
     amended by adding at the end the following new item:

``4359. Athletic and recreational extracurricular programs: uniform 
              funding.''.

       (b) United States Naval Academy.--(1) Chapter 603 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 6978. Athletic and recreational extracurricular 
       programs: uniform funding

       ``The authority and conditions provided in section 2494 of 
     this title shall also apply to any athletic or recreational 
     extracurricular program of the Naval Academy that--
       ``(1) is not considered a morale, welfare, or recreation 
     program referred to in such section;
       ``(2) is funded out of appropriated funds;
       ``(3) is supported by a supplemental mission 
     nonappropriated fund instrumentality; and
       ``(4) is not operated as a private organization.''.
       (2) The table of sections at the beginning of such title is 
     amended by adding at the end the following new item:

``6978. Athletic and recreational extracurricular programs: uniform 
              funding.''.

       (c) United States Air Force Academy.--(1) Chapter 903 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 9358. Athletic and recreational extracurricular 
       programs: uniform funding

       ``The authority and conditions provided in section 2494 of 
     this title shall also apply to any athletic or recreational 
     extracurricular program of the Academy that--
       ``(1) is not considered a morale, welfare, or recreation 
     program referred to in such section;
       ``(2) is funded out of appropriated funds;
       ``(3) is supported by a supplemental mission 
     nonappropriated fund instrumentality; and
       ``(4) is not operated as a private organization.''.
       (2) The table of sections at the beginning of such title is 
     amended by adding at the end the following new item:

``9358. Athletic and recreational extracurricular programs: uniform 
              funding.''.

       (d) Effective Date and Applicability.--This section and the 
     amendments made by this section shall take effect on October 
     1, 2004, and shall apply with respect to funds appropriated 
     for fiscal years beginning on or after such date.
                                 ______
                                 
  SA 3214. Mr. WARNER (for Mr. Sessions) proposed an amendment to the 
bill S. 2400, to authorize appropriations for fiscal year 2005 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; as follows:

       On page 365, between lines 18 and 19, insert the following:

     SEC. 2830. LAND EXCHANGE, MAXWELL AIR FORCE BASE, ALABAMA.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey to the City of Montgomery, Alabama (in this 
     section referred to as the ``City''), all right, title, and 
     interest of the United States in and to a parcel of real 
     property, including any improvements thereon, consisting of 
     approximately 28 acres and including all of the Maxwell 
     Heights Housing site and located at Maxwell Air Force Base, 
     Alabama.
       (b) Consideration.--(1) As consideration for the conveyance 
     of property under subsection (a), the City shall convey to 
     the United States all right, title, and interest of the City 
     to a parcel of real property, including any improvements 
     thereon, consisting of approximately 35 acres and designated 
     as project AL 6-4, that is owned by the City and is 
     contiguous to Maxwell Air Force Base, for the purpose of 
     allowing the Secretary to incorporate such property into a 
     project for the acquisition or improvement of military 
     housing under subchapter IV of chapter 169 of title 10, 
     United States Code. The Secretary shall have administrative 
     jurisdiction over the real property received under this 
     subsection.
       (2) If the fair market value of the real property received 
     under paragraph (1) is less than the fair market value of the 
     real property conveyed under subsection (a) (as determined 
     pursuant to an appraisal acceptable to the Secretary), the 
     Secretary may require the City to provide, pursuant to 
     negotiations between the Secretary and the City, in-kind 
     consideration the value of which when added to the fair 
     market value of the property conveyed under subsection (b) 
     equals the fair market value of the property conveyed under 
     subsection (a).
       (c) Payment of Costs of Conveyance.--(1) The Secretary may 
     require the City to cover costs to be incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the Secretary, to carry out the conveyances under 
     subsections (a) and (b), including survey costs, costs 
     related to environmental documentation, and other 
     administrative costs related to the conveyances. If amounts 
     are collected from the City in advance of the Secretary 
     incurring the actual costs, and the amount collected exceeds 
     the costs actually incurred by the Secretary to carry out the 
     conveyance, the Secretary shall refund the excess amount to 
     the City.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyances. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (d) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsections 
     (a) and (b) shall be determined by surveys satisfactory to 
     the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under subsections (a) and (b) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.
                                 ______
                                 
