[Congressional Record (Bound Edition), Volume 151 (2005), Part 17]
[Senate]
[Pages 23225-23239]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2112. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 276, after line 24, insert the following:
       Sec. 1__.(a) Item number 14 of the table contained in 
     section 1302 of the Safe, Accountable, Flexible, Efficient 
     Transportation Equity Act: A Legacy for Users (Public Law 
     109-59; 119 Stat. 1144) is amended--
       (1) by striking ``AK'' and inserting ``LA''; and
       (2) by striking ``Planning, design, and construction of 
     Knik Arm Bridge'' and inserting ``Reconstruction of Twin 
     Spans Bridge connecting New Orleans and Slidell, Louisiana''.
       (b) The table contained in section 1702 of the Safe, 
     Accountable, Flexible, Efficient Transportation Equity Act: A 
     Legacy for Users (Public Law 109-59; 119 Stat. 1144) is 
     amended--
       (1) in item number 2465--
       (A) by striking ``AK'' and inserting ``LA''; and
       (B) by striking ``Planning, design, and construction of 
     Knik Arm Bridge'' and inserting ``Reconstruction of Twin 
     Spans Bridge connecting New Orleans and Slidell, Louisiana''; 
     and
       (2) in item number 3677--
       (A) by striking ``AK'' and inserting ``LA''; and
       (B) by striking ``Planning, design, and construction of 
     Knik Arm Bridge'' and inserting ``Reconstruction of Twin 
     Spans Bridge connecting New Orleans and Slidell, Louisiana''.
       (c) Item number 2 of the table contained in section 1934 of 
     the Safe, Accountable, Flexible, Efficient Transportation 
     Equity Act: A Legacy for Users (Public Law 109-59; 119 Stat. 
     1144) is amended--
       (1) by striking ``AK'' and inserting ``LA''; and
       (2) by striking ``Improvements to the Knik Arm Bridge'' and 
     inserting ``Reconstruction of Twin Spans Bridge connecting 
     New Orleans and Slidell, Louisiana''.
       (d) Sections 1949 and 4411 of the Safe, Accountable, 
     Flexible, Efficient Transportation Equity Act: A Legacy for 
     Users (Public Law 109-59; 119 Stat. 1144) are repealed.
       (e) Nothing in this section or an amendment made by this 
     section affects the allocation of funds to any State other 
     than the States of Alaska and Louisiana.
                                 ______
                                 
  SA 2113. Mr. BOND (for himself, Mr. Dorgan, Mr. Nelson of Florida, 
Mr. Corzine, and Mr. Talent) proposed an amendment to the bill H.R. 
3058, making appropriations for the Departments of Transportation, 
Treasury, and Housing and Urban Development, the Judiciary, District of 
Columbia, and independent agencies for the fiscal year ending September 
30, 2006, and for other purposes; as follows:

       Insert the following on page 348, after line 5, and 
     renumber accordingly:
       ``Sec. 321. No funds in this Act may be used to support any 
     federal, state, or local projects that seek to use the power 
     of eminent domain, unless eminent domain is employed only for 
     a public use: Provided, That for purposes of this section, 
     public use shall not be construed to include economic 
     development that primarily benefits private entities: 
     Provided further, That any use of funds for mass transit, 
     railroad, airport, seaport or highway projects as well as 
     utility projects which benefit or serve the general public 
     (including energy-related, communication-related, water-
     related and wastewater-related infrastructure), other 
     sructures designated for use by the general public or which 
     have other common-carrier or public-utility functions that 
     serve the general public and are subject to regulation and 
     oversight by the government, and projects for the removal of 
     blight (including areas identified by units of local 
     government for recovery from natural disasters) or 
     brownsfields as defined in the Small Business Liability 
     Relief and Brownsfields Revitalization Act (Pub. Law 107-118) 
     shall be considered a public use for purposes of eminent 
     domain: Provided further, That the Government Accountability 
     Office, in consultation with the National Academy for Public 
     Administration, organizations representing state and local 
     governments, and property rights organizations, shall conduct 
     a study to be submitted to the Congress within 12 months of 
     the enactment of this Act on the nationwide use of eminent 
     domain, including the procedures used and the results 
     accomplished on a state-by-state basis as well as the impact 
     on individual property owners and on the affected 
     communities.''
                                 ______
                                 
  SA 2114. Mrs. BOXER (for herself and Mr. Schumer) submitted an 
amendment intended to be proposed by her to the bill H.R. 3058, making 
appropriations for the Departments of Transportation, Treasury, and 
Housing and Urban Development, the Judiciary, District of Columbia, and 
independent agencies for the fiscal year ending September 30, 2006, and 
for other purposes; which was ordered to lie on the table; as follows:

       On page 310, line 16, insert ``, and of which $4,500,000 
     shall be for capacity building activities administered by 
     Habitat for Humanity International'' after ``tribal areas''.
                                 ______
                                 
  SA 2115. Mr. ENZI proposed an amendment to the bill H.R. 3058, making 
appropriations for the Departments of Transportation, Treasury, and 
Housing and Urban Development, the Judiciary, District of Columbia, and 
independent agencies for the fiscal year ending September 30, 2006, and 
for other purposes; as follows:

       At the appropriate place add the following:

            __--ASSISTANCE FOR WORKERS AND SMALL BUSINESSES

                  Subtitle A--Minimum Wage Adjustment

     SEC. __01. MINIMUM WAGE.

       (a) In General.--Section 6(a)(1) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to 
     read as follows:
       ``(1) except as otherwise provided in this section, not 
     less than--
       ``(A) $5.70 an hour, beginning 6 months after the date of 
     enactment of the Transportation, Treasury, the Judiciary, 
     Housing and Urban Development, and Related Agencies 
     Appropriations Act, 2006; and
       ``(B) $6.25 an hour, beginning 18 months after such date of 
     enactment;''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect 6 months after the date of enactment of the 
     Transportation, Treasury, the Judiciary, Housing and Urban 
     Development, and Related Agencies Appropriations Act, 2006.

                   Subtitle B--Workplace Flexibility

     SEC. __11. SHORT TITLE.

       This subtitle may be cited as the ``Workplace Flexibility 
     Act''.

[[Page 23226]]



     SEC. __12. BIWEEKLY WORK PROGRAMS.

       (a) In General.--The Fair Labor Standards Act of 1938 is 
     amended by inserting after section 13 (29 U.S.C. 213) the 
     following:

     ``SEC. 13A. BIWEEKLY WORK PROGRAMS.

       ``(a) Voluntary Participation.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     employee may be required to participate in a program 
     described in this section. Participation in a program 
     described in this section may not be a condition of 
     employment.
       ``(2) Collective bargaining agreement.--In a case in which 
     a valid collective bargaining agreement exists between an 
     employer and the labor organization that has been certified 
     or recognized as the representative of the employees of the 
     employer under applicable law, an employee may only be 
     required to participate in such a program in accordance with 
     the agreement.
       ``(b) Biweekly Work Programs.--
       ``(1) In general.--Notwithstanding section 7, an employer 
     may establish biweekly work programs that allow the use of a 
     biweekly work schedule--
       ``(A) that consists of a basic work requirement of not more 
     than 80 hours, over a 2-week period; and
       ``(B) in which more than 40 hours of the work requirement 
     may occur in a week of the period, except that no more than 
     10 hours may be shifted between the 2 weeks involved.
       ``(2) Conditions.--An employer may carry out a biweekly 
     work program described in paragraph (1) for employees only 
     pursuant to the following:
       ``(A) Agreement.--The program may be carried out only in 
     accordance with--
       ``(i) applicable provisions of a collective bargaining 
     agreement between the employer and the labor organization 
     that has been certified or recognized as the representative 
     of the employees under applicable law; or
       ``(ii) in the case of an employee who is not represented by 
     a labor organization described in clause (i), a written 
     agreement arrived at between the employer and employee before 
     the performance of the work involved if the agreement was 
     entered into knowingly and voluntarily by such employee and 
     was not a condition of employment.
       ``(B) Statement.--The program shall apply to an employee 
     described in subparagraph (A)(ii) if such employee has 
     affirmed, in a written statement that is made, kept, and 
     preserved in accordance with section 11(c), that the employee 
     has chosen to participate in the program.
       ``(C) Minimum service.--No employee may participate, or 
     agree to participate, in the program unless the employee has 
     been employed for at least 12 months by the employer, and for 
     at least 1,250 hours of service with the employer during the 
     previous 12-month period.
       ``(3) Compensation for hours in schedule.--Notwithstanding 
     section 7, in the case of an employee participating in such a 
     biweekly work program, the employee shall be compensated for 
     each hour in such a biweekly work schedule at a rate not less 
     than the regular rate at which the employee is employed.
       ``(4) Computation of overtime.--All hours worked by the 
     employee in excess of such a biweekly work schedule or in 
     excess of 80 hours in the 2-week period, that are requested 
     in advance by the employer, shall be overtime hours.
       ``(5) Overtime compensation provision.--The employee shall 
     be compensated for each such overtime hour at a rate not less 
     than one and one-half times the regular rate at which the 
     employee is employed, in accordance with section 7(a)(1), or 
     receive compensatory time off in accordance with section 7(r) 
     for each such overtime hour.
       ``(6) Discontinuance of program or withdrawal.--
       ``(A) Discontinuance of program.--An employer that has 
     established a biweekly work program under paragraph (1) may 
     discontinue the program for employees described in paragraph 
     (2)(A)(ii) after providing 30 days' written notice to the 
     employees who are subject to an agreement described in 
     paragraph (2)(A)(ii).
       ``(B) Withdrawal.--An employee may withdraw an agreement 
     described in paragraph (2)(A)(ii) at the end of any 2-week 
     period described in paragraph (1)(A), by submitting a written 
     notice of withdrawal to the employer of the employee.
       ``(c) Prohibition of Coercion.--
       ``(1) In general.--An employer shall not directly or 
     indirectly intimidate, threaten, or coerce, or attempt to 
     intimidate, threaten, or coerce, any employee for the purpose 
     of interfering with the rights of the employee under this 
     section to elect or not to elect to work a biweekly work 
     schedule.
       ``(2) Definition.--In paragraph (1), the term `intimidate, 
     threaten, or coerce' includes promising to confer or 
     conferring any benefit (such as appointment, promotion, or 
     compensation) or effecting or threatening to effect any 
     reprisal (such as deprivation of appointment, promotion, or 
     compensation).
       ``(d) Definitions.--In this section:
       ``(1) Basic work requirement.--The term `basic work 
     requirement' means the number of hours, excluding overtime 
     hours, that an employee is required to work or is required to 
     account for by leave or otherwise.
       ``(2) Collective bargaining.--The term `collective 
     bargaining' means the performance of the mutual obligation of 
     the representative of an employer and the labor organization 
     that has been certified or recognized as the representative 
     of the employees of the employer under applicable law to meet 
     at reasonable times and to consult and bargain in a good-
     faith effort to reach agreement with respect to the 
     conditions of employment affecting such employees and to 
     execute, if requested by either party, a written document 
     incorporating any collective bargaining agreement reached, 
     but the obligation referred to in this paragraph shall not 
     compel either party to agree to a proposal or to make a 
     concession.
       ``(3) Collective bargaining agreement.--The term 
     `collective bargaining agreement' means an agreement entered 
     into as a result of collective bargaining.
       ``(4) Election.--The term `at the election of', used with 
     respect to an employee, means at the initiative of, and at 
     the request of, the employee.
       ``(5) Employee.--The term `employee' means an individual--
       ``(A) who is an employee (as defined in section 3);
       ``(B) who is not an employee of a public agency; and
       ``(C) to whom section 7(a) applies.
       ``(6) Employer.--The term `employer' does not include a 
     public agency.
       ``(7) Overtime hours.--The term `overtime hours' when used 
     with respect to biweekly work programs under subsection (b), 
     means all hours worked in excess of the biweekly work 
     schedule involved or in excess of 80 hours in the 2-week 
     period involved, that are requested in advance by an 
     employer.
       ``(8) Regular rate.--The term `regular rate' has the 
     meaning given the term in section 7(e).''.
       (b) Remedies.--
       (1) Prohibitions.--Section 15(a)(3) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 215(a)(3)) is amended--
       (A) by inserting ``(A)'' after ``(3)'';
       (B) by adding ``or'' after the semicolon; and
       (C) by adding at the end the following:
       ``(B) to violate any of the provisions of section 13A;''.
       (2) Remedies and sanctions.--Section 16 of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 216) is amended--
       (A) in subsection (c)--
       (i) in the first sentence--

       (I) by inserting after ``7 of this Act'' the following: ``, 
     or of the appropriate legal or monetary equitable relief 
     owing to any employee or employees under section 13A''; and
       (II) by striking ``wages or unpaid overtime compensation 
     and'' and inserting ``wages, unpaid overtime compensation, or 
     legal or monetary equitable relief, as appropriate, and'';

       (ii) in the second sentence, by striking ``wages or 
     overtime compensation and'' and inserting ``wages, unpaid 
     overtime compensation, or legal or monetary equitable relief, 
     as appropriate, and''; and
       (iii) in the third sentence--

       (I) by inserting after ``first sentence of such 
     subsection'' the following: ``, or the second sentence of 
     such subsection in the event of a violation of section 
     13A,''; and
       (II) by striking ``wages or unpaid overtime compensation 
     under sections 6 and 7 or'' and inserting ``wages, unpaid 
     overtime compensation, or legal or monetary equitable relief, 
     as appropriate, or''; and

       (B) in subsection (e)--
       (i) in the second sentence, by striking ``section 6 or 7'' 
     and inserting ``section 6, 7, or 13A''; and
       (ii) in the fourth sentence, in paragraph (3), by striking 
     ``15(a)(4) or'' and inserting ``15(a)(4), a violation of 
     section 15(a)(3)(B), or''.
       (c) Notice to Employees.--Not later than 30 days after the 
     date of enactment of this Act, the Secretary of Labor shall 
     revise the materials the Secretary provides, under 
     regulations contained in section 516.4 of title 29, Code of 
     Federal Regulations, to employers for purposes of a notice 
     explaining the Fair Labor Standards Act of 1938 (29 U.S.C. 
     201 et seq.) to employees so that the notice reflects the 
     amendments made to the Act by this section.

     SEC. __13. CONGRESSIONAL COVERAGE.

       Section 203 of the Congressional Accountability Act of 1995 
     (2 U.S.C. 1313) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``and section 12(c)'' and 
     inserting ``section 12(c), and section 13A''; and
       (B) by striking paragraph (3);
       (2) in subsection (b)--
       (A) by striking ``The remedy'' and inserting the following:
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), the remedy''; and
       (B) by adding at the end the following:
       ``(2) Biweekly work programs and flexible credit hours 
     programs.--The remedy for a violation of subsection (a) 
     relating to the requirements of section 13A of the Fair Labor 
     Standards Act of 1938 shall be such remedy as would be 
     appropriate if awarded under sections 16 and 17 of such Act 
     (29 U.S.C. 216, 217) for such a violation.''; and
       (3) in subsection (c), by striking paragraph (4).

[[Page 23227]]



     SEC. __14. TERMINATION.

       The authority provided by this subtitle and the amendments 
     made by this subtitle terminates 5 years after the date of 
     enactment of this Act.

     Subtitle C--Small Business Fair Labor Standards Act Exemption

     SEC. __21. ENHANCED SMALL BUSINESS EXEMPTION.

