[Congressional Record (Bound Edition), Volume 152 (2006), Part 18]
[House]
[Pages 23132-23199]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 TAX RELIEF AND HEALTH CARE ACT OF 2006

  Mr. THOMAS. Mr. Speaker, pursuant to House Resolution 1099, I call up 
from the Speaker's table the bill (H.R. 6111) to amend the Internal 
Revenue Code of 1986 to provide that the Tax Court may review claims 
for equitable innocent spouse relief and to suspend the running on the 
period of limitations while such claims are pending, with a Senate 
amendment thereto, and ask for its immediate consideration in the 
House.
  The Clerk read the title of the bill.
  The text of the Senate amendment is as follows:

       Senate amendment
       On page 3, line 17, strike ``on or''.


                      Motion Offered by Mr. Thomas

  Mr. THOMAS. Mr. Speaker, pursuant to House Resolution 1099, I offer a 
motion.
  The SPEAKER pro tempore. The Clerk will designate the motion.
  The text of the motion is as follows:

       Motion offered by Mr. Thomas:
       Mr. Thomas moves to concur in the Senate amendment with an 
     amendment.

  The text of the House amendment to the Senate amendment is as 
follows:

       House amendment to Senate amendment:
       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE, ETC.

       (a) Short Title.--This Act may be cited as the ``Tax Relief 
     and Health Care Act of 2006''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title, etc.

 DIVISION A--EXTENSION AND EXPANSION OF CERTAIN TAX RELIEF PROVISIONS, 
                        AND OTHER TAX PROVISIONS

Sec. 100. Reference.

       TITLE I--EXTENSION AND MODIFICATION OF CERTAIN PROVISIONS

Sec. 101. Deduction for qualified tuition and related expenses.
Sec. 102. Extension and modification of new markets tax credit.
Sec. 103. Election to deduct State and local general sales taxes.
Sec. 104. Extension and modification of research credit.
Sec. 105. Work opportunity tax credit and welfare-to-work credit.
Sec. 106. Election to include combat pay as earned income for purposes 
              of earned income credit.
Sec. 107. Extension and modification of qualified zone academy bonds.
Sec. 108. Above-the-line deduction for certain expenses of elementary 
              and secondary school teachers.
Sec. 109. Extension and expansion of expensing of brownfields 
              remediation costs.
Sec. 110. Tax incentives for investment in the District of Columbia.
Sec. 111. Indian employment tax credit.
Sec. 112. Accelerated depreciation for business property on Indian 
              reservations.
Sec. 113. Fifteen-year straight-line cost recovery for qualified 
              leasehold improvements and qualified restaurant property.
Sec. 114. Cover over of tax on distilled spirits.
Sec. 115. Parity in application of certain limits to mental health 
              benefits.
Sec. 116. Corporate donations of scientific property used for research 
              and of computer technology and equipment.
Sec. 117. Availability of medical savings accounts.
Sec. 118. Taxable income limit on percentage depletion for oil and 
              natural gas produced from marginal properties.
Sec. 119. American Samoa economic development credit.
Sec. 120. Extension of bonus depreciation for certain qualified Gulf 
              Opportunity Zone property.
Sec. 121. Authority for undercover operations.
Sec. 122. Disclosures of certain tax return information.
Sec. 123. Special rule for elections under expired provisions.

                    TITLE II--ENERGY TAX PROVISIONS

Sec. 201. Credit for electricity produced from certain renewable 
              resources.
Sec. 202. Credit to holders of clean renewable energy bonds.
Sec. 203. Performance standards for sulfur dioxide removal in advanced 
              coal-based generation technology units designed to use 
              subbituminous coal.
Sec. 204. Deduction for energy efficient commercial buildings.
Sec. 205. Credit for new energy efficient homes.
Sec. 206. Credit for residential energy efficient property.
Sec. 207. Energy credit.
Sec. 208. Special rule for qualified methanol or ethanol fuel.
Sec. 209. Special depreciation allowance for cellulosic biomass ethanol 
              plant property.
Sec. 210. Expenditures permitted from the Leaking Underground Storage 
              Tank Trust Fund.
Sec. 211. Treatment of coke and coke gas.

                   TITLE III--HEALTH SAVINGS ACCOUNTS

Sec. 301. Short title.
Sec. 302. FSA and HRA terminations to fund HSAs.
Sec. 303. Repeal of annual deductible limitation on HSA contributions.
Sec. 304. Modification of cost-of-living adjustment.
Sec. 305. Contribution limitation not reduced for part-year coverage.
Sec. 306. Exception to requirement for employers to make comparable 
              health savings account contributions.
Sec. 307. One-time distribution from individual retirement plans to 
              fund HSAs.

                       TITLE IV--OTHER PROVISIONS

Sec. 401. Deduction allowable with respect to income attributable to 
              domestic production activities in Puerto Rico.
Sec. 402. Credit for prior year minimum tax liability made refundable 
              after period of years.
Sec. 403. Returns required in connection with certain options.
Sec. 404. Partial expensing for advanced mine safety equipment.
Sec. 405. Mine rescue team training tax credit.
Sec. 406. Whistleblower reforms.
Sec. 407. Frivolous tax submissions.
Sec. 408. Addition of meningococcal and human papillomavirus vaccines 
              to list of taxable vaccines.
Sec. 409. Clarification of taxation of certain settlement funds made 
              permanent.
Sec. 410. Modification of active business definition under section 355 
              made permanent.
Sec. 411. Revision of State veterans limit made permanent.
Sec. 412. Capital gains treatment for certain self-created musical 
              works made permanent.
Sec. 413. Reduction in minimum vessel tonnage which qualifies for 
              tonnage tax made permanent.
Sec. 414. Modification of special arbitrage rule for certain funds made 
              permanent.
Sec. 415. Great Lakes domestic shipping to not disqualify vessel from 
              tonnage tax.
Sec. 416. Use of qualified mortgage bonds to finance residences for 
              veterans without regard to first-time homebuyer 
              requirement.
Sec. 417. Exclusion of gain from sale of a principal residence by 
              certain employees of the intelligence community.
Sec. 418. Sale of property by judicial officers.
Sec. 419. Premiums for mortgage insurance.
Sec. 420. Modification of refunds for kerosene used in aviation.
Sec. 421. Regional income tax agencies treated as States for purposes 
              of confidentiality and disclosure requirements.
Sec. 422. Designation of wines by semi-generic names.
Sec. 423. Modification of railroad track maintenance credit.
Sec. 424. Modification of excise tax on unrelated business taxable 
              income of charitable remainder trusts.
Sec. 425. Loans to qualified continuing care facilities made permanent.
Sec. 426. Technical corrections.

            DIVISION B--MEDICARE AND OTHER HEALTH PROVISIONS

Sec. 1. Short title of division.

        TITLE I--MEDICARE IMPROVED QUALITY AND PROVIDER PAYMENTS

Sec. 101. Physician payment and quality improvement.
Sec. 102. Extension of floor on Medicare work geographic adjustment.

[[Page 23133]]

Sec. 103. Update to the composite rate component of the basic case-mix 
              adjusted prospective payment system for dialysis 
              services.
Sec. 104. Extension of treatment of certain physician pathology 
              services under Medicare.
Sec. 105. Extension of Medicare reasonable costs payments for certain 
              clinical diagnostic laboratory tests furnished to 
              hospital patients in certain rural areas.
Sec. 106. Hospital Medicare reports and clarifications.
Sec. 107. Payment for brachytherapy.
Sec. 108. Payment process under the competitive acquisition program 
              (CAP).
Sec. 109. Quality reporting for hospital outpatient services and 
              ambulatory surgical center services.
Sec. 110. Reporting of anemia quality indicators for Medicare part B 
              cancer anti-anemia drugs.
Sec. 111. Clarification of hospice satellite designation.

               TITLE II--MEDICARE BENEFICIARY PROTECTIONS

Sec. 201. Extension of exceptions process for Medicare therapy caps.
Sec. 202. Payment for administration of part D vaccines.
Sec. 203. OIG study of never events.
Sec. 204. Medicare medical home demonstration project.
Sec. 205. Medicare DRA technical corrections.
Sec. 206. Limited continuous open enrollment of original medicare fee-
              for-service enrollees into Medicare Advantage non-
              prescription drug plans.

             TITLE III--MEDICARE PROGRAM INTEGRITY EFFORTS

Sec. 301. Offsetting adjustment in Medicare Advantage Stabilization 
              Fund.
Sec. 302. Extension and expansion of recovery audit contractor program 
              under the Medicare Integrity Program.
Sec. 303. Funding for the Health Care Fraud and Abuse Control Account.
Sec. 304. Implementation funding.

             TITLE IV--MEDICAID AND OTHER HEALTH PROVISIONS

Sec. 401.  Extension of Transitional Medical Assistance (TMA) and 
              abstinence education program.
Sec. 402. Grants for research on vaccine against Valley Fever.
Sec. 403. Change in threshold for Medicaid indirect hold harmless 
              provision of broad-based health care taxes.
Sec. 404. DSH allotments for fiscal year 2007 for Tennessee and Hawaii.
Sec. 405. Certain Medicaid DRA technical corrections.

                      DIVISION C--OTHER PROVISIONS

                TITLE I--GULF OF MEXICO ENERGY SECURITY

Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Offshore oil and gas leasing in 181 Area and 181 south Area 
              of Gulf of Mexico.
Sec. 104. Moratorium on oil and gas leasing in certain areas of Gulf of 
              Mexico.
Sec. 105. Disposition of qualified outer Continental Shelf revenues 
              from 181 Area, 181 south Area, and 2002-2007 planning 
              areas of Gulf of Mexico.

TITLE II--SURFACE MINING CONTROL AND RECLAMATION ACT AMENDMENTS OF 2006

Sec. 200. Short title.

               Subtitle A--Mining Control and Reclamation

Sec. 201. Abandoned Mine Reclamation Fund and purposes.
Sec. 202. Reclamation fee.
Sec. 203. Objectives of Fund.
Sec. 204. Reclamation of rural land.
Sec. 205. Liens.
Sec. 206. Certification.
Sec. 207. Remining incentives.
Sec. 208. Extension of limitation on application of prohibition on 
              issuance of permit.
Sec. 209. Tribal regulation of surface coal mining and reclamation 
              operations.

          Subtitle B--Coal Industry Retiree Health Benefit Act

Sec. 211. Certain related persons and successors in interest relieved 
              of liability if premiums prepaid.
Sec. 212. Transfers to funds; premium relief.
Sec. 213. Other provisions.

 TITLE III--WHITE PINE COUNTY CONSERVATION, RECREATION, AND DEVELOPMENT

Sec. 301. Authorization of appropriations.
Sec. 302. Short title.
Sec. 303. Definitions.

                       Subtitle A--Land Disposal

Sec. 311. Conveyance of White Pine County, Nevada, land.
Sec. 312. Disposition of proceeds.

                      Subtitle B--Wilderness Areas

Sec. 321. Short title.
Sec. 322. Findings.
Sec. 323. Additions to National Wilderness Preservation System.
Sec. 324. Administration.
Sec. 325. Adjacent management.
Sec. 326. Military overflights.
Sec. 327. Native American cultural and religious uses.
Sec. 328. Release of wilderness study areas.
Sec. 329. Wildlife management.
Sec. 330. Wildfire, insect, and disease management.
Sec. 331. Climatological data collection.

          Subtitle C--Transfers of Administrative Jurisdiction

Sec. 341. Transfer to the United States Fish and Wildlife Service.
Sec. 342. Transfer to the Bureau of Land Management.
Sec. 343. Transfer to the Forest Service.
Sec. 344. Availability of map and legal descriptions.

                     Subtitle D--Public Conveyances

Sec. 351. Conveyance to the State of Nevada.
Sec. 352. Conveyance to White Pine County, Nevada.

           Subtitle E--Silver State Off-Highway Vehicle Trail

Sec. 355. Silver State off-highway vehicle trail.

 Subtitle F--Transfer of Land to Be Held in Trust for the Ely Shoshone 
                                 Tribe.

Sec. 361. Transfer of land to be held in trust for the Ely Shoshone 
              Tribe.

       Subtitle G--Eastern Nevada Landscape Restoration Project.

Sec. 371. Findings; purposes.
Sec. 372. Definitions.
Sec. 373. Restoration project.

 Subtitle H--Amendments to the Southern Nevada Public Land Management 
                              Act of 1998

Sec. 381. Findings.
Sec. 382. Availability of special account.

Subtitle I--Amendments to the Lincoln County Conservation, Recreation, 
                      and Development Act of 2004

Sec. 391. Disposition of proceeds.

                Subtitle J--All American Canal Projects

Sec. 395. All American Canal Lining Project.
Sec. 396. Regulated storage water facility.
Sec. 397. Application of law.

                       TITLE IV--OTHER PROVISIONS

Sec. 401. Tobacco personal use quantity exception to not apply to 
              delivery sales.
Sec. 402. Ethanol Tariff Schedule.
Sec. 403. Withdrawal of certain Federal land and interests in certain 
              Federal land from location, entry, and patent under the 
              mining laws and disposition under the mineral and 
              geothermal leasing laws.
Sec. 404. Continuing eligibility for certain students under District of 
              Columbia School Choice Program.
Sec. 405. Study on Establishing Uniform National Database on Elder 
              Abuse.
Sec. 406. Temporary duty reductions for certain cotton shirting fabric.
Sec. 407. Cotton Trust Fund.
Sec. 408. Tax court review of requests for equitable relief from joint 
              and several liability.

 DIVISION A--EXTENSION AND EXPANSION OF CERTAIN TAX RELIEF PROVISIONS, 
                        AND OTHER TAX PROVISIONS

     SEC. 100. REFERENCE.

       Except as otherwise expressly provided, whenever in this 
     division an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Internal Revenue Code of 1986.

       TITLE I--EXTENSION AND MODIFICATION OF CERTAIN PROVISIONS

     SEC. 101. DEDUCTION FOR QUALIFIED TUITION AND RELATED 
                   EXPENSES.

       (a) In General.--Section 222(e) is amended by striking 
     ``2005''and inserting ``2007''.
       (b) Conforming Amendments.--Section 222(b)(2)(B) is 
     amended--
       (1) by striking ``a taxable year beginning in 2004 or 
     2005'' and inserting ``any taxable year beginning after 
     2003'', and
       (2) by striking ``2004 and 2005'' in the heading and 
     inserting ``After 2003''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 102. EXTENSION AND MODIFICATION OF NEW MARKETS TAX 
                   CREDIT.

       (a) Extension.--Section 45D(f)(1)(D) is amended by striking 
     ``and 2007'' and inserting ``, 2007, and 2008''.
       (b) Regulations Regarding Non-Metropolitan Counties.--
     Section 45D(i) is amended by striking ``and'' at the end of 
     paragraph (4), by striking the period at the end of paragraph 
     (5) and inserting ``, and'', and by adding at the end the 
     following new paragraph:
       ``(6) which ensure that non-metropolitan counties receive a 
     proportional allocation of qualified equity investments.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 103. ELECTION TO DEDUCT STATE AND LOCAL GENERAL SALES 
                   TAXES.

       (a) In General.--Section 164(b)(5)(I) is amended by 
     striking ``2006'' and inserting ``2008''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

[[Page 23134]]



     SEC. 104. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

       (a) Extension.--
       (1) In general.--Section 41(h)(1)(B) is amended by striking 
     ``2005'' and inserting ``2007''.
       (2) Conforming amendment.--Section 45C(b)(1)(D) is amended 
     by striking ``2005'' and inserting ``2007''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to amounts paid or incurred after December 31, 
     2005.
       (b) Increase in Rates of Alternative Incremental Credit.--
       (1) In general.--Subparagraph (A) of section 41(c)(4) 
     (relating to election of alternative incremental credit) is 
     amended--
       (A) by striking ``2.65 percent'' and inserting ``3 
     percent'',
       (B) by striking ``3.2 percent'' and inserting ``4 
     percent'', and
       (C) by striking ``3.75 percent'' and inserting ``5 
     percent''.
       (2) Effective date.--Except as provided in paragraph (3), 
     the amendments made by this subsection shall apply to taxable 
     years ending after December 31, 2006.
       (3) Transition rule.--
       (A) In general.--In the case of a specified transitional 
     taxable year for which an election under section 41(c)(4) of 
     the Internal Revenue Code of 1986 applies, the credit 
     determined under section 41(a)(1) of such Code shall be equal 
     to the sum of--
       (i) the applicable 2006 percentage multiplied by the amount 
     determined under section 41(c)(4)(A) of such Code (as in 
     effect for taxable years ending on December 31, 2006), plus
       (ii) the applicable 2007 percentage multiplied by the 
     amount determined under section 41(c)(4)(A) of such Code (as 
     in effect for taxable years ending on January 1, 2007).
       (B) Definitions.--For purposes of subparagraph (A)--
       (i) Specified transitional taxable year.--The term 
     ``specified transitional taxable year'' means any taxable 
     year which ends after December 31, 2006, and which includes 
     such date.
       (ii) Applicable 2006 percentage.--The term ``applicable 
     2006 percentage'' means the number of days in the specified 
     transitional taxable year before January 1, 2007, divided by 
     the number of days in such taxable year.
       (iii) Applicable 2007 percentage.--The term ``applicable 
     2007 percentage'' means the number of days in the specified 
     transitional taxable year after December 31, 2006, divided by 
     the number of days in such taxable year.
       (c) Alternative Simplified Credit for Qualified Research 
     Expenses.--
       (1) In general.--Subsection (c) of section 41 (relating to 
     base amount) is amended by redesignating paragraphs (5) and 
     (6) as paragraphs (6) and (7), respectively, and by inserting 
     after paragraph (4) the following new paragraph:
       ``(5) Election of alternative simplified credit.--
       ``(A) In general.--At the election of the taxpayer, the 
     credit determined under subsection (a)(1) shall be equal to 
     12 percent of so much of the qualified research expenses for 
     the taxable year as exceeds 50 percent of the average 
     qualified research expenses for the 3 taxable years preceding 
     the taxable year for which the credit is being determined.
       ``(B) Special rule in case of no qualified research 
     expenses in any of 3 preceding taxable years.--
       ``(i) Taxpayers to which subparagraph applies.--The credit 
     under this paragraph shall be determined under this 
     subparagraph if the taxpayer has no qualified research 
     expenses in any one of the 3 taxable years preceding the 
     taxable year for which the credit is being determined.
       ``(ii) Credit rate.--The credit determined under this 
     subparagraph shall be equal to 6 percent of the qualified 
     research expenses for the taxable year.
       ``(C) Election.--An election under this paragraph shall 
     apply to the taxable year for which made and all succeeding 
     taxable years unless revoked with the consent of the 
     Secretary. An election under this paragraph may not be made 
     for any taxable year to which an election under paragraph (4) 
     applies.''.
       (2) Transition rule for deemed revocation of election of 
     alternative incremental credit.--In the case of an election 
     under section 41(c)(4) of the Internal Revenue Code of 1986 
     which applies to the taxable year which includes January 1, 
     2007, such election shall be treated as revoked with the 
     consent of the Secretary of the Treasury if the taxpayer 
     makes an election under section 41(c)(5) of such Code (as 
     added by this subsection) for such year.
       (3) Effective date.--Except as provided in paragraph (4), 
     the amendments made by this subsection shall apply to taxable 
     years ending after December 31, 2006.
       (4) Transition rule for noncalendar taxable years.--
       (A) In general.--In the case of a specified transitional 
     taxable year for which an election under section 41(c)(5) of 
     the Internal Revenue Code of 1986 (as added by this 
     subsection) applies, the credit determined under section 
     41(a)(1) of such Code shall be equal to the sum of--
       (i) the applicable 2006 percentage multiplied by the amount 
     determined under section 41(a)(1) of such Code (as in effect 
     for taxable years ending on December 31, 2006), plus
       (ii) the applicable 2007 percentage multiplied by the 
     amount determined under section 41(c)(5) of such Code (as in 
     effect for taxable years ending on January 1, 2007).
       (B) Definitions and special rules.--For purposes of 
     subparagraph (A)--
       (i) Definitions.--Terms used in this paragraph which are 
     also used in subsection (b)(3) shall have the respective 
     meanings given such terms in such subsection.
       (ii) Dual elections permitted.--Elections under paragraphs 
     (4) and (5) of section 41(c) of such Code may both apply for 
     the specified transitional taxable year.
       (iii) Deferral of deemed election revocation.--Any election 
     under section 41(c)(4) of the Internal Revenue Code of 1986 
     treated as revoked under paragraph (2) shall be treated as 
     revoked for the taxable year after the specified transitional 
     taxable year.

     SEC. 105. WORK OPPORTUNITY TAX CREDIT AND WELFARE-TO-WORK 
                   CREDIT.

       (a) In General.--Sections 51(c)(4)(B) and 51A(f) are each 
     amended by striking ``2005'' and inserting ``2007''.
       (b) Eligibility of Ex-Felons Determined Without Regard to 
     Family Income.--Paragraph (4) of section 51(d) is amended by 
     adding ``and'' at the end of subparagraph (A), by striking 
     ``, and'' at the end of subparagraph (B) and inserting a 
     period, and by striking all that follows subparagraph (B).
       (c) Increase in Maximum Age for Eligibility of Food Stamp 
     Recipients.--Clause (i) of section 51(d)(8)(A) is amended by 
     striking ``25'' and inserting ``40''.
       (d) Extension of Paperwork Filing Deadline.--Section 
     51(d)(12)(A)(ii)(II) is amended by striking ``21st day'' and 
     inserting ``28th day''.
       (e) Consolidation of Work Opportunity Credit With Welfare-
     to-Work Credit.--
       (1) In general.--Paragraph (1) of section 51(d) is amended 
     by striking ``or'' at the end of subparagraph (G), by 
     striking the period at the end of subparagraph (H) and 
     inserting ``, or'', and by adding at the end the following 
     new subparagraph:
       ``(I) a long-term family assistance recipient.''.
       (2) Long-term family assistance recipient.--Subsection (d) 
     of section 51 is amended by redesignating paragraphs (10) 
     through (12) as paragraphs (11) through (13), respectively, 
     and by inserting after paragraph (9) the following new 
     paragraph:
       ``(10) Long-term family assistance recipient.--The term 
     `long-term family assistance recipient' means any individual 
     who is certified by the designated local agency--
       ``(A) as being a member of a family receiving assistance 
     under a IV-A program (as defined in paragraph (2)(B)) for at 
     least the 18-month period ending on the hiring date,
       ``(B)(i) as being a member of a family receiving such 
     assistance for 18 months beginning after August 5, 1997, and
       ``(ii) as having a hiring date which is not more than 2 
     years after the end of the earliest such 18-month period, or
       ``(C)(i) as being a member of a family which ceased to be 
     eligible for such assistance by reason of any limitation 
     imposed by Federal or State law on the maximum period such 
     assistance is payable to a family, and
       ``(ii) as having a hiring date which is not more than 2 
     years after the date of such cessation.''.
       (3) Increased credit for employment of long-term family 
     assistance recipients.--Section 51 is amended by inserting 
     after subsection (d) the following new subsection:
       ``(e) Credit for Second-Year Wages for Employment of Long-
     Term Family Assistance Recipients.--
       ``(1) In general.--With respect to the employment of a 
     long-term family assistance recipient--
       ``(A) the amount of the work opportunity credit determined 
     under this section for the taxable year shall include 50 
     percent of the qualified second-year wages for such year, and
       ``(B) in lieu of applying subsection (b)(3), the amount of 
     the qualified first-year wages, and the amount of qualified 
     second-year wages, which may be taken into account with 
     respect to such a recipient shall not exceed $10,000 per 
     year.
       ``(2) Qualified second-year wages.--For purposes of this 
     subsection, the term `qualified second-year wages' means 
     qualified wages--
       ``(A) which are paid to a long-term family assistance 
     recipient, and
       ``(B) which are attributable to service rendered during the 
     1-year period beginning on the day after the last day of the 
     1-year period with respect to such recipient determined under 
     subsection (b)(2).
       ``(3) Special rules for agricultural and railway labor.--If 
     such recipient is an employee to whom subparagraph (A) or (B) 
     of subsection (h)(1) applies, rules similar to the rules of 
     such subparagraphs shall apply except that--
       ``(A) such subparagraph (A) shall be applied by 
     substituting `$10,000' for `$6,000', and
       ``(B) such subparagraph (B) shall be applied by 
     substituting `$833.33' for `$500'.''.
       (4) Repeal of separate welfare-to-work credit.--
       (A) In general.--Section 51A is hereby repealed.

[[Page 23135]]

       (B) Clerical amendment.--The table of sections for subpart 
     F of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 51A.
       (f) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to individuals 
     who begin work for the employer after December 31, 2005.
       (2) Consolidation.--The amendments made by subsections (b), 
     (c), (d), and (e) shall apply to individuals who begin work 
     for the employer after December 31, 2006.

     SEC. 106. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR 
                   PURPOSES OF EARNED INCOME CREDIT.

       (a) In General.--Section 32(c)(2)(B)(vi)(II) is amended by 
     striking ``2007'' and inserting ``2008''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 107. EXTENSION AND MODIFICATION OF QUALIFIED ZONE 
                   ACADEMY BONDS.

       (a) In General.--Paragraph (1) of section 1397E(e) is 
     amended by striking ``and 2005'' and inserting ``2005, 2006, 
     and 2007''.
       (b) Special Rules Relating to Expenditures, Arbitrage, and 
     Reporting.--
       (1) In general.--Section 1397E is amended--
       (A) in subsection (d)(1), by striking ``and'' at the end of 
     subparagraph (C)(iii), by striking the period at the end of 
     subparagraph (D) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(E) the issue meets the requirements of subsections (f), 
     (g), and (h).'', and
       (B) by redesignating subsections (f), (g), (h), and (i) as 
     subsection (i), (j), (k), and (l), respectively, and by 
     inserting after subsection (e) the following new subsections:
       ``(f) Special Rules Relating to Expenditures.--
       ``(1) In general.--An issue shall be treated as meeting the 
     requirements of this subsection if, as of the date of 
     issuance, the issuer reasonably expects--
       ``(A) at least 95 percent of the proceeds from the sale of 
     the issue are to be spent for 1 or more qualified purposes 
     with respect to qualified zone academies within the 5-year 
     period beginning on the date of issuance of the qualified 
     zone academy bond,
       ``(B) a binding commitment with a third party to spend at 
     least 10 percent of the proceeds from the sale of the issue 
     will be incurred within the 6-month period beginning on the 
     date of issuance of the qualified zone academy bond, and
       ``(C) such purposes will be completed with due diligence 
     and the proceeds from the sale of the issue will be spent 
     with due diligence.
       ``(2) Extension of period.--Upon submission of a request 
     prior to the expiration of the period described in paragraph 
     (1)(A), the Secretary may extend such period if the issuer 
     establishes that the failure to satisfy the 5-year 
     requirement is due to reasonable cause and the related 
     purposes will continue to proceed with due diligence.
       ``(3) Failure to spend required amount of bond proceeds 
     within 5 years.--To the extent that less than 95 percent of 
     the proceeds of such issue are expended by the close of the 
     5-year period beginning on the date of issuance (or if an 
     extension has been obtained under paragraph (2), by the close 
     of the extended period), the issuer shall redeem all of the 
     nonqualified bonds within 90 days after the end of such 
     period. For purposes of this paragraph, the amount of the 
     nonqualified bonds required to be redeemed shall be 
     determined in the same manner as under section 142.
       ``(g) Special Rules Relating to Arbitrage.--An issue shall 
     be treated as meeting the requirements of this subsection if 
     the issuer satisfies the arbitrage requirements of section 
     148 with respect to proceeds of the issue.
       ``(h) Reporting.--Issuers of qualified academy zone bonds 
     shall submit reports similar to the reports required under 
     section 149(e).''.
       (2) Conforming amendments.--Sections 54(l)(3)(B) and 
     1400N(l)(7)(B)(ii) are each amended by striking ``section 
     1397E(i)'' and inserting ``section 1397E(l)''.
       (c) Effective Dates.--
       (1) Extension.--The amendment made by subsection (a) shall 
     apply to obligations issued after December 31, 2005.
       (2) Special rules.--The amendments made by subsection (b) 
     shall apply to obligations issued after the date of the 
     enactment of this Act pursuant to allocations of the national 
     zone academy bond limitation for calendar years after 2005.

     SEC. 108. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EXPENSES OF 
                   ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

       (a) In General.--Subparagraph (D) of section 62(a)(2) is 
     amended by striking ``or 2005'' and inserting ``2005, 2006, 
     or 2007''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 109. EXTENSION AND EXPANSION OF EXPENSING OF BROWNFIELDS 
                   REMEDIATION COSTS.

       (a) Extension.--Subsection (h) of section 198 is amended by 
     striking ``2005'' and inserting ``2007''.
       (b) Expansion.--Section 198(d)(1) (defining hazardous 
     substance) is amended by striking ``and'' at the end of 
     subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(C) any petroleum product (as defined in section 
     4612(a)(3)).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to expenditures paid or incurred after December 
     31, 2005.

     SEC. 110. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF 
                   COLUMBIA.

       (a) Designation of Zone.--
       (1) In general.--Subsection (f) of section 1400 is amended 
     by striking ``2005'' both places it appears and inserting 
     ``2007''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to periods beginning after December 31, 2005.
       (b) Tax-Exempt Economic Development Bonds.--
       (1) In general.--Subsection (b) of section 1400A is amended 
     by striking ``2005'' and inserting ``2007''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to bonds issued after December 31, 2005.
       (c) Zero Percent Capital Gains Rate.--
       (1) In general.--Subsection (b) of section 1400B is amended 
     by striking ``2006'' each place it appears and inserting 
     ``2008''.
       (2) Conforming amendments.--
       (A) Section 1400B(e)(2) is amended--
       (i) by striking ``2010'' and inserting ``2012'', and
       (ii) by striking ``2010'' in the heading thereof and 
     inserting ``2012''.
       (B) Section 1400B(g)(2) is amended by striking ``2010'' and 
     inserting ``2012''.
       (C) Section 1400F(d) is amended by striking ``2010'' and 
     inserting ``2012''.
       (3) Effective dates.--
       (A) Extension.--The amendments made by paragraph (1) shall 
     apply to acquisitions after December 31, 2005.
       (B) Conforming amendments.--The amendments made by 
     paragraph (2) shall take effect on the date of the enactment 
     of this Act.
       (d) First-Time Homebuyer Credit.--
       (1) In general.--Subsection (i) of section 1400C is amended 
     by striking ``2006'' and inserting ``2008''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to property purchased after December 31, 2005.