  SA 3215. Mr. LEVIN (for Mr. Sarbanes (for himself and Ms. Mikulski)) 
proposed an amendment to the bill S. 2400, to authorize appropriations 
for fiscal year 2005 for military activities of the Department of 
Defense, for military construction, and for defense activities of the 
Department of Energy, to prescribe personnel strengths for such fiscal 
year for the Armed Services, and for other purposes; as follows:

       At the end of subtitle C of title XXVIII, add the 
     following:

[[Page 10376]]



     SEC. 2830. LAND EXCHANGE, NAVAL AIR STATION, PATUXENT RIVER, 
                   MARYLAND.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the State of Maryland (in this section referred to 
     as ``State''), all right, title, and interest of the United 
     States in and to a parcel of real property, including 
     improvements thereon, consisting of approximately five acres 
     at Naval Air Station, Patuxent River, Maryland, and 
     containing the Point Lookout Lighthouse, other structures 
     related to the lighthouse, and an archaeological site 
     pertaining to the military hospital that was located on the 
     property during the Civil War. The conveyance shall include 
     artifacts pertaining to the military hospital recovered by 
     the Navy and held at the installation.
       (b) Property Received in Exchange.--As consideration for 
     the conveyance of the real property under subsection (a), the 
     State shall convey to the United States a parcel of real 
     property consisting of approximately five acres located in 
     Point Lookout State Park, St. Mary's County, Maryland.
       (c) Payment of Costs of Conveyance.--(1) The Secretary may 
     require the State to cover costs to be incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the Secretary, to carry out the conveyance under 
     subsection (a), including survey costs, costs related to 
     environmental documentation, relocation expenses incurred 
     under subsection (b), and other administrative costs related 
     to the conveyance. If amounts are collected from the State in 
     advance of the Secretary incurring the actual costs, and the 
     amount collected exceeds the costs actually incurred by the 
     Secretary to carry out the conveyance, the Secretary shall 
     refund the excess amount to State.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyance. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (d) Description of Property.--The exact acreage and legal 
     description of the properties to be conveyed under this 
     section shall be determined by surveys satisfactory to the 
     Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
                                 ______
                                 
  SA 3216. Mr. FRIST (for Mr. Domenici) proposed an amendment to the 
bill S. 1848, to amend the Bend Pine Nursery Land Conveyance Act to 
direct the Secretary of Agriculture to sell the Bend Pine Nursery 
Administration Site in the State of Oregon; as follows:

       On page 4, line 22, strike ``1999'' and insert ``2004''.
                                 ______
                                 
  SA 3217. Mr. FRIST (for Mr. Leahy) proposed an amendment to the bill 
H.R. 417, to revoke a Public Land Order with respect to certain lands 
erroneously included in the Cibola National Wildlife Refuge, 
California; as follows:

       At the end, add the following:

     SEC. __. GREEN MOUNTAIN NATIONAL FOREST EXPANSION.

       (a) In General.--The boundaries of the Green Mountain 
     National Forest are modified to include all parcels of land 
     depicted on the forest maps entitled ``Green Mountain 
     Expansion Area Map I'' and ``Green Mountain Expansion Area 
     Map II'', each dated February 20, 2002, which shall be on 
     file and available for public inspection in the Office of the 
     Chief of the Forest Service, Washington, District of 
     Columbia.
       (b) Management.--Federally owned land delineated on the 
     maps acquired for National Forest purposes shall continue to 
     be managed in accordance with the laws (including 
     regulations) applicable to the National Forest System.
       (c) Land and Water Conservation Fund.--For the purposes of 
     section 7 of the Land and Water Conservation Fund Act of 1965 
     (16 U.S.C. 460l-9), the boundaries of the Green Mountain 
     National Forest, as adjusted by this Act, shall be considered 
     to be the boundaries of the national forest as of January 1, 
     1965.
                                 ______
                                 