       (a) In General.--Section 3(s)(1)(A)(ii) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 203(s)(1)(A)(ii)) is amended 
     by striking ``$500,000'' and inserting ``$1,000,000''.
       (b) Effect of Amendment.--The amendment made by subsection 
     (a) shall not apply in any State that does not have in 
     effect, or that does not subsequently enact after the date of 
     enactment of the Transportation, Treasury, the Judiciary, 
     Housing and Urban Development, and Related Agencies 
     Appropriations Act, 2006, legislation applying minimum wage 
     and hours of work protections to workers covered by the Fair 
     Labor Standards Act of 1938 as of the day before the date of 
     enactment of the Transportation, Treasury, the Judiciary, 
     Housing and Urban Development, and Related Agencies 
     Appropriations Act, 2006.

     SEC. __22. SCOPE OF EMPLOYMENT.

       Section 6(a) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 206(a)), in the matter preceding paragraph (1), and 
     section 7(a)(1) of such Act (29 U.S.C. 207(a)(1)), are 
     amended by striking ``who in any workweek is engaged in 
     commerce or in the production of goods for commerce, or is 
     employed in an enterprise engaged in commerce or in the 
     production of goods for commerce,'' and inserting ``who in 
     any workweek is engaged in industrial homework subject to 
     section 11(d) and engaged in commerce or in the production of 
     goods for commerce, or who in any workweek is employed in an 
     enterprise engaged in commerce or in the production of goods 
     for commerce,''.

             Subtitle D--Small Business Paperwork Reduction

     SEC. __31. SMALL BUSINESS PAPERWORK REDUCTION.

       (a) In General.--Section 3506 of title 44, United States 
     Code (commonly referred to as the ``Paperwork Reduction 
     Act''), is amended by adding at the end the following:
       ``(j)(1) In the case of a first-time violation by a small 
     business concern of a requirement regarding the collection of 
     information by an agency, the head of such agency shall 
     provide that no civil fine shall be imposed on the small 
     business concern unless, based on the particular facts and 
     circumstances regarding the violation--
       ``(A) the head of the agency determines that the violation 
     has the potential to cause serious harm to the public 
     interest;
       ``(B) the head of the agency determines that failure to 
     impose a civil fine would impede or interfere with the 
     detection of criminal activity;
       ``(C) the violation is a violation of an internal revenue 
     law or a law concerning the assessment or collection of any 
     tax, debt, revenue, or receipt;
       ``(D) the violation is not corrected on or before the date 
     that is 6 months after the date of receipt by the small 
     business concern of notification of the violation in writing 
     from the agency; or
       ``(E) except as provided in paragraph (2), the head of the 
     agency determines that the violation presents a danger to the 
     public health or safety.
       ``(2)(A) In any case in which the head of an agency 
     determines under paragraph (1)(E) that a violation presents a 
     danger to the public health or safety, the head of the agency 
     may, notwithstanding paragraph (1)(E), determine that a civil 
     fine should not be imposed on the small business concern if 
     the violation is corrected within 24 hours of receipt of 
     notice in writing by the small business concern of the 
     violation.
       ``(B) In determining whether to provide a small business 
     concern with 24 hours to correct a violation under 
     subparagraph (A), the head of the agency shall take into 
     account all of the facts and circumstances regarding the 
     violation, including--
       ``(i) the nature and seriousness of the violation, 
     including whether the violation is technical or inadvertent 
     or involves willful or criminal conduct;
       ``(ii) whether the small business concern has made a good 
     faith effort to comply with applicable laws, and to remedy 
     the violation within the shortest practicable period of time; 
     and
       ``(iii) whether the small business concern has obtained a 
     significant economic benefit from the violation.
       ``(C) In any case in which the head of the agency imposes a 
     civil fine on a small business concern for a violation with 
     respect to which this paragraph applies and does not provide 
     the small business concern with 24 hours to correct the 
     violation, the head of the agency shall notify Congress 
     regarding such determination not later than 60 days after the 
     date that the civil fine is imposed by the agency.
       ``(3) With respect to any agency, this subsection shall not 
     apply to any violation by a small business concern of a 
     requirement regarding collection of information by such 
     agency if such small business concern previously violated any 
     requirement regarding collection of information by such 
     agency.
       ``(4) In determining if a violation is a first-time 
     violation for purposes of this subsection, the head of an 
     agency shall not take into account any violation of a 
     requirement regarding collection of information by another 
     agency.
       ``(5) Notwithstanding any other provision of law, no State 
     may impose a civil penalty on a small business concern, in 
     the case of a first-time violation by the small-business 
     concern of a requirement regarding collection of information 
     under Federal law, in a manner inconsistent with the 
     provisions of this subsection.
       ``(6) For purposes of this subsection, the term `small 
     business concern' means a business concern that meets the 
     requirements of section 3(a) of the Small Business Act (15 
     U.S.C. 632(a)) and the regulations promulgated pursuant to 
     such section.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to any violation occurring on or after January 1, 
     2006.

              Subtitle E--Small Business Regulatory Relief

     SEC. __41. ENHANCED COMPLIANCE ASSISTANCE FOR SMALL 
                   BUSINESSES.

       (a) In General.--Section 212 of the Small Business 
     Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 
     note) is amended by striking subsection (a) and inserting the 
     following:
       ``(a) Compliance Guide.--
       ``(1) In general.--For each rule for which an agency head 
     does not make a certification under section 605(b) of title 
     5, United States Code, the agency shall publish 1 or more 
     guides to assist small entities in complying with the rule, 
     and shall entitle such publications `small entity compliance 
     guides'.
       ``(2) Publication of guides.--The publication of each guide 
     under this subsection shall include--
       ``(A) the posting of the guide in an easily identified 
     location on the website of the agency; and
       ``(B) distribution of the guide to known industry contacts, 
     such as small entities, associations, or industry leaders 
     affected by the rule.
       ``(3) Publication date.--An agency shall publish each guide 
     (including the posting and distribution of the guide as 
     described under paragraph (2))--
       ``(A) on the same date as the date of publication of the 
     final rule (or as soon as possible after that date); and
       ``(B) not later than the date on which the requirements of 
     that rule become effective.
       ``(4) Compliance actions.--
       ``(A) In general.--Each guide shall explain the actions a 
     small entity is required to take to comply with a rule.
       ``(B) Explanation.--The explanation under subparagraph 
     (A)--
       ``(i) shall include a description of actions needed to meet 
     requirements to enable a small entity to know when such 
     requirements are met; and
       ``(ii) if determined appropriate by the agency, may include 
     a description of possible procedures, such as conducting 
     tests, that assist a small entity in meeting such 
     requirements.
       ``(C) Procedures.--Procedures described under subparagraph 
     (B)(ii)--
       ``(i) shall be suggestions to assist small entities; and
       ``(ii) shall not be additional requirements relating to the 
     rule.
       ``(5) Agency preparation of guides.--The agency shall, in 
     its sole discretion, taking into account the subject matter 
     of the rule and the language of relevant statutes, ensure 
     that the guide is written using sufficiently plain language 
     likely to be understood by affected small entities. Agencies 
     may prepare separate guides covering groups or classes of 
     similarly affected small entities, and may cooperate with 
     associations of small entities to develop and distribute such 
     guides. An agency may prepare guides and apply this section 
     with respect to a rule or a group of related rules.''.
       (b) Technical and Conforming Amendment.--Section 211(3) of 
     the Small Business Regulatory Enforcement Fairness Act of 
     1996 (5 U.S.C. 601 note) is amended by inserting ``and 
     entitled'' after ``designated''.

                  Subtitle F--Minimum Wage Tip Credit

     SEC. __51. TIPPED WAGE FAIRNESS.

       Section 3(m) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 203(m)) is amended--
       (1) in paragraph (2), by inserting before the period the 
     following: ``: Provided, That the tips shall not be included 
     as part of the wage paid to an employee to the extent they 
     are excluded therefrom under the terms of a bona fide 
     collective bargaining agreement applicable to the particular 
     employee''; and
       (2) adding at the end the following: ``Notwithstanding any 
     other provision of this Act, any State or political 
     subdivision of a State which, on and after the date of 
     enactment of the Transportation, Treasury, the Judiciary, 
     Housing and Urban Development, and Related Agencies 
     Appropriations Act, 2006, excludes all of a tipped employee's 
     tips from being considered as wages in determining if such 
     tipped employee has been paid the applicable minimum wage 
     rate, may not establish or enforce the minimum wage rate 
     provisions of such law, ordinance, regulation, or order in 
     such State or political subdivision thereof with respect to 
     tipped employees unless such law, ordinance, regulation, or 
     order is revised or amended to permit a tip credit

[[Page 23228]]

     in an amount not less than an amount equal to--
       ``(A) the cash wage paid such employee which is required 
     under such law, ordinance, regulation, or order on the date 
     of enactment of such Act; and
       ``(B) an additional amount on account of tips received by 
     such employee which amount is equal to the difference between 
     such cash wage and the minimum wage rate in effect under such 
     law, ordinance, regulation, or order or the minimum wage rate 
     in effect under section 6, whichever is higher.''.

                 Subtitle G--Small Business Tax Relief

     SEC. __60. AMENDMENT OF 1986 CODE.

       Except as otherwise expressly provided, whenever in this 
     subtitle 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.

     CHAPTER 1--PROVISIONS RELATING TO ECONOMIC STIMULUS FOR SMALL 
                               BUSINESSES

     SEC. __61. EXTENSION OF INCREASED EXPENSING FOR SMALL 
                   BUSINESS.

       (a) In General.--Section 179 (relating to election to 
     expense certain depreciable business assets) is amended by 
     striking ``2008'' each place it appears and inserting 
     ``2009''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. __62. CLARIFICATION OF CASH ACCOUNTING RULES FOR SMALL 
                   BUSINESS.

       (a) Cash Accounting Permitted.--Section 446 (relating to 
     general rule for methods of accounting) is amended by adding 
     at the end the following new subsection:
       ``(g) Certain Small Business Taxpayers Permitted to Use 
     Cash Accounting Method Without Limitation.--
       ``(1) In general.--An eligible taxpayer shall not be 
     required to use an accrual method of accounting for any 
     taxable year.
       ``(2) Eligible taxpayer.--For purposes of this subsection--
       ``(A) In general.--A taxpayer is an eligible taxpayer with 
     respect to any taxable year if--
       ``(i) for all prior taxable years beginning after December 
     31, 2004, the taxpayer (or any predecessor) met the gross 
     receipts test of subparagraph (B), and
       ``(ii) the taxpayer is not subject to section 447 or 448.
       ``(B) Gross receipts test.--A taxpayer meets the gross 
     receipts test of this subparagraph for any prior taxable year 
     if the average annual gross receipts of the taxpayer for the 
     3-taxable-year period ending with such prior taxable year 
     does not exceed $10,000,000. The rules of paragraphs (2) and 
     (3) of section 448(c) shall apply for purposes of the 
     preceding sentence.
       ``(C) Inflation adjustment.--In the case of any taxable 
     year beginning in a calendar year after 2006, the dollar 
     amount contained in subparagraph (B) shall be increased by an 
     amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `calendar year 2005' for 
     `calendar year 1992' in subparagraph (B) thereof.

     If any amount as adjusted under this subparagraph is not a 
     multiple of $100,000, such amount shall be rounded to the 
     nearest multiple of $100,000.''.
       (b) Clarification of Inventory Rules for Small Business.--
     Section 471 (relating to general rule for inventories) is 
     amended by redesignating subsection (c) as subsection (d) and 
     by inserting after subsection (b) the following new 
     subsection:
       ``(c) Small Business Taxpayers Not Required to Use 
     Inventories.--
       ``(1) In general.--An eligible taxpayer shall not be 
     required to use inventories under this section for a taxable 
     year.
       ``(2) Treatment of taxpayers not using inventories.--If an 
     eligible taxpayer does not use inventories with respect to 
     any property for any taxable year beginning after December 
     31, 2004, such property shall be treated as a material or 
     supply which is not incidental.
       ``(3) Eligible taxpayer.--For purposes of this subsection, 
     the term `eligible taxpayer' has the meaning given such term 
     by section 446(g)(2).''.
       (c) Effective Date and Special Rules.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 2004.
       (2) Change in method of accounting.--In the case of any 
     taxpayer changing the taxpayer's method of accounting for any 
     taxable year under the amendments made by this section--
       (A) such change shall be treated as initiated by the 
     taxpayer;
       (B) such change shall be treated as made with the consent 
     of the Secretary of the Treasury; and
       (C) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account 
     over a period (not greater than 4 taxable years) beginning 
     with such taxable year.

     SEC. __63. RECOVERY PERIOD FOR DEPRECIATION OF RESTAURANT 
                   BUILDINGS.

       (a) 15-Year Recovery Period.--Subparagraph (E) of section 
     168(e)(3) (relating to 15-year property) is amended by 
     striking ``and'' at the end of clause (ii), by striking the 
     period at the end of clause (iii) and inserting ``, and'', 
     and by adding at the end the following new clause:
       ``(iv) any section 1250 property which is a retail 
     restaurant facility.''.
       (b) Retail Restaurant Facility.--Subsection (e) of section 
     168 is amended by adding at the end the following new 
     paragraph:
       ``(6) Retail restaurant facility.--The term `retail 
     restaurant facility' means any building if more than 50 
     percent of the building's square footage is devoted to 
     preparation of, and seating for on-premises consumption of, 
     prepared meals.''.
       (c) Alternative System.--The table contained in section 
     168(g)(3)(B) is amended by inserting after the item relating 
     to subparagraph (E)(iii) the following new item:

``(E)(iv).....................................................39''.....

       (d) Effective Date.--The amendments made by this section 
     shall apply to retail restaurant buildings placed in service, 
     and to all improvements made, after September 30, 2004, and 
     before October 1, 2009.

                     CHAPTER 2--REVENUE PROVISIONS

     SEC. __71. FRIVOLOUS TAX SUBMISSIONS.

       (a) Civil Penalties.--Section 6702 is amended to read as 
     follows:

     ``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.

       ``(a) Civil Penalty for Frivolous Tax Returns.--A person 
     shall pay a penalty of $5,000 if--
       ``(1) such person files what purports to be a return of a 
     tax imposed by this title but which--
       ``(A) does not contain information on which the substantial 
     correctness of the self-assessment may be judged, or
       ``(B) contains information that on its face indicates that 
     the self-assessment is substantially incorrect; and
       ``(2) the conduct referred to in paragraph (1)--
       ``(A) is based on a position which the Secretary has 
     identified as frivolous under subsection (c), or
       ``(B) reflects a desire to delay or impede the 
     administration of Federal tax laws.
       ``(b) Civil Penalty for Specified Frivolous Submissions.--
       ``(1) Imposition of penalty.--Except as provided in 
     paragraph (3), any person who submits a specified frivolous 
     submission shall pay a penalty of $5,000.
       ``(2) Specified frivolous submission.--For purposes of this 
     section--
       ``(A) Specified frivolous submission.--The term `specified 
     frivolous submission' means a specified submission if any 
     portion of such submission--
       ``(i) is based on a position which the Secretary has 
     identified as frivolous under subsection (c), or
       ``(ii) reflects a desire to delay or impede the 
     administration of Federal tax laws.
       ``(B) Specified submission.--The term `specified 
     submission' means--
       ``(i) a request for a hearing under--

       ``(I) section 6320 (relating to notice and opportunity for 
     hearing upon filing of notice of lien), or
       ``(II) section 6330 (relating to notice and opportunity for 
     hearing before levy), and

       ``(ii) an application under--

       ``(I) section 6159 (relating to agreements for payment of 
     tax liability in installments),
       ``(II) section 7122 (relating to compromises), or
       ``(III) section 7811 (relating to taxpayer assistance 
     orders).

