[Congressional Record (Bound Edition), Volume 151 (2005), Part 12]
[Senate]
[Pages 16844-16860]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

                                 ______
                                 
      By Mr. THOMAS (for himself and Mrs. Lincoln):
  S. 1441. A bill to amend the Internal Revenue Code of 1986 to include 
wireless telecommunications equipment in the definition of qualified 
technological equipment for purposes of determining the depreciation 
treatment of such equipment; to the Committee on Finance.
  Mr. THOMAS. Mr. President, today I rise to introduce a bill that 
would clarify the class life of cell site equipment used by wireless 
telecommunications companies.
  Wireless telecommunications, like many other high-tech industries, 
uses computer-based technology to facilitate the digitization of voice, 
video and data services over its networks. The wireless industry was in 
its infancy in 1986 when the Internal Revenue Code's rules regarding 
depreciation were last revised, so the sophisticated equipment used 
today was not even contemplated. For the past 20 years, the Internal 
Revenue Service--and taxpayers--have had to try to shoehorn modern 
equipment into outdated wireline telephony definitions in order to 
determine the appropriate depreciation period. Even the Treasury 
Department, in its July 2000 ``Report to the Congress on Depreciation 
Recovery Periods and Methods,'' admits that this is inappropriate.
  The result of this methodology is that the IRS has taken the position 
that wireless cell site equipment should be depreciated similarly to 
wooden telephone poles and wires rather than other, computerized 
equipment that it more closely resembles. Consequently, this equipment 
is depreciated over 20 years rather than 5. In other words, the 
misclassification significantly increases the cost of capital 
investment in the Nation's wireless network.
  Given the rapid technological change and advances in the wireless 
industry, this bill would classify wireless telecommunications 
equipment as ``qualified technological equipment.'' This is the proper 
classification because the major components of wireless cell sites are, 
in fact, computers or peripheral equipment controlled by computers.
  Consumer demand for wireless services grew almost 700 percent over 
the last decade, and rapid growth in this area continues. The industry 
also makes significant contributions to the economy directly employing 
226,340 workers and making hundreds of billions of dollars in capital 
investments. Clarifying the depreciation treatment of cell site 
equipment means even greater wireless investment, increased wireless 
employment, and improved benefits to America's wireless consumers.
  Wireless technology has brought tremendous advances to rural America, 
and this bill would ensure that rural consumers continue to have timely 
access to the latest technology available. I thank my colleague from 
Arkansas, Mrs. Lincoln, for joining me in recognizing the problem and 
introducing this legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1441

         Be it enacted by the Senate and House of Representatives 
     of the United States of America in Congress assembled,

     SECTION 1. WIRELESS TELECOMMUNICATIONS EQUIPMENT.

       (a) In General.--Subparagraph (A) of section 168(i)(2) of 
     the Internal Revenue Code of 1986 (defining qualified 
     technological equipment) is amended by striking ``and'' at 
     the end of clause (ii), by striking the period at the end of 
     clause (iii) and inserting ``, and'', and by inserting after 
     clause (iii) the following new clause:
       ``(iv) any wireless telecommunications equipment.''.
       (b) Wireless Telecommunications Equipment.--Section 
     168(i)(2) of the Internal Revenue Code of 1986 is amended by 
     inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) Wireless telecommunications equipment.--For purposes 
     of this paragraph, the term `wireless telecommunications 
     equipment' means all equipment used in the transmission, 
     reception, coordination, or switching of wireless 
     telecommunications service, other than cell towers, 
     buildings, and T-1 lines or other cabling connecting cell 
     sites to mobile switching centers. For this purpose, 
     `wireless telecommunications service' includes any commercial 
     mobile radio service as defined in title 47 of the Code of 
     Federal Regulations.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service on or after the 
     date of the enactment of this Act.
                                 ______
                                 
      By Mrs. CLINTON (for herself, Mr. Chafee, and Mr. Reid):
  S. 1442. A bill to amend the Public Health Service Act to establish a 
Coordinated Environmental Health Network, and for other purposes; to 
the Committee on Health, Education, Labor, and Pensions.
  Mrs. CLINTON. Mr. President, I rise today to introduce, with my 
colleagues Senators Chafee and Reid, the Coordinated Environmental 
Health Tracking Act of 2005.
  There is a saying--``what you don't know can't hurt you.'' But when 
it comes to chronic disease, what we don't know can hurt all of us. The 
bill we are introducing today will help us solve the mysteries behind 
the high rates of chronic diseases such as cancer, autism, and 
Alzheimer's that afflict so many American communities.
  Once we are able to track diseases, and detect links to environmental 
or other causes, we will be able to prevent public health crises before 
they occur.
  The environmental links to the onset of diseases are not well 
understood. They are hidden health hazards that manifest themselves in 
chronic diseases. We are only beginning to understand what these 
hazards are and what is the scope of their effects on our health.
  We need more specifics on these environmental factors. For example, 
we need to know what is the cumulative effect of extended exposure to a 
variety of environmental factors over time.
  One way to get those specifics is to track the outbreak of chronic 
diseases, just like we track the outbreaks of infectious diseases.
  This legislation would establish a comprehensive national tracking 
system for chronic diseases, so that we can identify, address and 
prevent them.
  It would help States to participate in this national tracking system- 
by providing them with Environmental Health Tracking Network Grants, 
assisting them in developing the infrastructure necessary to 
participate in this network.
  It would also create a chronic disease response force, bringing the 
expertise of environmental, scientific and health experts to areas with 
potential clusters of chronic diseases, like Long Island's breast 
cancer cluster.
  It will allow us to monitor our environmental health by requiring an 
annual report of the results of the Nationwide Health Tracking Network, 
helping to educate and arm us with valuable information in the fight 
against chronic diseases.
  Finally, it will help us build the public health expertise we need to 
address these issues in the future, by providing funding for the 
establishment of at least seven biomonitoring labs and setting up 
epidemiology fellowships and centers of excellence for environmental 
health.
  I believe that this legislation will help obtain and act on the best 
possible evidence to improve our Nation's health and to begin to tackle 
the extraordinary human and economic costs that chronic disease imposes 
on our country.
                                 ______
                                 
      By Ms. COLLINS (for herself and Mr. Lieberman):

[[Page 16845]]

  S. 1443. A bill to permit athletes to receive nonimmigrant alien 
status under certain conditions, and for other purposes; to the 
Committee on the Judiciary.
  Ms. COLLINS. Mr. President, I rise today to once again introduce 
legislation that will address the challenges facing many promising, 
talented young athletes from other countries who wish to play for 
sports teams in the United States. Due to the shortage of H-2B 
nonimmigrant visas for temporary or seasonal nonagricultural foreign 
workers both this year and last, many American teams who rely on these 
visas to recruit new talent from abroad have been unable to bring some 
of their most talented prospects to the United States. This bill would 
provide a commonsense solution to this problem.
  Across the United States, the H-2B visa shortage has been a 
significant concern to many in a wide variety of industries, including 
hospitality, forest products, fisheries, and landscaping, to name a 
few. While we recently were successful in crafting a temporary, 2-year 
fix for the H-2B shortage, there is more still to be done. We must 
continue to seek permanent solutions to this problem, and to find 
practical ways to reduce the demand on this visa category. While there 
are a number of factors contributing to this high demand, among these 
is the extremely diverse, ``catch-all'' nature of this visa 
classification.
  What many people do not know is that, in addition to loggers, hotel 
and restaurant employees, fisheries workers, landscapers, and many 
other types of seasonal workers, the H-2B visa category is also used by 
many talented, highly competitive foreign athletes. Specifically, minor 
league athletes--unlike their counterparts at Major League franchises--
are lumped into this same oversubscribed visa category, despite the 
obvious differences in the nature of the work they perform. The recent 
H-2B visa shortage has therefore meant that hundreds of promising 
athletes have been unable to come to the United States to play for 
minor league and amateur sports teams across the Nation. Not only have 
many teams been unable to bring some of their most talented prospects 
to the United States, but this visa shortage has also compromised a 
traditional source of talent for Major League sports teams. In 
addition, some very talented ice skaters who have earned roles in a 
number of popular theatrical productions, such as Disney on Ice, have 
faced difficulties in coming to the United States.
  In my home State of Maine, for example, the Lewiston MAINEiacs, a 
Canadian junior hockey league team, faced tremendous difficulties last 
year obtaining the H-2B visas necessary for the majority of its players 
to remain in the United States to play in the team's first home games 
in September. These young athletes are among Canada's most talented 
junior players, but the shortage of H-2B visas threatened their chances 
of improve their skills with the MAINEiacs and, possibly, graduate to a 
career in professional hockey. This year, due to uncertainty about the 
availability of H-2B visas at the end of the fiscal year, the team has 
had to schedule a later season home opener. It must also attempt to 
schedule make-up games for the home games that the team would normally 
play in September. This creates a hardship on the team and its venue, 
and could mean fewer home games and a loss of revenue for businesses in 
the surrounding area. I have received a letter from the MAINEiacs, 
expressing the teams's support for this legislation. I ask unanimous 
consent that this letter be printed in the Record.
  The Portland Sea Dogs, a Double-A level baseball team affiliated with 
the Boston Red Sox, is another of the many teams that relies on H-2B 
visas to bring some of its most skilled players to the United States. 
Thousands of fans come out each year to see this team, and others like 
it across the country, play one of America's favorite sports. Due to 
the shortage of H-2B visas, however, Major League Baseball reports that 
more than 350 talented young, foreign baseball players were prevented 
from coming to the U.S. last year and early this year to play for Minor 
League teams, a traditional proving ground for athletes hoping to make 
it to the Major Leagues. The experience gained in the Minor Leagues is 
crucial to the development of the best Major League players.
  The inclusion of these athletes in the H-2B visa category seems 
particularly unusual when you consider that Major League athletes are 
permitted to use an entirely different nonimmigrant visa category: the 
P-1 visa. This visa is used by athletes who are deemed by the U.S. 
Citizenship and Immigration Services, CIS, to perform at an 
``internationally recognized level of performance.'' Arguably, any 
foreign athlete whose achievements have earned him a contract with an 
American team would meet this definition. However, CIS has interpreted 
this category to exclude minor and amateur league athletes. Instead, 
the P-1 visa is typically reserved for only those athletes who have 
already been promoted to Major League sports. Unfortunately, this 
creates something of a catch-22: if an H-2B visa shortage means that 
promising athletes are unable to hone their skills, and to prove 
themselves, in the Minor Leagues, then they are far less likely to ever 
earn a Major League contract.
  A simple solution would be to expand the P-1 visa category to include 
minor league athletes and certain amateur-level athletes who have 
demonstrated a significant likelihood of graduating to the major 
leagues. I have received a letter from officials from Major League 
Baseball, which continues to strongly support the expansion of the P-1 
visa category to include professional Minor League baseball players. I 
would ask unanimous consent that this letter be printed in the Record. 
As the League points out, by making P-1 visas available to this group 
of athletes, teams would be able to make player development decisions 
based on the talent of its players, without being constrained by visa 
quotas. The P-1 category, the League argues, is appropriate for Minor 
League players because these are the players that the Major League 
Clubs have selected as some of the best baseball prospects in the 
world.
  There is no question that Americans are passionate about sports. We 
have high expectations for our teams, and demand only the best from our 
athletes. By expanding the P-1 visa category, we will make it possible 
for athletes to be selected based on talent and skill, rather than 
nationality. In addition, we would reduce some pressure on the H-2B 
visa category so that more of those visas can be used where they are 
really needed.
  There being no objection, the letters were ordered to be printed in 
the Record, as follows:

                                                    July 11, 2005.
     Re legislation for nonimmigrant alien status for certain 
         athletes.

     Hon. Susan M. Collins,
     U.S. Senator from Maine, Russell Senate Office Building, 
         Washington, DC.
       Dear Senator Collins: I wish to express the Lewiston 
     MAINEiacs Hockey Club's support for your efforts with regard 
     to amending the P-1 work visa to enable all of our non U.S. 
     players to work in the United States.
       The Lewiston MAINEiacs Hockey Club is the sole U.S. based 
     franchise in the 18-member Quebec Major Junior Hockey League 
     (QMJHL). The QMJHL together with the Ontario Hockey League 
     (OHL) and the Western Hockey League (WHL) make up the 
     Canadian Hockey League which comprises a total of 58 teams. 
     Of these 58 franchises, 9 are located in the United Stats 
     (OHL-3,WHL-5, QMJHl-1).
       The CHL is the largest developer of talent for the National 
     Hockey League (NHL). More than 70% of all players, coaches 
     and general managers who have played in the NHL are graduates 
     of the Canadian Hockey League.
       The majority of players in the Canadian Hockey League are 
     Canadian, although each team is permitted to have a maximum 
     of 2 Europeans on their rosters. These is also an increasing 
     number of elite U.S. born players now playing in the league.
       The MAINEiacs sophomore season in 2004-fnl2-005 was a giant 
     success, growing the fan base to over 93,000 fans in the 
     regular season (2662 per game average). The team easily 
     advanced through the first round of the playoffs before 
     losing to the Rimouski Oceanic in the second round. Rimouski 
     subsequently went on to win the league title. The Lewiston 
     MAINEiacs also had two of their players drafted into the 
     National Hockey League in June 2004 with Alexandre Picard 
     being selected in the first round, 8th overall by the 
     Columbus Blue Jackets and Jonathan Paiememt being selected by 
     the New York

[[Page 16846]]

     Rangers in the 8th round. A total of 27 players in the QMJHL 
     were selected at the 2004 NHL Entry Draft.
       In January of 2004, the City of Lewiston purchased the 
     Colisee in order to complete the first round of renovations 
     to the facility which was in excess of two million dollars. 
     The Colisee has undergone a second phase of renovations in 
     excess of 1.8 million dollars that entails a three-story 
     addition to the front of the building providing for new 
     offices, box office, proshop, food and beverage concessions 
     and a new private VIP suite that can accommodate more than 
     130 fans per game. The City of Lewiston recently contracted 
     the day-to-day management of the Colisee to Global Spectrum, 
     a subsidiary of Comcast-Spectacor, one of the largest and 
     most successful facility management companies in North 
     America.
       The results of the current visa laws have forced all U.S. 
     based franchises in the CHL to delay the commencement of 
     their regular season until or after October 1 of each year 
     due to the restrictions of the H-2B temporary work visa 
     regulations. This has caused significant hardship on teams, 
     their facilities and the 3 leagues. U.S. based franchises are 
     forced to try and make-up games that would normally be 
     scheduled in the month of the September later in the season, 
     putting both the teams and their fans at disadvantage before 
     the season even commences.
       Under your leadership, should congressional legislation 
     make available P-1 visas to Major Junior players of the CHL, 
     the success of all 9 U.S. based CHL franchises would be 
     greatly enhanced by ensuring that all 58 teams have an equal 
     chance at attracting and developing the best available 
     talent.
       It is the hope of the Lewiston MAINEiacs that your 
     colleagues in the Senate follow your leadership and endorse 
     your recommendations for the expanded P-1 work visa to ensure 
     the viability and success of not only our franchise--but the 
     8 other U.S. based clubs in the Canadian Hockey League.
           Sincerely,
                                                    Matt McKnight,
     Vice President & Governor.
                                  ____

                                       Office of the Commissioner,


                                        Major League Baseball,

                                        New York, NY, May 6, 2005.
     Re legislation for nonimmigrant alien status for certain 
         athletes.