  SA 3218. Mr. FRIST (for Mr. Grassley (for himself and Mr. Baucus)) 
proposed an amendment to the bill S. 882, to amend the Internal Revenue 
Code of 1986 to provide improvements in tax administration and taxpayer 
safe-guards, and for other purposes; as follows:

       On page 186, between lines 6 and 7, insert the following:
       (e) Director of Internal Revenue Service Oversight Board.--
     Subsection (e) of section 7802, as amended by subsection (d), 
     is amended by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (4), (5), and (6), respectively, and by inserting 
     after paragraph (2) the following new paragraph:
       ``(3) Director.--The Chairperson of the Oversight Board 
     shall, without regard to the provisions of title 5, United 
     Stated Code, governing appointments in the competitive 
     service, appoint a Director for the Oversight Board. The 
     Director shall be paid at the same rate as the highest-rate 
     of basic pay established for the Senior Executive Service 
     under section 5382 of title 5, United States Code.''.
       On page 186, line 7, strike ``(e)'' and insert ``(f)''.
       On page 201, strike lines 17 through 21, and insert the 
     following:
       (1) by striking ``Annual'' in the heading and inserting 
     ``Biennial'',
       (2) by inserting ``every 2 years (beginning in 2004)'' 
     after ``one of the semiannual reports'' in the matter 
     preceding subparagraph (A),
       On page 206, lines 6 and 7, strike ``AND REFUND 
     ANTICIPATION LOAN PROVIDERS'' and insert ``, REFUND 
     ANTICIPATION LOAN PROVIDERS, AND PAYROLL AGENTS''.
       On page 206, lines 12 and 13, strike ``AND REFUND 
     ANTICIPATION LOAN PROVIDERS'' and insert ``, REFUND 
     ANTICIPATION LOAN PROVIDERS, AND PAYROLL AGENTS''.
       On page 206, lines 18 and 19, strike ``and refund 
     anticipation loan providers'' and insert ``, refund 
     anticipation loan providers, and payroll agents''.
       On page 206, line 20, strike ``and''.
       On page 207, line 2, strike the period and insert ``, 
     and''.
       On page 207, between lines 2 and 3, insert the following:
       ``(C) to require the posting of a reasonable bond by each 
     registered payroll agent.
       On page 208, lines 14 and 15, strike ``or refund 
     anticipation loan provider'' and insert ``, refund 
     anticipation loan provider, or payroll agent''.
       On page 212, between lines 8 and 9, insert the following:

     SEC. 142. JOINT TASK FORCE ON OFFERS-IN-COMPROMISE.

       (a) In General.--The Secretary of the Treasury shall 
     establish a joint task force--
       (1) to review the Internal Revenue Service's determinations 
     with respect to offers which raise equitable, public policy, 
     or economic hardship grounds for compromise of a tax 
     liability under section 7122 of the Internal Revenue Code of 
     1986,
       (2) to review the extent to which the Internal Revenue 
     Service has used its authority to resolve longstanding cases 
     by forgoing penalties and interest which have accumulated as 
     a result of delay in determining the taxpayer's liability,
       (3) to provide recommendations as to whether the Internal 
     Revenue Service's evaluation of offers-in-compromise should 
     include--
       (A) the taxpayer's compliance history,
       (B) errors by the Internal Revenue Service with respect to 
     the underlying tax,
       (C) wrongful acts by a third party which gave rise to the 
     liability, and
       (D) whether the taxpayer has made payments on the 
     liability, and
       (4) to annually report to the Committee on Finance of the 
     Senate and the Committee on Ways and Means of the House of 
     Representatives (beginning in 2005) regarding such review and 
     recommendations.
       (b) Members of Joint Task Force.--The membership of the 
     joint task force under subsection (a) shall consist of 1 
     representative each from the Department of the Treasury, the 
     Internal Revenue Service Oversight Board, the Office of the 
     Chief Counsel for the Internal Revenue Service, the Office of 
     the Taxpayer Advocate, the Office of Appeals, and the 
     division of the Internal Revenue Service charged with 
     operating the offer-in-compromise program.
       (c) Report of National Taxpayer Advocate.--
       (1) In general.--Clause (i) of section 7803(c)(2)(B) 
     (relating to annual reports), as amended by this Act, is 
     amended by striking ``and'' at the end of subclause (X), by 
     redesignating subclause (XI) as subclause (XII), and by 
     inserting after subclause (X) the following new subclause:

       ``(XI) include a list of the factors taxpayers have raised 
     to support their claims for offers-in compromise relief, the 
     number of such offers submitted, accepted, and rejected, the 
     number of such offers appealed, the period during which 
     review of such offers have remained pending, and the efforts 
     the Internal Revenue Service has made to correctly identify 
     such offers, including the training of employees in 
     identifying and evaluating such offers.''.

       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to reports in calendar year 2005 and thereafter.
       On page 215, after line 22, add the following:

     SEC. 153. PUBLIC SUPPORT BY INDIAN TRIBAL GOVERNMENTS.

       (a) In General.--Section 7871(a) (relating to Indian tribal 
     governments treated as States for certain purposes) is 
     amended by striking ``and'' at the end of subparagraph (C) of 
     paragraph (6), by striking the period at the end of 
     subparagraph (B) of paragraph (7) and inserting ``; and'', 
     and by adding at the end the following new paragraph:
       ``(8) for purposes of--
       ``(A) determining support of an organization described in 
     section 170(b)(1)(A)(vi), and

[[Page 10377]]

       ``(B) determining whether an organization is described in 
     paragraph (1) or (2) of section 509(a) for purposes of 
     section 509(a)(3).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to--
       (1) support received before, on, or after the date of the 
     enactment of this Act, and
       (2) the determination of the status of any organization 
     with respect to any taxable year beginning after such date of 
     enactment.

     SEC. 154. PAYROLL AGENTS SUBJECT TO PENALTY FOR FAILURE TO 
                   COLLECT AND PAY OVER TAX, OR ATTEMPT TO EVADE 
                   OR DEFEAT TAX.

       (a) In General.--Section 6672(a) is amended by inserting 
     ``, including any payroll agent,'' after ``Any person''.
       (b) Penalty Not Subject To Discharge in Bankruptcy.--
     Section 6672(a) is amended by adding at the end the following 
     new sentence: ``Notwithstanding any other provision of law, 
     no penalty imposed under this section may be discharged in 
     bankruptcy.''.
       (c) Construction.--The amendment made by subsection (a) 
     shall not be construed to create any inference with respect 
     to the interpretation of section 6672 of the Internal Revenue 
     Code of 1986 as such section was in effect on the day before 
     the date of the enactment of this Act.
       (d) Effective Date.--The amendments made by this section 
     shall apply to failures occurring after the date of the 
     enactment of this Act.
       Beginning on page 224, line 14, strike all through page 
     225, line 8, and insert the following:

     SEC. 206. FREEZE OF PROVISIONS REGARDING SUSPENSION OF 
                   INTEREST WHERE SECRETARY FAILS TO CONTACT 
                   TAXPAYER.

       (a) In General.--Section 6404(g) (relating to suspension of 
     interest and certain penalties where Secretary fails to 
     contact taxpayer) is amended by striking ``1-year period (18-
     month period in the case of taxable years beginning before 
     January 1, 2004)'' both places it appears and inserting ``18-
     month period''.
       (b) Exception for Gross Misstatement.--Section 6404(g)(2) 
     (relating to exceptions) is amended by striking ``or'' at the 
     end of subparagraph (C), by redesignating subparagraph (D) as 
     subparagraph (E), and by inserting after subparagraph (C) the 
     following new subparagraph:
       ``(D) any interest, penalty, addition to tax, or additional 
     amount with respect to any gross misstatement; or''.
       (c) Exception for Reportable and Listed Transactions.--
     Section 6404(g)(2) (relating to exceptions), as amended by 
     subsection (b), is amended by striking ``or'' at the end of 
     subparagraph (D), by redesignating subparagraph (E) as 
     subparagraph (F), and by inserting after subparagraph (D) the 
     following new subparagraph:
       ``(E) any interest, penalty, addition to tax, or additional 
     amount with respect to any reportable transaction or listed 
     transaction (as defined in 6707A(c)); or''.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2003.
       (2) Exception for reportable or listed transactions.--The 
     amendments made by subsection (c) shall apply with respect to 
     interest accruing after May 5, 2004.
       On page 232, line 15, insert ``which is 60 days after the 
     date'' after ``date''.
       On page 400, after line 16, add the following:

                   PART IV--OTHER REVENUE PROVISIONS

     SEC. 641. REPORTING OF TAXABLE MERGERS AND ACQUISITIONS.

       (a) In General.--Subpart B of part III of subchapter A of 
     chapter 61 is amended by inserting after section 6043 the 
     following new section:

     ``SEC. 6043A. TAXABLE MERGERS AND ACQUISITIONS.

       ``(a) In General.--The acquiring corporation in any taxable 
     acquisition shall make a return (according to the forms or 
     regulations prescribed by the Secretary) setting forth--
       ``(1) a description of the acquisition,
       ``(2) the name and address of each shareholder of the 
     acquired corporation who is required to recognize gain (if 
     any) as a result of the acquisition,
       ``(3) the amount of money and the fair market value of 
     other property transferred to each such shareholder as part 
     of such acquisition, and
       ``(4) such other information as the Secretary may 
     prescribe.

     To the extent provided by the Secretary, the requirements of 
     this section applicable to the acquiring corporation shall be 
     applicable to the acquired corporation and not to the 
     acquiring corporation.
       ``(b) Nominee Reporting.--Any person who holds stock as a 
     nominee for another person shall furnish in the manner 
     prescribed by the Secretary to such other person the 
     information provided by the corporation under subsection (d).
       ``(c) Taxable Acquisition.--For purposes of this section, 
     the term `taxable acquisition' means any acquisition by a 
     corporation of stock in or property of another corporation if 
     any shareholder of the acquired corporation is required to 
     recognize gain (if any) as a result of such acquisition.
       ``(d) Statements To Be Furnished to Shareholders.--Every 
     person required to make a return under subsection (a) shall 
     furnish to each shareholder whose name is required to be set 
     forth in such return a written statement showing--
       ``(1) the name, address, and phone number of the 
     information contact of the person required to make such 
     return,
       ``(2) the information required to be shown on such return 
     with respect to such shareholder, and
       ``(3) such other information as the Secretary may 
     prescribe.

     The written statement required under the preceding sentence 
     shall be furnished to the shareholder on or before January 31 
     of the year following the calendar year during which the 
     taxable acquisition occurred.''.
       (b) Assessable Penalties.--
       (1) Subparagraph (B) of section 6724(d)(1) (defining 
     information return) is amended by redesignating clauses (ii) 
     through (xviii) as clauses (iii) through (xix), respectively, 
     and by inserting after clause (i) the following new clause:
       ``(ii) section 6043A(a) (relating to returns relating to 
     taxable mergers and acquisitions),''.
       (2) Paragraph (2) of section 6724(d) (relating to 
     definitions) is amended by redesignating subparagraphs (F) 
     through (BB) as subparagraphs (G) through (CC), respectively, 
     and by inserting after subparagraph (E) the following new 
     subparagraph:
       ``(F) subsections (b) and (d) of section 6043A (relating to 
     returns relating to taxable mergers and acquisitions).''.
       (c) Clerical Amendment.--The table of sections for subpart 
     B of part III of subchapter A of chapter 61 is amended by 
     inserting after the item relating to section 6043 the 
     following new item:

``Sec. 6043A. Returns relating to taxable mergers and acquisitions.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to acquisitions after the date of the enactment 
     of this Act.

     SEC. 642. MODIFICATION OF DEFINITION OF CONTROLLED GROUP OF 
                   CORPORATIONS.