       ``(3) Opportunity to withdraw submission.--If the Secretary 
     provides a person with notice that a submission is a 
     specified frivolous submission and such person withdraws such 
     submission within 30 days after such notice, the penalty 
     imposed under paragraph (1) shall not apply with respect to 
     such submission.
       ``(c) Listing of Frivolous Positions.--The Secretary shall 
     prescribe (and periodically revise) a list of positions which 
     the Secretary has identified as being frivolous for purposes 
     of this subsection. The Secretary shall not include in such 
     list any position that the Secretary determines meets the 
     requirement of section 6662(d)(2)(B)(ii)(II).
       ``(d) Reduction of Penalty.--The Secretary may reduce the 
     amount of any penalty imposed under this section if the 
     Secretary determines that such reduction would promote 
     compliance with and administration of the Federal tax laws.
       ``(e) Penalties in Addition to Other Penalties.--The 
     penalties imposed by this section shall be in addition to any 
     other penalty provided by law.''.
       (b) Treatment of Frivolous Requests for Hearings Before 
     Levy.--
       (1) Frivolous requests disregarded.--Section 6330 (relating 
     to notice and opportunity for hearing before levy) is amended 
     by adding at the end the following new subsection:
       ``(g) Frivolous Requests for Hearing, etc.--Notwithstanding 
     any other provision of this section, if the Secretary 
     determines that any portion of a request for a hearing under 
     this section or section 6320 meets the requirement of clause 
     (i) or (ii) of section 6702(b)(2)(A), then the Secretary may 
     treat such portion as if it were never submitted and such 
     portion shall not be subject to any further administrative or 
     judicial review.''.

[[Page 23229]]

       (2) Preclusion from raising frivolous issues at hearing.--
     Section 6330(c)(4) is amended--
       (A) by striking ``(A)'' and inserting ``(A)(i)'';
       (B) by striking ``(B)'' and inserting ``(ii)'';
       (C) by striking the period at the end of the first sentence 
     and inserting ``; or''; and
       (D) by inserting after subparagraph (A)(ii) (as so 
     redesignated) the following:
       ``(B) the issue meets the requirement of clause (i) or (ii) 
     of section 6702(b)(2)(A).''.
       (3) Statement of grounds.--Section 6330(b)(1) is amended by 
     striking ``under subsection (a)(3)(B)'' and inserting ``in 
     writing under subsection (a)(3)(B) and states the grounds for 
     the requested hearing''.
       (c) Treatment of Frivolous Requests for Hearings Upon 
     Filing of Notice of Lien.--Section 6320 is amended--
       (1) in subsection (b)(1), by striking ``under subsection 
     (a)(3)(B)'' and inserting ``in writing under subsection 
     (a)(3)(B) and states the grounds for the requested hearing'', 
     and
       (2) in subsection (c), by striking ``and (e)'' and 
     inserting ``(e), and (g)''.
       (d) Treatment of Frivolous Applications for Offers-in-
     Compromise and Installment Agreements.--Section 7122 is 
     amended by adding at the end the following new subsection:
       ``(e) Frivolous Submissions, etc.--Notwithstanding any 
     other provision of this section, if the Secretary determines 
     that any portion of an application for an offer-in-compromise 
     or installment agreement submitted under this section or 
     section 6159 meets the requirement of clause (i) or (ii) of 
     section 6702(b)(2)(A), then the Secretary may treat such 
     portion as if it were never submitted and such portion shall 
     not be subject to any further administrative or judicial 
     review.''.
       (e) Clerical Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by striking the item 
     relating to section 6702 and inserting the following new 
     item:

``Sec. 6702. Frivolous tax submissions.''.

       (f) Effective Date.--The amendments made by this section 
     shall apply to submissions made and issues raised after the 
     date on which the Secretary first prescribes a list under 
     section 6702(c) of the Internal Revenue Code of 1986, as 
     amended by subsection (a).

     SEC. __72. INCREASE IN CRIMINAL MONETARY PENALTY LIMITATION 
                   FOR THE UNDERPAYMENT OR OVERPAYMENT OF TAX DUE 
                   TO FRAUD.

       (a) In General.--Section 7206 (relating to fraud and false 
     statements) is amended--
       (1) by striking ``Any person who--'' and inserting ``(a) In 
     General.--Any person who--'', and
       (2) by adding at the end the following new subsection:
       ``(b) Increase in Monetary Limitation for Underpayment or 
     Overpayment of Tax Due to Fraud.--If any portion of any 
     underpayment (as defined in section 6664(a)) or overpayment 
     (as defined in section 6401(a)) of tax required to be shown 
     on a return is attributable to fraudulent action described in 
     subsection (a), the applicable dollar amount under subsection 
     (a) shall in no event be less than an amount equal to such 
     portion. A rule similar to the rule under section 6663(b) 
     shall apply for purposes of determining the portion so 
     attributable.''.
       (b) Increase in Penalties.--
       (1) Attempt to evade or defeat tax.--Section 7201 is 
     amended--
       (A) by striking ``$100,000'' and inserting ``$250,000'',
       (B) by striking ``$500,000'' and inserting ``$1,000,000'', 
     and
       (C) by striking ``5 years'' and inserting ``10 years''.
       (2) Willful failure to file return, supply information, or 
     pay tax.--Section 7203 is amended--
       (A) in the first sentence--
       (i) by striking ``misdemeanor'' and inserting ``felony'', 
     and
       (ii) by striking ``1 year'' and inserting ``10 years'', and
       (B) by striking the third sentence.
       (3) Fraud and false statements.--Section 7206(a) (as 
     redesignated by subsection (a)) is amended--
       (A) by striking ``$100,000'' and inserting ``$250,000'',
       (B) by striking ``$500,000'' and inserting ``$1,000,000'', 
     and
       (C) by striking ``3 years'' and inserting ``5 years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to underpayments and overpayments attributable to 
     actions occurring after the date of the enactment of this 
     Act.

     SEC. __73. MODIFICATION OF INTERACTION BETWEEN SUBPART F AND 
                   PASSIVE FOREIGN INVESTMENT COMPANY RULES.

       (a) Limitation on Exception From PFIC Rules for United 
     States Shareholders of Controlled Foreign Corporations.--
     Paragraph (2) of section 1297(e) (relating to passive foreign 
     investment company) is amended by adding at the end the 
     following flush sentence:

     ``Such term shall not include any period if the earning of 
     subpart F income by such corporation during such period would 
     result in only a remote likelihood of an inclusion in gross 
     income under section 951(a)(1)(A)(i).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years of controlled foreign 
     corporations beginning after March 2, 2005, and to taxable 
     years of United States shareholders with or within which such 
     taxable years of controlled foreign corporations end.

     SEC. __74. TAX TREATMENT OF INVERTED CORPORATE ENTITIES.

       (a) In General.--Subchapter C of chapter 80 (relating to 
     provisions affecting more than one subtitle) is amended by 
     striking section 7874 and inserting the following:

     ``SEC. 7874. RULES RELATING TO INVERTED CORPORATE ENTITIES.

       ``(a) Inverted Corporations Treated as Domestic 
     Corporations.--
       ``(1) In general.--If a foreign incorporated entity is 
     treated as an inverted domestic corporation, then, 
     notwithstanding section 7701(a)(4), such entity shall be 
     treated for purposes of this title as a domestic corporation.
       ``(2) Inverted domestic corporation.--For purposes of this 
     section, a foreign incorporated entity shall be treated as an 
     inverted domestic corporation if, pursuant to a plan (or a 
     series of related transactions)--
       ``(A) the entity completes after March 20, 2002, the direct 
     or indirect acquisition of substantially all of the 
     properties held directly or indirectly by a domestic 
     corporation or substantially all of the properties 
     constituting a trade or business of a domestic partnership,
       ``(B) after the acquisition at least 80 percent of the 
     stock (by vote or value) of the entity is held--
       ``(i) in the case of an acquisition with respect to a 
     domestic corporation, by former shareholders of the domestic 
     corporation by reason of holding stock in the domestic 
     corporation, or
       ``(ii) in the case of an acquisition with respect to a 
     domestic partnership, by former partners of the domestic 
     partnership by reason of holding a capital or profits 
     interest in the domestic partnership, and
       ``(C) the expanded affiliated group which after the 
     acquisition includes the entity does not have substantial 
     business activities in the foreign country in which or under 
     the law of which the entity is created or organized when 
     compared to the total business activities of such expanded 
     affiliated group.

     Except as provided in regulations, an acquisition of 
     properties of a domestic corporation shall not be treated as 
     described in subparagraph (A) if none of the corporation's 
     stock was readily tradeable on an established securities 
     market at any time during the 4-year period ending on the 
     date of the acquisition.
       ``(b) Preservation of Domestic Tax Base in Certain 
     Inversion Transactions to Which Subsection (a) Does Not 
     Apply.--
       ``(1) In general.--If a foreign incorporated entity would 
     be treated as an inverted domestic corporation with respect 
     to an acquired entity if either--
       ``(A) subsection (a)(2)(A) were applied by substituting 
     `after December 31, 1996, and on or before March 20, 2002' 
     for `after March 20, 2002' and subsection (a)(2)(B) were 
     applied by substituting `more than 50 percent' for `at least 
     80 percent', or
       ``(B) subsection (a)(2)(B) were applied by substituting 
     `more than 50 percent' for `at least 80 percent',

     then the rules of subsection (c) shall apply to any inversion 
     gain of the acquired entity during the applicable period and 
     the rules of subsection (d) shall apply to any related party 
     transaction of the acquired entity during the applicable 
     period. This subsection shall not apply for any taxable year 
     if subsection (a) applies to such foreign incorporated entity 
     for such taxable year.
       ``(2) Acquired entity.--For purposes of this section--
       ``(A) In general.--The term `acquired entity' means the 
     domestic corporation or partnership substantially all of the 
     properties of which are directly or indirectly acquired in an 
     acquisition described in subsection (a)(2)(A) to which this 
     subsection applies.
       ``(B) Aggregation rules.--Any domestic person bearing a 
     relationship described in section 267(b) or 707(b) to an 
     acquired entity shall be treated as an acquired entity with 
     respect to the acquisition described in subparagraph (A).
       ``(3) Applicable period.--For purposes of this section--
       ``(A) In general.--The term `applicable period' means the 
     period--
       ``(i) beginning on the first date properties are acquired 
     as part of the acquisition described in subsection (a)(2)(A) 
     to which this subsection applies, and
       ``(ii) ending on the date which is 10 years after the last 
     date properties are acquired as part of such acquisition.
       ``(B) Special rule for inversions occurring before march 
     21, 2002.--In the case of any acquired entity to which 
     paragraph (1)(A) applies, the applicable period shall be the 
     10-year period beginning on January 1, 2003.
       ``(c) Tax on Inversion Gains May Not Be Offset.--If 
     subsection (b) applies--
       ``(1) In general.--The taxable income of an acquired entity 
     (or any expanded affiliated group which includes such entity) 
     for any taxable year which includes any portion of the 
     applicable period shall in no event be less than the 
     inversion gain of the entity for the taxable year.

[[Page 23230]]

       ``(2) Credits not allowed against tax on inversion gain.--
     Credits shall be allowed against the tax imposed by this 
     chapter on an acquired entity for any taxable year described 
     in paragraph (1) only to the extent such tax exceeds the 
     product of--
       ``(A) the amount of the inversion gain for the taxable 
     year, and
       ``(B) the highest rate of tax specified in section 
     11(b)(1).

     For purposes of determining the credit allowed by section 901 
     inversion gain shall be treated as from sources within the 
     United States.
       ``(3) Special rules for partnerships.--In the case of an 
     acquired entity which is a partnership--
       ``(A) the limitations of this subsection shall apply at the 
     partner rather than the partnership level,
       ``(B) the inversion gain of any partner for any taxable 
     year shall be equal to the sum of--
       ``(i) the partner's distributive share of inversion gain of 
     the partnership for such taxable year, plus
       ``(ii) income or gain required to be recognized for the 
     taxable year by the partner under section 367(a), 741, or 
     1001, or under any other provision of chapter 1, by reason of 
     the transfer during the applicable period of any partnership 
     interest of the partner in such partnership to the foreign 
     incorporated entity, and
       ``(C) the highest rate of tax specified in the rate 
     schedule applicable to the partner under chapter 1 shall be 
     substituted for the rate of tax under paragraph (2)(B).
       ``(4) Inversion gain.--For purposes of this section, the 
     term `inversion gain' means any income or gain required to be 
     recognized under section 304, 311(b), 367, 1001, or 1248, or 
     under any other provision of chapter 1, by reason of the 
     transfer during the applicable period of stock or other 
     properties by an acquired entity--
       ``(A) as part of the acquisition described in subsection 
     (a)(2)(A) to which subsection (b) applies, or
       ``(B) after such acquisition to a foreign related person.