     Hon. Susan M. Collins,
     U.S. Senator from Maine, Russell Senate Office Building, 
         Washington, DC.
       Dear Senator Collins: I write to express Major League 
     Baseball's support for your efforts on behalf of Minor League 
     professional baseball players. We understand that you are 
     sponsoring legislation that will enable Minor League players 
     to obtain P-1 work visas to perform in the United States.
       Currently, foreign players under Minor League contracts are 
     required to obtain H-2B (temporary worker) work visas to 
     perform in the United States, forcing the Major League Clubs 
     to compete with employers of various unskilled workers for a 
     limited number of such visas that are issued. The United 
     States Citizenship and Immigration Services stopped accepting 
     H-2B visa applications in early January this year (and in 
     March, in 2004), citing the nationwide cap in the number of 
     such visas that can be issued. That action prevented more 
     than 350 young baseball players from performing in the Minor 
     Leagues in the United States in 2004 and 2005. Moreover, 
     Major League Clubs were forced to make premature player 
     promotion decisions this past off-season, in a race to apply 
     for H-2B visas before the cap was reached.
       Minor League experience is crucial in developing the best 
     possible Major League players. Unlike other professional 
     athletes, baseball players almost invariably cannot go 
     directly from high school or college to the Major Leagues. 
     Almost all need substantial experience in the Minor Leagues 
     to develop their talents and skills to Major League quality. 
     To get that necessary experience, young players are signed by 
     Major League Clubs and assigned to play for Minor League 
     affiliates throughout the United States, such as the Eastern 
     League's Portland Sea Dogs in your state.
       Major League Clubs sign many players from the Dominican 
     Republic and Venezuela and assign them at first to affiliates 
     in those countries, then seek to promote them to affiliates 
     in the United States as players' skills progress. Typically, 
     a Club would seek to promote 3-5 players per season to Minor 
     League affiliates in the United States, but the visa 
     restrictions will make those promotions impossible this 
     season, as they did last year as well. The Major League Clubs 
     were able to use only approximately 80% of the H-2B visas the 
     Department of Labor allowed them for the 2004 and 2005 
     seasons, because current laws prevent them from making 
     decisions in the late spring and throughout the summer to 
     promote foreign prospects to United States affiliates. My 
     staff has learned that at least several Clubs shied away from 
     drafting foreign (mostly Canadian) players whom they 
     otherwise might have selected in the annual First-Year Player 
     Draft in June 2004 and will do so again this year, because 
     those Clubs know there is no opportunity for those players to 
     begin their professional careers in the United States the 
     summer after their selection. For the Canadian players who 
     were drafted in June 2004, signings declined 80% from 2003. 
     These results of the current visa laws have deprived Minor 
     League fans across America from seeing the best young players 
     possible perform for affiliates of the Major League Baseball 
     Clubs and have affected the quality and attractiveness of 
     those affiliates.
       Under your leadership, congressional legislation could, by 
     sensibly making available P-1 visas to professional Minor 
     League athletes, ensure that the best baseball prospects from 
     around the world will get the opportunity to develop here in 
     the United States, without the constraint that the H-2B visa 
     cap imposes. The National Association of Professional 
     Baseball Leagues, Inc., also known as Minor League Baseball, 
     shares our support of your legislation. The Major League 
     Baseball Players Association also supports allowing the best 
     young players to develop here in the United States.
       Major League Baseball hopes that your Senate colleagues 
     will follow your leadership and pursue a legislative remedy 
     to a problem that is threatening to weaken Baseball's Minor 
     League system.
           Sincerely,
                                                  Robert A. DuPuy,
                            President and Chief Operating Officer.
                                 ______
                                 
      By Mr. BAUCUS (for himself and Mr. Coleman):
  S. 1444. A bill to amend the Trade Act of 1974 to provide for 
alternative means of certifying workers for adjustment assistance on an 
industry-wide basis; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, I rise today to introduce the Trade 
Adjustment Assistance for Industries Act.
  I have long been a champion for our Trade Adjustment Assistance 
program, what we call ``TAA.''
  For more than 40 years, TAA has been providing retraining, income 
support, and other benefits to workers who lose their jobs due to 
trade. The program has a critical mission: to give trade-impacted 
workers the skills they need to find new jobs and prosper in growing 
sectors of the economy.
  Maintaining a well-trained workforce is key to our Nation's long-term 
competitiveness and economic health. And helping those few who lose out 
from our trade policy choices is key to maintaining public support for 
trade liberalization.
  In the Trade Act of 2002, I spearheaded the most comprehensive 
expansion and overhaul of the TAA program since 1974. We expanded the 
kinds of workers who are eligible for TAA benefits. We extended the 
training benefit to make it more effective and enhanced funding for 
training. We added new benefits like wage insurance and the health 
coverage tax credit. We also streamlined the application process to get 
workers enrolled and retraining sooner.
  TAA is a lifeline for those who enter the program. Participating 
workers in Montana tell me that TAA has made it possible for them to 
make a new start. It gives them hope that they can do something more 
than merely survive a plant closure.
  One of the industries in Montana that has had all too much experience 
with the TAA program is softwood lumber. Our softwood lumber industry 
has been battered for years by imports of dumped and subsidized lumber 
from Canada. Over time, and despite decades of litigation, these unfair 
trading practices have taken their toll.
  Since 1999, workers from at least 24 Montana lumber mills have 
applied for TAA certification. An additional 11 petitions were filed 
under the now-repealed NAFTA-TAA program.
  What surprises me is not that so many Montana lumber workers have 
applied for TAA--but the inconsistent treatment of their petitions. Of 
the 24 Montana lumber companies that petitioned for TAA, 16 were 
approved and 8 were denied. Under the NAFTA-TAA program, 6 petitions 
were approved, and 5 were denied.
  These results do not make sense. These mills are all competing in the 
same market. They are all competing against dumped and subsidized 
imports from Canada that drive down prices until U.S. producers cannot 
survive. The International Trade Commission found that Canadian imports 
injure or threaten injury to the entire domestic softwood lumber 
industry. And yet, somewhere between a third and a half of Montana 
workers laid off in the industry were left to fend for themselves, 
while the others had the chance to participate in TAA.

[[Page 16847]]

  So why are some workers getting TAA and others being turned down? The 
answer lies in the way the Department of Labor reviews petitions. Under 
current law, petitions have to be filed and reviewed on a plant-by-
plant basis and in a total vacuum.
  In effect, the Labor Department puts on blinders. It does not 
consider whether the International Trade Commission has found injury to 
the industry from imports. It does not ask whether imports are leading 
to job losses nationwide. It does not examine whether entire 
occupational categories are being offshored.
  Instead, it just asks an individual plant whether it or its customers 
are buying more imports. If that one plant submits the wrong 
information, or its customers deny buying imports, its workers lose 
out--while similar workers up the road get the benefits they deserve.
  The plight of softwood lumber illustrates why, in some cases, plant-
by-plant certification is not the best policy. And lumber workers are 
not alone. A similarly checkered record of certifications and denials 
affects other industries, like textiles and small electronics. Simply 
put, there are some industries where the trade-related displacements 
are clearly national in scope.
  The industries are easy to identify. They experience multiple plant 
closures covering multiple states in a relatively short period. They 
are often industries seeking or receiving relief under trade remedy 
laws.
  In these cases, it makes no sense to consider petitions one plant 
closure at a time. That creates the risk of inconsistent results for 
similarly situated workers. And it makes the Department of Labor 
investigate the same situation over and over again--even when the 
International Trade Commission, or another Federal agency, has already 
made a thorough injury investigation.
  What would make more sense is a way to certify workers on an 
industry-wide basis or on the basis of occupational classification in 
cases where the trade-related layoffs are national in scope. That is 
what this legislation does.
  I should note that, in one rare circumstance, the President already 
has the authority to certify workers for TAA on an industry-wide and 
nationwide basis. When the President grants a remedy in a global 
safeguard case--what we call section 201--he has the option of 
certifying all workers in the affected industry for TAA.
  To my knowledge, this option has been used only once, by President 
Reagan, in a case involving the footwear industry. In that case, 
workers laid off from individual footwear plants did not need to 
petition the Department of Labor for a determination that their job 
losses were import-related. All each worker had to do was go to a 
designated office in his State and prove that he lost a job in the 
footwear industry within the applicable time period.
  Normally, there are two steps needed to qualify for TAA under current 
law. First, the Department of Labor has to certify that a particular 
layoff is trade-related. That certification covers all the workers laid 
off at a single plant. Second, each individual worker affected by that 
layoff has to prove that he or she satisfies a list of criteria to 
qualify for benefits, such as 2 years' employment at the firm and 
eligibility for unemployment insurance. In the footwear case, workers 
were spared the first, group eligibility step and moved right to the 
second step.
  To me, this model makes a lot of sense. If you believe in the purpose 
of TAA, it makes sense to make it as easy as possible for qualifying 
workers to access benefits.
  This bill achieves that goal in two ways.
  First, it makes industry-wide TAA certification automatic in cases 
where the President, the International Trade Commission, or another 
qualified Federal agency has already determined that imports are having 
an injurious effect. If workers lose their jobs in an industry covered 
by a global or bilateral safeguard or an antidumping or countervailing 
duty order, within a set period of time, they do not need to file a 
petition for TAA. Instead, they can proceed directly to the second step 
of demonstrating their individual eligibility and enrolling through the 
one-stop centers in their states.
  Second, the bill permits, but does not require, the Secretary of 
Labor to make her eligibility determination on an industry-wide or 
occupation-wide basis in other circumstances that suggest a plant-by-
plant approach is not appropriate. Such circumstances would include 
cases where the Secretary has received three or more petitions from 
workers at different plants in the same industry within a 6 month 
period. It would also include cases where the Senate Finance Committee 
or the House Ways and Means Committee passes a resolution requesting an 
industry-wide investigation. In these cases, the Secretary may certify 
workers in an entire industry only if she determines that the statutory 
eligibility criteria are satisfied on an industry-wide basis.
  Now that I have described what this bill does, I think it is 
important to emphasize some things that it does not do:
  It does not change the eligibility criteria or make any new 
categories of workers eligible for TAA.
  It does not make TAA benefits available to workers who quit their 
jobs or are fired for cause.
  It does not change the type or amount of benefits an eligible worker 
can receive.
  What it does is create a fair, predictable, and efficient way to make 
eligibility determinations where industry-wide effects are obvious.
  We owe our trade-affected workers a fair chance to train for the jobs 
of the future and get back into the workforce. And we owe our employers 
and our economic future well-trained workers.
  We already have a program designed to do just that. We should be 
doing everything we can to make sure that TAA benefits reach every 
qualified worker who needs them. This change is long overdue.
  I want to thank Senator Coleman for joining me in introducing this 
important legislation. He has been a strong partner in the quest to 
make TAA work for every American who needs it.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1444

         Be it enacted by the Senate and House of Representatives 
     of the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Trade Adjustment Assistance 
     for Industries Act of 2005''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Trade Adjustment Assistance assists workers and 
     agricultural commodity producers who lose their jobs for 
     trade-related reasons to retrain, gain new skills, and find 
     new jobs in growing sectors of the economy.
       (2) The total cost of providing adjustment assistance 
     represents a tiny fraction of the gains to the United States 
     economy as a whole that economists attribute to trade 
     liberalization.
       (3) In circumstances where, due to changes in market 
     conditions caused by the implementation of bilateral or 
     multilateral free trade agreements, unfair trade practices, 
     unforeseen import surges, and other reasons, import 
     competition creates industry-wide effects on domestic workers 
     or agricultural commodity producers, the current process of 
     assessing eligibility for trade adjustment assistance on a 
     plant-by-plant basis is inefficient and can lead to unfair 
     and inconsistent results.

     SEC. 3. OTHER METHODS OF REQUESTING INVESTIGATION.

       Section 221 of the Trade Act of 1974 (19 U.S.C. 2271) is 
     amended--
       (1) by adding at the end the following:
       ``(c) Other Methods of Initiating a Petition.--Upon the 
     request of the President or the United States Trade 
     Representative, or the resolution of either the Committee on 
     Ways and Means of the House of Representatives or the 
     Committee on Finance of the Senate, the Secretary shall 
     promptly initiate an investigation under this chapter to 
     determine the eligibility for adjustment assistance of--
       ``(1) a group of workers (which may include workers from 
     more than one facility or employer); or
       ``(2) all workers in an occupation as that occupation is 
     defined in the Bureau of Labor

[[Page 16848]]

     Statistics Standard Occupational Classification System.'';
       (2) in subsection (a)(2), by inserting ``or a request or 
     resolution filed under subsection (c),'' after ``paragraph 
     (1),''; and
       (3) in subsection (a)(3), by inserting ``, request, or 
     resolution'' after ``petition'' each place it appears.

     SEC. 4. NOTIFICATION.

       Section 224 of the Trade Act of 1974 (19 U.S.C. 2274) is 
     amended to read as follows:

     ``SEC. 224. NOTIFICATIONS REGARDING AFFIRMATIVE 
                   DETERMINATIONS AND SAFEGUARDS.

       ``(a) Notifications Regarding Chapter 1 Investigations and 
     Determinations.--Whenever the International Trade Commission 
     makes a report under section 202(f) containing an affirmative 
     finding regarding serious injury, or the threat thereof, to a 
     domestic industry, the Commission shall immediately--
       ``(1) notify the Secretary of Labor of that finding; and
       ``(2) in the case of a finding with respect to an 
     agricultural commodity, as defined in section 291, notify the 
     Secretary of Agriculture of that finding.
       ``(b) Notification Regarding Bilateral Safeguards.--The 
     International Trade Commission shall immediately notify the 
     Secretary of Labor and, in an investigation with respect to 
     an agricultural commodity, the Secretary of Agriculture, 
     whenever the Commission makes an affirmative determination 
     pursuant to one of the following provisions:
       ``(1) Section 421 of the Trade Act of 1974 (19 U.S.C. 
     2451).
       ``(2) Section 312 of the United States-Australia Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(3) Section 312 of the United States-Morocco Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(4) Section 312 of the United States-Singapore Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(5) Section 312 of the United States-Chile Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(6) Section 302(b) of the North American Free Trade 
     Agreement Implementation Act (19 U.S.C. 3352(b)).
       ``(7) Section 212 of the United States-Jordan Free Trade 
     Agreement Implementation Act (19 U.S.C. 2112).
       ``(c) Agricultural Safeguards.--The Commissioner of Customs 
     shall immediately notify the Secretary of Labor and, in the 
     case of an agricultural commodity, the Secretary of 
     Agriculture, whenever the Commissioner of Customs assesses 
     additional duties on a product pursuant to one of the 
     following provisions:
       ``(1) Section 202 of the United States-Australia Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(2) Section 202 of the United States-Morocco Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(3) Section 201(c) of the United States-Chile Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(4) Section 309 of the North American Free Trade 
     Agreement Implementation Act (19 U.S.C. 3358).
       ``(5) Section 301(a) of the United States-Canada Free Trade 
     Agreement Implementation Act of 1988 (19 U.S.C. 2112 note).
       ``(6) Section 404 of the United States-Israel Free Trade 
     Agreement Implementation Act (19 U.S.C. 2112 note).
       ``(d) Textile Safeguards.--The President shall immediately 
     notify the Secretary of Labor whenever the President makes a 
     positive determination pursuant to one of the following 
     provisions:
       ``(1) Section 322 of the United States-Australia Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(2) Section 322 of the United States-Morocco Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(3) Section 322 of the United States-Chile Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(4) Section 322 of the United States-Singapore Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(e) Antidumping and Countervailing Duties.--Whenever the 
     International Trade Commission makes a final affirmative 
     determination pursuant to section 705 or section 735 of the 
     Tariff Act of 1930 (19 U.S.C. 1671d or 1673d), the Commission 
     shall immediately notify the Secretary of Labor and, in the 
     case of an agricultural commodity, the Secretary of 
     Agriculture, of that determination.''.

     SEC. 5. INDUSTRY-WIDE DETERMINATION.

       Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is 
     amended by adding at the end the following:
       ``(e) Investigation Regarding Industry-Wide 
     Certification.--If the Secretary receives a request or a 
     resolution under section 221(c) on behalf of workers in a 
     domestic industry or occupation (described in section 
     221(c)(2)) or receives 3 or more petitions under section 
     221(a) within a 180-day period on behalf of groups of workers 
     in a domestic industry or occupation, the Secretary shall 
     make an industry-wide determination under subsection (a) of 
     this section with respect to the domestic industry or 
     occupation in which the workers are or were employed. If the 
     Secretary does not make certification under the preceding 
     sentence, the Secretary shall make a determination of 
     eligibility under subsection (a) with respect to each group 
     of workers in that domestic industry or occupation from which 
     a petition was received.''.

     SEC. 6. COORDINATION WITH OTHER TRADE PROVISIONS.

