[Congressional Record (Bound Edition), Volume 151 (2005), Part 18]
[Senate]
[Pages 24621-24647]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2358. Ms. CANTWELL (for herself, Mr. Feingold, Mr. Dayton, Mr. 
Lieberman, Mr. Kerry, Ms. Collins, Ms. Mikulski, Mr. Jeffords, Mr. 
Durbin, Mr. Salazar, Mrs. Murray, Mrs. Clinton, Mrs. Boxer, Ms. Snowe, 
and

[[Page 24622]]

Mr. Wyden) proposed an amendment to the bill S. 1932, to provide for 
reconciliation pursuant to section 202(a) of the concurrent resolution 
on the budget for fiscal year 2006 (H. Con. Res. 95); as follows:

       Beginning on page 96, strike line 16 and all that follows 
     through page 102, line 8.
                                 ______
                                 
  SA 2359. Mr. GRASSLEY (for himself, Mr. Dorgan, Mr. Enzi, Mr. Harkin, 
Mr. Hagel, Mr. Johnson, Mr. Brownback, Mr. Thune, Mr. Feingold, Mr. 
Conrad, Mr. Thomas, Mrs. Clinton, and Mr. Nelson of Nebraska) submitted 
an amendment intended to be proposed by him to the bill S. 1932, to 
provide for reconciliation pursuant to section 202(a) of the concurrent 
resolution on the budget for fiscal year 2006 (H. Con. Res. 95); as 
follows:

       Beginning on page 10, strike line 8 and all that follows 
     through page 17, line 22 and insert the following:

     SEC. 1101. REDUCTION OF COMMODITY PROGRAM PAYMENTS.

       (a) In General.--Subtitle F of title I of the Farm Security 
     and Rural Investment Act of 2002 (7 U.S.C. 7991 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 1619. REDUCTION OF COMMODITY PROGRAM PAYMENTS.

       ``(a) Definition of Commodity Program Payments.--In this 
     section, the term `commodity program payments' means--
       ``(1) direct payments;
       ``(2) counter-cyclical payments; and
       ``(3) payments and benefits associated with the loan 
     program, including gains from the forfeiture of any commodity 
     pledged as collateral for loans and gains from in-kind 
     payments described in section 166 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7286), as 
     determined by the Secretary.
       ``(b) Reduction.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, for each of the 2007 through 2010 crop years for 
     wheat, corn, grain sorghum, barley, oats, upland cotton, 
     extra long staple cotton, rice, soybeans, other oilseeds, 
     wool, mohair, honey, dry peas, lentils, small chickpeas, 
     unshorn pelts, silage, hay, and peanuts, the Secretary shall 
     reduce the total amount of commodity program payments 
     received by the producers on a farm for those commodities for 
     that crop year by an amount equal to 2.5 percent of that 
     amount.
       ``(2) Milk.--During the period beginning on October 1, 
     2005, and ending on September 30, 2007, the Secretary shall 
     reduce the total amount of payments received by producers 
     pursuant to section 1502 by an amount equal to 2.5 percent of 
     that amount.''.
       (b) Commodities.--
       (1) In general.--Title I of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 7901 et seq.), including 
     each amendment made by that title, is amended by striking 
     ``2007'' each place it appears (other than in sections 
     1104(f), 1304(g), and 1307(a)(6) and amendments made by this 
     title) and inserting ``2011''.
       (2) Cotton.--Sections 1204(e)(1) and 1208(a) of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 
     7934(e)(1), 7938(a)) are amended by striking ``2008'' each 
     place it appears and inserting ``2012''.
       (3) Payment limitations.--
       (A) Definitions.--Section 1001(a) of the Food Security Act 
     of 1985 (Public Law 99-198; 99 Stat. 1444) is amended--
       (i) by redesignating paragraphs (2) and (3) as paragraphs 
     (4) and (5), respectively; and
       (ii) by inserting after paragraph (1) the following:
       ``(2) Entity.--
       ``(A) In general.--The term `entity' means--
       ``(i) an entity that (subject to the requirements of this 
     section and section 1001A) is eligible to receive a payment 
     under subsection (b), (c), or (d);
       ``(ii) a corporation, joint stock company, association, 
     limited partnership, charitable organization, grantor of a 
     revocable trust, or other similar entity (as determined by 
     the Secretary); and
       ``(iii) an entity that is participating in a farming 
     operation as a partner in a general partnership or as a 
     participant in a joint venture.
       ``(B) Exclusion.--Except with respect to section 1001F, the 
     term `entity' does not include an entity that is a general 
     partnership or joint venture.
       ``(3) Individual.--The term `individual' means--
       ``(A) a natural person, and minor children of the natural 
     person (as determined by the Secretary), that (subject to the 
     requirements of this section and section 1001A) is eligible 
     to receive a payment under subsection (b), (c), or (d); and
       ``(B) an individual participating in a farming operation as 
     a partner in a general partnership, a participant in a joint 
     venture, a grantor of a revocable trust, or a participant in 
     a similar entity (as determined by the Secretary).''.
       (B) Limitation on direct payments.--Section 1001(b) of the 
     Food Security Act of 1985 (Public Law 99-198; 99 Stat. 1444) 
     is amended in paragraphs (1) and (2)--
       (i) by striking ``made to a person'' each place it appears 
     and inserting ``that an individual or entity may receive, 
     directly or indirectly,''; and
       (ii) by striking ``$40,000'' each place it appears and 
     inserting ``$20,000''.
       (C) Limitation on counter-cyclical payments.--Section 
     1001(c) of the Food Security Act of 1985 (Public Law 99-198; 
     99 Stat. 1444) is amended in paragraphs (1) and (2)--
       (i) by striking ``made to a person'' each place it appears 
     and inserting ``that an individual or entity may receive, 
     directly or indirectly,''; and
       (ii) by striking ``$65,000'' each place it appears and 
     inserting ``$30,000''.
       (D) Limitation on marketing loan gains and loan deficiency 
     payments.--Section 1001(d) of the Food Security Act of 1985 
     (Public Law 99-198; 99 Stat. 1444) is amended--
       (i) in paragraph (1)--

       (I) in the matter preceding subparagraph (A), by striking 
     ``that a person may receive'' and inserting ``that an 
     individual or entity may receive, directly or indirectly,''; 
     and
       (II) by adding at the end the following:

       ``(C) In the case of settlement of a marketing assistance 
     loan under that subtitle, or section 1307 of that Act, for a 
     crop of any loan commodity by forfeiture, any gain 
     represented by the amount by which the loan amount exceeds 
     the repayment amount for the loan if the loan had been 
     settled by repayment instead of forfeiture.
       ``(D) Any gain realized from the use of a commodity 
     certificate issued by the Commodity Credit Corporation, as 
     determined by the Secretary, including the use of a 
     certificate for the settlement of a marketing assistance loan 
     made under that subtitle or section 1307 of that Act.''; and
       (ii) in paragraph (2)--

       (I) in the matter preceding subparagraph (A), by striking 
     ``that a person may receive'' and inserting ``that an 
     individual or entity may receive, directly or indirectly,''; 
     and
       (II) by adding at the end the following:

       ``(C) In the case of settlement of a marketing assistance 
     loan under that subtitle, or section 1307 of that Act, for 
     peanuts, wool, mohair, or honey by forfeiture, any gain 
     represented by the amount by which the loan amount exceeds 
     the repayment amount for the loan if the loan had been 
     settled by repayment instead of forfeiture.
       ``(D) Any gain realized from the use of a commodity 
     certificate issued by the Commodity Credit Corporation, as 
     determined by the Secretary, including the use of a 
     certificate for the settlement of a marketing assistance loan 
     made under that subtitle or section 1307 of that Act.''.
       (E) Payments to individual and entities.--Section 1001 of 
     the Food Security Act of 1985 (Public Law 99-198; 99 Stat. 
     1444) is amended--
       (i) by striking subsection (e) and inserting the following:
       ``(e) Payments to Individuals and Entities.--
       ``(1) Interests within the same entity.--All individuals or 
     entities that are owners of an entity, including 
     shareholders, may not collectively receive payments directly 
     or indirectly that are attributable to the ownership 
     interests in the entity for a fiscal or corresponding crop 
     year that exceed the limitations established under 
     subsections (b), (c), and (d).
       ``(2) All interests of an individual or entity.--An 
     individual or entity may not receive, directly or indirectly, 
     through all ownership interests of the individual or entity 
     from all sources, payments for a fiscal or corresponding crop 
     year that exceed the limitations established under 
     subsections (b), (c), and (d).''; and
       (ii) in subsection (f), by striking ``person'' and 
     inserting ``individual or entity''.
       (4) Substantive change; payments limited to active 
     farmers.--Section 1001A of the Food Security Act of 1985 (7 
     U.S.C. 1308-1) is amended to read as follows:

     ``SEC. 1001A. SUBSTANTIVE CHANGE; PAYMENTS LIMITED TO ACTIVE 
                   FARMERS.

       ``(a) Substantive Change.--
       ``(1) In general.--The Secretary may not approve (for 
     purposes of the application of the limitations under this 
     section) any change in a farming operation that otherwise 
     will increase the number of individuals or entities to which 
     the limitations under this section are applied unless the 
     Secretary determines that the change is bona fide and 
     substantive.
       ``(2) Family members.--For the purpose of paragraph (1), 
     the addition of a family member (as defined in regulations 
     promulgated by the Secretary) to a farming operation shall be 
     considered to be a bona fide and substantive change in the 
     farming operation.
       ``(3) Prohibition.--The Secretary may not establish a di 
     minimus beneficial interest level exempt from the 
     requirements of this section.
       ``(b) Payments Limited to Active Farmers.--
       ``(1) In general.--To be eligible to receive, directly or 
     indirectly, payments or benefits (as described in subsections 
     (b), (c), and (d) of section 1001 as being subject to 
     limitation) with respect to a particular farming operation, 
     an individual or entity shall be actively engaged in farming 
     with respect to the operation, as provided under paragraphs 
     (2), (3), and (4).

[[Page 24623]]

       ``(2) General classes actively engaged in farming.--
       ``(A) In general.--For the purpose of paragraph (1), except 
     as otherwise provided in paragraph (3)--
       ``(i) an individual shall be considered to be actively 
     engaged in farming with respect to a farm operation if--

       ``(I) the individual makes a significant contribution 
     (based on the total value of the farming operation) to the 
     farming operation of--

       ``(aa) capital, equipment, or land; and
       ``(bb) personal labor and active personal management (in 
     accordance with subparagraph (E));

       ``(II) the individual's share of the profits or losses from 
     the farming operation is commensurate with the individual's 
     contributions to the operation; and
       ``(III) the contributions of the individual are at risk;

       ``(ii) an entity (as defined in section 1001(a)) shall be 
     considered to be actively engaged in farming with respect to 
     a farming operation if--

       ``(I) the entity separately makes a significant 
     contribution (based on the total value of the farming 
     operation) of capital, equipment, or land;
       ``(II)(aa) the stockholders or members that collectively 
     own at least 50 percent of the combined beneficial interest 
     in the entity each make a significant contribution of 
     personal labor or active personal management to the 
     operation; or
       ``(bb) in the case of a corporation or entity in which all 
     of the beneficial interests are held by family members (as 
     defined in paragraph (3)(B)(i)), any stockholder or member 
     (or household comprised of a stockholder or member and the 
     spouse of the stockholder or member) who owns at least 10 
     percent of the beneficial interest makes a significant 
     contribution of personal labor or active personal management; 
     and
       ``(III) the standards provided in subclauses (II) and (III) 
     of clause (i), as applied to the entity, are met by the 
     entity.

       ``(B) Entities making significant contributions.--If a 
     general partnership, joint venture, or similar entity (as 
     determined by the Secretary) separately makes a significant 
     contribution (based on the total value of the farming 
     operation involved) of capital, equipment, or land, and the 
     standards provided in subclauses (II) and (III) of 
     subparagraph (A)(i), as applied to the entity, are met by the 
     entity, the partners or members making a significant 
     contribution of personal labor or active personal management 
     shall be considered to be actively engaged in farming with 
     respect to the farming operation involved.
       ``(C) Equipment and personal labor.--In making 
     determinations under this subsection regarding equipment and 
     personal labor, the Secretary shall take into consideration 
     the equipment and personal labor normally and customarily 
     provided by farm operators in the area involved to produce 
     program crops.
       ``(D) Active personal management.--For an individual to be 
     considered to be providing active personal management under 
     this paragraph on behalf of the individual or entity, the 
     management provided by the individual shall be personally 
     provided on a regular, substantial, and continuous basis 
     through the supervision and direction of--
       ``(i) activities and labor involved in the farming 
     operation; and
       ``(ii) onsite services that are directly related and 
     necessary to the farming operation.
       ``(E) Significant contribution of personal labor or active 
     personal management.--
       ``(i) In general.--For an individual to be considered to be 
     providing a significant contribution of personal labor or 
     active personal management under this paragraph on behalf of 
     the individual or entity, the total contribution of personal 
     labor and active personal management shall be at least equal 
     to the lesser of--

       ``(I) the material participation standard as determined 
     under Treasury Regulation section 1.469-5T(a), as in effect 
     on the date of enactment of this subsection; or
       ``(II)(aa) 50 percent of the commensurate share of the 
     total number of hours of personal labor and active personal 
     management required to conduct the farming operation; or
       ``(bb) in the case of a stockholder or member (or household 
     comprised of a stockholder or member and the spouse of the 
     stockholder or member) who owns at least 10 percent of the 
     beneficial interest in a corporation or entity in which all 
     of the beneficial interests are held by family members (as 
     defined in paragraph (3)(B)), 50 percent of the commensurate 
     share of hours of all family members' personal labor and 
     active personal management required to conduct the farming 
     operations.

       ``(ii) Minimum number of labor hours.--For the purpose of 
     clause (i), the minimum number of labor hours required to 
     produce each commodity shall be equal to the number of hours 
     that would be necessary to conduct a farming operation for 
     the production of each commodity that is comparable in size 
     to an individual or entity's commensurate share in the 
     farming operation for the production of the commodity, based 
     on the minimum number of hours per acre required to produce 
     the commodity in the State in which the farming operation is 
     located, as determined by the Secretary.
       ``(3) Special classes actively engaged in farming.--
     Notwithstanding paragraph (2), the following persons shall be 
     considered to be actively engaged in farming with respect to 
     a farm operation:
       ``(A) Landowners.--An individual or entity that is a 
     landowner contributing the owned land and that meets the 
     standard provided in subclauses (II) and (III) of paragraph 
     (2)(A)(i), if--
       ``(i) the landowner share rents the land; and
       ``(ii) the share received by the landowner is commensurate 
     with the share of the crop or income received as rent.
       ``(B) Sharecroppers.--A sharecropper who makes a 
     significant contribution of personal labor to the farming 
     operation and, with respect to such contribution, who meets 
     the standards provided in subclauses (II) and (III) of 
     paragraph (2)(A)(i).
       ``(4) Individuals and entities not actively engaged in 
     farming.--For the purposes of paragraph (1), except as 
     provided in paragraph (3), the following individuals and 
     entities shall not be considered to be actively engaged in 
     farming with respect to a farm operation:
       ``(A) Landowners.--A landowner contributing land to the 
     farming operation if the landowner receives cash rent, or a 
     crop share guaranteed as to the amount of the commodity to be 
     paid in rent, for the use of the land.
       ``(B) Other individuals and entities.--Any other individual 
     or entity, or class of individual or entity, that fails to 
     meet the standards established under paragraphs (2) and (3), 
     as determined by the Secretary.
       ``(5) Personal labor and active personal management.--No 
     stockholder or member may provide personal labor or active 
     personal management to meet the requirements of this 
     subsection for individuals or entities collectively 
     receiving, directly or indirectly, more than the applicable 
     limits in (b), (c), and (d) of section 1001.
       ``(6) Custom farming services.--An individual or entity 
     receiving custom farming services shall be considered to be 
     separately eligible for payment limitation purposes if the 
     individual or entity is actively engaged in farming as 
     determined under paragraphs (1) through (3).
       ``(7) Growers of hybrid seed.--To determine whether an 
     individual or entity growing hybrid seed under contract shall 
     be considered to be actively engaged in farming, the 
     Secretary shall not take into consideration the existence of 
     a hybrid seed contract.
       ``(c) Notification by Entities.--To facilitate the 
     administration of this subsection, each entity receiving 
     payments or benefits (as described in subsections (b), (c), 
     and (d) of section 1001 as being subject to limitation) with 
     respect to a particular farming operation shall--
       ``(1) notify each individual or other entity that acquires 
     or holds a beneficial interest in the farming operation of 
     the requirements and limitations under this section; and
       ``(2) provide to the Secretary of Agriculture, at such 
     times and in such manner as may be prescribed by the 
     Secretary, the name and social security number of each 
     individual, or the name and taxpayer identification number of 
     each entity, that holds or acquires such a beneficial 
     interest.''.
       (5) Schemes or devices.--Section 1001B of the Food Security 
     Act of 1985 (7 U.S.C. 1308-2) is amended--
       (A) by striking ``If the Secretary of Agriculture 
     determines that any person'' and inserting:
       ``(a) In General.--If the Secretary of Agriculture 
     determines that any individual or entity'';
       (B) in subsection (a) (as designated by paragraph (1)), by 
     striking ``person'' each place it appears and inserting 
     ``individual or entity''; and
       (C) by adding at the end the following:
       ``(b) Fraud.--
       ``(1) In general.--If the Secretary determines that an 
     individual or entity has committed, or has assisted another 
     individual or entity in committing, fraud in connection with 
     a scheme or device to evade, or that has the purpose of 
     evading, section 1001, 1001A, or 1001C, the individual or 
     entity shall--
       ``(A) be ineligible to receive farm program payments (as 
     described in subsections (b), (c), and (d) of section 1001 as 
     being subject to limitation) applicable to--
       ``(i) the crop year for which the scheme or device is 
     adopted; and
       ``(ii) the succeeding 5 crop years; and
       ``(iii) be responsible for payment to the Commodity Credit 
     Corporation an amount equal to the total of all payments and 
     loan gains improperly received by the individual or entity as 
     a result of the scheme or device.
       ``(2) Examples of prohibited activities.--Prohibited 
     activities under paragraph (1) may include actions that 
     materially affect the ability of the Secretary to make a 
     determination under section 1001, including--
       ``(A) failure to submit to the Secretary documents 
     requested by the Secretary:
       ``(B) submission to the Secretary of falsified documents; 
     and

[[Page 24624]]

       ``(C) failure to notify the Secretary of a change from 
     initial submissions of information to the Secretary by an 
     individual or entity, regarding active labor, active 
     management, capital, land, or equipment provided by the 
     individual or entity person to a farming operation.''.
       (6) Foreign individuals and entities made ineligible for 
     program benefits.--Section 1001C of the Food Security Act of 
     1985 (7 U.S.C. 1308-3) is amended--
       (A) in the section heading, by striking ``persons'' and 
     inserting ``individuals and entities'';
       (B) in subsection (a), by striking ``person'' each place it 
     appears and inserting ``individual''; and
       (C) in subsection (b)--
       (i) by striking the subsection heading and inserting 
     ``Entities''; and
       (ii) in the first sentence, by striking ``a corporation or 
     other'' and inserting ``an''.

     SEC. 1102. FORFEITURE PENALTY FOR NONRECOURSE SUGAR LOANS.

       Section 156 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7272) is amended--
       (1) by redesignating subsections (h), (i), and (j) as 
     subsections (i), (j), and (k), respectively; and
       (2) by inserting after subsection (g) the following:
       ``(h) Forfeiture Penalty.--
       ``(1) In general.--In the case of each of the 2006 through 
     2010 crops of sugar beets and sugarcane, a penalty shall be 
     assessed on the forfeiture of any sugar pledged as collateral 
     for a nonrecourse loan under this section.
       ``(2) Amount.--The penalty for sugarcane and sugar beets 
     under this subsection shall be 1.2 percent of the loan rate 
     established for sugarcane and sugar beets under subsections 
     (a) and (b), respectively.
       ``(3) Effect of forfeiture.--Any payments owed producers by 
     a processor that forfeits any sugar pledged as collateral for 
     a nonrecourse loan shall be reduced in proportion to the loan 
     forfeiture penalty incurred by the processor.
       ``(4) Crops.--This subsection shall apply only to the 2006 
     through 2010 crops of sugar beets and sugarcane.''.

     SEC. 1103. COTTON COMPETITIVENESS PROVISIONS.

       (a) In General.--Section 1207 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 7937) is amended--
       (1) by striking the section heading and inserting the 
     following: ``upland cotton import quotas.'';
       (2) by striking subsection (a);
       (3) by redesignating subsections (b) and (c) as subsections 
     (a) and (b), respectively;
       (4) in subsection (a) (as so redesignated)--
       (A) in paragraph (1)--
       (i) in subparagraph (B), by striking ``, adjusted for the 
     value of any certificate issued under subsection (a),''; and
       (ii) in subparagraph (C), by striking ``, for the value of 
     any certificates issued under subsection (a)''; and
       (B) in paragraph (4), by striking ``subsection (c)'' and 
     inserting ``subsection (b)''; and
       (5) in subsection (b)(2) (as so redesignated), by striking 
     ``subsection (b)'' and inserting ``subsection (a)''.
       (b) FAIR.--Section 136 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7236) is 
     repealed.
       (c) Effective Date.--The amendments made by this section 
     take effect on August 1, 2006.

     SEC. 1104. NATIONAL DAIRY MARKET LOSS PAYMENTS.

       (a) Amount.--Section 1502(c) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 7982(c)) is amended by 
     striking paragraph (3) and inserting the following:
       ``(3)(A) during the period beginning on the first day of 
     the month the producers on a dairy farm enter into a contract 
     under this section and ending on September 30, 2005, 45 
     percent; and
       ``(B) during the period beginning on October 1, 2005, and 
     ending on September 30, 2007, 34 percent.''.
       (b) Duration.--Section 1502 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 7982) is amended by striking 
     ``2005'' each place it appears in subsections (f) and (g)(1) 
     and inserting ``2007''.
       (c) Conforming Amendments.--Section 1502 of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 7982) is 
     amended--
       (1) in subsection (g)(1), by striking ``and subsection 
     (h)''; and
       (2) by striking subsection (h).

     SEC. 1105. ADVANCE DIRECT PAYMENTS.

       (a) In General.--Section 1103(d)(2) of the Farm Security 
     and Rural Investment Act of 2002 (7 U.S.C. 7913(d)(2)) is 
     amended in the first sentence by striking ``2007 crops 
     years'' and inserting ``2005 crop years, up to 40 percent of 
     the direct payment for a covered commodity for the 2006 crop 
     year, and up to 29 percent of the direct payment for a 
     covered commodity for any of the 2007 through 2011 crop 
     years,''.
       (b) Peanuts.--Section 1303(e)(2) of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 7953(e)(2)) is amended 
     in the first sentence by striking ``2007 crops years'' and 
     inserting ``2005 crop years, up to 40 percent of the direct 
     payment for the 2006 crop year, and up to 29 percent of the 
     direct payment for any of the 2007 through 2011 crop 
     years,''.

                        Subtitle B--Conservation

     SEC. 1201. CONSERVATION RESERVE PROGRAM.

       (a) In General.--Section 1231 of the Food Security Act of 
     1985 (16 U.S.C. 3831) is amended--
       (1) in subsection (a), by striking ``2007'' and inserting 
     ``2011'';
       (2) in subsection (d), by striking ``up'' and all that 
     follows through ``years'' and inserting ``in the conservation 
     reserve at any 1 time 38,450,000 acres during the 2006 
     through 2010 calendar years and 38,880,000 acres during the 
     2006 through 2015 calendar years''; and
       (3) in subsection (h)(1)(A), by striking ``2007'' and 
     inserting ``2011''.
       (b) Funding.--Section 1241(a) of the Food Security Act of 
     1985 (16 U.S.C. 3841(a)) is amended--
       (1) in the matter before paragraph (1), by striking ``For'' 
     and inserting ``Except as otherwise provided in this 
     subsection, for''; and
       (2) in paragraph (1), by striking ``The conservation'' and 
     inserting ``For fiscal years 2002 through 2011, the 
     conservation''.
       (c) Implementation.--In implementing the amendments made by 
     this section, the Secretary of Agriculture shall achieve the 
     new maximum acreage enrollment limit not later than 2 years 
     after the date of enactment of this Act without affecting 
     conservation reserve existing contracts.

     SEC. 1202. CONSERVATION SECURITY PROGRAM.

       (a) In General.--Section 1238A(a) of the Food Security Act 
     of 1985 (16 U.S.C. 3838a(a)) is amended by striking ``2007'' 
     and inserting ``2011''.
       (b) Funding.--Section 1241(a)(3) of the Food Security Act 
     of 1985 (16 U.S.C. 3841(a)(3)) is amended by striking ``not 
     more than $6,037,000,000'' and all that follows through 
     ``2014.'' and inserting the following: ``not more than--
       ``(A) $2,570,000,000 for the period of fiscal years 2006 
     through 2010; and
       ``(B) $6,209,000,000 for the period of fiscal years 2006 
     through 2015.''.
                                 ______
                                 
  SA 2360. Mr. LOTT (for himself, Mr. Lautenberg, Mr. Stevens, Mr. 
Inouye, Mr. Burns, Mr. Carper, Mr. Specter, Mrs. Clinton, Mr. Chafee, 
Mr. Corzine, Mr. Schumer, and Mr. Biden) submitted an amendment 
intended to be proposed by him to the bill S. 1932, to provide for 
reconciliation pursuant to section 202(a) of the concurrent resolution 
on the budget for fiscal year 2006 (H. Con. Res. 95); as follows:

                 DIVISION     --AMTRAK REAUTHORIZATION

     SECTION 1. SHORT TITLE.

       This division may be cited as the ``Passenger Rail 
     Investment and Improvement Act of 2005''.

     SEC. 2. AMENDMENT OF TITLE 49, UNITED STATES CODE.

       Except as otherwise specifically provided, whenever in this 
     division an amendment is expressed in terms of an amendment 
     to a section or other provision of law, the reference shall 
     be considered to be made to a section or other provision of 
     title 49, United States Code.

     SEC. 3. TABLE OF CONTENTS.

       The table of contents for this division is as follows:

Sec. 1. Short title.
Sec. 2. Amendment of title 49, United States Code.
Sec. 3. Table of contents.

                        Title I--Authorizations

Sec. 101. Authorization for Amtrak capital and operating expenses and 
              State capital grants.
Sec. 102. Authorization for the Federal Railroad Administration.
Sec. 103. Repayment of long-term debt and capital leases.
Sec. 104. Excess railroad retirement.
Sec. 105. Other authorizations.

          Title II--Amtrak Reform and Operational Improvements

Sec. 201. National railroad passenger transportation system defined.
Sec. 202. Amtrak Board of Directors.
Sec. 203. Establishment of improved financial accounting system.
Sec. 204. Development of 5-year financial plan.
Sec. 205. Establishment of grant process.
Sec. 206. State-supported routes.
Sec. 207. Independent auditor to establish methodologies for Amtrak 
              route and service planning decisions.
Sec. 208. Metrics and standards.
Sec. 209. Passenger train performance.
Sec. 210. Long distance routes.
Sec. 211. Alternate passenger rail service program.
Sec. 212. Employee transition assistance.
Sec. 213. Northeast Corridor state-of-good-repair plan.
Sec. 214. Northeast Corridor infrastructure and operations 
              improvements.
Sec. 215. Restructuring long-term debt and capital leases.
Sec. 216. Study of compliance requirements at existing intercity rail 
              stations.

[[Page 24625]]

Sec. 217. Incentive pay.
Sec. 218. Access to Amtrak equipment and services.
Sec. 219. General Amtrak provisions.
Sec. 220. Private sector funding of passenger trains.
Sec. 221. On-board service improvements.
Sec. 222. Management accountability.

               Title III--Intercity Passenger Rail Policy

Sec. 301. Capital assistance for intercity passenger rail service.
Sec. 302. State rail plans.
Sec. 303. Next generation corridor train equipment pool.
Sec. 304. Federal rail policy.
Sec. 305. Rail cooperative research program.

              Title IV--Passenger Rail Security and Safety

Sec. 401. Systemwide Amtrak security upgrades.
Sec. 402. Fire and life-safety improvements.
Sec. 403. Amtrak plan to assist families of passengers involved in rail 
              passenger accidents.
Sec. 404. Northern border rail passenger report.
Sec. 405. Passenger, baggage, and cargo screening.