     The Secretary may provide that income or gain from the sale 
     of inventories or other transactions in the ordinary course 
     of a trade or business shall not be treated as inversion gain 
     under subparagraph (B) to the extent the Secretary determines 
     such treatment would not be inconsistent with the purposes of 
     this section.
       ``(5) Coordination with section 172 and minimum tax.--Rules 
     similar to the rules of paragraphs (3) and (4) of section 
     860E(a) shall apply for purposes of this section.
       ``(6) Statute of limitations.--
       ``(A) In general.--The statutory period for the assessment 
     of any deficiency attributable to the inversion gain of any 
     taxpayer for any pre-inversion year shall not expire before 
     the expiration of 3 years from the date the Secretary is 
     notified by the taxpayer (in such manner as the Secretary may 
     prescribe) of the acquisition described in subsection 
     (a)(2)(A) to which such gain relates and such deficiency may 
     be assessed before the expiration of such 3-year period 
     notwithstanding the provisions of any other law or rule of 
     law which would otherwise prevent such assessment.
       ``(B) Pre-inversion year.--For purposes of subparagraph 
     (A), the term `pre-inversion year' means any taxable year 
     if--
       ``(i) any portion of the applicable period is included in 
     such taxable year, and
       ``(ii) such year ends before the taxable year in which the 
     acquisition described in subsection (a)(2)(A) is completed.
       ``(d) Special Rules Applicable to Acquired Entities to 
     Which Subsection (b) Applies.--
       ``(1) Increases in accuracy-related penalties.--In the case 
     of any underpayment of tax of an acquired entity to which 
     subsection (b) applies--
       ``(A) section 6662(a) shall be applied with respect to such 
     underpayment by substituting `30 percent' for `20 percent', 
     and
       ``(B) if such underpayment is attributable to one or more 
     gross valuation understatements, the increase in the rate of 
     penalty under section 6662(h) shall be to 50 percent rather 
     than 40 percent.
       ``(2) Modifications of limitation on interest deduction.--
     In the case of an acquired entity to which subsection (b) 
     applies, section 163(j) shall be applied--
       ``(A) without regard to paragraph (2)(A)(ii) thereof, and
       ``(B) by substituting `25 percent' for `50 percent' each 
     place it appears in paragraph (2)(B) thereof.
       ``(e) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Rules for application of subsection (a)(2).--In 
     applying subsection (a)(2) for purposes of subsections (a) 
     and (b), the following rules shall apply:
       ``(A) Certain stock disregarded.--There shall not be taken 
     into account in determining ownership for purposes of 
     subsection (a)(2)(B)--
       ``(i) stock held by members of the expanded affiliated 
     group which includes the foreign incorporated entity, or
       ``(ii) stock of such entity which is sold in a public 
     offering or private placement related to the acquisition 
     described in subsection (a)(2)(A).
       ``(B) Plan deemed in certain cases.--If a foreign 
     incorporated entity acquires directly or indirectly 
     substantially all of the properties of a domestic corporation 
     or partnership during the 4-year period beginning on the date 
     which is 2 years before the ownership requirements of 
     subsection (a)(2)(B) are met with respect to such domestic 
     corporation or partnership, such actions shall be treated as 
     pursuant to a plan.
       ``(C) Certain transfers disregarded.--The transfer of 
     properties or liabilities (including by contribution or 
     distribution) shall be disregarded if such transfers are part 
     of a plan a principal purpose of which is to avoid the 
     purposes of this section.
       ``(D) Special rule for related partnerships.--For purposes 
     of applying subsection (a)(2) to the acquisition of a 
     domestic partnership, except as provided in regulations, all 
     partnerships which are under common control (within the 
     meaning of section 482) shall be treated as 1 partnership.
       ``(E) Treatment of certain rights.--The Secretary shall 
     prescribe such regulations as may be necessary--
       ``(i) to treat warrants, options, contracts to acquire 
     stock, convertible debt instruments, and other similar 
     interests as stock, and
       ``(ii) to treat stock as not stock.
       ``(2) Expanded affiliated group.--The term `expanded 
     affiliated group' means an affiliated group as defined in 
     section 1504(a) but without regard to section 1504(b)(3), 
     except that section 1504(a) shall be applied by substituting 
     `more than 50 percent' for `at least 80 percent' each place 
     it appears.
       ``(3) Foreign incorporated entity.--The term `foreign 
     incorporated entity' means any entity which is, or but for 
     subsection (a)(1) would be, treated as a foreign corporation 
     for purposes of this title.
       ``(4) Foreign related person.--The term `foreign related 
     person' means, with respect to any acquired entity, a foreign 
     person which--
       ``(A) bears a relationship to such entity described in 
     section 267(b) or 707(b), or
       ``(B) is under the same common control (within the meaning 
     of section 482) as such entity.
       ``(5) Subsequent acquisitions by unrelated domestic 
     corporations.--
       ``(A) In general.--Subject to such conditions, limitations, 
     and exceptions as the Secretary may prescribe, if, after an 
     acquisition described in subsection (a)(2)(A) to which 
     subsection (b) applies, a domestic corporation stock of which 
     is traded on an established securities market acquires 
     directly or indirectly any properties of one or more acquired 
     entities in a transaction with respect to which the 
     requirements of subparagraph (B) are met, this section shall 
     cease to apply to any such acquired entity with respect to 
     which such requirements are met.
       ``(B) Requirements.--The requirements of the subparagraph 
     are met with respect to a transaction involving any 
     acquisition described in subparagraph (A) if--
       ``(i) before such transaction the domestic corporation did 
     not have a relationship described in section 267(b) or 
     707(b), and was not under common control (within the meaning 
     of section 482), with the acquired entity, or any member of 
     an expanded affiliated group including such entity, and
       ``(ii) after such transaction, such acquired entity--

       ``(I) is a member of the same expanded affiliated group 
     which includes the domestic corporation or has such a 
     relationship or is under such common control with any member 
     of such group, and
       ``(II) is not a member of, and does not have such a 
     relationship and is not under such common control with any 
     member of, the expanded affiliated group which before such 
     acquisition included such entity.

       ``(f) Regulations.--The Secretary shall provide such 
     regulations as are necessary to carry out this section, 
     including regulations providing for such adjustments to the 
     application of this section as are necessary to prevent the 
     avoidance of the purposes of this section, including the 
     avoidance of such purposes through--
       ``(1) the use of related persons, pass-thru or other 
     noncorporate entities, or other intermediaries, or
       ``(2) transactions designed to have persons cease to be (or 
     not become) members of expanded affiliated groups or related 
     persons.''.
       (b) Information Reporting.--The Secretary of the Treasury 
     shall exercise the Secretary's authority under the Internal 
     Revenue Code of 1986 to require entities involved in 
     transactions to which section 7874 of such Code (as added by 
     subsection (a)) applies to report to the Secretary, 
     shareholders, partners, and such other persons as the 
     Secretary may prescribe such information as is necessary to 
     ensure the proper tax treatment of such transactions.
       (c) Conforming Amendment.--The table of sections for 
     subchapter C of chapter 80 is amended by striking the item 
     relating to section 7874 and inserting the following:

``Sec. 7874. Rules relating to inverted corporate entities.''.

       (d) Transition Rule for Certain Regulated Investment 
     Companies and Unit Investment Trusts.--Notwithstanding 
     section

[[Page 23231]]

     7874 of the Internal Revenue Code of 1986 (as added by 
     subsection (a)), a regulated investment company, or other 
     pooled fund or trust specified by the Secretary of the 
     Treasury, may elect to recognize gain by reason of section 
     367(a) of such Code with respect to a transaction under which 
     a foreign incorporated entity is treated as an inverted 
     domestic corporation under section 7874(a) of such Code by 
     reason of an acquisition completed after March 20, 2002, and 
     before January 1, 2004.
       (e) Disclosure of Corporate Expatriation Transactions.--
       (1) In general.--Section 14 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78n) is amended by adding at the end the 
     following new subsection:
       ``(i) Proxy Solicitations in Connection With Corporate 
     Expatriation Transactions.--
       ``(1) Disclosure to shareholders of effects of corporate 
     expatriation transaction.--The Commission shall, by rule, 
     require that each domestic issuer shall prominently disclose, 
     not later than 5 business days before any shareholder vote 
     relating to a corporate expatriation transaction, as a 
     separate and distinct document accompanying each proxy 
     statement relating to the transaction--
       ``(A) the number of employees of the domestic issuer that 
     would be located in the new foreign jurisdiction of 
     incorporation or organization of that issuer upon completion 
     of the corporate expatriation transaction;
       ``(B) how the rights of holders of the securities of the 
     domestic issuer would be impacted by a completed corporate 
     expatriation transaction, and any differences in such rights 
     before and after a completed corporate expatriation 
     transaction; and
       ``(C) that, as a result of a completed corporate 
     expatriation transaction, any taxable holder of the 
     securities of the domestic issuer shall be subject to the 
     taxation of any capital gains realized with respect to such 
     securities, and the amount of any such capital gains tax that 
     would apply as a result of the transaction.
       ``(2) Definitions.--In this subsection, the following 
     definitions shall apply:
       ``(A) Corporate expatriation transaction.--The term 
     `corporate expatriation transaction' means any transaction, 
     or series of related transactions, described in subsection 
     (a) or (b) of section 7874 of the Internal Revenue Code of 
     1986.
       ``(A) Domestic issuer.--The term `domestic issuer' means an 
     issuer created or organized in the United States or under the 
     law of the United States or of any State.''
       (2) Effective date.--Section 14(i) of the Securities 
     Exchange Act of 1934 (as added by this subsection) shall 
     apply with respect to corporate expatriation transactions (as 
     defined in that section 14(i)) proposed on and after the date 
     of enactment of this Act.
       (f) Effective date.--Except as provided in subsection 
     (e)(2), the amendments made by this section shall take effect 
     as if included in the American Jobs Creation Act of 2004.

     SEC. __75. IMPOSITION OF MARK-TO-MARKET TAX ON INDIVIDUALS 
                   WHO EXPATRIATE.

       (a) In General.--Subpart A of part II of subchapter N of 
     chapter 1 is amended by inserting after section 877 the 
     following new section:

     ``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

       ``(a) General Rules.--For purposes of this subtitle--
       ``(1) Mark to market.--Except as provided in subsections 
     (d) and (f), all property of a covered expatriate to whom 
     this section applies shall be treated as sold on the day 
     before the expatriation date for its fair market value.
       ``(2) Recognition of gain or loss.--In the case of any sale 
     under paragraph (1)--
       ``(A) notwithstanding any other provision of this title, 
     any gain arising from such sale shall be taken into account 
     for the taxable year of the sale, and
       ``(B) any loss arising from such sale shall be taken into 
     account for the taxable year of the sale to the extent 
     otherwise provided by this title, except that section 1091 
     shall not apply to any such loss.

     Proper adjustment shall be made in the amount of any gain or 
     loss subsequently realized for gain or loss taken into 
     account under the preceding sentence.
       ``(3) Exclusion for certain gain.--
       ``(A) In general.--The amount which, but for this 
     paragraph, would be includible in the gross income of any 
     individual by reason of this section shall be reduced (but 
     not below zero) by $600,000. For purposes of this paragraph, 
     allocable expatriation gain taken into account under 
     subsection (f)(2) shall be treated in the same manner as an 
     amount required to be includible in gross income.
       ``(B) Cost-of-living adjustment.--
       ``(i) In general.--In the case of an expatriation date 
     occurring in any calendar year after 2004, the $600,000 
     amount under subparagraph (A) shall be increased by an amount 
     equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year, determined by 
     substituting `calendar year 2003' for `calendar year 1992' in 
     subparagraph (B) thereof.

       ``(ii) Rounding rules.--If any amount after adjustment 
     under clause (i) is not a multiple of $1,000, such amount 
     shall be rounded to the next lower multiple of $1,000.
       ``(4) Election to continue to be taxed as united states 
     citizen.--
       ``(A) In general.--If a covered expatriate elects the 
     application of this paragraph--
       ``(i) this section (other than this paragraph and 
     subsection (i)) shall not apply to the expatriate, but
       ``(ii) in the case of property to which this section would 
     apply but for such election, the expatriate shall be subject 
     to tax under this title in the same manner as if the 
     individual were a United States citizen.
       ``(B) Requirements.--Subparagraph (A) shall not apply to an 
     individual unless the individual--
       ``(i) provides security for payment of tax in such form and 
     manner, and in such amount, as the Secretary may require,
       ``(ii) consents to the waiver of any right of the 
     individual under any treaty of the United States which would 
     preclude assessment or collection of any tax which may be 
     imposed by reason of this paragraph, and
       ``(iii) complies with such other requirements as the 
     Secretary may prescribe.
       ``(C) Election.--An election under subparagraph (A) shall 
     apply to all property to which this section would apply but 
     for the election and, once made, shall be irrevocable. Such 
     election shall also apply to property the basis of which is 
     determined in whole or in part by reference to the property 
     with respect to which the election was made.
       ``(b) Election To Defer Tax.--
       ``(1) In general.--If the taxpayer elects the application 
     of this subsection with respect to any property treated as 
     sold by reason of subsection (a), the payment of the 
     additional tax attributable to such property shall be 
     postponed until the due date of the return for the taxable 
     year in which such property is disposed of (or, in the case 
     of property disposed of in a transaction in which gain is not 
     recognized in whole or in part, until such other date as the 
     Secretary may prescribe).
       ``(2) Determination of tax with respect to property.--For 
     purposes of paragraph (1), the additional tax attributable to 
     any property is an amount which bears the same ratio to the 
     additional tax imposed by this chapter for the taxable year 
     solely by reason of subsection (a) as the gain taken into 
     account under subsection (a) with respect to such property 
     bears to the total gain taken into account under subsection 
     (a) with respect to all property to which subsection (a) 
     applies.
       ``(3) Termination of postponement.--No tax may be postponed 
     under this subsection later than the due date for the return 
     of tax imposed by this chapter for the taxable year which 
     includes the date of death of the expatriate (or, if earlier, 
     the time that the security provided with respect to the 
     property fails to meet the requirements of paragraph (4), 
     unless the taxpayer corrects such failure within the time 
     specified by the Secretary).
       ``(4) Security.--
       ``(A) In general.--No election may be made under paragraph 
     (1) with respect to any property unless adequate security is 
     provided to the Secretary with respect to such property.
       ``(B) Adequate security.--For purposes of subparagraph (A), 
     security with respect to any property shall be treated as 
     adequate security if--
       ``(i) it is a bond in an amount equal to the deferred tax 
     amount under paragraph (2) for the property, or
       ``(ii) the taxpayer otherwise establishes to the 
     satisfaction of the Secretary that the security is adequate.
       ``(5) Waiver of certain rights.--No election may be made 
     under paragraph (1) unless the taxpayer consents to the 
     waiver of any right under any treaty of the United States 
     which would preclude assessment or collection of any tax 
     imposed by reason of this section.
       ``(6) Elections.--An election under paragraph (1) shall 
     only apply to property described in the election and, once 
     made, is irrevocable. An election may be made under paragraph 
     (1) with respect to an interest in a trust with respect to 
     which gain is required to be recognized under subsection 
     (f)(1).
       ``(7) Interest.--For purposes of section 6601--
       ``(A) the last date for the payment of tax shall be 
     determined without regard to the election under this 
     subsection, and
       ``(B) section 6621(a)(2) shall be applied by substituting 
     `5 percentage points' for `3 percentage points' in 
     subparagraph (B) thereof.
       ``(c) Covered Expatriate.--For purposes of this section--
       ``(1) In general.--Except as provided in paragraph (2), the 
     term `covered expatriate' means an expatriate.
       ``(2) Exceptions.--An individual shall not be treated as a 
     covered expatriate if--
       ``(A) the individual--
       ``(i) became at birth a citizen of the United States and a 
     citizen of another country and, as of the expatriation date, 
     continues to be a citizen of, and is taxed as a resident of, 
     such other country, and
       ``(ii) has not been a resident of the United States (as 
     defined in section 7701(b)(1)(A)(ii)) during the 5 taxable 
     years ending with the taxable year during which the 
     expatriation date occurs, or

[[Page 23232]]

       ``(B)(i) the individual's relinquishment of United States 
     citizenship occurs before such individual attains age 18\1/
     2\, and
       ``(ii) the individual has been a resident of the United 
     States (as so defined) for not more than 5 taxable years 
     before the date of relinquishment.
       ``(d) Exempt Property; Special Rules for Pension Plans.--
       ``(1) Exempt property.--This section shall not apply to the 
     following:
       ``(A) United states real property interests.--Any United 
     States real property interest (as defined in section 
     897(c)(1)), other than stock of a United States real property 
     holding corporation which does not, on the day before the 
     expatriation date, meet the requirements of section 
     897(c)(2).
       ``(B) Specified property.--Any property or interest in 
     property not described in subparagraph (A) which the 
     Secretary specifies in regulations.
       ``(2) Special rules for certain retirement plans.--
       ``(A) In general.--If a covered expatriate holds on the day 
     before the expatriation date any interest in a retirement 
     plan to which this paragraph applies--
       ``(i) such interest shall not be treated as sold for 
     purposes of subsection (a)(1), but
       ``(ii) an amount equal to the present value of the 
     expatriate's nonforfeitable accrued benefit shall be treated 
     as having been received by such individual on such date as a 
     distribution under the plan.
       ``(B) Treatment of subsequent distributions.--In the case 
     of any distribution on or after the expatriation date to or 
     on behalf of the covered expatriate from a plan from which 
     the expatriate was treated as receiving a distribution under 
     subparagraph (A), the amount otherwise includible in gross 
     income by reason of the subsequent distribution shall be 
     reduced by the excess of the amount includible in gross 
     income under subparagraph (A) over any portion of such amount 
     to which this subparagraph previously applied.
       ``(C) Treatment of subsequent distributions by plan.--For 
     purposes of this title, a retirement plan to which this 
     paragraph applies, and any person acting on the plan's 
     behalf, shall treat any subsequent distribution described in 
     subparagraph (B) in the same manner as such distribution 
     would be treated without regard to this paragraph.
       ``(D) Applicable plans.--This paragraph shall apply to--
       ``(i) any qualified retirement plan (as defined in section 
     4974(c)),
       ``(ii) an eligible deferred compensation plan (as defined 
     in section 457(b)) of an eligible employer described in 
     section 457(e)(1)(A), and
       ``(iii) to the extent provided in regulations, any foreign 
     pension plan or similar retirement arrangements or programs.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Expatriate.--The term `expatriate' means--
       ``(A) any United States citizen who relinquishes 
     citizenship, and
       ``(B) any long-term resident of the United States who--
       ``(i) ceases to be a lawful permanent resident of the 
     United States (within the meaning of section 7701(b)(6)), or
       ``(ii) commences to be treated as a resident of a foreign 
     country under the provisions of a tax treaty between the 
     United States and the foreign country and who does not waive 
     the benefits of such treaty applicable to residents of the 
     foreign country.
       ``(2) Expatriation date.--The term `expatriation date' 
     means--
       ``(A) the date an individual relinquishes United States 
     citizenship, or
       ``(B) in the case of a long-term resident of the United 
     States, the date of the event described in clause (i) or (ii) 
     of paragraph (1)(B).
       ``(3) Relinquishment of citizenship.--A citizen shall be 
     treated as relinquishing United States citizenship on the 
     earliest of--
       ``(A) the date the individual renounces such individual's 
     United States nationality before a diplomatic or consular 
     officer of the United States pursuant to paragraph (5) of 
     section 349(a) of the Immigration and Nationality Act (8 
     U.S.C. 1481(a)(5)),
       ``(B) the date the individual furnishes to the United 
     States Department of State a signed statement of voluntary 
     relinquishment of United States nationality confirming the 
     performance of an act of expatriation specified in paragraph 
     (1), (2), (3), or (4) of section 349(a) of the Immigration 
     and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
       ``(C) the date the United States Department of State issues 
     to the individual a certificate of loss of nationality, or
       ``(D) the date a court of the United States cancels a 
     naturalized citizen's certificate of naturalization.