       (a) Industry-Wide Certification Based on Global 
     Safeguards.--
       (1) Recommendations by itc.--
       (A) Section 202(e)(2)(D) of the Trade Act of 1974 (19 
     U.S.C. 2252(e)(2)(D)) is amended by striking ``, including 
     the provision of trade adjustment assistance under chapter 
     2''.
       (B) Section 203(a)(3)(D) of the Trade Act of 1974 (19 
     U.S.C. 2253(a)(3)(D)) is amended by striking ``, including 
     the provision of trade adjustment assistance under chapter 
     2''.
       (2) Assistance for workers.--Section 203(a)(1)(A) of the 
     Trade Act of 1974 (19 U.S.C. 2253(a)(1)(A)) is amended to 
     read as follows:
       ``(A) After receiving a report under section 202(f) 
     containing an affirmative finding regarding serious injury, 
     or the threat thereof, to a domestic industry--
       ``(i) the President shall take all appropriate and feasible 
     action within his power; and
       ``(ii)(I) the Secretary of Labor shall certify as eligible 
     to apply for adjustment assistance under section 223 workers 
     employed in the domestic industry defined by the Commission 
     if such workers become totally or partially separated, or are 
     threatened to become totally or partially separated, not 
     earlier than 1 year before, or not later than 1 year after, 
     the date on which the Commission made its report to the 
     President under section 202(f); and
       ``(II) in the case of a finding with respect to an 
     agricultural commodity as defined in section 291, the 
     Secretary of Agriculture shall certify as eligible to apply 
     for adjustment assistance under section 293 agricultural 
     commodity producers employed in the domestic production of 
     the agricultural commodity that is the subject of the finding 
     during the most recent marketing year.''.
       (b) Industry-Wide Certification Based on Bilateral 
     Safeguard Provisions or Antidumping or Countervailing Duty 
     Orders.--
       (1) In general.--Subchapter A of chapter 1 of title II of 
     the Trade Act of 1974 (19 U.S.C. 2271 et seq.) is amended by 
     inserting after section 224 the following new section:

     ``SEC. 224A. INDUSTRY-WIDE CERTIFICATION WHERE BILATERAL 
                   SAFEGUARD PROVISIONS INVOKED OR ANTIDUMPING OR 
                   COUNTERVAILING DUTIES IMPOSED.

       ``(a) In General.--
       ``(1) Mandatory certification.--Not later than 10 days 
     after the date on which the Secretary of Labor receives a 
     notification with respect to the imposition of a trade 
     remedy, safeguard determination, or antidumping or 
     countervailing duty determination under section 224 (a), (b), 
     (c), (d), or (e), the Secretary shall certify as eligible for 
     trade adjustment assistance under section 223(a) workers 
     employed in the domestic production of the article that is 
     the subject of the trade remedy, safeguard determination, or 
     antidumping or countervailing duty determination, as the case 
     may be, if such workers become totally or partially 
     separated, or are threatened to become totally or partially 
     separated not more than 1 year before or not more than 1 year 
     after the applicable date.
       ``(2) Applicable date.--In this section, the term 
     `applicable date' means--
       ``(A) the date on which the affirmative or positive 
     determination or finding is made in the case of a 
     notification under section 224 (a), (b), or (d);
       ``(B) the date on which a final determination is made in 
     the case of a notification under section 224(e); or
       ``(C) the date on which additional duties are assessed in 
     the case of a notification under section 224(c).
       ``(b) Qualifying Requirements for Workers.--The provisions 
     of subchapter B shall apply in the case of a worker covered 
     by a certification under this section or section 223(e), 
     except as follows:
       ``(1) Section 231(a)(5)(A)(ii) shall be applied--
       ``(A) by substituting `30th week' for `16th week' in 
     subclause (I); and
       ``(B) by substituting `26th week' for `8th week' in 
     subclause (II).
       ``(2) The provisions of section 236(a)(1) (A) and (B) shall 
     not apply.''.
       (2) Agricultural commodity producers.--Chapter 6 of title 
     II of the Trade Act of 1974 (19 U.S.C. 2401 et seq.) is 
     amended by striking section 294 and inserting the following:

     ``SEC. 294. INDUSTRY-WIDE CERTIFICATION FOR AGRICULTURAL 
                   COMMODITY PRODUCERS WHERE SAFEGUARD PROVISIONS 
                   INVOKED OR ANTIDUMPING OR COUNTERVAILING DUTIES 
                   IMPOSED.

       ``(a) In General.--Not later than 10 days after the date on 
     which the Secretary of Agriculture receives a notification 
     with respect to the imposition of a trade remedy, safeguard 
     determination, or antidumping or countervailing duty 
     determination under section 224 (b), (c), or (e), the 
     Secretary shall certify as eligible for trade adjustment 
     assistance under section 293(a) agricultural

[[Page 16849]]

     commodity producers employed in the domestic production of 
     the agricultural commodity that is the subject of the trade 
     remedy, safeguard determination, or antidumping or 
     countervailing duty determination, as the case may be, during 
     the most recent marketing year.
       ``(b) Applicable Date.--In this section, the term 
     `applicable date' means--
       ``(1) the date on which the affirmative or positive 
     determination or finding is made in the case of a 
     notification under section 224(b);
       ``(2) the date on which a final determination is made in 
     the case of a notification under section 224(e); or
       ``(3) the date on which additional duties are assessed in 
     the case of a notification under section 224(c).''.
       (c) Technical and Conforming Amendments.--
       (1) Training.--Section 236(a)(2)(A) is amended by striking 
     ``$220,000,000, and inserting ``$440,000,000''.
       (2) Table of contents.--The table of contents for title II 
     of the Trade Act of 1974 is amended--
       (A) by striking the item relating to section 224 and 
     inserting the following:

``Sec. 224. Notifications regarding affirmative determinations and 
              safeguards.'';

       (B) by inserting after the item relating to section 224, 
     the following:

``Sec. 224A. Industry-wide certification based on bilateral safeguard 
              provisions invoked or antidumping or countervailing 
              duties imposed.'';

       and
       (C) by striking the item relating to section 294, and 
     inserting the following:

``Sec. 294. Industry-wide certification for agricultural commodity 
              producers where safeguard provisions invoked or 
              antidumping or countervailing duties imposed.''.

     SEC. 7. REGULATIONS.

       The Secretary of the Treasury, the Secretaries of 
     Agriculture and Labor, and the International Trade Commission 
     may promulgate such regulations as may be necessary to carry 
     out the amendments made by this Act.
                                 ______
                                 
      By Mr. GRASSLEY (for himself and Mr. Baucus):
  S. 1447. A bill to amend the Internal Revenue Code of 1986 to make 
technical corrections, and for other purposes; to the Committee on 
Finance.
  Mr. GRASSLEY. Mr. President, Today I am pleased to introduce the Tax 
Technical Corrections Act of 2005 with Senator Baucus.
  Technical corrections measures are routine for major tax acts, and 
are necessary to ensure that the provisions of the acts are working 
consistently with the originally enacted provisions, or to provide 
clerical corrections. Because these measures carry out Congressional 
intent, no revenue gain or loss is scored from them.
  Technical corrections are derived from a deliberative and 
consultative process among the Congressional and administration tax 
staffs. That means the Republican and Democratic staffs of the House 
Ways and Means and Senate Finance Committees are involved as is the 
Treasury Department staff. All of this work is performed with the 
participation and guidance of the non-partisan Joint Committee on 
Taxation staff. A technical enters the list only if all staffs agree it 
is appropriate.
  The process and test for technical corrections ensures that only 
provisions narrowly drawn to carry out Congressional intent are 
included.
  Unfortunately, some press reports have distorted the technical 
corrections bill. These reports unfairly characterize this technical 
corrections bill as a re-opening of substantive tax policy of settled 
tax legislation.
  While it is true that interested parties are heard on purported 
technical corrections, only measures that all staffs agree are purely 
technical are included in the bill. Clarifications or substantive 
changes to provisions are not considered technical corrections. This is 
an important distinction that the press reports unfortunately did not 
make.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1447

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF 
                   CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Tax 
     Technical Corrections Act of 2005''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.
Sec. 2. Amendments related to the American Jobs Creation Act of 2004.
Sec. 3. Amendments related to the Working Families Tax Relief Act of 
              2004.
Sec. 4. Amendments related to the Jobs and Growth Tax Relief 
              Reconciliation Act of 2003.
Sec. 5. Amendment related to the Victims of Terrorism Tax Relief Act of 
              2001.
Sec. 6. Amendment related to the Transportation Equity Act for the 21st 
              Century.
Sec. 7. Amendments related to the Taxpayer Relief Act of 1997.
Sec. 8. Clerical corrections.
Sec. 9. Other corrections related to the American Jobs Creation Act of 
              2004.

     SEC. 2. AMENDMENTS RELATED TO THE AMERICAN JOBS CREATION ACT 
                   OF 2004.

       (a) Amendments Related to Section 102 of the Act.--
       (1) Paragraph (1) of section 199(b) is amended by striking 
     ``the employer'' and inserting ``the taxpayer''.
       (2) Paragraph (2) of section 199(b) is amended to read as 
     follows:
       ``(2) W-2 wages.--For purposes of this section, the term 
     `W-2 wages' means, with respect to any person for any taxable 
     year of such person, the sum of the amounts described in 
     paragraphs (3) and (8) of section 6051(a) paid by such person 
     with respect to employment of employees by such person during 
     the calendar year ending during such taxable year. Such term 
     shall not include any amount which is not properly included 
     in a return filed with the Social Security Administration on 
     or before the 60th day after the due date (including 
     extensions) for such return.''.
       (3) Subparagraph (B) of section 199(c)(1) is amended by 
     inserting ``and'' at the end of clause (i), by striking 
     clauses (ii) and (iii), and by inserting after clause (i) the 
     following:
       ``(ii) other expenses, losses, or deductions (other than 
     the deduction allowed under this section), which are properly 
     allocable to such receipts.''.
       (4) Paragraph (2) of section 199(c) is amended to read as 
     follows:
       ``(2) Allocation method.--The Secretary shall prescribe 
     rules for the proper allocation of items described in 
     paragraph (1) for purposes of determining qualified 
     production activities income. Such rules shall provide for 
     the proper allocation of items whether or not such items are 
     directly allocable to domestic production gross receipts.''.
       (5) Subparagraph (A) of section 199(c)(4) is amended by 
     striking clauses (ii) and (iii) and inserting the following 
     new clauses:
       ``(ii) in the case of a taxpayer engaged in the active 
     conduct of a construction trade or business, construction of 
     real property performed in the United States by the taxpayer 
     in the ordinary course of such trade or business, or
       ``(iii) in the case of a taxpayer engaged in the active 
     conduct of an engineering or architectural services trade or 
     business, engineering or architectural services performed in 
     the United States by the taxpayer in the ordinary course of 
     such trade or business with respect to the construction of 
     real property in the United States.''.
       (6) Subparagraph (B) of section 199(c)(4) is amended by 
     striking ``and'' at the end of clause (i), by striking the 
     period at the end of clause (ii) and inserting ``, or'', and 
     by adding at the end the following:
       ``(iii) the lease, rental, license, sale, exchange, or 
     other disposition of land.''.
       (7) Paragraph (4) of section 199(c) is amended by adding at 
     the end the following new subparagraphs:
       ``(C) Special rule for certain government contracts.--Gross 
     receipts derived from the manufacture or production of any 
     property described in subparagraph (A)(i)(I) shall be treated 
     as meeting the requirements of subparagraph (A)(i) if--
       ``(i) such property is manufactured or produced by the 
     taxpayer pursuant to a contract with the Federal Government, 
     and
       ``(ii) the Federal Acquisition Regulation requires that 
     title or risk of loss with respect to such property be 
     transferred to the Federal Government before the manufacture 
     or production of such property is complete.
       ``(D) Partnerships owned by expanded affiliated groups.--
     For purposes of this paragraph, if all of the interests in 
     the capital and profits of a partnership are owned by members 
     of a single expanded affiliated group at all times during the 
     taxable year of such partnership, the partnership and all 
     members of such group shall be treated as a single taxpayer 
     during such period.''.

[[Page 16850]]

       (8) Paragraph (1) of section 199(d) is amended to read as 
     follows:
       ``(1) Application of section to pass-thru entities.--
       ``(A) Partnerships and s corporations.--In the case of a 
     partnership or S corporation--
       ``(i) this section shall be applied at the partner or 
     shareholder level,
       ``(ii) each partner or shareholder shall take into account 
     such person's allocable share of each item described in 
     subparagraph (A) or (B) of subsection (c)(1) (determined 
     without regard to whether the items described in such 
     subparagraph (A) exceed the items described in such 
     subparagraph (B)), and
       ``(iii) each partner or shareholder shall be treated for 
     purposes of subsection (b) as having W-2 wages for the 
     taxable year in an amount equal to the lesser of--

       ``(I) such person's allocable share of the W-2 wages of the 
     partnership or S corporation for the taxable year (as 
     determined under regulations prescribed by the Secretary), or
       ``(II) 2 times 9 percent of so much of such person's 
     qualified production activities income as is attributable to 
     items allocated under clause (ii) for the taxable year.

       ``(B) Trusts and estates.--In the case of a trust or 
     estate--
       ``(i) the items referred to in subparagraph (A)(ii) (as 
     determined therein) and the W-2 wages of the trust or estate 
     for the taxable year, shall be apportioned between the 
     beneficiaries and the fiduciary (and among the beneficiaries) 
     under regulations prescribed by the Secretary, and
       ``(ii) for purposes of paragraph (2), adjusted gross income 
     of the trust or estate shall be determined as provided in 
     section 67(e) with the adjustments described in such 
     paragraph.
       ``(C) Regulations.--The Secretary may prescribe rules 
     requiring or restricting the allocation of items and wages 
     under this paragraph and may prescribe such reporting 
     requirements as the Secretary determines appropriate.''.
       (9) Paragraph (3) of section 199(d) is amended to read as 
     follows:
       ``(3) Agricultural and horticultural cooperatives.--
       ``(A) Deduction allowed to patrons.--Any person who 
     receives a qualified payment from a specified agricultural or 
     horticultural cooperative shall be allowed for the taxable 
     year in which such payment is received a deduction under 
     subsection (a) equal to the portion of the deduction allowed 
     under subsection (a) to such cooperative which is--
       ``(i) allowed with respect to the portion of the qualified 
     production activities income to which such payment is 
     attributable, and
       ``(ii) identified by such cooperative in a written notice 
     mailed to such person during the payment period described in 
     section 1382(d).
       ``(B) Cooperative denied deduction for portion of qualified 
     payments.--The taxable income of a specified agricultural or 
     horticultural cooperative shall not be reduced under section 
     1382 by reason of that portion of any qualified payment as 
     does not exceed the deduction allowable under subparagraph 
     (A) with respect to such payment.
       ``(C) Taxable income of cooperatives determined without 
     regard to certain deductions.--For purposes of this section, 
     the taxable income of a specified agricultural or 
     horticultural cooperative shall be computed without regard to 
     any deduction allowable under subsection (b) or (c) of 
     section 1382 (relating to patronage dividends, per-unit 
     retain allocations, and nonpatronage distributions).
       ``(D) Special rule for marketing cooperatives.--For 
     purposes of this section, a specified agricultural or 
     horticultural cooperative described in subparagraph (F)(ii) 
     shall be treated as having manufactured, produced, grown, or 
     extracted in whole or significant part any qualifying 
     production property marketed by the organization which its 
     patrons have so manufactured, produced, grown, or extracted.
       ``(E) Qualified payment.--For purposes of this paragraph, 
     the term `qualified payment' means, with respect to any 
     person, any amount which--
       ``(i) is described in paragraph (1) or (3) of section 
     1385(a),
       ``(ii) is received by such person from a specified 
     agricultural or horticultural cooperative, and
       ``(iii) is attributable to qualified production activities 
     income with respect to which a deduction is allowed to such 
     cooperative under subsection (a).
       ``(F) Specified agricultural or horticultural 
     cooperative.--For purposes of this paragraph, the term 
     `specified agricultural or horticultural cooperative' means 
     an organization to which part I of subchapter T applies which 
     is engaged--
       ``(i) in the manufacturing, production, growth, or 
     extraction in whole or significant part of any agricultural 
     or horticultural product, or
       ``(ii) in the marketing of agricultural or horticultural 
     products.''.
       (10) Clause (i) of section 199(d)(4)(B) is amended--
       (A) by striking ``50 percent'' and inserting ``more than 50 
     percent'', and
       (B) by striking ``80 percent'' and inserting ``at least 80 
     percent''.
       (11)(A) Paragraph (6) of section 199(d) is amended to read 
     as follows:
       ``(6) Coordination with minimum tax.--For purposes of 
     determining alternative minimum taxable income under section 
     55--
       ``(A) the deduction under this section shall be determined 
     without regard to any adjustments under sections 56 through 
     59, and
       ``(B) in the case of a corporation, subsection (a)(1)(B) 
     shall be applied by substituting `alternative minimum taxable 
     income' for `taxable income'.''.
       (B) Paragraph (2) of section 199(a) is amended by striking 
     ``subsections (d)(1) and (d)(6)'' and inserting ``subsection 
     (d)(1)''.
       (12) Subsection (d) of section 199 is amended by 
     redesignating paragraph (7) as paragraph (8) and by inserting 
     after paragraph (6) the following new paragraph:
       ``(7) Unrelated business taxable income.--For purposes of 
     determining the tax imposed by section 511, subsection 
     (a)(1)(B) shall be applied by substituting `unrelated 
     business taxable income' for `taxable income'.''.
       (13) Subsection (d) of section 199, as amended by the 
     preceding paragraphs of this subsection, is further amended 
     by redesignating paragraph (8) as paragraph (9) and by 
     inserting after paragraph (7) the following new paragraph:
       ``(8) Coordination with carryover of net operating loss.--
     The deduction allowable under this section shall not be taken 
     into account for purposes of computing taxable income under 
     section 172(b)(2).''.
       (14) Paragraph (9) of section 199(d), as redesignated by 
     the preceding paragraphs of this subsection, is amended by 
     inserting ``, including regulations which prevent more than 1 
     taxpayer from being allowed a deduction under this section 
     with respect to any activity described in subsection 
     (c)(4)(A)(i)'' before the period at the end.
       (15) Clause (i) of section 163(j)(6)(A) is amended by 
     striking ``and'' at the end of subclause (II), by 
     redesignating subclause (III) as subclause (IV), and by 
     inserting after subclause (II) the following new subclause:

       ``(III) any deduction allowable under section 199, and''.