                        TITLE I--AUTHORIZATIONS

     SEC. 101. AUTHORIZATION FOR AMTRAK CAPITAL AND OPERATING 
                   EXPENSES AND STATE CAPITAL GRANTS.

       (a) Operating Grants.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for operating costs the following amounts:
       (1) For fiscal year 2006, $580,000,000.
       (2) For fiscal year 2007, $590,000,000.
       (3) For fiscal year 2008, $600,000,000.
       (4) For fiscal year 2009, $575,000,000.
       (5) For fiscal year 2010, $535,000,000.
       (6) For fiscal year 2011, $455,000,000.
       (b) Capital Grants.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for capital projects (as defined in subparagraphs 
     (A) and (B) of section 24401(2) of title 49, United States 
     Code) to bring the Northeast Corridor (as defined in section 
     24102(a)) to a state-of-good-repair, for capital expenses of 
     the national railroad passenger transportation system, and 
     for purposes of making capital grants under section 24402 of 
     that title to States, the following amounts:
       (1) For fiscal year 2006, $813,000,000.
       (2) For fiscal year 2007, $910,000,000.
       (3) For fiscal year 2008, $1,071,000,000.
       (4) For fiscal year 2009, $1,096,000,000.
       (5) For fiscal year 2010, $1,191,000,000.
       (6) For fiscal year 2011, $1,231,000,000.
       (c) Amounts for State Grants.--Out of the amounts 
     authorized under subsection (b), the following percentage 
     shall be available each fiscal year for capital grants to 
     States under section 24402 of title 49, United States Code, 
     to be administered by the Secretary of Transportation:
       (1) 3 percent for fiscal year 2006.
       (2) 11 percent for fiscal year 2007.
       (3) 23 percent for fiscal year 2008.
       (4) 25 percent for fiscal year 2009.
       (5) 31 percent for fiscal year 2010.
       (6) 33 percent for fiscal year 2011.
       (d) Project Management Oversight.--The Secretary may 
     withhold up to \1/2\ of 1 percent of amounts appropriated 
     pursuant to subsection (b) for the costs of project 
     management oversight of capital projects carried out by 
     Amtrak.

     SEC. 102. AUTHORIZATION FOR THE FEDERAL RAILROAD 
                   ADMINISTRATION.

       There are authorized to be appropriated to the Secretary of 
     Transportation for the use of the Federal Railroad 
     Administration such sums as necessary to implement the 
     provisions required under this division for fiscal years 2006 
     through 2011.

     SEC. 103. REPAYMENT OF LONG-TERM DEBT AND CAPITAL LEASES.

       (a) Amtrak Principal and Interest Payments.--
       (1) Principal on debt service.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for retirement of principal on loans for capital 
     equipment, or capital leases, not more than the following 
     amounts:
       (A) For fiscal year 2006, $130,200,000.
       (B) For fiscal year 2007, $140,700,000.
       (C) For fiscal year 2008, $156,000,000.
       (D) For fiscal year 2009, $183,800,000.
       (E) For fiscal year 2010, $156,100,000.
       (F) For fiscal year 2011, $193,500,000.
       (2) Interest on debt.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for the payment of interest on loans for capital 
     equipment, or capital leases, the following amounts:
       (A) For fiscal year 2006, $148,100,000.
       (B) For fiscal year 2007, $141,500,000.
       (C) For fiscal year 2008, $133,800,000.
       (D) For fiscal year 2009, $124,000,000.
       (E) For fiscal year 2010, $113,900,000.
       (F) For fiscal year 2011, $103,800,000.
       (3) Early Buyout Option.--There are authorized to be 
     appropriated to the Secretary of Transportation such sums as 
     may be necessary for the use of Amtrak for the payment of 
     costs associated with early buyout options if the exercise of 
     those options is determined to be advantageous to Amtrak.
       (4) Legal effect of payments under this section.--The 
     payment of principal and interest on secured debt, with the 
     proceeds of grants authorized by this section shall not--
       (A) modify the extent or nature of any indebtedness of the 
     National Railroad Passenger Corporation to the United States 
     in existence of the date of enactment of this Act;
       (B) change the private nature of Amtrak's or its 
     successors' liabilities; or
       (C) imply any Federal guarantee or commitment to amortize 
     Amtrak's outstanding indebtedness.

     SEC. 104. EXCESS RAILROAD RETIREMENT.

       There are authorized to be appropriated to the Secretary of 
     Transportation, beginning with fiscal year 2006, such sums as 
     may be necessary to pay to the Railroad Retirement Account an 
     amount equal to the amount Amtrak must pay under section 3221 
     of the Internal Revenue Code of 1986 in such fiscal years 
     that is more than the amount needed for benefits for 
     individuals who retire from Amtrak and for their 
     beneficiaries. For each fiscal year in which the Secretary 
     makes such a payment, the amounts authorized by section 
     101(a) shall be reduced by an amount equal to such payment.

     SEC. 105. OTHER AUTHORIZATIONS.

       There are authorized to be appropriated to the Secretary of 
     Transportation--
       (1) $5,000,000 for each of fiscal years 2006 through 2011 
     to carry out the rail cooperative research program under 
     section 24910 of title 49, United States Code;
       (2) $5,000,000 for fiscal year 2006, to remain available 
     until expended, for grants to Amtrak and States participating 
     in the Next Generation Corridor Train Equipment Pool 
     Committee established under section 303 of this division for 
     the purpose of designing, developing specifications for, and 
     initiating the procurement of an initial order of 1 or more 
     types of standardized next-generation corridor train 
     equipment and establishing a jointly-owned corporation to 
     manage that equipment; and
       (3) $2,000,000 for fiscal year 2007, for the use of Amtrak 
     in conducting the evaluation required by section 216 of this 
     division.

          TITLE II--AMTRAK REFORM AND OPERATIONAL IMPROVEMENTS

     SEC. 201. NATIONAL RAILROAD PASSENGER TRANSPORTATION SYSTEM 
                   DEFINED.

       (a) In General.--Section 24102 is amended--
       (1) by striking paragraph (2);
       (2) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (2), (3), and (4), respectively; and
       (3) by inserting after paragraph (4) as so redesignated the 
     following:
       ``(5) `national rail passenger transportation system' 
     means--
       ``(A) the segment of the Northeast Corridor between Boston, 
     Massachusetts and Washington, D.C.;
       ``(B) rail corridors that have been designated by the 
     Secretary of Transportation as high-speed corridors (other 
     than corridors described in subparagraph (A)), but only after 
     they have been improved to permit operation of high-speed 
     service;
       ``(C) long distance routes of more than 750 miles between 
     endpoints operated by Amtrak as of the date of enactment of 
     the Passenger Rail Investment and Improvement Act of 2005; 
     and
       ``(D) short-distance corridors, or routes of not more than 
     750 miles between endpoints, operated by--
       ``(i) Amtrak; or
       ``(ii) another rail carrier that receives funds under 
     chapter 244.''.
       (b) Amtrak Routes With State Funding.--
       (1) In general.--Chapter 247 is amended by inserting after 
     section 24701 the following:

     ``Sec. 24702. Transportation requested by States, 
       authorities, and other persons

       ``(a) Contracts for Transportation.--Amtrak may enter into 
     a contract with a State, a regional or local authority, or 
     another person for Amtrak to operate an intercity rail 
     service or route not included in the national rail passenger 
     transportation system upon such terms as the parties thereto 
     may agree.
       ``(b) Discontinuance.--Upon termination of a contract 
     entered into under this section, or the cessation of 
     financial support under such a contract by either party, 
     Amtrak may discontinue such service or route, notwithstanding 
     any other provision of law.''.
       (2) Conforming amendment.--The chapter analysis for chapter 
     247 is amended by inserting after the item relating to 
     section 24701 the following:

``24702. Transportation requested by States, authorities, and other 
              persons''.

       (c) Amtrak To Continue To Provide Non-High-speed 
     Services.--Nothing in this division is intended to preclude 
     Amtrak from restoring, improving, or developing non-high-
     speed intercity passenger rail service.
       (d) Applicability of Section 24706.--Section 24706 is 
     amended by adding at the end the following:
       ``(c) Applicability.--This section applies to all service 
     over routes provided by Amtrak, notwithstanding any provision 
     of section 24701 of this title or any other provision of this 
     title except section 24702(b).''.

     SEC. 202. AMTRAK BOARD OF DIRECTORS.

       (a) In General.--Section 24302 is amended to read as 
     follows:

     ``Sec. 24302. Board of directors

       ``(a) Composition and Terms.--

[[Page 24626]]

       ``(1) The Board of Directors of Amtrak is composed of the 
     following 10 directors, each of whom must be a citizen of the 
     United States:
       ``(A) The Secretary of Transportation.
       ``(B) The President of Amtrak, who shall serve ex officio, 
     as a non-voting member.
       ``(C) 8 individuals appointed by the President of the 
     United States, by and with the advice and consent of the 
     Senate, with general business and financial experience, 
     experience or qualifications in transportation, freight and 
     passenger rail transportation, travel, hospitality, cruise 
     line, and passenger air transportation businesses, or 
     representatives of employees or users of passenger rail 
     transportation or a State government.
       ``(2) In selecting individuals described in paragraph (1) 
     for nominations for appointments to the Board, the President 
     shall consult with the Speaker of the House of 
     Representatives, the Minority Leader of the House of 
     Representatives, the Majority Leader of the Senate, and the 
     Minority Leader of the Senate and try to provide adequate and 
     balanced representation of the major geographic regions of 
     the United States served by Amtrak.
       ``(3) An individual appointed under paragraph (1)(C) of 
     this subsection serves for 5 years or until the individual's 
     successor is appointed and qualified. Not more than 5 
     individuals appointed under paragraph (1)(C) may be members 
     of the same political party.
       ``(4) The Board shall elect a chairman and a vice chairman 
     from among its membership. The vice chairman shall serve as 
     chairman in the absence of the chairman.
       ``(5) The Secretary may be represented at board meetings by 
     the Secretary's designee.
       ``(6) The voting privileges of the President can be changed 
     by a unanimous decision of the Board.
       ``(b) Pay and Expenses.--Each director not employed by the 
     United States Government is entitled to $300 a day when 
     performing Board duties. Each Director is entitled to 
     reimbursement for necessary travel, reasonable secretarial 
     and professional staff support, and subsistence expenses 
     incurred in attending Board meetings.
       ``(c) Vacancies.--A vacancy on the Board is filled in the 
     same way as the original selection, except that an individual 
     appointed by the President of the United States under 
     subsection (a)(1)(C) of this section to fill a vacancy 
     occurring before the end of the term for which the 
     predecessor of that individual was appointed is appointed for 
     the remainder of that term. A vacancy required to be filled 
     by appointment under subsection (a)(1)(C) must be filled not 
     later than 120 days after the vacancy occurs.
       ``(d) Quorum.--A majority of the members serving shall 
     constitute a quorum for doing business.
       ``(e) Bylaws.--The Board may adopt and amend bylaws 
     governing the operation of Amtrak. The bylaws shall be 
     consistent with this part and the articles of 
     incorporation.''.
       (b) Effective Date for Directors' Provision.--The amendment 
     made by subsection (a) shall take effect on January 1, 2006. 
     The members of the Amtrak Board serving on the date of 
     enactment of this Act may continue to serve for the remainder 
     of the term to which they were appointed.

     SEC. 203. ESTABLISHMENT OF IMPROVED FINANCIAL ACCOUNTING 
                   SYSTEM.

       (a) In General.--The Amtrak Board of Directors--
       (1) may employ an independent financial consultant with 
     experience in railroad accounting to assist Amtrak in 
     improving Amtrak's financial accounting and reporting system 
     and practices; and
       (2) shall implement a modern financial accounting and 
     reporting system that will produce accurate and timely 
     financial information in sufficient detail--
       (A) to enable Amtrak to assign revenues and expenses 
     appropriately to each of its lines of business and to each 
     major activity within each line of business activity, 
     including train operations, equipment maintenance, ticketing, 
     and reservations;
       (B) to aggregate expenses and revenues related to 
     infrastructure and distinguish them from expenses and 
     revenues related to rail operations;
       (C) to allow the analysis of ticketing and reservation 
     information on a real-time basis;
       (D) to provide Amtrak cost accounting data; and
       (E) to allow financial analysis by route and service.
       (b) Verification of System; Report.--The Inspector General 
     of the Department of Transportation shall review the 
     accounting system designed and implemented under subsection 
     (a) to ensure that it accomplishes the purposes for which it 
     is intended. The Inspector General shall report his findings 
     and conclusions, together with any recommendations, to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure.

     SEC. 204. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.

       (a) Development of 5-Year Financial Plan.--The Amtrak Board 
     of Directors shall submit an annual budget and business plan 
     for Amtrak, and a 5-year financial plan for the fiscal year 
     to which that budget and business plan relate and the 
     subsequent 4 years, prepared in accordance with this section, 
     to the Secretary of Transportation and the Inspector General 
     of the Department of Transportation no later than--
       (1) the first day of each fiscal year beginning after the 
     date of enactment of this Act; or
       (2) the date that is 60 days after the date of enactment of 
     an appropriation Act for the fiscal year, if later.
       (b) Contents of 5-Year Financial Plan.--The 5-year 
     financial plan for Amtrak shall include, at a minimum--
       (1) all projected revenues and expenditures for Amtrak, 
     including governmental funding sources;
       (2) projected ridership levels for all Amtrak passenger 
     operations;
       (3) revenue and expenditure forecasts for non-passenger 
     operations;
       (4) capital funding requirements and expenditures necessary 
     to maintain passenger service which will accommodate 
     predicted ridership levels and predicted sources of capital 
     funding;
       (5) operational funding needs, if any, to maintain current 
     and projected levels of passenger service, including state-
     supported routes and predicted funding sources;
       (6) projected capital and operating requirements, 
     ridership, and revenue for any new passenger service 
     operations or service expansions;
       (7) an assessment of the continuing financial stability of 
     Amtrak, as indicated by factors such as the ability of the 
     Federal government to fund capital and operating requirements 
     adequately, Amtrak's ability to efficiently manage its 
     workforce, and Amtrak's ability to effectively provide 
     passenger train service;
       (8) estimates of long-term and short-term debt and 
     associated principle and interest payments (both current and 
     anticipated);
       (9) annual cash flow forecasts;
       (10) a statement describing methods of estimation and 
     significant assumptions;
       (11) specific measures that demonstrate measurable 
     improvement year over year in Amtrak's ability to operate 
     with reduced Federal operating assistance; and
       (12) capital and operating expenditures for anticipated 
     security needs.
       (c) Standards To Promote Financial Stability.--In meeting 
     the requirements of subsection (b), Amtrak shall--
       (1) apply sound budgetary practices, including reducing 
     costs and other expenditures, improving productivity, 
     increasing revenues, or combinations of such practices;
       (2) use the categories specified in the financial 
     accounting and reporting system developed under section 203 
     when preparing its 5-year financial plan; and
       (3) ensure that the plan is consistent with the 
     authorizations of appropriations under title I of this 
     division.
       (d) Assessment by DOT Inspector General.--
       (1) In general.--The Inspector General of the Department of 
     Transportation shall assess the 5-year financial plans 
     prepared by Amtrak under this section to determine whether 
     they meet the requirements of subsection (b), and may suggest 
     revisions to any components thereof that do not meet those 
     requirements.
       (2) Assessment to be furnished to the congress.--The 
     Inspector General shall furnish to the House of 
     Representatives Committee on Appropriations, the Senate 
     Committee on Appropriations, the House of Representatives 
     Committee on Transportation and Infrastructure, and the 
     Senate Committee on Commerce, Science, and Transportation--
       (A) an assessment of the annual budget within 90 days after 
     receiving it from Amtrak; and
       (B) an assessment of the remaining 4 years of the 5-year 
     financial plan within 180 days after receiving it from 
     Amtrak.

     SEC. 205. ESTABLISHMENT OF GRANT PROCESS.

       (a) Grant Requests.--Amtrak shall submit grant requests 
     (including a schedule for the disbursement of funds), 
     consistent with the requirements of this division, to the 
     Secretary of Transportation for funds authorized to be 
     appropriated to the Secretary for the use of Amtrak under 
     sections 101(a) and (b), 103, and 105.
       (b) Procedures for Grant Requests.--The Secretary shall 
     establish substantive and procedural requirements, including 
     schedules, for grant requests under this section not later 
     than 30 days after the date of enactment of this Act and 
     shall transmit copies to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure. As part of 
     those requirements, the Secretary shall require, at a 
     minimum, that Amtrak deposit grant funds, consistent with the 
     appropriated amounts for each area of expenditure in a given 
     fiscal year, in the following 3 accounts:
       (1) The Amtrak Operating account.
       (2) The Amtrak General Capital account.
       (3) The Northeast Corridor Improvement funds account.

     Amtrak may not transfer such funds to another account or 
     expend such funds for any purpose other than the purposes 
     covered by the account in which the funds are deposited 
     without approval by the Secretary.

[[Page 24627]]

       (c) Review and Approval.--
       (1) 30-day approval process.--The Secretary shall complete 
     the review of a complete grant request (including the 
     disbursement schedule) and approve or disapprove the request 
     within 30 days after the date on which Amtrak submits the 
     grant request. If the Secretary disapproves the request or 
     determines that the request is incomplete or deficient, the 
     Secretary shall include the reason for disapproval or the 
     incomplete items or deficiencies in the notice to Amtrak.
       (2) 15-day modification period.--Within 15 days after 
     receiving notification from the Secretary under the preceding 
     sentence, Amtrak shall submit a modified request for the 
     Secretary's review.
       (3) Revised requests.--Within 15 days after receiving a 
     modified request from Amtrak, the Secretary shall either 
     approve the modified request, or, if the Secretary finds that 
     the request is still incomplete or deficient, the Secretary 
     shall identify in writing to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Transportation and 
     Infrastructure the remaining deficiencies and recommend a 
     process for resolving the outstanding portions of the 
     request.

     SEC. 206. STATE-SUPPORTED ROUTES.

       (a) In General.--Within 2 years after the date of enactment 
     of this Act, the Board of Directors of Amtrak, in 
     consultation with the Secretary of Transportation and the 
     governors of each State and the Mayor of the District of 
     Columbia or groups representing those officials, shall 
     develop and implement a standardized methodology for 
     establishing and allocating the operating and capital costs 
     among the States and Amtrak associated with trains operated 
     on routes described in section 24102(5)(B) or (D) or section 
     24702 that--
       (1) ensures, within 5 years after the date of enactment of 
     this Act, equal treatment in the provision of like services 
     of all States and groups of States (including the District of 
     Columbia); and
       (2) allocates to each route the costs incurred only for the 
     benefit of that route and a proportionate share, based upon 
     factors that reasonably reflect relative use, of costs 
     incurred for the common benefit of more than 1 route.
       (b) Review.--If Amtrak and the States (including the 
     District of Columbia) in which Amtrak operates such routes do 
     not voluntarily adopt and implement the methodology developed 
     under subsection (a) in allocating costs and determining 
     compensation for the provision of service in accordance with 
     the date established therein, the Surface Transportation 
     Board shall determine the appropriate methodology required 
     under subsection (a) for such services in accordance with the 
     procedures and procedural schedule applicable to a proceeding 
     under section 24904(c) of title 49, United States Code, and 
     require the full implementation of this methodology with 
     regards to the provision of such service within 1 year after 
     the Board's determination of the appropriate methodology.
       (c) Use of Chapter 244 Funds.--Funds provided to a State 
     under chapter 244 of title 49, United States Code, may be 
     used, as provided in that chapter, to pay capital costs 
     determined in accordance with this section.

     SEC. 207. INDEPENDENT AUDITOR TO ESTABLISH METHODOLOGIES FOR 
                   AMTRAK ROUTE AND SERVICE PLANNING DECISIONS.

       (a) Methodology Development.--The Federal Railroad 
     Administration shall obtain the services of an independent 
     auditor or consultant to develop and recommend objective 
     methodologies for determining intercity passenger routes and 
     services, including the establishment of new routes, the 
     elimination of existing routes, and the contraction or 
     expansion of services or frequencies over such routes. In 
     developing such methodologies, the auditor or consultant 
     shall consider--
       (1) the current or expected performance and service quality 
     of intercity passenger train operations, including cost 
     recovery, on-time performance and minutes of delay, 
     ridership, on-board services, stations, facilities, 
     equipment, and other services;
       (2) connectivity of a route with other routes;
       (3) the transportation needs of communities and populations 
     that are not well served by other forms of public 
     transportation;
       (4) Amtrak's and other major intercity passenger rail 
     service providers in other countries' methodologies for 
     determining intercity passenger rail routes and services; and
       (5) the views of the States and other interested parties.
       (b) Submittal to Congress.--The auditor or consultant shall 
     submit recommendations developed under subsection (a) to 
     Amtrak, the House of Representatives Committee on 
     Transportation and Infrastructure, and the Senate Committee 
     on Commerce, Science, and Transportation.
       (c) Consideration of Recommendations.--Within 90 days after 
     receiving the recommendations developed under subsection (a) 
     by the independent auditor or consultant, the Amtrak Board 
     shall consider the adoption of those recommendations. The 
     Board shall transmit a report to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Transportation and 
     Infrastructure explaining its action in adopting or failing 
     to adopt any of the recommendations.
       (d) Authorization of Appropriations.--There are authorized 
     to be made available to the Secretary of Transportation, out 
     of any amounts authorized by this division to be appropriated 
     for the benefit of Amtrak and not otherwise obligated or 
     expended, such sums as may be necessary to carry out this 
     section.
       (e) Pioneer Route.--Within 2 years after the date of 
     enactment of this Act, Amtrak shall conduct a 1-time 
     evaluation of the Pioneer Route formerly operated by Amtrak 
     to determine, using methodologies adopted under subsection 
     (c), whether a level of passenger demand exists that would 
     warrant consideration of reinstating the entire Pioneer Route 
     service or segments of that service.

     SEC. 208. METRICS AND STANDARDS.

       (a) In General.--Within 180 days after the date of 
     enactment of this Act, the Administrator of the Federal 
     Railroad Administration and Amtrak shall jointly, in 
     consultation with the Surface Transportation Board, rail 
     carriers over whose rail lines Amtrak trains operate, States, 
     Amtrak employees, and groups representing Amtrak passengers, 
     as appropriate, develop new or improve existing metrics and 
     minimum standards for measuring the performance and service 
     quality of intercity passenger train operations, including 
     cost recovery, on-time performance and minutes of delay, 
     ridership, on-board services, stations, facilities, 
     equipment, and other services. Such metrics, at a minimum, 
     shall include the percentage of avoidable and fully allocated 
     operating costs covered by passenger revenues on each route, 
     ridership per train mile operated, measures of on-time 
     performance and delays incurred by intercity passenger trains 
     on the rail lines of each rail carrier and, for long distance 
     routes, measures of connectivity with other routes in all 
     regions currently receiving Amtrak service and the 
     transportation needs of communities and populations that are 
     not well-served by other forms of public transportation. 
     Amtrak shall provide reasonable access to the Federal 
     Railroad Administration in order to enable the Administration 
     to carry out its duty under this section.
       (b) Quarterly Reports.--The Administrator of the Federal 
     Railroad Administration shall collect the necessary data and 
     publish a quarterly report on the performance and service 
     quality of intercity passenger train operations, including 
     cost recovery, ridership, on-time performance and minutes of 
     delay, causes of delay, on-board services, stations, 
     facilities, equipment, and other services.
       (c) Contract With Host Rail Carriers.--To the extent 
     practicable, Amtrak and its host rail carriers shall 
     incorporate the metrics and standards developed under 
     subsection (a) into their access and service agreements.
       (d) Arbitration.--If the development of the metrics and 
     standards is not completed within the 180-day period required 
     by subsection (a), any party involved in the development of 
     those standards may petition the Surface Transportation Board 
     to appoint an arbitrator to assist the parties in resolving 
     their disputes through binding arbitration.

     SEC. 209. PASSENGER TRAIN PERFORMANCE.

       (a) In General.--Section 24308 is amended by adding at the 
     end the following:
       ``(f) Passenger Train Performance and Other Standards.--
       ``(1) Investigation of substandard performance.--If the on-
     time performance of any intercity passenger train averages 
     less than 80 percent for any 2 consecutive calendar quarters, 
     or the service quality of intercity passenger train 
     operations for which minimum standards are established under 
     section 208 of the Passenger Rail Investment and Improvement 
     Act of 2005 fails to meet those standards for 2 consecutive 
     calendar quarters, the Surface Transportation Board shall 
     investigate whether, and to what extent, delays or failure to 
     achieve minimum standards are due to causes that could 
     reasonably be addressed by a rail carrier over the tracks of 
     which the intercity passenger train operates or reasonably 
     addressed by the intercity passenger rail operator. In 
     carrying out such an investigation, the Board shall obtain 
     information from all parties involved and make 
     recommendations regarding reasonable measures to improve the 
     service, quality, and on-time performance of the train.
       ``(2) Problems caused by host rail carrier.--If the Board 
     determines that delays or failures to achieve minimum 
     standards investigated under paragraph (1) are attributable 
     to a rail carrier's failure to provide preference to Amtrak 
     over freight transportation under subsection (c), then the 
     Board shall enforce its recommendations for relief under this 
     section.
       ``(3) Penalties.--
       ``(A) In general.--The Board shall publish a schedule of 
     penalties which will--
       ``(i) fairly reflect the extent to which Amtrak suffers 
     financial loss as a result of host rail carrier delays or 
     failure to achieve minimum standards; and

[[Page 24628]]

       ``(ii) will adequately deter future actions which may 
     reasonably be expected to be likely to result in delays to 
     Amtrak.
       ``(B) Assessment.--The Board may assess these penalties 
     upon a host rail carrier.
       ``(C) Use.--The Board shall make any amounts received as 
     penalties under this paragraph available to Amtrak or a State 
     contracting with Amtrak, as applicable, for capital or 
     operating expenditures on such routes.''.
       (b) Change of Reference.--Section 24308 is amended--
       (1) by striking ``Interstate Commerce Commission'' in 
     subsection (a)(2)(A) and inserting ``Surface Transportation 
     Board'';
       (2) by striking ``Commission'' each place it appears and 
     inserting ``Board'';
       (3) by striking ``Secretary'' the last 3 places it appears 
     in subsection (c) and each place it appears in subsections 
     (d) and (e) and inserting ``Board''.

     SEC. 210. LONG DISTANCE ROUTES.

       (a) In General.--Chapter 247 is amended by adding at the 
     end thereof the following:

     ``Sec. 24710. Long distance routes

       ``(a) Annual Evaluation.--Using the financial and 
     performance metrics developed under section 208 of the 
     Passenger Rail Investment and Improvement Act of 2005, Amtrak 
     shall--
       ``(1) evaluate annually the financial and operating 
     performance of each long distance passenger rail route 
     operated by Amtrak; and
       ``(2) rank the overall performance of such routes for 2006 
     and identify each long distance passenger rail route operated 
     by Amtrak in 2006 according to its overall performance as 
     belonging to the best performing third of such routes, the 
     second best performing third of such routes, or the worst 
     performing third of such routes.
       ``(b) Performance Improvement Plan.--Amtrak shall develop 
     and publish a performance improvement plan for its long 
     distance passenger rail routes to achieve financial and 
     operating improvements based on the data collected through 
     the application of the financial and performance metrics 
     developed under section 208 of that Act. The plan shall 
     address--
       ``(1) on-time performance;
       ``(2) scheduling, frequency, routes, and stops;
       ``(3) the feasibility of restructuring service into 
     connected corridor service;
       ``(4) performance-related equipment changes and capital 
     improvements;
       ``(5) on-board amenities and service, including food, first 
     class, and sleeping car service;
       ``(6) State or other non-Federal financial contributions;
       ``(7) improving financial performance; and
       ``(8) other aspects of Amtrak's long distance passenger 
     rail routes that affect the financial, competitive, and 
     functional performance of service on Amtrak's long distance 
     passenger rail routes.
       ``(c) Implementation.--Amtrak shall implement the 
     performance improvement plan developed under subsection (b)--
       ``(1) beginning in fiscal year 2007 for those routes 
     identified as being in the worst performing third under 
     subsection (a)(2);
       ``(2) beginning in fiscal year 2008 for those routes 
     identified as being in the second best performing third under 
     subsection (a)(2); and
       ``(3) beginning in fiscal year 2009 for those routes 
     identified as being in the best performing third under 
     subsection (a)(2).
       ``(d) Enforcement.--The Federal Railroad Administration 
     shall monitor the development, implementation, and outcome of 
     improvement plans under this section. If, for any year, it 
     determines that Amtrak is not making reasonable progress in 
     implementing its performance improvement plan or in achieving 
     the expected outcome of the plan for any calendar year, the 
     Federal Railroad Administration--
       ``(1) shall notify Amtrak, the Inspector General of the 
     Department of Transportation, and appropriate Congressional 
     committees of its determination under this subsection;
       ``(2) shall provide an opportunity for a hearing with 
     respect to that determination; and
       ``(3) may withhold any appropriated funds otherwise 
     available to Amtrak for the operation of a route or routes on 
     which it is not making progress, other than funds made 
     available for passenger safety or security measures.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     247 is amended by inserting after the item relating to 
     section 24709 the following:

``24710. Long distance routes''.