       (a) In General.--Section 1563(a)(2) (relating to brother-
     sister controlled group) is amended by striking 
     ``possessing--'' and all that follows through ``(B)'' and 
     inserting ``possessing''.
       (b) Application of Existing Rules to Other Code 
     Provisions.--Section 1563(f) (relating to other definitions 
     and rules) is amended by adding at the end the following new 
     paragraph:
       ``(5) Brother-sister controlled group definition for 
     provisions other than this part.--
       ``(A) In general.--Except as specifically provided in an 
     applicable provision, subsection (a)(2) shall be applied to 
     an applicable provision as if it read as follows:
       ```(2) Brother-sister controlled group.--Two or more 
     corporations if 5 or fewer persons who are individuals, 
     estates, or trusts own (within the meaning of subsection 
     (d)(2) stock possessing--
       ```(A) at least 80 percent of the total combined voting 
     power of all classes of stock entitled to vote, or at least 
     80 percent of the total value of shares of all classes of 
     stock, of each corporation, and
       ```(B) more than 50 percent of the total combined voting 
     power of all classes of stock entitled to vote or more than 
     50 percent of the total value of shares of all classes of 
     stock of each corporation, taking into account the stock 
     ownership of each such person only to the extent such stock 
     ownership is identical with respect to each such 
     corporation.'
       ``(B) Applicable provision.--For purposes of this 
     paragraph, an applicable provision is any provision of law 
     (other than this part) which incorporates the definition of 
     controlled group of corporations under subsection (a).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3219. Mr. FRIST (for Mr. Inhofe) proposed an amendment to the bill 
S. 1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; as follows:

       On page 40, line 9, strike ``$50,000,000'' and insert 
     ``$60,000,000''.
       On page 83, line 10, strike ``$50,000,000'' and insert 
     ``$60,000,000''.
       On page 164, between lines 20 and 21, insert the following:
       ``(3) Mitigation in closed basins.--
       ``(A) In general.--A State may use amounts deposited in the 
     State fund for projects to protect existing roadways from 
     anticipated flooding of a closed basin lake, including--
       ``(i) construction--

       ``(I) necessary for the continuation of roadway services 
     and the impoundment of water, as the State determines to be 
     appropriate; or
       ``(II) for a grade raise to permanently restore a roadway 
     the use of which is lost or reduced, or could be lost or 
     reduced, as a result of an actual or predicted water level 
     that is within 3 feet of causing inundation of the roadway in 
     a closed lake basin;

[[Page 10378]]

       ``(ii) monitoring, studies, evaluations, design, or 
     preliminary engineering relating to construction; and
       ``(iii) monitoring and evaluations relating to proposed 
     construction.
       ``(B) Reimbursement.--The Secretary may permit a State that 
     expends funds under subparagraph (A) to be reimbursed for the 
     expenditures through the use of amounts made available under 
     section 125(c)(1).

       On page 407, strike lines 3 through 8 and insert the 
     following:
       Section 1214(d)(5)(A) of the Transportation Equity Act for 
     the 21st Century (23 U.S.C. 202 note; 112 Stat. 206) is 
     amended by striking
                                 ______
                                 
  SA 3220. Mr. LOTT (for himself, Mr. Cochran, Mr. Chambliss, Ms. 
Snowe, and Mr. Dorgan) submitted an amendment intended to be proposed 
by him to the bill S. 2400, to authorize appropriations for fiscal year 
2005 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of subtitle B of title XXVIII, add the 
     following:

     SEC. 2814. REPEAL OF AUTHORITY OF SECRETARY OF DEFENSE TO 
                   RECOMMEND THAT INSTALLATIONS BE PLACED IN 
                   INACTIVE STATUS DURING 2005 OF DEFENSE BASE 
                   CLOSURE AND REALIGNMENT.

       Section 2914 of the Defense Base Closure and Realignment 
     Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
     U.S.C. 2687 note) is amended by striking subsection (c).
                                 ______
                                 
  SA 3221. Mr. LOTT (for himself, Ms. Snowe, Mr. Cochran, and Ms. 
Collins) submitted an amendment intended to be proposed by him to the 
bill S. 2400, to authorize appropriations for fiscal year 2005 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 280, after line 22, insert the following:

     SEC. 1068. PRESERVATION OF SEARCH AND RESCUE CAPABILITIES OF 
                   THE FEDERAL GOVERNMENT.