     Subparagraph (A) or (B) shall not apply to any individual 
     unless the renunciation or voluntary relinquishment is 
     subsequently approved by the issuance to the individual of a 
     certificate of loss of nationality by the United States 
     Department of State.
       ``(4) Long-term resident.--The term `long-term resident' 
     has the meaning given to such term by section 877(e)(2).
       ``(f) Special Rules Applicable to Beneficiaries' Interests 
     in Trust.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     an individual is determined under paragraph (3) to hold an 
     interest in a trust on the day before the expatriation date--
       ``(A) the individual shall not be treated as having sold 
     such interest,
       ``(B) such interest shall be treated as a separate share in 
     the trust, and
       ``(C)(i) such separate share shall be treated as a separate 
     trust consisting of the assets allocable to such share,
       ``(ii) the separate trust shall be treated as having sold 
     its assets on the day before the expatriation date for their 
     fair market value and as having distributed all of its assets 
     to the individual as of such time, and
       ``(iii) the individual shall be treated as having 
     recontributed the assets to the separate trust.

     Subsection (a)(2) shall apply to any income, gain, or loss of 
     the individual arising from a distribution described in 
     subparagraph (C)(ii). In determining the amount of such 
     distribution, proper adjustments shall be made for 
     liabilities of the trust allocable to an individual's share 
     in the trust.
       ``(2) Special rules for interests in qualified trusts.--
       ``(A) In general.--If the trust interest described in 
     paragraph (1) is an interest in a qualified trust--
       ``(i) paragraph (1) and subsection (a) shall not apply, and
       ``(ii) in addition to any other tax imposed by this title, 
     there is hereby imposed on each distribution with respect to 
     such interest a tax in the amount determined under 
     subparagraph (B).
       ``(B) Amount of tax.--The amount of tax under subparagraph 
     (A)(ii) shall be equal to the lesser of--
       ``(i) the highest rate of tax imposed by section 1(e) for 
     the taxable year which includes the day before the 
     expatriation date, multiplied by the amount of the 
     distribution, or
       ``(ii) the balance in the deferred tax account immediately 
     before the distribution determined without regard to any 
     increases under subparagraph (C)(ii) after the 30th day 
     preceding the distribution.
       ``(C) Deferred tax account.--For purposes of subparagraph 
     (B)(ii)--
       ``(i) Opening balance.--The opening balance in a deferred 
     tax account with respect to any trust interest is an amount 
     equal to the tax which would have been imposed on the 
     allocable expatriation gain with respect to the trust 
     interest if such gain had been included in gross income under 
     subsection (a).
       ``(ii) Increase for interest.--The balance in the deferred 
     tax account shall be increased by the amount of interest 
     determined (on the balance in the account at the time the 
     interest accrues), for periods after the 90th day after the 
     expatriation date, by using the rates and method applicable 
     under section 6621 for underpayments of tax for such periods, 
     except that section 6621(a)(2) shall be applied by 
     substituting `5 percentage points' for `3 percentage points' 
     in subparagraph (B) thereof.
       ``(iii) Decrease for taxes previously paid.--The balance in 
     the tax deferred account shall be reduced--

       ``(I) by the amount of taxes imposed by subparagraph (A) on 
     any distribution to the person holding the trust interest, 
     and
       ``(II) in the case of a person holding a nonvested 
     interest, to the extent provided in regulations, by the 
     amount of taxes imposed by subparagraph (A) on distributions 
     from the trust with respect to nonvested interests not held 
     by such person.

       ``(D) Allocable expatriation gain.--For purposes of this 
     paragraph, the allocable expatriation gain with respect to 
     any beneficiary's interest in a trust is the amount of gain 
     which would be allocable to such beneficiary's vested and 
     nonvested interests in the trust if the beneficiary held 
     directly all assets allocable to such interests.
       ``(E) Tax deducted and withheld.--
       ``(i) In general.--The tax imposed by subparagraph (A)(ii) 
     shall be deducted and withheld by the trustees from the 
     distribution to which it relates.
       ``(ii) Exception where failure to waive treaty rights.--If 
     an amount may not be deducted and withheld under clause (i) 
     by reason of the distributee failing to waive any treaty 
     right with respect to such distribution--

       ``(I) the tax imposed by subparagraph (A)(ii) shall be 
     imposed on the trust and each trustee shall be personally 
     liable for the amount of such tax, and
       ``(II) any other beneficiary of the trust shall be entitled 
     to recover from the distributee the amount of such tax 
     imposed on the other beneficiary.

       ``(F) Disposition.--If a trust ceases to be a qualified 
     trust at any time, a covered expatriate disposes of an 
     interest in a qualified trust, or a covered expatriate 
     holding an interest in a qualified trust dies, then, in lieu 
     of the tax imposed by subparagraph (A)(ii), there is hereby 
     imposed a tax equal to the lesser of--
       ``(i) the tax determined under paragraph (1) as if the day 
     before the expatriation date were the date of such cessation, 
     disposition, or death, whichever is applicable, or
       ``(ii) the balance in the tax deferred account immediately 
     before such date.


[[Page 23233]]


     Such tax shall be imposed on the trust and each trustee shall 
     be personally liable for the amount of such tax and any other 
     beneficiary of the trust shall be entitled to recover from 
     the covered expatriate or the estate the amount of such tax 
     imposed on the other beneficiary.
       ``(G) Definitions and special rules.--For purposes of this 
     paragraph--
       ``(i) Qualified trust.--The term `qualified trust' means a 
     trust which is described in section 7701(a)(30)(E).
       ``(ii) Vested interest.--The term `vested interest' means 
     any interest which, as of the day before the expatriation 
     date, is vested in the beneficiary.
       ``(iii) Nonvested interest.--The term `nonvested interest' 
     means, with respect to any beneficiary, any interest in a 
     trust which is not a vested interest. Such interest shall be 
     determined by assuming the maximum exercise of discretion in 
     favor of the beneficiary and the occurrence of all 
     contingencies in favor of the beneficiary.
       ``(iv) Adjustments.--The Secretary may provide for such 
     adjustments to the bases of assets in a trust or a deferred 
     tax account, and the timing of such adjustments, in order to 
     ensure that gain is taxed only once.
       ``(v) Coordination with retirement plan rules.--This 
     subsection shall not apply to an interest in a trust which is 
     part of a retirement plan to which subsection (d)(2) applies.
       ``(3) Determination of beneficiaries' interest in trust.--
       ``(A) Determinations under paragraph (1).--For purposes of 
     paragraph (1), a beneficiary's interest in a trust shall be 
     based upon all relevant facts and circumstances, including 
     the terms of the trust instrument and any letter of wishes or 
     similar document, historical patterns of trust distributions, 
     and the existence of and functions performed by a trust 
     protector or any similar adviser.
       ``(B) Other determinations.--For purposes of this section--
       ``(i) Constructive ownership.--If a beneficiary of a trust 
     is a corporation, partnership, trust, or estate, the 
     shareholders, partners, or beneficiaries shall be deemed to 
     be the trust beneficiaries for purposes of this section.
       ``(ii) Taxpayer return position.--A taxpayer shall clearly 
     indicate on its income tax return--

       ``(I) the methodology used to determine that taxpayer's 
     trust interest under this section, and
       ``(II) if the taxpayer knows (or has reason to know) that 
     any other beneficiary of such trust is using a different 
     methodology to determine such beneficiary's trust interest 
     under this section.

       ``(g) Termination of Deferrals, etc.--In the case of any 
     covered expatriate, notwithstanding any other provision of 
     this title--
       ``(1) any period during which recognition of income or gain 
     is deferred shall terminate on the day before the 
     expatriation date, and
       ``(2) any extension of time for payment of tax shall cease 
     to apply on the day before the expatriation date and the 
     unpaid portion of such tax shall be due and payable at the 
     time and in the manner prescribed by the Secretary.
       ``(h) Imposition of Tentative Tax.--
       ``(1) In general.--If an individual is required to include 
     any amount in gross income under subsection (a) for any 
     taxable year, there is hereby imposed, immediately before the 
     expatriation date, a tax in an amount equal to the amount of 
     tax which would be imposed if the taxable year were a short 
     taxable year ending on the expatriation date.
       ``(2) Due date.--The due date for any tax imposed by 
     paragraph (1) shall be the 90th day after the expatriation 
     date.
       ``(3) Treatment of tax.--Any tax paid under paragraph (1) 
     shall be treated as a payment of the tax imposed by this 
     chapter for the taxable year to which subsection (a) applies.
       ``(4) Deferral of tax.--The provisions of subsection (b) 
     shall apply to the tax imposed by this subsection to the 
     extent attributable to gain includible in gross income by 
     reason of this section.
       ``(i) Special Liens for Deferred Tax Amounts.--
       ``(1) Imposition of lien.--
       ``(A) In general.--If a covered expatriate makes an 
     election under subsection (a)(4) or (b) which results in the 
     deferral of any tax imposed by reason of subsection (a), the 
     deferred amount (including any interest, additional amount, 
     addition to tax, assessable penalty, and costs attributable 
     to the deferred amount) shall be a lien in favor of the 
     United States on all property of the expatriate located in 
     the United States (without regard to whether this section 
     applies to the property).
       ``(B) Deferred amount.--For purposes of this subsection, 
     the deferred amount is the amount of the increase in the 
     covered expatriate's income tax which, but for the election 
     under subsection (a)(4) or (b), would have occurred by reason 
     of this section for the taxable year including the 
     expatriation date.
       ``(2) Period of lien.--The lien imposed by this subsection 
     shall arise on the expatriation date and continue until--
       ``(A) the liability for tax by reason of this section is 
     satisfied or has become unenforceable by reason of lapse of 
     time, or
       ``(B) it is established to the satisfaction of the 
     Secretary that no further tax liability may arise by reason 
     of this section.
       ``(3) Certain rules apply.--The rules set forth in 
     paragraphs (1), (3), and (4) of section 6324A(d) shall apply 
     with respect to the lien imposed by this subsection as if it 
     were a lien imposed by section 6324A.
       ``(j) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (b) Inclusion in Income of Gifts and Bequests Received by 
     United States Citizens and Residents From Expatriates.--
     Section 102 (relating to gifts, etc. not included in gross 
     income) is amended by adding at the end the following new 
     subsection:
       ``(d) Gifts and Inheritances From Covered Expatriates.--
       ``(1) In general.--Subsection (a) shall not exclude from 
     gross income the value of any property acquired by gift, 
     bequest, devise, or inheritance from a covered expatriate 
     after the expatriation date. For purposes of this subsection, 
     any term used in this subsection which is also used in 
     section 877A shall have the same meaning as when used in 
     section 877A.
       ``(2) Exceptions for transfers otherwise subject to estate 
     or gift tax.--Paragraph (1) shall not apply to any property 
     if either--
       ``(A) the gift, bequest, devise, or inheritance is--
       ``(i) shown on a timely filed return of tax imposed by 
     chapter 12 as a taxable gift by the covered expatriate, or
       ``(ii) included in the gross estate of the covered 
     expatriate for purposes of chapter 11 and shown on a timely 
     filed return of tax imposed by chapter 11 of the estate of 
     the covered expatriate, or
       ``(B) no such return was timely filed but no such return 
     would have been required to be filed even if the covered 
     expatriate were a citizen or long-term resident of the United 
     States.''.
       (c) Definition of Termination of United States 
     Citizenship.--Section 7701(a) is amended by adding at the end 
     the following new paragraph:
       ``(48) Termination of united states citizenship.--
       ``(A) In general.--An individual shall not cease to be 
     treated as a United States citizen before the date on which 
     the individual's citizenship is treated as relinquished under 
     section 877A(e)(3).
       ``(B) Dual citizens.--Under regulations prescribed by the 
     Secretary, subparagraph (A) shall not apply to an individual 
     who became at birth a citizen of the United States and a 
     citizen of another country.''.
       (d) Ineligibility for Visa or Admission to United States.--
       (1) In general.--Section 212(a)(10)(E) of the Immigration 
     and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to 
     read as follows:
       ``(E) Former citizens not in compliance with expatriation 
     revenue provisions.--Any alien who is a former citizen of the 
     United States who relinquishes United States citizenship 
     (within the meaning of section 877A(e)(3) of the Internal 
     Revenue Code of 1986) and who is not in compliance with 
     section 877A of such Code (relating to expatriation).''.
       (2) Availability of information.--
       (A) In general.--Section 6103(l) (relating to disclosure of 
     returns and return information for purposes other than tax 
     administration) is amended by adding at the end the following 
     new paragraph:
       ``(19) Disclosure to deny visa or admission to certain 
     expatriates.--Upon written request of the Attorney General or 
     the Attorney General's delegate, the Secretary shall disclose 
     whether an individual is in compliance with section 877A (and 
     if not in compliance, any items of noncompliance) to officers 
     and employees of the Federal agency responsible for 
     administering section 212(a)(10)(E) of the Immigration and 
     Nationality Act solely for the purpose of, and to the extent 
     necessary in, administering such section 212(a)(10)(E).''.
       (B) Safeguards.--
       (i) Technical amendments.--Paragraph (4) of section 6103(p) 
     of the Internal Revenue Code of 1986, as amended by section 
     202(b)(2)(B) of the Trade Act of 2002 (Public Law 107-210; 
     116 Stat. 961), is amended by striking ``or (17)'' after 
     ``any other person described in subsection (l)(16)'' each 
     place it appears and inserting ``or (18)''.
       (ii) Conforming amendments.--Section 6103(p)(4) (relating 
     to safeguards), as amended by clause (i), is amended by 
     striking ``or (18)'' after ``any other person described in 
     subsection (l)(16)'' each place it appears and inserting 
     ``(18), or (19)''.
       (3) Effective dates.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by this subsection shall apply to 
     individuals who relinquish United States citizenship on or 
     after the date of the enactment of this Act.
       (B) Technical amendments.--The amendments made by paragraph 
     (2)(B)(i) shall take effect as if included in the amendments 
     made by section 202(b)(2)(B) of the Trade Act of 2002 (Public 
     Law 107-210; 116 Stat. 961).