       (16) Paragraph (2) of section 170(b) is amended by 
     redesignating subparagraphs (C) and (D) as subparagraphs (D) 
     and (E), respectively, and by inserting after subparagraph 
     (B) the following new subparagraph:
       ``(C) section 199,''.
       (17) Paragraph (1) of section 613A(d) is amended by 
     redesignating subparagraphs (B), (C), and (D) as 
     subparagraphs (C), (D), and (E), respectively, and by 
     inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) any deduction allowable under section 199,''.
       (18) Subsection (e) of section 102 of the American Jobs 
     Creation Act of 2004 is amended to read as follows:
       ``(e) Effective Date.--
       ``(1) In general.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2004.
       ``(2) Application to pass-thru entities, etc.--In 
     determining the deduction under section 199 of the Internal 
     Revenue Code of 1986 (as added by this section), items 
     arising from a taxable year of a partnership, S corporation, 
     estate, or trust beginning before January 1, 2005, shall not 
     be taken into account for purposes of subsection (d)(1) of 
     such section.''.
       (b) Amendments Related to Section 231 of the Act.--
       (1) Clause (ii) of section 1361(c)(1)(A) is amended by 
     inserting ``(and their estates)'' after ``all members of the 
     family''.
       (2) Subparagraph (C) of section 1361(c)(1) is amended to 
     read as follows:
       ``(C) Effect of adoption, etc.--For purposes of this 
     paragraph, any legally adopted child of an individual, any 
     child who is lawfully placed with an individual for legal 
     adoption by the individual, and any eligible foster child of 
     an individual (within the meaning of section 152(f)(1)(C)), 
     shall be treated as a child of such individual by blood.''.
       (c) Amendment Related to Section 235 of the Act.--
     Subsection (b) of section 235 of the American Jobs Creation 
     Act of 2004 is amended by striking ``taxable years 
     beginning'' and inserting ``transfers''.
       (d) Amendments Related to Section 243 of the Act.--
       (1) Paragraph (7) of section 856(c) is amended to read as 
     follows:
       ``(7) Rules of application for failure to satisfy paragraph 
     (4).--
       ``(A) In general.--A corporation, trust, or association 
     that fails to meet the requirements of paragraph (4) (other 
     than a failure to meet the requirements of paragraph 
     (4)(B)(iii) which is described in subparagraph (B)(i) of this 
     paragraph) for a particular quarter shall nevertheless be 
     considered to have satisfied the requirements of such 
     paragraph for such quarter if--
       ``(i) following the corporation, trust, or association's 
     identification of the failure to satisfy the requirements of 
     such paragraph for a particular quarter, a description of 
     each asset that causes the corporation, trust, or association 
     to fail to satisfy the requirements of such paragraph at the 
     close of such quarter of any taxable year is set forth in a 
     schedule for such quarter filed in accordance with 
     regulations prescribed by the Secretary,

[[Page 16851]]

       ``(ii) the failure to meet the requirements of such 
     paragraph for a particular quarter is due to reasonable cause 
     and not due to willful neglect, and
       ``(iii)(I) the corporation, trust, or association disposes 
     of the assets set forth on the schedule specified in clause 
     (i) within 6 months after the last day of the quarter in 
     which the corporation, trust or association's identification 
     of the failure to satisfy the requirements of such paragraph 
     occurred or such other time period prescribed by the 
     Secretary and in the manner prescribed by the Secretary, or
       ``(II) the requirements of such paragraph are otherwise met 
     within the time period specified in subclause (I).
       ``(B) Rule for certain de minimis failures.--A corporation, 
     trust, or association that fails to meet the requirements of 
     paragraph (4)(B)(iii) for a particular quarter shall 
     nevertheless be considered to have satisfied the requirements 
     of such paragraph for such quarter if--
       ``(i) such failure is due to the ownership of assets the 
     total value of which does not exceed the lesser of--

       ``(I) 1 percent of the total value of the trust's assets at 
     the end of the quarter for which such measurement is done, 
     and
       ``(II) $10,000,000, and

       ``(ii)(I) the corporation, trust, or association, following 
     the identification of such failure, disposes of assets in 
     order to meet the requirements of such paragraph within 6 
     months after the last day of the quarter in which the 
     corporation, trust or association's identification of the 
     failure to satisfy the requirements of such paragraph 
     occurred or such other time period prescribed by the 
     Secretary and in the manner prescribed by the Secretary, or
       ``(II) the requirements of such paragraph are otherwise met 
     within the time period specified in subclause (I).
       ``(C) Tax.--
       ``(i) Tax imposed.--If subparagraph (A) applies to a 
     corporation, trust, or association for any taxable year, 
     there is hereby imposed on such corporation, trust, or 
     association a tax in an amount equal to the greater of--

       ``(I) $50,000, or
       ``(II) the amount determined (pursuant to regulations 
     promulgated by the Secretary) by multiplying the net income 
     generated by the assets described in the schedule specified 
     in subparagraph (A)(i) for the period specified in clause 
     (ii) by the highest rate of tax specified in section 11.

       ``(ii) Period.--For purposes of clause (i)(II), the period 
     described in this clause is the period beginning on the first 
     date that the failure to satisfy the requirements of such 
     paragraph (4) occurs as a result of the ownership of such 
     assets and ending on the earlier of the date on which the 
     trust disposes of such assets or the end of the first quarter 
     when there is no longer a failure to satisfy such paragraph 
     (4).
       ``(iii) Administrative provisions.--For purposes of 
     subtitle F, the taxes imposed by this subparagraph shall be 
     treated as excise taxes with respect to which the deficiency 
     procedures of such subtitle apply.''.
       (2) Subsection (m) of section 856 is amended by adding at 
     the end the following new paragraph:
       ``(6) Transition rule.--
       ``(A) In general.--Notwithstanding paragraph (2)(C), 
     securities held by a trust shall not be considered securities 
     held by the trust for purposes of subsection 
     (c)(4)(B)(iii)(III) if such securities--
       ``(i) were held by such trust on October 22, 2004, and 
     continuously thereafter, and
       ``(ii) would not be taken into account for purposes of such 
     subsection by reason of paragraph (7)(C) of subsection (c) 
     (as in effect on October 22, 2004) if the amendments made by 
     section 243 of the American Jobs Creation Act of 2004 had 
     never been enacted.
       ``(B) Rule not to apply to securities held after maturity 
     date.--Subparagraph (A) shall not apply with respect to any 
     security after the latest maturity date under the contract 
     (as in effect on October 22, 2004) taking into account any 
     renewal or extension permitted under the contract if such 
     renewal or extension does not significantly modify any other 
     terms of the contract.
       ``(C) Successors.--If the successor of a trust to which 
     this paragraph applies acquires securities in a transaction 
     to which section 381 applies, such trusts shall be treated as 
     a single entity for purposes of determining the holding 
     period of such securities under subparagraph (A)(i).''.
       (3) Subparagraph (E) of section 857(b)(2) is amended by 
     striking ``section 856(c)(7)(B)(iii), and section 
     856(g)(1).'' and inserting ``section 856(c)(7)(C), and 
     section 856(g)(5)''.
       (4) Subsection (g) of section 243 of the American Jobs 
     Creation Act of 2004 is amended to read as follows:
       ``(g) Effective Dates.--
       ``(1) Subsections (a) and (b).--The amendments made by 
     subsections (a) and (b) shall apply to taxable years 
     beginning after December 31, 2000.
       ``(2) Subsections (c) and (e).--The amendments made by 
     subsections (c) and (e) shall apply to taxable years 
     beginning after the date of the enactment of this Act.
       ``(3) Subsection (d).--The amendment made by subsection (d) 
     shall apply to transactions entered into after December 31, 
     2004.
       ``(4) Subsection (f).--
       ``(A) The amendment made by paragraph (1) of subsection (f) 
     shall apply to failures with respect to which the 
     requirements of subparagraph (A) or (B) of section 856(c)(7) 
     of the Internal Revenue Code of 1986 (as added by such 
     paragraph) are satisfied after the date of the enactment of 
     this Act.
       ``(B) The amendment made by paragraph (2) of subsection (f) 
     shall apply to failures with respect to which the 
     requirements of paragraph (6) of section 856(c) of the 
     Internal Revenue Code of 1986 (as amended by such paragraph) 
     are satisfied after the date of the enactment of this Act.
       ``(C) The amendments made by paragraph (3) of subsection 
     (f) shall apply to failures with respect to which the 
     requirements of paragraph (5) of section 856(g) of the 
     Internal Revenue Code of 1986 (as added by such paragraph) 
     are satisfied after the date of the enactment of this Act.
       ``(D) The amendment made by paragraph (4) of subsection (f) 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.
       ``(E) The amendments made by paragraph (5) of subsection 
     (f) shall apply to statements filed after the date of the 
     enactment of this Act.''.
       (e) Amendments Related to Section 244 of the Act.--
       (1) Paragraph (2) of section 181(d) is amended by striking 
     the last sentence in subparagraph (A), by redesignating 
     subparagraph (B) as subparagraph (C), and by inserting after 
     subparagraph (A) the following new subparagraph:
       ``(B) Special rules for television series.--In the case of 
     a television series--
       ``(i) each episode of such series shall be treated as a 
     separate production, and
       ``(ii) only the first 44 episodes of such series shall be 
     taken into account.''.
       (2) Subparagraph (C) of section 1245(a)(2) is amended by 
     inserting ``181,'' after ``179B,''.
       (f) Amendment Related to Section 245 of the Act.--
     Subsection (b) of section 45G is amended to read as follows:
       ``(b) Limitation.--The credit allowed under subsection (a) 
     for any taxable year shall not exceed the product of--
       ``(1) $3,500, and
       ``(2) the sum of--
       ``(A) the number of miles of railroad track owned or leased 
     by the eligible taxpayer as of the close of the taxable year, 
     and
       ``(B) the number of miles of railroad track assigned for 
     purposes of this subsection to the eligible taxpayer by a 
     Class II or Class III railroad which owns or leases such 
     railroad track as of the close of the taxable year.
     Any mile which is assigned by a taxpayer under paragraph 
     (2)(B) may not be taken into account by such taxpayer under 
     paragraph (2)(A).''.
       (g) Amendments Related to Section 248 of the Act.--
       (1) Subsection (c) of section 1356 is amended--
       (A) by striking paragraph (3), and
       (B) by adding at the end of paragraph (2) the following new 
     flush sentence:
       ``Such term shall not include any core qualifying 
     activities.''.
       (2) The last sentence of section 1354(b) is amended by 
     inserting ``on or'' after ``only if made''.
       (h) Amendment Related to Section 301 of the Act.--Section 
     6427 is amended by striking subsection (f).
       (i) Amendment Related to Section 314 of the Act.--Paragraph 
     (2) of section 55(c) is amended by striking ``regular tax'' 
     and inserting ``regular tax liability''.
       (j) Amendments Related to Section 322 of the Act.--
       (1) Subparagraph (C) of section 49(a)(1) is amended by 
     inserting ``and'' at the end of clause (i), by striking 
     ``and'' at the end of clause (ii), and by striking clause 
     (iii).
       (2)(A) Subparagraph (B) of section 194(b)(1) is amended to 
     read as follows:
       ``(B) Dollar limitation.--The aggregate amount of 
     reforestation expenditures which may be taken into account 
     under subparagraph (A) with respect to each qualified timber 
     property for any taxable year shall not exceed--
       ``(i) except as provided in clause (ii) or (iii), $10,000,
       ``(ii) in the case of a separate return by a married 
     individual (as defined in section 7703), $5,000, and
       ``(iii) in the case of a trust, zero.''.
       (B) Paragraph (4) of section 194(c) is amended to read as 
     follows:
       ``(4) Treatment of trusts and estates.--The aggregate 
     amount of reforestation expenditures incurred by any trust or 
     estate shall be apportioned between the income beneficiaries 
     and the fiduciary under regulations prescribed by the 
     Secretary. Any amount so apportioned to a beneficiary shall 
     be taken into account as expenditures incurred by such 
     beneficiary in applying this section to such beneficiary.''.
       (3) Subparagraph (C) of section 1245(a)(2) is amended by 
     striking ``or 193'' and inserting ``193, or 194''.
       (k) Amendments Related to Section 336 of the Act.--
       (1) Clause (iv) of section 168(k)(2)(A) is amended by 
     striking ``subparagraphs (B) and (C)'' and inserting 
     ``subparagraph (B) or (C)''.

[[Page 16852]]

       (2) Clause (iii) of section 168(k)(4)(B) is amended by 
     striking ``and paragraph (2)(C)'' and inserting ``or 
     paragraph (2)(C) (as so modified)''.
       (l) Amendment Related to Section 402 of the Act.--Paragraph 
     (2) of section 904(g) is amended to read as follows:
       ``(2) Overall domestic loss.--For purposes of this 
     subsection--
       ``(A) In general.--The term `overall domestic loss' means--
       ``(i) with respect to any qualified taxable year, the 
     domestic loss for such taxable year to the extent such loss 
     offsets taxable income from sources without the United States 
     for the taxable year or for any preceding qualified taxable 
     year by reason of a carryback, and
       ``(ii) with respect to any other taxable year, the domestic 
     loss for such taxable year to the extent such loss offsets 
     taxable income from sources without the United States for any 
     preceding qualified taxable year by reason of a carryback.
       ``(B) Domestic loss.--For purposes of subparagraph (A), the 
     term `domestic loss' means the amount by which the gross 
     income for the taxable year from sources within the United 
     States is exceeded by the sum of the deductions properly 
     apportioned or allocated thereto (determined without regard 
     to any carryback from a subsequent taxable year).
       ``(C) Qualified taxable year.--For purposes of subparagraph 
     (A), the term `qualified taxable year' means any taxable year 
     for which the taxpayer chose the benefits of this subpart.''.
       (m) Amendment Related to Section 403 of the Act.--Section 
     403 of the American Jobs Creation Act of 2004 is amended by 
     adding at the end the following new subsection:
       ``(d) Transition Rule.--If the taxpayer elects (at such 
     time and in such form and manner as the Secretary of the 
     Treasury may prescribe) to have the rules of this subsection 
     apply--
       ``(1) the amendments made by this section shall not apply 
     to taxable years beginning after December 31, 2002, and 
     before January 1, 2005, and
       ``(2) in the case of taxable years beginning after December 
     31, 2004, clause (iv) of section 904(d)(4)(C) of the Internal 
     Revenue Code of 1986 (as amended by this section) shall be 
     applied by substituting `January 1, 2005' for `January 1, 
     2003' both places it appears.''.
       (n) Amendments Related to Section 413 of the Act.--
       (1) Subsection (b) of section 532 is amended by striking 
     paragraph (2) and redesignating paragraphs (3) and (4) as 
     paragraphs (2) and (3), respectively.
       (2) Subsection (b) of section 535 is amended by adding at 
     the end the following new paragraph:
       ``(10) Controlled foreign corporations.--There shall be 
     allowed as a deduction the amount of the corporation's income 
     for the taxable year which is included in the gross income of 
     a United States shareholder under section 951(a). In the case 
     of any corporation the accumulated taxable income of which 
     would (but for this sentence) be determined without allowance 
     of any deductions, the deduction under this paragraph shall 
     be allowed and shall be appropriately adjusted to take into 
     account any deductions which reduced such inclusion.''.
       (o) Amendment Related to Section 415 of the Act.--
     Subparagraph (D) of section 904(d)(2) is amended by inserting 
     ``as in effect before its repeal'' after ``section 954(f)''.
       (p) Amendments Related to Section 418 of the Act.--
       (1) The second sentence of section 897(h)(1) is amended--
       (A) by striking ``any distribution'' and all that follows 
     through ``any class of stock'' and inserting ``any 
     distribution by a real estate investment trust with respect 
     to any class of stock'', and
       (B) by striking ``the taxable year'' and inserting ``the 1-
     year period ending on the date of the distribution''.
       (2) Subsection (c) of section 418 of the American Jobs 
     Creation Act of 2004 is amended by striking ``taxable years 
     beginning after the date of the enactment of this Act'' and 
     inserting ``any distribution by a real estate investment 
     trust which is treated as a deduction for a taxable year of 
     such trust beginning after the date of the enactment of this 
     Act''.
       (q) Amendments Related to Section 422 of the Act.--
       (1) Subparagraph (B) of section 965(a)(2) is amended by 
     inserting ``from another controlled foreign corporation in 
     such chain of ownership'' before ``, but only to the 
     extent''.
       (2) Subparagraph (A) of section 965(b)(2) is amended by 
     inserting ``cash'' before ``dividends''.
       (3) Paragraph (3) of section 965(b) is amended by adding at 
     the end the following: ``The Secretary may prescribe such 
     regulations as may be necessary or appropriate to prevent the 
     avoidance of the purposes of this paragraph, including 
     regulations which provide that cash dividends shall not be 
     taken into account under subsection (a) to the extent such 
     dividends are attributable to the direct or indirect transfer 
     (including through the use of intervening entities or capital 
     contributions) of cash or other property from a related 
     person (as so defined) to a controlled foreign 
     corporation.''.
       (4) Paragraph (1) of section 965(c) is amended to read as 
     follows:
       ``(1) Applicable financial statement.--The term `applicable 
     financial statement' means--
       ``(A) with respect to a United States shareholder which is 
     required to file a financial statement with the Securities 
     and Exchange Commission (or which is included in such a 
     statement so filed by another person), the most recent 
     audited annual financial statement (including the notes which 
     form an integral part of such statement) of such shareholder 
     (or which includes such shareholder)--
       ``(i) which was so filed on or before June 30, 2003, and
       ``(ii) which was certified on or before June 30, 2003, as 
     being prepared in accordance with generally accepted 
     accounting principles, and
       ``(B) with respect to any other United States shareholder, 
     the most recent audited financial statement (including the 
     notes which form an integral part of such statement) of such 
     shareholder (or which includes such shareholder)--
       ``(i) which was certified on or before June 30, 2003, as 
     being prepared in accordance with generally accepted 
     accounting principles, and
       ``(ii) which is used for the purposes of a statement or 
     report--