     SEC. 211. ALTERNATE PASSENGER RAIL SERVICE PROGRAM.

       (a) In General.--Chapter 247, as amended by section 209, is 
     amended by adding at the end thereof the following:

     ``Sec. 24711. Alternate passenger rail service program

       ``(a) In General.--Within 1 year after the date of 
     enactment of the Passenger Rail Investment and Improvement 
     Act of 2005, the Federal Railroad Administration shall 
     initiate a rulemaking proceeding to develop a program under 
     which--
       ``(1) a rail carrier or rail carriers that own 
     infrastructure over which Amtrak operates a passenger rail 
     service route described in subparagraph (B), (C), or (D) of 
     section 24102(5) or in section 24702 of title 49, United 
     States Code may petition the Federal Railroad Administration 
     to be considered as a passenger rail service provider over 
     that route in lieu of Amtrak;
       ``(2) the Administration would notify Amtrak within 30 days 
     after receiving a petition under paragraph (1) and establish 
     a deadline by which both the petitioner and Amtrak would be 
     required to submit a bid to provide passenger rail service 
     over the route to which the petition relates;
       ``(3) each bid would describe how the bidder would operate 
     the route, what Amtrak passenger equipment would be needed, 
     if any, what sources of non-Federal funding the bidder would 
     use, including any State subsidy, among other things;
       ``(4) the Administration would make a decision and execute 
     a contract within a specified, limited time after that 
     deadline awarding to the winning bidder--
       ``(A) the right and obligation to provide passenger rail 
     service over that route subject to such performance standards 
     as the Administration may require, consistent with the 
     standards developed under section 208 of this division; and
       ``(B) an operating subsidy--
       ``(i) for the first year at a level not in excess of the 
     level in effect during the fiscal year preceding the fiscal 
     year in which the petition was received, adjusted for 
     inflation;
       ``(ii) for any subsequent years at such level, adjusted for 
     inflation; and
       ``(5) each bid would contain a staffing plan describing the 
     number of employees needed to operate the service, the job 
     assignments and requirements, and the terms of work for 
     prospective and current employees of the bidder for the 
     service outlined in the bid, and such staffing plan would be 
     made available by the winning bidder to the public after the 
     bid award.
       ``(b) Implementation.--
       ``(1) Initial petitions.--Pursuant to any rules or 
     regulations promulgated under subsection (A), the 
     Administration shall establish a deadline for the submission 
     of a petition under subsection (a)--
       ``(A) during fiscal year 2007 for operations commencing in 
     fiscal year 2008; and
       ``(B) during the immediately preceding fiscal year for 
     operations commencing in subsequent fiscal years.
       ``(2) Route limitations.--The Administration may not make 
     the program available with respect to more than 1 Amtrak 
     passenger rail route for operations beginning in fiscal year 
     2008 nor to more than 2 such routes for operations beginning 
     in fiscal year 2010 and subsequent fiscal years.
       ``(c) Performance Standards; Access to Facilities; 
     Employees.--If the Administration awards the right and 
     obligation to provide passenger rail service over a route 
     under the program to a rail carrier or rail carriers--
       ``(1) it shall execute a contract with the rail carrier or 
     rail carriers for rail passenger operations on that route 
     that conditions the operating and subsidy rights upon--
       ``(A) the service provider continuing to provide passenger 
     rail service on the route that is no less frequent, nor over 
     a shorter distance, than Amtrak provided on that route before 
     the award; and
       ``(B) the service provider's compliance with the minimum 
     standards established under section 208 of the Passenger Rail 
     Investment and Improvement Act of 2005 and such additional 
     performance standards as the Administration may establish;
       ``(2) it shall, if the award is made to a rail carrier 
     other than Amtrak, require Amtrak to provide access to its 
     reservation system, stations, and facilities to any rail 
     carrier or rail carriers awarded a contract under this 
     section, in accordance with section 218 of that Act, 
     necessary to carry out the purposes of this section;
       ``(3) the employees of any person used by a rail carrier or 
     rail carriers (as defined in section 10102(5) of this title) 
     in the operation of a route under this section shall be 
     considered an employee of that carrier or carriers and 
     subject to the applicable Federal laws and regulations 
     governing similar crafts or classes of employees of Amtrak, 
     including provisions under section 121 of the Amtrak Reform 
     and Accountability Act of 1997 relating to employees that 
     provide food and beverage service; and
       ``(4) the winning bidder shall provide preference in hiring 
     to qualified Amtrak employees displaced by the award of the 
     bid, consistent with the staffing plan submitted by the 
     bidder.
       ``(d) Cessation of Service.--If a rail carrier or rail 
     carriers awarded a route under this section cease to operate 
     the service or fail to fulfill their obligations under the 
     contract required under subsection (c), the Administrator, in 
     collaboration with the Surface Transportation Board shall 
     take any necessary action consistent with this title to 
     enforce the contract and ensure the continued provision of 
     service, including the installment of an interim service 
     provider and re-bidding the contract to operate the service. 
     The entity providing service shall either be Amtrak or a rail 
     carrier defined in section 24711(a)(1).
       ``(e) Adequate Resources.--Before taking any action allowed 
     under this section, the

[[Page 24629]]

     Secretary shall certify that the Administrator has sufficient 
     resources that are adequate to undertake the program 
     established under this section.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     247, as amended by section 209, is amended by inserting after 
     the item relating to section 24710 the following:

``24711. Alternate passenger rail service program''.

     SEC. 212. EMPLOYEE TRANSITION ASSISTANCE.

       (a) Provision of Financial Incentives.--For Amtrak 
     employees who are adversely affected by the cessation of the 
     operation of a long distance route or any other route under 
     section 24711 of title 49, United States Code, previously 
     operated by Amtrak, the Secretary shall develop a program 
     under which the Secretary may, in the Secretary's discretion, 
     provide grants for financial incentives to be provided to 
     employees of the National Railroad Passenger Corporation who 
     voluntarily terminate their employment with the Corporation 
     and relinquish any legal rights to receive termination-
     related payments under any contractual agreement with the 
     Corporation.
       (b) Conditions for Financial Incentives.--As a condition 
     for receiving financial assistance grants under this section, 
     the Corporation must certify that--
       (1) a reasonable attempt was made to reassign an employee 
     adversely affected under section 24711 of title 49, United 
     States Code, or by the elimination of any route, to other 
     positions within the Corporation in accordance with any 
     contractual agreements;
       (2) the financial assistance results in a net reduction in 
     the total number of employees equal to the number receiving 
     financial incentives;
       (3) the financial assistance results in a net reduction in 
     total employment expense equivalent to the total employment 
     expenses associated with the employees receiving financial 
     incentives; and
       (4) the total number of employees eligible for termination-
     related payments will not be increased without the express 
     written consent of the Secretary.
       (c) Amount of Financial Incentives.--The financial 
     incentives authorized under this section may be no greater 
     than $50,000 per employee.
       (d) Authorization of Appropriations.--There are hereby 
     authorized to be appropriated to the Secretary such sums as 
     may be necessary to make grants to the National Railroad 
     Passenger Corporation to provide financial incentives under 
     subsection (a).
       (e) Termination-Related Payments.--If Amtrak employees 
     adversely affected by the cessation of Amtrak service 
     resulting from the awarding of a grant to an operator other 
     than Amtrak for the operation of a route under section 24711 
     of title 49, United States Code, or any other route, 
     previously operated by Amtrak do not receive financial 
     incentives under subsection (a), then the Secretary shall 
     make grants to the National Railroad Passenger Corporation 
     from funds authorized by section 102 of this division for 
     termination-related payments to employees under existing 
     contractual agreements.

     SEC. 213. NORTHEAST CORRIDOR STATE-OF-GOOD-REPAIR PLAN.

       (a) In General.--Within 6 months after the date of 
     enactment of this Act, the National Railroad Passenger 
     Corporation, in consultation with the Secretary and the 
     States (including the District of Columbia) that make up the 
     Northeast Corridor (as defined in section 24102 of title 49, 
     United States Code), shall prepare a capital spending plan 
     for capital projects required to return the Northeast 
     Corridor to a state of good repair by the end of fiscal year 
     2011, consistent with the funding levels authorized in this 
     division and shall submit the plan to the Secretary.
       (b) Approval by the Secretary.--
       (1) The Corporation shall submit the capital spending plan 
     prepared under this section to the Secretary of 
     Transportation for review and approval pursuant to the 
     procedures developed under section 205 of this division.
       (2) The Secretary of Transportation shall require that the 
     plan be updated at least annually and shall review and 
     approve such updates. During review, the Secretary shall seek 
     comments and review from the commission established under 
     section 24905 of title 49, United States Code, and other 
     Northeast Corridor users regarding the plan.
       (3) The Secretary shall make grants to the Corporation with 
     funds authorized by section 101(b) for Northeast Corridor 
     capital investments contained within the capital spending 
     plan prepared by the Corporation and approved by the 
     Secretary.
       (4) Using the funds authorized by section 101(d), the 
     Secretary shall review Amtrak's capital expenditures funded 
     by this section to ensure that such expenditures are 
     consistent with the capital spending plan and that Amtrak is 
     providing adequate project management oversight and fiscal 
     controls.
       (c) Eligibility of Expenditures.--The Federal share of 
     expenditures for capital improvements under this section may 
     not exceed 100 percent.

     SEC. 214. NORTHEAST CORRIDOR INFRASTRUCTURE AND OPERATIONS 
                   IMPROVEMENTS.

       (a) In General.--Section 24905 is amended to read as 
     follows:

     ``Sec. 24905. Northeast Corridor Infrastructure and 
       Operations Advisory Commission; Safety and Security 
       Committee.

       ``(a) Northeast Corridor Infrastructure and Operations 
     Advisory Commission.--
       ``(1) Within 180 days after the date of enactment of the 
     Passenger Rail Investment and Improvement Act of 2005, the 
     Secretary of Transportation shall establish a Northeast 
     Corridor Infrastructure and Operations Advisory Commission 
     (hereinafter referred to in this section as the `Commission') 
     to promote mutual cooperation and planning pertaining to the 
     rail operations and related activities of the Northeast 
     Corridor. The Commission shall be made up of--
       ``(A) members representing the National Railroad Passenger 
     Corporation;
       ``(B) members representing the Secretary of Transportation 
     and the Federal Railroad Administration;
       ``(C) 1 member from each of the States (including the 
     District of Columbia) that constitute the Northeast Corridor 
     as defined in section 24102, designated by, and serving at 
     the pleasure of, the chief executive officer thereof; and
       ``(D) non-voting representatives of freight railroad 
     carriers using the Northeast Corridor selected by the 
     Secretary.
       ``(2) The Secretary shall ensure that the membership 
     belonging to any of the groups enumerated under subparagraph 
     (1) shall not constitute a majority of the commission's 
     memberships.
       ``(3) The commission shall establish a schedule and 
     location for convening meetings, but shall meet no less than 
     four times per fiscal year, and the commission shall develop 
     rules and procedures to govern the commission's proceedings.
       ``(4) A vacancy in the Commission shall be filled in the 
     manner in which the original appointment was made.
       ``(5) Members shall serve without pay but shall receive 
     travel expenses, including per diem in lieu of subsistence, 
     in accordance with sections 5702 and 5703 of title 5, United 
     States Code.
       ``(6) The Chairman of the Commission shall be elected by 
     the members.
       ``(7) The Commission may appoint and fix the pay of such 
     personnel as it considers appropriate.
       ``(8) Upon request of the Commission, the head of any 
     department or agency of the United States may detail, on a 
     reimbursable basis, any of the personnel of that department 
     or agency to the Commission to assist it in carrying out its 
     duties under this section.
       ``(9) Upon the request of the Commission, the Administrator 
     of General Services shall provide to the Commission, on a 
     reimbursable basis, the administrative support services 
     necessary for the Commission to carry out its 
     responsibilities under this section.
       ``(10) The commission shall consult with other entities as 
     appropriate.
       ``(b) General Recommendations.--The Commission shall 
     develop recommendations concerning Northeast Corridor rail 
     infrastructure and operations including proposals addressing, 
     as appropriate--
       ``(1) short-term and long term capital investment needs 
     beyond the state-of-good-repair under section 213;
       ``(2) future funding requirements for capital improvements 
     and maintenance;
       ``(3) operational improvements of intercity passenger rail, 
     commuter rail, and freight rail services;
       ``(4) opportunities for additional non-rail uses of the 
     Northeast Corridor;
       ``(5) scheduling and dispatching;
       ``(6) safety and security enhancements;
       ``(7) equipment design;
       ``(8) marketing of rail services; and
       ``(9) future capacity requirements.
       ``(c) Access Costs.--
       ``(1) Development of formula.--Within 1 year after 
     verification of Amtrak's new financial accounting system 
     pursuant to section 203(b) of the Passenger Rail Investment 
     and Improvement Act of 2005, the Commission shall--
       ``(A) develop a standardized formula for determining and 
     allocating costs, revenues, and compensation for Northeast 
     Corridor commuter rail passenger transportation, as defined 
     in section 24102 of this title, that use National Railroad 
     Passenger Corporation facilities or services or that provide 
     such facilities or services to the National Railroad 
     Passenger Corporation that ensure that--
       ``(i) there is no cross-subsidization of commuter rail 
     passenger, intercity rail passenger, or freight rail 
     transportation; and
       ``(ii) each service is assigned the costs incurred only for 
     the benefit of that service, and a proportionate share, based 
     upon factors that reasonably reflect relative use, of costs 
     incurred for the common benefit of more than 1 service;
       ``(B) develop a proposed timetable for implementing the 
     formula before the end of the 6th year following the date of 
     enactment of that Act;
       ``(C) transmit the proposed timetable to the Surface 
     Transportation Board; and
       ``(D) at the request of a Commission member, petition the 
     Surface Transportation Board to appoint a mediator to assist 
     the Commission members through non-binding mediation to reach 
     an agreement under this section.

[[Page 24630]]

       ``(2) Implementation.--The National Railroad Passenger 
     Corporation and the commuter authorities providing commuter 
     rail passenger transportation on the Northeast Corridor shall 
     implement new agreements for usage of facilities or services 
     based on the formula proposed in paragraph (1) in accordance 
     with the timetable established therein. If the entities fail 
     to implement such new agreements in accordance with the 
     timetable, the Commission shall petition the Surface 
     Transportation Board to determine the appropriate 
     compensation amounts for such services in accordance with 
     section 24904(c) of this title. The Surface Transportation 
     Board shall enforce its determination on the party or parties 
     involved.
       ``(d) Transmission of Recommendations.--The commission 
     shall annually transmit the recommendations developed under 
     subsection (b) and the formula and timetable developed under 
     subsection (c)(1) to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure.
       ``(e) Northeast Corridor Safety and Security Committee.--
       ``(1) In general.--The Secretary shall establish a 
     Northeast Corridor Safety and Security Committee composed of 
     members appointed by the Secretary. The members shall be 
     representatives of--
       ``(A) the Secretary;
       ``(B) Amtrak;
       ``(C) freight carriers operating more than 150,000 train 
     miles a year on the main line of the Northeast Corridor;
       ``(D) commuter agencies;
       ``(E) rail passengers;
       ``(F) rail labor;
       ``(G) the Transportation Security Administration; and
       ``(H) other individuals and organizations the Secretary 
     decides have a significant interest in rail safety or 
     security.
       ``(2) Function; meetings.--The Secretary shall consult with 
     the Committee about safety and security improvements on the 
     Northeast Corridor main line. The Committee shall meet at 
     least once every 2 years to consider safety matters on the 
     main line.
       ``(3) Report.--At the beginning of the first session of 
     each Congress, the Secretary shall submit a report to the 
     Commission and to Congress on the status of efforts to 
     improve safety and security on the Northeast Corridor main 
     line. The report shall include the safety recommendations of 
     the Committee and the comments of the Secretary on those 
     recommendations.''.
       (3) Conforming amendments.--Section 24904(c)(2) is amended 
     by--
       (A) inserting ``commuter rail passenger'' after 
     ``between''; and
       (B) striking ``freight'' in the second sentence.

     SEC. 215. RESTRUCTURING LONG-TERM DEBT AND CAPITAL LEASES.

       (a) In General.--The Secretary of the Treasury, in 
     consultation with the Secretary of Transportation and Amtrak, 
     may make agreements to restructure Amtrak's indebtedness as 
     of the date of enactment of this Act. This authorization 
     expires on January 1, 2007.
       (b) Debt Restructuring.--The Secretary of Treasury, in 
     consultation with the Secretary of the Transportation and 
     Amtrak, shall enter into negotiations with the holders of 
     Amtrak debt, including leases, outstanding on the date of 
     enactment of this Act for the purpose of restructuring 
     (including repayment) and repaying that debt. The Secretary 
     of the Treasury may secure agreements for restructuring or 
     repayment on such terms as the Secretary of the Treasury 
     deems favorable to the interests of the Government.
       (c) Criteria.--In restructuring Amtrak's indebtedness, the 
     Secretary and Amtrak--
       (1) shall take into consideration repayment costs, the term 
     of any loan or loans, and market conditions; and
       (2) shall ensure that the restructuring results in 
     significant savings to Amtrak and the United States 
     Government.
       (d) Payment of Renegotiated Debt.--If the criteria under 
     subsection (c) are met, the Secretary of Treasury shall 
     assume or repay the restructured debt, as appropriate.
       (e) Amtrak Principal and Interest Payments.--
       (1) Principal on debt service.--Unless the Secretary of 
     Treasury makes sufficient payments to creditors under 
     subsection (d) so that Amtrak is required to make no payments 
     to creditors in a fiscal year, the Secretary of 
     Transportation shall use funds authorized by section 
     103(a)(1) for the use of Amtrak for retirement of principal 
     on loans for capital equipment, or capital leases.
       (2) Interest on debt.--Unless the Secretary of Treasury 
     makes sufficient payments to creditors under subsection (d) 
     so that Amtrak is required to make no payments to creditors 
     in a fiscal year, the Secretary of Transportation shall use 
     funds authorized by section 103(a)(2) for the use of Amtrak 
     for the payment of interest on loans for capital equipment, 
     or capital leases.
       (3) Reductions in authorization levels.-- Whenever action 
     taken by the Secretary of the Treasury under subsection (a) 
     results in reductions in amounts of principal or interest 
     that Amtrak must service on existing debt, the corresponding 
     amounts authorized by section 103(a)(1) or (2) shall be 
     reduced accordingly.
       (f) Legal Effect of Payments Under This Section.--The 
     payment of principal and interest on secured debt, other than 
     debt assumed under subsection (d), with the proceeds of 
     grants under subsection (e) shall not--
       (1) modify the extent or nature of any indebtedness of the 
     National Railroad Passenger Corporation to the United States 
     in existence of the date of enactment of this Act;
       (2) change the private nature of Amtrak's or its 
     successors' liabilities; or
       (3) imply any Federal guarantee or commitment to amortize 
     Amtrak's outstanding indebtedness.
       (g) Secretary Approval.--Amtrak may not incur more debt 
     after the date of enactment of this Act without the express 
     advance approval of the Secretary of Transportation.
       (h) Report.--The Secretary of the Treasury shall transmit a 
     report to the Senate Committee on Commerce, Science, and 
     Transportation, the Senate Committee on Appropriations, the 
     House of Representatives Committee on Transportation and 
     Infrastructure, and the House of Representatives Committee on 
     Appropriations by June 1, 2007--
       (1) describing in detail any agreements to restructure the 
     Amtrak debt; and
       (2) providing an estimate of the savings to Amtrak and the 
     United States Government.

     SEC. 216. STUDY OF COMPLIANCE REQUIREMENTS AT EXISTING 
                   INTERCITY RAIL STATIONS.

       Amtrak, in consultation with station owners, shall evaluate 
     the improvements necessary to make all existing stations it 
     serves readily accessible to and usable by individuals with 
     disabilities, as required by section 242(e)(2) of the 
     Americans with Disabilities Act of 1990 (42 U.S.C. 
     12162(e)(2)). The evaluation shall include the estimated cost 
     of the improvements necessary, the identification of the 
     responsible person (as defined in section 241(5) of that Act 
     (42 U.S.C. 12161(5))), and the earliest practicable date when 
     such improvements can be made. Amtrak shall submit the 
     evaluation to the Senate Committee on Commerce, Science, and 
     Transportation, the House of Representatives Committee on 
     Transportation and Infrastructure, and the National Council 
     on Disability by September 30, 2007, along with 
     recommendations for funding the necessary improvements.

     SEC. 217. INCENTIVE PAY.

       The Amtrak Board of Directors is encouraged to develop an 
     incentive pay program for Amtrak management employees.

     SEC. 218. ACCESS TO AMTRAK EQUIPMENT AND SERVICES.

       If a State desires to select or selects an entity other 
     than Amtrak to provide services required for the operation of 
     an intercity passenger train route described in section 
     24102(5)(D) or 24702 of title 49, United States Code, the 
     State may make an agreement with Amtrak to use facilities and 
     equipment of, or have services provided by, Amtrak under 
     terms agreed to by the State and Amtrak to enable the State 
     to utilize an entity other than Amtrak to provide services 
     required for operation of the route. If the parties cannot 
     agree upon terms, and the Surface Transportation Board finds 
     that access to Amtrak's facilities or equipment, or the 
     provision of services by Amtrak, is necessary to carry out 
     this provision and that the operation of Amtrak's other 
     services will not be impaired thereby, the Surface 
     Transportation Board shall, within 120 days after submission 
     of the dispute, issue an order that the facilities and 
     equipment be made available, and that services be provided, 
     by Amtrak, and shall determine reasonable compensation, 
     liability and other terms for use of the facilities and 
     equipment and provision of the services. Compensation shall 
     be determined in accord with the methodology established 
     pursuant to section 206 of this division.

     SEC. 219. GENERAL AMTRAK PROVISIONS.

       (a) Repeal of Self-Sufficiency Requirements.
       (1) Title 49 amendments.--Chapter 241 is amended--
       (A) by striking the last sentence of section 24101(d); and
       (B) by striking the last sentence of section 24104(a).
       (2) Amtrak reform and accountability act amendments.--Title 
     II of the Amtrak Reform and Accountability Act of 1997 (49 
     U.S.C. 24101 nt) is amended by striking sections 204 and 205.
       (3) Common stock redemption date.--Section 415 of the 
     Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24304 
     nt) is amended by striking subsection (b).
       (b) Lease Arrangements.--Amtrak may obtain services from 
     the Administrator of General Services, and the Administrator 
     may provide services to Amtrak, under section 201(b) and 
     211(b) of the Federal Property and Administrative Service Act 
     of 1949 (40 U.S.C. 481(b) and 491(b)) for each of fiscal 
     years 2006 through 2011.

     SEC. 220. PRIVATE SECTOR FUNDING OF PASSENGER TRAINS.

       Amtrak is encouraged to increase its operation of trains 
     funded by the private sector

[[Page 24631]]

     in order to minimize its need for Federal subsidies. Amtrak 
     shall utilize the provisions of section 24308 of title 49, 
     United States Code, when necessary to obtain access to 
     facilities, train and engine crews, or services of a rail 
     carrier or regional transportation authority that are 
     required to operate such trains.

     SEC. 221. ON-BOARD SERVICE IMPROVEMENTS.

       (a) In General.--Within 1 year after metrics and standards 
     are established under section 208 of this division, Amtrak 
     shall develop and implement a plan to improve on-board 
     service pursuant to the metrics and standards for such 
     service developed under that section.
       (b) Report.--Amtrak shall provide a report to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure on the on-board service improvements 
     proscribed in the plan and the timeline for implementing such 
     improvements.

     SEC. 222. AMTRAK MANAGEMENT ACCOUNTABILITY.

       (a) In General.--Chapter 243 is amended by inserting after 
     section 24309 the following:

     ``Sec. 24310. Management accountability

       ``(a) In General.--Three years after the date of enactment 
     of the Passenger Rail Investment and Improvement Act of 2005, 
     and two years thereafter, the Inspector General of the 
     Department of Transportation shall complete an overall 
     assessment of the progress made by Amtrak management and the 
     Department of Transportation in implementing the provisions 
     of that Act.
       ``(b) Assessment.--The management assessment undertaken by 
     the Inspector General may include a review of--
       ``(1) effectiveness improving annual financial planning;
       ``(2) effectiveness in implementing improved financial 
     accounting;
       ``(3) efforts to implement minimum train performance 
     standards;
       ``(4) progress maximizing revenues and minimizing Federal 
     subsidies; and
       ``(5) any other aspect of Amtrak operations the Inspector 
     General finds appropriate to review.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     243 is amended by inserting after the item relating to 
     section 24309 the following:

``24310. Management accountability''.

               TITLE III--INTERCITY PASSENGER RAIL POLICY

     SEC. 301. CAPITAL ASSISTANCE FOR INTERCITY PASSENGER RAIL 
                   SERVICE; STATE RAIL PLANS.

       (a) In General.--Part C of subtitle V is amended by 
     inserting the following after chapter 243:

   ``CHAPTER 244. INTERCITY PASSENGER RAIL SERVICE CORRIDOR CAPITAL 
                               ASSISTANCE

``Sec.
``24401. Definitions.
``24402. Capital investment grants to support intercity passenger rail 
              service.
``24403. Project management oversight
``24404. Use of capital grants to finance first-dollar liability of 
              grant project.
``24405. Grant conditions.

     ``Sec. 24401. Definitions

       ``In this subchapter:
       ``(1) Applicant.--The term `applicant' means a State 
     (including the District of Columbia), a group of States, an 
     Interstate Compact, or a public agency established by one or 
     more States and having responsibility for providing intercity 
     passenger rail service.
       ``(2) Capital project.--The term `capital project' means a 
     project or program in a State rail plan developed under 
     chapter 225 of this title for--
       ``(A) acquiring, constructing, improving, or inspecting 
     equipment, track and track structures, or a facility for use 
     in or for the primary benefit of intercity passenger rail 
     service, expenses incidental to the acquisition or 
     construction (including designing, engineering, location 
     surveying, mapping, environmental studies, and acquiring 
     rights-of-way), payments for the capital portions of rail 
     trackage rights agreements, highway-rail grade crossing 
     improvements related to intercity passenger rail service, 
     security, mitigating environmental impacts, communication and 
     signalization improvements, relocation assistance, acquiring 
     replacement housing sites, and acquiring, constructing, 
     relocating, and rehabilitating replacement housing;
       ``(B) rehabilitating, remanufacturing or overhauling rail 
     rolling stock and facilities used primarily in intercity 
     passenger rail service;
       ``(C) costs associated with developing State rail plans; 
     and
       ``(D) the first-dollar liability costs for insurance 
     related to the provision of intercity passenger rail service 
     under section 24404.
       ``(3) Intercity passenger rail service.--The term 
     `intercity passenger rail service' means transportation 
     services with the primary purpose of passenger transportation 
     between towns, cities and metropolitan areas by rail, 
     including high-speed rail, as defined in section 24102 of 
     title 49, United States Code.

     ``Sec. 24402. Capital investment grants to support intercity 
       passenger rail service.