[[Page 23234]]

       (e) Conforming Amendments.--
       (1) Section 877 is amended by adding at the end the 
     following new subsection:
       ``(g) Application.--This section shall not apply to an 
     expatriate (as defined in section 877A(e)) whose expatriation 
     date (as so defined) occurs on or after April 1, 2005.''.
       (2) Section 2107 is amended by adding at the end the 
     following new subsection:
       ``(f) Application.--This section shall not apply to any 
     expatriate subject to section 877A.''.
       (3) Section 2501(a)(3) is amended by adding at the end the 
     following new subparagraph:
       ``(F) Application.--This paragraph shall not apply to any 
     expatriate subject to section 877A.''.
       (4)(A) Paragraph (1) of section 6039G(d) is amended by 
     inserting ``or 877A'' after ``section 877''.
       (B) The second sentence of section 6039G(e) is amended by 
     inserting ``or who relinquishes United States citizenship 
     (within the meaning of section 877A(e)(3))'' after 
     ``877(a))''.
       (C) Section 6039G(f) is amended by inserting ``or 
     877A(e)(2)(B)'' after ``877(e)(1)''.
       (f) Clerical Amendment.--The table of sections for subpart 
     A of part II of subchapter N of chapter 1 is amended by 
     inserting after the item relating to section 877 the 
     following new item:

``Sec. 877A. Tax responsibilities of expatriation.''.

       (g) Effective Date.--
       (1) In general.--Except as provided in this subsection, the 
     amendments made by this section shall apply to expatriates 
     (within the meaning of section 877A(e) of the Internal 
     Revenue Code of 1986, as added by this section) whose 
     expatriation date (as so defined) occurs on or after April 1, 
     2005.
       (2) Gifts and bequests.--Section 102(d) of the Internal 
     Revenue Code of 1986 (as added by subsection (b)) shall apply 
     to gifts and bequests received on or after April 1, 2005, 
     from an individual or the estate of an individual whose 
     expatriation date (as so defined) occurs after such date.
       (3) Due date for tentative tax.--The due date under section 
     877A(h)(2) of the Internal Revenue Code of 1986, as added by 
     this section, shall in no event occur before the 90th day 
     after the date of the enactment of this Act.

     SEC. __76. DOUBLING OF CERTAIN PENALTIES, FINES, AND INTEREST 
                   ON UNDERPAYMENTS RELATED TO CERTAIN OFFSHORE 
                   FINANCIAL ARRANGEMENT.

       (a) Determination of Penalty.--
       (1) In general.--Notwithstanding any other provision of 
     law, in the case of an applicable taxpayer--
       (A) the determination as to whether any interest or 
     applicable penalty is to be imposed with respect to any 
     arrangement to which any initiative described in paragraph 
     (2) applied, or to any underpayment of Federal income tax 
     attributable to items arising in connection with any 
     arrangement described in paragraph (2), shall be made without 
     regard to section 6664 of the Internal Revenue Code of 1986, 
     and
       (B) if any such interest or applicable penalty is imposed, 
     the amount of such interest or penalty shall be equal to 
     twice that determined without regard to this section.
       (2) Applicable taxpayer.--For purposes of this subsection, 
     the term ``applicable taxpayer'' means a taxpayer eligible to 
     participate in--
       (A) the Department of the Treasury's Offshore Voluntary 
     Compliance Initiative, or
       (B) the Department of the Treasury's voluntary disclosure 
     initiative which applies to the taxpayer by reason of the 
     taxpayer's underreporting of United States income tax 
     liability through financial arrangements which rely on the 
     use of offshore arrangements which were the subject of the 
     initiative described in subparagraph (A).
       (b) Definitions and Rules.--For purposes of this section--
       (1) Applicable penalty.--The term ``applicable penalty'' 
     means any penalty, addition to tax, or fine imposed under 
     chapter 68 of the Internal Revenue Code of 1986.
       (2) Voluntary offshore compliance initiative.--The term 
     ``Voluntary Offshore Compliance Initiative'' means the 
     program established by the Department of the Treasury in 
     January of 2003 under which any taxpayer was eligible to 
     voluntarily disclose previously undisclosed income on assets 
     placed in offshore accounts and accessed through credit card 
     and other financial arrangements.
       (3) Participation.--A taxpayer shall be treated as having 
     participated in the Voluntary Offshore Compliance Initiative 
     if the taxpayer submitted the request in a timely manner and 
     all information requested by the Secretary of the Treasury or 
     his delegate within a reasonable period of time following the 
     request.
       (c) Effective Date.--The provisions of this section shall 
     apply to interest, penalties, additions to tax, and fines 
     with respect to any taxable year if as of the date of the 
     enactment of this Act, the assessment of any tax, penalty, or 
     interest with respect to such taxable year is not prevented 
     by the operation of any law or rule of law.

     SEC. __77. TREASURY REGULATIONS ON FOREIGN TAX CREDIT.

       Section 901 is amended by redesignating subsection (m) as 
     subsection (n) and by inserting after subsection (l) the 
     following new subsection:
       ``(m) Regulations.--The Secretary may prescribe regulations 
     disallowing a credit under subsection (a) for all or a 
     portion of any foreign tax, or allocating a foreign tax among 
     2 or more persons, in cases where the foreign tax is imposed 
     on any person in respect of income of another person or in 
     other cases involving the inappropriate separation of the 
     foreign tax from the related foreign income.''.

     SEC. __78. TREATMENT OF CONTINGENT PAYMENT CONVERTIBLE DEBT 
                   INSTRUMENTS.

       (a) In General.--Section 1275(d) (relating to regulation 
     authority) is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Treatment of contingent payment convertible debt.--
       ``(A) In general.--In the case of a debt instrument which--
       ``(i) is convertible into stock of the issuing corporation, 
     into stock or debt of a related party (within the meaning of 
     section 267(b) or 707(b)(1)), or into cash or other property 
     in an amount equal to the approximate value of such stock or 
     debt, and
       ``(ii) provides for contingent payments,

     any regulations which require original issue discount to be 
     determined by reference to the comparable yield of a 
     noncontingent fixed rate debt instrument shall be applied as 
     requiring that such comparable yield be determined by 
     reference to a noncontingent fixed rate debt instrument which 
     is convertible into stock.
       ``(B) Special rule.--For purposes of subparagraph (A), the 
     comparable yield shall be determined without taking into 
     account the yield resulting from the conversion of a debt 
     instrument into stock.''.
       (b) Cross Reference.--Section 163(e)(6) (relating to cross 
     references) is amended by adding at the end the following:
       ``For the treatment of contingent payment convertible debt, 
     see section 1275(d)(2).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to debt instruments issued on or after the date 
     of the enactment of this Act.
                                 ______
                                 
  SA 2116. Mr. LUGAR submitted an amendment intended to be proposed by 
him to the bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 311, line 19, strike the period and insert ``: 
     Provided further, That of the funds provided under this 
     paragraph $250,000 shall be available for the Learning 
     Collaborative, to implement the Web Portal Technology 
     Development Initiative in Daviess County schools (not for 
     Daviess County generally).''.
                                 ______
                                 
  SA 2117. Mrs. CLINTON submitted an amendment intended to be proposed 
by her to the bill H.R. 3058, making appropriations for the Departments 
of Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 244, line 17, insert ``, of which $5,000,000 shall 
     be made available to carry out the grant program authorized 
     under section 158(b) of the National Telecommunications and 
     Information Administration Organization Act (47 U.S.C. 
     942(b)) and not more than 10 percent of this amount may be 
     used for administrative purposes:'' after ``Highway Trust 
     Fund:''.
                                 ______
                                 
  SA 2118. Mr. DORGAN submitted an amendment intended to be proposed by 
him to the bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 276, after line 24, add the following:
       Sec. 18__. Notwithstanding any other provision of law, a 
     vehicle that, with respect to weight or weight distribution 
     characteristics, could lawfully operate in the State of North 
     Dakota as of January 1, 2004, on United States Highway 52 
     (including the United States Highway 52 bypass of Jamestown, 
     North Dakota) or on United States Highway 281 may operate on 
     Interstate Route 94 in North Dakota between the intersection 
     of Interstate Route 94 and United States Route 281 and the 
     intersection of Interstate Route 94 and the United States 
     Highway 52 bypass (including interchanges),

[[Page 23235]]

     under the same conditions as the vehicle may operate in that 
     State on those United States highways (including that 
     bypass).
                                 ______
                                 
  SA 2119. Mr. ENSIGN (for himself and Mr. Reid) submitted an amendment 
intended to be proposed by him to the bill H.R. 3058, making 
appropriations for the Departments of Transportation, Treasury, and 
Housing and Urban Development, the Judiciary, District of Columbia, and 
independent agencies for the fiscal year ending September 30, 2006, and 
for other purposes; which was ordered to lie on the table; as follows:

       On page 230, after line 22, insert the following:
       Sec. 109. Section 40128(e) of title 49, United States Code, 
     is amended by adding at the end the following: ``For purposes 
     of this subsection, an air tour operator flying over the 
     Hoover Dam in the Lake Mead National Recreation Area en route 
     to the Grand Canyon National Park shall be deemed to be 
     flying solely as a transportation route.''.
                                 ______
                                 
  SA 2120. Mr. VOINOVICH (for himself and Mr. DeWine) submitted an 
amendment intended to be proposed by him to the bill H.R. 3058, making 
appropriations for the Departments of Transportation, Treasury, and 
Housing and Urban Development, the Judiciary, District of Columbia, and 
independent agencies for the fiscal year ending September 30, 2006, and 
for other purposes; which was ordered to lie on the table; as follows:

       On page 436, between lines 10 and 11, insert the following:
       Sec. 8___.(a) The table contained in section 1702 of the 
     Safe, Accountable, Flexible, Efficient Transportation Equity 
     Act: A Legacy for Users (Public Law 109-59; 119 Stat. 1144) 
     is amended in item number 4632 by striking ``Construct 1,100 
     foot bulkhead/riverwalk connecting Front and Maine Ave. 
     public rights-of-way'' and inserting ``For roadway 
     improvements and construction of 1,100 foot bulkhead/
     riverwalk connecting Front and Maine Ave. public rights-of-
     way''.
       (b) The table contained in section 3044 of the Safe, 
     Accountable, Flexible, Efficient Transportation Equity Act: A 
     Legacy for Users (Public Law 109-59; 119 Stat. 1144) is 
     amended in item number 516 by striking ``Dayton Wright Stop 
     Plaza'' and inserting ``Downtown Dayton Transit 
     Enhancements''.
                                 ______
                                 
  SA 2121. Mr. SCHUMER (for himself and Mrs. Clinton) submitted an 
amendment intended to be proposed by him to the bill H.R. 3058, making 
appropriations for the Departments of Transportation, Treasury, and 
Housing and Urban Development, the Judiciary, District of Columbia, and 
independent agencies for the fiscal year ending September 30, 2006, and 
for other purposes; which was ordered to lie on the table; as follows:

       On page 348, between lines 5 and 6, insert the following:

     SEC. 321. OPERATING FUND PROGRAM FINAL RULE.

       (a) In General.--Notwithstanding any other provision of 
     law, or of the Operating Fund program final rule published by 
     the Department of Housing and Urban Development on September 
     19, 2005, 79 Fed. Reg. 54984, the 5 year schedule set out in 
     the table appearing in 990.230(e) of the final rule shall 
     commence 1 year from the Secretary's publication of guidance 
     in a Federal Register notice defining specifically the manner 
     in which public housing authorities shall comply with the 
     provisions of 990.275 (Project-Based Management) and 
     990.280 (Project-Based Accounting and Budgeting).
       (b) Compliance.--Each public housing authority shall be 
     deemed in compliance with Subpart H of the final rule 
     described in subsection (a), pending completion of the 
     Secretary's review of the asset management demonstration 
     submitted by the housing authority based on the guidance 
     issued by the Secretary or the review conducted by the 
     Secretary's independent assessor.
                                 ______
                                 
  SA 2122. Mr. SCHUMER submitted an amendment intended to be proposed 
by him to the bill H.R. 3058, making appropriations for the Departments 
of Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 338, line 15, strike ``and is occupied primarily by 
     elderly or disabled families''.

       On page 338, line 19, insert ``, and the contract for such 
     payments shall be renewable by the owner under the provisions 
     of section 524 of the Multifamily Assisted Housing Reform and 
     Affordability Act of 1997 (42 U.S.C. 1437f note)'' after ``in 
     the property''.
                                 ______
                                 
  SA 2123. Mr. DAYTON submitted an amendment intended to be proposed by 
him to the bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; as 
follows:

       At the end of the bill, add the following:

TITLE __--NATURAL DISASTER OIL AND GAS PRICE GOUGING PREVENTION ACT OF 
                                  2005

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Natural Disaster Oil and 
     Gas Price Gouging Prevention Act of 2005''.

     SEC. _02. DEFINITIONS.

       In this title:
       (1) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (2) Qualifying natural disaster declaration.--The term 
     ``qualifying natural disaster declaration'' means--
       (A) a natural disaster declared by the Secretary under 
     section 321(a) of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1961(a)); or
       (B) a major disaster or emergency designated by the 
     President under the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5121 et seq.).

     SEC. _03. RESTRICTION ON PRICE GOUGING.