       ``(I) to creditors,
       ``(II) to shareholders, or
       ``(III) for any other substantial nontax purpose.''.

       (5) Paragraph (2) of section 965(d) is amended by striking 
     ``properly allocated and apportioned'' and inserting 
     ``directly allocable''.
       (6) Subsection (d) of section 965 is amended by adding at 
     the end the following new paragraph:
       ``(4) Coordination with section 78.--Section 78 shall not 
     apply to any tax which is not allowable as a credit under 
     section 901 by reason of this subsection.''.
       (7) The last sentence of section 965(e)(1) is amended by 
     inserting ``which are imposed by foreign countries and 
     possessions of the United States and are'' after ``taxes''.
       (8) Subsection (f) of section 965 is amended by inserting 
     ``on or'' before ``before the due date''.
       (r) Amendments Related to Section 501 of the Act.--
       (1) Subparagraph (A) of section 164(b)(5) is amended to 
     read as follows:
       ``(A) Election to deduct state and local sales taxes in 
     lieu of state and local income taxes.--At the election of the 
     taxpayer for the taxable year, subsection (a) shall be 
     applied--
       ``(i) without regard to the reference to State and local 
     income taxes, and
       ``(ii) as if State and local general sales taxes were 
     referred to in a paragraph thereof.''.
       (2) Clause (ii) of section 56(b)(1)(A) is amended by 
     inserting ``or clause (ii) of section 164(b)(5)(A)'' before 
     the period at the end.
       (s) Amendments Related to Section 708 of the Act.--Section 
     708 of the American Jobs Creation Act of 2004 is amended--
       (1) in subsection (a), by striking ``contract commencement 
     date'' and inserting ``construction commencement date'', and
       (2) by redesignating subsection (d) as subsection (e) and 
     inserting after subsection (c) the following new subsection:
       ``(d) Certain Adjustments Not to Apply.--Section 481 of the 
     Internal Revenue Code of 1986 shall not apply with respect to 
     any change in the method of accounting which is required by 
     this section.''.
       (t) Amendments Related to Section 710 of the Act.--
       (1) Clause (ii) of section 45(b)(4)(B) is amended by 
     striking ``the date of the enactment of this Act'' and 
     inserting ``January 1, 2005,''.
       (2) Clause (ii) of section 45(c)(3)(A) is amended by 
     inserting ``or any nonhazardous lignin waste material'' after 
     ``cellulosic waste material''.
       (3) Subsection (e) of section 45 is amended by striking 
     paragraph (6).
       (4)(A) Paragraph (9) of section 45(e) is amended to read as 
     follows:
       ``(9) Coordination with credit for producing fuel from a 
     nonconventional source.--
       ``(A) In general.--The term `qualified facility' shall not 
     include any facility which produces electricity from gas 
     derived from the biodegradation of municipal solid waste if 
     such biodegradation occurred in a facility (within the 
     meaning of section 29) the production from which is allowed 
     as a credit under section 29 for the taxable year or any 
     prior taxable year.
       ``(B) Refined coal facilities.--The term `refined coal 
     production facility' shall not include any facility the 
     production from which is allowed as a credit under section 29 
     for the taxable year or any prior taxable year.''.
       (B) Subparagraph (C) of section 45(e)(8) is amended by 
     striking ``and (9)''.
       (5) Subclause (I) of section 168(e)(3)(B)(vi) is amended to 
     read as follows:

       ``(I) is described in subparagraph (A) of section 48(a)(3) 
     (or would be so described if `solar and wind' were 
     substituted for `solar' in clause (i) thereof and the last 
     sentence of such section did not apply to such 
     subparagraph),''.

[[Page 16853]]

       (6) Paragraph (4) of section 710(g) of the American Jobs 
     Creation Act of 2004 is amended by striking ``January 1, 
     2004'' and inserting ``January 1, 2005''.
       (u) Amendment Related to Section 801 of the Act.--Paragraph 
     (3) of section 7874(a) is amended to read as follows:
       ``(3) Coordination with subsection (b).--A corporation 
     which is treated as a domestic corporation under subsection 
     (b) shall not be treated as a surrogate foreign corporation 
     for purposes of paragraph (2)(A).''.
       (v) Amendments Related to Section 804 of the Act.--
       (1) Subparagraph (C) of section 877(g)(2) is amended by 
     striking ``section 7701(b)(3)(D)(ii)'' and inserting 
     ``section 7701(b)(3)(D)''.
       (2) Subsection (n) of section 7701 is amended to read as 
     follows:
       ``(n) Special Rules for Determining When an Individual Is 
     No Longer a United States Citizen or Long-term Resident.--For 
     purposes of this chapter--
       ``(1) United states citizens.--An individual who would (but 
     for this paragraph) cease to be treated as a citizen of the 
     United States shall continue to be treated as a citizen of 
     the United States until such individual--
       ``(A) gives notice of an expatriating act (with the 
     requisite intent to relinquish citizenship) to the Secretary 
     of State, and
       ``(B) provides a statement in accordance with section 6039G 
     (if such a statement is otherwise required).
       ``(2) Long-term residents.--A long-term resident (as 
     defined in section 877(e)(2)) who would (but for this 
     paragraph) be described in section 877(e)(1) shall be treated 
     as a lawful permanent resident of the United States and as 
     not described in section 877(e)(1) until such individual--
       ``(A) gives notice of termination of residency (with the 
     requisite intent to terminate residency) to the Secretary of 
     Homeland Security, and
       ``(B) provides a statement in accordance with section 6039G 
     (if such a statement is otherwise required).''.
       (w) Amendment Related to Section 811 of the Act.--
     Subsection (c) of section 811 of the American Jobs Creation 
     Act of 2004 is amended by inserting ``and which were not 
     filed before such date'' before the period at the end.
       (x) Amendments Related to Section 812 of the Act.--
       (1) Subsection (b) of section 6662 is amended by adding at 
     the end the following new sentence: ``Except as provided in 
     paragraph (1) or (2)(B) of section 6662A(e), this section 
     shall not apply to the portion of any underpayment which is 
     attributable to a reportable transaction understatement on 
     which a penalty is imposed under section 6662A.''
       (2) Paragraph (2) of section 6662A(e) is amended to read as 
     follows:
       ``(2) Coordination with other penalties.--
       ``(A) Coordination with fraud penalty.--This section shall 
     not apply to any portion of an understatement on which a 
     penalty is imposed under section 6663.
       ``(B) Coordination with gross valuation misstatement 
     penalty.--This section shall not apply to any portion of an 
     understatement on which a penalty is imposed under section 
     6662 if the rate of the penalty is determined under section 
     6662(h).''.
       (3) Subsection (f) of section 812 of the American Jobs 
     Creation Act of 2004 is amended to read as follows:
       ``(f) Effective Dates.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     ending after the date of the enactment of this Act.
       ``(2) Disqualified opinions.--Section 6664(d)(3)(B) of the 
     Internal Revenue Code of 1986 (as added by subsection (c)) 
     shall not apply to the opinion of a tax advisor if--
       ``(A) the opinion was provided to the taxpayer before the 
     date of the enactment of this Act,
       ``(B) the opinion relates to one or more transactions all 
     of which were entered into before such date, and
       ``(C) the tax treatment of items relating to each such 
     transaction was included on a return or statement filed by 
     the taxpayer before such date.''.
       (y) Amendment Related to Section 814 of the Act.--
     Subparagraph (B) of section 6501(a)(10) is amended by 
     striking ``(as defined in section 6111)''.
       (z) Amendment Related to Section 815 of the Act.--Paragraph 
     (1) of section 6112(b) is amended ``(or was required to 
     maintain a list under subsection (a) as in effect before the 
     enactment of the American Jobs Creation Act of 2004)'' after 
     ``a list under subsection (a)''.
       (aa) Amendments Related to Section 832 of the Act.--
       (1) Subsection (e) of section 853 is amended to read as 
     follows:
       ``(e) Treatment of Certain Taxes Not Allowed as a Credit 
     Under Section 901.--This section shall not apply to any tax 
     with respect to which the regulated investment company is not 
     allowed a credit under section 901 by reason of subsection 
     (k) or (l) of such section.''.
       (2) Clause (i) of section 901(l)(2)(C) is amended by 
     striking ``if such security were stock''.
       (bb) Amendments Related to Section 833 of the Act.--
       (1) Subsection (a) of section 734 is amended by inserting 
     ``with respect to such distribution'' before the period at 
     the end.
       (2) So much of subsection (b) of section 734 as precedes 
     paragraph (1) is amended to read as follows:
       ``(b) Method of Adjustment.--In the case of a distribution 
     of property to a partner by a partnership with respect to 
     which the election provided in section 754 is in effect or 
     with respect to which there is a substantial basis reduction, 
     the partnership shall--''.
       (cc) Amendment Related to Section 835 of the Act.--
     Paragraph (3) of section 860G(a) is amended--
       (1) in subparagraph (A)(iii)(I), by striking ``the 
     obligation'' and inserting ``a reverse mortgage loan or other 
     obligation'', and
       (2) by striking all that follows subparagraph (C) and 
     inserting the following:
     ``For purposes of subparagraph (A), any obligation secured by 
     stock held by a person as a tenant-stockholder (as defined in 
     section 216) in a cooperative housing corporation (as so 
     defined) shall be treated as secured by an interest in real 
     property. For purposes of subparagraph (A), any obligation 
     originated by the United States or any State (or any 
     political subdivision, agency, or instrumentality of the 
     United States or any State) shall be treated as principally 
     secured by an interest in real property if more than 50 
     percent of such obligations which are transferred to, or 
     purchased by, the REMIC are principally secured by an 
     interest in real property (determined without regard to this 
     sentence).''.
       (dd) Amendments Related to Section 836 of the Act.--
       (1) Paragraph (1) of section 334(b) is amended by striking 
     ``except that'' and all that follows and inserting ``except 
     that, in the hands of such distributee--
       ``(A) the basis of such property shall be the fair market 
     value of the property at the time of the distribution in any 
     case in which gain or loss is recognized by the liquidating 
     corporation with respect to such property, and
       ``(B) the basis of any property described in section 
     362(e)(1)(B) shall be the fair market value of the property 
     at the time of the distribution in any case in which such 
     distributee's aggregate adjusted basis of such property would 
     (but for this subparagraph) exceed the fair market value of 
     such property immediately after such liquidation.''.
       (2) Clause (ii) of section 362(e)(2)(C) is amended to read 
     as follows:
       ``(ii) Election.--Any election under clause (i) shall be 
     made at such time and in such form and manner as the 
     Secretary may prescribe, and, once made, shall be 
     irrevocable.''.
       (ee) Amendment Related to Section 840 of the Act.--
     Subsection (d) of section 121 is amended--
       (1) by redesignating the paragraph (10) relating to 
     property acquired from a decedent as paragraph (11) and by 
     moving such paragraph to the end of such subsection, and
       (2) by amending the paragraph (10) relating to property 
     acquired in like-kind exchange to read as follows:
       ``(10) Property acquired in like-kind exchange.--If a 
     taxpayer acquires property in an exchange with respect to 
     which gain is not recognized (in whole or in part) to the 
     taxpayer under subsection (a) or (b) of section 1031, 
     subsection (a) shall not apply to the sale or exchange of 
     such property by such taxpayer (or by any person whose basis 
     in such property is determined, in whole or in part, by 
     reference to the basis in the hands of such taxpayer) during 
     the 5-year period beginning with the date of such 
     acquisition.''.
       (ff) Amendment Related to Section 849 of the Act.--
     Subsection (a) of section 849 of the American Jobs Creation 
     Act of 2004 is amended by inserting ``, and in the case of 
     property treated as tax-exempt use property other than by 
     reason of a lease, to property acquired after March 12, 
     2004'' before the period at the end.
       (gg) Amendments Related to Section 853 of the Act.--
       (1) Subparagraph (C) of section 4081(a)(2) is amended by 
     striking ``for use in commercial aviation'' and inserting 
     ``for use in commercial aviation by a person registered for 
     such use under section 4101''.
       (2) So much of paragraph (2) of section 4081(d) as precedes 
     subparagraph (A) is amended to read as follows:
       ``(2) Aviation fuels.--The rates of tax specified in 
     clauses (ii) and (iv) of subsection (a)(2)(A) shall be 4.3 
     cents per gallon--''.
       (hh) Amendment Related to Section 884 of the Act.--
     Subparagraph (B) of section 170(f)(12) is amended by adding 
     at the end the following new clauses:
       ``(v) Whether the donee organization provided any goods or 
     services in consideration, in whole or in part, for the 
     qualified vehicle.
       ``(vi) A description and good faith estimate of the value 
     of any goods or services referred to in clause (v) or, if 
     such goods or services consist solely of intangible religious 
     benefits (as defined in paragraph (8)(B)), a statement to 
     that effect.''.
       (ii) Amendments Related to Section 885 of the Act.--
       (1) Paragraph (2) of section 26(b) is amended by striking 
     ``and'' at the end of subparagraph (R), by striking the 
     period at the end

[[Page 16854]]

     of subparagraph (S) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(T) subsections (a)(1)(B)(i) and (b)(4)(A) of section 
     409A (relating to interest and additional tax with respect to 
     certain deferred compensation).''.
       (2) Clause (ii) of section 409A(a)(4)(C) is amended by 
     striking ``first''.
       (3)(A) Notwithstanding section 885(d)(1) of the American 
     Jobs Creation Act of 2004, subsection (b) of section 409A of 
     the Internal Revenue Code of 1986 shall take effect on 
     January 1, 2005.
       (B) Not later than 90 days after the date of the enactment 
     of this Act, the Secretary of the Treasury shall issue 
     guidance under which a nonqualified deferred compensation 
     plan which is in violation of the requirements of section 
     409A(b) of such Code shall be treated as not having violated 
     such requirements if such plan comes into conformance with 
     such requirements during such limited period as the Secretary 
     may specify in such guidance.
       (4) Subsection (f) of section 885 of the American Jobs 
     Creation Act of 2004 is amended by striking ``December 31, 
     2004'' the first place it appears and inserting ``January 1, 
     2005''.
       (jj) Amendments Related to Section 898 of the Act.--
       (1) Paragraph (3) of section 361(b) is amended by inserting 
     ``(reduced by the amount of the liabilities assumed (within 
     the meaning of section 357(c)))'' before the period at the 
     end.
       (2) Paragraph (1) of section 357(d) is amended by inserting 
     ``section 361(b)(3),'' after ``section 358(h),''.
       (kk) Amendment Related to Section 899 of the Act.--
     Subparagraph (A) of section 351(g)(3) is amended by adding at 
     the end the following: ``If there is not a real and 
     meaningful likelihood that dividends beyond any limitation or 
     preference will actually be paid, the possibility of such 
     payments will be disregarded in determining whether stock is 
     limited and preferred as to dividends.''.
       (ll) Amendment Related to Section 902 of the Act.--
     Paragraph (1) of section 709(b) is amended by striking 
     ``taxpayer'' both places it appears and inserting 
     ``partnership''.
       (mm) Amendment Related to Section 909 of the Act.--Clause 
     (ii) of section 451(i)(4)(B) is amended by striking ``the 
     close of the period applicable under subsection (a)(2)(B) as 
     extended under paragraph (2)'' and inserting ``December 31, 
     2006''.
       (nn) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     American Jobs Creation Act of 2004 to which they relate.