       ``(a) General Authority.--
       ``(1) The Secretary of Transportation may make grants under 
     this section to an applicant to assist in financing the 
     capital costs of facilities and equipment necessary to 
     provide or improve intercity passenger rail transportation.
       ``(2) The Secretary shall require that a grant under this 
     section be subject to the terms, conditions, requirements, 
     and provisions the Secretary decides are necessary or 
     appropriate for the purposes of this section, including 
     requirements for the disposition of net increases in value of 
     real property resulting from the project assisted under this 
     section and shall prescribe procedures and schedules for the 
     awarding of grants under this title, including application 
     and qualification procedures and a record of decision on 
     applicant eligibility. The Secretary shall issue a final rule 
     establishing such procedures not later than 90 days after the 
     date of enactment of the Passenger Rail Investment and 
     Improvement Act of 2005.
       ``(b) Project as Part of State Rail Plan.--
       ``(1) The Secretary may not approve a grant for a project 
     under this section unless the Secretary finds that the 
     project is part of a State rail plan developed under chapter 
     225 of this title, or under the plan required by section 203 
     of the Passenger Rail Investment and Improvement Act of 2005, 
     and that the applicant or recipient has or will have the 
     legal, financial, and technical capacity to carry out the 
     project, satisfactory continuing control over the use of the 
     equipment or facilities, and the capability and willingness 
     to maintain the equipment or facilities.
       ``(2) An applicant shall provide sufficient information 
     upon which the Secretary can make the findings required by 
     this subsection.
       ``(3) If an applicant has not selected the proposed 
     operator of its service competitively, the applicant shall 
     provide written justification to the Secretary showing why 
     the proposed operator is the best, taking into account price 
     and other factors, and that use of the proposed operator will 
     not unnecessarily increase the cost of the project.
       ``(c) Project Selection Criteria.--The Secretary, in 
     selecting the recipients of financial assistance to be 
     provided under subsection (a), shall--
       ``(1) require that each proposed project meet all safety 
     and security requirements that are applicable to the project 
     under law;
       ``(2) give preference to projects with high levels of 
     estimated ridership, increased on-time performance, reduced 
     trip time, additional service frequency to meet anticipated 
     or existing demand, or other significant service enhancements 
     as measured against minimum standards developed under section 
     208 of the Passenger Rail Investment and Improvement Act of 
     2005;
       ``(3) encourage intermodal connectivity through projects 
     that provide direct connections between train stations, 
     airports, bus terminals, subway stations, ferry ports, and 
     other modes of transportation;
       ``(4) ensure that each project is compatible with, and is 
     operated in conformance with--
       ``(A) plans developed pursuant to the requirements of 
     section 135 of title 23, United States Code; and
       ``(B) the national rail plan (if it is available); and
       ``(5) favor the following kinds of projects:
       ``(A) Projects that are expected to have a significant 
     favorable impact on air or highway traffic congestion, 
     capacity, or safety.
       ``(B) Projects that also improve freight or commuter rail 
     operations.
       ``(C) Projects that have significant environmental 
     benefits.
       ``(D) Projects that are--
       ``(i) at a stage of preparation that all pre-commencement 
     compliance with environmental protection requirements has 
     already been completed; and
       ``(ii) ready to be commenced.
       ``(E) Projects with positive economic and employment 
     impacts.
       ``(F) Projects that encourage the use of positive train 
     control technologies.
       ``(G) Projects that have commitments of funding from non-
     Federal Government sources in a total amount that exceeds the 
     minimum amount of the non-Federal contribution required for 
     the project.
       ``(H) Projects that involve donated property interests or 
     services.
       ``(I) Projects that are identified by the Surface 
     Transportation Board as necessary to improve the on time 
     performance and reliability of intercity passenger rail under 
     section 24308(f).
       ``(d) Amtrak Eligibility.--To receive a grant under this 
     section, the National Railroad Passenger Corporation may 
     enter into a cooperative agreement with 1 or more States to 
     carry out 1 or more projects on a State rail plan's ranked 
     list of rail capital projects developed under section 
     22504(a)(5) of this title.
       ``(e) Letters of Intent, Full Funding Grant Agreements, and 
     Early Systems Work Agreements.--
       ``(1)(A) The Secretary may issue a letter of intent to an 
     applicant announcing an intention to obligate, for a major 
     capital project

[[Page 24632]]

     under this section, an amount from future available budget 
     authority specified in law that is not more than the amount 
     stipulated as the financial participation of the Secretary in 
     the project.
       ``(B) At least 30 days before issuing a letter under 
     subparagraph (A) of this paragraph or entering into a full 
     funding grant agreement, the Secretary shall notify in 
     writing the Committee on Transportation and Infrastructure of 
     the House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate and the House and 
     Senate Committees on Appropriations of the proposed letter or 
     agreement. The Secretary shall include with the notification 
     a copy of the proposed letter or agreement as well as the 
     evaluations and ratings for the project.
       ``(C) An obligation or administrative commitment may be 
     made only when amounts are appropriated.
       ``(2)(A) The Secretary may make a full funding grant 
     agreement with an applicant. The agreement shall--
       ``(i) establish the terms of participation by the United 
     States Government in a project under this section;
       ``(ii) establish the maximum amount of Government financial 
     assistance for the project;
       ``(iii) cover the period of time for completing the 
     project, including a period extending beyond the period of an 
     authorization; and
       ``(iv) make timely and efficient management of the project 
     easier according to the law of the United States.
       ``(B) An agreement under this paragraph obligates an amount 
     of available budget authority specified in law and may 
     include a commitment, contingent on amounts to be specified 
     in law in advance for commitments under this paragraph, to 
     obligate an additional amount from future available budget 
     authority specified in law. The agreement shall state that 
     the contingent commitment is not an obligation of the 
     Government and is subject to the availability of 
     appropriations made by Federal law and to Federal laws in 
     force on or enacted after the date of the contingent 
     commitment. Interest and other financing costs of efficiently 
     carrying out a part of the project within a reasonable time 
     are a cost of carrying out the project under a full funding 
     grant agreement, except that eligible costs may not be more 
     than the cost of the most favorable financing terms 
     reasonably available for the project at the time of 
     borrowing. The applicant shall certify, in a way satisfactory 
     to the Secretary, that the applicant has shown reasonable 
     diligence in seeking the most favorable financing terms.
       ``(3)(A) The Secretary may make an early systems work 
     agreement with an applicant if a record of decision under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) has been issued on the project and the Secretary finds 
     there is reason to believe--
       ``(i) a full funding grant agreement for the project will 
     be made; and
       ``(ii) the terms of the work agreement will promote 
     ultimate completion of the project more rapidly and at less 
     cost.
       ``(B) A work agreement under this paragraph obligates an 
     amount of available budget authority specified in law and 
     shall provide for reimbursement of preliminary costs of 
     carrying out the project, including land acquisition, timely 
     procurement of system elements for which specifications are 
     decided, and other activities the Secretary decides are 
     appropriate to make efficient, long-term project management 
     easier. A work agreement shall cover the period of time the 
     Secretary considers appropriate. The period may extend beyond 
     the period of current authorization. Interest and other 
     financing costs of efficiently carrying out the work 
     agreement within a reasonable time are a cost of carrying out 
     the agreement, except that eligible costs may not be more 
     than the cost of the most favorable financing terms 
     reasonably available for the project at the time of 
     borrowing. The applicant shall certify, in a way satisfactory 
     to the Secretary, that the applicant has shown reasonable 
     diligence in seeking the most favorable financing terms. If 
     an applicant does not carry out the project for reasons 
     within the control of the applicant, the applicant shall 
     repay all Government payments made under the work agreement 
     plus reasonable interest and penalty charges the Secretary 
     establishes in the agreement.
       ``(4) The total estimated amount of future obligations of 
     the Government and contingent commitments to incur 
     obligations covered by all outstanding letters of intent, 
     full funding grant agreements, and early systems work 
     agreements may be not more than the amount authorized under 
     section 101(c) of Passenger Rail Investment and Improvement 
     Act of 2005, less an amount the Secretary reasonably 
     estimates is necessary for grants under this section not 
     covered by a letter. The total amount covered by new letters 
     and contingent commitments included in full funding grant 
     agreements and early systems work agreements may be not more 
     than a limitation specified in law.
       ``(f) Federal Share of Net Project Cost.--
       ``(1)(A) Based on engineering studies, studies of economic 
     feasibility, and information on the expected use of equipment 
     or facilities, the Secretary shall estimate the net project 
     cost.
       ``(B) A grant for the project shall not exceed 80 percent 
     of the project net capital cost.
       ``(C) The Secretary shall give priority in allocating 
     future obligations and contingent commitments to incur 
     obligations to grant requests seeking a lower Federal share 
     of the project net capital cost.
       ``(2) Up to an additional 20 percent of the required non-
     Federal funds may be funded from amounts appropriated to or 
     made available to a department or agency of the Federal 
     Government that are eligible to be expended for 
     transportation.
       ``(3) 50 percent of the average amounts expended by a State 
     or group of States (including the District of Columbia) for 
     capital projects to benefit intercity passenger rail service 
     in fiscal years 2003, 2004, and 2005 shall be credited 
     towards the matching requirements for grants awarded under 
     this section. The Secretary may require such information as 
     necessary to verify such expenditures.
       ``(4) 50 percent of the average amounts expended by a State 
     or group of States (including the District of Columbia) in a 
     fiscal year beginning in 2006 for capital projects to benefit 
     intercity passenger rail service or for the operating costs 
     of such service above the average of expenditures made for 
     such service in fiscal years 2003, 2004, and 2005 shall be 
     credited towards the matching requirements for grants awarded 
     under this section. The Secretary may require such 
     information as necessary to verify such expenditures.
       ``(g) Undertaking Projects in Advance.--
       ``(1) The Secretary may pay the Federal share of the net 
     capital project cost to an applicant that carries out any 
     part of a project described in this section according to all 
     applicable procedures and requirements if--
       ``(A) the applicant applies for the payment;
       ``(B) the Secretary approves the payment; and
       ``(C) before carrying out the part of the project, the 
     Secretary approves the plans and specifications for the part 
     in the same way as other projects under this section.
       ``(2) The cost of carrying out part of a project includes 
     the amount of interest earned and payable on bonds issued by 
     the applicant to the extent proceeds of the bonds are 
     expended in carrying out the part. However, the amount of 
     interest under this paragraph may not be more than the most 
     favorable interest terms reasonably available for the project 
     at the time of borrowing. The applicant shall certify, in a 
     manner satisfactory to the Secretary, that the applicant has 
     shown reasonable diligence in seeking the most favorable 
     financial terms.
       ``(3) The Secretary shall consider changes in capital 
     project cost indices when determining the estimated cost 
     under paragraph (2) of this subsection.
       ``(h) 2-Year Availability.--Funds appropriated under this 
     section shall remain available until expended. If any amount 
     provided as a grant under this section is not obligated or 
     expended for the purposes described in subsection (a) within 
     2 years after the date on which the State received the grant, 
     such sums shall be returned to the Secretary for other 
     intercity passenger rail development projects under this 
     section at the discretion of the Secretary.
       ``(i) Public-Private Partnerships.--
       ``(1) In general.--A metropolitan planning organization, 
     State transportation department, or other project sponsor may 
     enter into an agreement with any public, private, or 
     nonprofit entity to cooperatively implement any project 
     funded with a grant under this title.
       ``(2) Forms of participation.--Participation by an entity 
     under paragraph (1) may consist of--
       ``(A) ownership or operation of any land, facility, 
     locomotive, rail car, vehicle, or other physical asset 
     associated with the project;
       ``(B) cost-sharing of any project expense;
       ``(C) carrying out administration, construction management, 
     project management, project operation, or any other 
     management or operational duty associated with the project; 
     and
       ``(D) any other form of participation approved by the 
     Secretary.
       ``(3) Sub-allocation.--A State may allocate funds under 
     this section to any entity described in paragraph (1).
       ``(j) Special Transportation Circumstances.--In carrying 
     out this section, the Secretary shall allocate an appropriate 
     portion of the amounts available under this section to 
     provide grants to States--
       ``(1) in which there is no intercity passenger rail service 
     for the purpose of funding freight rail capital projects that 
     are on a State rail plan developed under chapter 225 of this 
     title that provide public benefits (as defined in chapter 
     225) as determined by the Secretary; or
       ``(2) in which the rail transportation system is not 
     physically connected to rail systems in the continental 
     United States or may not otherwise qualify for a grant under 
     this section due to the unique characteristics of the 
     geography of that State or other relevant considerations, for 
     the purpose of funding transportation-related capital 
     projects.

[[Page 24633]]

       ``(k) Small Capital Projects.--The Secretary shall make 
     available $10,000,000 annually from the amounts authorized 
     under section 101(c) of the Passenger Rail Investment and 
     Improvement Act of 2005 beginning in fiscal year 2007 for 
     grants for capital projects eligible under this section not 
     exceeding $2,000,000, including costs eligible under section 
     206(c) of that Act. The Secretary may wave requirements of 
     this section, including state rail plan requirements, as 
     appropriate.

     ``Sec. 24403. Project management oversight

       ``(a) Project Management Plan Requirements.--To receive 
     Federal financial assistance for a major capital project 
     under this subchapter, an applicant must prepare and carry 
     out a project management plan approved by the Secretary of 
     Transportation. The plan shall provide for--
       ``(1) adequate recipient staff organization with well-
     defined reporting relationships, statements of functional 
     responsibilities, job descriptions, and job qualifications;
       ``(2) a budget covering the project management 
     organization, appropriate consultants, property acquisition, 
     utility relocation, systems demonstration staff, audits, and 
     miscellaneous payments the recipient may be prepared to 
     justify;
       ``(3) a construction schedule for the project;
       ``(4) a document control procedure and recordkeeping 
     system;
       ``(5) a change order procedure that includes a documented, 
     systematic approach to handling the construction change 
     orders;
       ``(6) organizational structures, management skills, and 
     staffing levels required throughout the construction phase;
       ``(7) quality control and quality assurance functions, 
     procedures, and responsibilities for construction, system 
     installation, and integration of system components;
       ``(8) material testing policies and procedures;
       ``(9) internal plan implementation and reporting 
     requirements;
       ``(10) criteria and procedures to be used for testing the 
     operational system or its major components;
       ``(11) periodic updates of the plan, especially related to 
     project budget and project schedule, financing, and ridership 
     estimates; and
       ``(12) the recipient's commitment to submit a project 
     budget and project schedule to the Secretary each month.
       ``(b) Secretarial Oversight.--
       ``(1) The Secretary may use no more than 0.5 percent of 
     amounts made available in a fiscal year for capital projects 
     under this subchapter to enter into contracts to oversee the 
     construction of such projects.
       ``(2) The Secretary may use amounts available under 
     paragraph (1) of this subsection to make contracts for 
     safety, procurement, management, and financial compliance 
     reviews and audits of a recipient of amounts under paragraph 
     (1).
       ``(3) The Federal Government shall pay the entire cost of 
     carrying out a contract under this subsection.
       ``(c) Access to Sites and Records.--Each recipient of 
     assistance under this subchapter shall provide the Secretary 
     and a contractor the Secretary chooses under subsection (c) 
     of this section with access to the construction sites and 
     records of the recipient when reasonably necessary.

     ``Sec. 24404. Use of capital grants to finance first-dollar 
       liability of grant project

       ``Notwithstanding the requirements of section 24402 of this 
     subchapter, the Secretary of Transportation may approve the 
     use of capital assistance under this subchapter to fund self-
     insured retention of risk for the first tier of liability 
     insurance coverage for rail passenger service associated with 
     the capital assistance grant, but the coverage may not exceed 
     $20,000,000 per occurrence or $20,000,000 in aggregate per 
     year.

     ``Sec. 24405. Grant conditions

       ``(a) Domestic Buying Preference.--
       ``(1) Requirement.--
       ``(A) In general.--In carrying out a project funded in 
     whole or in part with a grant under this title, the grant 
     recipient shall purchase only--
       ``(i) unmanufactured articles, material, and supplies mined 
     or produced in the United States; or
       ``(ii) manufactured articles, material, and supplies 
     manufactured in the United States substantially from 
     articles, material, and supplies mined, produced, or 
     manufactured in the United States.
       ``(B) De minimis amount.--Subparagraph (1) applies only to 
     a purchase in an total amount that is not less than 
     $1,000,000.
       ``(2) Exemptions.--On application of a recipient, the 
     Secretary may exempt a recipient from the requirements of 
     this subsection if the Secretary decides that, for particular 
     articles, material, or supplies--
       ``(A) such requirements are inconsistent with the public 
     interest;
       ``(B) the cost of imposing the requirements is 
     unreasonable; or
       ``(C) the articles, material, or supplies, or the articles, 
     material, or supplies from which they are manufactured, are 
     not mined, produced, or manufactured in the United States in 
     sufficient and reasonably available commercial quantities and 
     are not of a satisfactory quality.
       ``(3) United states defined.--In this subsection, the term 
     `the United States' means the States, territories, and 
     possessions of the United States and the District of 
     Columbia.
       ``(b) Operators Deemed Rail Carriers and Employers for 
     Certain Purposes.--A person that conducts rail operations 
     over rail infrastructure constructed or improved with funding 
     provided in whole or in part in a grant made under this title 
     shall be considered a rail carrier as defined in section 
     10102(5) of this title for purposes of this title and any 
     other statute that adopts the that definition or in which 
     that definition applies, including--
       ``(1) the Railroad Retirement Act of 1974 (45 U.S.C. 231 et 
     seq.); and
       ``(2) the Railway Labor Act (43 U.S.C. 151 et seq.).
       ``(c) Grant Conditions.--The Secretary shall require as a 
     condition of making any grant under this title for a project 
     that uses rights-of-way owned by a railroad that--
       ``(1) a written agreement exist between the applicant and 
     the railroad regarding such use and ownership, including--
       ``(A) any compensation for such use;
       ``(B) assurances regarding the adequacy of infrastructure 
     capacity to accommodate both existing and future freight and 
     passenger operations; and
       ``(C) an assurance by the railroad that collective 
     bargaining agreements with the railroad's employees 
     (including terms regulating the contracting of work) will 
     remain in full force and effect according to their terms for 
     work performed by the railroad on the railroad transportation 
     corridor;
       ``(D) an assurance that an applicant complies with 
     liability requirements consistent with section 28103 of this 
     title; and
       ``(2) the applicant agrees to comply with--
       ``(A) the standards of section 24312 of this title, as such 
     section was in effect on September 1, 2003, with respect to 
     the project in the same manner that the National Railroad 
     Passenger Corporation is required to comply with those 
     standards for construction work financed under an agreement 
     made under section 24308(a) of this title; and
       ``(B) the protective arrangements established under section 
     504 of the Railroad Revitalization and Regulatory Reform Act 
     of 1976 (45 U.S.C. 836) with respect to employees affected by 
     actions taken in connection with the project to be financed 
     in whole or in part by grants under this subchapter.
       ``(d) Replacement of Existing Intercity Passenger Rail 
     Service.--
       ``(1) Collective bargaining agreement for intercity 
     passenger rail projects.--Any entity providing intercity 
     passenger railroad transportation that begins operations 
     after the date of enactment of this Act on a project funded 
     in whole or in part by grants made under this title and 
     replaces intercity rail passenger service that was provided 
     by Amtrak, unless such service was provided solely by Amtrak 
     to another entity, as of such date shall enter into an 
     agreement with the authorized bargaining agent or agents for 
     adversely affected employees of the predecessor provider 
     that--
       ``(A) gives each such qualified employee of the predecessor 
     provider priority in hiring according to the employee's 
     seniority on the predecessor provider for each position with 
     the replacing entity that is in the employee's craft or class 
     and is available within 3 years after the termination of the 
     service being replaced;
       ``(B) establishes a procedure for notifying such an 
     employee of such positions;
       ``(C) establishes a procedure for such an employee to apply 
     for such positions; and
       ``(D) establishes rates of pay, rules, and working 
     conditions.
       ``(2) Immediate replacement service.--
       ``(A) Negotiations.--If the replacement of preexisting 
     intercity rail passenger service occurs concurrent with or 
     within a reasonable time before the commencement of the 
     replacing entity's rail passenger service, the replacing 
     entity shall give written notice of its plan to replace 
     existing rail passenger service to the authorized collective 
     bargaining agent or agents for the potentially adversely 
     affected employees of the predecessor provider at least 90 
     days before the date on which it plans to commence service. 
     Within 5 days after the date of receipt of such written 
     notice, negotiations between the replacing entity and the 
     collective bargaining agent or agents for the employees of 
     the predecessor provider shall commence for the purpose of 
     reaching agreement with respect to all matters set forth in 
     subparagraphs (A) through (D) of paragraph (1). The 
     negotiations shall continue for 30 days or until an agreement 
     is reached, whichever is sooner. If at the end of 30 days the 
     parties have not entered into an agreement with respect to 
     all such matters, the unresolved issues shall be submitted 
     for arbitration in accordance with the procedure set forth in 
     subparagraph (B).
       ``(B) Arbitration.--If an agreement has not been entered 
     into with respect to all matters set forth in subparagraphs 
     (A) through (D) of paragraph (1) as described in subparagraph 
     (A) of this paragraph, the parties shall select an 
     arbitrator. If the parties are unable to agree upon the 
     selection of such arbitrator within 5 days, either or both 
     parties shall notify the National Mediation Board, which 
     shall provide a list of seven arbitrators with experience in 
     arbitrating rail

[[Page 24634]]

     labor protection disputes. Within 5 days after such 
     notification, the parties shall alternately strike names from 
     the list until only 1 name remains, and that person shall 
     serve as the neutral arbitrator. Within 45 days after 
     selection of the arbitrator, the arbitrator shall conduct a 
     hearing on the dispute and shall render a decision with 
     respect to the unresolved issues among the matters set forth 
     in subparagraphs (A) through (D) of paragraph (1). This 
     decision shall be final, binding, and conclusive upon the 
     parties. The salary and expenses of the arbitrator shall be 
     borne equally by the parties; all other expenses shall be 
     paid by the party incurring them.
       ``(3) Service commencement.--A replacing entity under this 
     subsection shall commence service only after an agreement is 
     entered into with respect to the matters set forth in 
     subparagraphs (A) through (D) of paragraph (1) or the 
     decision of the arbitrator has been rendered.
       ``(4) Subsequent replacement of service.--If the 
     replacement of existing rail passenger service takes place 
     within 3 years after the replacing entity commences intercity 
     passenger rail service, the replacing entity and the 
     collective bargaining agent or agents for the adversely 
     affected employees of the predecessor provider shall enter 
     into an agreement with respect to the matters set forth in 
     subparagraphs (A) through (D) of paragraph (1). If the 
     parties have not entered into an agreement with respect to 
     all such matters within 60 days after the date on which the 
     replacing entity replaces the predecessor provider, the 
     parties shall select an arbitrator using the procedures set 
     forth in paragraph (2)(B), who shall, within 20 days after 
     the commencement of the arbitration, conduct a hearing and 
     decide all unresolved issues. This decision shall be final, 
     binding, and conclusive upon the parties.
       ``(e) Inapplicability to Certain Rail Operations.-- Nothing 
     in this section applies to--
       ``(1) commuter rail passenger transportation (as defined in 
     section 24102(4) of this title) operations of a State or 
     local government authority (as those terms are defined in 
     section 5302(11) and (6), respectively, of this title) 
     eligible to receive financial assistance under section 5307 
     of this title, or to its contractor performing services in 
     connection with commuter rail passenger operations (as so 
     defined);
       ``(2) the Alaska Railroad or its contractors; or
       ``(3) the National Railroad Passenger Corporation's access 
     rights to railroad rights of way and facilities under current 
     law.''.
       (b) Conforming Amendments.--
       (1) The table of chapters for the title is amended by 
     inserting the following after the item relating to chapter 
     243:

``244. Intercity passenger rail service capital assistance.....24401''.

       ``(2) The chapter analysis for subtitle V is amended by 
     inserting the following after the item relating to chapter 
     243:

``244. Intercity passenger rail service capital assistance.....24401''.

     SEC. 302. STATE RAIL PLANS.

       (a) In General.--Part B of subtitle V is amended by adding 
     at the end the following:

       ``CHAPTER 225. STATE RAIL PLANS AND HIGH PRIORITY PROJECTS

``Sec.
``22501. Definitions
``22502. Authority
``22503. Purposes
``22504. Transparency; coordination; review
``22505. Content
``22506. Review

     ``Sec. 22501. Definitions

       ``In this subchapter:
       ``(1) Private benefit.--
       ``(A) In general.--The term `private benefit'--
       ``(i) means a benefit accrued to a person or private 
     entity, other than the National Railroad Passenger 
     Corporation, that directly improves the economic and 
     competitive condition of that person or entity through 
     improved assets, cost reductions, service improvements, or 
     any other means as defined by the Secretary; and
       ``(ii) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(B) Consultation.--The Secretary may seek the advice of 
     the States and rail carriers in further defining this term.
       ``(2) Public benefit.--
       ``(A) In general.--The term `public benefit'--
       ``(i) means a benefit accrued to the public in the form of 
     enhanced mobility of people or goods, environmental 
     protection or enhancement, congestion mitigation, enhanced 
     trade and economic development, improved air quality or land 
     use, more efficient energy use, enhanced public safety or 
     security, reduction of public expenditures due to improved 
     transportation efficiency or infrastructure preservation, and 
     any other positive community effects as defined by the 
     Secretary; and
       ``(ii) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(B) Consultation.--The Secretary may seek the advice of 
     the States and rail carriers in further defining this term.
       ``(3) State.--The term `State' means any of the 50 States 
     and the District of Columbia.
       ``(4) State rail transportation authority.--The term `State 
     rail transportation authority' means the State agency or 
     official responsible under the direction of the Governor of 
     the State or a State law for preparation, maintenance, 
     coordination, and administration of the State rail plan.''.

     ``Sec. 22502. Authority

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     subchapter.
       ``(b) Requirements.--For the preparation and periodic 
     revision of a State rail plan, a State shall--
       ``(1) establish or designate a State rail transportation 
     authority to prepare, maintain, coordinate, and administer 
     the plan;
       ``(2) establish or designate a State rail plan approval 
     authority to approve the plan;
       ``(3) submit the State's approved plan to the Secretary of 
     Transportation for review; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for reapproval by the 
     Secretary.

     ``Sec. 22503. Purposes

       ``(a) Purposes.--The purposes of a State rail plan are as 
     follows:
       ``(1) To set forth State policy involving freight and 
     passenger rail transportation, including commuter rail 
     operations, in the State.
       ``(2) To establish the period covered by the State rail 
     plan.
       ``(3) To present priorities and strategies to enhance rail 
     service in the State that benefits the public.
       ``(4) To serve as the basis for Federal and State rail 
     investments within the State.
       ``(b) Coordination.--A State rail plan shall be coordinated 
     with other State transportation planning goals and programs 
     and set forth rail transportation's role within the State 
     transportation system.

     ``Sec. 22504. Transparency; coordination; review

       ``(a) Preparation.--A State shall provide adequate and 
     reasonable notice and opportunity for comment and other input 
     to the public, rail carriers, commuter and transit 
     authorities operating in, or affected by rail operations 
     within the State, units of local government, and other 
     interested parties in the preparation and review of its State 
     rail plan.
       ``(b) Intergovernmental Coordination.--A State shall review 
     the freight and passenger rail service activities and 
     initiatives by regional planning agencies, regional 
     transportation authorities, and municipalities within the 
     State, or in the region in which the State is located, while 
     preparing the plan, and shall include any recommendations 
     made by such agencies, authorities, and municipalities as 
     deemed appropriate by the State.