     SEC. 111. INDIAN EMPLOYMENT TAX CREDIT.

       (a) In General.--Section 45A(f) is amended by striking 
     ``2005'' and inserting ``2007''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 112. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON 
                   INDIAN RESERVATIONS.

       (a) In General.--Section 168(j)(8) is amended by striking 
     ``2005'' and inserting ``2007''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2005.

     SEC. 113. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY FOR 
                   QUALIFIED LEASEHOLD IMPROVEMENTS AND QUALIFIED 
                   RESTAURANT PROPERTY.

       (a) In General.--Clauses (iv) and (v) of section 
     168(e)(3)(E) are each amended by striking ``2006'' and 
     inserting ``2008''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to property placed in service after December 31, 
     2005.

     SEC. 114. COVER OVER OF TAX ON DISTILLED SPIRITS.

       (a) In General.--Section 7652(f)(1) is amended by striking 
     ``2006'' and inserting ``2008''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to articles brought into the United States after 
     December 31, 2005.

     SEC. 115. PARITY IN APPLICATION OF CERTAIN LIMITS TO MENTAL 
                   HEALTH BENEFITS.

       (a) Amendment to the Internal Revenue Code of 1986.--
     Section 9812(f)(3) is amended by striking ``2006'' and 
     inserting ``2007''.
       (b) Amendment to the Employee Retirement Income Security 
     Act of 1974.--Section 712(f) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1185a(f)) is amended 
     by striking ``2006'' and inserting ``2007''.
       (c) Amendment to the Public Health Service Act.--Section 
     2705(f) of the Public Health Service Act (42 U.S.C. 300gg-
     5(f)) is amended by striking ``2006''and inserting ``2007''.

     SEC. 116. CORPORATE DONATIONS OF SCIENTIFIC PROPERTY USED FOR 
                   RESEARCH AND OF COMPUTER TECHNOLOGY AND 
                   EQUIPMENT.

       (a) Extension of Computer Technology and Equipment 
     Donation.--
       (1) In general.--Section 170(e)(6)(G) is amended by 
     striking ``2005'' and inserting ``2007''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2005.
       (b) Expansion of Charitable Contribution Allowed for 
     Scientific Property Used for Research and for Computer 
     Technology and Equipment Used for Educational Purposes.--

[[Page 23136]]

       (1) Scientific property used for research.--
       (A) In general.--Clause (ii) of section 170(e)(4)(B) 
     (defining qualified research contributions) is amended by 
     inserting ``or assembled'' after ``constructed''.
       (B) Conforming amendment.--Clause (iii) of section 
     170(e)(4)(B) is amended by inserting ``or assembly'' after 
     ``construction''.
       (2) Computer technology and equipment for educational 
     purposes.--
       (A) In general.--Clause (ii) of section 170(e)(6)(B) is 
     amended by inserting ``or assembled'' after ``constructed'' 
     and ``or assembling'' after ``construction''.
       (B) Conforming amendment.--Subparagraph (D) of section 
     170(e)(6) is amended by inserting ``or assembled'' after 
     ``constructed'' and ``or assembly'' after ``construction''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 117. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.

       (a) In General.--Paragraphs (2) and (3)(B) of section 
     220(i) are each amended by striking ``2005'' each place it 
     appears in the text and headings and inserting ``2007''.
       (b) Conforming Amendments.--
       (1) Paragraph (2) of section 220(j) is amended--
       (A) in the text by striking ``or 2004'' each place it 
     appears and inserting ``2004, 2005, or 2006'', and
       (B) in the heading by striking ``or 2004'' and inserting 
     ``2004, 2005, or 2006'' .
       (2) Subparagraph (A) of section 220(j)(4) is amended by 
     striking ``and 2004'' and inserting ``2004, 2005, and 2006''.
       (c) Time for Filing Reports, etc.--
       (1) The report required by section 220(j)(4) of the 
     Internal Revenue Code of 1986 to be made on August 1, 2005, 
     or August 1, 2006, as the case may be, shall be treated as 
     timely if made before the close of the 90-day period 
     beginning on the date of the enactment of this Act.
       (2) The determination and publication required by section 
     220(j)(5) of such Code with respect to calendar year 2005 or 
     calendar year 2006, as the case may be, shall be treated as 
     timely if made before the close of the 120-day period 
     beginning on the date of the enactment of this Act. If the 
     determination under the preceding sentence is that 2005 or 
     2006 is a cut-off year under section 220(i) of such Code, the 
     cut-off date under such section 220(i) shall be the last day 
     of such 120-day period.

     SEC. 118. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR 
                   OIL AND NATURAL GAS PRODUCED FROM MARGINAL 
                   PROPERTIES.

       (a) In General.--Section 613A(c)(6)(H) is amended by 
     striking ``2006'' and inserting ``2008''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 119. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

       (a) In General.--For purposes of section 30A of the 
     Internal Revenue Code of 1986, a domestic corporation shall 
     be treated as a qualified domestic corporation to which such 
     section applies if such corporation--
       (1) is an existing credit claimant with respect to American 
     Samoa, and
       (2) elected the application of section 936 of the Internal 
     Revenue Code of 1986 for its last taxable year beginning 
     before January 1, 2006.
       (b) Special Rules for Application of Section.--The 
     following rules shall apply in applying section 30A of the 
     Internal Revenue Code of 1986 for purposes of this section:
       (1) Amount of credit.--Notwithstanding section 30A(a)(1) of 
     such Code, the amount of the credit determined under section 
     30A(a)(1) of such Code for any taxable year shall be the 
     amount determined under section 30A(d) of such Code, except 
     that section 30A(d) shall be applied without regard to 
     paragraph (3) thereof.
       (2) Separate application.--In applying section 30A(a)(3) of 
     such Code in the case of a corporation treated as a qualified 
     domestic corporation by reason of this section, section 30A 
     of such Code (and so much of section 936 of such Code as 
     relates to such section 30A) shall be applied separately with 
     respect to American Samoa.
       (3) Foreign tax credit allowed.--Notwithstanding section 
     30A(e) of such Code, the provisions of section 936(c) of such 
     Code shall not apply with respect to the credit allowed by 
     reason of this section.
       (c) Definitions.--For purposes of this section, any term 
     which is used in this section which is also used in section 
     30A or 936 of such Code shall have the same meaning given 
     such term by such section 30A or 936.
       (d) Application of Section.--Notwithstanding section 30A(h) 
     or section 936(j) of such Code, this section (and so much of 
     section 30A and section 936 of such Code as relates to this 
     section) shall apply to the first two taxable years of a 
     corporation to which subsection (a) applies which begin after 
     December 31, 2005, and before January 1, 2008.

     SEC. 120. EXTENSION OF BONUS DEPRECIATION FOR CERTAIN 
                   QUALIFIED GULF OPPORTUNITY ZONE PROPERTY.

       (a) In General.--Subsection (d) of section 1400N is amended 
     by adding at the end the following new paragraph:
       ``(6) Extension for certain property.--
       ``(A) In general.--In the case of any specified Gulf 
     Opportunity Zone extension property, paragraph (2)(A) shall 
     be applied without regard to clause (v) thereof.
       ``(B) Specified gulf opportunity zone extension property.--
     For purposes of this paragraph, the term `specified Gulf 
     Opportunity Zone extension property' means property--
       ``(i) substantially all of the use of which is in one or 
     more specified portions of the GO Zone, and
       ``(ii) which is--

       ``(I) nonresidential real property or residential rental 
     property which is placed in service by the taxpayer on or 
     before December 31, 2010, or
       ``(II) in the case of a taxpayer who places a building 
     described in subclause (I) in service on or before December 
     31, 2010, property described in section 168(k)(2)(A)(i) if 
     substantially all of the use of such property is in such 
     building and such property is placed in service by the 
     taxpayer not later than 90 days after such building is placed 
     in service.

       ``(C) Specified portions of the go zone.--For purposes of 
     this paragraph, the term `specified portions of the GO Zone' 
     means those portions of the GO Zone which are in any county 
     or parish which is identified by the Secretary as being a 
     county or parish in which hurricanes occurring during 2005 
     damaged (in the aggregate) more than 60 percent of the 
     housing units in such county or parish which were occupied 
     (determined according to the 2000 Census).
       ``(D) Only pre-january 1, 2010, basis of real property 
     eligible for additional allowance.--In the case of property 
     which is qualified Gulf Opportunity Zone property solely by 
     reason of subparagraph (B)(ii)(I), paragraph (1) shall apply 
     only to the extent of the adjusted basis thereof attributable 
     to manufacture, construction, or production before January 1, 
     2010.''.
       (b) Extension Not Applicable to Increased Section 179 
     Expensing.--Paragraph (2) of section 1400N(e) is amended by 
     inserting ``without regard to subsection (d)(6)'' after 
     ``subsection (d)(2)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 101 of the Gulf 
     Opportunity Zone Act of 2005.

     SEC. 121. AUTHORITY FOR UNDERCOVER OPERATIONS.

       Paragraph (6) of section 7608(c) (relating to application 
     of section) is amended by striking ``2007'' both places it 
     appears and inserting ``2008''.

     SEC. 122. DISCLOSURES OF CERTAIN TAX RETURN INFORMATION.

       (a) Disclosures to Facilitate Combined Employment Tax 
     Reporting.--
       (1) In general.--Subparagraph (B) of section 6103(d)(5) 
     (relating to termination) is amended by striking ``2006'' and 
     inserting ``2007''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to disclosures after December 31, 2006.
       (b) Disclosures Relating to Terrorist Activities.--
       (1) In general.--Clause (iv) of section 6103(i)(3)(C) and 
     subparagraph (E) of section 6103(i)(7) are each amended by 
     striking ``2006'' and inserting ``2007''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall apply to disclosures after December 31, 2006.
       (c) Disclosures Relating to Student Loans.--
       (1) In general.--Subparagraph (D) of section 6103(l)(13) 
     (relating to termination) is amended by striking ``2006'' and 
     inserting ``2007''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to requests made after December 31, 2006.

     SEC. 123. SPECIAL RULE FOR ELECTIONS UNDER EXPIRED 
                   PROVISIONS.

       (a) Research Credit Elections.--In the case of any taxable 
     year ending after December 31, 2005, and before the date of 
     the enactment of this Act, any election under section 
     41(c)(4) or section 280C(c)(3)(C) of the Internal Revenue 
     Code of 1986 shall be treated as having been timely made for 
     such taxable year if such election is made not later than the 
     later of April 15, 2007, or such time as the Secretary of the 
     Treasury, or his designee, may specify. Such election shall 
     be made in the manner prescribed by such Secretary or 
     designee.
       (b) Other Elections.--Except as otherwise provided by such 
     Secretary or designee, a rule similar to the rule of 
     subsection (a) shall apply with respect to elections under 
     any other expired provision of the Internal Revenue Code of 
     1986 the applicability of which is extended by reason of the 
     amendments made by this title.

                    TITLE II--ENERGY TAX PROVISIONS

     SEC. 201. CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN 
                   RENEWABLE RESOURCES.

       Subsection (d) of section 45 is amended by striking 
     ``January 1, 2008'' each place it appears and inserting 
     ``January 1, 2009''.

     SEC. 202. CREDIT TO HOLDERS OF CLEAN RENEWABLE ENERGY BONDS.

       (a) In General.--Section 54 is amended--
       (1) by striking ``$800,000,000'' in subsection (f)(1) and 
     inserting ``$1,200,000,000'',
       (2) by striking ``$500,000,000'' in subsection (f)(2) and 
     inserting ``$750,000,000'', and

[[Page 23137]]

       (3) by striking ``December 31, 2007'' in subsection (m) and 
     inserting ``December 31, 2008''.
       (b) Effective Dates.--
       (1) In general.--The amendments made by paragraphs (1) and 
     (3) of subsection (a) shall apply to bonds issued after 
     December 31, 2006.
       (2) Allocations.--The amendment made by subsection (a)(2) 
     shall apply to allocations or reallocations after December 
     31, 2006.

     SEC. 203. PERFORMANCE STANDARDS FOR SULFUR DIOXIDE REMOVAL IN 
                   ADVANCED COAL-BASED GENERATION TECHNOLOGY UNITS 
                   DESIGNED TO USE SUBBITUMINOUS COAL.

       (a) In General.--Paragraph (1) of section 48A(f) (relating 
     to advanced coal-based generation technology) is amended by 
     adding at the end the following new flush sentence:
     ``For purposes of the performance requirement specified for 
     the removal of SO2 in the table contained in 
     subparagraph (B), the SO2 removal design level in 
     the case of a unit designed for the use of feedstock 
     substantially all of which is subbituminous coal shall be 99 
     percent SO2 removal or the achievement of an 
     emission level of 0.04 pounds or less of SO2 per 
     million Btu, determined on a 30-day average.''.
       (b) Effective Date.--The amendment made by this section 
     shall take apply with respect to applications for 
     certification under section 48A(d)(2) of the Internal Revenue 
     Code of 1986 submitted after October 2, 2006.

     SEC. 204. DEDUCTION FOR ENERGY EFFICIENT COMMERCIAL 
                   BUILDINGS.

       Subsection (h) of section 179D is amended by striking 
     ``December 31, 2007'' and inserting ``December 31, 2008''.

     SEC. 205. CREDIT FOR NEW ENERGY EFFICIENT HOMES.

       Subsection (g) of section 45L is amended by striking 
     ``December 31, 2007'' and inserting ``December 31, 2008''.

     SEC. 206. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

       (a) Extension.--Subsection (g) of section 25D is amended by 
     striking ``December 31, 2007'' and inserting ``December 31, 
     2008''.
       (b) Clarification of Term.--
       (1) Subsections (a)(1), (b)(1)(A), and (e)(4)(A)(i) of 
     section 25D are each amended by striking ``qualified 
     photovoltaic property expenditures'' and inserting 
     ``qualified solar electric property expenditures''.
       (2) Section 25D(d)(2) is amended--
       (A) by striking ``qualified photovoltaic property 
     expenditure'' and inserting ``qualified solar electric 
     property expenditure'', and
       (B) in the heading by striking ``qualified photovoltaic 
     property expenditure'' and inserting ``qualified solar 
     electric property expenditure''.

     SEC. 207. ENERGY CREDIT.

       Section 48 is amended--
       (1) by striking ``January 1, 2008'' both places it appears 
     and inserting ``January 1, 2009'', and
       (2) by striking ``December 31, 2007'' both places it 
     appears and inserting ``December 31, 2008''.

     SEC. 208. SPECIAL RULE FOR QUALIFIED METHANOL OR ETHANOL 
                   FUEL.

       (a) Extension.--Subparagraph (D) of section 4041(b)(2) is 
     amended by striking ``October 1, 2007'' and inserting 
     ``January 1, 2009''.
       (b) Applicable Blender Rate.--Section 4041(b)(2)(C)(ii) is 
     amended by striking ``2007'' and inserting ``2008''.
       (c) Clerical Amendment.--The heading for section 
     4041(b)(2)(B) is amended to read as follows: ``Qualified 
     methanol and ethanol fuel produced from coal''.

     SEC. 209. SPECIAL DEPRECIATION ALLOWANCE FOR CELLULOSIC 
                   BIOMASS ETHANOL PLANT PROPERTY.

       (a) In General.--Section 168 (relating to accelerated cost 
     recovery system) is amended by adding at the end the 
     following:
       ``(l) Special Allowance for Cellulosic Biomass Ethanol 
     Plant Property.--
       ``(1) Additional allowance.--In the case of any qualified 
     cellulosic biomass ethanol plant property--
       ``(A) the depreciation deduction provided by section 167(a) 
     for the taxable year in which such property is placed in 
     service shall include an allowance equal to 50 percent of the 
     adjusted basis of such property, and
       ``(B) the adjusted basis of such property shall be reduced 
     by the amount of such deduction before computing the amount 
     otherwise allowable as a depreciation deduction under this 
     chapter for such taxable year and any subsequent taxable 
     year.
       ``(2) Qualified cellulosic biomass ethanol plant 
     property.--The term `qualified cellulosic biomass ethanol 
     plant property' means property of a character subject to the 
     allowance for depreciation--
       ``(A) which is used in the United States solely to produce 
     cellulosic biomass ethanol,
       ``(B) the original use of which commences with the taxpayer 
     after the date of the enactment of this subsection,
       ``(C) which is acquired by the taxpayer by purchase (as 
     defined in section 179(d)) after the date of the enactment of 
     this subsection, but only if no written binding contract for 
     the acquisition was in effect on or before the date of the 
     enactment of this subsection, and
       ``(D) which is placed in service by the taxpayer before 
     January 1, 2013.
       ``(3) Cellulosic biomass ethanol.--For purposes of this 
     subsection, the term `cellulosic biomass ethanol' means 
     ethanol produced by enzymatic hydrolysis of any 
     lignocellulosic or hemicellulosic matter that is available on 
     a renewable or recurring basis.
       ``(4) Exceptions.--
       ``(A) Alternative depreciation property.--Such term shall 
     not include any property described in section 
     168(k)(2)(D)(i).
       ``(B) Tax-exempt bond-financed property.--Such term shall 
     not include any property any portion of which is financed 
     with the proceeds of any obligation the interest on which is 
     exempt from tax under section 103.
       ``(C) Election out.--If a taxpayer makes an election under 
     this subparagraph with respect to any class of property for 
     any taxable year, this subsection shall not apply to all 
     property in such class placed in service during such taxable 
     year.
       ``(5) Special rules.--For purposes of this subsection, 
     rules similar to the rules of subparagraph (E) of section 
     168(k)(2) shall apply, except that such subparagraph shall be 
     applied--
       ``(A) by substituting `the date of the enactment of 
     subsection (l)' for `September 10, 2001' each place it 
     appears therein,
       ``(B) by substituting `January 1, 2013' for `January 1, 
     2005' in clause (i) thereof, and
       ``(C) by substituting `qualified cellulosic biomass ethanol 
     plant property' for `qualified property' in clause (iv) 
     thereof.
       ``(6) Allowance against alternative minimum tax.--For 
     purposes of this subsection, rules similar to the rules of 
     section 168(k)(2)(G) shall apply.
       ``(7) Recapture.--For purposes of this subsection, rules 
     similar to the rules under section 179(d)(10) shall apply 
     with respect to any qualified cellulosic biomass ethanol 
     plant property which ceases to be qualified cellulosic 
     biomass ethanol plant property.
       ``(8) Denial of double benefit.--Paragraph (1) shall not 
     apply to any qualified cellulosic biomass ethanol plant 
     property with respect to which an election has been made 
     under section 179C (relating to election to expense certain 
     refineries).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act in taxable years ending after such 
     date.

     SEC. 210. EXPENDITURES PERMITTED FROM THE LEAKING UNDERGROUND 
                   STORAGE TANK TRUST FUND.

       (a) In General.--Subsection (c) of section 9508 is 
     amended--
       (1) by striking ``section 9003(h)'' and inserting 
     ``sections 9003(h), 9003(i), 9003(j), 9004(f), 9005(c), 9010, 
     9011, 9012, and 9013'', and
       (2) by striking ``Superfund Amendments and Reauthorization 
     Act of 1986'' and inserting ``Public Law 109-168''.
       (b) Conforming Amendments.--Section 9014(2) of the Solid 
     Waste Disposal Act is amended by striking ``Fund, 
     notwithstanding section 9508(c)(1) of the Internal Revenue 
     Code of 1986'' and inserting ``Fund''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 211. TREATMENT OF COKE AND COKE GAS.

       (a) Nonapplication of Phaseout.--Section 45K(g)(2) is 
     amended by adding at the end the following new subparagraph:
       ``(D) Nonapplication of phaseout.--Subsection (b)(1) shall 
     not apply.''.
       (b) Clarification of Qualifying Facility.--Section 
     45K(g)(1) is amended by inserting ``(other than from 
     petroleum based products)'' after ``coke or coke gas''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 1321 of the 
     Energy Policy Act of 2005.

                   TITLE III--HEALTH SAVINGS ACCOUNTS

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Health Opportunity Patient 
     Empowerment Act of 2006''.

     SEC. 302. FSA AND HRA TERMINATIONS TO FUND HSAS.

       (a) In General.--Section 106 (relating to contributions by 
     employer to accident and health plans) is amended by adding 
     at the end the following new subsection:
       ``(e) FSA and HRA Terminations to Fund HSAs.--
       ``(1) In general.--A plan shall not fail to be treated as a 
     health flexible spending arrangement or health reimbursement 
     arrangement under this section or section 105 merely because 
     such plan provides for a qualified HSA distribution.
       ``(2) Qualified hsa distribution.--The term `qualified HSA 
     distribution' means a distribution from a health flexible 
     spending arrangement or health reimbursement arrangement to 
     the extent that such distribution--
       ``(A) does not exceed the lesser of the balance in such 
     arrangement on September 21, 2006, or as of the date of such 
     distribution, and
       ``(B) is contributed by the employer directly to the health 
     savings account of the employee before January 1, 2012.

     Such term shall not include more than 1 distribution with 
     respect to any arrangement.
       ``(3) Additional tax for failure to maintain high 
     deductible health plan coverage.--

[[Page 23138]]

       ``(A) In general.--If, at any time during the testing 
     period, the employee is not an eligible individual, then the 
     amount of the qualified HSA distribution--
       ``(i) shall be includible in the gross income of the 
     employee for the taxable year in which occurs the first month 
     in the testing period for which such employee is not an 
     eligible individual, and
       ``(ii) the tax imposed by this chapter for such taxable 
     year on the employee shall be increased by 10 percent of the 
     amount which is so includible.
       ``(B) Exception for disability or death.--Clauses (i) and 
     (ii) of subparagraph (A) shall not apply if the employee 
     ceases to be an eligible individual by reason of the death of 
     the employee or the employee becoming disabled (within the 
     meaning of section 72(m)(7)).
       ``(4) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Testing period.--The term `testing period' means the 
     period beginning with the month in which the qualified HSA 
     distribution is contributed to the health savings account and 
     ending on the last day of the 12th month following such 
     month.
       ``(B) Eligible individual.--The term `eligible individual' 
     has the meaning given such term by section 223(c)(1).
       ``(C) Treatment as rollover contribution.--A qualified HSA 
     distribution shall be treated as a rollover contribution 
     described in section 223(f)(5).
       ``(5) Tax treatment relating to distributions.--For 
     purposes of this title--
       ``(A) In general.--A qualified HSA distribution shall be 
     treated as a payment described in subsection (d).
       ``(B) Comparability excise tax.--
       ``(i) In general.--Except as provided in clause (ii), 
     section 4980G shall not apply to qualified HSA distributions.
       ``(ii) Failure to offer to all employees.--In the case of a 
     qualified HSA distribution to any employee, the failure to 
     offer such distribution to any eligible individual covered 
     under a high deductible health plan of the employer shall 
     (notwithstanding section 4980G(d)) be treated for purposes of 
     section 4980G as a failure to meet the requirements of 
     section 4980G(b).''.
       (b) Certain FSA Coverage Disregarded Coverage.--
     Subparagraph (B) of section 223(c)(1) (relating to certain 
     coverage disregarded) is amended by striking ``and'' at the 
     end of clause (i), by striking the period at the end of 
     clause (ii) and inserting ``, and'', and by inserting after 
     clause (ii) the following new clause:
       ``(iii) for taxable years beginning after December 31, 
     2006, coverage under a health flexible spending arrangement 
     during any period immediately following the end of a plan 
     year of such arrangement during which unused benefits or 
     contributions remaining at the end of such plan year may be 
     paid or reimbursed to plan participants for qualified benefit 
     expenses incurred during such period if--

       ``(I) the balance in such arrangement at the end of such 
     plan year is zero, or
       ``(II) the individual is making a qualified HSA 
     distribution (as defined in section 106(e)) in an amount 
     equal to the remaining balance in such arrangement as of the 
     end of such plan year, in accordance with rules prescribed by 
     the Secretary.''.

       (c) Application of Section.--
       (1) Subsection (a).--The amendment made by subsection (a) 
     shall apply to distributions on or after the date of the 
     enactment of this Act.
       (2) Subsection (b).--The amendment made by subsection (b) 
     shall take effect on the date of the enactment of this Act.

     SEC. 303. REPEAL OF ANNUAL DEDUCTIBLE LIMITATION ON HSA 
                   CONTRIBUTIONS.

       (a) In General.--Paragraph (2) of section 223(b) (relating 
     to monthly limitation) is amended--
       (1) in subparagraph (A) by striking ``the lesser of--'' and 
     all that follows and inserting ``$2,250.'', and
       (2) in subparagraph (B) by striking ``the lesser of--'' and 
     all that follows and inserting ``$4,500.''.
       (b) Conforming Amendment.--Section 223(d)(1)(A)(ii)(I) is 
     amended by striking ``subsection (b)(2)(B)(ii)'' and 
     inserting ``subsection (b)(2)(B)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 304. MODIFICATION OF COST-OF-LIVING ADJUSTMENT.

       Paragraph (1) of section 223(g) (relating to cost-of-living 
     adjustment) is amended by adding at the end the following new 
     flush sentence:
     ``In the case of adjustments made for any taxable year 
     beginning after 2007, section 1(f)(4) shall be applied for 
     purposes of this paragraph by substituting `March 31' for 
     `August 31', and the Secretary shall publish the adjusted 
     amounts under subsections (b)(2) and (c)(2)(A) for taxable 
     years beginning in any calendar year no later than June 1 of 
     the preceding calendar year.''.

     SEC. 305. CONTRIBUTION LIMITATION NOT REDUCED FOR PART-YEAR 
                   COVERAGE.

       (a) Increase in Limit for Individuals Becoming Eligible 
     Individuals After Beginning of the Year.--Subsection (b) of 
     section 223 (relating to limitations) is amended by adding at 
     the end the following new paragraph:
       ``(8) Increase in limit for individuals becoming eligible 
     individuals after the beginning of the year.--
       ``(A) In general.--For purposes of computing the limitation 
     under paragraph (1) for any taxable year, an individual who 
     is an eligible individual during the last month of such 
     taxable year shall be treated--
       ``(i) as having been an eligible individual during each of 
     the months in such taxable year, and
       ``(ii) as having been enrolled, during each of the months 
     such individual is treated as an eligible individual solely 
     by reason of clause (i), in the same high deductible health 
     plan in which the individual was enrolled for the last month 
     of such taxable year.
       ``(B) Failure to maintain high deductible health plan 
     coverage.--
       ``(i) In general.--If, at any time during the testing 
     period, the individual is not an eligible individual, then--

       ``(I) gross income of the individual for the taxable year 
     in which occurs the first month in the testing period for 
     which such individual is not an eligible individual is 
     increased by the aggregate amount of all contributions to the 
     health savings account of the individual which could not have 
     been made but for subparagraph (A), and
       ``(II) the tax imposed by this chapter for any taxable year 
     on the individual shall be increased by 10 percent of the 
     amount of such increase.

       ``(ii) Exception for disability or death.--Subclauses (I) 
     and (II) of clause (i) shall not apply if the individual 
     ceased to be an eligible individual by reason of the death of 
     the individual or the individual becoming disabled (within 
     the meaning of section 72(m)(7)).
       ``(iii) Testing period.--The term `testing period' means 
     the period beginning with the last month of the taxable year 
     referred to in subparagraph (A) and ending on the last day of 
     the 12th month following such month.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 306. EXCEPTION TO REQUIREMENT FOR EMPLOYERS TO MAKE 
                   COMPARABLE HEALTH SAVINGS ACCOUNT 
                   CONTRIBUTIONS.

       (a) In General.--Section 4980G (relating to failure of 
     employer to make comparable health savings account 
     contributions) is amended by adding at the end the following 
     new subsection:
       ``(d) Exception.--For purposes of applying section 4980E to 
     a contribution to a health savings account of an employee who 
     is not a highly compensated employee (as defined in section 
     414(q)), highly compensated employees shall not be treated as 
     comparable participating employees.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 307. ONE-TIME DISTRIBUTION FROM INDIVIDUAL RETIREMENT 
                   PLANS TO FUND HSAS.

       (a) In General.--Subsection (d) of section 408 (relating to 
     taxability of beneficiary of employees' trust) is amended by 
     adding at the end the following new paragraph:
       ``(9) Distribution for health savings account funding.--
       ``(A) In general.--In the case of an individual who is an 
     eligible individual (as defined in section 223(c)) and who 
     elects the application of this paragraph for a taxable year, 
     gross income of the individual for the taxable year does not 
     include a qualified HSA funding distribution to the extent 
     such distribution is otherwise includible in gross income.
       ``(B) Qualified hsa funding distribution.--For purposes of 
     this paragraph, the term `qualified HSA funding distribution' 
     means a distribution from an individual retirement plan 
     (other than a plan described in subsection (k) or (p)) of the 
     employee to the extent that such distribution is contributed 
     to the health savings account of the individual in a direct 
     trustee-to-trustee transfer.
       ``(C) Limitations.--
       ``(i) Maximum dollar limitation.--The amount excluded from 
     gross income by subparagraph (A) shall not exceed the excess 
     of--

       ``(I) the annual limitation under section 223(b) computed 
     on the basis of the type of coverage under the high 
     deductible health plan covering the individual at the time of 
     the qualified HSA funding distribution, over
       ``(II) in the case of a distribution described in clause 
     (ii)(II), the amount of the earlier qualified HSA funding 
     distribution.

       ``(ii) One-time transfer.--

       ``(I) In general.--Except as provided in subclause (II), an 
     individual may make an election under subparagraph (A) only 
     for one qualified HSA funding distribution during the 
     lifetime of the individual. Such an election, once made, 
     shall be irrevocable.
       ``(II) Conversion from self-only to family coverage.--If a 
     qualified HSA funding distribution is made during a month in 
     a taxable year during which an individual has self-only 
     coverage under a high deductible health plan as of the first 
     day of the month, the individual may elect to make an 
     additional qualified HSA funding distribution during a 
     subsequent month in such taxable year during which the 
     individual has family coverage under a high deductible health 
     plan as of the first day of the subsequent month.

[[Page 23139]]

       ``(D) Failure to maintain high deductible health plan 
     coverage.--
       ``(i) In general.--If, at any time during the testing 
     period, the individual is not an eligible individual, then 
     the aggregate amount of all contributions to the health 
     savings account of the individual made under subparagraph 
     (A)--

       ``(I) shall be includible in the gross income of the 
     individual for the taxable year in which occurs the first 
     month in the testing period for which such individual is not 
     an eligible individual, and
       ``(II) the tax imposed by this chapter for any taxable year 
     on the individual shall be increased by 10 percent of the 
     amount which is so includible.