     SEC. 3. AMENDMENTS RELATED TO THE WORKING FAMILIES TAX RELIEF 
                   ACT OF 2004.

       (a) Amendment Related to Section 201 of the Act.--Paragraph 
     (2) of section 152(e) is amended to read as follows:
       ``(2) Requirements.--For purposes of paragraph (1), the 
     requirements described in this paragraph are met if--
       ``(A) a decree of divorce or separate maintenance or 
     written separation agreement between the parents applicable 
     to the taxable year beginning in such calendar year provides 
     that the noncustodial parent shall be entitled to any 
     deduction allowable under section 151 for such child, and in 
     the case of such a decree or agreement executed before 
     January 1, 1985, the noncustodial parent provides at least 
     $600 for the support of such child during such calendar year, 
     or
       ``(B) the custodial parent signs a written declaration (in 
     such manner and form as the Secretary may prescribe) that 
     such parent will not claim such child as a dependent for such 
     taxable year.
     For purposes of subparagraph (A), amounts expended for the 
     support of a child or children shall be treated as received 
     from the noncustodial parent to the extent that such parent 
     provided amounts for such support.''.
       (b) Amendment Related to Section 203 of the Act.--
     Subparagraph (B) of section 21(b)(1) is amended by inserting 
     ``(as defined in section 152, determined without regard to 
     subsections (b)(1), (b)(2), and (d)(1)(B))'' after 
     ``dependent of the taxpayer''.
       (c) Amendment Related to Section 207 of the Act.--
     Subparagraph (A) of section 223(d)(2) is amended by inserting 
     ``, determined without regard to subsections (b)(1), (b)(2), 
     and (d)(1)(B) thereof'' after ``section 152''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     Working Families Tax Relief Act of 2004 to which they relate.

     SEC. 4. AMENDMENTS RELATED TO THE JOBS AND GROWTH TAX RELIEF 
                   RECONCILIATION ACT OF 2003.

       (a) Amendments Related to Section 201 of the Act.--
       (1) Clause (ii) of section 168(k)(4)(B) is amended to read 
     as follows:
       ``(ii) which is--

       ``(I) acquired by the taxpayer after May 5, 2003, and 
     before January 1, 2005, but only if no written binding 
     contract for the acquisition was in effect before May 6, 
     2003, or
       ``(II) acquired by the taxpayer pursuant to a written 
     binding contract which was entered into after May 5, 2003, 
     and before January 1, 2005, and''.

       (2) Subparagraph (D) of section 1400L(b)(2) is amended by 
     striking ``September 11, 2004'' and inserting ``January 1, 
     2005''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 201 of the Jobs 
     and Growth Tax Relief and Reconciliation Act of 2003.

     SEC. 5. AMENDMENT RELATED TO THE VICTIMS OF TERRORISM TAX 
                   RELIEF ACT OF 2001.

       (a) Amendment Related to Section 201 of the Act.--Paragraph 
     (17) of section 6103(l) is amended by striking ``subsection 
     (f), (i)(7), or (p)'' and inserting ``subsection (f), (i)(8), 
     or (p)''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 201 of the 
     Victims of Terrorism Tax Relief Act of 2001.

     SEC. 6. AMENDMENT RELATED TO THE TRANSPORTATION EQUITY ACT 
                   FOR THE 21ST CENTURY.

       (a) Amendment Related to Section 9005 of the Act.--The last 
     sentence of paragraph (2) of section 9504(b) is amended by 
     striking ``subparagraph (B)'' and inserting ``subparagraph 
     (C)''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 9005 of the 
     Transportation Equity Act for the 21st Century.

     SEC. 7. AMENDMENTS RELATED TO THE TAXPAYER RELIEF ACT OF 
                   1997.

       (a) Amendments Related to Section 1055 of the Act.--
       (1) The last sentence of section 6411(a) is amended by 
     striking ``6611(f)(3)(B)'' and inserting ``6611(f)(4)(B)''.
       (2) Paragraph (4) of section 6601(d) is amended by striking 
     ``6611(f)(3)(A)'' and inserting ``6611(f)(4)(A)''.
       (b) Amendment Related to Section 1144 of the Act.--
     Subparagraph (B) of section 6038B(a)(1) is amended by 
     inserting ``or'' at the end.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     Taxpayer Relief Act of 1997 to which they relate.

     SEC. 8. CLERICAL CORRECTIONS.

       (a) Subparagraph (C) of section 2(b)(2) is amended by 
     striking ``subparagraph (C)'' and inserting ``subparagraph 
     (B)''.
       (b) Subparagraph (E) of section 26(b)(2) is amended by 
     striking ``section 530(d)(3)'' and inserting ``section 
     530(d)(4)''.
       (c)(1) Subclause (II) of section 38(c)(2)(A)(ii) is amended 
     by striking ``or the New York Liberty Zone business employee 
     credit or the specified credits'' and inserting ``, the New 
     York Liberty Zone business employee credit, and the specified 
     credits''.
       (2) Subclause (II) of section 38(c)(3)(A)(ii) is amended by 
     striking ``or the specified credits'' and inserting ``and the 
     specified credits''.
       (3) Subparagraph (B) of section 38(c)(4) is amended--
       (A) by striking ``includes'' and inserting ``means'', and
       (B) by inserting ``and'' at the end of clause (i).
       (d)(1) Subparagraph (A) of section 39(a)(1) is amended by 
     striking ``each of the 1 taxable years'' and by inserting 
     ``the taxable year''.
       (2) Subparagraph (B) of section 39(a)(3) is amended to read 
     as follows:
       ``(B) paragraph (1) shall be applied by substituting `each 
     of the 5 taxable years' for `the taxable year' in 
     subparagraph (A) thereof, and''.
       (e) Paragraph (5) of section 43(c) is amended to read as 
     follows:
       ``(5) Alaska natural gas.--For purposes of paragraph 
     (1)(D)--
       ``(A) In general.--The term `Alaska natural gas' means 
     natural gas entering the Alaska natural gas pipeline (as 
     defined in section 168(i)(16) (determined without regard to 
     subparagraph (B) thereof)) which is produced from a well--
       ``(i) located in the area of the State of Alaska lying 
     north of 64 degrees North latitude, determined by excluding 
     the area of the Alaska National Wildlife Refuge (including 
     the continental shelf thereof within the meaning of section 
     638(1)), and
       ``(ii) pursuant to the applicable State and Federal 
     pollution prevention, control, and permit requirements from 
     such area (including the continental shelf thereof within the 
     meaning of section 638(1)).
       ``(B) Natural gas.--The term `natural gas' has the meaning 
     given such term by section 613A(e)(2).''.
       (f) Paragraph (2) of section 45I(a) is amended by striking 
     ``qualified credit oil production'' and inserting ``qualified 
     crude oil production''.
       (g) Subparagraph (E) of section 50(a)(2) is amended by 
     striking ``section 48(a)(5)'' and inserting ``section 
     48(b)''.
       (h)(1) Subsection (a) of section 62 is amended--
       (A) by redesignating paragraph (19) (relating to costs 
     involving discrimination suits, etc.), as added by section 
     703 of the American Jobs Creation Act of 2004, as paragraph 
     (20), and
       (B) by moving such paragraph after paragraph (19) (relating 
     to health savings accounts).
       (2) Subsection (e) of section 62 is amended by striking 
     ``subsection (a)(19)'' and inserting ``subsection (a)(20)''.

[[Page 16855]]

       (i) Paragraph (3) of section 167(f) is amended by striking 
     ``section 197(e)(7)'' and inserting ``section 197(e)(6)''.
       (j) Subparagraph (D) of section 168(i)(15) is amended by 
     striking ``This paragraph shall not apply to'' and inserting 
     ``Such term shall not include''.
       (k) Paragraph (2) of section 221(d) is amended by striking 
     ``this Act'' and inserting ``the Taxpayer Relief Act of 
     1997''.
       (l) Paragraph (8) of section 318(b) is amended by striking 
     ``section 6038(d)(2)'' and inserting ``section 6038(e)(2)''.
       (m) Subparagraph (B) of section 332(d)(1) is amended by 
     striking ``distribution to which section 301 applies'' and 
     inserting ``distribution of property to which section 301 
     applies''.
       (n) Paragraph (1) of section 415(l) is amended by striking 
     ``individual medical account'' and inserting ``individual 
     medical benefit account''.
       (o) The matter following clause (iv) of section 
     415(n)(3)(C) is amended by striking ``clauses'' and inserting 
     ``clause''.
       (p) Paragraph (12) of section 501(c) is amended--
       (1) by striking ``subparagraph (C)(iii)'' in subparagraph 
     (F) and inserting ``subparagraph (C)(iv)'', and
       (2) by striking ``subparagraph (C)(iv)'' in subparagraph 
     (G) and inserting ``subparagraph (C)(v)''.
       (q) Clause (ii) of section 501(c)(22)(B) is amended by 
     striking ``clause (ii) of paragraph (21)(B)'' and inserting 
     ``clause (ii) of paragraph (21)(D)''.
       (r) Paragraph (1) of section 512(b) is amended by striking 
     ``section 512(a)(5)'' and inserting ``subsection (a)(5)''.
       (s)(1) Subsection (b) of section 512 is amended--
       (A) by redesignating paragraph (18) (relating to the 
     treatment of gain or loss on sale or exchange of certain 
     brownfield sites), as added by section 702 of the American 
     Jobs Creation Act of 2004, as paragraph (19), and
       (B) by moving such paragraph to the end of such subsection.
       (2) Subparagraph (E) of section 514(b)(1) is amended by 
     striking ``section 512(b)(18)'' and inserting ``section 
     512(b)(19)''.
       (t)(1) Subsection (b) of section 530 is amended by striking 
     paragraph (3) and by redesignating paragraphs (4) and (5) as 
     paragraphs (3) and (4), respectively.
       (2) Clause (ii) of section 530(b)(2)(A) is amended by 
     striking ``paragraph (4)'' and inserting ``paragraph (3)''.
       (u) Section 881(e)(1)(C) is amended by inserting 
     ``interest-related dividend received by a controlled foreign 
     corporation'' after ``shall apply to any''.
       (v) Clause (i) of section 954(c)(1)(C) is amended by 
     striking ``paragraph (4)(A)'' and inserting ``paragraph 
     (5)(A)''.
       (w) Subparagraph (F) of section 954(c)(1) is amended by 
     striking ``Net income from notional principal contracts.'' 
     after ``Income from notional principal contracts.--''.
       (x) Paragraph (23) of section 1016(a) is amended by 
     striking ``1045(b)(4)'' and inserting ``1045(b)(3)''.
       (y) Paragraph (1) of section 1256(f) is amended by striking 
     ``subsection (e)(2)(C)'' and inserting ``subsection (e)(2)''.
       (z) The matter preceding clause (i) of section 
     1031(h)(2)(B) is amended by striking ``subparagraph'' and 
     inserting ``subparagraphs''.
       (aa) Paragraphs (1) and (2) of section 1375(d) are each 
     amended by striking ``subchapter C'' and inserting 
     ``accumulated''.
       (bb) Each of the following provisions are amended by 
     striking ``General Accounting Office'' each place it appears 
     therein and inserting ``Government Accountability Office'':
       (1) Clause (ii) of section 1400E(c)(4)(A).
       (2) Paragraph (1) of section 6050M(b).
       (3) Subparagraphs (A), (B)(i), and (B)(ii) of section 
     6103(i)(8).
       (4) Paragraphs (3)(C)(i), (4), (5), and (6)(B) of section 
     6103(p).
       (5) Subsection (e) of section 8021.
       (cc)(1) Clause (ii) of section 1400L(b)(2)(C) is amended by 
     striking ``section 168(k)(2)(C)(i)'' and inserting ``section 
     168(k)(2)(D)(i)''.
       (2) Clause (iv) of section 1400L(b)(2)(C) is amended by 
     striking ``section 168(k)(2)(C)(iii)'' and inserting 
     ``section 168(k)(2)(D)(iii)''.
       (3) Subparagraph (D) of section 1400L(b)(2) is amended by 
     striking ``section 168(k)(2)(D)'' and inserting ``section 
     168(k)(2)(E)''.
       (4) Subparagraph (E) of section 1400L(b)(2) is amended by 
     striking ``section 168(k)(2)(F)'' and inserting ``section 
     168(k)(2)(G)''.
       (5) Paragraph (5) of section 1400L(c) is amended by 
     striking ``section 168(k)(2)(C)(iii)'' and inserting 
     ``section 168(k)(2)(D)(iii)''.
       (dd) Section 3401 is amended by redesignating subsection 
     (h) as subsection (g).
       (ee) Paragraph (2) of section 4161(a) is amended to read as 
     follows:
       ``(2) 3 percent rate of tax for electric outboard motors.--
     In the case of an electric outboard motor, paragraph (1) 
     shall be applied by substituting `3 percent' for `10 
     percent'.''.
       (ff) Subparagraph (C) of section 4261(e)(4) is amended by 
     striking ``imposed subsection (b)'' and inserting ``imposed 
     by subsection (b)''.
       (gg) Subsection (a) of section 4980D is amended by striking 
     ``plans'' and inserting ``plan''.
       (hh) The matter following clause (iii) of section 
     6045(e)(5)(A) is amended by striking ``for `$250,000'.'' and 
     all that follows through ``to the Treasury.'' and inserting 
     ``for `$250,000'. The Secretary may by regulation increase 
     the dollar amounts under this subparagraph if the Secretary 
     determines that such an increase will not materially reduce 
     revenues to the Treasury.''.
       (ii) Subsection (p) of section 6103 is amended--
       (1) by striking so much of paragraph (4) as precedes 
     subparagraph (A) and inserting the following:
       ``(4) Safeguards.--Any Federal agency described in 
     subsection (h)(2), (h)(5), (i)(1), (2), (3), (5), or (7), 
     (j)(1), (2), or (5), (k)(8), (l)(1), (2), (3), (5), (10), 
     (11), (13), (14), or (17) or (o)(1), the Government 
     Accountability Office, the Congressional Budget Office, or 
     any agency, body, or commission described in subsection (d), 
     (i)(3)(B)(i) or 7(A)(ii), or (l)(6), (7), (8), (9), (12), 
     (15), or (16) or any other person described in subsection 
     (l)(16), (18), (19), or (20) shall, as a condition for 
     receiving returns or return information--'',
       (2) by amending paragraph (4)(F)(i) to read as follows:
       ``(i) in the case of an agency, body, or commission 
     described in subsection (d), (i)(3)(B)(i), or (l)(6), (7), 
     (8), (9), or (16), or any other person described in 
     subsection (l)(16), (18), (19), or (20) return to the 
     Secretary such returns or return information (along with any 
     copies made therefrom) or make such returns or return 
     information undisclosable in any manner and furnish a written 
     report to the Secretary describing such manner,'', and
       (3) by striking the first full sentence in the matter 
     following subparagraph (F) of paragraph (4) and inserting the 
     following: ``If the Secretary determines that any such 
     agency, body, or commission, including an agency or any other 
     person described in subsection (l)(16), (18), (19), or (20), 
     or the Government Accountability Office or the Congressional 
     Budget Office, has failed to, or does not, meet the 
     requirements of this paragraph, he may, after any proceedings 
     for review established under paragraph (7), take such actions 
     as are necessary to ensure such requirements are met, 
     including refusing to disclose returns or return information 
     to such agency, body, or commission, including an agency or 
     any other person described in subsection (l)(16), (18), (19), 
     or (20), or the Government Accountability Office or the 
     Congressional Budget Office, until he determines that such 
     requirements have been or will be met.''.
       (jj) Clause (ii) of section 6111(b)(1)(A) is amended by 
     striking ``advice or assistance'' and inserting ``aid, 
     assistance, or advice''.
       (kk) Section 6427 is amended by striking subsection (o) and 
     by redesignating subsection (p) as subsection (o).
       (ll) Paragraph (3) of section 6662(d) is amended by 
     striking ``the'' before ``1 or more''.