     ``Sec. 22505. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An inventory of the existing overall rail 
     transportation system and rail services and facilities within 
     the State and an analysis of the role of rail transportation 
     within the State's surface transportation system.
       ``(2) A review of all rail lines within the State, 
     including proposed high speed rail corridors and significant 
     rail line segments not currently in service.
       ``(3) A statement of the State's passenger rail service 
     objectives, including minimum service levels, for rail 
     transportation routes in the State.
       ``(4) A general analysis of rail's transportation, 
     economic, and environmental impacts in the State, including 
     congestion mitigation, trade and economic development, air 
     quality, land-use, energy-use, and community impacts.
       ``(5) A long-range rail investment program for current and 
     future freight and passenger infrastructure in the State that 
     meets the requirements of subsection (b).
       ``(6) A statement of public financing issues for rail 
     projects and service in the State, including a list of 
     current and prospective public capital and operating funding 
     resources, public subsidies, State taxation, and other 
     financial policies relating to rail infrastructure 
     development.
       ``(7) An identification of rail infrastructure issues 
     within the State that reflects consultation with all relevant 
     stake holders.
       ``(8) A review of major passenger and freight intermodal 
     rail connections and facilities within the State, including 
     seaports, and prioritized options to maximize service 
     integration and efficiency between rail and other modes of 
     transportation within the State.
       ``(9) A review of publicly funded projects within the State 
     to improve rail transportation safety and security, including 
     all major projects funded under section 130 of title 23.
       ``(10) A performance evaluation of passenger rail services 
     operating in the State,

[[Page 24635]]

     including possible improvements in those services, and a 
     description of strategies to achieve those improvements.
       ``(11) A compilation of studies and reports on high-speed 
     rail corridor development within the State not included in a 
     previous plan under this subchapter, and a plan for funding 
     any recommended development of such corridors in the State.
       ``(12) A statement that the State is in compliance with the 
     requirements of section 22102.
       ``(b) Long-Range Service and Investment Program.--
       ``(1) Program content.--A long-range rail investment 
     program included in a State rail plan under subsection (a)(5) 
     shall include the following matters:
       ``(A) A list of any rail capital projects expected to be 
     undertaken or supported in whole or in part by the State.
       ``(B) A detailed funding plan for those projects.
       ``(2) Project list content.--The list of rail capital 
     projects shall contain--
       ``(A) a description of the anticipated public and private 
     benefits of each such project; and
       ``(B) a statement of the correlation between--
       ``(i) public funding contributions for the projects; and
       ``(ii) the public benefits.
       ``(3) Considerations for project list.--In preparing the 
     list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority should take 
     into consideration the following matters:
       ``(A) Contributions made by non-Federal and non-State 
     sources through user fees, matching funds, or other private 
     capital involvement.
       ``(B) Rail capacity and congestion effects.
       ``(C) Effects on highway, aviation, and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact.
       ``(F) Economic and employment impacts.
       ``(G) Projected ridership and other service measures for 
     passenger rail projects.

     ``Sec. 22506. Review

       ``The Secretary shall prescribe procedures for States to 
     submit State rail plans for review under this title, 
     including standardized format and data requirements. State 
     rail plans completed before the date of enactment of the 
     Passenger Rail Investment and Improvement Act of 2005 that 
     substantially meet the requirements of this chapter, as 
     determined by the Secretary, shall be deemed by the Secretary 
     to have met the requirements of this chapter''.
       (b) Conforming Amendments.--
       (1) The table of chapters for the title is amended by 
     inserting the following after the item relating to chapter 
     223:

``225. State rail plans.......................................22501''..

       ``(2) The chapter analysis for subtitle V is amended by 
     inserting the following after the item relating to chapter 
     223:

``225. State rail plans........................................24401''.

     SEC. 303. NEXT GENERATION CORRIDOR TRAIN EQUIPMENT POOL.

       (a) In General.--Within 180 days after the date of 
     enactment of this Act, Amtrak shall establish a Next 
     Generation Corridor Equipment Pool Committee, comprised of 
     representatives of Amtrak, the Federal Railroad 
     Administration, and interested States. The purpose of the 
     Committee shall be to design, develop specifications for, and 
     procure standardized next-generation corridor equipment.
       (b) Functions.--The Committee may--
       (1) determine the number of different types of equipment 
     required, taking into account variations in operational needs 
     and corridor infrastructure;
       (2) establish a pool of equipment to be used on corridor 
     routes funded by participating States; and
       (3) subject to agreements between Amtrak and States, 
     utilize services provided by Amtrak to design, maintain and 
     remanufacture equipment.
       (c) Cooperative Agreements.--Amtrak and States 
     participating in the Committee may enter into agreements for 
     the funding, procurement, remanufacture, ownership and 
     management of corridor equipment, including equipment 
     currently owned or leased by Amtrak and next-generation 
     corridor equipment acquired as a result of the Committee's 
     actions, and may establish a corporation, which may be owned 
     or jointly-owned by Amtrak, participating States or other 
     entities, to perform these functions.
       (d) Funding.--In addition to the authorization provided in 
     section 105 of this division, capital projects to carry out 
     the purposes of this section shall be eligible for grants 
     made pursuant to chapter 244 of title 49, United States Code.

     SEC. 304. FEDERAL RAIL POLICY.

       Section 103 is amended--
       (1) by inserting ``In General.--'' before ``The Federal'' 
     in subsection (a);
       (2) by striking the second and third sentences of 
     subsection (a);
       (3) by inserting ``Administrator.--'' before ``The head'' 
     in subsection (b);
       (4) by redesignating subsections (c), (d), and (e) as 
     subsections (d), (e), and (f), respectively and by inserting 
     after subsection (b) the following:
       ``(c) Safety.--To carry out all railroad safety laws of the 
     United States, the Administration is divided on a 
     geographical basis into at least 8 safety offices. The 
     Secretary of Transportation is responsible for all acts taken 
     under those laws and for ensuring that the laws are uniformly 
     administered and enforced among the safety offices.'';
       (5) by inserting ``Powers and Duties.--'' before ``The'' in 
     subsection (d), as redesignated;
       (6) by striking ``and'' after the semicolon in paragraph 
     (1) of subsection (d), as redesignated;
       (7) by redesignating paragraph (2) of subsection (d), as 
     redesignated, as paragraph (3) and inserting after paragraph 
     (1) the following:
       ``(2) the duties and powers related to railroad policy and 
     development under subsection (e); and'';
       (8) by inserting ``Transfers of Duty.--'' before ``A duty'' 
     in subsection (e), as redesignated;
       (9) by inserting ``Contracts, grants, leases, cooperative 
     agreements, and similar transactions.--'' before ``Subject'' 
     in subsection (f), as redesignated;
       (10) by striking the last sentence in subsection (f), as 
     redesignated; and
       (11) by adding at the end the following:
       ``(g) Additional Duties of the Administrator.--The 
     Administrator shall--
       ``(1) provide assistance to States in developing State rail 
     plans prepared under chapter 225 and review all State rail 
     plans submitted under that section;
       ``(2) develop a long range national rail plan that is 
     consistent with approved State rail plans and the rail needs 
     of the Nation, as determined by the Secretary in order to 
     promote an integrated, cohesive, efficient, and optimized 
     national rail system for the movement of goods and people;
       ``(3) develop a preliminary national rail plan within a 
     year after the date of enactment of the Passenger Rail 
     Investment and Improvement Act of 2005;
       ``(4) develop and enhance partnerships with the freight and 
     passenger railroad industry, States, and the public 
     concerning rail development;
       ``(5) support rail intermodal development and high-speed 
     rail development, including high speed rail planning;
       ``(6) ensure that programs and initiatives developed under 
     this section benefit the public and work toward achieving 
     regional and national transportation goals; and
       ``(7) facilitate and coordinate efforts to assist freight 
     and passenger rail carriers, transit agencies and 
     authorities, municipalities, and States in passenger-freight 
     service integration on shared rights of way by providing 
     neutral assistance at the joint request of affected rail 
     service providers and infrastructure owners relating to 
     operations and capacity analysis, capital requirements, 
     operating costs, and other research and planning related to 
     corridors shared by passenger or commuter rail service and 
     freight rail operations.
       ``(h) Performance Goals and Reports.--
       ``(1) Performance goals.--In conjunction with the 
     objectives established and activities undertaken under 
     section 103(e) of this title, the Administrator shall develop 
     a schedule for achieving specific, measurable performance 
     goals.
       ``(2) Resource needs.--The strategy and annual plans shall 
     include estimates of the funds and staff resources needed to 
     accomplish each goal and the additional duties required under 
     section 103(e).
       ``(3) Submission with president's budget.--Beginning with 
     fiscal year 2007 and each fiscal year thereafter, the 
     Secretary shall submit to Congress, at the same time as the 
     President's budget submission, the Administration's 
     performance goals and schedule developed under paragraph (1), 
     including an assessment of the progress of the Administration 
     toward achieving its performance goals.''.

     SEC. 305. RAIL COOPERATIVE RESEARCH PROGRAM.

       (a) Establishment and Content.--Chapter 249 is amended by 
     adding at the end the following:

     ``Sec. 24910. Rail cooperative research program

       ``(a) In General.--The Secretary shall establish and carry 
     out a rail cooperative research program. The program shall--
       ``(1) address, among other matters, intercity rail 
     passenger and freight rail services, including existing rail 
     passenger and freight technologies and speeds, incrementally 
     enhanced rail systems and infrastructure, and new high-speed 
     wheel-on-rail systems and rail security;
       ``(2) address ways to expand the transportation of 
     international trade traffic by rail, enhance the efficiency 
     of intermodal interchange at ports and other intermodal 
     terminals, and increase capacity and availability of rail 
     service for seasonal freight needs;
       ``(3) consider research on the interconnectedness of 
     commuter rail, passenger rail, freight rail, and other rail 
     networks; and
       ``(4) give consideration to regional concerns regarding 
     rail passenger and freight transportation, including meeting 
     research needs common to designated high-speed corridors, 
     long-distance rail services, and regional intercity rail 
     corridors, projects, and entities.
       ``(b) Content.--The program to be carried out under this 
     section shall include research designed--
       ``(1) to identify the unique aspects and attributes of rail 
     passenger and freight service;

[[Page 24636]]

       ``(2) to develop more accurate models for evaluating the 
     impact of rail passenger and freight service, including the 
     effects on highway and airport and airway congestion, 
     environmental quality, and energy consumption;
       ``(3) to develop a better understanding of modal choice as 
     it affects rail passenger and freight transportation, 
     including development of better models to predict 
     utilization;
       ``(4) to recommend priorities for technology demonstration 
     and development;
       ``(5) to meet additional priorities as determined by the 
     advisory board established under subsection (c), including 
     any recommendations made by the National Research Council;
       ``(6) to explore improvements in management, financing, and 
     institutional structures;
       ``(7) to address rail capacity constraints that affect 
     passenger and freight rail service through a wide variety of 
     options, ranging from operating improvements to dedicated new 
     infrastructure, taking into account the impact of such 
     options on operations;
       ``(8) to improve maintenance, operations, customer service, 
     or other aspects of intercity rail passenger and freight 
     service;
       ``(9) to recommend objective methodologies for determining 
     intercity passenger rail routes and services, including the 
     establishment of new routes, the elimination of existing 
     routes, and the contraction or expansion of services or 
     frequencies over such routes;
       ``(10) to review the impact of equipment and operational 
     safety standards on the further development of high speed 
     passenger rail operations connected to or integrated with 
     non-high speed freight or passenger rail operations; and
       ``(11) to recommend any legislative or regulatory changes 
     necessary to foster further development and implementation of 
     high speed passenger rail operations while ensuring the 
     safety of such operations that are connected to or integrated 
     with non-high speed freight or passenger rail operations.
       ``(c) Advisory Board.--
       ``(1) Establishment.--In consultation with the heads of 
     appropriate Federal departments and agencies, the Secretary 
     shall establish an advisory board to recommend research, 
     technology, and technology transfer activities related to 
     rail passenger and freight transportation.
       ``(2) Membership.--The advisory board shall include--
       ``(A) representatives of State transportation agencies;
       ``(B) transportation and environmental economists, 
     scientists, and engineers; and
       ``(C) representatives of Amtrak, the Alaska Railroad, 
     freight railroads, transit operating agencies, intercity rail 
     passenger agencies, railway labor organizations, and 
     environmental organizations.
       ``(d) National Academy of Sciences.-- The Secretary may 
     make grants to, and enter into cooperative agreements with, 
     the National Academy of Sciences to carry out such activities 
     relating to the research, technology, and technology transfer 
     activities described in subsection (b) as the Secretary deems 
     appropriate.''.
       (b) Clerical Amendment.--The chapter analysis for chapter 
     249 is amended by adding at the end the following:

``24910. Rail cooperative research program''.

              TITLE IV--PASSENGER RAIL SECURITY AND SAFETY

     SEC. 401. SYSTEMWIDE AMTRAK SECURITY UPGRADES.

       (a) In General--Subject to subsection (c) the Secretary of 
     Homeland Security, in consultation with the Secretary of 
     Transportation, is authorized to make grants to Amtrak--
       (1) to secure major tunnel access points and ensure tunnel 
     integrity in New York, Baltimore, and Washington, DC;
       (2) to secure Amtrak trains;
       (3) to secure Amtrak stations;
       (4) to obtain a watch list identification system approved 
     by the Secretary;
       (5) to obtain train tracking and interoperable 
     communications systems that are coordinated to the maximum 
     extent possible;
       (6) to hire additional police and security officers, 
     including canine units;
       (7) to expand emergency preparedness efforts; and
       (8) for employee security training.
       (b) Conditions.--The Secretary of Transportation shall 
     disburse funds to Amtrak provided under subsection (a) for 
     projects contained in a systemwide security plan approved by 
     the Secretary of Homeland Security. The plan shall include 
     appropriate measures to address security awareness, emergency 
     response, and passenger evacuation training.
       (c) Equitable Geographic Allocation.--The Secretary shall 
     ensure that, subject to meeting the highest security needs on 
     Amtrak's entire system, stations and facilities located 
     outside of the Northeast Corridor receive an equitable share 
     of the security funds authorized by this section.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Homeland Security to 
     carry out this section--
       (1) $63,500,000 for fiscal year 2006;
       (2) $30,000,000 for fiscal year 2007; and
       (3) $30,000,000 for fiscal year 2008.
     Amounts appropriated pursuant to this subsection shall remain 
     available until expended.

     SEC. 402. FIRE AND LIFE-SAFETY IMPROVEMENTS.

       (a) Life-safety Needs.--The Secretary of Transportation is 
     authorized to make grants to Amtrak for the purpose of making 
     fire and life-safety improvements to Amtrak tunnels on the 
     Northeast Corridor in New York, NY, Baltimore, MD, and 
     Washington, DC.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation for the 
     purposes of carrying out subsection (a) the following 
     amounts:
       (1) For the 6 New York tunnels to provide ventilation, 
     electrical, and fire safety technology upgrades, emergency 
     communication and lighting systems, and emergency access and 
     egress for passengers--
       (A) $190,000,000 for fiscal year 2006;
       (B) $190,000,000 for fiscal year 2007;
       (C) $190,000,000 for fiscal year 2008;
       (2) For the Baltimore & Potomac tunnel and the Union 
     tunnel, together, to provide adequate drainage, ventilation, 
     communication, lighting, and passenger egress upgrades--
       (A) $19,000,000 for fiscal year 2006;
       (B) $19,000,000 for fiscal year 2007;
       (C) $19,000,000 for fiscal year 2008;
       (3) For the Washington, DC, Union Station tunnels to 
     improve ventilation, communication, lighting, and passenger 
     egress upgrades--
       (A) $13,333,000 for fiscal year 2006;
       (B) $13,333,000 for fiscal year 2007;
       (C) $13,333,000 for fiscal year 2008;
       (c) Infrastructure Upgrades.--There are authorized to be 
     appropriated to the Secretary of Transportation for fiscal 
     year 2006 $3,000,000 for the preliminary design of options 
     for a new tunnel on a different alignment to augment the 
     capacity of the existing Baltimore tunnels.
       (d) Availability of Appropriated Funds.--Amounts made 
     available pursuant to this section shall remain available 
     until expended.
       (e) Plans Required.--The Secretary may not make amounts 
     available to Amtrak for obligation or expenditure under 
     subsection (a)--
       (1) until Amtrak has submitted to the Secretary, and the 
     Secretary has approved, an engineering and financial plan for 
     such projects; and
       (2) unless, for each project funded pursuant to this 
     section, the Secretary has approved a project management plan 
     prepared by Amtrak addressing appropriate project budget, 
     construction schedule, recipient staff organization, document 
     control and record keeping, change order procedure, quality 
     control and assurance, periodic plan updates, and periodic 
     status reports.
       (f) Review of Plans.--The Secretary of Transportation shall 
     complete the review of the plans required by paragraphs (1) 
     and (2) of subsection (e) and approve or disapprove the plans 
     within 45 days after the date on which each such plan is 
     submitted by Amtrak. If the Secretary determines that a plan 
     is incomplete or deficient, the Secretary shall notify Amtrak 
     of the incomplete items or deficiencies and Amtrak shall, 
     within 30 days after receiving the Secretary's notification, 
     submit a modified plan for the Secretary's review. Within 15 
     days after receiving additional information on items 
     previously included in the plan, and within 45 days after 
     receiving items newly included in a modified plan, the 
     Secretary shall either approve the modified plan, or, if the 
     Secretary finds the plan is still incomplete or deficient, 
     the Secretary shall identify in writing to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure the portions of the plan the Secretary finds 
     incomplete or deficient, approve all other portions of the 
     plan, obligate the funds associated with those other 
     portions, and execute an agreement with Amtrak within 15 days 
     thereafter on a process for resolving the remaining portions 
     of the plan.
       (g) Financial Contribution From Other Tunnel Users.--The 
     Secretary shall, taking into account the need for the timely 
     completion of all portions of the tunnel projects described 
     in subsection (a)--
       (1) consider the extent to which rail carriers other than 
     Amtrak use or plan to use the tunnels;
       (2) consider the feasibility of seeking a financial 
     contribution from those other rail carriers toward the costs 
     of the projects; and
       (3) obtain financial contributions or commitments from such 
     other rail carriers at levels reflecting the extent of their 
     use or planned use of the tunnels, if feasible.

     SEC. 403. AMTRAK PLAN TO ASSIST FAMILIES OF PASSENGERS 
                   INVOLVED IN RAIL PASSENGER ACCIDENTS.

       (a) In General.--Chapter 243 of title 49, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 24316. Plans to address needs of families of 
       passengers involved in rail passenger accidents

       ``(a) Submission of Plan.--Not later than 6 months after 
     the date of the enactment of the Passenger Rail Investment 
     and Improvement Act of 2005, Amtrak shall submit to the

[[Page 24637]]

     Chairman of the National Transportation Safety Board and the 
     Secretary of Transportation a plan for addressing the needs 
     of the families of passengers involved in any rail passenger 
     accident involving an Amtrak intercity train and resulting in 
     a loss of life.
       ``(b) Contents of Plans.--The plan to be submitted by 
     Amtrak under subsection (a) shall include, at a minimum, the 
     following:
       ``(1) A process by which Amtrak will maintain and provide 
     to the National Transportation Safety Board and the Secretary 
     of Transportation, immediately upon request, a list (which is 
     based on the best available information at the time of the 
     request) of the names of the passengers aboard the train 
     (whether or not such names have been verified), and will 
     periodically update the list. The plan shall include a 
     procedure, with respect to unreserved trains and passengers 
     not holding reservations on other trains, for Amtrak to use 
     reasonable efforts to ascertain the number and names of 
     passengers aboard a train involved in an accident.
       ``(2) A plan for creating and publicizing a reliable, toll-
     free telephone number within 4 hours after such an accident 
     occurs, and for providing staff, to handle calls from the 
     families of the passengers.
       ``(3) A process for notifying the families of the 
     passengers, before providing any public notice of the names 
     of the passengers, by suitably trained individuals.
       ``(4) A process for providing the notice described in 
     paragraph (2) to the family of a passenger as soon as Amtrak 
     has verified that the passenger was aboard the train (whether 
     or not the names of all of the passengers have been 
     verified).
       ``(5) A process by which the family of each passenger will 
     be consulted about the disposition of all remains and 
     personal effects of the passenger within Amtrak's control; 
     that any possession of the passenger within Amtrak's control 
     will be returned to the family unless the possession is 
     needed for the accident investigation or any criminal 
     investigation; and that any unclaimed possession of a 
     passenger within Amtrak's control will be retained by the 
     rail passenger carrier for at least 18 months.
       ``(6) A process by which the treatment of the families of 
     nonrevenue passengers will be the same as the treatment of 
     the families of revenue passengers.
       ``(7) An assurance that Amtrak will provide adequate 
     training to its employees and agents to meet the needs of 
     survivors and family members following an accident.
       ``(c) Use of Information.--The National Transportation 
     Safety Board, the Secretary of Transportation, and Amtrak may 
     not release to any person information on a list obtained 
     under subsection (b)(1) but may provide information on the 
     list about a passenger to the family of the passenger to the 
     extent that the Board or Amtrak considers appropriate.
       ``(d) Limitation on Liability.--Amtrak shall not be liable 
     for damages in any action brought in a Federal or State court 
     arising out of the performance of Amtrak in preparing or 
     providing a passenger list, or in providing information 
     concerning a train reservation, pursuant to a plan submitted 
     by Amtrak under subsection (b), unless such liability was 
     caused by Amtrak's conduct.
       ``(e) Limitation on Statutory Construction.--Nothing in 
     this section may be construed as limiting the actions that 
     Amtrak may take, or the obligations that Amtrak may have, in 
     providing assistance to the families of passengers involved 
     in a rail passenger accident.
       ``(f) Funding.--There are authorized to be appropriated to 
     the Secretary of Transportation for the use of Amtrak 
     $500,000 for fiscal year 2006 to carry out this section. 
     Amounts made available pursuant to this subsection shall 
     remain available until expended.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     243 of title 49, United States Code, is amended by adding at 
     the end the following:

``24316.  Plan to assist families of passengers involved in rail 
              passenger accidents.''.

     SEC. 404. NORTHERN BORDER RAIL PASSENGER REPORT.

       Within 180 days after the date of enactment of this Act, 
     the Secretary of Transportation, in consultation with the 
     Secretary of Homeland Security, the Assistant Secretary of 
     Homeland Security (Transportation Security Administration), 
     heads of other appropriate Federal departments, and agencies 
     and the National Railroad Passenger Corporation, shall 
     transmit a report to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure that 
     contains--
       (1) a description of the current system for screening 
     passengers and baggage on passenger rail service between the 
     United States and Canada;
       (2) an assessment of the current program to provide 
     preclearance of airline passengers between the United States 
     and Canada as outlined in ``The Agreement on Air Transport 
     Preclearance between the Government of Canada and the 
     Government of the United States of America'', dated January 
     18, 2001;
       (3) an assessment of the current program to provide 
     preclearance of freight railroad traffic between the United 
     States and Canada as outlined in the ``Declaration of 
     Principle for the Improved Security of Rail Shipments by 
     Canadian National Railway and Canadian Pacific Railway from 
     Canada to the United States'', dated April 2, 2003;
       (4) information on progress by the Department of Homeland 
     Security and other Federal agencies towards finalizing a 
     bilateral protocol with Canada that would provide for 
     preclearance of passengers on trains operating between the 
     United States and Canada;
       (5) a description of legislative, regulatory, budgetary, or 
     policy barriers within the United States Government to 
     providing pre-screened passenger lists for rail passengers 
     traveling between the United States and Canada to the 
     Department of Homeland Security;
       (6) a description of the position of the Government of 
     Canada and relevant Canadian agencies with respect to 
     preclearance of such passengers;
       (7) a draft of any changes in existing Federal law 
     necessary to provide for pre-screening of such passengers and 
     providing pre-screened passenger lists to the Department of 
     Homeland Security; and
       (8) an analysis of the feasibility of reinstating United 
     States Customs and Border Patrol rolling inspections onboard 
     international Amtrak trains.

     SEC. 405. PASSENGER, BAGGAGE, AND CARGO SCREENING.

       (a) Requirement for Study and Report.--The Secretary of 
     Homeland Security, in cooperation with the Secretary of 
     Transportation through the Assistant Secretary of Homeland 
     Security (Transportation Security Administration) and other 
     appropriate agencies, shall--
       (1) study the cost and feasibility of requiring security 
     screening for passengers, baggage, and cargo on passenger 
     trains including an analysis of any passenger train screening 
     pilot programs undertaken by the Department of Homeland 
     Security; and
       (2) report the results of the study, together with any 
     recommendations that the Secretary of Homeland Security may 
     have for implementing a rail security screening program to 
     the Senate Committee on Commerce, Science, and Transportation 
     and the House of Representatives Committee on Transportation 
     and Infrastructure within 1 year after the date of enactment 
     of this Act.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Homeland Security 
     $1,000,000 for fiscal year 2006 to carry out this section.
                                 ______
                                 
  SA 2361. Mr. TALENT submitted an amendment intended to be proposed by 
him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       On page 102, between lines 8 and 9, insert the following:
       (g) Prohibition on Exports.--An oil or gas lease issued 
     under this title shall prohibit the exportation of oil or gas 
     produced under the lease.

                                 ______
                                 
  SA 2362. Mr. WYDEN (for himself, Mr. Talent, Mr. Dorgan, Mrs. 
Feinstein, Mr. Dayton, Mr. Kohl, and Mr. Feingold) proposed an 
amendment to the bill S. 1932, to provide for reconciliation pursuant 
to section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); follows:

       At the end of section 401, add the following:
       (h) Prohibition on Exports.--An oil or gas lease issued 
     under this title shall prohibit the exportation of oil or gas 
     produced under the lease.

                                 ______
                                 
  SA 2363. Mr. HARKIN (for himself, Mr. Kohl, Mr. Obama, Mr. Bayh, Mr. 
Kerry, Mr. Jeffords, Mr. Kennedy, Mr. Durbin, Mr. Bingaman, and Mr. 
Salazar) submitted an amendment intended to be proposed by him to the 
bill S. 1932, to provide for reconciliation pursuant to section 202(a) 
of the concurrent resolution on the budget for fiscal year 2006 (H. 
Con. Res. 95); which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SENSE OF THE SENATE.

       (a) Findings.--The Senate makes the following findings:
       (1) On October 26, 2005, the Committee on Ways and Means of 
     the United States House of Representatives approved a budget 
     reconciliation package that would significantly reduce the 
     Federal Government's funding used to pay for the child 
     support program established under part D of title IV of the 
     Social Security Act (42 U.S.C. 651 et seq.) and would 
     restrict the ability of States to use Federal child support 
     incentive payments for child support program expenditures 
     that are eligible for Federal matching payments.
       (2) The child support program enforces the responsibility 
     of non-custodial parents to

[[Page 24638]]

     support their children. The program is jointly funded by 
     Federal, State and local governments.
       (3) The Office of Management and Budget gave the child 
     support program a 90 percent rating under the Program 
     Assessment Rating Tool (PART), making it the highest 
     performing social services program.
       (4) The President's 2006 budget cites the child support 
     program as ``one of the highest rated block/formula grants of 
     all reviewed programs government-wide. This high rating is 
     due to its strong mission, effective management, and 
     demonstration of measurable progress toward meeting annual 
     and long term performance measures.''
       (5) In 2004, the child support program spent $5,300,000,000 
     to collect $21,900,000,000 in support payments. Public 
     investment in the child support program provides more than a 
     four-fold return, collecting $4.38 in child support for every 
     Federal and State dollar that the program spends.
       (6) In 2004, 17,300,000 children, or 60 percent of all 
     children living apart from a parent, received child support 
     services through the program. The percentage is higher for 
     poor children--84 percent of poor children living apart from 
     their parent receive child support services through the 
     program. Families assisted by the child support program 
     generally have low or moderate incomes.
       (7) Children who receive child support from their parents 
     do better in school than those that do not receive support 
     payments. Older children with child support payments are more 
     likely to finish high school and attend college.
       (8) The child support program directly decreases the costs 
     of other public assistance programs by increasing family 
     self-sufficiency. The more effective the child support 
     program in a State, the higher the savings in public 
     assistance costs.
       (9) Child support helps lift more than 1,000,000 Americans 
     out of poverty each year.
       (10) Families that are former recipients of assistance 
     under the temporary assistance for needy families program 
     (TANF) have seen the greatest increase in child support 
     payments. Collections for these families increased 94 percent 
     between 1999 and 2004, even though the number of former TANF 
     families did not increase during this period.
       (11) Families that receive child support are more likely to 
     find and hold jobs, and less likely to be poor than 
     comparable families without child support.
       (12) The child support program saved costs in the TANF, 
     Medicaid, Food Stamps, Supplemental Security Income, and 
     subsidized housing programs.
       (13) The Congressional Budget Office estimates that the 
     funding cuts proposed by the Committee on Ways and Means of 
     the House of Representatives would reduce child support 
     collections by nearly $7,900,000,000 in the next 5 years and 
     $24,100,000,000 in the next 10 years.
       (14) That National Governor's Association has stated that 
     such cuts are unduly burdensome and will force States to 
     reevaluate several services that make the child support 
     program so effective.
       (15) The Federal Government has a moral responsibility to 
     ensure that parents who do not live with their children meet 
     their financial support obligations for those children.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Senate will not accept any reduction in funding for 
     the child support program established under part D of title 
     IV of the Social Security Act (42 U.S.C. 651 et seq.), or any 
     restrictions on the ability of States to use Federal child 
     support incentive payments for child support program 
     expenditures that are eligible for Federal matching payments, 
     during this Congress.