       (a) Restrictions.--It shall be unlawful in the United 
     States during the period of a qualifying natural disaster 
     declaration in the United States to increase the price of any 
     oil or gas product more than 15 percent above the price of 
     that product immediately prior to the declaration unless the 
     increase in the amount charged is attributable to additional 
     costs incurred by the seller or national or international 
     market trends.
       (b) Enforcement.--
       (1) Enforcement powers.--
       (A) In general.--The Commission shall enforce this section 
     as part of its duties under the Federal Trade Commission Act 
     (15 U.S.C. 41 et seq.).
       (B) Reporting of violations.--For purposes of the 
     enforcement of this section, the Commission shall establish 
     procedures to permit the reporting of violations of this 
     section to the Commission, including appropriate links on the 
     Internet website of the Commission and the use of a toll-free 
     telephone number for such purposes.
       (2) Penalty.--
       (A) Criminal penalty.--A violation of this section shall be 
     deemed a felony and a person, upon conviction of a violation 
     of this section, shall be punished by fine not exceeding 
     $10,000,000 if a corporation, or, if any other person, 
     $350,000, or by imprisonment not exceeding 3 years, or both.
       (B) Civil penalty.--The Commission may impose a civil 
     penalty not to exceed $5,000 for each violation of this 
     section. For purposes of this subparagraph, each day of 
     violation shall constitute a separate offense. Civil 
     penalties under this subparagraph shall not exceed amounts 
     provided in subparagraph (A).
       (c) Action by State Attorney General.--The attorney general 
     of a State may bring a civil action for a violation of this 
     section pursuant to section 4C of the Clayton Act (15 U.S.C. 
     15c).
                                 ______
                                 
  SA 2124. Mr. SCHUMER (for himself, Ms. Snowe, Mrs. Clinton, Mr. 
Jeffords, and Mr. Leahy) submitted an amendment intended to be proposed 
by him to the bill H.R. 3058, making appropriations for the Departments 
of Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 220, line 26, strike ``$60,000,000'' and all that 
     follows through the period on page 221, line 2, and insert 
     the following: ``$77,000,000, to be derived from the Airport 
     and Airway Trust Fund, to remain available until expended: 
     Provided, That not to exceed $17,000,000 for fiscal year 2006 
     shall be used for adjustments to account for significantly 
     increased costs as provided for in section 41737(e)(1) of 
     title 49, United States Code: Provided further, That amounts 
     provided in this Act for salaries and expenses for the 
     Department of Transportation, the Department of the Treasury, 
     the Department of Housing and Urban Development, the 
     Judiciary, and the Executive Office of the President are 
     reduced by an aggregate of $17,000,000 on a pro rata 
     basis.''.
                                 ______
                                 
  SA 2125. Mr. SCHUMER submitted an amendment intended to be proposed 
by him to the bill H.R. 3058, making appropriations for the Departments 
of Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes;

[[Page 23236]]

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

       On page 220, line 26, strike ``$60,000,000'' and all that 
     follows through the period on page 221, line 2, and insert 
     the following: ``$170,000,000, to be derived from the Airport 
     and Airway Trust Fund, to remain available until expended: 
     Provided, That not to exceed $17,000,000 for fiscal year 2006 
     shall be used for adjustments to account for significantly 
     increased costs as provided for in section 41737(e)(1) of 
     title 49, United States Code.''.
                                 ______
                                 
  SA 2126. Mr. SCHUMER submitted an amendment intended to be proposed 
by him to the bill H.R. 3058, making appropriations for the Departments 
of Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 226, line 17, strike ``$3,390,000,000'' and insert 
     ``$3,468,904,000''.
       On page 227, line 3, strike ``$71,096,000'' and insert 
     ``$150,000,000''.
                                 ______
                                 
  SA 2127. Mr. FRIST (for himself, Mrs. Dole, Ms. Stabenow, and Mrs. 
Clinton) submitted an amendment intended to be proposed by him to the 
bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 310 line 11, strike the word ``and'' after the word 
     ``LISC'' and insert ``,'' and on page 310 on line 12 after 
     the words ``Enterprise Foundation'' insert ``, and the 
     Habitat for Humanity''; and on page 319 line 17 after the 
     word ``Foundation'' insert the following ``Habitat for 
     Humanity,''.
                                 ______
                                 
  SA 2128. Mr. FRIST (for himself, Mrs. Dole, Ms. Stabenow, and Mrs. 
Clinton) submitted an amendment intended to be proposed by him to the 
bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 310 line 11, strike the word ``and'' after the word 
     ``LISC'' and insert ``,'' and on page 310 on line 12 after 
     the words ``Enterprise Foundation'' insert ``, and the 
     Habitat for Humanity''.
                                 ______
                                 
  SA 2129. Mr. WARNER submitted an amendment intended to be proposed by 
him to the bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 276, after line 24, add the following:
       Sec. __. The item numbered 1832 in the table contained in 
     section 1702 of the Safe, Accountable, Flexible, Efficient 
     Transportation Equity Act: A Legacy for Users (Public Law 
     109-59; 119 Stat. 1144) is amended by inserting ``, in fiscal 
     year 2006'' after ``Virginia''.
                                 ______
                                 
  SA 2130. Mr. WARNER submitted an amendment intended to be proposed by 
him to the bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 276, after line 24, add the following:
       Sec. __. The item numbered 2551 in the table contained in 
     section 1702 of the Safe, Accountable, Flexible, Efficient 
     Transportation Equity Act: A Legacy for Users (Public Law 
     109-59; 119 Stat. 1144) is amended by inserting ``in fiscal 
     year 2006'' after ``2007''.
                                 ______
                                 
  SA 2131. Mr. CORNYN submitted an amendment intended to be proposed by 
him to the bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 436, between lines 10 and 11, insert the following:

     SEC. 844. EMINENT DOMAIN.

       None of the funds made available in this Act may be used by 
     any state, county, municipality, city, town or other 
     political subdivision that engages or participates in the 
     taking of private property by eminent domain without the 
     consent of the owner and conveys or leases such property to 
     another private person or entity for commercial, financial or 
     retail enterprise, or to increase tax revenue, tax base, 
     employment, or general economic health, unless the taking 
     involves (a) conveying private property for the occupation 
     and enjoyment of the land by the general public, or by public 
     agencies, such as for a roadway, waterway, airport, school, 
     hospital, military base, prison, public park, or a government 
     building; or (b) conveying private property to an entity, 
     such as a state or federally regulated public utility or 
     common carrier, for the creation or functioning of public 
     service infrastructure, such as for public utilities, waste 
     treatment facilities, railroads, or transportation of natural 
     gas, crude oil or refined petroleum products; or (c) 
     condemning property that constitutes a severe threat to 
     public health and safety, such as structures that are beyond 
     repair or otherwise unfit for human habitation or use; or (d) 
     leasing property to a private person or entity that occupies 
     an incidental part of public property or a public facility, 
     such as a retail establishment on the ground floor of a 
     public building; or (e) acquiring abandoned property.
                                 ______
                                 
  SA 2132. Mr. REID submitted an amendment intended to be proposed by 
him to the bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 290, between lines 14 and 15, insert the following:
       Sec. 209A.(a) The Senate makes the following findings:
       (1) For a voluntary, self-reporting tax system to work, 
     taxpayers must believe that all taxpayers pay their fair 
     share of taxes.
       (2) Many States base State income tax liability on amounts 
     reported with respect to Federal income taxes, with the 
     result that amounts not collected with respect to Federal 
     income taxes are also not collected with respect to State 
     income taxes at a time when many States are hard-pressed to 
     meet their many financial demands.
       (3) A study conducted by the National Research Program of 
     the Internal Revenue Service determined that taxpayer non-
     compliance costs the Federal Government over $300,000,000,000 
     each year in uncollected taxes.
       (4) The National Research Program study estimates that the 
     tax shortfall attributable to individual income taxes is as 
     high as $100,000,000,000 with respect to business income and 
     more than $50,000,000,000 with respect to non-business 
     income.
       (5) An analysis published in 2005 by tax law Professors 
     Joseph Dodge and Jay Soled estimated that the loss of Federal 
     income tax revenue associated with the under reporting of 
     capital gains is $250,000,000,000 over the coming decade.
       (6) Non-compliance places an unfair burden on all 
     taxpayers.
       (7) Prior to launching the National Research Program, the 
     Internal Revenue Service did not have in place an automated 
     system to verify and audit capital gains information reported 
     on Schedule D of Federal income tax returns, and now only 
     examines Schedule D information when it is part of a larger 
     tax audit.
       (8) The reliance on random audits has created an impression 
     in the investment community that enforcement of capital gains 
     is limited or, worse, non-existent, and has also created an 
     environment of inaccuracy and non-compliance with respect to 
     Schedule D.
       (9) Internal Revenue Service efforts to reduce the tax gap 
     focus on increasing field examinations and audits, 
     particularly of high-income taxpayers.
       (10) One of the key components of National Research Program 
     was the introduction, on a pilot basis, of a ``smart'' 
     process to assist with the determination of the correct cost 
     basis of capital gains and losses reported on Schedule D.
       (b) It is the sense of the Senate that the Internal Revenue 
     Service should utilize processes and technological tools that 
     assist with the independent verification of taxpayer data, 
     including the cost basis information of capital gains and 
     losses reported on Schedule D, that will comply with all of 
     the applicable rules and methods of the Internal Revenue Code 
     of 1986 to ensure that all taxpayers pay their fair share of 
     Federal income tax and to decrease the shortfall in tax 
     revenues to the benefit of all taxpayers.
                                 ______
                                 
  SA 2133. Mr. DORGAN (for himself, Mr. Craig, Mr. Enzi, and Mr. 
Baucus)

[[Page 23237]]

proposed an amendment to the bill H.R. 3058, making appropriations for 
the Departments of Transportation, Treasury, and Housing and Urban 
Development, the Judiciary, District of Columbia, and independent 
agencies for the fiscal year ending September 30, 2006, and for other 
purposes; as follows:

       At the appropriate place in the bill, insert the following:
       Sec. __. (a) None of the funds made available in this Act 
     may be used to administer or enforce part 515 of title 31, 
     Code of Federal Regulations (the Cuban Assets Control 
     Regulations) with respect to any travel or travel-related 
     transaction.
       (b) The limitation established in subsection (a) shall not 
     apply to--
       (1) the administration of general or specific licenses for 
     travel or travel-related transactions;
       (2) section 515.204, 515.206, 515.332, 515.536, 515.544, 
     515.547, 515.560(c)(3), 515.569, 515.571, or 515.803 of such 
     part 515; or
       (3) transactions in relation to any business travel covered 
     by section 515.560(g) of such part 515.
                                 ______
                                 
  SA 2134. Mr. GRASSLEY submitted an amendment intended to be proposed 
by him to the bill H.R. 3058, making appropriations for the Departments 
of Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 356, between lines 4 and 5, insert the following:
       Sec. 408.(a) The division of the court shall release to the 
     Congress and to the public not later than 60 days after the 
     date of enactment of this Act all portions of the final 
     report of the independent counsel of the investigation of 
     Henry Cisneros made under section 594(h) of title 28, United 
     States Code, except for any such portions that contain 
     information of a personal nature that the division of the 
     court determines the disclosure of which would cause a 
     clearly unwarranted invasion of privacy that outweighs the 
     public interest in a full accounting of this investigation. 
     Upon the release of the final report, the final report shall 
     be published pursuant to section 594(h)(3) of title 28, 
     United States Code.
       (b)(1) After the release and publication of the final 
     report referred to in subsection (a), the independent counsel 
     shall continue his office only to the extent necessary and 
     appropriate to perform the noninvestigative and 
     nonprosecutorial tasks remaining of his statutory duties as 
     required to conclude the functions of his office.
       (2) The duties referred to in paragraph (1) shall 
     specifically include--
       (A) the evaluation of claims for attorney fees, pursuant to 
     section 593(l) of title 28, United States Code;
       (B) the transfer of records to the Archivist of the United 
     States pursuant to section 594(k) of title 28, United States 
     Code;
       (C) compliance with oversight obligations pursuant to 
     section 595(a) of title 28, United States Code; and
       (D) preparation of statements of expenditures pursuant to 
     section 595(c) of title 28, United States Code.
       (3) Upon completion of his remaining statutory duties, the 
     independent counsel shall move the division of the court to 
     terminate his office.
                                 ______
                                 
  SA 2135. Mr. FEINGOLD submitted an amendment intended to be proposed 
by him to the bill H.R. 3058, making appropriations for the Departments 
of Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 244, between lines 8 and 9, insert the following:
       Sec. 122.(a) The Secretary of Transportation shall conduct 
     a study regarding--
       (1) Federal and State efforts to waive or relax truck 
     weight and length requirements on highways within the 
     Eisenhower Interstate System, including the timing of such 
     waivers, during the response to Hurricane Katrina and other 
     emergencies;
       (2) the extent to which differing regulatory responses by 
     States confused first responders and other aid providers 
     during the response to Hurricane Katrina and other 
     emergencies;
       (3) the extent of the Secretary of Transportation's 
     authority to waive or relax truck weight and length 
     requirements on highways in the Eisenhower Interstate System; 
     and
       (4) the need for the authority described in paragraph (3) 
     in the event of an emergency.
       (b) Not later than 90 days after the date of enactment of 
     this Act, the Secretary of Transportation shall submit a 
     report to Congress that contains--
       (1) the results of the study conducted under subsection 
     (a);
       (2) recommendations regarding the appropriate extent and 
     form of the waiver authority described in subsection (a)(3) 
     in the event of an emergency; and
       (3) proposed legislation to provide such authority.
                                 ______
                                 
  SA 2136. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 436, between lines 10 and 11, insert the following:
       Sec. __. None of the funds made available by this Act shall 
     be used to enter into any lease for a facility under the 
     jurisdiction of the General Services Administration unless 
     the Administrator of General Services first submits to 
     Congress a report demonstrating that the life of the lease 
     would cost less than the full and total costs of each 
     considered option.
                                 ______
                                 
  SA 2137. Mr. COLEMAN (for himself, Mr. Levin, and Mr. Akaka) 
submitted an amendment intended to be proposed by him to the bill H.R. 
3058, making appropriations for the Departments of Transportation, 
Treasury, and Housing and Urban Development, the Judiciary, District of 
Columbia, and independent agencies for the fiscal year ending September 
30, 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 406, between lines 7 and 8, insert the following:

     SEC. 724. PAYMENTS TO FEDERAL CONTRACTORS WITH FEDERAL TAX 
                   DEBT.

       The General Services Administration, in conjunction with 
     the Financial Management Service, shall develop procedures to 
     subject purchase card payments to Federal contractors to the 
     Federal Payment Levy Program.

     SEC. 520. REPORTING OF AIR TRAVEL BY FEDERAL GOVERNMENT 
                   EMPLOYEES.

       (a) Annual Reports Required.--The Administrator of General 
     Services shall submit annually to the Committee on Homeland 
     Security and Governmental Affairs of the Senate and the 
     Committee on Government Reform of the House of 
     Representatives a report on all first class and business 
     class travel by employees of each agency undertaken at the 
     expense of the Federal Government.
       (b) Content.--The reports submitted pursuant to subsection 
     (a) shall include, at a minimum, with respect to each travel 
     by first class or business class--
       (1) the names of each traveler;
       (2) the date of travel;
       (3) the points of origination and destination;
       (4) the cost of the first class or business class travel; 
     and
       (5) the cost difference between such travel and travel by 
     coach class fare available under contract with the General 
     Services Administration or, if no contract is available, the 
     lowest coach class fare available.
       (c) Agency Defined.--In this section, the term ``agency'' 
     has the meaning given such term in section 5701(1) of title 
     5, United States Code.
                                 ______
                                 
  SA 2138. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 311, line 15, strike ``in accordance'' and all that 
     follows through ``Act'' on line 17.
                                 ______
                                 
  SA 2139. Mr. BOND (for Mrs. Boxer) proposed an amendment to the bill 
H.R. 3058, making appropriations for the Departments of Transportation, 
Treasury, and Housing and Urban Development, the Judiciary, District of 
Columbia, and independent agencies for the fiscal year ending September 
30, 2006, and for other purposes; as follows:

       On page 219, line 5, strike the period and insert the 
     following: ``: Provided further, That the Secretary of 
     Transportation, in consultation with the Secretary of Health 
     and Human Services and the Administrator of the Federal 
     Aviation Administration, not later than 60 days after the 
     date of enactment of this Act, shall establish procedures 
     with airport directors located at United States airports that 
     have incoming flights from any country that has had cases of 
     avian flu and with air carriers that provide such flights to 
     deal with situations where a passenger on one of the flights 
     has symptoms of avian flu .''.