     SEC. 9. OTHER CORRECTIONS RELATED TO THE AMERICAN JOBS 
                   CREATION ACT OF 2004.

       (a) Amendments Related to Section 233 of the Act.--
       (1) Clause (vi) of section 1361(c)(2)(A) is amended--
       (A) by inserting ``or a depository institution holding 
     company (as defined in section 3(w)(1) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1813(w)(1))'' after ``a bank (as 
     defined in section 581)'', and
       (B) by inserting ``or company'' after ``such bank''.
       (2) Paragraph (16) of section 4975(d) is amended--
       (A) in subparagraph (A), by inserting ``or a depository 
     institution holding company (as defined in section 3(w)(1) of 
     the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1))'' 
     after ``a bank (as defined in section 581)'', and
       (B) in subparagraph (C), by inserting ``or company'' after 
     ``such bank''.
       (b) Amendment Related to Section 237 of the Act.--
     Subparagraph (F) of section 1362(d)(3) is amended by striking 
     ``a bank holding company'' and all that follows through 
     ``section 2(p) of such Act)'' and inserting ``a depository 
     institution holding company (as defined in section 3(w)(1) of 
     the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1))''.
       (c) Amendments Related to Section 239 of the Act.--
     Paragraph (3) of section 1361(b) is amended--
       (1) in subparagraph (A), by striking ``and in the case of 
     information returns required under part III of subchapter A 
     of chapter 61'', and
       (2) by adding at the end the following new subparagraph:
       ``(E) Information returns.--Except to the extent provided 
     by the Secretary, this paragraph shall not apply to 
     information returns made by a qualified subchapter S 
     subsidiary under part III of subchapter A of chapter 61.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     American Jobs Creation Act of 2004 to which they relate.
                                 ______
                                 
      By Mr. DURBIN (for himself and Mrs. Boxer):
  S. 1448. A bill to improve the treatment provided to veterans 
suffering

[[Page 16856]]

from post-traumatic stress disorder; to the Committee on Veterans' 
Affairs.
  Mr. DURBIN. Mr. President, seventy-five years ago today, President 
Herbert Hoover created the Veterans Administration by signing Executive 
Order 5398 for the ``Consolidation and Coordination of Governmental 
Activities Affecting Veterans.''
  Of course, the commitment of America to the care and welfare of the 
Nation's veterans goes back to the earliest days of our Republic. In 
1789 George Washington said, ``The willingness with which our young 
people are likely to serve in any war, no matter how justified, shall 
be directly proportional as to how they perceive the Veterans of 
earlier wars were treated and appreciated by their country.''
  The care of veterans was a central theme in Abraham Lincoln's second 
inaugural address. He said, ``With malice toward none; with charity for 
all; with firmness in the right, as God gives us to see the right, let 
us strive on to finish the work we are in; to bind up the nation's 
wounds; to care for him who shall have borne the battle, and for his 
widow, and his orphan--to do all which may achieve and cherish a just, 
and a lasting peace, among ourselves, and with all nations.''
  Today, this important work of caring for our veterans is carried on 
by the Department of Veterans Affairs at a time when American troops 
are engaged in combat under very trying circumstances overseas.
  In order to address the clearly emerging needs of the newest 
veterans, I am today introducing the ``Post-Traumatic Stress Disorder 
Treatment Improvement Act.''
  This bill requires the Department of Veterans Affairs to hire the 
number of mental health professionals which the Department's own 
internal panel of experts has for years recommended as that required to 
provide an appropriate level of treatment for veterans suffering from 
post-traumatic stress disorder or PTSD.
  PTSD is a fairly new term but it is by no means a new problem. People 
exposed to extremely traumatic stressful events can suffer lasting and 
long-term mental health problems as a result. Soldiers who have endured 
the horrors--of the battlefield--who've experienced and had to 
participate in deeply troubling events--have long been susceptible to 
this problem. Among Civil War veterans it was called ``the soldier's 
heart.'' Among World War I veterans it was called ``shell shock.'' In 
World War II it was called ``battle fatigue.'' Many people will 
remember the incident during World War II in which General George 
Patton slapped a soldier hospitalized with battle fatigue. The American 
public reacted angrily to Patton's action because they understood that 
Patton was wrong; needing medical treatment to help recover from the 
psychological trauma of war was not any sign of weakness or cowardice 
but rather simply one of the understandable hazards of the very violent 
modern battlefield. In the aftermath of Vietnam, our understanding of 
what is today known as post-traumatic stress disorder or PTSD has grown 
tremendously and so has our ability to treat it. Today, as a result of 
its work with Vietnam Veterans, the Department of Veterans Affairs is 
the world leader in diagnosing and treating PTSD.
  While the quality of the expertise in the VA is high, we need to 
improve the quantity. The Department of Veterans Affairs needs more 
mental health professionals to meet the needs of the coming influx of 
new veterans from Iraq and Afghanistan.
  Two articles in the July 2004 issue of the New England Journal of 
Medicine indicate that the nature of the war in Iraq is producing a new 
generation of American veterans who will require treatment for PTSD. 
The data gathered from recently returned troops suggests that about 1 
in 6 of our Iraq veterans will develop this serious problem. One of the 
articles cautions that the actual numbers will probably be even higher 
because the data of the reported study was collected from soldiers and 
marines who served in the theater before the Iraqi insurgency rose to 
its current level of intensity. The conditions are now made even more 
stressful by the hidden enemy, frequently concealed among civilians and 
attacking suddenly with roadside explosions and suicide bombers. The 
uncertainly, the shock, the blood and destruction of this type of 
warfare understandably takes a toll on the feelings of even the 
toughest of our warriors. We know from experience that roughly 30 
percent of Vietnam veterans suffered from PTSD sometime in their 
lifetime.
  Senators don't have to read the New England Journal of Medicine to 
know that our returning veterans will need a little help to overcome 
some terrible memories and troubling mental images. We can hear it from 
the veterans in our own States.
  Several weeks ago I traveled across my State of Illinois to five 
different locations for roundtable discussions about this subject. I 
invited veterans as well as medical counselors from the Veterans' 
Administration to tell me about former service members who were trying 
to come to grips with this torment in their minds over what they had 
been through and what they had seen. I was nothing short of amazed at 
what happened. At every single stop, these men and women came forward 
and sat at tables before groups in their communities, before the media, 
and told their stories of being trained to serve this country, being 
proud to serve, and going into battle situations which caused an impact 
on their mind they never could have imagined. They talked about coming 
home with their minds in this turmoil over the things they had done and 
seen. Many of them told of having to wait months and, in one case, a 
year before they could see a doctor at a VA hospital.
  I heard from veterans from Iraq, Vietnam, Korea and World War II. One 
veteran in southern Illinois who was in the Philippines couldn't come 
to my meeting because ``I just can't face talking about it.'' This was 
60 years after his experience. Veterans of Vietnam, coming home, facing 
animosity from others, then being unable to address their emotional and 
psychological anguish and difficulty because they were afraid to even 
acknowledge they were veterans. They were left tormented by this for 
decades.
  The ones that gripped my heart the most were the Iraqi veterans. I 
will never forget these men and women. The one I sat next to at 
Collinsville, a bright, handsome, young Marine, talked about going into 
Fallujah with his unit and how his point man was riddled with bullets, 
and he had to carry the parts of his body out of that street into some 
side corner where the remains could be evacuated. Then he took over his 
friend's job as point man and went forward. A rocket-propelled grenade 
was shot at him, and it bounced off his helmet. One of the insurgents 
came up and shot him twice in the chest. This happened just this past 
November.
  When he came home, he said he couldn't understand who he was because 
of what he had seen and been involved in. He had problems with his 
wife--difficult, violent problems, and he turned to the VA for help.
  I said to this young Marine: I am almost afraid to ask you this, but 
how old are you? He said, ``I am 19.''
  Think of what he has been through. Thank goodness he is in the hands 
of counselors. Thank goodness he is getting some help and moving in the 
right direction.
  But in another meeting in southern Illinois, another soldier said, in 
front of the group, ``As part of this battle, I killed children, women. 
I killed old people. I am trying to come to grips with this in my mind 
as I try to come back into civilian life.''
  A young woman, a member of the Illinois National Guard, said when she 
returned to the United States, still in distress over what she had seen 
and done, she was released from active duty through Fort McCoy in 
Wisconsin where the Army sat her down and asked, ``Any problems?'' Of 
course, that should have been the time for her to come forward and say: 
I have serious problems. She didn't. She'd heard that if you said you 
had a problem, you had to stay at Fort McCoy for several more months. 
She was so desperate to get home she said, ``No problems.''

[[Page 16857]]

  She came home and finally realized that was not true. She had serious 
psychological problems over what she had been through. When she turned 
to the VA and asked for help, they said: You can come in and see a 
counselor at the VA in a year.
  What happens to these veterans, victims of post-traumatic stress 
disorder, without counseling at an early stage? Sadly, many of them see 
their marriages destroyed. One I met was on his fourth marriage. Many 
of them self-medicate with alcohol, sometimes with drugs, desperate to 
find some relief from the nightmares they face every night. These are 
the real stories of real people, our sons and daughters, our brothers 
and sisters, our husbands and wives who go to battle to defend this 
country and come home with the promise that we will stand behind them.
  So, in addition to the Vietnam, Gulf War and other veterans already 
being treated, it is clear that we will soon see large numbers of Iraq 
veterans coming to the VA for help with PTSD. What is our capacity to 
help them? Unfortunately, it does not look good.
  Disturbingly, the Department of Veterans Affairs may lack the 
capacity to treat those with PTSD. The Government Accountability Office 
recently concluded, and the Department of Veterans Affairs concurred, 
that the Department has not kept adequate accounting of the numbers of 
patients it currently treats for PTSD. Without any reliable numbers of 
patients currently receiving treatment, the VA cannot deliver to us any 
assurance about having the facilities or staff needed to treat the 
coming influx of new veterans.
  The VA has demonstrated an inability to forecast the number of 
patients it must be ready to treat. In three of the past four years, 
the Department of Veterans Affairs has submitted budget requests that 
included patient estimates which turned out to be too low in four 
different areas. In three of the past four years, the VA has 
underestimated its number of acute hospital care patients, the number 
of medical visits, the dependents and survivors' hospital census, and 
the numbers of dependent and survivor outpatients that it would see.
  Now, just a couple of weeks ago, the VA had to acknowledge that its 
budget for the current fiscal year was going to be $1 billion short 
because they got their estimate of Iraq veteran patients wrong. The VA 
had forecasted a 2.3 percent growth in healthcare demand this year but 
the actual increase turned out to be 5.2 percent--more than twice the 
VA estimate. The VA budget assumed that 23,553 VA patients would be 
veterans of the Global War on Terrorism. The number of these patients 
in 2005 is now estimated to be 103,000--more than four times what VA 
had estimated.
  In the absence of reliable patient information and patient estimates 
from the Department of Veterans Affairs, how can we know that the VA 
healthcare system lacks the capability to treat the incoming number of 
veterans needing PTSD treatment? That's easy--we can simply listen to 
the VA medical professionals who provide the treatment.
  In the course of conducting its investigation, the Government 
Accountability Office asked officials at VA facilities if they would be 
able to meet this coming demand. The answer they received was very 
disturbing. Fully six out of these seven VA healthcare officials stated 
that their facilities may be unable to handle the influx of new 
veterans needing PTSD treatment. Six out of seven!
  In addition, another set of internal VA mental health professionals 
has repeatedly recommended that VA expand its capability to treat PTSD. 
The Department's own Special Committee on Post-Traumatic Stress 
Disorder has issued a long list of recommended improvements. When the 
Government Accountability Office studied the progress on implementing 
these expert recommendations, it found that the Department of Veterans 
Affairs hadn't fully implemented any of them.
  Enough is enough!
  When the VA fails to count its current PTSD patients; when the VA 
consistently underestimates its number of future patients; when the VA 
ignores the improvement recommendations of its own internal mental 
health professionals it is time for Congress to step in, demonstrate 
the leadership that is required, and take action to provide the 
treatment capability that our veterans deserve.
  The bill I am introducing today accomplishes this by requiring the 
Department of Veterans Affairs to implement three of the key treatment 
improvement recommendations made by the Department's own Special 
Committee on Post-Traumatic Stress Disorder.
  The bill requires the Secretary of Veterans Affairs to do three 
things. First, it requires the Secretary to establish a Post-Traumatic 
Stress Disorder Clinical Team at every Medical Center within the 
Department of Veterans Affairs. Second, it requires the Secretary to 
provide a certified family therapist within each Vet Center. Finally, 
the bill requires the appointment of a regional PTSD Coordinator within 
each Veteran Integrated Service Network (VISN) and Readjustment 
Counseling Service region to evaluate programs, promote best practices 
and make resource recommendations.
  Let me explain the importance of these three provisions.
  The majority of the major VA hospitals already have a clinical team 
of mental health experts focused on providing treatment for post-
traumatic stress disorder. These teams include psychiatrists, 
psychologists, and psychotherapists who bring their varied skills 
together. However, approximately 60 of our VA hospitals currently do 
not have a PTSD clinical team. This bill requires that these teams be 
established.
  Nationwide, the Department of Veterans Affairs operates 207 ``Vet 
Centers.'' The community-based, informal atmosphere of these centers 
has proven to be a highly effective way to provide counseling and other 
services to veterans who might not want or be able to go to a formal VA 
hospital for help. The Special Committee has recognized the importance 
of family relationships in helping veterans deal with their PTSD and 
has recommended that there be a certified marriage and family therapist 
at each Vet Center.
  Currently only 17 centers have these specialists on staff. This bill 
helps keep families strong for our veterans by adding 190 family 
therapists to Vet Centers nationwide.
  Finally, the bill ensures that PTSD treatment capability gets the 
attention and management needed to keep it strong by requiring the 
appointment of PTSD coordinators at the regional level.
  Altogether, this bill will add about 400 mental health professionals 
to the Department of Veterans Affairs' capability to treat those of our 
veterans whose wounds are not visible, whose thoughts are continually 
troubled by the horrors of war, who need just a little help to get past 
the nightmares and get their life back on track.
  Even the toughest of warriors can have troubled feelings following 
the stress of combat. It is no sign of weakness--it is no sign of 
failure to ask for a little help in getting past some of those 
feelings. That message must be clearly conveyed to all of our veterans.
  By acting now, we can ensure that this help is available to our 
veterans when they return. This is crucial because the effects of post-
traumatic stress disorder are sometimes left undiagnosed and untreated 
for years. If we delay, we virtually guarantee a future shortage of 
treatment capability and, in so doing, we lay the groundwork for the 
plague of drug abuse, domestic violence, homelessness, unemployment and 
even suicide that so often is the result of post-traumatic stress 
disorder which is left untreated.
  America's newest generation of young veterans certainly deserve 
better than that!
  We in the Congress can step up and require that the Department of 
Veterans Affairs hire a full staff of mental health professionals that 
can help our veterans to move past the psychological trauma of war and 
to lead healthy, happy and productive lives.
  I encourage my colleagues to join me in supporting our returning 
veterans by supporting the Post-Traumatic

[[Page 16858]]

Stress Disorder Treatment Improvement Act.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1448

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Post-Traumatic Stress 
     Disorder Treatment Improvement Act''.

     SEC. 2. IMPROVED TREATMENT OF POST-TRAUMATIC STRESS DISORDER.