                                 ______
                                 
  SA 2364. Mr. BINGAMAN submitted an amendment intended to be proposed 
by him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       Strike section 7201 and insert the following:

     SEC. 7201. INCREASES IN PBGC PREMIUMS.

       Section 4006(a)(3)(A)(i) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1306(a)(3)(A)(i)) is amended 
     to read as follows:
       ``(i) in the case of a single-employer plan, an amount 
     equal to--
       ``(I) for plan years beginning after December 31, 1990, and 
     before January 1, 2006, $19, or
       ``(II) for plan years beginning after December 31, 2005, 
     $30,
     plus the additional premium (if any) determined under 
     subparagraph (E) for each individual who is a participant in 
     such plan during the plan year;''.

                                 ______
                                 
  SA 2365. Mr. BINGAMAN (for himself, Mr. Rockefeller, Mrs. Lincoln, 
Mr. Pryor, and Mr. Leahy) proposed an amendment to the bill S. 1932, to 
provide for reconciliation pursuant to section 202(a) of the concurrent 
resolution on the budget for fiscal year 2006 (H. Con. Res. 95); as 
follows:

       On page 188, after line 24, add the following:

     SEC. 6037. LIMITATION ON SEVERE REDUCTION IN THE MEDICAID 
                   FMAP FOR FISCAL YEAR 2006.

       (a) Limitation on Reduction.--In no case shall the FMAP for 
     a State for fiscal year 2006 be less than the greater of the 
     following:
       (1) 2005 fmap decreased by the applicable percentage 
     points.--The FMAP determined for the State for fiscal year 
     2005, decreased by--
       (A) 0.1 percentage points in the case of Delaware and 
     Michigan;
       (B) 0.3 percentage points in the case of Kentucky; and
       (C) 0.5 percentage points in the case of any other State.
       (2) Computation without retroactive application of 
     rebenchmarked per capita income.--The FMAP that would have 
     been determined for the State for fiscal year 2006 if the per 
     capita incomes for 2001 and 2002 that was used to determine 
     the FMAP for the State for fiscal year 2005 were used.
       (b) Scope of Application.--The FMAP applicable to a State 
     for fiscal year 2006 after the application of subsection (a) 
     shall apply only for purposes of titles XIX and XXI of the 
     Social Security Act (including for purposes of making 
     disproportionate share hospital payments described in section 
     1923 of such Act (42 U.S.C. 1396r-4) and payments under such 
     titles that are based on the enhanced FMAP described in 
     section 2105(b) of such Act (42 U.S.C. 1397ee(b))) and shall 
     not apply with respect to payments under title IV of such Act 
     (42 U.S.C. 601 et seq.).
       (c) Definitions.--In this section:
       (1) FMAP.--The term ``FMAP'' means the Federal medical 
     assistance percentage, as defined in section 1905(b) of the 
     Social Security Act (42 U.S.C. 1396d(b)).
       (2) State.--The term ``State'' has the meaning given such 
     term for purposes of title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.).
       (d) Repeal.--Effective as of October 1, 2006, this section 
     is repealed and shall not apply to any fiscal year after 
     fiscal year 2006.

     SEC. 6038. EXTENSION OF PRESCRIPTION DRUG REBATES TO 
                   ENROLLEES IN MEDICAID MANAGED CARE 
                   ORGANIZATIONS.

       (a) In General.--Section 1927(j)(1) (42 U.S.C. 1396r-
     8(j)(1)) is amended by striking ``dispensed'' and all that 
     follows through the period and inserting ``are not subject to 
     the requirements of this section if such drugs are--
       ``(A) dispensed by health maintenance organizations that 
     contract under section 1903(m); and
       ``(B) subject to discounts under section 340B of the Public 
     Health Service Act (42 U.S.C. 256b).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of enactment of this Act and 
     apply to rebate agreements entered into or renewed under 
     section 1927 of the Social Security Act (42 U.S.C. 1396r-8) 
     on or after such date.
                                 ______
                                 
  SA 2366. Ms. LANDRIEU submitted an amendment intended to be proposed 
by her to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); as follows:

       On page 95, line 21, before the period at the end insert 
     the following: ``, of which $1,000,000,000 shall be 
     transferred to the Secretary of the Interior to make payments 
     to producing States and coastal political subdivisions under 
     section 31(b) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1356a(b))''.
                                 ______
                                 
  SA 2367. Mr. BYRD proposed an amendment to the bill S. 1932, to 
provide for reconciliation pursuant to section 202(a) of the concurrent 
resolution on the budget for fiscal year 2006 (H. Con. Res. 95); as 
follows:

       On page 810, strike line 17 and all that follows through 
     page 816, lines 21, and insert the following:

                 TITLE VIII--COMMITTEE ON THE JUDICIARY

     SEC. 8001. FEES WITH RESPECT TO IMMIGRATION SERVICES FOR 
                   INTRACOMPANY TRANSFEREES.

       (a) In General.--Section 214(c) of the Immigration and 
     Nationality Act (8 U.S.C. 1184(c)) is amended by adding at 
     the end the following:
       ``(15)(A) The Secretary of State shall impose a fee on an 
     employer when an alien files an application abroad for a visa 
     authorizing initial admission to the United States as a 
     nonimmigrant described in section 101(a)(15)(L) in order to 
     be employed by the employer, if the alien is covered under a 
     blanket petition described in paragraph (2)(A).
       ``(B) The Secretary of Homeland Security shall impose a fee 
     on an employer filing a petition under paragraph (1) to--
       ``(i) initially grant an alien nonimmigrant status under 
     section 101(a)(15)(L); or
       ``(ii) extend, for the first time, the stay of an alien 
     having such status.
       ``(C) The amount of each fee imposed under subparagraph (A) 
     or (B) shall be $1,500.

[[Page 24639]]

       ``(D) Fees imposed under subparagraphs (A) and (B)--
       ``(i) shall apply to principal aliens; and
       ``(ii) shall not apply to spouses or children who are 
     accompanying or following to join such principal aliens.
       ``(E)(i) An employer may not require an alien who is the 
     beneficiary of the visa or petition for which a fee is 
     imposed under this paragraph to reimburse, or otherwise 
     compensate, the employer for part or all of the cost of such 
     fee.
       ``(ii) Any person or entity which is determined, after 
     notice and opportunity for an administrative hearing, to have 
     violated clause (i) shall be subject to the civil penalty 
     described in section 274A(g)(2).''.
       (b) Conforming Amendment.--Section 286(m) of the 
     Immigration and Nationality Act (8 U.S.C. 1356(m)) is amended 
     by inserting ``, including those fees provided for in section 
     214(c)(15) of such Act,'' after ``all adjudication fees''.
       (c) Expenditure Limitation.--Amounts collected under 
     section 214(c)(15) of the Immigration and Nationality Act, as 
     added by subsection (a), may not be expended unless 
     specifically appropriated by an Act of Congress.
                                 ______
                                 
  SA 2368. Mr. ENSIGN (for himself, Mr. DeMint, Mr. Smith, Mr. Sununu, 
and Mr. McCain) submitted an amendment intended to be proposed by him 
to the bill S. 1932, to provide for reconciliation pursuant to section 
202(a) of the concurrent resolution on the budget for fiscal year 2006 
(H. Con. Res. 95); as follows:

       On page 94, line 7, strike ``$3,000,000,000'' and insert 
     ``$1,000,000,000''.
                                 ______
                                 
  SA 2369. Mr. AKAKA submitted an amendment intended to be proposed by 
him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       After section 6036, insert the following:

     SEC. 6037. TREATMENT OF HAWAII AS A LOW-DSH STATE.

       Section 1923(f) (42 U.S.C. 1396r-4(f)) is amended--
       (1) by redesignating paragraph (7) as paragraph (8); and
       (2) by inserting after paragraph (6), the following:
       ``(7) Treatment of hawaii as a low-dsh state.--The 
     Secretary shall compute a DSH allotment of $10,000,000 for 
     the State of Hawaii for fiscal year 2006. For purposes of 
     fiscal year 2007 and each fiscal year thereafter, such 
     allotment shall be increased in the same manner as allotments 
     for low DSH States are increased under clauses (ii) and (iii) 
     of paragraph (5)(B).''.
                                 ______
                                 
  SA 2370. Mr. McCAIN (for himself, Mr. Sununu, and Mr. Rockefeller) 
proposed an amendment to the bill S. 1932, to provide for 
reconciliation pursuant to section 202(a) of the concurrent resolution 
on the budget for fiscal year 2006 (H. Con. Res. 95); as follows:

       On page 91, line 6, strike ``April 7, 2009'' and insert 
     ``April 7, 2008''.
                                 ______
                                 
  SA 2371. Ms. SNOWE (for herself, Mr. Wyden, Mr. McCain, and Ms. 
Stabenow) submitted an amendment intended to be proposed by her to the 
bill S. 1932, to provide for reconciliation pursuant to section 202(a) 
of the concurrent resolution on the budget for fiscal year 2006 (H. 
Con. Res. 95); which was ordered to lie on the table; as follows:

       After section 6115, insert the following:

     SEC. 6116. NEGOTIATING FAIR PRICES FOR MEDICARE PRESCRIPTION 
                   DRUGS.

       (a) In General.--Section 1860D-11 (42 U.S.C. 1395w-111) is 
     amended by striking subsection (i) (relating to 
     noninterference) and inserting the following:
       ``(i) Authority To Negotiate Prices With Manufacturers.--
       ``(1) In general.--Subject to paragraph (4), in order to 
     ensure that beneficiaries enrolled under prescription drug 
     plans and MA-PD plans pay the lowest possible price, the 
     Secretary shall have authority similar to that of other 
     Federal entities that purchase prescription drugs in bulk to 
     negotiate contracts with manufacturers of covered part D 
     drugs, consistent with the requirements and in furtherance of 
     the goals of providing quality care and containing costs 
     under this part.
       ``(2) Mandatory responsibilities.--The Secretary shall be 
     required to--
       ``(A) negotiate contracts with manufacturers of covered 
     part D drugs for each fallback prescription drug plan under 
     subsection (g); and
       ``(B) participate in negotiation of contracts of any 
     covered part D drug upon request of an approved prescription 
     drug plan or MA-PD plan.
       ``(3) Rule of construction.--Nothing in paragraph (2) shall 
     be construed to limit the authority of the Secretary under 
     paragraph (1) to the mandatory responsibilities under 
     paragraph (2).
       ``(4) No particular formulary or price structure.--In order 
     to promote competition under this part and in carrying out 
     this part, the Secretary may not require a particular 
     formulary or institute a price structure for the 
     reimbursement of covered part D drugs.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the enactment of section 
     101 of the Medicare Prescription Drug, Improvement, and 
     Modernization Act of 2003 (Public Law 108-173).
                                 ______
                                 
  SA 2372. Mrs. MURRAY (for herself, Mr. Rockefeller, Mr. Bingaman, Mr. 
Kennedy, Mrs. Clinton, Mr. Lautenberg, and Mr. Kohl) proposed an 
amendment to the bill S. 1932, to provide for reconciliation pursuant 
to section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); as follows:

       On page 188, after line 24, add the following:

     SEC. 6037. CONTINUING STATE COVERAGE OF MEDICAID PRESCRIPTION 
                   DRUG COVERAGE TO MEDICARE DUAL ELIGIBLE 
                   BENEFICIARIES FOR 6 MONTHS.

       (a) Six-Month Transition.--
       (1) In general.--Only with respect to prescriptions filled 
     during the period beginning on January 1, 2006, and ending on 
     June 30, 2006, for, or on behalf of an individual described 
     in paragraph (2), section 1935(d) of the Social Security Act 
     (42 U.S.C. 1396u-5(d)) shall not apply and, notwithstanding 
     any other provision of law, a State (as defined for purposes 
     of title XIX of such Act) shall continue to provide (and 
     receive Federal financial participation for) medical 
     assistance under such title with respect to prescription 
     drugs as if such section 1935(d) had not been enacted.
       (2) Individual described.--For purposes of paragraph (1), 
     an individual described in this paragraph is a full-benefit 
     dual eligible individual (as defined in section 1935(c)(6) of 
     such Act (42 U.S.C. 1396u-5(c)(6))--
       (A) who, as of January 1, 2006, is not enrolled in a 
     prescription drug plan or an MA-PD plan under part D of title 
     XVIII of the Social Security Act; or
       (B) whose access to prescription drugs that were covered 
     under a State Medicaid plan on December 31, 2005, is 
     restricted or unduly burdened as a result of the individual's 
     enrollment in a prescription drug plan or an MA-PD plan under 
     part D of title XVIII of such Act.
       (b) Application.--
       (1) Medicare as primary payer.--Nothing in subsection (a) 
     shall be construed as changing or affecting the primary payer 
     status of a prescription drug plan or an MA-PD plan under 
     part D of title XVIII of the Social Security Act with respect 
     to prescription drugs furnished to any full-benefit dual 
     eligible individual (as defined in section 1935(c)(6) of such 
     Act (42 U.S.C. 1396u-5(c)(6)) during the 6-month period 
     described in such subsection.
       (2) Third party liability.--Nothing in subsection (a) shall 
     be construed as limiting the authority or responsibility of a 
     State under section 1902(a)(25) of the Social Security Act 
     (42 U.S.C. 1396a(a)(25)) to seek reimbursement from a 
     prescription drug plan, an MA-PD plan, or any other third 
     party, of the costs incurred by the State in providing 
     prescription drug coverage described in such subsection.
                                 ______
                                 
  SA 2373. Mr. REED (for himself, Ms. Collins, Mr. Kennedy, Mr. Kerry, 
Mr. Rockefeller, Mr. Schumer, Mr. Lieberman, Ms. Mikulski, Mr. Kohl, 
and Mr. Salazar) submitted an amendment intended to be proposed by him 
to the bill S. 1932, to provide for reconciliation pursuant to section 
202(a) of the concurrent resolution on the budget for fiscal year 2006 
(H. Con. Res. 95); which was ordered to lie on the table; as follows:

         At the appropriate place, insert the following:

     SEC. __. TEMPORARY WINDFALL PROFITS TAX FOR LIHEAP FUNDING.

         (a) In General.--Subtitle E of the Internal Revenue Code 
     of 1986 (relating to alcohol, tobacco, and certain other 
     excise taxes) is amended by adding at the end thereof the 
     following new chapter:

         ``CHAPTER 56--TEMPORARY WINDFALL PROFITS ON CRUDE OIL

``Sec. 5896. Imposition of tax.
``Sec. 5897. Windfall profit; removal price; adjusted base price; 
              qualified investment.
``Sec. 5898. Special rules and definitions.

     ``SEC. 5896. IMPOSITION OF TAX.

         ``(a) In General.--In addition to any other tax imposed 
     under this title, there is hereby imposed on any integrated 
     oil company (as defined in section 291(b)(4)) an excise tax 
     equal to the amount equal to the applicable percentage of the 
     windfall profit from all barrels of taxable crude oil removed 
     from the property during taxable years beginning in 2005.

[[Page 24640]]

         ``(b) Applicable Percentage.--For purposes of subsection 
     (a), the applicable percentage shall be determined by the 
     Secretary such that the resulting revenues in the Treasury 
     are sufficient to meet the expenditure requirements of 
     section ___(d) (relating to appropriations for Low-Income 
     Home Energy Assistance program).
         ``(c) Fractional Part of Barrel.--In the case of a 
     fraction of a barrel, the tax imposed by subsection (a) shall 
     be the same fraction of the amount of such tax imposed on the 
     whole barrel.
         ``(d) Tax Paid by Producer.--The tax imposed by this 
     section shall be paid by the producer of the taxable crude 
     oil.

     ``SEC. 5897. WINDFALL PROFIT; REMOVAL PRICE; ADJUSTED BASE 
                   PRICE.

         ``(a) General Rule.--For purposes of this chapter, the 
     term `windfall profit' means the excess of the removal price 
     of the barrel of taxable crude oil over the adjusted base 
     price of such barrel.
         ``(b) Removal Price.--For purposes of this chapter--
         ``(1) In general.--Except as otherwise provided in this 
     subsection, the term `removal price' means the amount for 
     which the barrel of taxable crude oil is sold.
         ``(2) Sales between related persons.--In the case of a 
     sale between related persons, the removal price shall not be 
     less than the constructive sales price for purposes of 
     determining gross income from the property under section 613.
         ``(3) Oil removed from property before sale.--If crude 
     oil is removed from the property before it is sold, the 
     removal price shall be the constructive sales price for 
     purposes of determining gross income from the property under 
     section 613.
         ``(4) Refining begun on property.--If the manufacture or 
     conversion of crude oil into refined products begins before 
     such oil is removed from the property--
         ``(A) such oil shall be treated as removed on the day 
     such manufacture or conversion begins, and
         ``(B) the removal price shall be the constructive sales 
     price for purposes of determining gross income from the 
     property under section 613.
         ``(5) Property.--The term `property' has the meaning 
     given such term by section 614.
         ``(c) Adjusted Base Price Defined.--For purposes of this 
     chapter, the term `adjusted base price' means $40 for each 
     barrel of taxable crude oil.

     ``SEC. 5898. SPECIAL RULES AND DEFINITIONS .

         ``(a) Withholding and Deposit of Tax.--The Secretary 
     shall provide such rules as are necessary for the withholding 
     and deposit of the tax imposed under section 5896 on any 
     taxable crude oil.
         ``(b) Records and Information.--Each taxpayer liable for 
     tax under section 5896 shall keep such records, make such 
     returns, and furnish such information (to the Secretary and 
     to other persons having an interest in the taxable crude oil) 
     with respect to such oil as the Secretary may by regulations 
     prescribe.
         ``(c) Return of Windfall Profit Tax.--The Secretary shall 
     provide for the filing and the time of such filing of the 
     return of the tax imposed under section 5896.
         ``(d) Definitions.--For purposes of this chapter--
         ``(1) Producer.--The term `producer' means the holder of 
     the economic interest with respect to the crude oil.
         ``(2) Crude oil.--
         ``(A) In general.--The term `crude oil' includes crude 
     oil condensates and natural gasoline.
         ``(B) Exclusion of newly discovered oil.--Such term shall 
     not include any oil produced from a well drilled after the 
     date of the enactment of the chapter, except with respect to 
     any oil produced from a well drilled after such date on any 
     proven oil or gas property (within the meaning of section 
     613A(c)(9)(A)).
         ``(3) Barrel.--The term `barrel' means 42 United States 
     gallons.
         ``(e) Adjustment of Removal Price.--In determining the 
     removal price of oil from a property in the case of any 
     transaction, the Secretary may adjust the removal price to 
     reflect clearly the fair market value of oil removed.
         ``(f) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this chapter.''.
         (b) Clerical Amendment.--The table of chapters for 
     subtitle E of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new item:

        ``Chapter 56. Temporary Windfall Profit on Crude Oil.''.

         (c) Deductibility of Windfall Profit Tax.--The first 
     sentence of section 164(a) of the Internal Revenue Code of 
     1986 (relating to deduction for taxes) is amended by 
     inserting after paragraph (5) the following new paragraph:
         ``(6) The windfall profit tax imposed by section 5896.''.
         (d) Low Income Home Energy Assistance Program 
     Appropriations.--With respect to fiscal year 2006, in 
     addition to amounts appropriated under any other provision of 
     law, for making payments under title XXVI of the Omnibus 
     Budget Reconciliation Act of 1981 (42 U.S.C. 8621 et seq.), 
     $2,920,000,000, shall be appropriated to distribute funds to 
     all the States in accordance with section 2604 of that Act 
     (42 U.S.C. 8623) (other than subsection (e) of such section).
         (e) Effective Dates.--
         (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning in 2005.
         (2) Subsection (d).--Subsection (d) shall take effect on 
     the date of the enactment of this Act.
                                 ______
                                 
  SA 2374. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

         Beginning on page 105, strike line 23 and all that 
     follows through page 106, line 2, and insert the following:

         ``(IV) Chargebacks, rebates provided to a pharmacy 
     (excluding a mail order pharmacy, a pharmacy at a nursing 
     facility or home, and a pharmacy benefit manager), or any 
     other direct or indirect discounts.

                                 ______
                                 
  SA 2375. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

         After section 6115, insert the following:

     SEC. 6116. EXTENSION OF IMPLEMENTATION SCHEDULE FOR MEDICARE 
                   CONTRACTING REFORM.

         Notwithstanding any other provision of law, the Secretary 
     of Health and Human Services shall extend the schedule for 
     the implementation of the amendments made by section 911 of 
     the Medicare Prescription Drug, Improvement, and 
     Modernization Act of 2003 (Public Law 108-173; 117 Stat. 
     2378) until September 30, 2011.
                                 ______
                                 
  SA 2376. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

         Beginning on page 123, strike line 1 and all that follows 
     through page 124, line 3, and insert the following:
         (A) January 1, 2009; or
         (B) the date that is 6 months after the close of the 
     first regular session of the State legislature that begins 
     after the date of enactment of this Act.
         (c) Interim Upper Payment Limit.--
         (1) In general.--With respect to a State program under 
     title XIX of the Social Security Act, during the period that 
     begins on January 1, 2006, and ends on the effective date 
     applicable to such State under subsection (b)(3), the 
     Secretary shall--
         (A) apply the Federal upper payment limit established 
     under section 447.332(b) of title 42, Code of Federal 
     Regulations to the State by substituting ``125 percent'' for 
     ``150 percent'';
         (B) in the case of covered outpatient drugs under title 
     XIX of such Act that are marketed as of July 1, 2005, and are 
     subject to Federal upper payment limits that apply under 
     section 447.332 of title 42, Code of Federal Regulations, use 
     average wholesale prices, direct prices, and wholesale 
     acquisition costs for such drugs that do not exceed such 
     prices and costs as of such date to determine the Federal 
     upper payment limits that apply under section 447.332 of 
     title 42, Code of Federal Regulations to such drugs during 
     such period; and
         (C) analyze and report to Congress not later than July 1, 
     2008, on the impact of applying the pharmacy reimbursement 
     limits for multiple source drugs under section 1927(e) of the 
     Social Security Act (as amended by subsection (b) and taking 
     into account the amendments made by subsection (a)), 
     particularly with respect to whether such limits are 
     consistent with acquisition costs for rural and urban 
     pharmacies.
                                 ______
                                 
  SA 2377. Mr. COLEMAN (for himself, Mr. Kennedy, Mr. Bayh, and Mrs. 
Clinton) submitted an amendment intended to be proposed by him to the 
bill S. 1932, to provide for reconciliation pursuant to section 202(a) 
of the concurrent resolution on the budget for fiscal year 2006 (H. 
Con. Res. 95); which was ordered to lie on the table; as follows:

         On page 298, after line 25, insert the following:
         ``(5) Requirements for measures of efficiency.--
         ``(A) In general.--Any measure of efficiency selected by 
     the Secretary under paragraph (3)(A) shall, to the extent 
     feasible, reflect cost reductions resulting from--

[[Page 24641]]

         ``(i) improvements in quality of care, including the 
     appropriate use of preventive and screening services and 
     reductions in medical errors;
         ``(ii) changes in clinical processes that eliminate 
     practices that are clearly not beneficial, as determined by a 
     consensus of peer-reviewed medical literature or by the 
     relevant medical specialty societies; or
         ``(iii) improvements in administrative processes, such as 
     reductions in unnecessarily duplicative tests, reductions in 
     the unnecessary use of hospital emergency departments, or the 
     use of health information technology.
         ``(B) Limitations on types of measures selected.--No 
     measure of efficiency may be selected by the Secretary under 
     paragraph (3)(A) that--
         ``(i) is based on cost comparisons between providers that 
     do not identify clear, scientifically justified paths to 
     reducing costs without compromising quality of care;
         ``(ii) is based on governmental judgments about the value 
     of life, reduction in pain, or improvement of function;
         ``(iii) requires physicians to limit the choice by 
     patients and physicians of advanced medical technologies 
     based on individual needs; or
         ``(iv) would limit the adoption of new medical 
     technologies.
         ``(C) Scientifically justified.--For purposes of 
     subparagraph (B)(i), the term `scientifically justified' 
     means supported by--
         ``(i) the consensus recommendation of the relevant 
     specialty or subspecialty society; or
         ``(ii) a consensus of the peer-reviewed literature.
         ``(D) Application to additional measures.--The provisions 
     of subparagraphs (B), (C), and (D) shall apply to measures 
     described in section 1860E-1(b)(1)(B)(iv).
                                 ______
                                 
  SA 2378. Mr. SPECTER (for himself and Mr. Leahy) submitted an 
amendment intended to be proposed by him to the bill S. 1932, to 
provide for reconciliation pursuant to section 202(a) of the concurrent 
resolution on the budget for fiscal year 2006 (H. Con. Res. 95); which 
was ordered to lie on the table; as follows:

       At the end of title VIII, insert the following:

     SEC. __. JUSTICE PROGRAMS.

       (a) In General.--The Secretary of the Treasury
       (1) for fiscal year 2006, out of the funds in the Treasury 
     not otherwise appropriated, shall pay to the Attorney 
     General, by December 31, 2005, the amounts listed in 
     subsection (b) that are to be provided for fiscal year 2006; 
     and
       (2) for each subsequent fiscal year provided in subsection 
     (b) out of funds in the Treasury not otherwise appropriated 
     shall pay to the Attorney General the amounts provided by 
     November 1 of each such fiscal year.
       (b) Amounts Provided.--The amounts referred to in 
     subsection (a), which shall be in addition to funds 
     appropriated for each fiscal year, are--
       (1) $8,000,000 for fiscal year 2006, $17,000,000 for fiscal 
     year 2007, $15,000,000 for fiscal year 2008, $10,000,000 for 
     fiscal year 2009, and $10,000,000 for fiscal year 2010, to 
     fund the Bulletproof Vest Partnership Program as authorized 
     under section 4 of Public Law 108-372.
       (2) $3,700,000 for fiscal year 2006, $6,300,000 for fiscal 
     year 2007, $5,000,000 for fiscal year 2008, $5,000,000 for 
     fiscal year 2009, and $5,000,000 for fiscal year 2010, to 
     fund DNA Training and Education for Law Enforcement, 
     Correctional Personnel, and Court Officers as authorized by 
     section 303 of Public Law 108-405.
       (3) $8,000,000 for fiscal year 2006, $12,000,000 for fiscal 
     year 2007, $10,000,000 for fiscal year 2008, $10,000,000 for 
     fiscal year 2009, and $10,000,000 for fiscal year 2010, to 
     fund DNA Research and Development as authorized by section 
     305 of Public Law 108-405.
       (4) $500,000 for fiscal year 2006, $500,000 for fiscal year 
     2007, $500,000 for fiscal year 2008, $500,000 for fiscal year 
     2009, and $500,000 for fiscal year 2010, to fund the National 
     Forensic Science Commission as authorized by section 306 of 
     Public Law 108-405.
       (5) $1,000,000 for fiscal year 2006, $1,000,000 for fiscal 
     year 2007, $1,000,000 for fiscal year 2008, $1,000,000 for 
     fiscal year 2009, and $1,000,000 for fiscal year 2010, to 
     fund DNA Identification of Missing Persons as authorized by 
     section 308 of Public Law 108-405.
       (6) $8,000,000 for fiscal year 2006, $27,000,000 for fiscal 
     year 2007, $26,000,000 for fiscal year 2008, $25,000,000 for 
     fiscal year 2009, and $25,000,000 for fiscal year 2010, to 
     fund Capital Litigation Improvement Grants as authorized by 
     sections 421, 422, and 426 of Public Law 108-405.
       (7) $2,500,000 for fiscal year 2006, $3,000,000 for fiscal 
     year 2007, $2,500,000 for fiscal year 2008, $2,500,000 for 
     fiscal year 2009, and $2,500,000 for fiscal year 2010, to 
     fund the Kirk Bloodsworth Post-Conviction DNA Testing Grant 
     Program as authorized by sections 412 and 413 of Public Law 
     108-405.
       (8) $1,000,000 for fiscal year 2006, $1,000,000 for fiscal 
     year 2007, $1,000,000 for fiscal year 2008, $1,000,000 for 
     fiscal year 2009, and $1,000,000 for fiscal year 2010, to 
     fund Increased Resources for Enforcement of Crime Victims 
     Rights, Crime Victims Notification Grants as authorized by 
     section 1404D of the Victims of Crime Act of 1984 (42 D.S.C. 
     10603 d).
       (c) Obligation of Funds.--The Attorney General shall--
       (1) receive funds under this section for fiscal years 2006 
     through 2010; and
       (2) accept such funds in the amounts provided which shall 
     be obligated for the purposes stated in this section by March 
     1 of each fiscal year.