[[Page 23238]]


                                 ______
                                 
  SA 2140. Mr. BOND (for Ms. Stabenow) submitted an amendment intended 
to be proposed by Mr. Bond to the bill H.R. 3058, making appropriations 
for the Departments of Transportation, Treasury, and Housing and Urban 
Development, the Judiciary, District of Columbia, and independent 
agencies for the fiscal year ending September 30, 2006, and for other 
purposes; as follows:

       On page 316, line 26, after ``Provided,'' insert ``That of 
     the amount made available under this heading, $10,000,000 
     shall be made available to carry out section 203 of Public 
     Law 108-186,''.
                                 ______
                                 
  SA 2141. Mrs. MURRAY submitted an amendment intended to be proposed 
by her to the bill H.R. 3058, making appropriations for the Departments 
of Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; as 
follows:

       At the appropriate place, insert the following: Page 406, 
     line 8 insert a new paragraph.
       Sec. 724. The United States Interagency Council on 
     Homelessness shall conduct an assessment of the guidance 
     disseminated by the Department of Education, the Department 
     of Housing and Urban Development, and other related federal 
     agencies for grantees of homeless assistance programs on 
     whether such guidance is consistent with and does not 
     restrict the exercise of education rights provided to 
     parents, youth, and children under subtitle B of title VII of 
     the McKinney-Vento Act: Provided, That such assessment shall 
     address whether the practices, outreach, and training efforts 
     of said agencies serve to protect and advance such rights: 
     Provided further, That the Council shall submit to the House 
     and Senate Committees on Appropriations an interim report by 
     May 1, 2006, and a final report by September 1, 2006.
                                 ______
                                 
  SA 2142. Mr. McCONNELL (for Mr. Enzi) proposed an amendment to the 
bill H.R. 3204, to amend title XXVII of the Public Health Service Act 
to extend Federal funding for the establishment and operation of State 
high risk health insurance pools; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``State High Risk Pool Funding 
     Extension Act of 2005''.

     SEC. 2. EXTENSION OF FUNDING FOR OPERATION OF STATE HIGH RISK 
                   HEALTH INSURANCE POOLS.

       Section 2745 of the Public Health Service Act (42 U.S.C. 
     300gg-45) is amended to read as follows:

     ``SEC. 2745. RELIEF FOR HIGH RISK POOLS.

       ``(a) Seed Grants to States.--The Secretary shall provide 
     from the funds appropriated under subsection (d)(1)(A) a 
     grant of up to $1,000,000 to each State that has not created 
     a qualified high risk pool as of the date of enactment of the 
     State High Risk Pool Funding Extension Act of 2005 for the 
     State's costs of creation and initial operation of such a 
     pool.
       ``(b) Grants for Operational Losses.--
       ``(1) In general.--In the case of a State that has 
     established a qualified high risk pool that--
       ``(A) restricts premiums charged under the pool to no more 
     than 200 percent of the premium for applicable standard risk 
     rates;
       ``(B) offers a choice of two or more coverage options 
     through the pool; and
       ``(C) has in effect a mechanism reasonably designed to 
     ensure continued funding of losses incurred by the State in 
     connection with operation of the pool after the end of the 
     last fiscal year for which a grant is provided under this 
     paragraph;

     the Secretary shall provide, from the funds appropriated 
     under paragraphs (1)(B)(i) and (2)(A) of subsection (d) and 
     allotted to the State under paragraph (2), a grant for the 
     losses incurred by the State in connection with the operation 
     of the pool.
       ``(2) Allotment.--Subject to paragraph (4), the amounts 
     appropriated under paragraphs (1)(B)(i) and (2)(A) of 
     subsection (d) for a fiscal year shall be allotted and made 
     available to the States (or the entities that operate the 
     high risk pool under applicable State law) that qualify for a 
     grant under paragraph (1) as follows:
       ``(A) An amount equal to 40 percent of such appropriated 
     amount for the fiscal year shall be allotted in equal amounts 
     to each qualifying State that is one of the 50 States or the 
     District of Columbia and that applies for a grant under this 
     subsection.
       ``(B) An amount equal to 30 percent of such appropriated 
     amount for the fiscal year shall be allotted among qualifying 
     States that apply for such a grant so that the amount 
     allotted to such a State bears the same ratio to such 
     appropriated amount as the number of uninsured individuals in 
     the State bears to the total number of uninsured individuals 
     (as determined by the Secretary) in all qualifying States 
     that so apply.
       ``(C) An amount equal to 30 percent of such appropriated 
     amount for the fiscal year shall be allotted among qualifying 
     States that apply for such a grant so that the amount 
     allotted to a State bears the same ratio to such appropriated 
     amount as the number of individuals enrolled in health care 
     coverage through the qualified high risk pool of the State 
     bears to the total number of individuals so enrolled through 
     qualified high risk pools (as determined by the Secretary) in 
     all qualifying States that so apply.
       ``(3) Special rule for pools charging higher premiums.--In 
     the case of a qualified high risk pool of a State which 
     charges premiums that exceed 150 percent of the premium for 
     applicable standard risks, the State shall use at least 50 
     percent of the amount of the grant provided to the State to 
     carry out this subsection to reduce premiums for enrollees.
       ``(4) Limitation for territories.--In no case shall the 
     aggregate amount allotted and made available under paragraph 
     (2) for a fiscal year to States that are not the 50 States or 
     the District of Columbia exceed $1,000,000.
       ``(c) Bonus Grants for Supplemental Consumer Benefits.--
       ``(1) In general.--In the case of a State that is one of 
     the 50 States or the District of Columbia, that has 
     established a qualified high risk pool, and that is receiving 
     a grant under subsection (b)(1), the Secretary shall provide, 
     from the funds appropriated under paragraphs (1)(B)(ii) and 
     (2)(B) of subsection (d) and allotted to the State under 
     paragraph (3), a grant to be used to provide supplemental 
     consumer benefits to enrollees or potential enrollees (or 
     defined subsets of such enrollees or potential enrollees) in 
     qualified high risk pools.
       ``(2) Benefits.--A State shall use amounts received under a 
     grant under this subsection to provide one or more of the 
     following benefits:
       ``(A) Low-income premium subsidies.
       ``(B) A reduction in premium trends, actual premiums, or 
     other cost-sharing requirements.
       ``(C) An expansion or broadening of the pool of individuals 
     eligible for coverage, such as through eliminating waiting 
     lists, increasing enrollment caps, or providing flexibility 
     in enrollment rules.
       ``(D) Less stringent rules, or additional waiver authority, 
     with respect to coverage of pre-existing conditions.
       ``(E) Increased benefits.
       ``(F) The establishment of disease management programs.
       ``(3) Allotment; limitation.--The Secretary shall allot 
     funds appropriated under paragraphs (1)(B)(ii) and (2)(B) of 
     subsection (d) among States qualifying for a grant under 
     paragraph (1) in a manner specified by the Secretary, but in 
     no case shall the amount so allotted to a State for a fiscal 
     year exceed 10 percent of the funds so appropriated for the 
     fiscal year.
       ``(4) Rule of construction.--Nothing in this subsection 
     shall be construed to prohibit a State that, on the date of 
     the enactment of the State High Risk Pool Funding Extension 
     Act of 2005, is in the process of implementing a program to 
     provide benefits of the type described in paragraph (2), from 
     being eligible for a grant under this subsection.
       ``(d) Funding.--
       ``(1) Appropriation for fiscal year 2006.--There are 
     authorized to be appropriated and there are appropriated for 
     fiscal year 2006--
       ``(A) $15,000,000 to carry out subsection (a); and
       ``(B) $75,000,000, of which, subject to paragraph (4)--
       ``(i) two-thirds of the amount appropriated shall be made 
     available for allotments under subsection (b)(2); and
       ``(ii) one-third of the amount appropriated shall be made 
     available for allotments under subsection (c)(3).
       ``(2) Authorization of appropriations for fiscal years 2007 
     through 2010.--There are authorized to be appropriated 
     $75,000,000 for each of fiscal years 2007 through 2010, of 
     which, subject to paragraph (4)--
       ``(A) two-thirds of the amount appropriated for a fiscal 
     year shall be made available for allotments under subsection 
     (b)(2); and
       ``(B) one-third of the amount appropriated for a fiscal 
     year shall be made available for allotments under subsection 
     (c)(3).
       ``(3) Availability.--Funds appropriated for purposes of 
     carrying out this section for a fiscal year shall remain 
     available for obligation through the end of the following 
     fiscal year.
       ``(4) Reallotment.--If, on June 30 of each fiscal year for 
     which funds are appropriated under paragraph (1)(B) or (2), 
     the Secretary determines that all the amounts so appropriated 
     are not allotted or otherwise made available to States, such 
     remaining amounts shall be allotted and made available under 
     subsection (b) among States receiving grants under subsection 
     (b) for the fiscal year based upon the allotment formula 
     specified in such subsection.
       ``(5) No entitlement.--Nothing in this section shall be 
     construed as providing a State with an entitlement to a grant 
     under this section.

[[Page 23239]]

       ``(e) Applications.--To be eligible for a grant under this 
     section, a State shall submit to the Secretary an application 
     at such time, in such manner, and containing such information 
     as the Secretary may require.
       ``(f) Annual Report.--The Secretary shall submit to 
     Congress an annual report on grants provided under this 
     section. Each such report shall include information on the 
     distribution of such grants among States and the use of grant 
     funds by States.
       ``(g) Definitions.--In this section:
       ``(1) Qualified high risk pool.--
       ``(A) In general.--The term `qualified high risk pool' has 
     the meaning given such term in section 2744(c)(2), except 
     that a State may elect to meet the requirement of 
     subparagraph (A) of such section (insofar as it requires the 
     provision of coverage to all eligible individuals) through 
     providing for the enrollment of eligible individuals through 
     an acceptable alternative mechanism (as defined for purposes 
     of section 2744) that includes a high risk pool as a 
     component.
       ``(2) Standard risk rate.--The term `standard risk rate' 
     means a rate--
       ``(A) determined under the State high risk pool by 
     considering the premium rates charged by other health 
     insurers offering health insurance coverage to individuals in 
     the insurance market served;
       ``(B) that is established using reasonable actuarial 
     techniques; and
       ``(C) that reflects anticipated claims experience and 
     expenses for the coverage involved.
       ``(3) State.--The term `State' means any of the 50 States 
     and the District of Columbia and includes Puerto Rico, the 
     Virgin Islands, Guam, American Samoa, and the Northern 
     Mariana Islands.''.
                                 ______
                                 
  SA 2143. Mr. DAYTON submitted an amendment intended to be proposed by 
him to the bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end of the bill, add the following:

 TITLE XX__--NATURAL DISASTER OIL AND GAS PRICE GOUGING PREVENTION ACT 
                                OF 2005

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Natural Disaster Oil and 
     Gas Price Gouging Prevention Act of 2005''.

     SEC. _02. DEFINITIONS.

       In this title:
       (1) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (2) Qualifying natural disaster declaration.--The term 
     ``qualifying natural disaster declaration'' means--
       (A) a natural disaster declared by the Secretary under 
     section 321(a) of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1961(a)); or
       (B) a major disaster or emergency designated by the 
     President under the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5121 et seq.).

     SEC. _03. RESTRICTION ON PRICE GOUGING.

       (a) Restrictions.--It shall be unlawful in the United 
     States during the period of a qualifying natural disaster 
     declaration in the United States to increase the price of any 
     oil or gas product more than 15 percent above the price of 
     that product immediately prior to the declaration unless the 
     increase in the amount charged is attributable to additional 
     costs incurred by the seller or national or international 
     market trends.
       (b) Enforcement.--
       (1) Enforcement powers.--
       (A) In general.--The Commission shall enforce this section 
     as part of its duties under the Federal Trade Commission Act 
     (15 U.S.C. 41 et seq.).
       (B) Reporting of violations.--For purposes of the 
     enforcement of this section, the Commission shall establish 
     procedures to permit the reporting of violations of this 
     section to the Commission, including appropriate links on the 
     Internet website of the Commission and the use of a toll-free 
     telephone number for such purposes.
       (2) Penalty.--
       (A) Criminal penalty.--A violation of this section shall be 
     deemed a felony and a person, upon conviction of a violation 
     of this section, shall be punished by fine not exceeding 
     $10,000,000 if a corporation, or, if any other person, 
     $350,000, or by imprisonment not exceeding 3 years, or both.
       (B) Civil penalty.--The Commission may impose a civil 
     penalty not to exceed $5,000 for each violation of this 
     section. For purposes of this subparagraph, each day of 
     violation shall constitute a separate offense. Civil 
     penalties under this subparagraph shall not exceed amounts 
     provided in subparagraph (A).
       (c) Action by State Attorney General.--The attorney general 
     of a State may bring a civil action for a violation of this 
     section pursuant to section 4C of the Clayton Act (15 U.S.C. 
     15c).
       (d) This section becomes effective 1 day after enactment.
                                 ______
                                 
  SA 2144. Mr. CORZINE submitted an amendment intended to be proposed 
by him to the bill H.R. 3058, making appropriations for the Departments 
of Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 252, between lines 11 and 12, insert the following: 
     ``Provided further, That the Corporation shall not create a 
     wholly owned Northeast Corridor subsidiary or transfer the 
     Northeast Corridor infrastructure into such subsidiary unless 
     such activities are specifically authorized by an Act of 
     Congress:''.
                                 ______
                                 
  SA 2145. Mr. LAUTENBERG (for himself and Mr. Lott) submitted an 
amendment intended to be proposed by him to the bill H.R. 3058, making 
appropriations for the Departments of Transportation, Treasury, and 
Housing and Urban Development, the Judiciary, District of Columbia, and 
independent agencies for the fiscal year ending September 30, 2006, and 
for other purposes; which was ordered to lie on the table; as follows:

       On page 250, line 9, beginning with ``expended:'' strike 
     through line 17 on page 252 and insert ``expended.''.
                                 ______
                                 
  SA 2146. Mr. ENSIGN (for himself, Mr. Allen, and Mr. DeMint) 
submitted an amendment intended to be proposed by him to the bill H.R. 
3058, making appropriations for the Departments of Transportation, 
Treasury, and Housing and Urban Development, the Judiciary, District of 
Columbia, and independent agencies for the fiscal year ending September 
30, 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

         On page 293, after line 25, add the following:
         Sec. _____. The Internal Revenue Service shall provide 
     taxpayers with free individual tax electronic preparation and 
     filing services only through the Free File program and the 
     Internal Revenue Service's Taxpayer Assistance Centers and 
     Volunteer Income Tax Assistance program.
                                 ______
                                 
  SA 2147. Mr. DeWINE submitted an amendment intended to be proposed by 
him to the bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

         On page 244, line 17, insert ``of which $13,679,000 shall 
     be for the `New Car Assessment Program' (including 
     $6,000,000, which shall remain available until September 30, 
     2007) and $1,000,000 shall be for the `Vehicle Crash 
     Causation Study':'' after ``Highway Trust Fund''.
                                 ______
                                 
  SA 2148. Mr. PRYOR submitted an amendment intended to be proposed by 
him to the bill H.R. 3058, making appropriations for the Departments of 
Transportation, Treasury, and Housing and Urban Development, the 
Judiciary, District of Columbia, and independent agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

         On page 276, after line 24, insert the following:
         Sec. 1__. Section 127(a) of title 23, United States Code, 
     is amended by adding at the end the following:
         ``(13) Arkansas.--During the period beginning on the date 
     of enactment of this paragraph and ending on September 30, 
     2009, the State of Arkansas may allow the operation of 
     vehicles with a gross vehicle weight of up to 80,000 pounds 
     for the hauling of cotton seed on Interstate Route 555 during 
     the months of August through December to cross the St. 
     Francis Floodway from Marked Tree to Payneway, when that 
     route is open to traffic.''.

                          ____________________