       The Secretary of Defense may not reduce or eliminate search 
     and rescue capabilities at any military installation in the 
     United States unless the Secretary first certifies to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives that equivalent search and rescue 
     capabilities will be provided, without interruption and 
     consistent with the policies and objectives set forth in the 
     United States National Search and Rescue Plan entered into 
     force on January 1, 1999, by--
       (1) the Department of Interior, the Department of Commerce, 
     the Department of Homeland Security, the Department of 
     Transportation, the Federal Communications Commission, or the 
     National Aeronautics and Space Administration; or
       (2) the Department of Defense, either directly or through a 
     Department of Defense contract with an emergency medical 
     service provider or other private entity to provide such 
     capabilities.
                                 ______
                                 
  SA 3222. Mr. BROWNBACK submitted an amendment intended to be proposed 
by him to the bill S. 2400, to authorize appropriations for fiscal year 
2005 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of subtitle F of title X, insert the following:

     SEC. 1055. MILITARY EDUCATIONAL EXCHANGES WITH SENIOR 
                   OFFICERS AND OFFICIALS OF TAIWAN.

       (a) Authority for Military Educational Exchanges With 
     Senior Officers and Officials of Taiwan.--Chapter 41 of title 
     10, United States Code, is amended by inserting after section 
     712 the following new section:

     ``Sec. 712a. Military personnel exchanges: Taiwan

       ``(a) Requirement for Program.--The Secretary of Defense 
     shall establish a program for exchange of senior defense 
     personnel between the United States and the Republic of 
     Taiwan.
       ``(b) Purpose.--The purpose of exchanges of personnel under 
     the program is to improve the defenses of Taiwan against 
     attack by the People's Liberation Army of the People's 
     Republic of China.
       ``(c) Senior Defense Personnel.--The Department of Defense 
     personnel authorized to participate in the exchange program 
     under this section are as follows:
       ``(1) A general or flag officer of the armed forces.
       ``(2) A civilian official at the level of Deputy Assistant 
     Secretary of Defense or above.
       ``(d) Activities.--(1) Activities under the exchange 
     program shall include the following:
       ``(A) Threat analysis.
       ``(B) Military doctrine.
       ``(C) Force planning.
       ``(D) Logistical support.
       ``(E) Intelligence collection and analysis.
       ``(F) Operational tactics, techniques, and procedures.
       ``(G) Civil-military relations, including parliamentary 
     relations.
       ``(2) In the planning and conduct of activities under 
     subparagraphs (A) through (F) of paragraph (1), particular 
     emphasis shall be placed on issues relating to the defense of 
     Taiwan against submarine and missile attacks.
       ``(e) Locations.--Activities under the exchange program 
     shall be carried out in the United States and in Taiwan.
       ``(f) Activity Defined.--In this section, the term 
     `activity' includes an exercise, an event, and an opportunity 
     for observation.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting before the 
     item relating to section 713 the following new item:

``712a. Military personnel exchanges: Taiwan.''.
                                 ______
                                 
  SA 3223. Mr. CHAMBLISS submitted an amendment intended to be proposed 
by him to the bill S. 2400, to authorize appropriations for fiscal year 
2005 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Services, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 130, between lines 9 and 10, insert the following:

     SEC. 642. ELIGIBILITY FOR REDUCED NON-REGULAR SERVICE RETIRED 
                   PAY BEFORE AGE 60.

       (a) Eligibility Beginning at Age 55.--Section 12731(a)(1) 
     of title 10, United States Code, is amended by striking ``60 
     years of age'' and inserting ``55 years of age''.
       (b) Reduced Retired Pay When Commenced Before Age 60.--
     Section 12739 of such title is amended--
       (1) in subsection (a), by inserting ``, subject to 
     subsection (d),'' after ``this chapter is'';
       (2) by redesignating subsection (d) as subsection (e); and
       (3) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) In the case of a person to whom payment of retired 
     pay under this chapter commences after the person attains 55 
     years of age and before the person attains 60 years of age, 
     the total amount of the monthly retired pay computed under 
     subsections (a), (b), and (c) shall be reduced by the 
     percentage specified for the age of the person when payment 
     of the retired pay commences, as follows:

``Age (in years) when Percentage by which retired pay is to be reduced:
  55..........................................................12.5 ....