       ``(ii) Exception for disability or death.--Subclauses (I) 
     and (II) of clause (i) shall not apply if the individual 
     ceased to be an eligible individual by reason of the death of 
     the individual or the individual becoming disabled (within 
     the meaning of section 72(m)(7)).
       ``(iii) Testing period.--The term `testing period' means 
     the period beginning with the month in which the qualified 
     HSA funding distribution is contributed to a health savings 
     account and ending on the last day of the 12th month 
     following such month.
       ``(E) Application of section 72.--Notwithstanding section 
     72, in determining the extent to which an amount is treated 
     as otherwise includible in gross income for purposes of 
     subparagraph (A), the aggregate amount distributed from an 
     individual retirement plan shall be treated as includible in 
     gross income to the extent that such amount does not exceed 
     the aggregate amount which would have been so includible if 
     all amounts from all individual retirement plans were 
     distributed. Proper adjustments shall be made in applying 
     section 72 to other distributions in such taxable year and 
     subsequent taxable years.''.
       (b) Coordination With Limitation on Contributions to 
     HSAs.--Section 223(b)(4) (relating to coordination with other 
     contributions) is amended by striking ``and'' at the end of 
     subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, and'', and by inserting 
     after subparagraph (B) the following new subparagraph:
       ``(C) the aggregate amount contributed to health savings 
     accounts of such individual for such taxable year under 
     section 408(d)(9) (and such amount shall not be allowed as a 
     deduction under subsection (a)).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

                       TITLE IV--OTHER PROVISIONS

     SEC. 401. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME 
                   ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES 
                   IN PUERTO RICO.

       (a) In General.--Subsection (d) of section 199 (relating to 
     definitions and special rules) is amended by redesignating 
     paragraph (8) as paragraph (9) and by inserting after 
     paragraph (7) the following new paragraph:
       ``(8) Treatment of activities in puerto rico.--
       ``(A) In general.--In the case of any taxpayer with gross 
     receipts for any taxable year from sources within the 
     Commonwealth of Puerto Rico, if all of such receipts are 
     taxable under section 1 or 11 for such taxable year, then for 
     purposes of determining the domestic production gross 
     receipts of such taxpayer for such taxable year under 
     subsection (c)(4), the term `United States' shall include the 
     Commonwealth of Puerto Rico.
       ``(B) Special rule for applying wage limitation.--In the 
     case of any taxpayer described in subparagraph (A), for 
     purposes of applying the limitation under subsection (b) for 
     any taxable year, the determination of W-2 wages of such 
     taxpayer shall be made without regard to any exclusion under 
     section 3401(a)(8) for remuneration paid for services 
     performed in Puerto Rico.
       ``(C) Termination.--This paragraph shall apply only with 
     respect to the first 2 taxable years of the taxpayer 
     beginning after December 31, 2005, and before January 1, 
     2008.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 402. CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY MADE 
                   REFUNDABLE AFTER PERIOD OF YEARS.

       (a) In General.--Section 53 (relating to credit for prior 
     year minimum tax liability) is amended by adding at the end 
     the following new subsection:
       ``(e) Special Rule for Individuals With Long-Term Unused 
     Credits.--
       ``(1) In general.--If an individual has a long-term unused 
     minimum tax credit for any taxable year beginning before 
     January 1, 2013, the amount determined under subsection (c) 
     for such taxable year shall not be less than the AMT 
     refundable credit amount for such taxable year.
       ``(2) Amt refundable credit amount.--For purposes of 
     paragraph (1)--
       ``(A) In general.--The term `AMT refundable credit amount' 
     means, with respect to any taxable year, the amount equal to 
     the greater of--
       ``(i) the lesser of--

       ``(I) $5,000, or
       ``(II) the amount of long-term unused minimum tax credit 
     for such taxable year, or

       ``(ii) 20 percent of the amount of such credit.
       ``(B) Phaseout of amt refundable credit amount.--
       ``(i) In general.--In the case of an individual whose 
     adjusted gross income for any taxable year exceeds the 
     threshold amount (within the meaning of section 
     151(d)(3)(C)), the AMT refundable credit amount determined 
     under subparagraph (A) for such taxable year shall be reduced 
     by the applicable percentage (within the meaning of section 
     151(d)(3)(B)).
       ``(ii) Adjusted gross income.--For purposes of clause (i), 
     adjusted gross income shall be determined without regard to 
     sections 911, 931, and 933.
       ``(3) Long-term unused minimum tax credit.--
       ``(A) In general.--For purposes of this subsection, the 
     term `long-term unused minimum tax credit' means, with 
     respect to any taxable year, the portion of the minimum tax 
     credit determined under subsection (b) attributable to the 
     adjusted net minimum tax for taxable years before the 3rd 
     taxable year immediately preceding such taxable year.
       ``(B) First-in, first-out ordering rule.--For purposes of 
     subparagraph (A), credits shall be treated as allowed under 
     subsection (a) on a first-in, first-out basis.
       ``(4) Credit refundable.--For purposes of this title (other 
     than this section), the credit allowed by reason of this 
     subsection shall be treated as if it were allowed under 
     subpart C.''.
       (b) Conforming Amendments.--
       (1) Section 6211(b)(4)(A) is amended by striking ``and 34'' 
     and inserting ``34, and 53(e)''.
       (2) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting ``or 53(e)'' after 
     ``section 35''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 403. RETURNS REQUIRED IN CONNECTION WITH CERTAIN 
                   OPTIONS.

       (a) In General.--So much of section 6039(a) as follows 
     paragraph (2) is amended to read as follows:
     ``shall, for such calendar year, make a return at such time 
     and in such manner, and setting forth such information, as 
     the Secretary may by regulations prescribe.''.
       (b) Statements to Persons With Respect to Whom Information 
     Is Furnished.--Section 6039 is amended by redesignating 
     subsections (b) and (c) as subsection (c) and (d), 
     respectively, and by inserting after subsection (a) the 
     following new subsection:
       ``(b) Statements To Be Furnished to Persons With Respect to 
     Whom Information Is Reported.--Every corporation making a 
     return under subsection (a) shall furnish to each person 
     whose name is set forth in such return a written statement 
     setting forth such information as the Secretary may by 
     regulations prescribe. The written statement required under 
     the preceding sentence shall be furnished to such person on 
     or before January 31 of the year following the calendar year 
     for which the return under subsection (a) was made.''.
       (c) Conforming Amendments.--
       (1) Section 6724(d)(1)(B) is amended by striking ``or'' at 
     the end of clause (xvii), by striking ``and'' at the end of 
     clause (xviii) and inserting ``or'', and by adding at the end 
     the following new clause:
       ``(xix) section 6039(a) (relating to returns required with 
     respect to certain options), and''.
       (2) Section 6724(d)(2)(B) is amended by striking ``section 
     6039(a)'' and inserting ``section 6039(b)''.
       (3) The heading of section 6039 and the item relating to 
     such section in the table of sections of subpart A of part 
     III of subchapter A of chapter 61 of such Code are each 
     amended by striking ``Information'' and inserting 
     ``Returns''.
       (4) The heading of subsection (a) of section 6039 is 
     amended by striking ``Furnishing of Information'' and 
     inserting ``Requirement of Reporting''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after the date of the 
     enactment of this Act.

     SEC. 404. PARTIAL EXPENSING FOR ADVANCED MINE SAFETY 
                   EQUIPMENT.

       (a) In General.--Part VI of subchapter B of chapter 1 is 
     amended by inserting after section 179D the following new 
     section:

     ``SEC. 179E. ELECTION TO EXPENSE ADVANCED MINE SAFETY 
                   EQUIPMENT.

       ``(a) Treatment as Expenses.--A taxpayer may elect to treat 
     50 percent of the cost of any qualified advanced mine safety 
     equipment property as an expense which is not chargeable to 
     capital account. Any cost so treated shall be allowed as a 
     deduction for the taxable year in which the qualified 
     advanced mine safety equipment property is placed in service.
       ``(b) Election.--
       ``(1) In general.--An election under this section for any 
     taxable year shall be made on the taxpayer's return of the 
     tax imposed by this chapter for the taxable year. Such 
     election shall specify the advanced mine safety equipment 
     property to which the election applies and shall be made in 
     such manner as the Secretary may by regulations prescribe.

[[Page 23140]]

       ``(2) Election irrevocable.--Any election made under this 
     section may not be revoked except with the consent of the 
     Secretary.
       ``(c) Qualified Advanced Mine Safety Equipment Property.--
     For purposes of this section, the term `qualified advanced 
     mine safety equipment property' means any advanced mine 
     safety equipment property for use in any underground mine 
     located in the United States--
       ``(1) the original use of which commences with the 
     taxpayer, and
       ``(2) which is placed in service by the taxpayer after the 
     date of the enactment of this section.
       ``(d) Advanced Mine Safety Equipment Property.--For 
     purposes of this section, the term `advanced mine safety 
     equipment property' means any of the following:
       ``(1) Emergency communication technology or device which is 
     used to allow a miner to maintain constant communication with 
     an individual who is not in the mine.
       ``(2) Electronic identification and location device which 
     allows an individual who is not in the mine to track at all 
     times the movements and location of miners working in or at 
     the mine.
       ``(3) Emergency oxygen-generating, self-rescue device which 
     provides oxygen for at least 90 minutes.
       ``(4) Pre-positioned supplies of oxygen which (in 
     combination with self-rescue devices) can be used to provide 
     each miner on a shift, in the event of an accident or other 
     event which traps the miner in the mine or otherwise 
     necessitates the use of such a self-rescue device, the 
     ability to survive for at least 48 hours.
       ``(5) Comprehensive atmospheric monitoring system which 
     monitors the levels of carbon monoxide, methane, and oxygen 
     that are present in all areas of the mine and which can 
     detect smoke in the case of a fire in a mine.
       ``(e) Coordination With Section 179.--No expenditures shall 
     be taken into account under subsection (a) with respect to 
     the portion of the cost of any property specified in an 
     election under section 179.
       ``(f) Reporting.--No deduction shall be allowed under 
     subsection (a) to any taxpayer for any taxable year unless 
     such taxpayer files with the Secretary a report containing 
     such information with respect to the operation of the mines 
     of the taxpayer as the Secretary shall require.
       ``(g) Termination.--This section shall not apply to 
     property placed in service after December 31, 2008.''.
       (b) Conforming Amendments.--
       (1) Section 263(a)(1) is amended by striking ``or'' at the 
     end of subparagraph (J), by striking the period at the end of 
     subparagraph (K) and inserting ``, or'', and by inserting 
     after subparagraph (K) the following new subparagraph:
       ``(L) expenditures for which a deduction is allowed under 
     section 179E.''.
       (2) Section 312(k)(3)(B) is amended by striking ``or 179D'' 
     each place it appears in the heading and text thereof and 
     inserting ``179D, or 179E''.
       (3) Paragraphs (2)(C) and (3)(C) of section 1245(a) are 
     each amended by inserting ``179E,'' after ``179D,''.
       (4) The table of sections for part VI of subchapter B of 
     chapter 1 is amended by inserting after the item relating to 
     section 179D the following new item:

``Sec. 179E. Election to expense advanced mine safety equipment.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to costs paid or incurred after the date of the 
     enactment of this Act.

     SEC. 405. MINE RESCUE TEAM TRAINING TAX CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45N. MINE RESCUE TEAM TRAINING CREDIT.

       ``(a) Amount of Credit.--For purposes of section 38, the 
     mine rescue team training credit determined under this 
     section with respect to each qualified mine rescue team 
     employee of an eligible employer for any taxable year is an 
     amount equal to the lesser of--
       ``(1) 20 percent of the amount paid or incurred by the 
     taxpayer during the taxable year with respect to the training 
     program costs of such qualified mine rescue team employee 
     (including wages of such employee while attending such 
     program), or
       ``(2) $10,000.
       ``(b) Qualified Mine Rescue Team Employee.--For purposes of 
     this section, the term `qualified mine rescue team employee' 
     means with respect to any taxable year any full-time employee 
     of the taxpayer who is--
       ``(1) a miner eligible for more than 6 months of such 
     taxable year to serve as a mine rescue team member as a 
     result of completing, at a minimum, an initial 20-hour course 
     of instruction as prescribed by the Mine Safety and Health 
     Administration's Office of Educational Policy and 
     Development, or
       ``(2) a miner eligible for more than 6 months of such 
     taxable year to serve as a mine rescue team member by virtue 
     of receiving at least 40 hours of refresher training in such 
     instruction.
       ``(c) Eligible Employer.--For purposes of this section, the 
     term `eligible employer' means any taxpayer which employs 
     individuals as miners in underground mines in the United 
     States.
       ``(d) Wages.--For purposes of this section, the term 
     `wages' has the meaning given to such term by subsection (b) 
     of section 3306 (determined without regard to any dollar 
     limitation contained in such section).
       ``(e) Termination.--This section shall not apply to taxable 
     years beginning after December 31, 2008.''.
       (b) Credit Made Part of General Business Credit.--Section 
     38(b) is amended by striking ``and'' at the end of paragraph 
     (29), by striking the period at the end of paragraph (30) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(31) the mine rescue team training credit determined 
     under section 45N(a).''.
       (c) No Double Benefit.--Section 280C is amended by adding 
     at the end the following new subsection:
       ``(e) Mine Rescue Team Training Credit.--No deduction shall 
     be allowed for that portion of the expenses otherwise 
     allowable as a deduction for the taxable year which is equal 
     to the amount of the credit determined for the taxable year 
     under section 45N(a).''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following new item:

``Sec. 45N. Mine rescue team training credit.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 406. WHISTLEBLOWER REFORMS.

       (a) Awards to Whistleblowers.--
       (1) In general.--Section 7623 (relating to expenses of 
     detection of underpayments and fraud, etc.) is amended--
       (A) by striking ``The Secretary'' and inserting ``(a) In 
     General.--The Secretary'',
       (B) by striking ``and'' at the end of paragraph (1) and 
     inserting ``or'',
       (C) by striking ``(other than interest)'', and
       (D) by adding at the end the following new subsection:
       ``(b) Awards to Whistleblowers.--
       ``(1) In general.--If the Secretary proceeds with any 
     administrative or judicial action described in subsection (a) 
     based on information brought to the Secretary's attention by 
     an individual, such individual shall, subject to paragraph 
     (2), receive as an award at least 15 percent but not more 
     than 30 percent of the collected proceeds (including 
     penalties, interest, additions to tax, and additional 
     amounts) resulting from the action (including any related 
     actions) or from any settlement in response to such action. 
     The determination of the amount of such award by the 
     Whistleblower Office shall depend upon the extent to which 
     the individual substantially contributed to such action.
       ``(2) Award in case of less substantial contribution.--
       ``(A) In general.--In the event the action described in 
     paragraph (1) is one which the Whistleblower Office 
     determines to be based principally on disclosures of specific 
     allegations (other than information provided by the 
     individual described in paragraph (1)) resulting from a 
     judicial or administrative hearing, from a governmental 
     report, hearing, audit, or investigation, or from the news 
     media, the Whistleblower Office may award such sums as it 
     considers appropriate, but in no case more than 10 percent of 
     the collected proceeds (including penalties, interest, 
     additions to tax, and additional amounts) resulting from the 
     action (including any related actions) or from any settlement 
     in response to such action, taking into account the 
     significance of the individual's information and the role of 
     such individual and any legal representative of such 
     individual in contributing to such action.
       ``(B) Nonapplication of paragraph where individual is 
     original source of information.--Subparagraph (A) shall not 
     apply if the information resulting in the initiation of the 
     action described in paragraph (1) was originally provided by 
     the individual described in paragraph (1).
       ``(3) Reduction in or denial of award.--If the 
     Whistleblower Office determines that the claim for an award 
     under paragraph (1) or (2) is brought by an individual who 
     planned and initiated the actions that led to the 
     underpayment of tax or actions described in subsection 
     (a)(2), then the Whistleblower Office may appropriately 
     reduce such award. If such individual is convicted of 
     criminal conduct arising from the role described in the 
     preceding sentence, the Whistleblower Office shall deny any 
     award.
       ``(4) Appeal of award determination.--Any determination 
     regarding an award under paragraph (1), (2), or (3) may, 
     within 30 days of such determination, be appealed to the Tax 
     Court (and the Tax Court shall have jurisdiction with respect 
     to such matter).
       ``(5) Application of this subsection.--This subsection 
     shall apply with respect to any action--
       ``(A) against any taxpayer, but in the case of any 
     individual, only if such individual's gross income exceeds 
     $200,000 for any taxable year subject to such action, and
       ``(B) if the tax, penalties, interest, additions to tax, 
     and additional amounts in dispute exceed $2,000,000.

[[Page 23141]]

       ``(6) Additional rules.--
       ``(A) No contract necessary.--No contract with the Internal 
     Revenue Service is necessary for any individual to receive an 
     award under this subsection.
       ``(B) Representation.--Any individual described in 
     paragraph (1) or (2) may be represented by counsel.
       ``(C) Submission of information.--No award may be made 
     under this subsection based on information submitted to the 
     Secretary unless such information is submitted under penalty 
     of perjury.''.
       (2) Assignment to special trial judges.--
       (A) In general.--Section 7443A(b) (relating to proceedings 
     which may be assigned to special trial judges) is amended by 
     striking ``and'' at the end of paragraph (5), by 
     redesignating paragraph (6) as paragraph (7), and by 
     inserting after paragraph (5) the following new paragraph:
       ``(6) any proceeding under section 7623(b)(4), and''.
       (B) Conforming amendment.--Section 7443A(c) is amended by 
     striking ``or (5)'' and inserting ``(5), or (6)''.
       (3) Deduction allowed whether or not taxpayer itemizes.--
     Subsection (a) of section 62 (relating to general rule 
     defining adjusted gross income) is amended by inserting after 
     paragraph (20) the following new paragraph:
       ``(21) Attorneys fees relating to awards to 
     whistleblowers.--Any deduction allowable under this chapter 
     for attorney fees and court costs paid by, or on behalf of, 
     the taxpayer in connection with any award under section 
     7623(b) (relating to awards to whistleblowers). The preceding 
     sentence shall not apply to any deduction in excess of the 
     amount includible in the taxpayer's gross income for the 
     taxable year on account of such award.''.
       (b) Whistleblower Office.--
       (1) In general.--Not later than the date which is 12 months 
     after the date of the enactment of this Act, the Secretary of 
     the Treasury shall issue guidance for the operation of a 
     whistleblower program to be administered in the Internal 
     Revenue Service by an office to be known as the 
     ``Whistleblower Office'' which--
       (A) shall at all times operate at the direction of the 
     Commissioner of Internal Revenue and coordinate and consult 
     with other divisions in the Internal Revenue Service as 
     directed by the Commissioner of Internal Revenue,
       (B) shall analyze information received from any individual 
     described in section 7623(b) of the Internal Revenue Code of 
     1986 and either investigate the matter itself or assign it to 
     the appropriate Internal Revenue Service office, and
       (C) in its sole discretion, may ask for additional 
     assistance from such individual or any legal representative 
     of such individual.
       (2) Request for assistance.--The guidance issued under 
     paragraph (1) shall specify that any assistance requested 
     under paragraph (1)(C) shall be under the direction and 
     control of the Whistleblower Office or the office assigned to 
     investigate the matter under paragraph (1)(A). No individual 
     or legal representative whose assistance is so requested may 
     by reason of such request represent himself or herself as an 
     employee of the Federal Government.
       (c) Report by Secretary.--The Secretary of the Treasury 
     shall each year conduct a study and report to Congress on the 
     use of section 7623 of the Internal Revenue Code of 1986, 
     including--
       (1) an analysis of the use of such section during the 
     preceding year and the results of such use, and
       (2) any legislative or administrative recommendations 
     regarding the provisions of such section and its application.
       (d) Effective Date.--The amendments made by subsection (a) 
     shall apply to information provided on or after the date of 
     the enactment of this Act.

     SEC. 407. FRIVOLOUS TAX SUBMISSIONS.

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

     ``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.

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

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

       ``(ii) an application under--

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

       ``(3) Opportunity to withdraw submission.--If the Secretary 
     provides a person with notice that a submission is a 
     specified frivolous submission and such person withdraws such 
     submission within 30 days after such notice, the penalty 
     imposed under paragraph (1) shall not apply with respect to 
     such submission.
       ``(c) Listing of Frivolous Positions.--The Secretary shall 
     prescribe (and periodically revise) a list of positions which 
     the Secretary has identified as being frivolous for purposes 
     of this subsection. The Secretary shall not include in such 
     list any position that the Secretary determines meets the 
     requirement of section 6662(d)(2)(B)(ii)(II).
       ``(d) Reduction of Penalty.--The Secretary may reduce the 
     amount of any penalty imposed under this section if the 
     Secretary determines that such reduction would promote 
     compliance with and administration of the Federal tax laws.
       ``(e) Penalties in Addition to Other Penalties.--The 
     penalties imposed by this section shall be in addition to any 
     other penalty provided by law.''.
       (b) Treatment of Frivolous Requests for Hearings Before 
     Levy.--
       (1) Frivolous requests disregarded.--Section 6330 (relating 
     to notice and opportunity for hearing before levy) is amended 
     by adding at the end the following new subsection:
       ``(g) Frivolous Requests for Hearing, etc.--Notwithstanding 
     any other provision of this section, if the Secretary 
     determines that any portion of a request for a hearing under 
     this section or section 6320 meets the requirement of clause 
     (i) or (ii) of section 6702(b)(2)(A), then the Secretary may 
     treat such portion as if it were never submitted and such 
     portion shall not be subject to any further administrative or 
     judicial review.''.
       (2) Preclusion from raising frivolous issues at hearing.--
     Section 6330(c)(4) is amended--
       (A) by striking ``(A)'' and inserting ``(A)(i)'';
       (B) by striking ``(B)'' and inserting ``(ii)'';
       (C) by striking the period at the end of the first sentence 
     and inserting ``; or''; and
       (D) by inserting after subparagraph (A)(ii) (as so 
     redesignated) the following:
       ``(B) the issue meets the requirement of clause (i) or (ii) 
     of section 6702(b)(2)(A).''.
       (3) Statement of grounds.--Section 6330(b)(1) is amended by 
     striking ``under subsection (a)(3)(B)'' and inserting ``in 
     writing under subsection (a)(3)(B) and states the grounds for 
     the requested hearing''.
       (c) Treatment of Frivolous Requests for Hearings Upon 
     Filing of Notice of Lien.--Section 6320 is amended--
       (1) in subsection (b)(1), by striking ``under subsection 
     (a)(3)(B)'' and inserting ``in writing under subsection 
     (a)(3)(B) and states the grounds for the requested hearing'', 
     and
       (2) in subsection (c), by striking ``and (e)'' and 
     inserting ``(e), and (g)''.
       (d) Treatment of Frivolous Applications for Offers-in-
     Compromise and Installment Agreements.--Section 7122 is 
     amended by adding at the end the following new subsection:
       ``(f) Frivolous Submissions, etc.--Notwithstanding any 
     other provision of this section, if the Secretary determines 
     that any portion of an application for an offer-in-compromise 
     or installment agreement submitted under this section or 
     section 6159 meets the requirement of clause (i) or (ii) of 
     section 6702(b)(2)(A), then the Secretary may treat such 
     portion as if it were never submitted and such portion shall 
     not be subject to any further administrative or judicial 
     review.''.
       (e) Clerical Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by striking the item 
     relating to section 6702 and inserting the following new 
     item:

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

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

     SEC. 408. ADDITION OF MENINGOCOCCAL AND HUMAN PAPILLOMAVIRUS 
                   VACCINES TO LIST OF TAXABLE VACCINES.

       (a) Meningococcal Vaccine.--Section 4132(a)(1) (defining 
     taxable vaccine) is amended by adding at the end the 
     following new subparagraph:

[[Page 23142]]

       ``(O) Any meningococcal vaccine.''.
       (b) Human Papillomavirus Vaccine.--Section 4132(a)(1), as 
     amended by subsection (a), is amended by adding at the end 
     the following new subparagraph:
       ``(P) Any vaccine against the human papillomavirus.''.
       (c) Effective Date.--
       (1) Sales, etc.--The amendments made by this section shall 
     apply to sales and uses on or after the first day of the 
     first month which begins more than 4 weeks after the date of 
     the enactment of this Act.
       (2) Deliveries.--For purposes of paragraph (1) and section 
     4131 of the Internal Revenue Code of 1986, in the case of 
     sales on or before the effective date described in such 
     paragraph for which delivery is made after such date, the 
     delivery date shall be considered the sale date.

     SEC. 409. CLARIFICATION OF TAXATION OF CERTAIN SETTLEMENT 
                   FUNDS MADE PERMANENT.

       (a) In General.--Subsection (g) of section 468B is amended 
     by striking paragraph (3).
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 201 of the Tax 
     Increase Prevention and Reconciliation Act of 2005.

     SEC. 410. MODIFICATION OF ACTIVE BUSINESS DEFINITION UNDER 
                   SECTION 355 MADE PERMANENT.

       (a) In General.--Subparagraphs (A) and (D) of section 
     355(b)(3) are each amended by striking ``and on or before 
     December 31, 2010''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 202 of the Tax 
     Increase Prevention and Reconciliation Act of 2005.

     SEC. 411. REVISION OF STATE VETERANS LIMIT MADE PERMANENT.

       (a) In General.--Subparagraph (B) of section 143(l)(3) is 
     amended by striking clause (iv).
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 203 of the Tax 
     Increase Prevention and Reconciliation Act of 2005.

     SEC. 412. CAPITAL GAINS TREATMENT FOR CERTAIN SELF-CREATED 
                   MUSICAL WORKS MADE PERMANENT.

       (a) In General.--Paragraph (3) of section 1221(b) is 
     amended by striking ``before January 1, 2011,''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 204 of the Tax 
     Increase Prevention and Reconciliation Act of 2005.

     SEC. 413. REDUCTION IN MINIMUM VESSEL TONNAGE WHICH QUALIFIES 
                   FOR TONNAGE TAX MADE PERMANENT.

       (a) In General.--Paragraph (4) of section 1355(a) is 
     amended by striking ``10,000 (6,000, in the case of taxable 
     years beginning after December 31, 2005, and ending before 
     January 1, 2011)'' and inserting ``6,000''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 205 of the Tax 
     Increase Prevention and Reconciliation Act of 2005.

     SEC. 414. MODIFICATION OF SPECIAL ARBITRAGE RULE FOR CERTAIN 
                   FUNDS MADE PERMANENT.

       (a) In General.--Section 206 of the Tax Increase Prevention 
     and Reconciliation Act of 2005 is amended by striking ``and 
     before August 31, 2009''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 206 of the Tax 
     Increase Prevention and Reconciliation Act of 2005.

     SEC. 415. GREAT LAKES DOMESTIC SHIPPING TO NOT DISQUALIFY 
                   VESSEL FROM TONNAGE TAX.

       (a) In General.--Section 1355 (relating to definitions and 
     special rules) is amended by redesignating subsection (g) as 
     subsection (h) and by inserting after subsection (f) the 
     following new subsection:
       ``(g) Great Lakes Domestic Shipping to Not Disqualify 
     Vessel.--
       ``(1) In general.--If the electing corporation elects (at 
     such time and in such manner as the Secretary may require) to 
     apply this subsection for any taxable year to any qualifying 
     vessel which is used in qualified zone domestic trade during 
     the taxable year--
       ``(A) solely for purposes of subsection (a)(4), such use 
     shall be treated as use in United States foreign trade (and 
     not as use in United States domestic trade), and
       ``(B) subsection (f) shall not apply with respect to such 
     vessel for such taxable year.
       ``(2) Effect of temporarily operating vessel in united 
     states domestic trade.--In the case of a qualifying vessel to 
     which this subsection applies--
       ``(A) In general.--An electing corporation shall be treated 
     as using such vessel in qualified zone domestic trade during 
     any period of temporary use in the United States domestic 
     trade (other than qualified zone domestic trade) if the 
     electing corporation gives timely notice to the Secretary 
     stating--
       ``(i) that it temporarily operates or has operated in the 
     United States domestic trade (other than qualified zone 
     domestic trade) a qualifying vessel which had been used in 
     the United States foreign trade or qualified zone domestic 
     trade, and
       ``(ii) its intention to resume operation of the vessel in 
     the United States foreign trade or qualified zone domestic 
     trade.
       ``(B) Notice.--Notice shall be deemed timely if given not 
     later than the due date (including extensions) for the 
     corporation's tax return for the taxable year in which the 
     temporary cessation begins.
       ``(C) Period disregard in effect.--The period of temporary 
     use under subparagraph (A) continues until the earlier of the 
     date of which--
       ``(i) the electing corporation abandons its intention to 
     resume operations of the vessel in the United States foreign 
     trade or qualified zone domestic trade, or
       ``(ii) the electing corporation resumes operation of the 
     vessel in the United States foreign trade or qualified zone 
     domestic trade.
       ``(D) No disregard if domestic trade use exceeds 30 days.--
     Subparagraph (A) shall not apply to any qualifying vessel 
     which is operated in the United States domestic trade (other 
     than qualified zone domestic trade) for more than 30 days 
     during the taxable year.
       ``(3) Allocation of income and deductions to qualifying 
     shipping activities.--In the case of a qualifying vessel to 
     which this subsection applies, the Secretary shall prescribe 
     rules for the proper allocation of income, expenses, losses, 
     and deductions between the qualified shipping activities and 
     the other activities of such vessel.
       ``(4) Qualified zone domestic trade.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified zone domestic trade' 
     means the transportation of goods or passengers between 
     places in the qualified zone if such transportation is in the 
     United States domestic trade.
       ``(B) Qualified zone.--The term `qualified zone' means the 
     Great Lakes Waterway and the St. Lawrence Seaway.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 416. USE OF QUALIFIED MORTGAGE BONDS TO FINANCE 
                   RESIDENCES FOR VETERANS WITHOUT REGARD TO 
                   FIRST-TIME HOMEBUYER REQUIREMENT.

       (a) In General.--Section 143(d)(2) (relating to exceptions 
     to 3-year requirement) is amended by striking ``and'' at the 
     end of subparagraph (B), by adding ``and'' at the end of 
     subparagraph (C), and by inserting after subparagraph (C) the 
     following new subparagraph:
       ``(D) in the case of bonds issued after the date of the 
     enactment of this subparagraph and before January 1, 2008, 
     financing of any residence for a veteran (as defined in 
     section 101 of title 38, United States Code), if such veteran 
     has not previously qualified for and received such financing 
     by reason of this subparagraph,''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 417. EXCLUSION OF GAIN FROM SALE OF A PRINCIPAL 
                   RESIDENCE BY CERTAIN EMPLOYEES OF THE 
                   INTELLIGENCE COMMUNITY.