     SEC. --. COPYRIGHT PROGRAM.

       (a) In General.--The Secretary of the Treasury--
       (1) for fiscal year 2006, out of the funds in the Treasury 
     not otherwise appropriated, shall pay to the Librarian of the 
     Congress, by December 31, 2005, the amounts listed in 
     subsection (b) that are to be provided for fiscal year 2006; 
     and
       (2) for each subsequent fiscal year provided in subsection 
     (b) out of funds in the Treasury not otherwise appropriated 
     shall pay to the Librarian of the Congress the amounts 
     provided by November 1 of each such fiscal year.
       (b) Amounts Provided.--The amounts referred to in 
     subsection (a), which shall be in addition to funds 
     appropriated for each fiscal year, are: $1,300,000 for fiscal 
     year 2006, $1,300,000 for fiscal year 2007, $1,300,000 for 
     fiscal year 2008, $1,300,000 for fiscal year 2009, and 
     $1,300,000 for fiscal year 2010, to fund the Copyright 
     Royalty Judges Program as authorized under section 
     803(e)(1)(B) of title 17, United States Code.
       (c) Obligation of Funds.--The Librarian of the Congress 
     shall--
       (1) receive funds under this section for fiscal years 2006 
     through 2010; and
       (2) accept such funds in the amounts provided which shall 
     be obligated for the purposes stated in this section by March 
     1 of each fiscal year.
                                 ______
                                 
  SA 2379. Mrs. FEINSTEIN (for herself, Mrs. Hutchison, Mrs. Boxer, 
Mrs. Murray, Mr. Lautenberg, Mr. Schumer, Mr. Corzine, and Ms. 
Cantwell) submitted an amendment intended to be proposed by her to the 
bill S. 1932, to provide for reconciliation pursuant to section 202(a) 
of the concurrent resolution on the budget for fiscal year 2006 (H. 
Con. Res. 95); which was ordered to lie on the table; as follows:

       On page 188, after line 24, add the following:

     SEC. 6037. AUTHORITY TO CONTINUE PROVIDING CERTAIN ADULT DAY 
                   HEALTH CARE SERVICES OR MEDICAL ADULT DAY CARE 
                   SERVICES.

       Notwithstanding any other provision of law, the Secretary 
     shall not--
       (1) withhold, suspend, disallow, or otherwise deny Federal 
     financial participation under section 1903(a) of the Social 
     Security Act (42 U.S.C. 1396b(a)) for adult day health care 
     services or medical adult day care services, as defined under 
     a State medicaid plan approved on or before 1982, if such 
     services are provided consistent with such definition and the 
     requirements of such plan; or
       (2) withdraw Federal approval of any such State plan or 
     part thereof regarding the provision of such services.
                                 ______
                                 
  SA 2380. Mr. LIEBERMAN submitted an amendment intended to be proposed 
by him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       On page 368, between line 5 and 6, insert the following:

     SEC. 6116. QUALITY MEASUREMENT SYSTEMS AMENDMENTS.

       Section 1860E-1 , as added by section 6110(a)(2), is 
     amended--
       (1) in subsection (b)(1)--
       (A) in subparagraph (B)--
       (i) in clause (vi), by striking ``and'' at the end;
       (ii) in clause (vii), by striking the period at the end and 
     inserting ``; and''; and
       (iii) by adding at the end the following new clause:
       ``(viii) measures that address conditions where there is 
     the greatest disparity of health care provided and health 
     outcomes between majority and minority groups.''; and
       (B) in subparagraph (E)--
       (i) in clause (v), by striking ``and'' at the end;
       (ii) by redesignating clause (vi) as clause (vii); and
       (iii) by inserting after clause (v) the following new 
     clause:
       ``(vi) allows quality measures that are reported to be 
     stratified according to patient group characteristics, such 
     as gender, language spoken, insurance status, and race and 
     ethnicity, using, at a minimum, the categories of race and 
     ethnicity described in the 1997 Office of Management and 
     Budget Standards for Maintaining, Collecting, and Presenting 
     Federal Data on Race and Ethnicity; and'';
       (2) in subsection (c)(4)--
       (A) in subparagraph (B), by striking ``and'' at the end;

[[Page 24642]]

       (B) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(D) The report commissioned by Congress from the 
     Institute of Medicine of the National Academy of Sciences, 
     titled `Unequal Treatment: Confronting Racial and Ethnic 
     Disparities in Health Care'.''; and
       (3) in subsection (d)(2), by inserting ``experts in 
     minority health,'' after ``government agencies,''.
                                 ______
                                 
  SA 2381. Mr. LAUTENBERG submitted an amendment intended to be 
proposed by him to the bill S. 1932, to provide for reconciliation 
pursuant to section 202(a) of the concurrent resolution on the budget 
for fiscal year 2006 (H. Con. Res. 95); which was ordered to lie on the 
table; as follows:

       On page 368, between line 5 and 6, insert the following:

     SEC. 6116. CERTIFICATION PRIOR TO BENEFICIARY ENROLLMENT IN A 
                   PRESCRIPTION DRUG PLAN OR AN MA-PD PLAN THAT 
                   HAS A GAP IN THE COVERAGE OF PRESCRIPTION DRUGS 
                   UNDER PART D.

       (a) In General.--The Secretary shall take appropriate 
     measures to ensure that the process for enrollment 
     established under section 1860D-1(b)(1) of the Social 
     Security Act (42 U.S.C. 1395w-101) includes, in the case of a 
     prescription drug plan or an MA-PD plan that contains an 
     initial coverage limit (as described in section 1860D-2(b)(3) 
     of such Act), a requirement that, prior to enrolling an 
     individual in the plan, the plan must obtain a certification 
     signed by the enrollee or the legal guardian of the enrollee 
     that meets the requirements described in subsection (b) and 
     includes the following text: ``I understand that the Medicare 
     Prescription Drug Plan or MA-PD Plan that I am signing up for 
     may result in a gap in coverage during a given year. I 
     understand that if subject to this gap in coverage, I will be 
     responsible for paying 100 percent of the cost of my 
     prescription drugs and will continue to be responsible for 
     paying the plan's monthly premium while subject to this gap 
     in coverage. For specific information on the potential 
     coverage gap under this plan, I understand that I should 
     contact (insert name of the sponsor of the prescription drug 
     plan or the sponsor of the MA-PD plan) at (insert toll free 
     phone number for such sponsor of such plan).''.
       (b) Certification Requirements Described.--The 
     certification required under subsection (a) shall meet the 
     following requirements:
       (1) The certification shall be printed in a typeface of not 
     less than 18 points.
       (2) The certification shall be printed on a single piece of 
     paper separate from any matter not related to the 
     certification.
       (3) The certification shall have a heading printed at the 
     top of the page in all capital letters and bold face type 
     that states the following: ``WARNING: POTENTIAL MEDICARE 
     PRESCRIPTION DRUG COVERAGE GAP''.
                                 ______
                                 
  SA 2382. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       Beginning on page 123, strike line 1 and all that follows 
     through page 124, line 10, and insert the following:
       (A) January 1, 2009; or
       (B) the date that is 6 months after the close of the first 
     regular session of the State legislature that begins after 
     the date of enactment of this Act.
       (c) Interim Upper Payment Limit.--
       (1) In general.--With respect to a State program under 
     title XIX of the Social Security Act, during the period that 
     begins on January 1, 2006, and ends on the effective date 
     applicable to such State under subsection (b)(3), the 
     Secretary shall--
       (A) apply the Federal upper payment limit established under 
     section 447.332(b) of title 42, Code of Federal Regulations 
     to the State by substituting ``125 percent'' for ``150 
     percent'';
       (B) in the case of covered outpatient drugs under title XIX 
     of such Act that are marketed as of July 1, 2005, and are 
     subject to Federal upper payment limits that apply under 
     section 447.332 of title 42, Code of Federal Regulations, use 
     average wholesale prices, direct prices, and wholesale 
     acquisition costs for such drugs that do not exceed such 
     prices and costs as of such date to determine the Federal 
     upper payment limits that apply under section 447.332 of 
     title 42, Code of Federal Regulations to such drugs during 
     such period; and
       (C) analyze and report to Congress not later than July 1, 
     2008, on the impact of applying the pharmacy reimbursement 
     limits for multiple source drugs under section 1927(e) of the 
     Social Security Act (as amended by subsection (b) and taking 
     into account the amendments made by subsection (a)), 
     particularly with respect to whether such limits are 
     consistent with acquisition costs for rural and urban 
     pharmacies.
       (2) Application to new drugs.--Paragraph (1)(A) shall apply 
     to a covered outpatient drug under title XIX of the Social 
     Security Act that is first marketed after July 1, 2005, but 
     before January 1, 2007, and is subject to the Federal upper 
     payment limit established under section 447.332(b) of title 
     42, Code of Federal Regulations.
       (d) Extension of Prescription Drug Discounts to Enrollees 
     of Medicaid Managed Care Organizations.--
       (1) In general.--Section 1903(m)(2)(A) (42 U.S.C. 
     1396b(m)(2)(A)) is amended--
       (A) in clause (xi), by striking ``and'' at the end;
       (B) in clause (xii), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(xiii) such contract provides that payment for covered 
     outpatient drugs dispensed to individuals eligible for 
     medical assistance who are enrolled with the entity shall be 
     subject to the same rebate agreement entered into under 
     section 1927 as the State is subject to and that the State 
     shall have the option of collecting rebates for the 
     dispensing of such drugs by the entity directly from 
     manufacturers or allowing the entity to collect such rebates 
     from manufacturers in exchange for a reduction in the prepaid 
     payments made to the entity for the enrollment of such 
     individuals.''.
       (2) Conforming amendment.--Section 1927(j)(1) (42 U.S.C. 
     1396r-8(j)91)) is amended by inserting ``other than for 
     purposes of collection of rebates for the dispensing of such 
     drugs in accordance with the provisions of a contract under 
     section 1903(m) that meets the requirements of paragraph 
     (2)(A)(xiii) of that section'' before the period.
       (3) Effective date.--The amendments made by this subsection 
     take effect on the date of enactment of this Act and apply to 
     rebate agreements entered into or renewed under section 1927 
     of the Social Security Act (42 U.S.C. 1396r-8) on or after 
     such date.
                                 ______
                                 
  SA 2383. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       On page 110, after line 24, add the following:
       (4) Exclusion of discounts provided to mail order and 
     nursing facility pharmacies from the determination of average 
     manufacturer price.--
       (A) In general.--Section 1927(k)(1)(B)(ii)(IV) (42 U.S.C. 
     1396r-8(k)(1)(B)(ii)(IV)), as added by paragraph (1)(C), is 
     amended to read as follows:

       ``(IV) Chargebacks, rebates provided to a pharmacy 
     (excluding a mail order pharmacy, a pharmacy at a nursing 
     facility or home, and a pharmacy benefit manager), or any 
     other direct or indirect discounts.''.

       (B) Effective date.--Paragraph (3) shall apply to the 
     amendment made by subparagraph (A).
       (5) Extension of prescription drug discounts to enrollees 
     of medicaid managed care organizations.--
       (A) In general.--Section 1903(m)(2)(A) (42 U.S.C. 
     1396b(m)(2)(A)) is amended--
       (i) in clause (xi), by striking ``and'' at the end;
       (ii) in clause (xii), by striking the period at the end and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(xiii) such contract provides that payment for covered 
     outpatient drugs dispensed to individuals eligible for 
     medical assistance who are enrolled with the entity shall be 
     subject to the same rebate agreement entered into under 
     section 1927 as the State is subject to and that the State 
     shall have the option of collecting rebates for the 
     dispensing of such drugs by the entity directly from 
     manufacturers or allowing the entity to collect such rebates 
     from manufacturers in exchange for a reduction in the prepaid 
     payments made to the entity for the enrollment of such 
     individuals.''.
       (B) Conforming amendment.--Section 1927(j)(1) (42 U.S.C. 
     1396r-8(j)91)) is amended by inserting ``other than for 
     purposes of collection of rebates for the dispensing of such 
     drugs in accordance with the provisions of a contract under 
     section 1903(m) that meets the requirements of paragraph 
     (2)(A)(xiii) of that section'' before the period.
       (C) Effective date.--The amendments made by this paragraph 
     take effect on the date of enactment of this Act and apply to 
     rebate agreements entered into or renewed under section 1927 
     of the Social Security Act (42 U.S.C. 1396r-8) on or after 
     such date.
                                 ______
                                 
  SA 2384. Mr. HARKIN submitted an amendment intended to be proposed by 
him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

[[Page 24643]]



     SEC. __. ASSISTANCE TO COMBAT INFLUENZA AND NEWLY EMERGING 
                   PANDEMICS.

       (a) In General.--Out of any money in the Treasury of the 
     United States not otherwise appropriated, there are 
     appropriated $7,975,000,000 to enable the Secretary of Health 
     and Human Services to carry out the pandemic influenza 
     preparedness activities described in subsection (b).
       (b) Activities.--From amounts appropriated under subsection 
     (a), the Secretary of Health and Human Services shall carry 
     out the following activities:
       (1) To stockpile antivirals and necessary medical supplies 
     relating to pandemic influenza and public health 
     infrastructure.
       (2) To award grants to State and local public health 
     agencies for emergency preparedness activities.
       (3) To provide for risk communication and outreach to the 
     public concerning pandemic influenza.
       (4) To conduct research and improve the laboratory capacity 
     of the Centers for Disease Control and Prevention relating to 
     pandemic influenza.
       (5) To conduct surveillance activities of migratory birds 
     relating to the occurrence of influenza.
       (6) To stockpile influenza vaccines.
       (7) To create expanded domestic capacity for influenza 
     vaccine manufacturing and vaccine-related research.
       (8) To improve global surveillance related to a pandemic 
     influenza.
       (9) To improve hospital preparedness and surge capacity.
       (10) To improve health information technology systems and 
     networks to improve the detection of influenza outbreaks.
                                 ______
                                 
  SA 2385. Mr. SUNUNU submitted an amendment intended to be proposed by 
him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       On page 95, line 12, strike ``2010'' and insert ``2009''.
       On page 95, line 12, after the period insert ``Any amount 
     in the Fund that is not to be transferred under subsection 
     (d) and that has not been obligated under subsection (c) or 
     section 3006 by such date shall be transferred to the general 
     fund of the Treasury.''.
                                 ______
                                 
  SA 2386. Mr. SUNUNU (for himself and Mr. Allen) submitted an 
amendment intended to be proposed by him to the bill S. 1932, to 
provide for reconciliation pursuant to section 202(a) of the concurrent 
resolution on the budget for fiscal year 2006 (H. Con. Res. 95); which 
was ordered to lie on the table; as follows:

       On page 95, line 12, after the period insert ``The 
     Secretary may not obligate any amounts from the Fund until 
     the proceeds of the auction authorized by section 
     309(j)(15)(C)(v) are actually deposited by the Commission 
     pursuant to subsection (b).''.
                                 ______
                                 
  SA 2387. Mr. SUNUNU submitted an amendment intended to be proposed by 
him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       On page 368, between line 5 and 6, insert the following:

     SEC. 6116. ELECTRONIC PRESCRIPTION INCENTIVES.

       Section 1860D-42 (42 U.S.C. 1395w-152) is amended by adding 
     at the end the following new subsection:
       ``(d) Electronic Prescription Incentives.--
       ``(1) Physician payments.--For each electronic prescription 
     written by a physician during the period beginning on January 
     1, 2006, and ending on December 31, 2009, the PDP sponsor of 
     a prescription drug plan shall make a payment of an amount 
     equal to--
       ``(A) $1.00, minus
       ``(B) an amount equal to the percentage of total claims 
     that consist of electronic claims, as determined under 
     subparagraphs (A) and (B) of paragraph (3) (expressed in 
     cents).
       ``(2) Dispensing fee offset reduction.--For each non-
     electronic prescription written by a physician during the 
     period described in paragraph (1), the PDP sponsor of a 
     prescription drug plan shall reduce the dispensing fee 
     established in accordance with section 1860D-4(c)(2)(E) by an 
     amount equal to--
       ``(A) $1.00, minus
       ``(B) an amount equal to the percentage of total claims 
     that consist of non-electronic claims, as determined under 
     subparagraphs (A) and (B) of paragraph (3) (expressed in 
     cents).
       ``(3) Data used.--
       ``(A) Initial estimate.--Subject to the update required 
     under subparagraph (B), in determining the percentage of 
     total claims that consist of electronic claims and the 
     percentage of total claims that consist of non-electronic 
     claims, the Secretary shall use an estimate of the number of 
     electronic claims and non-electronic claims that will be 
     submitted as of January 1, 2006.
       ``(B) Update.--For each 6 month period beginning after 
     January 1, 2006, the Secretary shall update the estimate of 
     the number of electronic claims and non-electronic claims 
     used to determine the percentage of total claims that consist 
     of electronic claims and the percentage of total claims that 
     consist of non-electronic claims.
     To the extent feasible, the Secretary shall use the most 
     recent data available, including real-time data on drug 
     claims submitted under this part, to determine the percentage 
     of total claims that consist of electronic claims and the 
     percentage of total claims that consist of non-electronic 
     claims.
       ``(4) Regulations.--The Secretary shall establish 
     regulations and procedures for carrying out this 
     subsection.''.
                                 ______
                                 
  SA 2388. Mr. SUNUNU (for himself, Mr. Allen, and Mr. DeMint) 
submitted an amendment intended to be proposed by him to the bill S. 
1932, to provide for reconciliation pursuant to section 202(a) of the 
concurrent resolution on the budget for fiscal year 2006 (H. Con. Res. 
95); which was ordered to lie on the table; as follows:

       On page 94, line 4, strike ``shall'' and insert ``may''.
       On page 94, line 7, after ``(1)'' insert ``not to exceed''.
       On page 94, line 13, after ``(2)'' insert ``not to 
     exceed''.
       On page 94, line 19, after ``(3)'' insert ``not to 
     exceed''.
       On page 95, line 1, after ``(4)'' insert ``not to exceed''.
       On page 95, line 4, after ``(5)'' insert ``not to exceed''.
       On page 95, beginning in line 10, strike ``The amounts 
     payable'' and insert ``Any amounts that are to be paid''.
       On page 95, line 12, after the period insert ``Any amount 
     in the Fund that is not obligated under subsection (c) by 
     that date shall be transferred to the general fund of the 
     Treasury.''.
                                 ______
                                 
  SA 2389. Mr. WARNER (for himself, Mr. Lieberman, Mr. Roberts, Mr. 
Durbin, and Mr. Allen) submitted an amendment intended to be proposed 
by him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       On page 369, between lines 15 and 16, insert the following:
       ``(3) Increased progap award for science, mathematics, 
     engineering, and foreign languages students.--
       ``(A) Increased progap award.--Notwithstanding paragraph 
     (1)(A), the Secretary shall increase the maximum and minimum 
     award level for students who are eligible for a grant under 
     this section and who, subject to subparagraph (C), are 
     pursuing a degree with a major in, or a certificate or 
     program of study relating to, engineering, mathematics, 
     science (such as physics, chemistry, or computer science), or 
     a foreign language, described in a list developed or updated 
     under subparagraph (B).
       ``(B) Lists of qualifying degrees, majors, certificates, or 
     programs.--
       ``(i) Engineering, mathematics, or science.--The Secretary, 
     in consultation with the Secretary of Defense, the Secretary 
     of the Department of Homeland Security, and the Director of 
     the National Science Foundation, shall develop, update not 
     less often than once every 2 years, and publish in the 
     Federal Register, a list of engineering, mathematics, and 
     science degrees, majors, certificates, or programs that if 
     pursued by a student, enables the student to receive an 
     increased ProGAP award under subparagraph (A). In developing 
     and updating the list, the Secretaries and Director shall 
     consider the following:

       ``(I) The current engineering, mathematics, and science 
     needs of the United States with respect to national security, 
     homeland security, and economic security.
       ``(II) Whether institutions of higher education in the 
     United States are currently producing enough graduates with 
     degrees to meet the national security, homeland security, and 
     economic security needs of the United States.
       ``(III) The future expected workforce needs of the United 
     States required to help ensure the Nation's national 
     security, homeland security, and economic security.
       ``(IV) Whether institutions of higher education in the 
     United States are expected to produce enough graduates with 
     degrees to meet the future national security, homeland 
     security, and economic security needs of the United States.

       ``(ii) Foreign languages.--The Secretary, in consultation 
     with the Secretary of Defense, the Secretary of the 
     Department of Homeland Security, and the Secretary of State, 
     shall develop, update not less often than once every 2 years, 
     and publish in the Federal Register, a list of foreign 
     language degrees, majors, certificates, or programs

[[Page 24644]]

     that if pursued by a student, enables the student to receive 
     an increased ProGAP award under subparagraph (A). In 
     developing and updating the list the Secretaries shall 
     consider the following:

       ``(I) The foreign language needs of the United States with 
     respect to national security, homeland security, and economic 
     security.
       ``(II) Whether institutions of higher education in the 
     United States are currently producing enough graduates with 
     degrees to meet the national security, homeland security, and 
     economic security needs of the United States.
       ``(III) The future expected workforce needs of the United 
     States required to help ensure the Nation's national 
     security, homeland security, and economic security.
       ``(IV) Whether institutions of higher education in the 
     United States are expected to produce enough graduates with 
     degrees to meet the future national security, homeland 
     security, and economic security needs of the United States.

       ``(C) Continuation of eligibility.--In the case of a 
     student who receives an increased ProGAP award under 
     subparagraph (A) for an academic year and whose degree, 
     major, certificate, or program is subsequently removed from a 
     list described in subparagraph (B), such student shall 
     continue to be eligible for the increased ProGAP award in the 
     subsequent academic years required for completion of such 
     degree, major, certificate, or program.
                                 ______
                                 
  SA 2390. Mr. SMITH (for himself and Mrs. Clinton) submitted an 
amendment intended to be proposed by him to the bill S. 1932, to 
provide for reconciliation pursuant to section 202(a) of the concurrent 
resolution on the budget for fiscal year 2006 (H. Con. Res. 95); which 
was ordered to lie on the table; as follows:

       On page 188, after line 24, add the following:

     SEC. 6037. DEMONSTRATION PROJECT REGARDING MEDICAID COVERAGE 
                   OF LOW-INCOME HIV-INFECTED INDIVIDUALS.

       (a) Requirement To Conduct Demonstration Project.--
       (1) In general.--The Secretary shall establish a 
     demonstration project under which a State may apply under 
     section 1115 of the Social Security Act (42 U.S.C. 1315) to 
     provide medical assistance under a State medicaid program to 
     HIV-infected individuals described in subsection (b) in 
     accordance with the provisions of this section.
       (2) Limitation on number of approved applications.--The 
     Secretary shall only approve as many State applications to 
     provide medical assistance in accordance with this section as 
     will not exceed the limitation on aggregate payments under 
     subsection (d)(2)(A).
       (3) Authority to waive restrictions on payments to 
     territories.--The Secretary shall waive the limitations on 
     payment under subsections (f) and (g) of section 1108 of the 
     Social Security Act (42 U.S.C. 1308) in the case of a State 
     that is subject to such limitations and submits an approved 
     application to provide medical assistance in accordance with 
     this section.
       (b) HIV-Infected Individuals Described.--For purposes of 
     subsection (a), HIV-infected individuals described in this 
     subsection are individuals who are not described in section 
     1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C. 
     1396a(a)(10)(A)(i))--
       (1) who have HIV infection;
       (2) whose income (as determined under the State Medicaid 
     plan with respect to disabled individuals) does not exceed 
     200 percent of the poverty line (as defined in section 
     2110(c)(5) of the Social Security Act (42 U.S.C. 
     1397jj(c)(5)); and
       (3) whose resources (as determined under the State Medicaid 
     plan with respect to disabled individuals) do not exceed the 
     maximum amount of resources a disabled individual described 
     in section 1902(a)(10)(A)(i) of such Act may have and obtain 
     medical assistance under such plan.
       (c) Length of Period for Provision of Medical Assistance.--
     A State shall not be approved to provide medical assistance 
     to an HIV-infected individual in accordance with the 
     demonstration project established under this section for a 
     period of more than 5 consecutive years.
       (d) Limitations on Federal Funding.--
       (1) Appropriation.--
       (A) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, there is appropriated to carry out 
     this section, $450,000,000 for the period of fiscal years 
     2006 through 2010.
       (B) Budget authority.--Subparagraph (A) constitutes budget 
     authority in advance of appropriations Act and represents the 
     obligation of the Federal Government to provide for the 
     payment of the amounts appropriated under that subparagraph.
       (2) Limitation on payments.--In no case may--
       (A) the aggregate amount of payments made by the Secretary 
     to eligible States under this section exceed $450,000,000; or
       (B) payments be provided by the Secretary under this 
     section after September 30, 2010.
       (3) Funds allocated to states.--The Secretary shall 
     allocate funds to States with approved applications under 
     this section based on their applications and the availability 
     of funds.
       (4) Payments to states.--The Secretary shall pay to each 
     State, from its allocation under paragraph (3), an amount 
     each quarter equal to the enhanced Federal medical assistance 
     percentage described in section 2105(b) of the Social 
     Security Act (42 U.S.C. 1397ee(b)) of expenditures in the 
     quarter for medical assistance provided to HIV-infected 
     individuals who are eligible for such assistance under a 
     State Medicaid program in accordance with the demonstration 
     project established under this section.
       (e) Evaluation and Report.--
       (1) Evaluation.--The Secretary shall conduct an evaluation 
     of the demonstration project established under this section. 
     Such evaluation shall include an analysis of the cost-
     effectiveness of the project and the impact of the project on 
     the Medicare, Medicaid, and Supplemental Security Income 
     programs established under titles XVIII, XIX, and XVI, 
     respectively, of the Social Security Act (42 U.S.C. 1395 et 
     seq., 1396 et seq., 1381 et seq.).
       (2) Report to congress.--Not later than December 31, 2010, 
     the Secretary shall submit a report to Congress on the 
     results of the evaluation of the demonstration project 
     established under this section.
       (f) Effective Date.--This section shall take effect on 
     January 1, 2006.

     SEC. 6038. ADDITIONAL INCREASE IN REBATE FOR SINGLE SOURCE 
                   AND INNOVATOR MULTIPLE SOURCE DRUGS.

       Section 1927(c)(1)(B)(i)(VI) (42 U.S.C. 1396r-
     8(c)(1)(B)(i)(VI)), as added by section 6002(a)(3), is 
     amended by striking ``17'' and inserting ``17.8''.
                                 ______
                                 
  SA 2391. Mr. HAGEL (for himself and Mr. Sununu) submitted an 
amendment intended to be proposed by him to the bill S. 1932, to 
provide for reconciliation pursuant to section 202(a) of the concurrent 
resolution on the budget for fiscal year 2006 (H. Con. Res. 95); which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. REGISTRATION OF GSE SECURITIES.