  56...........................................................9.0 ....

  57...........................................................6.0 ....

  58...........................................................3.5 ....

  59........................................................1.5.''.....

       (c) Continuation of Age 60 as Minimum Age for Eligibility 
     for Uniformed Services Health Benefits.--Section 1074(b) of 
     title 10, United States Code, is amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Paragraph (1) does not apply to a member or former 
     member entitled to retired pay for non-regular service under 
     chapter 1223 of this title who is under 60 years of age.''.
       (d) Effective Date.--This section and the amendments made 
     by this section shall take effect on the first day of the 
     first month that begins more than 180 days after the date of 
     the enactment of this Act.
                                 ______
                                 
  SA 3224. Ms. COLLINS (for herself and Mr. Levin) submitted an 
amendment intended to be proposed by her to the bill S. 2400, to 
authorize appropriations for fiscal year 2005 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Services, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 290, after line 22, insert the following:

     SEC. 1107. BID PROTESTS BY FEDERAL EMPLOYEES IN ACTIONS UNDER 
                   OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-76.

       (a) Eligibility To Protest.--(1) Section 3551(2) of title 
     31, United States Code, is amended to read as follows:

[[Page 10379]]

       ``(2) The term `interested party'--
       ``(A) with respect to a contract or a solicitation or other 
     request for offers described in paragraph (1), means an 
     actual or prospective bidder or offeror whose direct economic 
     interest would be affected by the award of the contract or by 
     failure to award the contract; and
       ``(B) with respect to a public-private competition 
     conducted under Office of Management and Budget Circular A-76 
     regarding performance of an activity or function of a Federal 
     agency, includes--
       ``(i) any official who submitted the agency tender in such 
     competition; and
       ``(ii) any one person who, for the purpose of representing 
     them in a protest under this subchapter that relates to such 
     competition, has been designated as their agent by a majority 
     of the employees of such Federal agency who are engaged in 
     the performance of such activity or function.''.
       (2)(A) Subchapter V of chapter 35 of such title is amended 
     by adding at the end the following new section:

     ``Sec. 3557. Expedited action in protests for public-private 
       competitions

       ``For protests in cases of public-private competitions 
     conducted under Office of Management and Budget Circular A-76 
     regarding performance of an activity or function of Federal 
     agencies, the Comptroller General shall administer the 
     provisions of this subchapter in a manner best suited for 
     expediting final resolution of such protests and final action 
     in such competitions.''.
       (B) The chapter analysis at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     3556 the following new item:

``3557. Expedited action in protests for public-private 
              competitions.''.

       (b) Right To Intervene in Civil Action.--Section 1491(b) of 
     title 28, United States Code, is amended by adding at the end 
     the following new paragraph:
       ``(5) If a private sector interested party commences an 
     action described in paragraph (1) in the case of a public-
     private competition conducted under Office of Management and 
     Budget Circular A-76 regarding performance of an activity or 
     function of a Federal agency, then an official or person 
     described in section 3551(2)(B) of title 31 shall be entitled 
     to intervene in that action.''.
       (c) Applicability.--Subparagraph (B) of section 3551(2) of 
     title 31, United States Code (as added by subsection (a)), 
     and paragraph (5) of section 1491(b) of title 28, United 
     States Code (as added by subsection (b)), shall apply to--
       (1) protests and civil actions that challenge final 
     selections of sources of performance of an activity or 
     function of a Federal agency that are made pursuant to 
     studies initiated under Office of Management and Budget 
     Circular A-76 on or after January 1, 2004; and
       (2) any other protests and civil actions that relate to 
     public-private competitions initiated under Office of 
     Management and Budget Circular A-76 on or after the date of 
     the enactment of this Act.

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