       (a) In General.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary of Veterans Affairs 
     shall--
       (1) establish a post-traumatic stress disorder clinical 
     team at every Medical Center of the Department of Veterans 
     Affairs;
       (2) provide a certified family therapist for each Vet 
     Center of the Department of Veterans Affairs; and
       (3) appoint a post-traumatic stress disorder coordinator 
     within each Veteran Integrated Service Network and within 
     each Readjustment Counseling Service Region.
       (b) Duties of PTSD Coordinator.--Each coordinator appointed 
     for a network or region under subsection (a)(3) shall--
       (1) evaluate post-traumatic stress disorder and family 
     therapy treatment programs within the network or region;
       (2) identify and disseminate best practices on evaluation 
     and treatment of post-traumatic stress disorder, and on 
     family therapy treatment, within the network or region and to 
     other networks and regions; and
       (3) recommend the resource allocation necessary to meet 
     post-traumatic stress disorder and family therapy treatment 
     needs within the network or region.
       (c) Waiver.--Beginning on the date that is 5 years after 
     the date of the enactment of this Act, the Secretary of 
     Veterans Affairs may waive any requirement of this Act for 
     the fiscal year beginning after that date if the Secretary, 
     not later than 90 days before the beginning of such fiscal 
     year, submits to Congress a report--
       (1) notifying Congress of the proposed waiver;
       (2) explaining why the requirement is not necessary; and
       (3) describing how post-traumatic stress disorder services 
     and family therapy services will be provided to all veterans 
     who may need such services.
                                 ______
                                 
      By Mr. SHELBY:
  S. 1461. A bill to establish procedures for the protection of 
consumers from misuse of, and unauthorized access to, sensitive 
personal information contained in private information files maintained 
by commercial entities engaged in, or affecting, interstate commerce, 
provide for enforcement of those procedures by the Federal Trade 
Commission, and for other purposes; to the Committee on Banking, 
Housing, and Urban Affairs.
  Mr. SHELBY. Mr. President, I rise today to introduce the Consumer 
Identity Protection and Security Act. This legislation provides 
consumers the ability to place credit freezes on their credit reports.
  My sole intent in introducing this legislation is to address a 
jurisdictional question that has recently arisen with respect to the 
Fair Credit Reporting Act. I want to make sure that the referral 
precedent with respect to legislation that amends the Fair Credit 
Reporting Act, or touches upon the substance covered by that Act, is 
entirely clear. I believe the Parliamentarian's decision to refer this 
bill to the Senate Banking Committee establishes that there is no 
question in this regard and that this subject matter is definitively 
and singularly in the jurisdiction of the Senate Banking Committee.
                                 ______
                                 
      By Mr. BROWNBACK (for himself, Mr. Corzine, Mr. DeWine, Mr. 
        Durbin, Mr. Coburn, Mr. Lautenberg, Mr. Schumer, Mr. Bingaman, 
        Mr. Coleman, Mr. Talent, Mr. Salazar, Mrs. Dole, and Mr. Bayh):
  S. 1462. A bill to promote peace and accountability in Sudan, and for 
other purposes; to the Committee on Foreign Relations.
  Mr. BROWNBACK. Mr. President, I rise with my colleague Senator 
Corzine and 11 other cosponsors to introduce the Darfur Peace and 
Accountability Act of 2005. I applaud Senator Corzine for his tireless 
work on this issue--he has traveled on several occasions to Sudan, and 
was instrumental in moving the U.S. to declare the atrocities genocide. 
In addition, there is a strong bipartisan coalition forming to address 
one of the greatest moral issues that faces our world today.
  I wish to thank many of my colleagues for their support for the 
Darfur Accountability Act that was introduced in March and passed 
unanimously by this body as an amendment to the Emergency Supplemental. 
Unfortunately, that provision was stripped in conference.
  Since that time, several relevant U.N. Security Council resolutions 
have been passed, NATO has committed to assisting the African Union 
Mission in Sudan (AMIS), and the National Unity Government of Sudan was 
established just two weeks ago on July 9, following the Comprehensive 
Peace Agreement between the North and the South. While we applaud the 
recent peace agreement ending the longest civil war in Africa, we pause 
with great concern that genocide continues in Darfur. There can be no 
comprehensive peace in Sudan until the crisis in Darfur has been 
resolved.
  Just today news reports were swarming about the Sudanese officials 
who manhandled Secretary Rice's staff and reporters during their 
meeting with President Bashir. When a U.S. reporter asked a question 
about the killing of innocent civilians, she was taken by the arm and 
promptly removed from the meeting.
  It is unfortunate that the ``international incident'' not being 
reported is about the hundreds of thousands of lives lost, or the 2 
million refugees who live day to day on inadequate portions of food and 
very little clean water.
  In remarks prior to the G-8 summit on June 30, 2005, President Bush 
declared, ``the violence in Darfur is clearly genocide,'' and ``the 
human cost is beyond calculation.''
  While momentum for international support to end this crisis has been 
building, the violence and humanitarian crisis continues. Rape is still 
being used as weapon against women. Some women who have become pregnant 
due to brutal rape, have been forced to abort their babies and other 
women have been imprisoned for bearing illegitimate children. In 
addition, the government seems to be prepared to raze the Kalma refugee 
camp of 120,000 people against their wishes, sending them back into 
areas where there is no security against these rapes and killings.
  I remind my colleagues that it was one year ago, on July 22, we stood 
together in Congress to denounce the atrocities in Darfur as genocide. 
Twelve long months later is not the time to start thinking about easing 
sanctions or restoring certain diplomatic ties, rather it is time to 
address the needs of the African Union and it is time to sanction those 
responsible for genocide.
  That is why we are joining with colleagues in the House to introduce 
new bipartisan legislation called the Darfur Peace and Accountability 
act of 2005. This bill increases pressure on Khartoum, provides greater 
support to the African Union mission in Darfur to help protect 
civilians, imposes sanctions on individuals responsible for atrocities, 
and encourages the appointment of a U.S. special envoy to help advance 
a peace process for Darfur. I applaud our colleagues in the House, 
including Congressmen Hyde, Tancredo, Payne, Wolf, Smith and others, 
who have diligently worked with us to ensure a strong piece of 
legislation that we hope will move quickly and be enacted so that we 
may provide further relief to the suffering victims.
  I urge my colleagues to support this very important piece of 
legislation. For the first time in history we publicly speak of 
genocide while it is underway, yet we have broken our promise of 
``Never Again.'' We can no longer be indifferent to the suffering 
Africans of Darfur. We have got to move beyond partisan politics, and 
agree on the fundamentals that will help save lives immediately.
  Mr. CORZINE. Mr. President, I rise today to introduce the Darfur 
Peace and Accountability Act. This bill, which is the latest version of 
legislation Senator Brownback and I have

[[Page 16859]]

been pushing for almost six months, will provide the tools and 
authorizations and put forth the policies necessary to stop the 
genocide in Darfur. This bill also has support in the House, where it 
has been introduced by Representatives Hyde, Payne and others.
  Sudan is in the news today because of Secretary Rice's trip, and 
because of the rough treatment her entourage has received. But let's 
not lose sight of what has happened in Sudan over the last two years, 
and what is still happening. 2 million Darfurian civilians have been 
displaced from their homes. 1.8 million have been forced into camps in 
Darfur. There are 200,000 Darfur refugees in Chad. Hundreds of 
thousands have died, with some estimates up to 400,000. The Government 
of Sudan and the janjaweed militias it supports are responsible for 
systematic, targeted and premeditated violence, including murder and 
rape.
  It was one year ago tomorrow that the Senate recognized these 
atrocities as genocide. One long, horrible, violent, tragic year for 
the people of Darfur.
  We can stop this genocide, and we know how to do it. It just takes 
the will.
  Three months ago, the Senate passed the Darfur Accountability Act as 
an amendment to the Supplemental Appropriations bill. Despite 
overwhelming bipartisan support, it was stripped out in conference. 
Meanwhile, the genocide continued and now we are forced to revisit many 
of the same issues.
  First, it is time we put real pressure on the Government of Sudan. 
While I welcome Secretary Rice's trip to Sudan, and Deputy Secretary 
Zoellick's two trips, diplomacy only goes so far. When the world 
threatens sanctions, Khartoum moderates its behavior. This bill calls 
for a UN Security Council resolution to impose real sanctions on the 
Government of Sudan.
  Second, we need boots on the ground. When I visited Darfur in August 
last year, there were only a couple hundred African Union troops on the 
ground. There are not more than 3,000. But this number is far from 
adequate to patrol a region the size of Texas. There are over 50,000 
police officers in Texas, yet we are still struggling to deploy 7,000 
AU soldiers in Darfur, where genocide and civil war are raging, and 
where transportation and communications are limited.
  The AU has been effective where it is deployed and I applaud the AU's 
leadership on this issue. But we have to be realistic about what they 
are up against. They need an explicit mandate to protect civilians and 
they need much more support.
  It also requires that, 30 days after we learn the names of those the 
UN has identified as having committed atrocities, the President report 
to Congress on whether he is sanctioning those people and the reasons 
for his decision.
  This is not about the past. Those who have committed genocide are 
still doing so. While we debate this legislation, brutal killers 
continue to terrorize the people of Darfur with impunity. They must be 
named, they must be sanctioned, and they must be brought to justice.
  Fifth, we need a Special Presidential Envoy. Secretary Rice and 
Deputy Secretary Zoellick simply cannot devote themselves full time to 
this crisis.
  A high-profile envoy will make sustain the pressure on the 
Government, get the UN Security Council to act, keep tract of what the 
African Union really needs to be effective and accelerate NATO 
involvement, and make sure that peace talks with the Darfur rebels 
don't drift. A Special Envoy will be able to visit all of Darfur, not 
just the camps that have been cleaned up for visiting VIPs. And a 
Special Envoy will be able to address related problems, from northern 
Uganda to Sudan's troubled East.
  We can do all of this. We just need the political will But, that has 
always been the problem. From Cambodia to the Balkans to Rwanda, we 
failed to act or acted too late. And this time, we can't even claim not 
to know what is happening. We know all too well.
  We can't claim that we haven't had the time to act. It's been a year 
since we declared the atrocities in Darfur to be genocide. We can't 
claim that we are not responsible. What greater responsibility can 
there be than to stop a genocide?
  We're out of excuses, and we're out of time. I hope this bipartisan 
bill and its House counterpart are quickly passed. I urge my colleagues 
to support this bill.
                                 ______
                                 
      By Mr. KERRY:
  S. 1463. A bill to clarify that the Small Business Administration has 
authority to provide emergency assistance to non-farm-related small 
business concerns that have suffered substantial economic harm from 
drought; to the Committee on Small Business and Entrepreneurship.
  Mr. KERRY. Mr. President, drought continues to be a serious problem 
for many States in this country, and I rise to re-introduce legislation 
to help small businesses that need disaster assistance but can't get it 
through the Small Business Administration's disaster loan program.
  You see, the SBA doesn't treat all drought victims the same. The 
Agency only helps those small businesses whose income is tied to 
farming and agriculture. However, farmers and ranchers are not the only 
small business owners whose livelihoods are at risk when drought hits 
their communities. The impact can be just as devastating to the owners 
of rafting businesses, marinas, and bait and tackle shops. Sadly, these 
small businesses cannot get help through the SBA's disaster loan 
program because of something taxpayers hate about government--
buraucracy.
  The SBA denies these businesses access to disaster loans because its 
lawyers say drought is not a sudden event and therefore it is not a 
disaster by definition. However, contrary to the Agency's position that 
drought is not a disaster, in July of 2002, when this Act was 
originally introduced, the SBA had in effect drought disaster 
declarations in 36 States. As of July 2005, 11 States remain declared 
drought disasters and 19 States are suffering from severe to extreme 
drought conditions. Adding insult to injury, in those States where the 
Agency declares drought disaster, it limits assistance to only farm-
related small businesses. Take, for instance, South Carolina. A couple 
of years ago that entire State had been declared a disaster by the SBA, 
but the Administration would not help all drought victims. Let met read 
to you from the declaration:

       Small businesses located in all 46 counties may apply for 
     economic injury disaster loan assistance through the SBA. 
     These are working capital loans to help the business continue 
     to meet its obligations until the business returns to normal 
     conditions. . . . Only small, non-farm agriculture dependent 
     and small agricultural cooperative are eligible to apply for 
     assistance. Nurseries are also eligible for economic injury 
     caused by drought conditions.

  The SBA has the authority to help all small businesses hurt by 
drought in declared disaster areas, but the Agency won't do it. For 
years the Agency has been applying the law unfairly, helping some and 
not others, and it is out of compliance with the law. The Small 
Business Drought Relief Act of 2005 would force SBA to comply with 
existing law, restoring fairness to an unfair system, and get help to 
small business drought victims that need it.
  Time is of the essence for drought victims, and I am hopeful that 
Congress will consider passing this legislation soon. This Act has been 
thoroughly reviewed, passing the committee of jurisdiction three times 
and the Senate twice, with supporters numbering up to 25, from both 
sides of the aisle. In addition to approval by the committee of 
jurisdiction, OMB approved virtually identical legislation in 2003. The 
bill I am introducing today includes those changes we worked out with 
the Administration, and I see no reason for delay.
  I thank Senators Snowe and Bond, our current and past chairs, both of 
whom have been supportive of this legislation each time it was 
introduced and passed.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

[[Page 16860]]



                                S. 1463

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE

       This Act may be cited as the as the ``Small Business 
     Drought Relief Act of 2005''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) as of July 2002, when this Act was originally 
     introduced in the 107th Congress as Senate Bill S. 2734, more 
     than 36 States (including Massachusetts, Montana, Texas, and 
     Nevada) had suffered from continuing drought conditions;
       (2) as of July 2005, drought continues to be a serious 
     national problem, with 19 States suffering from severe to 
     extreme drought conditions;
       (3) droughts have a negative effect on State and regional 
     economies;
       (4) many small businesses in the United States sell, 
     distribute, market, or otherwise engage in commerce related 
     to water and water sources, such as lakes, rivers, and 
     streams;
       (5) many small businesses in the United States suffer 
     economic injury from drought conditions, leading to revenue 
     losses, job layoffs, and bankruptcies;
       (6) these small businesses need access to low-interest 
     loans for business-related purposes, including paying their 
     bills and making payroll until business returns to normal;
       (7) absent a legislative change, the practice of the Small 
     Business Administration of permitting only agriculture and 
     agriculture-related businesses to be eligible for Federal 
     disaster loan assistance as a result of drought conditions 
     would likely continue;
       (8) during the past several years small businesses that 
     rely on the Great Lakes have suffered economic injury as a 
     result of lower than average water levels, resulting from low 
     precipitation and increased evaporation, and there are 
     concerns that small businesses in other regions could suffer 
     similar hardships beyond their control and that they should 
     also be eligible for assistance; and
       (9) it is necessary to amend the Small Business Act to 
     clarify that non-farm-related small businesses that have 
     suffered economic injury from drought are eligible to receive 
     financial assistance through Small Business Administration 
     Economic Injury Disaster Loans.

     SEC. 3. DISASTER RELIEF FOR SMALL BUSINESS CONCERNS DAMAGED 
                   BY DROUGHT.

       (a) Drought Disaster Authority.--
       (1) Definition of disaster.--Section 3(k) of the Small 
     Business Act (15 U.S.C. 632(k)) is amended--
       (A) by inserting ``(1)'' after ``(k)''; and
       (B) by adding at the end the following:
       ``(2) For purposes of section 7(b)(2), the term `disaster' 
     includes--
       ``(A) drought; and
       ``(B) below average water levels in the Great Lakes, or on 
     any body of water in the United States that supports commerce 
     by small business concerns.''
       (2) Drought disaster relief authority.--Section 7(b)(2) of 
     the Small Business Act (15 U.S.C. 636(b)(2)) is amended--
       (A) by inserting ``(including drought), with respect to 
     both farm-related and non-farm-related small business 
     concerns,'' before ``if the Administration''; and
       (B) in subparagraph (B), by striking ``the Consolidated 
     Farmers Home Administration Act of 1961 (7 U.S.C. 1961)'' and 
     inserting the following: ``section 321 of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1961), in which 
     case, assistance under this paragraph may be provided to 
     farm-related and non-farm-related small business concerns, 
     subject to the other applicable requirements of this 
     paragraph''.
       (b) Limitation on Loans.--From funds otherwise appropriated 
     for loans under section 
     7(b) of the Small Business Act (15 U.S.C. 636(b)), not more 
     than $9,000,000 may be used during each of fiscal years 2005 
     through 2008, to provide drought disaster loans to non-farm-
     related small business concerns in accordance with this Act 
     and the amendments made by this Act.
       (c) Prompt Response To Disaster Requests.--Section 
     7(b)(2)(D) of the Small Business Act (15 U.S.C. 636(b)(2)(D)) 
     is amended by striking ``Upon receipt of such certification, 
     the Administration may'' and inserting ``Not later than 30 
     days after the date of receipt of such certification by a 
     Governor of a State, the Administration shall respond in 
     writing to that Governor on its determination and the reasons 
     therefore, and may''.

     SEC. 4. RULEMAKING.

       Not later than 45 days after the date of enactment of this 
     Act, the Administrator of the Small Business Administration 
     shall promulgate final rules to carry out this Act and the 
     amendments made by this Act.

                          ____________________