       (a) In General.--Subparagraph (A) of section 121(d)(9) 
     (relating to exclusion of gain from sale of principal 
     residence) is amended by striking ``duty'' and all that 
     follows and inserting ``duty--
       ``(i) as a member of the uniformed services,
       ``(ii) as a member of the Foreign Service of the United 
     States, or
       ``(iii) as an employee of the intelligence community.''.
       (b) Employee of Intelligence Community Defined.--
     Subparagraph (C) of section 121(d)(9) is amended by 
     redesignating clause (iv) as clause (v) and by inserting 
     after clause (iii) the following new clause:
       ``(iv) Employee of intelligence community.--The term 
     `employee of the intelligence community' means an employee 
     (as defined by section 2105 of title 5, United States Code) 
     of--

       ``(I) the Office of the Director of National Intelligence,
       ``(II) the Central Intelligence Agency,
       ``(III) the National Security Agency,
       ``(IV) the Defense Intelligence Agency,
       ``(V) the National Geospatial-Intelligence Agency,
       ``(VI) the National Reconnaissance Office,
       ``(VII) any other office within the Department of Defense 
     for the collection of specialized national intelligence 
     through reconnaissance programs,
       ``(VIII) any of the intelligence elements of the Army, the 
     Navy, the Air Force, the Marine Corps, the Federal Bureau of 
     Investigation, the Department of Treasury, the Department of 
     Energy, and the Coast Guard,
       ``(IX) the Bureau of Intelligence and Research of the 
     Department of State, or
       ``(X) any of the elements of the Department of Homeland 
     Security concerned with the analyses of foreign intelligence 
     information.''.

       (c) Special Rule.--Subparagraph (C) of section 121(d)(9), 
     as amended by subsection (b), is amended by adding at the end 
     the following new clause:
       ``(vi) Special rule relating to intelligence community.--An 
     employee of the intelligence community shall not be treated 
     as serving on qualified extended duty unless such duty is at 
     a duty station located outside the United States.''.
       (d) Conforming Amendment.--The heading for section 
     121(d)(9) is amended to read as follows: ``Uniformed 
     services, foreign service, and intelligence community''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to sales or

[[Page 23143]]

     exchanges after the date of the enactment of this Act and 
     before January 1, 2011.

     SEC. 418. SALE OF PROPERTY BY JUDICIAL OFFICERS.

       (a) In General.--Section 1043(b) (relating to the sale of 
     property to comply with conflict-of-interest requirements) is 
     amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by inserting ``, or a judicial 
     officer,'' after ``an officer or employee of the executive 
     branch''; and
       (B) in subparagraph (B), by inserting ``judicial canon,'' 
     after ``any statute, regulation, rule,'';
       (2) in paragraph (2)--
       (A) in subparagraph (A), by inserting ``judicial canon,'' 
     after ``any Federal conflict of interest statute, regulation, 
     rule,''; and
       (B) in subparagraph (B), by inserting after ``the Director 
     of the Office of Government Ethics,'' the following: ``in the 
     case of executive branch officers or employees, or by the 
     Judicial Conference of the United States (or its designee), 
     in the case of judicial officers,''; and
       (3) in paragraph (5)(B), by inserting ``judicial canon,'' 
     after ``any statute, regulation, rule,''.
       (b) Judicial Officer Defined.--Section 1043(b) is amended 
     by adding at the end the following new paragraph:
       ``(6) Judicial officer.--The term `judicial officer' means 
     the Chief Justice of the United States, the Associate 
     Justices of the Supreme Court, and the judges of the United 
     States courts of appeals, United States district courts, 
     including the district courts in Guam, the Northern Mariana 
     Islands, and the Virgin Islands, Court of Appeals for the 
     Federal Circuit, Court of International Trade, Tax Court, 
     Court of Federal Claims, Court of Appeals for Veterans 
     Claims, United States Court of Appeals for the Armed Forces, 
     and any court created by Act of Congress, the judges of which 
     are entitled to hold office during good behavior.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales after the date of enactment of this Act.

     SEC. 419. PREMIUMS FOR MORTGAGE INSURANCE.

       (a) In General.--Section 163(h)(3) (relating to qualified 
     residence interest) is amended by adding at the end the 
     following new subparagraph:
       ``(E) Mortgage insurance premiums treated as interest.--
       ``(i) In general.--Premiums paid or accrued for qualified 
     mortgage insurance by a taxpayer during the taxable year in 
     connection with acquisition indebtedness with respect to a 
     qualified residence of the taxpayer shall be treated for 
     purposes of this section as interest which is qualified 
     residence interest.
       ``(ii) Phaseout.--The amount otherwise treated as interest 
     under clause (i) shall be reduced (but not below zero) by 10 
     percent of such amount for each $1,000 ($500 in the case of a 
     married individual filing a separate return) (or fraction 
     thereof) that the taxpayer's adjusted gross income for the 
     taxable year exceeds $100,000 ($50,000 in the case of a 
     married individual filing a separate return).
       ``(iii) Limitation.--Clause (i) shall not apply with 
     respect to any mortgage insurance contracts issued before 
     January 1, 2007.
       ``(iv) Termination.--Clause (i) shall not apply to 
     amounts--

       ``(I) paid or accrued after December 31, 2007, or
       ``(II) properly allocable to any period after such date.''.

       (b) Definition and Special Rules.--Section 163(h)(4) 
     (relating to other definitions and special rules) is amended 
     by adding at the end the following new subparagraphs:
       ``(E) Qualified mortgage insurance.--The term `qualified 
     mortgage insurance' means--
       ``(i) mortgage insurance provided by the Veterans 
     Administration, the Federal Housing Administration, or the 
     Rural Housing Administration, and
       ``(ii) private mortgage insurance (as defined by section 2 
     of the Homeowners Protection Act of 1998 (12 U.S.C. 4901), as 
     in effect on the date of the enactment of this subparagraph).
       ``(F) Special rules for prepaid qualified mortgage 
     insurance.--Any amount paid by the taxpayer for qualified 
     mortgage insurance that is properly allocable to any mortgage 
     the payment of which extends to periods that are after the 
     close of the taxable year in which such amount is paid shall 
     be chargeable to capital account and shall be treated as paid 
     in such periods to which so allocated. No deduction shall be 
     allowed for the unamortized balance of such account if such 
     mortgage is satisfied before the end of its term. The 
     preceding sentences shall not apply to amounts paid for 
     qualified mortgage insurance provided by the Veterans 
     Administration or the Rural Housing Administration.''.
       (c) Information Returns Relating to Mortgage Insurance.--
     Section 6050H (relating to returns relating to mortgage 
     interest received in trade or business from individuals) is 
     amended by adding at the end the following new subsection:
       ``(h) Returns Relating to Mortgage Insurance Premiums.--
       ``(1) In general.--The Secretary may prescribe, by 
     regulations, that any person who, in the course of a trade or 
     business, receives from any individual premiums for mortgage 
     insurance aggregating $600 or more for any calendar year, 
     shall make a return with respect to each such individual. 
     Such return shall be in such form, shall be made at such 
     time, and shall contain such information as the Secretary may 
     prescribe.
       ``(2) Statement to be furnished to individuals with respect 
     to whom information is required.--Every person required to 
     make a return under paragraph (1) shall furnish to each 
     individual with respect to whom a return is made a written 
     statement showing such information as the Secretary may 
     prescribe. Such written statement shall be furnished on or 
     before January 31 of the year following the calendar year for 
     which the return under paragraph (1) was required to be made.
       ``(3) Special rules.--For purposes of this subsection--
       ``(A) rules similar to the rules of subsection (c) shall 
     apply, and
       ``(B) the term `mortgage insurance' means--
       ``(i) mortgage insurance provided by the Veterans 
     Administration, the Federal Housing Administration, or the 
     Rural Housing Administration, and
       ``(ii) private mortgage insurance (as defined by section 2 
     of the Homeowners Protection Act of 1998 (12 U.S.C. 4901), as 
     in effect on the date of the enactment of this 
     subsection).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or accrued after December 31, 
     2006.

     SEC. 420. MODIFICATION OF REFUNDS FOR KEROSENE USED IN 
                   AVIATION.

       (a) In General.--Paragraph (4) of section 6427(l) (relating 
     to nontaxable uses of diesel fuel and kerosene) is amended to 
     read as follows:
       ``(4) Refunds for kerosene used in aviation.--
       ``(A) Kerosene used in commercial aviation.--In the case of 
     kerosene used in commercial aviation (as defined in section 
     4083(b)) (other than supplies for vessels or aircraft within 
     the meaning of section 4221(d)(3)), paragraph (1) shall not 
     apply to so much of the tax imposed by section 4041 or 4081, 
     as the case may be, as is attributable to--
       ``(i) the Leaking Underground Storage Tank Trust Fund 
     financing rate imposed by such section, and
       ``(ii) so much of the rate of tax specified in section 
     4041(c) or 4081(a)(2)(A)(iii), as the case may be, as does 
     not exceed 4.3 cents per gallon.
       ``(B) Kerosene used in noncommercial aviation.--In the case 
     of kerosene used in aviation that is not commercial aviation 
     (as so defined) (other than any use which is exempt from the 
     tax imposed by section 4041(c) other than by reason of a 
     prior imposition of tax), paragraph (1) shall not apply to--
       ``(i) any tax imposed by subsection (c) or (d)(2) of 
     section 4041, and
       ``(ii) so much of the tax imposed by section 4081 as is 
     attributable to--

       ``(I) the Leaking Underground Storage Tank Trust Fund 
     financing rate imposed by such section, and
       ``(II) so much of the rate of tax specified in section 
     4081(a)(2)(A)(iii) as does not exceed the rate specified in 
     section 4081(a)(2)(C)(ii).

       ``(C) Payments to ultimate, registered vendor.--
       ``(i) In general.--With respect to any kerosene used in 
     aviation (other than kerosene described in clause (ii) or 
     kerosene to which paragraph (5) applies), if the ultimate 
     purchaser of such kerosene waives (at such time and in such 
     form and manner as the Secretary shall prescribe) the right 
     to payment under paragraph (1) and assigns such right to the 
     ultimate vendor, then the Secretary shall pay the amount 
     which would be paid under paragraph (1) to such ultimate 
     vendor, but only if such ultimate vendor--

       ``(I) is registered under section 4101, and
       ``(II) meets the requirements of subparagraph (A), (B), or 
     (D) of section 6416(a)(1).

       ``(ii) Payments for kerosene used in noncommercial 
     aviation.--The amount which would be paid under paragraph (1) 
     with respect to any kerosene to which subparagraph (B) 
     applies shall be paid only to the ultimate vendor of such 
     kerosene. A payment shall be made to such vendor if such 
     vendor--

       ``(I) is registered under section 4101, and
       ``(II) meets the requirements of subparagraph (A), (B), or 
     (D) of section 6416(a)(1).''.

       (b) Conforming Amendments.--
       (1) Section 6427(l) is amended by striking paragraph (5) 
     and by redesignating paragraph (6) as paragraph (5).
       (2) Section 4082(d)(2)(B) is amended by striking ``section 
     6427(l)(6)(B)'' and inserting ``section 6427(l)(5)(B)''.
       (3) Section 6427(i)(4)(A) is amended--
       (A) by striking ``paragraph (4)(B), (5), or (6)'' each 
     place it appears and inserting ``paragraph (4)(C) or (5)'', 
     and
       (B) by striking ``(l)(5), and (l)(6)'' and inserting 
     ``(l)(4)(C)(ii), and (l)(5)''.
       (4) Section 6427(l)(1) is amended by striking ``paragraph 
     (4)(B)'' and inserting ``paragraph (4)(C)(i)''.
       (5) Section 9502(d) is amended--
       (A) in paragraph (2), by striking ``and (l)(5)'', and
       (B) in paragraph (3), by striking ``or (5)''.
       (6) Section 9503(c)(7) is amended--
       (A) by amending subparagraphs (A) and (B) to read as 
     follows:

[[Page 23144]]

       ``(A) 4.3 cents per gallon of kerosene subject to section 
     6427(l)(4)(A) with respect to which a payment has been made 
     by the Secretary under section 6427(l), and
       ``(B) 21.8 cents per gallon of kerosene subject to section 
     6427(l)(4)(B) with respect to which a payment has been made 
     by the Secretary under section 6427(l).'', and
       (B) in the matter following subparagraph (B), by striking 
     ``or (5)''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to kerosene sold after September 30, 2005.
       (2) Special rule for pending claims.--In the case of 
     kerosene sold for use in aviation (other than kerosene to 
     which section 6427(l)(4)(C)(ii) of the Internal Revenue Code 
     of 1986 (as added by subsection (a)) applies or kerosene to 
     which section 6427(l)(5) of such Code (as redesignated by 
     subsection (b)) applies) after September 30, 2005, and before 
     the date of the enactment of this Act, the ultimate purchaser 
     shall be treated as having waived the right to payment under 
     section 6427(l)(1) of such Code and as having assigned such 
     right to the ultimate vendor if such ultimate vendor has met 
     the requirements of subparagraph (A), (B), or (D) of section 
     6416(a)(1) of such Code.
       (d) Special Rule for Kerosene Used in Aviation on a Farm 
     for Farming Purposes.--
       (1) Refunds for purchases after december 31, 2004, and 
     before october 1, 2005.-- The Secretary of the Treasury shall 
     pay to the ultimate purchaser of any kerosene which is used 
     in aviation on a farm for farming purposes and which was 
     purchased after December 31, 2004, and before October 1, 
     2005, an amount equal to the aggregate amount of tax imposed 
     on such fuel under section 4041 or 4081 of the Internal 
     Revenue Code of 1986, as the case may be, reduced by any 
     payment to the ultimate vendor under section 6427(l)(5)(C) of 
     such Code (as in effect on the day before the date of the 
     enactment of the Safe, Accountable, Flexible, Efficient 
     Transportation Equity Act: a Legacy for Users).
       (2) Use on a farm for farming purposes.--For purposes of 
     paragraph (1), kerosene shall be treated as used on a farm 
     for farming purposes if such kerosene is used for farming 
     purposes (within the meaning of section 6420(c)(3) of the 
     Internal Revenue Code of 1986) in carrying on a trade or 
     business on a farm situated in the United States. For 
     purposes of the preceding sentence, rules similar to the 
     rules of section 6420(c)(4) of such Code shall apply.
       (3) Time for filing claims.--No claim shall be allowed 
     under paragraph (1) unless the ultimate purchaser files such 
     claim before the date that is 3 months after the date of the 
     enactment of this Act.
       (4) No double benefit.--No amount shall be paid under 
     paragraph (1) or section 6427(l) of the Internal Revenue Code 
     of 1986 with respect to any kerosene described in paragraph 
     (1) to the extent that such amount is in excess of the tax 
     imposed on such kerosene under section 4041 or 4081 of such 
     Code, as the case may be.
       (5) Applicable laws.--For purposes of this subsection, 
     rules similar to the rules of section 6427(j) of the Internal 
     Revenue Code of 1986 shall apply.

     SEC. 421. REGIONAL INCOME TAX AGENCIES TREATED AS STATES FOR 
                   PURPOSES OF CONFIDENTIALITY AND DISCLOSURE 
                   REQUIREMENTS.

       (a) In General.--Paragraph (5) of section 6103(b) is 
     amended to read as follows:
       ``(5) State.--
       ``(A) In general.--The term `State' means--
       ``(i) any of the 50 States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the Virgin Islands, the Canal 
     Zone, Guam, American Samoa, and the Commonwealth of the 
     Northern Mariana Islands,
       ``(ii) for purposes of subsections (a)(2), (b)(4), (d)(1), 
     (h)(4), and (p), any municipality--

       ``(I) with a population in excess of 250,000 (as determined 
     under the most recent decennial United States census data 
     available),
       ``(II) which imposes a tax on income or wages, and
       ``(III) with which the Secretary (in his sole discretion) 
     has entered into an agreement regarding disclosure, and

       ``(iii) for purposes of subsections (a)(2), (b)(4), (d)(1), 
     (h)(4), and (p), any governmental entity--

       ``(I) which is formed and operated by a qualified group of 
     municipalities, and
       ``(II) with which the Secretary (in his sole discretion) 
     has entered into an agreement regarding disclosure.

       ``(B) Regional income tax agencies.--For purposes of 
     subparagraph (A)(iii)--
       ``(i) Qualified group of municipalities.--The term 
     `qualified group of municipalities' means, with respect to 
     any governmental entity, 2 or more municipalities--

       ``(I) each of which imposes a tax on income or wages,
       ``(II) each of which, under the authority of a State 
     statute, administers the laws relating to the imposition of 
     such taxes through such entity, and
       ``(III) which collectively have a population in excess of 
     250,000 (as determined under the most recent decennial United 
     States census data available).

       ``(ii) References to state law, etc.--For purposes of 
     applying subparagraph (A)(iii) to the subsections referred to 
     in such subparagraph, any reference in such subsections to 
     State law, proceedings, or tax returns shall be treated as 
     references to the law, proceedings, or tax returns, as the 
     case may be, of the municipalities which form and operate the 
     governmental entity referred to in such subparagraph.
       ``(iii) Disclosure to contractors and other agents.--
     Notwithstanding any other provision of this section, no 
     return or return information shall be disclosed to any 
     contractor or other agent of a governmental entity referred 
     to in subparagraph (A)(iii) unless such entity, to the 
     satisfaction of the Secretary--

       ``(I) has requirements in effect which require each such 
     contractor or other agent which would have access to returns 
     or return information to provide safeguards (within the 
     meaning of subsection (p)(4)) to protect the confidentiality 
     of such returns or return information,
       ``(II) agrees to conduct an on-site review every 3 years 
     (or a mid-point review in the case of contracts or agreements 
     of less than 3 years in duration) of each contractor or other 
     agent to determine compliance with such requirements,
       ``(III) submits the findings of the most recent review 
     conducted under subclause (II) to the Secretary as part of 
     the report required by subsection (p)(4)(E), and
       ``(IV) certifies to the Secretary for the most recent 
     annual period that such contractor or other agent is in 
     compliance with all such requirements.

     The certification required by subclause (IV) shall include 
     the name and address of each contractor and other agent, a 
     description of the contract or agreement with such contractor 
     or other agent, and the duration of such contract or 
     agreement. The requirements of this clause shall not apply to 
     disclosures pursuant to subsection (n) for purposes of 
     Federal tax administration and a rule similar to the rule of 
     subsection (p)(8)(B) shall apply for purposes of this 
     clause.''.
       (b) Special Rules for Disclosure.--Subsection (d) of 
     section 6103 is amended by adding at the end the following 
     new paragraph:
       ``(6) Limitation on disclosure regarding regional income 
     tax agencies treated as states.--For purposes of paragraph 
     (1), inspection by or disclosure to an entity described in 
     subsection (b)(5)(A)(iii) shall be for the purpose of, and 
     only to the extent necessary in, the administration of the 
     laws of the member municipalities in such entity relating to 
     the imposition of a tax on income or wages. Such entity may 
     not redisclose any return or return information received 
     pursuant to paragraph (1) to any such member municipality.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to disclosures made after December 31, 2006.

     SEC. 422. DESIGNATION OF WINES BY SEMI-GENERIC NAMES.

       (a) In General.--Subsection (c) of section 5388 (relating 
     to use of semi-generic designations) is amended by adding at 
     the end the following new paragraph:
       ``(3) Special rule for use of certain semi-generic 
     designations.--
       ``(A) In general.--In the case of any wine to which this 
     paragraph applies--
       ``(i) paragraph (1) shall not apply,
       ``(ii) in the case of wine of the European Community, 
     designations referred to in subparagraph (C)(i) may be used 
     for such wine only if the requirement of subparagraph (B)(ii) 
     is met, and
       ``(iii) in the case any other wine bearing a brand name, or 
     brand name and fanciful name, semi-generic designations may 
     be used for such wine only if the requirements of clauses 
     (i), (ii), and (iii) of subparagraph (B) are met.
       ``(B) Requirements.--
       ``(i) The requirement of this clause is met if there 
     appears in direct conjunction with the semi-generic 
     designation an appropriate appellation of origin disclosing 
     the origin of the wine.
       ``(ii) The requirement of this clause is met if the wine 
     conforms to the standard of identity, if any, for such wine 
     contained in the regulations under this section or, if there 
     is no such standard, to the trade understanding of such class 
     or type.
       ``(iii) The requirement of this clause is met if the 
     person, or its successor in interest, using the semi-generic 
     designation held a Certificate of Label Approval or 
     Certificate of Exemption from Label Approval issued by the 
     Secretary for a wine label bearing such brand name, or brand 
     name and fanciful name, before March 10, 2006, on which such 
     semi-generic designation appeared.
       ``(C) Wines to which paragraph applies.--
       ``(i) In general.--Except as provided in clause (ii), this 
     paragraph shall apply to any grape wine which is designated 
     as Burgundy, Claret, Chablis, Champagne, Chianti, Malaga, 
     Marsala, Madeira, Moselle, Port, Retsina, Rhine Wine or Hock, 
     Sauterne, Haut Sauterne, Sherry, or Tokay.
       ``(ii) Exception.--This paragraph shall not apply to wine 
     which--

       ``(I) contains less than 7 percent or more than 24 percent 
     alcohol by volume,
       ``(II) is intended for sale outside the United States, or

[[Page 23145]]

       ``(III) does not bear a brand name.''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to wine imported or bottled in the United States 
     on or after the date of enactment of this Act.

     SEC. 423. MODIFICATION OF RAILROAD TRACK MAINTENANCE CREDIT.

       (a) In General.--Section 45G(d) (defining qualified 
     railroad track maintenance expenditures) is amended--
       (1) by inserting ``gross'' after ``means'', and
       (2) by inserting ``(determined without regard to any 
     consideration for such expenditures given by the Class II or 
     Class III railroad which made the assignment of such track)'' 
     after ``Class II or Class III railroad''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the amendment made by 
     section 245(a) of the American Jobs Creation Act of 2004.

     SEC. 424. MODIFICATION OF EXCISE TAX ON UNRELATED BUSINESS 
                   TAXABLE INCOME OF CHARITABLE REMAINDER TRUSTS.

       (a) In General.--Subsection (c) of section 664 (relating to 
     exemption from income taxes) is amended to read as follows:
       ``(c) Taxation of Trusts.--
       ``(1) Income tax.--A charitable remainder annuity trust and 
     a charitable remainder unitrust shall, for any taxable year, 
     not be subject to any tax imposed by this subtitle.
       ``(2) Excise tax.--
       ``(A) In general.--In the case of a charitable remainder 
     annuity trust or a charitable remainder unitrust which has 
     unrelated business taxable income (within the meaning of 
     section 512, determined as if part III of subchapter F 
     applied to such trust) for a taxable year, there is hereby 
     imposed on such trust or unitrust an excise tax equal to the 
     amount of such unrelated business taxable income.
       ``(B) Certain rules to apply.--The tax imposed by 
     subparagraph (A) shall be treated as imposed by chapter 42 
     for purposes of this title other than subchapter E of chapter 
     42.
       ``(C) Tax court proceedings.--For purposes of this 
     paragraph, the references in section 6212(c)(1) to section 
     4940 shall be deemed to include references to this 
     paragraph.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 425. LOANS TO QUALIFIED CONTINUING CARE FACILITIES MADE 
                   PERMANENT.

       (a) In General.--Subsection (h) of section 7872 (relating 
     to exception for loans to qualified continuing care 
     facilities) is amended by striking paragraph (4).
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 209 of the Tax 
     Increase Prevention and Reconciliation Act of 2005.

     SEC. 426. TECHNICAL CORRECTIONS.

       (a) Technical Correction Relating to Look-Through Treatment 
     of Payments Between Related Controlled Foreign Corporations 
     Under the Foreign Personal Holding Company Rules.--
       (1) In general.--
       (A) The first sentence of section 954(c)(6)(A) is amended 
     by striking ``which is not subpart F income'' and inserting 
     ``which is neither subpart F income nor income treated as 
     effectively connected with the conduct of a trade or business 
     in the United States''.
       (B) Section 954(c)(6)(A) is amended by striking the last 
     sentence and inserting the following: ``The Secretary shall 
     prescribe such regulations as may be necessary or appropriate 
     to carry out this paragraph, including such regulations as 
     may be necessary or appropriate to prevent the abuse of the 
     purposes of this paragraph.''
       (2) Effective date.--The amendments made by this subsection 
     shall take effect as if included in section 103(b) of the Tax 
     Increase Prevention and Reconciliation Act of 2005.
       (b) Technical Correction Regarding Authority to Exercise 
     Reasonable Cause and Good Faith Exception.--
       (1) In general.--Section 903(d)(2)(B)(iii) of the American 
     Jobs Creation Act of 2004, as amended by section 303(a) of 
     the Gulf Opportunity Zone Act of 2005, is amended by 
     inserting ``or the Secretary's delegate'' after ``the 
     Secretary of the Treasury''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect as if included in the provisions of the 
     American Jobs Creation Act of 2004 to which it relates.

            DIVISION B--MEDICARE AND OTHER HEALTH PROVISIONS

     SEC. 1. SHORT TITLE OF DIVISION.

       This division may be cited as the ``Medicare Improvements 
     and Extension Act of 2006''.

        TITLE I--MEDICARE IMPROVED QUALITY AND PROVIDER PAYMENTS

     SEC. 101. PHYSICIAN PAYMENT AND QUALITY IMPROVEMENT.

       (a) One-Year Increase in Medicare Physician Fee Schedule 
     Conversion Factor.--Section 1848(d) of the Social Security 
     Act (42 U.S.C. 1395w-4(d)) is amended by adding at the end 
     the following new paragraph:
       ``(7) Conversion factor for 2007.--
       ``(A) In general.--The conversion factor that would 
     otherwise be applicable under this subsection for 2007 shall 
     be the amount of such conversion factor divided by the 
     product of--
       ``(i) 1 plus the Secretary's estimate of the percentage 
     increase in the MEI (as defined in section 1842(i)(3)) for 
     2007 (divided by 100); and
       ``(ii) 1 plus the Secretary's estimate of the update 
     adjustment factor under paragraph (4)(B) for 2007.
       ``(B) No effect on computation of conversion factor for 
     2008.--The conversion factor under this subsection shall be 
     computed under paragraph (1)(A) for 2008 as if subparagraph 
     (A) had never applied.''.
       (b) Quality Reporting System.--Section 1848 of the Social 
     Security Act (42 U.S.C. 1395w-4) is amended by adding at the 
     end the following new subsection:
       ``(k) Quality Reporting System.--
       ``(1) In general.--The Secretary shall implement a system 
     for the reporting by eligible professionals of data on 
     quality measures specified under paragraph (2). Such data 
     shall be submitted in a form and manner specified by the 
     Secretary (by program instruction or otherwise), which may 
     include submission of such data on claims under this part.
       ``(2) Use of consensus-based quality measures.--
       ``(A) For 2007.--
       ``(i) In general.--For purposes of applying this subsection 
     for the reporting of data on quality measures for covered 
     professional services furnished during the period beginning 
     July 1, 2007, and ending December 31, 2007, the quality 
     measures specified under this paragraph are the measures 
     identified as 2007 physician quality measures under the 
     Physician Voluntary Reporting Program as published on the 
     public website of the Centers for Medicare & Medicaid 
     Services as of the date of the enactment of this subsection, 
     except as may be changed by the Secretary based on the 
     results of a consensus-based process in January of 2007, if 
     such change is published on such website by not later than 
     April 1, 2007.
       ``(ii) Subsequent refinements in application permitted.--
     The Secretary may, from time to time (but not later than July 
     1, 2007), publish on such website (without notice or 
     opportunity for public comment) modifications or refinements 
     (such as code additions, corrections, or revisions) for the 
     application of quality measures previously published under 
     clause (i), but may not, under this clause, change the 
     quality measures under the reporting system.
       ``(iii) Implementation.--Notwithstanding any other 
     provision of law, the Secretary may implement by program 
     instruction or otherwise this subsection for 2007.
       ``(B) For 2008.--
       ``(i) In general.--For purposes of reporting data on 
     quality measures for covered professional services furnished 
     during 2008, the quality measures specified under this 
     paragraph for covered professional services shall be measures 
     that have been adopted or endorsed by a consensus 
     organization (such as the National Quality Forum or AQA), 
     that include measures that have been submitted by a physician 
     specialty, and that the Secretary identifies as having used a 
     consensus-based process for developing such measures. Such 
     measures shall include structural measures, such as the use 
     of electronic health records and electronic prescribing 
     technology.
       ``(ii) Proposed set of measures.--Not later than August 15, 
     2007, the Secretary shall publish in the Federal Register a 
     proposed set of quality measures that the Secretary 
     determines are described in clause (i) and would be 
     appropriate for eligible professionals to use to submit data 
     to the Secretary in 2008. The Secretary shall provide for a 
     period of public comment on such set of measures.
       ``(iii) Final set of measures.--Not later than November 15, 
     2007, the Secretary shall publish in the Federal Register a 
     final set of quality measures that the Secretary determines 
     are described in clause (i) and would be appropriate for 
     eligible professionals to use to submit data to the Secretary 
     in 2008.
       ``(3) Covered professional services and eligible 
     professionals defined.--For purposes of this subsection:
       ``(A) Covered professional services.--The term `covered 
     professional services' means services for which payment is 
     made under, or is based on, the fee schedule established 
     under this section and which are furnished by an eligible 
     professional.
       ``(B) Eligible professional.--The term `eligible 
     professional' means any of the following:
       ``(i) A physician.
       ``(ii) A practitioner described in section 1842(b)(18)(C).
       ``(iii) A physical or occupational therapist or a qualified 
     speech-language pathologist.
       ``(4) Use of registry-based reporting.--As part of the 
     publication of proposed and final quality measures for 2008 
     under clauses (ii) and (iii) of paragraph (2)(B), the 
     Secretary shall address a mechanism whereby an eligible 
     professional may provide data on quality measures through an 
     appropriate medical registry (such as the Society of Thoracic 
     Surgeons National Database), as identified by the Secretary.
       ``(5) Identification units.--For purposes of applying this 
     subsection, the Secretary may