       (a) Fannie Mae.--
       (1) Mortgage-backed securities.--Section 304(d) of the 
     Federal National Mortgage Association Charter Act (12 U.S.C. 
     1719(d)) is amended by striking the fourth sentence and 
     inserting the following: ``Securities issued by the 
     corporation under this subsection shall not be exempt 
     securities for purposes of the Securities Act of 1933.''.
       (2) Subordinate obligations.--Section 304(e) of the Federal 
     National Mortgage Association Charter Act (12 U.S.C. 1719(e)) 
     is amended by striking the fourth sentence and inserting the 
     following: ``Obligations issued by the corporation under this 
     subsection shall not be exempt securities for purposes of the 
     Securities Act of 1933.''.
       (3) Securities.--Section 311 of the Federal National 
     Mortgage Association Charter Act (12 U.S.C. 1723c) is 
     amended--
       (A) in the section heading, by striking ``association'';
       (B) by inserting ``(a) In General.--'' after ``sec. 311.'';
       (C) in the second sentence, by inserting ``by the 
     Association'' after ``issued''; and
       (D) by adding at the end the following:
       ``(b) Treatment of Corporation Securities.--
       ``(1) In general.--Any stock, obligations, securities, 
     participations, or other instruments issued or guaranteed by 
     the corporation pursuant to this title shall not be exempt 
     securities for purposes of the Securities Act of 1933.
       ``(2) Exemption for approved sellers.--Notwithstanding any 
     other provision of this title or the Securities Act of 1933, 
     transactions involving the initial disposition by an approved 
     seller of pooled certificates that are acquired by that 
     seller from the corporation upon the initial issuance of the 
     pooled certificates shall be deemed to be transactions by a 
     person other than an issuer, underwriter, or dealer for 
     purposes of the Securities Act of 1933.
       ``(3) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Approved seller.--The term `approved seller' means an 
     institution approved by the corporation to sell mortgage 
     loans to the corporation in exchange for pooled certificates.
       ``(B) Pooled certificates.--The term `pooled certificates' 
     means single class mortgage-backed securities guaranteed by 
     the corporation that have been issued by the corporation 
     directly to the approved seller in exchange for the mortgage 
     loans underlying such mortgage-backed securities.
       ``(4) Mortgage related securities.--A single class 
     mortgage-backed security guaranteed by the corporation that 
     has been issued by the corporation directly to the approved 
     seller in exchange for the mortgage loans underlying such 
     mortgage-backed securities or directly by the corporation for

[[Page 24645]]

     cash shall be deemed to be a mortgage related security, as 
     defined in section 3(a) of the Securities Exchange Act of 
     1934.''.
       (b) Freddie Mac.--Section 306(g) of the Federal Home Loan 
     Mortgage Corporation Act (12 U.S.C. 1455(g)) is amended to 
     read as follows:
       ``(g) Treatment of Securities.--
       ``(1) In general.--Any securities issued or guaranteed by 
     the Corporation shall not be exempt securities for purposes 
     of the Securities Act of 1933.
       ``(2) Exemption for approved sellers.--Notwithstanding any 
     other provision of this title or the Securities Act of 1933, 
     transactions involving the initial disposition by an approved 
     seller of pooled certificates that are acquired by that 
     seller from the Corporation upon the initial issuance of the 
     pooled certificates shall be deemed to be transactions by a 
     person other than an issuer, underwriter, or dealer for 
     purposes of the Securities Act of 1933.
       ``(3) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Approved seller.--The term `approved seller' means an 
     institution approved by the Corporation to sell mortgage 
     loans to the Corporation in exchange for pooled certificates.
       ``(B) Pooled certificates.--The term `pooled certificates' 
     means single class mortgage-backed securities guaranteed by 
     the Corporation that have been issued by the Corporation 
     directly to the approved seller in exchange for the mortgage 
     loans underlying such mortgage-backed securities.''.
       (c) No Effect on Other Law.--Nothing in this section or the 
     amendments made by this section shall be construed to affect 
     any exemption from the provisions of the Trust Indenture Act 
     of 1939 provided to the Federal National Mortgage Association 
     or the Federal Home Loan Mortgage Corporation.
       (d) Regulations.--The Securities and Exchange Commission 
     may issue such regulations as may be necessary or appropriate 
     to carry out this section and the amendments made by this 
     section.
       (e) Effective Date.--The amendments made by this section 
     shall become effective 1 year after the date of enactment of 
     this Act.
                                 ______
                                 
  SA 2392. Mr. GREGG proposed an amendment to the bill S. 1932, to 
provide for reconciliation pursuant to section 202(a) of the concurrent 
resolution on the budget for fiscal year 2006 (H. Con. Res. 95); as 
follows:

       On page 41 of the bill, strike lines 3 through 11.
                                 ______
                                 
  SA 2393. Mr. LAUTENBERG submitted an amendment intended to be 
proposed by him to the bill S. 1932, to provide for reconciliation 
pursuant to section 202(a) of the concurrent resolution on the budget 
for fiscal year 2006 (H. Con. Res. 95); which was ordered to lie on the 
table; as follows:

       On page 1, lines 4 and 5, strike ``Deficit Reduction 
     Omnibus Reconciliation Act of 2005'' and insert ``Moral 
     Disaster of Monumental Proportion Reconciliation Act''.
                                 ______
                                 
  SA 2394. Mr. BINGAMAN submitted an amendment intended to be proposed 
by him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       On page 256, between lines 21 and 22, insert the following:

                      CHAPTER 7--ADDITONAL REFORMS

     SEC. 6081. ENSURING FAIR TREATMENT OF MEDICAID SERVICES 
                   FURNISHED TO INDIANS.

       (a) Application of 100 Percent FMAP for Services Furnished 
     to an Indian by an Urban Indian Health Program.--
       (1) In general.--The third sentence of section 1905(b) (42 
     U.S.C. 1396d(b)) is amended by inserting before the period at 
     the end the following: ``, or through an urban Indian health 
     program receiving funds under title V of the Indian Health 
     Care Improvement Act''.
       (2) Conforming amendment.--Section 1911(c) (42 U.S.C. 
     1396j(c)) is amended by inserting before the period the 
     following: ``, or through an urban Indian health program 
     receiving funds under title V of the Indian Health Care 
     Improvement Act''.
       (b) Prohibition on Imposition of Premiums, Deductibles, 
     Copayments, and Other Cost-Sharing on Indians.--Section 1916 
     (42 U.S.C. 1396o) is amended--
       (1) in subsection (a)(3), by inserting ``(other than such 
     individuals who are Indians (as defined in section 4 of the 
     Indian Health Care Improvement Act)'' after ``other such 
     individuals'';
       (2) in subsection (b), in the matter preceding paragraph 
     (1), by inserting ``or who are Indians (as defined in section 
     4 of the Indian Health Care Improvement Act)'' after 
     ``section 1902(a)(10)''; and
       (3) in subsection (c)(1), by inserting ``(other than such 
     an individual who is an Indian (as defined in section 4 of 
     the Indian Health Care Improvement Act))'' after ``section 
     1902(l)(1)''.
       (c) Prohibition on Recovery Against Estates of Indians.--
     Section 1917(b)(1) (42 U.S.C. 1396p(b)(1)) is amended, in the 
     matter preceding subparagraph (A), by inserting `` who is not 
     an Indian (as defined in section 4 of the Indian Health Care 
     Improvement Act)'' after ``an individual'' the second place 
     it appears.
       (d) Requirement for Consultation With Indian Tribes Prior 
     to Approval of Section 1115 Waivers.--Section 1115 (42 U.S.C. 
     1315) is amended by adding at the end the following:
       ``(g) In the case of an application for a waiver of 
     compliance with the requirements of section 1902 (or a 
     renewal or extension of such a waiver) that is likely to 
     affect members of an Indian tribe (as defined in section 4 of 
     the Indian Health Care Improvement Act) or a tribal health 
     program (whether operated by an Indian tribe or a tribal 
     organization (as so defined) serving such members, the 
     Secretary shall, prior to granting such a waiver under 
     subsection (a) or renewing or extending such a waiver under 
     subsection (e), consult with each such Indian tribe.''.
       (e) Effective Date.--Except as provided in section 6026(e), 
     the amendments made by this section shall apply to items or 
     services furnished on or after October 1, 2006.

     SEC. 6082. INCREASED AFFORDABILITY OF INPATIENT DRUGS FOR 
                   MEDICAID AND SAFETY NET HOSPITALS.

       (a) Extension of Discounts to Inpatient Drugs.--
       (1) In general.--Section 340B(b) of the Public Health 
     Service Act (42 U.S.C. 256b(b)) is amended by inserting 
     before the period the following: ``, except that, 
     notwithstanding the limiting definition set forth in section 
     1927(k)(3) of the Social Security Act, the terms `covered 
     outpatient drug' and `covered drug' include any inpatient or 
     outpatient drug purchased by a hospital described in 
     subsection (a)(4)(L)''.
       (2) Payment of medicaid rebates on inpatient drugs.--
     Section 340B(c) of such Act (42 U.S.C. 256b(c)) is amended to 
     read as follows:
       ``(c) Payment of Medicaid Rebates on Inpatient Drugs.--
       ``(1) In general.--For the cost reporting period covered by 
     the most recently filed Medicare cost report, a hospital 
     described in subsection (a)(4)(L) shall provide to each State 
     with an approved State plan under title XIX of such Act--
       ``(A) a rebate on the estimated annual costs of single 
     source and innovator multiple source drugs provided to 
     Medicaid recipients for inpatient use; and
       ``(B) a rebate on the estimated annual costs of 
     noninnovator multiple source drugs provided to Medicaid 
     recipients for inpatient use.
       ``(2) Calculations of rebates.--
       ``(A) Single source and innovator multiple source drugs.--
     For purposes of paragraph (1)(A)--
       ``(i) the rebate under such paragraph shall be calculated 
     by multiplying the estimated annual costs of single source 
     and innovator multiple source drugs provided to Medicaid 
     recipients for inpatient use by the minimum rebate percentage 
     described in section 1927(c)(1)(B) of the Social Security 
     Act;
       ``(ii) the estimated annual costs of single source drugs 
     and innovator multiple source drugs provided to Medicaid 
     recipients for inpatient use under clause (i) shall be equal 
     to the product of--

       ``(I) the hospital's actual acquisition costs of all drugs 
     purchased during the cost reporting period for inpatient use;
       ``(II) the Medicaid inpatient drug charges as reported on 
     the hospital's most recently filed Medicare cost report 
     divided by total inpatient drug charges reported on the cost 
     report; and
       ``(III) the percent of the hospital's annual inpatient drug 
     costs described in subclause (I) arising out of the purchase 
     of single source and innovator multiple source drugs; and

       ``(iii) the terms `single source drug' and `innovator 
     multiple source drug' have the meanings given such terms in 
     section 1927(k)(7) of the Social Security Act.
       ``(B) Noninnovator multiple source drugs.--For purposes of 
     subparagraph (1) (B)--
       ``(i) the rebate under such paragraph shall be calculated 
     by multiplying the estimated annual costs of noninnovator 
     multiple source drugs provided to Medicaid recipients for 
     inpatient use by the applicable percentage as defined in 
     section 1927(c)(3)(B) of the Social Security Act;
       ``(ii) the estimated annual costs of noninnovator multiple 
     source drugs provided to Medicaid recipients for inpatient 
     use shall be equal to the product of--

       ``(I) the hospital's actual acquisition cost of all drugs 
     purchased during the cost reporting period for inpatient use;
       ``(II) the Medicaid inpatient drug charges as reported on 
     the hospital's most recently filed Medicare cost report 
     divided by total inpatient drug charges reported on the cost 
     report; and
       ``(III) the percent of the hospital's annual inpatient drug 
     costs described in subclause (I) arising out of the purchase 
     of noninnovator multiple source drugs; and

       ``(iii) the term `noninnovator multiple source drug' has 
     the meaning given such term in section 1927(k)(7) of the 
     Social Security Act.
       ``(3) Payment deadline.--The rebates provided by a hospital 
     under paragraph (1) shall

[[Page 24646]]

     be paid within 90 days of the filing of the hospital's most 
     recently filed Medicare cost report.
       ``(4) Offset against medical assistance.--Amounts received 
     by a State under this subsection in any quarter shall be 
     considered to be a reduction in the amount expended under the 
     State plan in the quarter for medical assistance for purposes 
     of section 1903(a)(1) of the Social Security Act.''.
       (3) Clarification that group purchasing prohibition for 
     certain hospitals is not applicable to inpatient drugs.--
     Section 340B(a)(4)(L)(iii) of such Act (42 U.S.C. 
     256b(a)(4)(L)(iii)) is amended by inserting ``(not including 
     such drugs purchased for inpatient use)'' after ``covered 
     outpatient drugs''.
       (b) Providing Access to Discounted Drug Prices for Critical 
     Access Hospitals.--
       (1) In general.--Section 340B of the Public Health Service 
     Act (42 U.S.C. 256b) is amended--
       (A) in subsection (a)(4), by adding at the end the 
     following:
       ``(M) An entity that--
       ``(i) is a critical access hospital (as determined under 
     section 1820(c)(2) of the Social Security Act); and
       ``(ii) does not obtain covered outpatient drugs though a 
     group purchasing organization or other group purchasing 
     arrangement (not including such drugs purchased for inpatient 
     use).'';
       (B) in subsection (b), as amended by section 2(a), by 
     inserting ``or subsection (a)(4)(M)'' after ``subsection 
     (a)(4)(L)''; and
       (C) in subsection (c)(1), as added by inserting ``or 
     subsection (a)(4)(M)'' after ``subsection (a)(4)(L)''.
       (2) Exclusion from medicaid best price calculations.--
     Section 1927(c)(1)(C)(i)(I) (42 U.S.C. 1396r-
     8(c)(1)(C)(i)(I)) is amended by inserting ``and to critical 
     access hospitals described in section 340B(a)(4)(M) of such 
     Act'' after ``Public Health Service Act''.
       (3) Effective date.--The amendments made by this section 
     shall apply to drugs purchased on or after January 1, 2006.
       (c) Allowing Qualifying Children's Hospitals To Participate 
     in the 340B Drug Discount Program.--
       (1) In general.--Section 340B(a)(4)(L) of the Public Health 
     Service Act (42 U.S.C. 256b(a)(4)(L)) is amended--
       (A) by inserting after ``A subsection (d) hospital (as 
     defined in section 1886(d)(1)(B) of the Social Security 
     Act)'' the following: ``or a children's hospital described in 
     section 1886(d)(1)(B)(iii) of such Act''; and
       (B) in clause (ii), by inserting ``or, in the case of such 
     a children's hospital, as would be determined under such 
     section if the hospital were such a subsection (d) hospital'' 
     after ``section 1886(d)(5)(F) of the Social Security Act''.
       (2) Effective date.--The amendments made by subsection (a) 
     shall apply to drugs purchased on or after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 2395. Mr. BINGAMAN submitted an amendment intended to be proposed 
by him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       On page 368, between lines 5 and 6, insert the following:

     SEC. 6116. MINIMUM UPDATE FOR PHYSICIANS' SERVICES FOR 2007.

       (a) Minimum Update for 2007.--
       (1) In general.--Section 1848(d) (42 U.S.C. 1395w-4(d)), as 
     amended by section 6105, is amended by adding at the end the 
     following new paragraph:
       ``(8) Update for 2007.--The update to the single conversion 
     factor established in paragraph (1)(C) for 2007 shall be not 
     less than 2.5 percent.''.
       (2) Conforming amendment.--Section 1848(d)(4)(B) (42 U.S.C. 
     1395w-4(d)(4)(B)), as amended by section 6105, is amended, in 
     the matter preceding clause (i), by striking ``and (7)'' and 
     inserting ``, (7), and (8)''.
       (3) Not treated as change in law and regulation in 
     sustainable growth rate determination.--The amendments made 
     by this subsection shall not be treated as a change in law 
     for purposes of applying section 1848(f)(2)(D) of the Social 
     Security Act (42 U.S.C. 1395w-4(f)(2)(D)).
       (b) Offsets.--
       (1) Carve-out of the indirect costs of medical education 
     and disproportionate share payments from the adjusted average 
     per capita cost for purposes of calculating the annual 
     medicare advantage capitation rate.--Section 1853(c)(1)(D)(i) 
     (42 U.S.C. 1395w-23(c)(1)(D)(i)) is amended by inserting 
     ``and (beginning with 2007) subparagraphs (B) and (F) of 
     section 1886(d)(5)'' before the period at the end.
       (2) Elimination of add-on payment under phase-out of risk 
     adjustment budget neutrality under medicare advantage 
     program.--Section 1853(k), as added by section 6111(a) of 
     this Act, is amended--
       (A) in paragraph (1), in the matter preceding subparagraph 
     (A), by striking ``subject to paragraph (2),'';
       (B) by striking paragraph (2);
       (C) by redesignating paragraph (3) as paragraph (2); and
       (D) in paragraph (2)(A), as so redesignated, by striking 
     ``Except for the adjustment provided for in paragraph (2), 
     the'' and inserting ``The''.
                                 ______
                                 
  SA 2396. Mr. REED (for himself, Mr. Dodd, and Mr. Corzine) submitted 
an amendment intended to be proposed by him to the bill S. 1932, to 
provide for reconciliation pursuant to section 202(a) of the concurrent 
resolution on the budget for fiscal year 2006 (H. Con. Res. 95); which 
was ordered to lie on the table; as follows:

       On page 86, strike line 22 and all that follows through 
     page 90, line 19.
                                 ______
                                 
  SA 2397. Mr. SUNUNU submitted an amendment intended to be proposed by 
him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       Beginning on page 175, strike line 23 and all that follows 
     through page 181, line 4, and insert the following:
       (a) Emergency Health Care Relief for Evacuees of Hurricane 
     Katrina.--
       (1) Definitions.--In this subsection:
       (A) Affected state.--The term ``affected State'' means 
     Louisiana, Alabama, or Mississippi.
       (B) Disaster parishes and counties.--The term ``Disaster 
     parishes and counties'' means a parish in the State of 
     Louisiana, or a county in the State of Mississippi or 
     Alabama, for which a major disaster has been declared in 
     accordance with section 401 of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) 
     as a result of Hurricane Katrina and which the President has 
     determined, before September 14, 2005, warrants individual 
     and public assistance from the Federal Government under such 
     Act.
       (C) Evacuees of hurricane katrina.--The term ``Evacuees of 
     Hurricane Katrina'' means individuals who had a primary 
     residence in a Disaster parish or county for the 30-day 
     period immediately prior to August 24, 2005.
       (D) State medicaid plan.--The term ``State Medicaid plan'' 
     means a State plan for medical assistance under title XIX of 
     the Social Security Act (42 U.S.C. 1396 et seq.), including 
     any medical assistance provided under a waiver of such plan.
       (2) Authority to adjust federal matching payments for 
     affected states.--
       (A) Adjustment related to affected states.--Notwithstanding 
     section 1905(b) of the Social Security Act (42 U.S.C. 
     1396d(b)), during the period beginning on August 24, 2005, 
     and ending on June 30, 2006, the Secretary may increase the 
     Federal matching percentage otherwise applicable to an 
     affected State under section 1903(a) of such Act (42 U.S.C. 
     1396b(a)) in order for such State to fund medical assistance 
     consisting of medically necessary health care services and 
     supplies, and associated administrative costs, for Evacuees 
     of Hurricane Katrina present in the State who are determined 
     eligible for temporary Medicaid eligibility status under a 
     Hurricane Katrina Multistate demonstration waiver approved by 
     the Secretary under section 1115 of the Social Security Act 
     (42 U.S.C. 1315).
       (B) Adjustments for affected state for obligations for care 
     provided to evacuees of hurricane katrina by other states.--
     Notwithstanding section 1905(b) of the Social Security Act 
     (42 U.S.C. 1396d(b)), during the period beginning on August 
     24, 2005, and ending on June 30, 2006, if any affected State 
     incurs an obligation for the State share of medical 
     assistance for medically necessary services or supplies, and 
     associated administrative costs, provided for Evacuees of 
     Hurricane Katrina who are determined eligible for temporary 
     Medicaid eligibility status under a Hurricane Katrina 
     Multistate demonstration waiver approved under section 1115 
     of such Act for the affected State or another State, the 
     Secretary may increase the Federal matching percentage 
     otherwise applicable under section 1903(a) of such Act (42 
     U.S.C. 1396b(a)) to relieve such affected State from such 
     obligation.
       (3) Uncompensated care pools.--In the case of States with 
     approved Hurricane Katrina Multistate demonstration waivers 
     under section 1115 of the Social Security Act (42 U.S.C. 
     1315) that fund uncompensated health care, and associated 
     administrative costs for Evacuees of Hurricane Katrina, the 
     Secretary may provide reimbursement to such States for costs 
     incurred during the period beginning on August 24, 2005, and 
     ending on January 31, 2006, for--
       (A) the cost of medically necessary health care services or 
     supplies, and associated administrative costs provided for 
     such Evacuees--
       (i) who do not have health insurance coverage; or
       (ii) who have been determined eligible for temporary 
     Medicaid eligibility status under such a waiver but who 
     receive medically necessary services or supplies that are not 
     covered by the State Medicaid plan of the State in which such 
     determination has been made; and

[[Page 24647]]

       (B) monthly premium payments made directly to private 
     health insurers on behalf of such Evacuees that have private 
     health insurance coverage but are in need of financial 
     assistance for the payment of such premiums.
       (4) Community health center grants.--
       (A) In general.--The Secretary may provide grants to 
     existing health centers (within the meaning of section 
     330(a)(1) of the Public Health Service Act (42 U.S.C. 
     254b(a)(1)) located in Alabama, Arkansas, Georgia, Louisiana, 
     Mississippi, and Texas for health care services provided to 
     Evacuees of Hurricane Katrina.
       (B) Preference.--In awarding grants under this paragraph, 
     the Secretary shall give preference to health centers that 
     are located in Disaster Parishes and Counties or which are 
     serving a high percentage of Evacuees of Hurricane Katrina, 
     as determined by the Secretary.
       (5) Funding.--
       (A) In general.--Not later than 10 days after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall transfer from amounts provided to the Department of 
     Homeland Security under the Second Emergency Supplemental 
     Appropriations Act to Meet Immediate Needs Arising from the 
     Consequences of Hurricane Katrina, 2005 (Public Law 109-62, 
     119 Stat 1990, 1991) and designated ``Disaster Relief'' to 
     the Secretary of Health and Human Services--
       (i) the amount the Secretary of Health and Human Services 
     determines is necessary for the purpose of carrying out 
     paragraph (2); and
       (ii) an amount, not to exceed $800,000,000, the Secretary 
     of Health and Human Services determines is necessary for the 
     purpose of carrying out paragraphs (3) and (4).
       (B) Availability of funds.--Funds provided under 
     subparagraph (A)(ii) for purposes of carrying out paragraphs 
     (3) and (4) shall remain available for use by the Secretary 
     until October 1, 2006, after which time, the unexpended 
     balance, if any, shall revert to the Federal Treasury.
       (b) FMAP Adjustment.--Notwithstanding the first
                                 ______
                                 
  SA 2398. Mr. BINGAMAN submitted an amendment intended to be proposed 
by him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       On page 188, after line 24, add the following:

     SEC. 6037. LIMITATION ON SEVERE REDUCTION IN THE MEDICAID 
                   FMAP FOR FISCAL YEAR 2006.

       (a) Limitation on Reduction.--
       (1) In general.--In no case shall the FMAP for a State for 
     fiscal year 2006 be less than the greater of the following:
       (A) 2005 fmap decreased by the applicable percentage 
     points.--The FMAP determined for the State for fiscal year 
     2005, decreased by--
       (i) 0.1 percentage points in the case of Delaware and 
     Michigan;
       (ii) 0.3 percentage points in the case of Kentucky; and
       (iii) 0.5 percentage points in the case of any other State.
       (B) Computation without retroactive application of 
     rebenchmarked per capita income.--The FMAP that would have 
     been determined for the State for fiscal year 2006 if the per 
     capita incomes for 2001 and 2002 that was used to determine 
     the FMAP for the State for fiscal year 2005 were used.
       (2) Scope of Application.--The FMAP applicable to a State 
     for fiscal year 2006 after the application of paragraph (1) 
     shall apply only for purposes of titles XIX and XXI of the 
     Social Security Act (including for purposes of making 
     disproportionate share hospital payments described in section 
     1923 of such Act (42 U.S.C. 1396r-4) and payments under such 
     titles that are based on the enhanced FMAP described in 
     section 2105(b) of such Act (42 U.S.C. 1397ee(b))) and shall 
     not apply with respect to payments under title IV of such Act 
     (42 U.S.C. 601 et seq.).
       (3) Definitions.--In this subsection:
       (A) FMAP.--The term ``FMAP'' means the Federal medical 
     assistance percentage, as defined in section 1905(b) of the 
     Social Security Act (42 U.S.C. 1396d(b)).
       (B) State.--The term ``State'' has the meaning given such 
     term for purposes of title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.).
       (4) Repeal.--Effective as of October 1, 2006, this 
     subsection is repealed and shall not apply to any fiscal year 
     after fiscal year 2006.
       (b) Decrease in Add-On Payment Under Phase-Out of Risk 
     Adjustment Budget Neutrality Uunder Medicare Advantage 
     Program.--Subparagraph (C) of section 1853(k)(2), as added by 
     section 6111(a) of this Act, is amended to read as follows:
       ``(C) Applicable percent.--For purposes of subparagraph 
     (A)(ii), the term `applicable percent' means--
       ``(i) for 2007, 55 percent;
       ``(ii) for 2008, 25 percent;
       ``(iii) for 2009, 15 percent; and
       ``(iv) for 2010, 0 percent.''.
                                 ______
                                 
  SA 2399. Mr. BINGAMAN submitted an amendment intended to be proposed 
by him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       On page 181, strike lines 4 through 15 and insert the 
     following:
       (c) FMAP Adjustment.--Notwithstanding the first sentence of 
     section 1905(b) of the Social Security Act (42 U.S.C. 
     1396d(b)), if, for purposes of titles XIX and XXI of the 
     Social Security Act (42 U.S.C. 1396 et seq., 1397aa et seq.), 
     the Federal medical assistance percentage determined for a 
     State for fiscal year 2006 is less than the Federal medical 
     assistance percentage determined for the State for fiscal 
     year 2005, the Federal medical assistance percentage 
     determined for the State for fiscal year 2005 shall be 
     substituted for the Federal medical assistance percentage 
     otherwise determined for the State for fiscal year 2006.
       (d) Decrease in Add-On Payment Under Phase-Out of Risk 
     Adjustment Budget Neutrality under Medicare Advantage 
     Program.--Subparagraph (C) of section 1853(k)(2), as added by 
     section 6111(a) of this Act, is amended to read as follows:
       ``(C) Applicable percent.--For purposes of subparagraph 
     (A)(ii), the term `applicable percent' means--
       ``(i) for 2007, 55 percent;
       ``(ii) for 2008, 15 percent;
       ``(iii) for 2009, 0 percent; and
       ``(iv) for 2010, 0 percent.''.
                                 ______
                                 
  SA 2400. Ms. CANTWELL submitted an amendment intended to be proposed 
by her to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       On page 101, strike lines 12 through 19 and insert the 
     following:
       (d) Receipts.--
       (1) In general.--Notwithstanding any other provision of 
     law, of the amount of adjusted bonus, rental, and royalty 
     receipts derived from oil and gas leasing and operations 
     authorized under this section--
       (A) 50 percent shall be paid to the State of Alaska; and
       (B) the balance shall be deposited into the Treasury as 
     miscellaneous receipts.
       (2) Judicial review.--
       (A) In general.--Any civil action brought by the State of 
     Alaska to compel an increase in the percentage of revenues to 
     be paid under paragraph (1) shall be filed not later than 90 
     days after the date of enactment of this Act.
       (B) Limitation.--
       (i) In general.--If a civil action is filed by the State of 
     Alaska under subparagraph (A), until such time as a final 
     nonappealable order is issued with respect to the civil 
     action and notwithstanding any other provision of law--

       (I) production of oil and gas from the Arctic National 
     Wildlife Refuge is prohibited;
       (II) no action shall be taken to establish or implement the 
     competitive oil and gas leasing program authorized under this 
     title; and
       (III) no leasing or other development leading to the 
     production of oil or gas from the Arctic National Wildlife 
     Refuge shall be undertaken.

       (ii) Final order.--If the court issues a final 
     nonappealable order with respect to a civil action filed 
     under subparagraph (A) that increases the percentage of 
     revenues to be paid to the State of Alaska--

       (I) production of oil and gas from the Arctic National 
     Wildlife Refuge is prohibited; and
       (II) no leasing or other development leading to the 
     production of oil or gas from the Arctic National Wildlife 
     Refuge shall be undertaken.

                                 ______
                                 
  SA 2401. Mr. KENNEDY submitted an amendment intended to be proposed 
by him to the bill S. 1932, to provide for reconciliation pursuant to 
section 202(a) of the concurrent resolution on the budget for fiscal 
year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as 
follows:

       On page 741, strike lines 1 and 2 and insert the following:
       (5) in paragraph (7), as redesignated by paragraph (1), by 
     striking ``Act; and'' and inserting ``Act, and means a 
     nonprofit private educational institution in the Middle East 
     that meets the provisions of paragraphs (1), (3), (4), and 
     (5) of section 101(a) as of the date of enactment of the 
     Higher Education Amendments of 2005;'';

                          ____________________