[[Page 23146]]

     identify eligible professionals through billing units, which 
     may include the use of the Provider Identification Number, 
     the unique physician identification number (described in 
     section 1833(q)(1)), the taxpayer identification number, or 
     the National Provider Identifier. For purposes of applying 
     this subsection for 2007, the Secretary shall use the 
     taxpayer identification number as the billing unit.
       ``(6) Education and outreach.--The Secretary shall provide 
     for education and outreach to eligible professionals on the 
     operation of this subsection.
       ``(7) Limitations on review.--There shall be no 
     administrative or judicial review under section 1869, section 
     1878, or otherwise, of the development and implementation of 
     the reporting system under paragraph (1), including 
     identification of quality measures under paragraph (2) and 
     the application of paragraphs (4) and (5).
       ``(8) Implementation.--The Secretary shall carry out this 
     subsection acting through the Administrator of the Centers 
     for Medicare & Medicaid Services.''.
       (c) Transitional Bonus Incentive Payments for Quality 
     Reporting in 2007.--
       (1) In general.--With respect to covered professional 
     services furnished during a reporting period (as defined in 
     paragraph (6)(C)) by an eligible professional, if--
       (A) there are any quality measures that have been 
     established under the physician reporting system that are 
     applicable to any such services furnished by such 
     professional for such period, and
       (B) the eligible professional satisfactorily submits (as 
     determined under paragraph (2)) to the Secretary data on such 
     quality measures in accordance with such reporting system for 
     such reporting period,

     in addition to the amount otherwise paid under part B of 
     title XVIII of the Social Security Act, subject to paragraph 
     (3), there also shall be paid to the eligible professional 
     (or to an employer or facility in the cases described in 
     clause (A) of section 1842(b)(6) of the Social Security Act 
     (42 U.S.C. 1395u(b)(6))) from the Federal Supplementary 
     Medical Insurance Trust Fund established under section 1841 
     of such Act (42 U.S.C. 1395t) an amount equal to 1.5 percent 
     of the Secretary's estimate (based on claims submitted not 
     later than two months after the end of the reporting period) 
     of the allowed charges under such part for all such covered 
     professional services furnished during the reporting period.
       (2) Satisfactory reporting described.--For purposes of 
     paragraph (1), an eligible professional shall be treated as 
     satisfactorily submitting data on quality measures for 
     covered professional services for a reporting period if 
     quality measures have been reported as follows:
       (A) Three or fewer quality measures applicable.--If there 
     are no more than 3 quality measures that are provided under 
     the physician reporting system and that are applicable to 
     such services of such professional furnished during the 
     period, each such quality measure has been reported under 
     such system in at least 80 percent of the cases in which such 
     measure is reportable under the system.
       (B) Four or more quality measures applicable.--If there are 
     4 or more quality measures that are provided under the 
     physician reporting system and that are applicable to such 
     services of such professional furnished during the period, at 
     least 3 such quality measures have been reported under such 
     system in at least 80 percent of the cases in which the 
     respective measure is reportable under the system.
       (3) Payment limitation.--
       (A) In general.--In no case shall the total payment made 
     under this subsection to an eligible professional (or to an 
     employer or facility in the cases described in clause (A) of 
     section 1842(b)(6) of the Social Security Act) exceed the 
     product of--
       (i) the total number of quality measures for which data are 
     submitted under the physician reporting system for covered 
     professional services of such professional that are furnished 
     during the reporting period; and
       (ii) 300 percent of the average per measure payment amount 
     specified in subparagraph (B).
       (B) Average per measure payment amount specified.--The 
     average per measure payment amount specified in this 
     subparagraph is an amount, estimated by the Secretary (based 
     on claims submitted not later than two months after the end 
     of the reporting period), equal to--
       (i) the total of the amount of allowed charges under part B 
     of title XVIII of the Social Security Act for all covered 
     professional services furnished during the reporting period 
     on claims for which quality measures are reported under the 
     physician reporting system; divided by
       (ii) the total number of quality measures for which data 
     are reported under such system for covered professional 
     services furnished during the reporting period.
       (4) Form of payment.--The payment under this subsection 
     shall be in the form of a single consolidated payment.
       (5) Application.--
       (A) Physician reporting system rules.--Paragraphs (5), (6), 
     and (8) of section 1848(k) of the Social Security Act, as 
     added by subsection (b), shall apply for purposes of this 
     subsection in the same manner as they apply for purposes of 
     such section.
       (B) Coordination with other bonus payments.--The provisions 
     of this subsection shall not be taken into account in 
     applying subsections (m) and (u) of section 1833 of the 
     Social Security Act (42 U.S.C. 1395l) and any payment under 
     such subsections shall not be taken into account in computing 
     allowable charges under this subsection.
       (C) Implementation.--Notwithstanding any other provision of 
     law, the Secretary may implement by program instruction or 
     otherwise this subsection.
       (D) Validation.--
       (i) In general.--Subject to the succeeding provisions of 
     this subparagraph, for purposes of determining whether a 
     measure is applicable to the covered professional services of 
     an eligible professional under paragraph (2), the Secretary 
     shall presume that if an eligible professional submits data 
     for a measure, such measure is applicable to such 
     professional.
       (ii) Method.-- The Secretary shall validate (by sampling or 
     other means as the Secretary determines to be appropriate) 
     whether measures applicable to covered professional services 
     of an eligible professional have been reported.
       (iii) Denial of payment authority.--If the Secretary 
     determines that an eligible professional has not reported 
     measures applicable to covered professional services of such 
     professional, the Secretary shall not pay the bonus incentive 
     payment.
       (E) Limitations on review.--
       (i) In general.--There shall be no administrative or 
     judicial review under section 1869 or 1878 of the Social 
     Security Act or otherwise of--

       (I) the determination of measures applicable to services 
     furnished by eligible professionals under this subsection;
       (II) the determination of satisfactory reporting under 
     paragraph (2);
       (III) the determination of the payment limitation under 
     paragraph (3); and
       (IV) the determination of the bonus incentive payment under 
     this subsection.

       (ii) Treatment of determinations.--A determination under 
     this subsection shall not be treated as a determination for 
     purposes of section 1869 of the Social Security Act.
       (6) Definitions.--For purposes of this subsection:
       (A) Eligible professional; covered professional services.--
     The terms ``eligible professional'' and ``covered 
     professional services'' have the meanings given such terms in 
     section 1848(k)(3) of the Social Security Act, as added by 
     subsection (b).
       (B) Physician reporting system.--The term ``physician 
     reporting system'' means the system established under section 
     1848(k) of the Social Security Act, as added by subsection 
     (b).
       (C) Reporting period.--The term ``reporting period'' means 
     the period beginning on July 1, 2007, and ending on December 
     31, 2007.
       (D) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (d) Physician Assistance and Quality Initiative Fund.--
     Section 1848 of the Social Security Act, as amended by 
     subsection (b), is further amended by adding at the end the 
     following new subsection:
       ``(l) Physician Assistance and Quality Initiative Fund.--
       ``(1) Establishment.--The Secretary shall establish under 
     this subsection a Physician Assistance and Quality Initiative 
     Fund (in this subsection referred to as the `Fund') which 
     shall be available to the Secretary for physician payment and 
     quality improvement initiatives, which may include 
     application of an adjustment to the update of the conversion 
     factor under subsection (d).
       ``(2) Funding.--
       ``(A) Amount available.--There shall be available to the 
     Fund for expenditures an amount equal to $1,350,000,000.
       ``(B) Timely obligation of all available funds for services 
     furnished during 2008.--The Secretary shall provide for 
     expenditures from the Fund in a manner designed to provide 
     (to the maximum extent feasible) for the obligation of the 
     entire amount specified in subparagraph (A) for payment with 
     respect to physicians' services furnished during 2008.
       ``(C) Payment from trust fund.--The amount specified in 
     subparagraph (A) shall be available to the Fund, as 
     expenditures are made from the Fund, from the Federal 
     Supplementary Medical Insurance Trust Fund under section 
     1841.
       ``(D) Funding limitation.--Amounts in the Fund shall be 
     available in advance of appropriations in accordance with 
     subparagraph (B) but only if the total amount obligated from 
     the Fund does not exceed the amount available to the Fund 
     under subparagraph (A). The Secretary may obligate funds from 
     the Fund only if the Secretary determines (and the Chief 
     Actuary of the Centers for Medicare & Medicaid Services and 
     the appropriate budget officer certify) that there are 
     available in the Fund sufficient amounts to cover all such 
     obligations incurred consistent with the previous sentence.
       ``(E) Construction.--In the case that expenditures from the 
     Fund are applied to, or otherwise affect, a conversion factor 
     under

[[Page 23147]]

     subsection (d) for a year, the conversion factor under such 
     subsection shall be computed for a subsequent year as if such 
     application or effect had never occurred.''.
       (e) Implementation.--For purposes of implementing the 
     provisions of, and amendments made by, this section, the 
     Secretary of Health and Human Services shall provide for the 
     transfer, from the Federal Supplementary Medical Insurance 
     Trust Fund established under section 1841 of the Social 
     Security Act (42 U.S.C. 1395t), of $60,000,000 to the Centers 
     for Medicare & Medicaid Services Program Management Account 
     for the period of fiscal years 2007, 2008, and 2009.

     SEC. 102. EXTENSION OF FLOOR ON MEDICARE WORK GEOGRAPHIC 
                   ADJUSTMENT.

       Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 
     1395w-4(e)(1)(E)) is amended by striking ``before January 1, 
     2007'' and inserting ``before January 1, 2008''.

     SEC. 103. UPDATE TO THE COMPOSITE RATE COMPONENT OF THE BASIC 
                   CASE-MIX ADJUSTED PROSPECTIVE PAYMENT SYSTEM 
                   FOR DIALYSIS SERVICES.

       (a) In General.--Section 1881(b)(12)(G) of the Social 
     Security Act (42 U.S.C. 1395rr(b)(12)(G)) is amended to read 
     as follows:
       ``(G) The Secretary shall increase the amount of the 
     composite rate component of the basic case-mix adjusted 
     system under subparagraph (B) for dialysis services--
       ``(i) furnished on or after January 1, 2006, and before 
     April 1, 2007, by 1.6 percent above the amount of such 
     composite rate component for such services furnished on 
     December 31, 2005; and
       ``(ii) furnished on or after April 1, 2007, by 1.6 percent 
     above the amount of such composite rate component for such 
     services furnished on March 31, 2007.''.
       (b) GAO Report on Home Dialysis Payment.--Not later than 
     January 1, 2009, the Comptroller General of the United States 
     shall submit to Congress a report on the costs for home 
     hemodialysis treatment and patient training for both home 
     hemodialysis and peritoneal dialysis. Such report shall also 
     include recommendations for a payment methodology for payment 
     under section 1881 of the Social Security Act (42 U.S.C. 
     1395rr) that measures, and is based on, the costs of 
     providing such services and takes into account the case mix 
     of patients.

     SEC. 104. EXTENSION OF TREATMENT OF CERTAIN PHYSICIAN 
                   PATHOLOGY SERVICES UNDER MEDICARE.

       Section 542(c) of the Medicare, Medicaid, and SCHIP 
     Benefits Improvement and Protection Act of 2000 (as enacted 
     into law by section 1(a)(6) of Public Law 106-554), as 
     amended by section 732 of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003 (Public Law 108-
     173), is amended by striking ``and 2006'' and inserting ``, 
     2006, and 2007''.

     SEC. 105. EXTENSION OF MEDICARE REASONABLE COSTS PAYMENTS FOR 
                   CERTAIN CLINICAL DIAGNOSTIC LABORATORY TESTS 
                   FURNISHED TO HOSPITAL PATIENTS IN CERTAIN RURAL 
                   AREAS.

       Effective as if included in the enactment of section 416 of 
     the Medicare Prescription Drug, Improvement, and 
     Modernization Act of 2003 (42 U.S.C. 1395l-4), subsection (b) 
     of such section is amended by striking ``2-year period'' and 
     inserting ``3-year period''.

     SEC. 106. HOSPITAL MEDICARE REPORTS AND CLARIFICATIONS.

       (a) Correction of Mid-Year Reclassification Expiration.--
     Notwithstanding any other provision of law, in the case of a 
     subsection (d) hospital (as defined for purposes of section 
     1886 of the Social Security Act (42 U.S.C. 1395ww)) with 
     respect to which a reclassification of its wage index for 
     purposes of such section would (but for this subsection) 
     expire on March 31, 2007, such reclassification of such 
     hospital shall be extended through September 30, 2007. The 
     previous sentence shall not be effected in a budget-neutral 
     manner.
       (b) Revision of the Medicare Wage Index Classification 
     System.--
       (1) Medpac report.--
       (A) In general.--The Medicare Payment Advisory Commission 
     shall submit to Congress, by not later than June 30, 2007, a 
     report on its study of the wage index classification system 
     applied under Medicare prospective payment systems, including 
     under section 1886(d)(3)(E) of the Social Security Act (42 
     U.S.C. 1395ww(d)(3)(E)). Such report shall include any 
     alternatives the Commission recommends to the method to 
     compute the wage index under such section.
       (B) Funding.--Out of any funds in the Treasury not 
     otherwise appropriated, there are appropriated to the 
     Medicare Payment Advisory Commission, $2,000,000 for fiscal 
     year 2007 to carry out this paragraph.
       (2) Proposal to revise the hospital wage index 
     classification system.-- The Secretary of Health and Human 
     Services, taking into account the recommendations described 
     in the report under paragraph (1), shall include in the 
     proposed rule published under section 1886(e)(5)(A) of the 
     Social Security Act (42 U.S.C. 1395ww(e)(5)(A)) for fiscal 
     year 2009 one or more proposals to revise the wage index 
     adjustment applied under section 1886(d)(3)(E) of such Act 
     (42 U.S.C. 1395ww(d)(3)(E)) for purposes of the Medicare 
     prospective payment system for inpatient hospital services. 
     Such proposal (or proposals) shall consider each of the 
     following:
       (A) Problems associated with the definition of labor 
     markets for purposes of such wage index adjustment.
       (B) The modification or elimination of geographic 
     reclassifications and other adjustments.
       (C) The use of Bureau of Labor Statistics data, or other 
     data or methodologies, to calculate relative wages for each 
     geographic area involved.
       (D) Minimizing variations in wage index adjustments between 
     and within Metropolitan Statistical Areas and Statewide rural 
     areas.
       (E) The feasibility of applying all components of the 
     proposal to other settings, including home health agencies 
     and skilled nursing facilities.
       (F) Methods to minimize the volatility of wage index 
     adjustments, while maintaining the principle of budget 
     neutrality in applying such adjustments.
       (G) The effect that the implementation of the proposal 
     would have on health care providers and on each region of the 
     country.
       (H) Methods for implementing the proposal, including 
     methods to phase-in such implementation.
       (I) Issues relating to occupational mix, such as staffing 
     practices and any evidence on the effect on quality of care 
     and patient safety and any recommendations for alternative 
     calculations.
       (c) Elimination of Unnecessary Report.--Section 1886 of the 
     Social Security Act (42 U.S.C. 1395ww) is amended--
       (1) in subsection (d)(4)(C), by striking clause (iv); and
       (2) in subsection (e), by striking paragraph (3).

     SEC. 107. PAYMENT FOR BRACHYTHERAPY.

       (a) Extension of Payment Rule.--Section 1833(t)(16)(C) of 
     the Social Security Act (42 U.S.C. 1395l(t)(16)(C)) is 
     amended by striking ``January 1, 2007'' and inserting 
     ``January 1, 2008''.
       (b) Establishment of Separate Payment Groups.--
       (1) In general.--Section 1833(t)(2)(H) of such Act (42 
     U.S.C. 1395l(t)(2)(H)) is amended by inserting ``and for 
     stranded and non-stranded devices furnished on or after July 
     1, 2007'' before the period at the end.
       (2) Implementation.--The Secretary of Health and Human 
     Services may implement the amendment made by paragraph (1) by 
     program instruction or otherwise.

     SEC. 108. PAYMENT PROCESS UNDER THE COMPETITIVE ACQUISITION 
                   PROGRAM (CAP).

       (a) In General.--Section 1847B(a)(3) of the Social Security 
     Act (42 U.S.C. 1395w-3b(a)(3)) is amended--
       (1) in subparagraph (A)(iii), by striking ``and 
     biologicals'' and all that follows and inserting ``and 
     biologicals shall be made only to such contractor upon 
     receipt of a claim for a drug or biological supplied by the 
     contractor for administration to a beneficiary.''; and
       (2) by adding at the end the following new subparagraph:
       ``(D) Post-payment review process.--The Secretary shall 
     establish (by program instruction or otherwise) a post-
     payment review process (which may include the use of 
     statistical sampling) to assure that payment is made for a 
     drug or biological under this section only if the drug or 
     biological has been administered to a beneficiary. The 
     Secretary shall recoup, offset, or collect any overpayments 
     determined by the Secretary under such process.''.
       (b) Construction.--Nothing in this section shall be 
     construed as--
       (1) requiring the conduct of any additional competition 
     under subsection (b)(1) of section 1847B of the Social 
     Security Act (42 U.S.C. 1395w-3b); or
       (2) requiring any additional process for elections by 
     physicians under subsection (a)(1)(A)(ii) of such section or 
     additional selection by a selecting physician of a contractor 
     under subsection (a)(5) of such section.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply to payment for drugs and biologicals supplied 
     under section 1847B of the Social Security Act (42 U.S.C. 
     1395w-3b)--
       (1) on or after April 1, 2007; and
       (2) on or after July 1, 2006, and before April 1, 2007, for 
     claims that are unpaid as of April 1, 2007.

     SEC. 109. QUALITY REPORTING FOR HOSPITAL OUTPATIENT SERVICES 
                   AND AMBULATORY SURGICAL CENTER SERVICES.

       (a) Outpatient Hospital Services.--
       (1) In general.--Section 1833(t) of the Social Security Act 
     (42 U.S.C. 1395l(t)) is amended--
       (A) in paragraph (3)(C)(iv), by inserting ``subject to 
     paragraph (17),'' after ``For purposes of this 
     subparagraph,''; and
       (B) by adding at the end the following new paragraph:
       ``(17) Quality reporting.--
       ``(A) Reduction in update for failure to report.--
       ``(i) In general.--For purposes of paragraph (3)(C)(iv) for 
     2009 and each subsequent year, in the case of a subsection 
     (d) hospital (as defined in section 1886(d)(1)(B)) that does 
     not submit, to the Secretary in accordance

[[Page 23148]]

     with this paragraph, data required to be submitted on 
     measures selected under this paragraph with respect to such a 
     year, the OPD fee schedule increase factor under paragraph 
     (3)(C)(iv) for such year shall be reduced by 2.0 percentage 
     points.
       ``(ii) Non-cumulative application.--A reduction under this 
     subparagraph shall apply only with respect to the year 
     involved and the Secretary shall not take into account such 
     reduction in computing the OPD fee schedule increase factor 
     for a subsequent year.
       ``(B) Form and manner of submission.--Each subsection (d) 
     hospital shall submit data on measures selected under this 
     paragraph to the Secretary in a form and manner, and at a 
     time, specified by the Secretary for purposes of this 
     paragraph.
       ``(C) Development of outpatient measures.--
       ``(i) In general.--The Secretary shall develop measures 
     that the Secretary determines to be appropriate for the 
     measurement of the quality of care (including medication 
     errors) furnished by hospitals in outpatient settings and 
     that reflect consensus among affected parties and, to the 
     extent feasible and practicable, shall include measures set 
     forth by one or more national consensus building entities.
       ``(ii) Construction.--Nothing in this paragraph shall be 
     construed as preventing the Secretary from selecting measures 
     that are the same as (or a subset of) the measures for which 
     data are required to be submitted under section 
     1886(b)(3)(B)(viii).
       ``(D) Replacement of measures.--For purposes of this 
     paragraph, the Secretary may replace any measures or 
     indicators in appropriate cases, such as where all hospitals 
     are effectively in compliance or the measures or indicators 
     have been subsequently shown not to represent the best 
     clinical practice.
       ``(E) Availability of data.--The Secretary shall establish 
     procedures for making data submitted under this paragraph 
     available to the public. Such procedures shall ensure that a 
     hospital has the opportunity to review the data that are to 
     be made public with respect to the hospital prior to such 
     data being made public. The Secretary shall report quality 
     measures of process, structure, outcome, patients' 
     perspectives on care, efficiency, and costs of care that 
     relate to services furnished in outpatient settings in 
     hospitals on the Internet website of the Centers for Medicare 
     & Medicaid Services.''.
       (2) Conforming amendment.--Section 1886(b)(3)(B)(viii)(III) 
     of such Act (42 U.S.C. 1395ww(b)(3)(B)(viii)(III)) is amended 
     by inserting ``(including medication errors)'' after 
     ``quality of care''.
       (b) Application to Ambulatory Surgical Centers.--Section 
     1833(i) of such Act (42 U.S.C. 1935l(i)) is amended--
       (1) in paragraph (2)(D), by redesignating clause (iv) as 
     clause (v) and by inserting after clause (iii) the following 
     new clause:
       ``(iv) The Secretary may implement such system in a manner 
     so as to provide for a reduction in any annual update for 
     failure to report on quality measures in accordance with 
     paragraph (7).''; and
       (2) by adding at the end the following new paragraph:
       ``(7)(A) For purposes of paragraph (2)(D)(iv), the 
     Secretary may provide, in the case of an ambulatory surgical 
     center that does not submit, to the Secretary in accordance 
     with this paragraph, data required to be submitted on 
     measures selected under this paragraph with respect to a 
     year, any annual increase provided under the system 
     established under paragraph (2)(D) for such year shall be 
     reduced by 2.0 percentage points. A reduction under this 
     subparagraph shall apply only with respect to the year 
     involved and the Secretary shall not take into account such 
     reduction in computing any annual increase factor for a 
     subsequent year.
       ``(B) Except as the Secretary may otherwise provide, the 
     provisions of subparagraphs (B), (C), (D), and (E) of 
     paragraph (17) of section 1833(t) shall apply with respect to 
     services of ambulatory surgical centers under this paragraph 
     in a similar manner to the manner in which they apply under 
     such paragraph and, for purposes of this subparagraph, any 
     reference to a hospital, outpatient setting, or outpatient 
     hospital services is deemed a reference to an ambulatory 
     surgical center, the setting of such a center, or services of 
     such a center, respectively.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to payment for services furnished on or after 
     January 1, 2009.

     SEC. 110. REPORTING OF ANEMIA QUALITY INDICATORS FOR MEDICARE 
                   PART B CANCER ANTI-ANEMIA DRUGS.

       (a) In General.--Section 1842 of the Social Security Act 
     (42 U.S.C. 1395u) is amended by adding at the end the 
     following new subsection:
       ``(u) Each request for payment, or bill submitted, for a 
     drug furnished to an individual for the treatment of anemia 
     in connection with the treatment of cancer shall include (in 
     a form and manner specified by the Secretary) information on 
     the hemoglobin or hematocrit levels for the individual.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to drugs furnished on or after January 1, 2008. 
     The Secretary of Health and Human Services shall address the 
     implementation of such amendment in the rulemaking process 
     under section 1848 of the Social Security Act (42 U.S.C. 
     1395w-4) for payment for physicians' services for 2008, 
     consistent with the previous sentence.

     SEC. 111. CLARIFICATION OF HOSPICE SATELLITE DESIGNATION.

       Notwithstanding any other provision of law, for purposes of 
     calculating the hospice aggregate payment cap for 2004, 2005, 
     and 2006 for a hospice program under section 1814(i)(2)(A) of 
     the Social Security Act (42 U.S.C. 1395f(i)(2)(A)) for 
     hospice care provided on or after November 1, 2003, and 
     before December 27, 2005, Medicare provider number 29-1511 is 
     deemed to be a multiple location of Medicare provider number 
     29-1500.

               TITLE II--MEDICARE BENEFICIARY PROTECTIONS

     SEC. 201. EXTENSION OF EXCEPTIONS PROCESS FOR MEDICARE 
                   THERAPY CAPS.

       Section 1833(g)(5) of the Social Security Act (42 U.S.C. 
     1395l(g)(5)) is amended by striking ``2006'' and inserting 
     ``the period beginning on January 1, 2006, and ending on 
     December 31, 2007,''.

     SEC. 202. PAYMENT FOR ADMINISTRATION OF PART D VACCINES.

       (a) Transition for 2007.--Notwithstanding any other 
     provision of law, in the case of a vaccine that is a covered 
     part D drug under section 1860D-2(e) of the Social Security 
     Act (42 U.S.C. 1395w-102(e)) and that is administered during 
     2007, the administration of such vaccine shall be paid under 
     part B of title XVIII of such Act as if it were the 
     administration of a vaccine described in section 
     1861(s)(10)(B) of such Act (42 U.S.C. 1395w(s)(10)(B)).
       (b) Administration Included in Coverage of Covered Part D 
     Drugs Beginning in 2008.--Section 1860D-2(e)(1) of the Social 
     Security Act (42 U.S.C. 1395w-102(e)(1)) is amended, in the 
     matter following subparagraph (B), by inserting ``(and, for 
     vaccines administered on or after January 1, 2008, its 
     administration)'' after ``Public Health Service Act''.

     SEC. 203. OIG STUDY OF NEVER EVENTS.

       (a) Study.--
       (1) In general.--The Inspector General in the Department of 
     Health and Human Services shall conduct a study on--
       (A) incidences of never events for Medicare beneficiaries, 
     including types of such events and payments by any party for 
     such events;
       (B) the extent to which the Medicare program paid, denied 
     payment, or recouped payment for services furnished in 
     connection with such events and the extent to which 
     beneficiaries paid for such services; and
       (C) the administrative processes of the Centers for 
     Medicare & Medicaid Services to detect such events and to 
     deny or recoup payments for services furnished in connection 
     with such an event.
       (2) Conduct of study.--In conducting the study under 
     paragraph (1), the Inspector General--
       (A) shall audit a representative sample of claims and 
     medical records of Medicare beneficiaries to identify never 
     events and any payment (or recoupment) for services furnished 
     in connection with such events;
       (B) may request access to such claims and records from any 
     Medicare contractor; and
       (C) shall not release individually identifiable information 
     or facility-specific information.
       (b) Report.--Not later than 2 years after the date of the 
     enactment of this Act, the Inspector General shall submit a 
     report to Congress on the study conducted under this section. 
     Such report shall include recommendations for such 
     legislation and administrative action, such as a noncoverage 
     policy or denial of payments, as the Inspector General 
     determines appropriate, including--
       (1) recommendations on processes to identify never events 
     and to deny or recoup payments for services furnished in 
     connection with such events; and
       (2) a recommendation on a potential process (or processes) 
     for public disclosure of never events which--
       (A) will ensure protection of patient privacy; and
       (B) will permit the use of the disclosed information for a 
     root cause analysis to inform the public and the medical 
     community about safety issues involved.
       (c) Funding.--Out of any funds in the Treasury not 
     otherwise appropriated, there are appropriated to the 
     Inspector General of the Department of Health and Human 
     Services $3,000,000 to carry out this section, to be 
     available until January 1, 2010.
       (d) Never Events Defined.--For purposes of this section, 
     the term ``never event'' means an event that is listed and 
     endorsed as a serious reportable event by the National 
     Quality Forum as of November 16, 2006.

     SEC. 204. MEDICARE MEDICAL HOME DEMONSTRATION PROJECT.

       (a) In General.--The Secretary of Health and Human Services 
     (in this section referred to as the ``Secretary'') shall 
     establish under title XVIII of the Social Security Act a 
     medical home demonstration project (in this section referred 
     to as the ``project'') to redesign the health care delivery 
     system to provide targeted, accessible, continuous and 
     coordinated, family-centered care to high-need populations 
     and under which--

[[Page 23149]]

       (1) care management fees are paid to persons performing 
     services as personal physicians; and
       (2) incentive payments are paid to physicians participating 
     in practices that provide services as a medical home under 
     subsection (d).

     For purposes of this subsection, the term ``high-need 
     population'' means individuals with multiple chronic 
     illnesses that require regular medical monitoring, advising, 
     or treatment.
       (b) Details.--
       (1) Duration; scope.--The project shall operate during a 
     period of three years and shall include urban, rural, and 
     underserved areas in a total of no more than 8 States.
       (2) Encouraging participation of small physician 
     practices.--The project shall be designed to include the 
     participation of physicians in practices with fewer than 
     three full-time equivalent physicians, as well as physicians 
     in larger practices particularly in rural and underserved 
     areas.
       (c) Personal Physician Defined.--
       (1) In general.--For purposes of this section, the term 
     ``personal physician'' means a physician (as defined in 
     section 1861(r)(1) of the Social Security Act (42 U.S.C. 
     1395x(r)(1)) who--
       (A) meets the requirements described in paragraph (2); and
       (B) performs the services described in paragraph (3).

     Nothing in this paragraph shall be construed as preventing 
     such a physician from being a specialist or subspecialist for 
     an individual requiring ongoing care for a specific chronic 
     condition or multiple chronic conditions (such as severe 
     asthma, complex diabetes, cardiovascular disease, 
     rheumatologic disorder) or for an individual with a prolonged 
     illness.
       (2) Requirements.--The requirements described in this 
     paragraph for a personal physician are as follows:
       (A) The physician is a board certified physician who 
     provides first contact and continuous care for individuals 
     under the physician's care.
       (B) The physician has the staff and resources to manage the 
     comprehensive and coordinated health care of each such 
     individual.
       (3) Services performed.--A personal physician shall perform 
     or provide for the performance of at least the following 
     services:
       (A) Advocates for and provides ongoing support, oversight, 
     and guidance to implement a plan of care that provides an 
     integrated, coherent, cross-discipline plan for ongoing 
     medical care developed in partnership with patients and 
     including all other physicians furnishing care to the patient 
     involved and other appropriate medical personnel or agencies 
     (such as home health agencies).
       (B) Uses evidence-based medicine and clinical decision 
     support tools to guide decision-making at the point-of-care 
     based on patient-specific factors.
       (C) Uses health information technology, that may include 
     remote monitoring and patient registries, to monitor and 
     track the health status of patients and to provide patients 
     with enhanced and convenient access to health care services.
       (D) Encourages patients to engage in the management of 
     their own health through education and support systems.
       (d) Medical Home Defined.--For purposes of this section, 
     the term ``medical home'' means a physician practice that--
       (1) is in charge of targeting beneficiaries for 
     participation in the project; and
       (2) is responsible for--
       (A) providing safe and secure technology to promote patient 
     access to personal health information;
       (B) developing a health assessment tool for the individuals 
     targeted; and
       (C) providing training programs for personnel involved in 
     the coordination of care.
       (e) Payment Mechanisms.--
       (1) Personal physician care management fee.--Under the 
     project, the Secretary shall provide for payment under 
     section 1848 of the Social Security Act (42 U.S.C. 1395w-4) 
     of a care management fee to personal physicians providing 
     care management under the project. Under such section and 
     using the relative value scale update committee (RUC) process 
     under such section, the Secretary shall develop a care 
     management fee code for such payments and a value for such 
     code.
       (2) Medical home sharing in savings.--The Secretary shall 
     provide for payment under the project of a medical home based 
     on the payment methodology applied to physician group 
     practices under section 1866A of the Social Security Act (42 
     U.S.C. 1395cc-1). Under such methodology, 80 percent of the 
     reductions in expenditures under title XVIII of the Social 
     Security Act resulting from participation of individuals that 
     are attributable to the medical home (as reduced by the total 
     care managements fees paid to the medical home under the 
     project) shall be paid to the medical home. The amount of 
     such reductions in expenditures shall be determined by using 
     assumptions with respect to reductions in the occurrence of 
     health complications, hospitalization rates, medical errors, 
     and adverse drug reactions.
       (3) Source.--Payments paid under the project shall be made 
     from the Federal Supplementary Medical Insurance Trust Fund 
     under section 1841 of the Social Security Act (42 U.S.C. 
     1395t).
       (f) Evaluations and Reports.--
       (1) Annual interim evaluations and reports.--For each year 
     of the project, the Secretary shall provide for an evaluation 
     of the project and shall submit to Congress, by a date 
     specified by the Secretary, a report on the project and on 
     the evaluation of the project for each such year.
       (2) Final evaluation and report.--The Secretary shall 
     provide for an evaluation of the project and shall submit to 
     Congress, not later than one year after completion of the 
     project, a report on the project and on the evaluation of the 
     project.

     SEC. 205. MEDICARE DRA TECHNICAL CORRECTIONS.

       (a) PACE Clarification.--Paragraph (7) of section 5302(c) 
     of the Deficit Reduction Act of 2005 (42 U.S.C. 1395eee note) 
     is amended to read as follows:
       ``(7) Appropriation.--
       ``(A) In general.--Out of funds in the Treasury not 
     otherwise appropriated, there are appropriated to the 
     Secretary $10,000,000 to carry out this subsection for the 
     period of fiscal years 2006 through 2010.
       ``(B) Availability.--Funds appropriated under subparagraph 
     (A) shall remain available for obligation through fiscal year 
     2010.''.
       (b) Miscellaneous Technical Corrections.--
       (1) Correction of margin (section 5001).--Section 
     1886(b)(3)(B) of the Social Security Act (42 U.S.C. 
     1395ww(b)(3)(B)), as amended by section 5001(a) of the 
     Deficit Reduction Act of 2005 (Public Law 109-171), is 
     amended by moving clause (viii) (including subclauses (I) 
     through (VII) of such clause) 6 ems to the left.
       (2) Reference correction (section 5114).--Section 
     5114(a)(2) of the Deficit Reduction Act of 2005 (Public Law 
     109-171), in the matter preceding subparagraph (A), is 
     amended by striking ``1842(b)(6)(F) of such Act (42 U.S.C. 
     1395u(b)(6)(F))'' and inserting ``1842(b)(6) of such Act (42 
     U.S.C. 1395u(b)(6))''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     Deficit Reduction Act of 2005 (Public Law 109-171).

     SEC. 206. LIMITED CONTINUOUS OPEN ENROLLMENT OF ORIGINAL 
                   MEDICARE FEE-FOR-SERVICE ENROLLEES INTO 
                   MEDICARE ADVANTAGE NON-PRESCRIPTION DRUG PLANS.

       (a) In General.--Section 1851(e)(2) of the Social Security 
     Act (42 U.S.C. 1395w-21(e)(2)) is amended by adding at the 
     end the following new subparagraph:
       ``(E) Limited continuous open enrollment of original fee-
     for-service enrollees in medicare advantage non-prescription 
     drug plans.--
       ``(i) In general.--On any date during 2007 or 2008 on which 
     a Medicare Advantage eligible individual is an unenrolled 
     fee-for-service individual (as defined in clause (ii)), the 
     individual may elect under subsection (a)(1) to enroll in a 
     Medicare Advantage plan that is not an MA-PD plan.
       ``(ii) Unenrolled fee-for-service individual defined.--In 
     this subparagraph, the term `unenrolled fee-for-service 
     individual' means, with respect to a date, a Medicare 
     Advantage eligible individual who--

       ``(I) is receiving benefits under this title through 
     enrollment in the original medicare fee-for-service program 
     under parts A and B;
       ``(II) is not enrolled in an MA plan on such date; and
       ``(III) as of such date is not otherwise eligible to elect 
     to enroll in an MA plan.

       ``(iii) Limitation of one change during year.--An 
     individual may exercise the right under clause (i) only once 
     during the year.
       ``(iv) No effect on coverage under a prescription drug 
     plan.--Nothing in this subparagraph shall be construed as 
     permitting an individual exercising the right under clause 
     (i)--

       ``(I) who is enrolled in a prescription drug plan under 
     part D, to disenroll from such plan or to enroll in a 
     different prescription drug plan; or
       ``(II) who is not enrolled in a prescription drug plan, to 
     enroll in such a plan.''.

       (b) Conforming Amendment.--Section 1860D-1(b)(1)(B)(iii) of 
     the Social Security Act (42 U.S.C. 1395w-101(b)(1)(B)(iii)) 
     is amended by striking ``subparagraphs (B) and (C)'' and 
     inserting ``subparagraphs (B), (C), and (E)''.

             TITLE III--MEDICARE PROGRAM INTEGRITY EFFORTS

     SEC. 301. OFFSETTING ADJUSTMENT IN MEDICARE ADVANTAGE 
                   STABILIZATION FUND.

       Section 1858(e)(2)(A)(i) of the Social Security Act (42 
     U.S.C. 1395w-27a(e)(2)(A)(i)) is amended by striking 
     ``2007,'' and ``$10,000,000,000'' and inserting ``2012,'' and 
     ``$3,500,000,000'', respectively.

     SEC. 302. EXTENSION AND EXPANSION OF RECOVERY AUDIT 
                   CONTRACTOR PROGRAM UNDER THE MEDICARE INTEGRITY 
                   PROGRAM.

       (a) In General.--Section 1893 of the Social Security Act 
     (42 U.S.C. 1395ddd) is amended by adding at the end the 
     following new subsection:
       ``(h) Use of Recovery Audit Contractors.--

[[Page 23150]]

       ``(1) In general.--Under the Program, the Secretary shall 
     enter into contracts with recovery audit contractors in 
     accordance with this subsection for the purpose of 
     identifying underpayments and overpayments and recouping 
     overpayments under this title with respect to all services 
     for which payment is made under part A or B. Under the 
     contracts--
       ``(A) payment shall be made to such a contractor only from 
     amounts recovered;
       ``(B) from such amounts recovered, payment--
       ``(i) shall be made on a contingent basis for collecting 
     overpayments; and
       ``(ii) may be made in such amounts as the Secretary may 
     specify for identifying underpayments; and
       ``(C) the Secretary shall retain a portion of the amounts 
     recovered which shall be available to the program management 
     account of the Centers for Medicare & Medicaid Services for 
     purposes of activities conducted under the recovery audit 
     program under this subsection.
       ``(2) Disposition of remaining recoveries.--The amounts 
     recovered under such contracts that are not paid to the 
     contractor under paragraph (1) or retained by the Secretary 
     under paragraph (1)(C) shall be applied to reduce 
     expenditures under parts A and B.
       ``(3) Nationwide coverage.--The Secretary shall enter into 
     contracts under paragraph (1) in a manner so as to provide 
     for activities in all States under such a contract by not 
     later than January 1, 2010.
       ``(4) Audit and recovery periods.--Each such contract shall 
     provide that audit and recovery activities may be conducted 
     during a fiscal year with respect to payments made under part 
     A or B--
       ``(A) during such fiscal year; and
       ``(B) retrospectively (for a period of not more than 4 
     fiscal years prior to such fiscal year).
       ``(5) Waiver.--The Secretary shall waive such provisions of 
     this title as may be necessary to provide for payment of 
     recovery audit contractors under this subsection in 
     accordance with paragraph (1).
       ``(6) Qualifications of contractors.--
       ``(A) In general.--The Secretary may not enter into a 
     contract under paragraph (1) with a recovery audit contractor 
     unless the contractor has staff that has the appropriate 
     clinical knowledge of, and experience with, the payment rules 
     and regulations under this title or the contractor has, or 
     will contract with, another entity that has such 
     knowledgeable and experienced staff.
       ``(B) Ineligibility of certain contractors.--The Secretary 
     may not enter into a contract under paragraph (1) with a 
     recovery audit contractor to the extent the contractor is a 
     fiscal intermediary under section 1816, a carrier under 
     section 1842, or a medicare administrative contractor under 
     section 1874A.
       ``(C) Preference for entities with demonstrated 
     proficiency.--In awarding contracts to recovery audit 
     contractors under paragraph (1), the Secretary shall give 
     preference to those risk entities that the Secretary 
     determines have demonstrated more than 3 years direct 
     management experience and a proficiency for cost control or 
     recovery audits with private insurers, health care providers, 
     health plans, under the Medicaid program under title XIX, or 
     under this title.
       ``(7) Construction relating to conduct of investigation of 
     fraud.--A recovery of an overpayment to a individual or 
     entity by a recovery audit contractor under this subsection 
     shall not be construed to prohibit the Secretary or the 
     Attorney General from investigating and prosecuting, if 
     appropriate, allegations of fraud or abuse arising from such 
     overpayment.
       ``(8) Annual report.--The Secretary shall annually submit 
     to Congress a report on the use of recovery audit contractors 
     under this subsection. Each such report shall include 
     information on the performance of such contractors in 
     identifying underpayments and overpayments and recouping 
     overpayments, including an evaluation of the comparative 
     performance of such contractors and savings to the program 
     under this title.''.
       (b) Access to Coordination of Benefits Contractor 
     Database.--The Secretary of Health and Human Services shall 
     provide for access by recovery audit contractors conducting 
     audit and recovery activities under section 1893(h) of the 
     Social Security Act, as added by subsection (a), to the 
     database of the Coordination of Benefits Contractor of the 
     Centers for Medicare & Medicaid Services with respect to the 
     audit and recovery periods described in paragraph (4) of such 
     section 1893(h).
       (c) Conforming Amendments to Current Demonstration 
     Project.--Section 306 of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003 (Public Law 108-
     173; 117 Stat. 2256) is amended--
       (1) in subsection (b)(2), by striking ``last for not longer 
     than 3 years'' and inserting ``continue until contracts are 
     entered into under section 1893(h) of the Social Security 
     Act''; and
       (2) by striking subsection (f).

     SEC. 303. FUNDING FOR THE HEALTH CARE FRAUD AND ABUSE CONTROL 
                   ACCOUNT.

       (a) Departments of Health and Human Services and Justice.--
       (1) In general.--Section 1817(k)(3)(A)(i) of the Social 
     Security Act (42 U.S.C. 1395i(k)(3)(A)(i)) is amended--
       (A) in the matter preceding subclause (I), by inserting 
     ``until expended'' after ``without further appropriation'';
       (B) in subclause (II), by striking ``and'' at the end;
       (C) in subclause (III)--
       (i) by striking ``for each fiscal year after fiscal year 
     2003'' and inserting ``for each of fiscal years 2004, 2005, 
     and 2006''; and
       (ii) by striking the period at the end and inserting a 
     semicolon; and
       (D) by adding at the end the following new subclauses:

       ``(IV) for each of fiscal years 2007, 2008, 2009, and 2010, 
     the limit under this clause for the preceding fiscal year, 
     increased by the percentage increase in the consumer price 
     index for all urban consumers (all items; United States city 
     average) over the previous year; and
       ``(V) for each fiscal year after fiscal year 2010, the 
     limit under this clause for fiscal year 2010.''.

       (2) Office of the inspector general of the department of 
     health and human services.--Section 1817(k)(3)(A)(ii) of such 
     Act (42 U.S.C. 1395i(k)(3)(A)(ii)) is amended--
       (A) in subclause (VI), by striking ``and'' at the end;
       (B) in subclause (VII)--
       (i) by striking ``for each fiscal year after fiscal year 
     2002'' and inserting ``for each of fiscal years 2003, 2004, 
     2005, and 2006''; and
       (ii) by striking the period at the end and inserting a 
     semicolon; and
       (C) by adding at the end the following new subclauses:

       ``(VIII) for fiscal year 2007, not less than $160,000,000, 
     increased by the percentage increase in the consumer price 
     index for all urban consumers (all items; United States city 
     average) over the previous year;
       ``(IX) for each of fiscal years 2008, 2009, and 2010, not 
     less than the amount required under this clause for the 
     preceding fiscal year, increased by the percentage increase 
     in the consumer price index for all urban consumers (all 
     items; United States city average) over the previous year; 
     and
       ``(X) for each fiscal year after fiscal year 2010, not less 
     than the amount required under this clause for fiscal year 
     2010.''.

       (b) Federal Bureau of Investigation.--Section 1817(k)(3)(B) 
     of the Social Security Act (42 U.S.C. 1395i(k)(3)(B)) is 
     amended--
       (1) in the matter preceding clause (i), by inserting 
     ``until expended'' after ``without further appropriation'';
       (2) in clause (vi), by striking ``and'' at the end;
       (3) in clause (vii)--
       (A) by striking ``for each fiscal year after fiscal year 
     2002'' and inserting ``for each of fiscal years 2003, 2004, 
     2005, and 2006''; and
       (B) by striking the period at the end and inserting a 
     semicolon; and
       (4) by adding at the end the following new clauses:
       ``(viii) for each of fiscal years 2007, 2008, 2009, and 
     2010, the amount to be appropriated under this subparagraph 
     for the preceding fiscal year, increased by the percentage 
     increase in the consumer price index for all urban consumers 
     (all items; United States city average) over the previous 
     year; and
       ``(ix) for each fiscal year after fiscal year 2010, the 
     amount to be appropriated under this subparagraph for fiscal 
     year 2010.''.

     SEC. 304. IMPLEMENTATION FUNDING.

       For purposes of implementing the provisions of, and 
     amendments made by, this title and titles I and II of this 
     division, other than section 203, the Secretary of Health and 
     Human Services shall provide for the transfer, in appropriate 
     part from the Federal Hospital Insurance Trust Fund 
     established under section 1817 of the Social Security Act (42 
     U.S.C. 1395i) and the Federal Supplementary Medical Insurance 
     Trust Fund established under section 1841 of such Act (42 
     U.S.C. 1395t), of $45,000,000 to the Centers for Medicare & 
     Medicaid Services Program Management Account for the period 
     of fiscal years 2007 and 2008.

             TITLE IV--MEDICAID AND OTHER HEALTH PROVISIONS

     SEC. 401. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA) 
                   AND ABSTINENCE EDUCATION PROGRAM.

       Activities authorized by sections 510 and 1925 of the 
     Social Security Act shall continue through June 30, 2007, in 
     the manner authorized for fiscal year 2006, notwithstanding 
     section 1902(e)(1)(A) of such Act, and out of any money in 
     the Treasury of the United States not otherwise appropriated, 
     there are hereby appropriated such sums as may be necessary 
     for such purpose. Grants and payments may be made pursuant to 
     this authority through the third quarter of fiscal year 2007 
     at the level provided for such activities through the third 
     quarter of fiscal year 2006.

     SEC. 402. GRANTS FOR RESEARCH ON VACCINE AGAINST VALLEY 
                   FEVER.

       (a) In General.--In supporting research on the development 
     of vaccines against human diseases, the Secretary of Health 
     and Human Services shall make grants for the purpose of 
     conducting research toward the development of a vaccine 
     against coccidioidomycosis (commonly known as Valley Fever).
       (b) Sunset.--No grant may be made under subsection (a) on 
     or after October 1, 2012. The

[[Page 23151]]

     preceding sentence does not have any legal effect on payments 
     under grants for which amounts appropriated under subsection 
     (c) were obligated prior to such date.
       (c) Authorization of Appropriations.--For the purpose of 
     making grants under subsection (a), there are authorized to 
     be appropriated $40,000,000 for the period of fiscal years 
     2007 through 2012.

     SEC. 403. CHANGE IN THRESHOLD FOR MEDICAID INDIRECT HOLD 
                   HARMLESS PROVISION OF BROAD-BASED HEALTH CARE 
                   TAXES.

       Section 1903(w)(4)(C) of the Social Security Act (42 U.S.C. 
     1396b(w)(4)(C)) is amended--
       (1) by inserting ``(i)'' after ``(C)''; and
       (2) by adding at the end the following:
       ``(ii) For purposes of clause (i), a determination of the 
     existence of an indirect guarantee shall be made under 
     paragraph (3)(i) of section 433.68(f) of title 42, Code of 
     Federal Regulations, as in effect on November 1, 2006, except 
     that for portions of fiscal years beginning on or after 
     January 1, 2008, and before October 1, 2011, `5.5 percent' 
     shall be substituted for `6 percent' each place it 
     appears.''.

     SEC. 404. DSH ALLOTMENTS FOR FISCAL YEAR 2007 FOR TENNESSEE 
                   AND HAWAII.

       Section 1923(f)(6) of the Social Security Act (42 U.S.C. 
     1396r-4(f)(6)) is amended to read as follows:
       ``(6) Allotment adjustments for fiscal year 2007.--
       ``(A) Tennessee.--
       ``(i) In general.--Only with respect to fiscal year 2007, 
     the DSH allotment for Tennessee for such fiscal year, 
     notwithstanding the table set forth in paragraph (2) or the 
     terms of the TennCare Demonstration Project in effect for the 
     State, shall be the greater of--

       ``(I) the amount that the Secretary determines is equal to 
     the Federal medical assistance percentage component 
     attributable to disproportionate share hospital payment 
     adjustments for the demonstration year ending in 2006 that is 
     reflected in the budget neutrality provision of the TennCare 
     Demonstration Project; and
       ``(II) $280,000,000.

       ``(ii) Limitation on amount of payment adjustments eligible 
     for federal financial participation.--Payment under section 
     1903(a) shall not be made to Tennessee with respect to the 
     aggregate amount of any payment adjustments made under this 
     section for hospitals in the State for fiscal year 2007 that 
     is in excess of 30 percent of the DSH allotment for the State 
     for such fiscal year determined pursuant to clause (i).
       ``(iii) State plan amendment.--The Secretary shall permit 
     Tennessee to submit an amendment to its State plan under this 
     title that describes the methodology to be used by the State 
     to identify and make payments to disproportionate share 
     hospitals, including children's hospitals and institutions 
     for mental diseases or other mental health facilities. The 
     Secretary may not approve such plan amendment unless the 
     methodology described in the amendment is consistent with the 
     requirements under this section for making payment 
     adjustments to disproportionate share hospitals. For purposes 
     of demonstrating budget neutrality under the TennCare 
     Demonstration Project, payment adjustments made pursuant to a 
     State plan amendment approved in accordance with this 
     subparagraph shall be considered expenditures under such 
     project.
       ``(iv) Offset of federal share of payment adjustments for 
     fiscal year 2007 against essential access hospital 
     supplemental pool payments under the tenncare demonstration 
     project.--

       ``(I) The total amount of Essential Access Hospital 
     supplemental pool payments that may be made under the 
     TennCare Demonstration Project for fiscal year 2007 shall be 
     reduced on a dollar for dollar basis by the amount of any 
     payments made under section 1903(a) to Tennessee with respect 
     to payment adjustments made under this section for hospitals 
     in the State for such fiscal year.
       ``(II) The sum of the total amount of payments made under 
     section 1903(a) to Tennessee with respect to payment 
     adjustments made under this section for hospitals in the 
     State for fiscal year 2007 and the total amount of Essential 
     Access Hospital supplemental pool payments made under the 
     TennCare Demonstration Project for such fiscal year shall not 
     exceed the State's DSH allotment for such fiscal year 
     established under clause (i).

       ``(B) Hawaii.--
       ``(i) In general.--Only with respect to fiscal year 2007, 
     the DSH allotment for Hawaii for such fiscal year, 
     notwithstanding the table set forth in paragraph (2), shall 
     be $10,000,000.
       ``(ii) State plan amendment.--The Secretary shall permit 
     Hawaii to submit an amendment to its State plan under this 
     title that describes the methodology to be used by the State 
     to identify and make payments to disproportionate share 
     hospitals, including children's hospitals and institutions 
     for mental diseases or other mental health facilities. The 
     Secretary may not approve such plan amendment unless the 
     methodology described in the amendment is consistent with the 
     requirements under this section for making payment 
     adjustments to disproportionate share hospitals.''.

     SEC. 405. CERTAIN MEDICAID DRA TECHNICAL CORRECTIONS.

       (a) Technical Corrections Relating to State Option for 
     Alternative Premiums and Cost Sharing (Sections 6041 Through 
     6043).--
       (1) Clarification of continued application of regular cost 
     sharing rules for individuals with family income not 
     exceeding 100 percent of the poverty line.--Section 1916A of 
     the Social Security Act, as inserted by section 6041(a) of 
     the Deficit Reduction Act of 2005 and amended by sections 
     6042 and 6043 of such Act, is amended--
       (A) in subsection (a)(1)--
       (i) by inserting ``but subject to paragraph (2),'' after 
     ``1902(a)(10)(B),''; and
       (ii) by inserting ``and non-emergency services furnished in 
     a hospital emergency department for which cost sharing may be 
     imposed under subsection (e)'' after ``(c)'';
       (B) by redesignating paragraph (2) of subsection (a) as 
     paragraph (3);
       (C) in subsection (a), by inserting after paragraph (1) the 
     following:
       ``(2) Exemption for individuals with family income not 
     exceeding 100 percent of the poverty line.--
       ``(A) In general.--Paragraph (1) and subsection (d) shall 
     not apply, and sections 1916 and 1902(a)(10)(B) shall 
     continue to apply, in the case of an individual whose family 
     income does not exceed 100 percent of the poverty line 
     applicable to a family of the size involved.
       ``(B) Limit on aggregate cost sharing.--To the extent cost 
     sharing under subsection (c) and (e) or under section 1916 is 
     imposed against individuals described in subparagraph (A), 
     the limitation under subsection (b)(1)(B)(ii) on the total 
     aggregate amount of cost sharing shall apply to such cost 
     sharing for all individuals in a family described in 
     subparagraph (A) in the same manner as such limitations apply 
     to cost sharing and families described in subsection 
     (b)(1)(B)(ii).'';
       (D) in subsections (c)(2)(C) and (e)(2)(C), by inserting 
     ``under subsection (a)(2)(B) or'' after ``cap on cost sharing 
     applied''; and
       (E) in subsection (e)(2)(A), by inserting ``who is not 
     described in subparagraph (B)'' after ``subsection (b)(1)''.
       (2) Clarification of treatment of non-preferred drug and 
     non-emergency cost-sharing.--Such section is further 
     amended--
       (A) in subsections (b)(1) and (b)(2), by striking ``, 
     subject to subsections (c)(2) and (e)(2)(A)'';
       (B) in subsection (c)(1), in the matter preceding 
     subparagraph (A), by striking ``least (or less) costly 
     effective'' and inserting ``most (or more) cost effective'';
       (C) in subsection (c)(1)(B), by striking ``otherwise be 
     imposed under'' and inserting ``be imposed under subsection 
     (a) due to the application of'';
       (D) in subsection (c)(2)(B), by striking ``otherwise not 
     subject to cost sharing due to the application of subsection 
     (b)(3)(B)'' and inserting ``not subject to cost sharing under 
     subsection (a) due to the application of paragraph (1)(B)'';
       (E) in subsection (e)(2)(A)--
       (i) by amending the heading to read as follows: 
     ``Individuals with family income between 100 and 150 percent 
     of the poverty line.--''; and
       (ii) by striking ``under subsection (b)(1)'' and inserting 
     ``under subsection (b)(1)(B)(ii)'';
       (F) in subsection (e)(2)(B), by striking ``who is otherwise 
     not subject to cost sharing under subsection (b)(3)'' and 
     inserting ``described in subsection (a)(2)(A) or who is not 
     subject to cost sharing under subsection (b)(3)(B) with 
     respect to non-emergency services described in paragraph 
     (1)'' and
       (G) in subsection (e)(2)(C), by inserting ``or section 
     1916'' after ``subsection (a)''.
       (3) Clarification of cost sharing rules applicable to 
     disabled children provided medical assistance under the 
     eligibility category added by the family opportunity act.--
     Such section is further amended--
       (A) in subsection (a)(1), in the second sentence, by 
     striking ``section 1916(g)'' and inserting ``subsection (g) 
     or (i) of section 1916''; and
       (B) in subsection (b)(3)--
       (i) in subparagraph (A), by adding at the end the 
     following:
       ``(vi) Disabled children who are receiving medical 
     assistance by virtue of the application of sections 
     1902(a)(10)(A)(ii)(XIX) and 1902(cc).''; and
       (ii) in subparagraph (B), by adding at the end the 
     following:
       ``(ix) Services furnished to disabled children who are 
     receiving medical assistance by virtue of the application of 
     sections 1902(a)(10)(A)(ii)(XIX) and 1902(cc).''.
       (4) Correction of iv-b references.--Such section is further 
     amended in subsection (b)(3)--
       (A) in subparagraph (A)(i), by striking ``aid or assistance 
     is made available under part B of title IV to children in 
     foster care'' and inserting ``child welfare services are made 
     available under part B of title IV on the basis of being a 
     child in foster care''; and
       (B) in subparagraph (B)(i), by striking ``aid or assistance 
     is made available under part B of title IV to children in 
     foster care'' and inserting ``child welfare services are made 
     available under part B of title IV on the basis of being a 
     child in foster care or''.

[[Page 23152]]

       (5) Non-emergency services.--Section 1916A(e)(4)(A) of the 
     Social Security Act, as added by section 6043(a) of the 
     Deficit Reduction Act of 2005, is amended by striking ``the 
     physician determines''.
       (6) Effective date.--The amendments made by this subsection 
     shall take effect as if included in the amendments made by 
     sections 6041(a) of the Deficit Reduction Act of 2005, except 
     that insofar as such amendments are to, or relate to, 
     subsection (c) or (e) of section 1916A of the Social Security 
     Act, such amendments shall take effect as if included in the 
     amendments made by section 6042 or 6043, respectively, of the 
     Deficit Reduction Act of 2005.
       (b) Clarifying Treatment of Certain Annuities (Section 
     6012).--
       (1) In general.--Section 1917(c)(1)(F)(i) of the Social 
     Security Act (42 U.S.C. 1396p(c)(1)(F)(i)), as added by 
     section 6012(b) of the Deficit Reduction Act of 2005, is 
     amended by striking ``annuitant'' and inserting 
     ``institutionalized individual''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall be effective as if included in the enactment of section 
     6012 of the Deficit Reduction Act of 2005.
       (c) Additional Miscellaneous Technical Corrections.--
       (1) Documentation (section 6036).--
       (A) In general.--Effective as if included in the amendment 
     made by section 6036(a)(2) of the Deficit Reduction Act of 
     2005, section 1903(x) of the Social Security Act (42 U.S.C. 
     1396b(x)), as inserted by such section 6036(a)(2), is 
     amended--
       (i) in paragraph (1), by striking ``(i)(23)'' and inserting 
     ``(i)(22)'';
       (ii) in paragraph (2)--

       (I) in the matter preceding subparagraph (A), by striking 
     ``alien'' and inserting ``individual declaring to be a 
     citizen or national of the United States'';
       (II) by striking subparagraph (B) and inserting the 
     following:

       ``(B) and is receiving--
       ``(i) disability insurance benefits under section 223 or 
     monthly insurance benefits under section 202 based on such 
     individual's disability (as defined in section 223(d)); or
       ``(ii) supplemental security income benefits under title 
     XVI;'';

       (III) in subparagraph (C)--

       (aa) by striking ``other''; and
       (bb) by striking ``had'' and inserting ``has'';

       (IV) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (V) by inserting after subparagraph (B) the following new 
     subparagraph:

       ``(C) and with respect to whom--
       ``(i) child welfare services are made available under part 
     B of title IV on the basis of being a child in foster care; 
     or
       ``(ii) adoption or foster care assistance is made available 
     under part E of title IV; or''; and
       (iii) in paragraph (3)(C)(iii), by striking ``I-97'' and 
     inserting ``I-197''.
       (B) Assurance of state foster care agency verification of 
     citizenship or legal status.--
       (i) State plan amendment.--Section 471(a) of the Social 
     Security Act (42 U.S.C. 671(a)) is amended--

       (I) in paragraph (25), by striking ``and'' at the end;
       (II) in paragraph (26)(C), by striking the period at the 
     end and inserting ``; and''; and
       (III) by adding at the end the following:

       ``(27) provides that, with respect to any child in foster 
     care under the responsibility of the State under this part or 
     part B and without regard to whether foster care maintenance 
     payments are made under section 472 on behalf of the child, 
     the State has in effect procedures for verifying the 
     citizenship or immigration status of the child.''.
       (ii) Inclusion in reviews of child and family services 
     programs.--Section 1123A(b)(2) of the Social Security Act (42 
     U.S.C. 1320a-2a(b)(2)) is amended by inserting ``(which shall 
     include determining whether the State program is in 
     conformity with the requirement of section 471(a)(27))'' 
     after ``review''.
       (iii) Effective date.--The amendments made by this 
     subparagraph shall take effect on the date that is 6 months 
     after the date of the enactment of this Act.
       (2) Miscellaneous technical corrections.--
       (A) Effective as if included in the enactment of the 
     Deficit Reduction Act of 2005 (Public Law 109-171), the 
     following sections of such Act are amended as follows:
       (i) Section 5114(a)(2) is amended by striking ``section 
     1842(b)(6)(F) of such Act (42 U.S.C. 1395u(b)(6)(F))'' and 
     inserting ``section 1842(b)(6) of such Act (42 U.S.C. 
     1395u(b)(6))''.
       (ii) Section 6003(b)(2) is amended, by striking 
     ``subsection (k)'' and inserting ``subsection (k)(1)''.
       (iii) Sections 6031(b), 6032(b), and 6035(c) are each 
     amended by striking ``section 6035(e)'' and inserting 
     ``section 6034(e)''.
       (iv) Section 6034(b) is amended by striking ``section 
     6033(a)'' and inserting ``section 6032(a)''.
       (v) Section 6036 is amended--

       (I) in subsection (b), by striking ``section 1903(z)'' and 
     inserting ``section 1903(x)''; and
       (II) in subsection (c), by striking ``(i)(23)'' and 
     inserting ``(i)(22)''.

       (B) Effective as if included in the amendment made by 
     section 6015(a)(1) of the Deficit Reduction Act of 2005, 
     section 1919(c)(5)(A)(i)(II) of the Social Security Act (42 
     U.S.C. 1396r(c)(5)(A)(i)(II)) is amended by striking ``clause 
     (v)'' and inserting ``subparagraph (B)(v)''.

                      DIVISION C--OTHER PROVISIONS

                TITLE I--GULF OF MEXICO ENERGY SECURITY

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Gulf of Mexico Energy 
     Security Act of 2006''.

     SEC. 102. DEFINITIONS.

       In this title:
       (1) 181 area.--The term ``181 Area'' means the area 
     identified in map 15, page 58, of the Proposed Final Outer 
     Continental Shelf Oil and Gas Leasing Program for 1997-2002, 
     dated August 1996, of the Minerals Management Service, 
     available in the Office of the Director of the Minerals 
     Management Service, excluding the area offered in OCS Lease 
     Sale 181, held on December 5, 2001.
       (2) 181 south area.--The term ``181 South Area'' means any 
     area--
       (A) located--
       (i) south of the 181 Area;
       (ii) west of the Military Mission Line; and
       (iii) in the Central Planning Area;
       (B) excluded from the Proposed Final Outer Continental 
     Shelf Oil and Gas Leasing Program for 1997-2002, dated August 
     1996, of the Minerals Management Service; and
       (C) included in the areas considered for oil and gas 
     leasing, as identified in map 8, page 37 of the document 
     entitled ``Draft Proposed Program Outer Continental Shelf Oil 
     and Gas Leasing Program 2007-2012'', dated February 2006.
       (3) Bonus or royalty credit.--The term ``bonus or royalty 
     credit'' means a legal instrument or other written 
     documentation, or an entry in an account managed by the 
     Secretary, that may be used in lieu of any other monetary 
     payment for--
       (A) a bonus bid for a lease on the outer Continental Shelf; 
     or
       (B) a royalty due on oil or gas production from any lease 
     located on the outer Continental Shelf.
       (4) Central planning area.--The term ``Central Planning 
     Area'' means the Central Gulf of Mexico Planning Area of the 
     outer Continental Shelf, as designated in the document 
     entitled ``Draft Proposed Program Outer Continental Shelf Oil 
     and Gas Leasing Program 2007-2012'', dated February 2006.
       (5) Eastern planning area.--The term ``Eastern Planning 
     Area'' means the Eastern Gulf of Mexico Planning Area of the 
     outer Continental Shelf, as designated in the document 
     entitled ``Draft Proposed Program Outer Continental Shelf Oil 
     and Gas Leasing Program 2007-2012'', dated February 2006.
       (6) 2002-2007 planning area.--The term ``2002-2007 planning 
     area'' means any area--
       (A) located in--
       (i) the Eastern Planning Area, as designated in the 
     Proposed Final Outer Continental Shelf Oil and Gas Leasing 
     Program 2002-2007, dated April 2002, of the Minerals 
     Management Service;
       (ii) the Central Planning Area, as designated in the 
     Proposed Final Outer Continental Shelf Oil and Gas Leasing 
     Program 2002-2007, dated April 2002, of the Minerals 
     Management Service; or
       (iii) the Western Planning Area, as designated in the 
     Proposed Final Outer Continental Shelf Oil and Gas Leasing 
     Program 2002-2007, dated April 2002, of the Minerals 
     Management Service; and
       (B) not located in--
       (i) an area in which no funds may be expended to conduct 
     offshore preleasing, leasing, and related activities under 
     sections 104 through 106 of the Department of the Interior, 
     Environment, and Related Agencies Appropriations Act, 2006 
     (Public Law 109-54; 119 Stat. 521) (as in effect on August 2, 
     2005);
       (ii) an area withdrawn from leasing under the ``Memorandum 
     on Withdrawal of Certain Areas of the United States Outer 
     Continental Shelf from Leasing Disposition'', from 34 Weekly 
     Comp. Pres. Doc. 1111, dated June 12, 1998; or
       (iii) the 181 Area or 181 South Area.
       (7) Gulf producing state.--The term ``Gulf producing 
     State'' means each of the States of Alabama, Louisiana, 
     Mississippi, and Texas.
       (8) Military mission line.--The term ``Military Mission 
     Line'' means the north-south line at 8641' W. longitude.
       (9) Qualified outer continental shelf revenues.--
       (A) In general.--The term ``qualified outer Continental 
     Shelf revenues'' means--
       (i) in the case of each of fiscal years 2007 through 2016, 
     all rentals, royalties, bonus bids, and other sums due and 
     payable to the United States from leases entered into on or 
     after the date of enactment of this Act for--

       (I) areas in the 181 Area located in the Eastern Planning 
     Area; and
       (II) the 181 South Area; and

       (ii) in the case of fiscal year 2017 and each fiscal year 
     thereafter, all rentals, royalties, bonus bids, and other 
     sums due and payable to the United States received on or 
     after October 1, 2016, from leases entered into on or after 
     the date of enactment of this Act for--

       (I) the 181 Area;
       (II) the 181 South Area; and
       (III) the 2002-2007 planning area.

[[Page 23153]]

       (B) Exclusions.--The term ``qualified outer Continental 
     Shelf revenues'' does not include--
       (i) revenues from the forfeiture of a bond or other surety 
     securing obligations other than royalties, civil penalties, 
     or royalties taken by the Secretary in-kind and not sold; or
       (ii) revenues generated from leases subject to section 8(g) 
     of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)).
       (10) Coastal political subdivision.--The term ``coastal 
     political subdivision'' means a political subdivision of a 
     Gulf producing State any part of which political subdivision 
     is--
       (A) within the coastal zone (as defined in section 304 of 
     the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)) of 
     the Gulf producing State as of the date of enactment of this 
     Act; and
       (B) not more than 200 nautical miles from the geographic 
     center of any leased tract.
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 103. OFFSHORE OIL AND GAS LEASING IN 181 AREA AND 181 
                   SOUTH AREA OF GULF OF MEXICO.

       (a) 181 Area Lease Sale.--Except as provided in section 
     104, the Secretary shall offer the 181 Area for oil and gas 
     leasing pursuant to the Outer Continental Shelf Lands Act (43 
     U.S.C. 1331 et seq.) as soon as practicable, but not later 
     than 1 year, after the date of enactment of this Act.
       (b) 181 South Area Lease Sale.--The Secretary shall offer 
     the 181 South Area for oil and gas leasing pursuant to the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) as 
     soon as practicable after the date of enactment of this Act.
       (c) Leasing Program.--The 181 Area and 181 South Area shall 
     be offered for lease under this section notwithstanding the 
     omission of the 181 Area or the 181 South Area from any outer 
     Continental Shelf leasing program under section 18 of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1344).
       (d) Conforming Amendment.--Section 105 of the Department of 
     the Interior, Environment, and Related Agencies 
     Appropriations Act, 2006 (Public Law 109-54; 119 Stat. 522) 
     is amended by inserting ``(other than the 181 South Area (as 
     defined in section 102 of the Gulf of Mexico Energy Security 
     Act of 2006))'' after ``lands located outside Sale 181''.

     SEC. 104. MORATORIUM ON OIL AND GAS LEASING IN CERTAIN AREAS 
                   OF GULF OF MEXICO.

       (a) In General.--Effective during the period beginning on 
     the date of enactment of this Act and ending on June 30, 
     2022, the Secretary shall not offer for leasing, preleasing, 
     or any related activity--
       (1) any area east of the Military Mission Line in the Gulf 
     of Mexico;
       (2) any area in the Eastern Planning Area that is within 
     125 miles of the coastline of the State of Florida; or
       (3) any area in the Central Planning Area that is--
       (A) within--
       (i) the 181 Area; and
       (ii) 100 miles of the coastline of the State of Florida; or
       (B)(i) outside the 181 Area;
       (ii) east of the western edge of the Pensacola Official 
     Protraction Diagram (UTM X coordinate 1,393,920 (NAD 27 
     feet)); and
       (iii) within 100 miles of the coastline of the State of 
     Florida.
       (b) Military Mission Line.--Notwithstanding subsection (a), 
     the United States reserves the right to designate by and 
     through the Secretary of Defense, with the approval of the 
     President, national defense areas on the outer Continental 
     Shelf pursuant to section 12(d) of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1341(d)).
       (c) Exchange of Certain Leases.--
       (1) In general.--The Secretary shall permit any person 
     that, as of the date of enactment of this Act, has entered 
     into an oil or gas lease with the Secretary in any area 
     described in paragraph (2) or (3) of subsection (a) to 
     exchange the lease for a bonus or royalty credit that may 
     only be used in the Gulf of Mexico.
       (2) Valuation of existing lease.--The amount of the bonus 
     or royalty credit for a lease to be exchanged shall be equal 
     to--
       (A) the amount of the bonus bid; and
       (B) any rental paid for the lease as of the date the lessee 
     notifies the Secretary of the decision to exchange the lease.
       (3) Revenue distribution.--No bonus or royalty credit may 
     be used under this subsection in lieu of any payment due 
     under, or to acquire any interest in, a lease subject to the 
     revenue distribution provisions of section 8(g) of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1337(g)).
       (4) Regulations.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations that shall provide a process for--
       (A) notification to the Secretary of a decision to exchange 
     an eligible lease;
       (B) issuance of bonus or royalty credits in exchange for 
     relinquishment of the existing lease;
       (C) transfer of the bonus or royalty credit to any other 
     person; and
       (D) determining the proper allocation of bonus or royalty 
     credits to each lease interest owner.

     SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF 
                   REVENUES FROM 181 AREA, 181 SOUTH AREA, AND 
                   2002-2007 PLANNING AREAS OF GULF OF MEXICO.

       (a) In General.--Notwithstanding section 9 of the Outer 
     Continental Shelf Lands Act (43 U.S.C. 1338) and subject to 
     the other provisions of this section, for each applicable 
     fiscal year, the Secretary of the Treasury shall deposit--
       (1) 50 percent of qualified outer Continental Shelf 
     revenues in the general fund of the Treasury; and
       (2) 50 percent of qualified outer Continental Shelf 
     revenues in a special account in the Treasury from which the 
     Secretary shall disburse--
       (A) 75 percent to Gulf producing States in accordance with 
     subsection (b); and
       (B) 25 percent to provide financial assistance to States in 
     accordance with section 6 of the Land and Water Conservation 
     Fund Act of 1965 (16 U.S.C. 460l-8), which shall be 
     considered income to the Land and Water Conservation Fund for 
     purposes of section 2 of that Act (16 U.S.C. 460l-5).
       (b) Allocation Among Gulf Producing States and Coastal 
     Political Subdivisions.--
       (1) Allocation among gulf producing states for fiscal years 
     2007 through 2016.--
       (A) In general.--Subject to subparagraph (B), effective for 
     each of fiscal years 2007 through 2016, the amount made 
     available under subsection (a)(2)(A) shall be allocated to 
     each Gulf producing State in amounts (based on a formula 
     established by the Secretary by regulation) that are 
     inversely proportional to the respective distances between 
     the point on the coastline of each Gulf producing State that 
     is closest to the geographic center of the applicable leased 
     tract and the geographic center of the leased tract.
       (B) Minimum allocation.--The amount allocated to a Gulf 
     producing State each fiscal year under subparagraph (A) shall 
     be at least 10 percent of the amounts available under 
     subsection (a)(2)(A).
       (2) Allocation among gulf producing states for fiscal year 
     2017 and thereafter.--
       (A) In general.--Subject to subparagraphs (B) and (C), 
     effective for fiscal year 2017 and each fiscal year 
     thereafter--
       (i) the amount made available under subsection (a)(2)(A) 
     from any lease entered into within the 181 Area or the 181 
     South Area shall be allocated to each Gulf producing State in 
     amounts (based on a formula established by the Secretary by 
     regulation) that are inversely proportional to the respective 
     distances between the point on the coastline of each Gulf pro
     Producing State that is closest to the geographic center of 
     the applicable leased tract and the geographic center of the 
     leased tract; and
       (ii) the amount made available under subsection (a)(2)(A) 
     from any lease entered into within the 2002-2007 planning 
     area shall be allocated to each Gulf producing State in 
     amounts that are inversely proportional to the respective 
     distances between the point on the coastline of each Gulf 
     producing State that is closest to the geographic center of 
     each historical lease site and the geographic center of the 
     historical lease site, as determined by the Secretary.
       (B) Minimum allocation.--The amount allocated to a Gulf 
     producing State each fiscal year under subparagraph (A) shall 
     be at least 10 percent of the amounts available under 
     subsection (a)(2)(A).
       (C) Historical lease sites.--
       (i) In general.--Subject to clause (ii), for purposes of 
     subparagraph (A)(ii), the historical lease sites in the 2002-
     2007 planning area shall include all leases entered into by 
     the Secretary for an area in the Gulf of Mexico during the 
     period beginning on October 1, 1982 (or an earlier date if 
     practicable, as determined by the Secretary), and ending on 
     December 31, 2015.
       (ii) Adjustment.--Effective January 1, 2022, and every 5 
     years thereafter, the ending date described in clause (i) 
     shall be extended for an additional 5 calendar years.
       (3) Payments to coastal political subdivisions.--
       (A) In general.--The Secretary shall pay 20 percent of the 
     allocable share of each Gulf producing State, as determined 
     under paragraphs (1) and (2), to the coastal political 
     subdivisions of the Gulf producing State.
       (B) Allocation.--The amount paid by the Secretary to 
     coastal political subdivisions shall be allocated to each 
     coastal political subdivision in accordance with 
     subparagraphs (B), (C), and (E) of section 31(b)(4) of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1356a(b)(4)).
       (c) Timing.--The amounts required to be deposited under 
     paragraph (2) of subsection (a) for the applicable fiscal 
     year shall be made available in accordance with that 
     paragraph during the fiscal year immediately following the 
     applicable fiscal year.
       (d) Authorized Uses.--
       (1) In general.--Subject to paragraph (2), each Gulf 
     producing State and coastal political subdivision shall use 
     all amounts received under subsection (b) in accordance with 
     all applicable Federal and State laws, only for 1 or more of 
     the following purposes:

[[Page 23154]]

       (A) Projects and activities for the purposes of coastal 
     protection, including conservation, coastal restoration, 
     hurricane protection, and infrastructure directly affected by 
     coastal wetland losses.
       (B) Mitigation of damage to fish, wildlife, or natural 
     resources.
       (C) Implementation of a federally-approved marine, coastal, 
     or comprehensive conservation management plan.
       (D) Mitigation of the impact of outer Continental Shelf 
     activities through the funding of onshore infrastructure 
     projects.
       (E) Planning assistance and the administrative costs of 
     complying with this section.
       (2) Limitation.--Not more than 3 percent of amounts 
     received by a Gulf producing State or coastal political 
     subdivision under subsection (b) may be used for the purposes 
     described in paragraph (1)(E).
       (e) Administration.--Amounts made available under 
     subsection (a)(2) shall--
       (1) be made available, without further appropriation, in 
     accordance with this section;
       (2) remain available until expended; and
       (3) be in addition to any amounts appropriated under--
       (A) the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
     et seq.);
       (B) the Land and Water Conservation Fund Act of 1965 (16 
     U.S.C. 460l-4 et seq.); or
       (C) any other provision of law.
       (f) Limitations on Amount of Distributed Qualified Outer 
     Continental Shelf Revenues.--
       (1) In general.--Subject to paragraph (2), the total amount 
     of qualified outer Continental Shelf revenues made available 
     under subsection (a)(2) shall not exceed $500,000,000 for 
     each of fiscal years 2016 through 2055.
       (2) Expenditures.--For the purpose of paragraph (1), for 
     each of fiscal years 2016 through 2055, expenditures under 
     subsection (a)(2) shall be net of receipts from that fiscal 
     year from any area in the 181 Area in the Eastern Planning 
     Area and the 181 South Area.
       (3) Pro rata reductions.--If paragraph (1) limits the 
     amount of qualified outer Continental Shelf revenue that 
     would be paid under subparagraphs (A) and (B) of subsection 
     (a)(2)--
       (A) the Secretary shall reduce the amount of qualified 
     outer Continental Shelf revenue provided to each recipient on 
     a pro rata basis; and
       (B) any remainder of the qualified outer Continental Shelf 
     revenues shall revert to the general fund of the Treasury.

TITLE II--SURFACE MINING CONTROL AND RECLAMATION ACT AMENDMENTS OF 2006

     SEC. 200. SHORT TITLE.

       This title may be cited as the ``Surface Mining Control and 
     Reclamation Act Amendments of 2006''.

               Subtitle A--Mining Control and Reclamation

     SEC. 201. ABANDONED MINE RECLAMATION FUND AND PURPOSES.

       (a) In General.--Section 401 of the Surface Mining Control 
     and Reclamation Act of 1977 (30 U.S.C. 1231) is amended--
       (1) in subsection (c)--
       (A) by striking paragraphs (2) and (6); and
       (B) by redesignating paragraphs (3), (4), and (5) and 
     paragraphs (7) through (13) as paragraphs (2) through (11), 
     respectively;
       (2) by striking subsection (d) and inserting the following:
       ``(d) Availability of Moneys; No Fiscal Year Limitation.--
       ``(1) In general.--Moneys from the fund for expenditures 
     under subparagraphs (A) through (D) of section 402(g)(3) 
     shall be available only when appropriated for those 
     subparagraphs.
       ``(2) No fiscal year limitation.--Appropriations described 
     in paragraph (1) shall be made without fiscal year 
     limitation.
       ``(3) Other purposes.--Moneys from the fund shall be 
     available for all other purposes of this title without prior 
     appropriation as provided in subsection (f).'';
       (3) in subsection (e)--
       (A) in the second sentence, by striking ``the needs of such 
     fund'' and inserting ``achieving the purposes of the 
     transfers under section 402(h)''; and
       (B) in the third sentence, by inserting before the period 
     the following: ``for the purpose of the transfers under 
     section 402(h)''; and
       (4) by adding at the end the following:
       ``(f) General Limitation on Obligation Authority.--
       ``(1) In general.--From amounts deposited into the fund 
     under subsection (b), the Secretary shall distribute during 
     each fiscal year beginning after September 30, 2007, an 
     amount determined under paragraph (2).
       ``(2) Amounts.--
       ``(A) For fiscal years 2008 through 2022.--For each of 
     fiscal years 2008 through 2022, the amount distributed by the 
     Secretary under this subsection shall be equal to--
       ``(i) the amounts deposited into the fund under paragraphs 
     (1), (2), and (4) of subsection (b) for the preceding fiscal 
     year that were allocated under paragraphs (1) and (5) of 
     section 402(g); plus
       ``(ii) the amount needed for the adjustment under section 
     402(g)(8) for the current fiscal year.
       ``(B) Fiscal years 2023 and thereafter.--For fiscal year 
     2023 and each fiscal year thereafter, to the extent that 
     funds are available, the Secretary shall distribute an amount 
     equal to the amount distributed under subparagraph (A) during 
     fiscal year 2022.
       ``(3) Distribution.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     for each fiscal year, of the amount to be distributed to 
     States and Indian tribes pursuant to paragraph (2), the 
     Secretary shall distribute--
       ``(i) the amounts allocated under paragraph (1) of section 
     402(g), the amounts allocated under paragraph (5) of section 
     402(g), and any amount reallocated under section 411(h)(3) in 
     accordance with section 411(h)(2), for grants to States and 
     Indian tribes under section 402(g)(5); and
       ``(ii) the amounts allocated under section 402(g)(8).
       ``(B) Exclusion.--Beginning on October 1, 2007, certified 
     States shall be ineligible to receive amounts under section 
     402(g)(1).
       ``(4) Availability.--Amounts in the fund available to the 
     Secretary for obligation under this subsection shall be 
     available until expended.
       ``(5) Addition.--
       ``(A) In general.--Subject to subparagraph (B), the amount 
     distributed under this subsection for each fiscal year shall 
     be in addition to the amount appropriated from the fund 
     during the fiscal year.
       ``(B) Exceptions.--Notwithstanding paragraph (3), the 
     amount distributed under this subsection for the first 4 
     fiscal years beginning on and after October 1, 2007, shall be 
     equal to the following percentage of the amount otherwise 
     required to be distributed:
       ``(i) 50 percent in fiscal year 2008.
       ``(ii) 50 percent in fiscal year 2009.
       ``(iii) 75 percent in fiscal year 2010.
       ``(iv) 75 percent in fiscal year 2011.''.
       (b) Conforming Amendment.--Section 712(b) of the Surface 
     Mining Control and Reclamation Act of 1977 (30 U.S.C. 
     1302(b)) is amended by striking ``section 401(c)(11)'' and 
     inserting ``section 401(c)(9)''.

     SEC. 202. RECLAMATION FEE.

       (a) Amounts.--
       (1) Fiscal years 2008-2012.--Effective October 1, 2007, 
     section 402(a) of the Surface Mining Control and Reclamation 
     Act of 1977 (30 U.S.C. 1232(a)) is amended--
       (A) by striking ``35'' and inserting ``31.5'';
       (B) by striking ``15'' and inserting ``13.5''; and
       (C) by striking ``10 cents'' and inserting ``9 cents''.
       (2) Fiscal years 2013-2021.--Effective October 1, 2012, 
     section 402(a) of the Surface Mining Control and Reclamation 
     Act of 1977 (30 U.S.C. 1232(a)) (as amended by paragraph (1)) 
     is amended--
       (A) by striking ``31.5'' and inserting ``28'';
       (B) by striking ``13.5'' and inserting ``12''; and
       (C) by striking ``9 cents'' and inserting ``8 cents''.
       (b) Duration.--Effective September 30, 2007, section 402(b) 
     of the Surface Mining Control and Reclamation Act of 1977 (30 
     U.S.C. 1232(b)) (as amended by section 7007 of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006 (Public Law 109-234; 
     120 Stat. 484)) is amended by striking ``September 30, 2007'' 
     and all that follows through the end of the sentence and 
     inserting ``September 30, 2021.''.
       (c) Allocation of Funds.--Section 402(g) of the Surface 
     Mining Control and Reclamation Act of 1977 (30 U.S.C. 
     1232(g)) is amended--
       (1) in paragraph (1)(D)--
       (A) by inserting ``(except for grants awarded during fiscal 
     years 2008, 2009, and 2010 to the extent not expended within 
     5 years)'' after ``this paragraph''; and
       (B) by striking ``in any area under paragraph (2), (3), 
     (4), or (5)'' and inserting ``under paragraph (5)'';
       (2) by striking paragraph (2) and inserting:
       ``(2) In making the grants referred to in paragraph (1)(C) 
     and the grants referred to in paragraph (5), the Secretary 
     shall ensure strict compliance by the States and Indian 
     tribes with the priorities described in section 403(a) until 
     a certification is made under section 411(a).'';
       (3) in paragraph (3)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``paragraphs (2) and'' and inserting ``paragraph'';
       (B) in subparagraph (A), by striking ``401(c)(11)'' and 
     inserting ``401(c)(9)''; and
       (C) by adding at the end the following:
       ``(E) For the purpose of paragraph (8).'';
       (4) in paragraph (5)--
       (A) by inserting ``(A)'' after ``(5)'';
       (B) in the first sentence, by striking ``40'' and inserting 
     ``60'';
       (C) in the last sentence, by striking ``Funds allocated or 
     expended by the Secretary under paragraphs (2), (3), or (4)'' 
     and inserting ``Funds made available under paragraph (3) or 
     (4)''; and
       (D) by adding at the end the following:
       ``(B) Any amount that is reallocated and available under 
     section 411(h)(3) shall be in addition to amounts that are 
     allocated under subparagraph (A).''; and
       (5) by striking paragraphs (6) through (8) and inserting 
     the following:
       ``(6)(A) Any State with an approved abandoned mine 
     reclamation program pursuant

[[Page 23155]]

     to section 405 may receive and retain, without regard to the 
     3-year limitation referred to in paragraph (1)(D), up to 30 
     percent of the total of the grants made annually to the State 
     under paragraphs (1) and (5) if those amounts are deposited 
     into an acid mine drainage abatement and treatment fund 
     established under State law, from which amounts (together 
     with all interest earned on the amounts) are expended by the 
     State for the abatement of the causes and the treatment of 
     the effects of acid mine drainage in a comprehensive manner 
     within qualified hydrologic units affected by coal mining 
     practices.
       ``(B) In this paragraph, the term `qualified hydrologic 
     unit' means a hydrologic unit--
       ``(i) in which the water quality has been significantly 
     affected by acid mine drainage from coal mining practices in 
     a manner that adversely impacts biological resources; and
       ``(ii) that contains land and water that are--
       ``(I) eligible pursuant to section 404 and include any of 
     the priorities described in section 403(a); and
       ``(II) the subject of expenditures by the State from the 
     forfeiture of bonds required under section 509 or from other 
     States sources to abate and treat acid mine drainage.
       ``(7) In complying with the priorities described in section 
     403(a), any State or Indian tribe may use amounts available 
     in grants made annually to the State or tribe under 
     paragraphs (1) and (5) for the reclamation of eligible land 
     and water described in section 403(a)(3) before the 
     completion of reclamation projects under paragraphs (1) and 
     (2) of section 403(a) only if the expenditure of funds for 
     the reclamation is done in conjunction with the expenditure 
     before, on, or after the date of enactment of the Surface 
     Mining Control and Reclamation Act Amendments of 2006 of 
     funds for reclamation projects under paragraphs (1) and (2) 
     of section 403(a).
       ``(8)(A) In making funds available under this title, the 
     Secretary shall ensure that the grant awards total not less 
     than $3,000,000 annually to each State and each Indian tribe 
     having an approved abandoned mine reclamation program 
     pursuant to section 405 and eligible land and water pursuant 
     to section 404, so long as an allocation of funds to the 
     State or tribe is necessary to achieve the priorities stated 
     in paragraphs (1) and (2) of section 403(a).
       ``(B) Notwithstanding any other provision of law, this 
     paragraph applies to the States of Tennessee and Missouri.''.
       (d) Transfers of Interest Earned by Abandoned Mine 
     Reclamation Fund.--Section 402 of the Surface Mining Control 
     and Reclamation Act of 1977 (30 U.S.C. 1232) is amended by 
     striking subsection (h) and inserting the following:
       ``(h) Transfers of Interest Earned by Fund.--
       ``(1) In general.--
       ``(A) Transfers to combined benefit fund.--As soon as 
     practicable after the beginning of fiscal year 2007 and each 
     fiscal year thereafter, and before making any allocation with 
     respect to the fiscal year under subsection (g), the 
     Secretary shall use an amount not to exceed the amount of 
     interest that the Secretary estimates will be earned and paid 
     to the fund during the fiscal year to transfer to the 
     Combined Benefit Fund such amounts as are estimated by the 
     trustees of such fund to offset the amount of any deficit in 
     net assets in the Combined Benefit Fund as of October 1, 
     2006, and to make the transfer described in paragraph (2)(A).
       ``(B) Transfers to 1992 and 1993 plans.--As soon as 
     practicable after the beginning of fiscal year 2008 and each 
     fiscal year thereafter, and before making any allocation with 
     respect to the fiscal year under subsection (g), the 
     Secretary shall use an amount not to exceed the amount of 
     interest that the Secretary estimates will be earned and paid 
     to the fund during the fiscal year (reduced by the amount 
     used under subparagraph (A)) to make the transfers described 
     in paragraphs (2)(B) and (2)(C).
       ``(2) Transfers described.--The transfers referred to in 
     paragraph (1) are the following:
       ``(A) United mine workers of america combined benefit 
     fund.--A transfer to the United Mine Workers of America 
     Combined Benefit Fund equal to the amount that the trustees 
     of the Combined Benefit Fund estimate will be expended from 
     the fund for the fiscal year in which the transfer is made, 
     reduced by--
       ``(i) the amount the trustees of the Combined Benefit Fund 
     estimate the Combined Benefit Fund will receive during the 
     fiscal year in--

       ``(I) required premiums; and
       ``(II) payments paid by Federal agencies in connection with 
     benefits provided by the Combined Benefit Fund; and

       ``(ii) the amount the trustees of the Combined Benefit Fund 
     estimate will be expended during the fiscal year to provide 
     health benefits to beneficiaries who are unassigned 
     beneficiaries solely as a result of the application of 
     section 9706(h)(1) of the Internal Revenue Code of 1986, but 
     only to the extent that such amount does not exceed the 
     amounts described in subsection (i)(1)(A) that the Secretary 
     estimates will be available to pay such estimated 
     expenditures.
       ``(B) United mine workers of america 1992 benefit plan.--A 
     transfer to the United Mine Workers of America 1992 Benefit 
     Plan, in an amount equal to the difference between--
       ``(i) the amount that the trustees of the 1992 UMWA Benefit 
     Plan estimate will be expended from the 1992 UMWA Benefit 
     Plan during the next calendar year to provide the benefits 
     required by the 1992 UMWA Benefit Plan on the date of 
     enactment of this subparagraph; minus
       ``(ii) the amount that the trustees of the 1992 UMWA 
     Benefit Plan estimate the 1992 UMWA Benefit Plan will receive 
     during the next calendar year in--

       ``(I) required monthly per beneficiary premiums, including 
     the amount of any security provided to the 1992 UMWA Benefit 
     Plan that is available for use in the provision of benefits; 
     and
       ``(II) payments paid by Federal agencies in connection with 
     benefits provided by the 1992 UMWA benefit plan.

       ``(C) Multiemployer health benefit plan.--A transfer to the 
     Multiemployer Health Benefit Plan established after July 20, 
     1992, by the parties that are the settlors of the 1992 UMWA 
     Benefit Plan referred to in subparagraph (B) (referred to in 
     this subparagraph and subparagraph (D) as `the Plan'), in an 
     amount equal to the excess (if any) of--
       ``(i) the amount that the trustees of the Plan estimate 
     will be expended from the Plan during the next calendar year, 
     to provide benefits no greater than those provided by the 
     Plan as of December 31, 2006; over
       ``(ii) the amount that the trustees estimated the Plan will 
     receive during the next calendar year in payments paid by 
     Federal agencies in connection with benefits provided by the 
     Plan.

     Such excess shall be calculated by taking into account only 
     those beneficiaries actually enrolled in the Plan as of 
     December 31, 2006, who are eligible to receive benefits under 
     the Plan on the first day of the calendar year for which the 
     transfer is made.
       ``(D) Individuals considered enrolled.--For purposes of 
     subparagraph (C), any individual who was eligible to receive 
     benefits from the Plan as of the date of enactment of this 
     subsection, even though benefits were being provided to the 
     individual pursuant to a settlement agreement approved by 
     order of a bankruptcy court entered on or before September 
     30, 2004, will be considered to be actually enrolled in the 
     Plan and shall receive benefits from the Plan beginning on 
     December 31, 2006.
       ``(3) Adjustment.--If, for any fiscal year, the amount of a 
     transfer under subparagraph (A), (B), or (C) of paragraph (2) 
     is more or less than the amount required to be transferred 
     under that subparagraph, the Secretary shall appropriately 
     adjust the amount transferred under that subparagraph for the 
     next fiscal year.
       ``(4) Additional amounts.--
       ``(A) Previously credited interest.--Notwithstanding any 
     other provision of law, any interest credited to the fund 
     that has not previously been transferred to the Combined 
     Benefit Fund referred to in paragraph (2)(A) under this 
     section--
       ``(i) shall be held in reserve by the Secretary until such 
     time as necessary to make the payments under subparagraphs 
     (A) and (B) of subsection (i)(1), as described in clause 
     (ii); and
       ``(ii) in the event that the amounts described in 
     subsection (i)(1) are insufficient to make the maximum 
     payments described in subparagraphs (A) and (B) of subsection 
     (i)(1), shall be used by the Secretary to supplement the 
     payments so that the maximum amount permitted under those 
     paragraphs is paid.
       ``(B) Previously allocated amounts.--All amounts allocated 
     under subsection (g)(2) before the date of enactment of this 
     subparagraph for the program described in section 406, but 
     not appropriated before that date, shall be available to the 
     Secretary to make the transfers described in paragraph (2).
       ``(C) Adequacy of previously credited interest.--The 
     Secretary shall--
       ``(i) consult with the trustees of the plans described in 
     paragraph (2) at reasonable intervals; and
       ``(ii) notify Congress if a determination is made that the 
     amounts held in reserve under subparagraph (A) are 
     insufficient to meet future requirements under subparagraph 
     (A)(ii).
       ``(D) Additional reserve amounts.--In addition to amounts 
     held in reserve under subparagraph (A), there is authorized 
     to be appropriated such sums as may be necessary for transfer 
     to the fund to carry out the purposes of subparagraph 
     (A)(ii).
       ``(E) Inapplicability of cap.--The limitation described in 
     subsection (i)(3)(A) shall not apply to payments made from 
     the reserve fund under this paragraph.
       ``(5) Limitations.--
       ``(A) Availability of funds for next fiscal year.--The 
     Secretary may make transfers under subparagraphs (B) and (C) 
     of paragraph (2) for a calendar year only if the Secretary 
     determines, using actuarial projections provided by the 
     trustees of the Combined Benefit Fund referred to in 
     paragraph (2)(A), that amounts will be available under 
     paragraph (1), after the transfer, for the next fiscal year 
     for making the transfer under paragraph (2)(A).

[[Page 23156]]

       ``(B) Rate of contributions of obligors.--
       ``(i) In general.--

       ``(I) Rate.--A transfer under paragraph (2)(C) shall not be 
     made for a calendar year unless the persons that are 
     obligated to contribute to the plan referred to in paragraph 
     (2)(C) on the date of the transfer are obligated to make the 
     contributions at rates that are no less than those in effect 
     on the date which is 30 days before the date of enactment of 
     this subsection.
       ``(II) Application.--The contributions described in 
     subclause (I) shall be applied first to the provision of 
     benefits to those plan beneficiaries who are not described in 
     paragraph (2)(C)(ii).

       ``(ii) Initial contributions.--

       ``(I) In general.--From the date of enactment of the 
     Surface Mining Control and Reclamation Act Amendments of 2006 
     through December 31, 2010, the persons that, on the date of 
     enactment of that Act, are obligated to contribute to the 
     plan referred to in paragraph (2)(C) shall be obligated, 
     collectively, to make contributions equal to the amount 
     described in paragraph (2)(C), less the amount actually 
     transferred due to the operation of subparagraph (C).
       ``(II) First calendar year.--Calendar year 2006 is the 
     first calendar year for which contributions are required 
     under this clause.
       ``(III) Amount of contribution for 2006.--Except as 
     provided in subclause (IV), the amount described in paragraph 
     (2)(C) for calendar year 2006 shall be calculated as if 
     paragraph (2)(C) had been in effect during 2005.
       ``(IV) Limitation.--The contributions required under this 
     clause for calendar year 2006 shall not exceed the amount 
     necessary for solvency of the plan described in paragraph 
     (2)(C), measured as of December 31, 2006 and taking into 
     account all assets held by the plan as of that date.

       ``(iii) Division.--The collective annual contribution 
     obligation required under clause (ii) shall be divided among 
     the persons subject to the obligation, and applied uniformly, 
     based on the hours worked for which contributions referred to 
     in clause (i) would be owed.
       ``(C) Phase-in of transfers.--For each of calendar years 
     2008 through 2010, the transfers required under subparagraphs 
     (B) and (C) of paragraph (2) shall equal the following 
     amounts:
       ``(i) For calendar year 2008, the Secretary shall make 
     transfers equal to 25 percent of the amounts that would 
     otherwise be required under subparagraphs (B) and (C) of 
     paragraph (2).
       ``(ii) For calendar year 2009, the Secretary shall make 
     transfers equal to 50 percent of the amounts that would 
     otherwise be required under subparagraphs (B) and (C) of 
     paragraph (2).
       ``(iii) For calendar year 2010, the Secretary shall make 
     transfers equal to 75 percent of the amounts that would 
     otherwise be required under subparagraphs (B) and (C) of 
     paragraph (2).
       ``(i) Funding.--
       ``(1) In general.--Subject to paragraph (3), out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the plans 
     described in subsection (h)(2) such sums as are necessary to 
     pay the following amounts:
       ``(A) To the Combined Fund (as defined in section 
     9701(a)(5) of the Internal Revenue Code of 1986 and referred 
     to in this paragraph as the `Combined Fund'), the amount that 
     the trustees of the Combined Fund estimate will be expended 
     from premium accounts maintained by the Combined Fund for the 
     fiscal year to provide benefits for beneficiaries who are 
     unassigned beneficiaries solely as a result of the 
     application of section 9706(h)(1) of the Internal Revenue 
     Code of 1986, subject to the following limitations:
       ``(i) For fiscal year 2008, the amount paid under this 
     subparagraph shall equal--

       ``(I) the amount described in subparagraph (A); minus
       ``(II) the amounts required under section 9706(h)(3)(A) of 
     the Internal Revenue Code of 1986.

       ``(ii) For fiscal year 2009, the amount paid under this 
     subparagraph shall equal--

       ``(I) the amount described in subparagraph (A); minus
       ``(II) the amounts required under section 9706(h)(3)(B) of 
     the Internal Revenue Code of 1986.

       ``(iii) For fiscal year 2010, the amount paid under this 
     subparagraph shall equal--

       ``(I) the amount described in subparagraph (A); minus
       ``(II) the amounts required under section 9706(h)(3)(C) of 
     the Internal Revenue Code of 1986.

       ``(B) On certification by the trustees of any plan 
     described in subsection (h)(2) that the amount available for 
     transfer by the Secretary pursuant to this section 
     (determined after application of any limitation under 
     subsection (h)(5)) is less than the amount required to be 
     transferred, to the plan the amount necessary to meet the 
     requirement of subsection (h)(2).
       ``(C) To the Combined Fund, $9,000,000 on October 1, 2007, 
     $9,000,000 on October 1, 2008, and $9,000,000 on October 1, 
     2009 (which amounts shall not be exceeded) to provide a 
     refund of any premium (as described in section 9704(a) of the 
     Internal Revenue Code of 1986) paid on or before September 7, 
     2000, to the Combined Fund, plus interest on the premium 
     calculated at the rate of 7.5 percent per year, on a 
     proportional basis and to be paid not later than 60 days 
     after the date on which each payment is received by the 
     Combined Fund, to those signatory operators (to the extent 
     that the Combined Fund has not previously returned the 
     premium amounts to the operators), or any related persons to 
     the operators (as defined in section 9701(c) of the Internal 
     Revenue Code of 1986), or their heirs, successors, or assigns 
     who have been denied the refunds as the result of final 
     judgments or settlements if--
       ``(i) prior to the date of enactment of this paragraph, the 
     signatory operator (or any related person to the operator)--

       ``(I) had all of its beneficiary assignments made under 
     section 9706 of the Internal Revenue Code of 1986 voided by 
     the Commissioner of the Social Security Administration; and
       ``(II) was subject to a final judgment or final settlement 
     of litigation adverse to a claim by the operator that the 
     assignment of beneficiaries under section 9706 of the 
     Internal Revenue Code of 1986 was unconstitutional as applied 
     to the operator; and

       ``(ii) on or before September 7, 2000, the signatory 
     operator (or any related person to the operator) had paid to 
     the Combined Fund any premium amount that had not been 
     refunded.
       ``(2) Payments to states and indian tribes.--Subject to 
     paragraph (3), out of any funds in the Treasury not otherwise 
     appropriated, the Secretary of the Treasury shall transfer to 
     the Secretary of the Interior for distribution to States and 
     Indian tribes such sums as are necessary to pay amounts 
     described in paragraphs (1)(A) and (2)(A) of section 411(h).
       ``(3) Limitations.--
       ``(A) Cap.--The total amount transferred under this 
     subsection for any fiscal year shall not exceed $490,000,000.
       ``(B) Insufficient amounts.--In a case in which the amount 
     required to be transferred without regard to this paragraph 
     exceeds the maximum annual limitation in subparagraph (A), 
     the Secretary shall adjust the transfers of funds so that--
       ``(i) each transfer for the fiscal year is a percentage of 
     the amount described;
       ``(ii) the amount is determined without regard to 
     subsection (h)(5)(A); and
       ``(iii) the percentage transferred is the same for all 
     transfers made under this subsection for the fiscal year.
       ``(4) Availability of funds.--Funds shall be transferred 
     under paragraph (1) and (2) beginning in fiscal year 2008 and 
     each fiscal year thereafter, and shall remain available until 
     expended.''.

     SEC. 203. OBJECTIVES OF FUND.

       Section 403 of the Surface Mining Control and Reclamation 
     Act of 1977 (30 U.S.C. 1233) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``(1) the protection'' and inserting the 
     following:
       ``(1)(A) the protection;'';
       (ii) in subparagraph (A) (as designated by clause (i)), by 
     striking ``general welfare,''; and
       (iii) by adding at the end the following:
       ``(B) the restoration of land and water resources and the 
     environment that--
       ``(i) have been degraded by the adverse effects of coal 
     mining practices; and
       ``(ii) are adjacent to a site that has been or will be 
     remediated under subparagraph (A);'';
       (B) in paragraph (2)--
       (i) by striking ``(2) the protection'' and inserting the 
     following:
       ``(2)(A) the protection'';
       (ii) in subparagraph (A) (as designated by clause (i), by 
     striking ``health, safety, and general welfare'' and 
     inserting ``health and safety''; and
       (iii) by adding at the end the following:
       ``(B) the restoration of land and water resources and the 
     environment that--
       ``(i) have been degraded by the adverse effects of coal 
     mining practices; and
       ``(ii) are adjacent to a site that has been or will be 
     remediated under subparagraph (A); and'';
       (C) in paragraph (3), by striking the semicolon at the end 
     and inserting a period; and
       (D) by striking paragraphs (4) and (5);
       (2) in subsection (b)--
       (A) by striking the subsection heading and inserting 
     ``Water Supply Restoration.--''; and
       (B) in paragraph (1), by striking ``up to 30 percent of 
     the''; and
       (3) in the second sentence of subsection (c), by inserting 
     ``, subject to the approval of the Secretary,'' after 
     ``amendments''.

     SEC. 204. RECLAMATION OF RURAL LAND.

       (a) Administration.--Section 406(h) of the Surface Mining 
     Control and Reclamation Act of 1977 (30 U.S.C. 1236(h)) is 
     amended by striking ``Soil Conservation Service'' and 
     inserting ``Natural Resources Conservation Service''.
       (b) Authorization of Appropriations for Carrying Out Rural 
     Land Reclamation.--Section 406 of the Surface Mining Control 
     and Reclamation Act of 1977 (30 U.S.C. 1236) is amended by 
     adding at the end the following:
       ``(i) There are authorized to be appropriated to the 
     Secretary of Agriculture, from

[[Page 23157]]

     amounts in the Treasury other than amounts in the fund, such 
     sums as may be necessary to carry out this section.''.

     SEC. 205. LIENS.

       Section 408(a) of the Surface Mining Control and 
     Reclamation Act of 1977 (30 U.S.C. 1238) is amended in the 
     last sentence by striking ``who owned the surface prior to 
     May 2, 1977, and''.

     SEC. 206. CERTIFICATION.

       Section 411 of the Surface Mining Control and Reclamation 
     Act of 1977 (30 U.S.C. 1240a) is amended--
       (1) in subsection (a)--
       (A) by inserting ``(1)'' before the first sentence; and
       (B) by adding at the end the following:
       ``(2)(A) The Secretary may, on the initiative of the 
     Secretary, make the certification referred to in paragraph 
     (1) on behalf of any State or Indian tribe referred to in 
     paragraph (1) if on the basis of the inventory referred to in 
     section 403(c) all reclamation projects relating to the 
     priorities described in section 403(a) for eligible land and 
     water pursuant to section 404 in the State or tribe have been 
     completed.
       ``(B) The Secretary shall only make the certification after 
     notice in the Federal Register and opportunity for public 
     comment.''; and
       (2) by adding at the end the following:
       ``(h) Payments to States and Indian Tribes.--
       ``(1) In general.--
       ``(A) Payments.--
       ``(i) In general.--Notwithstanding section 401(f)(3)(B), 
     from funds referred to in section 402(i)(2), the Secretary 
     shall make payments to States or Indian tribes for the amount 
     due for the aggregate unappropriated amount allocated to the 
     State or Indian tribe under subparagraph (A) or (B) of 
     section 402(g)(1).
       ``(ii) Conversion as equivalent payments.--Amounts 
     allocated under subparagraphs (A) or (B) of section 402(g)(1) 
     shall be reallocated to the allocation established in section 
     402(g)(5) in amounts equivalent to payments made to States or 
     Indian tribes under this paragraph.
       ``(B) Amount due.--In this paragraph, the term `amount due' 
     means the unappropriated amount allocated to a State or 
     Indian tribe before October 1, 2007, under subparagraph (A) 
     or (B) of section 402(g)(1).
       ``(C) Schedule.--Payments under subparagraph (A) shall be 
     made in 7 equal annual installments, beginning with fiscal 
     year 2008.
       ``(D) Use of funds.--
       ``(i) Certified states and indian tribes.--A State or 
     Indian tribe that makes a certification under subsection (a) 
     in which the Secretary concurs shall use any amounts provided 
     under this paragraph for the purposes established by the 
     State legislature or tribal council of the Indian tribe, with 
     priority given for addressing the impacts of mineral 
     development.
       ``(ii) Uncertified states and indian tribes.--A State or 
     Indian tribe that has not made a certification under 
     subsection (a) in which the Secretary has concurred shall use 
     any amounts provided under this paragraph for the purposes 
     described in section 403.
       ``(2) Subsequent state and indian tribe share for certified 
     states and indian tribes.--
       ``(A) In general.--Notwithstanding section 401(f)(3)(B), 
     from funds referred to in section 402(i)(2), the Secretary 
     shall pay to each certified State or Indian tribe an amount 
     equal to the sum of the aggregate unappropriated amount 
     allocated on or after October 1, 2007, to the certified State 
     or Indian tribe under subparagraph (A) or (B) of section 
     402(g)(1).
       ``(B) Certified state or indian tribe defined.--In this 
     paragraph the term `certified State or Indian tribe' means a 
     State or Indian tribe for which a certification is made under 
     subsection (a) in which the Secretary concurs.
       ``(3) Manner of payment.--
       ``(A) In general.--Subject to subparagraph (B), payments to 
     States or Indian tribes under this subsection shall be made 
     without regard to any limitation in section 401(d) and 
     concurrently with payments to States under that section.
       ``(B) Initial payments.--The first 3 payments made to any 
     State or Indian tribe shall be reduced to 25 percent, 50 
     percent, and 75 percent, respectively, of the amounts 
     otherwise required under paragraph (2)(A).
       ``(C) Installments.--Amounts withheld from the first 3 
     annual installments as provided under subparagraph (B) shall 
     be paid in 2 equal annual installments beginning with fiscal 
     year 2018.
       ``(4) Reallocation.--
       ``(A) In general.--The amount allocated to any State or 
     Indian tribe under subparagraph (A) or (B) of section 
     402(g)(1) that is paid to the State or Indian tribe as a 
     result of a payment under paragraph (1) or (2) shall be 
     reallocated and available for grants under section 402(g)(5).
       ``(B) Allocation.--The grants shall be allocated based on 
     the amount of coal historically produced before August 3, 
     1977, in the same manner as under section 402(g)(5).''.

     SEC. 207. REMINING INCENTIVES.

       Title IV of the Surface Mining Control and Reclamation Act 
     of 1977 (30 U.S.C. 1231 et seq.) is amended by adding at the 
     following:

     ``SEC. 415. REMINING INCENTIVES.

       ``(a) In General.--Notwithstanding any other provision of 
     this Act, the Secretary may, after opportunity for public 
     comment, promulgate regulations that describe conditions 
     under which amounts in the fund may be used to provide 
     incentives to promote remining of eligible land under section 
     404 in a manner that leverages the use of amounts from the 
     fund to achieve more reclamation with respect to the eligible 
     land than would be achieved without the incentives.
       ``(b) Requirements.--Any regulations promulgated under 
     subsection (a) shall specify that the incentives shall apply 
     only if the Secretary determines, with the concurrence of the 
     State regulatory authority referred to in title V, that, 
     without the incentives, the eligible land would not be likely 
     to be remined and reclaimed.
       ``(c) Incentives.--
       ``(1) In general.--Incentives that may be considered for 
     inclusion in the regulations promulgated under subsection (a) 
     include, but are not limited to--
       ``(A) a rebate or waiver of the reclamation fees required 
     under section 402(a); and
       ``(B) the use of amounts in the fund to provide financial 
     assurance for remining operations in lieu of all or a portion 
     of the performance bonds required under section 509.
       ``(2) Limitations.--
       ``(A) Use.--A rebate or waiver under paragraph (1)(A) shall 
     be used only for operations that--
       ``(i) remove or reprocess abandoned coal mine waste; or
       ``(ii) conduct remining activities that meet the priorities 
     specified in paragraph (1) or (2) of section 403(a).
       ``(B) Amount.--The amount of a rebate or waiver provided as 
     an incentive under paragraph (1)(A) to remine or reclaim 
     eligible land shall not exceed the estimated cost of 
     reclaiming the eligible land under this section.''.

     SEC. 208. EXTENSION OF LIMITATION ON APPLICATION OF 
                   PROHIBITION ON ISSUANCE OF PERMIT.

       Section 510(e) of the Surface Mining Control and 
     Reclamation Act of 1977 (30 U.S.C. 1260(e)) is amended by 
     striking the last sentence.

     SEC. 209. TRIBAL REGULATION OF SURFACE COAL MINING AND 
                   RECLAMATION OPERATIONS.

       (a) In General.--Section 710 of the Surface Mining Control 
     and Reclamation Act of 1977 (30 U.S.C. 1300) is amended by 
     adding at the end the following:
       ``(j) Tribal Regulatory Authority.--
       ``(1) Tribal regulatory programs.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, an Indian tribe may apply for, and obtain the approval 
     of, a tribal program under section 503 regulating in whole or 
     in part surface coal mining and reclamation operations on 
     reservation land under the jurisdiction of the Indian tribe 
     using the procedures of section 504(e).
       ``(B) References to state.--For purposes of this subsection 
     and the implementation and administration of a tribal program 
     under title V, any reference to a `State' in this Act shall 
     be considered to be a reference to a `tribe'.
       ``(2) Conflicts of interest.--
       ``(A) In general.--The fact that an individual is a member 
     of an Indian tribe does not in itself constitute a violation 
     of section 201(f).
       ``(B) Employees of tribal regulatory authority.--Any 
     employee of a tribal regulatory authority shall not be 
     eligible for a per capita distribution of any proceeds from 
     coal mining operations conducted on Indian reservation lands 
     under this Act.
       ``(3) Sovereign immunity.--To receive primary regulatory 
     authority under section 504(e), an Indian tribe shall waive 
     sovereign immunity for purposes of section 520 and paragraph 
     (4).
       ``(4) Judicial review.--
       ``(A) Civil actions.--
       ``(i) In general.--After exhausting all tribal remedies 
     with respect to a civil action arising under a tribal program 
     approved under section 504(e), an interested party may file a 
     petition for judicial review of the civil action in the 
     United States circuit court for the circuit in which the 
     surface coal mining operation named in the petition is 
     located.
       ``(ii) Scope of review.--

       ``(I) Questions of law.--The United States circuit court 
     shall review de novo any questions of law under clause (i).
       ``(II) Findings of fact.--The United States circuit court 
     shall review findings of fact under clause (i) using a 
     clearly erroneous standard.

       ``(B) Criminal actions.--Any criminal action brought under 
     section 518 with respect to surface coal mining or 
     reclamation operations on Indian reservation lands shall be 
     brought in--
       ``(i) the United States District Court for the District of 
     Columbia; or
       ``(ii) the United States district court in which the 
     criminal activity is alleged to have occurred.
       ``(5) Grants.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     grants for developing, administering, and enforcing tribal 
     programs approved in accordance with section 504(e) shall be 
     provided to an Indian tribe in accordance with section 705.
       ``(B) Exception.--Notwithstanding subparagraph (A), the 
     Federal share of the costs of developing, administering, and 
     enforcing

[[Page 23158]]

     an approved tribal program shall be 100 percent.
       ``(6) Report.--Not later than 18 months after the date on 
     which a tribal program is approved under subsection (e) of 
     section 504, the Secretary shall submit to the appropriate 
     committees of Congress a report, developed in cooperation 
     with the applicable Indian tribe, on the tribal program that 
     includes a recommendation of the Secretary on whether primary 
     regulatory authority under that subsection should be expanded 
     to include additional Indian lands.''.
       (b) Conforming Amendment.--Section 710(i) of the Surface 
     Mining Control and Reclamation Act of 1977 (30 U.S.C. 
     1300(i)) is amended in the first sentence by striking ``, 
     except'' and all that follows through ``section 503''.

          Subtitle B--Coal Industry Retiree Health Benefit Act

     SEC. 211. CERTAIN RELATED PERSONS AND SUCCESSORS IN INTEREST 
                   RELIEVED OF LIABILITY IF PREMIUMS PREPAID.

       (a) Combined Benefit Fund.--Section 9704 of the Internal 
     Revenue Code of 1986 (relating to liability of assigned 
     operators) is amended by adding at the end the following new 
     subsection:
       ``(j) Prepayment of Premium Liability.--
       ``(1) In general.--If--
       ``(A) a payment meeting the requirements of paragraph (3) 
     is made to the Combined Fund by or on behalf of--
       ``(i) any assigned operator to which this subsection 
     applies, or
       ``(ii) any related person to any assigned operator 
     described in clause (i), and
       ``(B) the common parent of the controlled group of 
     corporations described in paragraph (2)(B) is jointly and 
     severally liable for any premium under this section which 
     (but for this subsection) would be required to be paid by the 
     assigned operator or related person,

     then such common parent (and no other person) shall be liable 
     for such premium.
       ``(2) Assigned operators to which subsection applies.--
       ``(A) In general.--This subsection shall apply to any 
     assigned operator if--
       ``(i) the assigned operator (or a related person to the 
     assigned operator)--

       ``(I) made contributions to the 1950 UMWA Benefit Plan and 
     the 1974 UMWA Benefit Plan for employment during the period 
     covered by the 1988 agreement; and
       ``(II) is not a 1988 agreement operator,

       ``(ii) the assigned operator (and all related persons to 
     the assigned operator) are not actively engaged in the 
     production of coal as of July 1, 2005, and
       ``(iii) the assigned operator was, as of July 20, 1992, a 
     member of a controlled group of corporations described in 
     subparagraph (B).
       ``(B) Controlled group of corporations.--A controlled group 
     of corporations is described in this subparagraph if the 
     common parent of such group is a corporation the shares of 
     which are publicly traded on a United States exchange.
       ``(C) Coordination with repeal of assignments.--A person 
     shall not fail to be treated as an assigned operator to which 
     this subsection applies solely because the person ceases to 
     be an assigned operator by reason of section 9706(h)(1) if 
     the person otherwise meets the requirements of this 
     subsection and is liable for the payment of premiums under 
     section 9706(h)(3).
       ``(D) Controlled group.--For purposes of this subsection, 
     the term `controlled group of corporations' has the meaning 
     given such term by section 52(a).
       ``(3) Requirements.--A payment meets the requirements of 
     this paragraph if--
       ``(A) the amount of the payment is not less than the 
     present value of the total premium liability under this 
     chapter with respect to the Combined Fund of the assigned 
     operators or related persons described in paragraph (1) or 
     their assignees, as determined by the operator's or related 
     person's enrolled actuary (as defined in section 7701(a)(35)) 
     using actuarial methods and assumptions each of which is 
     reasonable and which are reasonable in the aggregate, as 
     determined by such enrolled actuary;
       ``(B) such enrolled actuary files with the Secretary of 
     Labor a signed actuarial report containing--
       ``(i) the date of the actuarial valuation applicable to the 
     report; and
       ``(ii) a statement by the enrolled actuary signing the 
     report that, to the best of the actuary's knowledge, the 
     report is complete and accurate and that in the actuary's 
     opinion the actuarial assumptions used are in the aggregate 
     reasonably related to the experience of the operator and to 
     reasonable expectations; and
       ``(C) 90 calendar days have elapsed after the report 
     required by subparagraph (B) is filed with the Secretary of 
     Labor, and the Secretary of Labor has not notified the 
     assigned operator in writing that the requirements of this 
     paragraph have not been satisfied.
       ``(4) Use of prepayment.--The Combined Fund shall--
       ``(A) establish and maintain an account for each assigned 
     operator or related person by, or on whose behalf, a payment 
     described in paragraph (3) was made,
       ``(B) credit such account with such payment (and any 
     earnings thereon), and
       ``(C) use all amounts in such account exclusively to pay 
     premiums that would (but for this subsection) be required to 
     be paid by the assigned operator.

     Upon termination of the obligations for the premium liability 
     of any assigned operator or related person for which such 
     account is maintained, all funds remaining in such account 
     (and earnings thereon) shall be refunded to such person as 
     may be designated by the common parent described in paragraph 
     (1)(B).''.
       (b) Individual Employer Plans.--Section 9711(c) of the 
     Internal Revenue Code of 1986 (relating to joint and several 
     liability) is amended to read as follows:
       ``(c) Joint and Several Liability of Related Persons.--
       ``(1) In general.--Except as provided in paragraph (2), 
     each related person of a last signatory operator to which 
     subsection (a) or (b) applies shall be jointly and severally 
     liable with the last signatory operator for the provision of 
     health care coverage described in subsection (a) or (b).
       ``(2) Liability limited if security provided.--If--
       ``(A) security meeting the requirements of paragraph (3) is 
     provided by or on behalf of--
       ``(i) any last signatory operator which is an assigned 
     operator described in section 9704(j)(2), or
       ``(ii) any related person to any last signatory operator 
     described in clause (i), and
       ``(B) the common parent of the controlled group of 
     corporations described in section 9704(j)(2)(B) is jointly 
     and severally liable for the provision of health care under 
     this section which, but for this paragraph, would be required 
     to be provided by the last signatory operator or related 
     person,

     then, as of the date the security is provided, such common 
     parent (and no other person) shall be liable for the 
     provision of health care under this section which the last 
     signatory operator or related person would otherwise be 
     required to provide. Security may be provided under this 
     paragraph without regard to whether a payment was made under 
     section 9704(j).
       ``(3) Security.--Security meets the requirements of this 
     paragraph if--
       ``(A) the security--
       ``(i) is in the form of a bond, letter of credit, or cash 
     escrow,
       ``(ii) is provided to the trustees of the 1992 UMWA Benefit 
     Plan solely for the purpose of paying premiums for 
     beneficiaries who would be described in section 9712(b)(2)(B) 
     if the requirements of this section were not met by the last 
     signatory operator, and
       ``(iii) is in an amount equal to 1 year of liability of the 
     last signatory operator under this section, determined by 
     using the average cost of such operator's liability during 
     the prior 3 calendar years;
       ``(B) the security is in addition to any other security 
     required under any other provision of this title; and
       ``(C) the security remains in place for 5 years.
       ``(4) Refunds of security.--The remaining amount of any 
     security provided under this subsection (and earnings 
     thereon) shall be refunded to the last signatory operator as 
     of the earlier of--
       ``(A) the termination of the obligations of the last 
     signatory operator under this section, or
       ``(B) the end of the 5-year period described in paragraph 
     (4)(C).''.
       (c) 1992 UMWA Benefit Plan.--Section 9712(d)(4) of the 
     Internal Revenue Code of 1986 (relating to joint and several 
     liability) is amended by adding at the end the following new 
     sentence: ``The provisions of section 9711(c)(2) shall apply 
     to any last signatory operator described in such section 
     (without regard to whether security is provided under such 
     section, a payment is made under section 9704(j), or both) 
     and if security meeting the requirements of section 
     9711(c)(3) is provided, the common parent described in 
     section 9711(c)(2)(B) shall be exclusively responsible for 
     any liability for premiums under this section which, but for 
     this sentence, would be required to be paid by the last 
     signatory operator or any related person.''.
       (d) Successor in Interest.--Section 9701(c) of the Internal 
     Revenue Code of 1986 (relating to terms relating to 
     operators) is amended by adding at the end the following new 
     paragraph:
       ``(8) Successor in interest.--
       ``(A) Safe harbor.--The term `successor in interest' shall 
     not include any person who--
       ``(i) is an unrelated person to an eligible seller 
     described in subparagraph (C); and
       ``(ii) purchases for fair market value assets, or all of 
     the stock, of a related person to such seller, in a bona 
     fide, arm's-length sale.
       ``(B) Unrelated person.--The term `unrelated person' means 
     a purchaser who does not bear a relationship to the eligible 
     seller described in section 267(b).
       ``(C) Eligible seller.--For purposes of this paragraph, the 
     term `eligible seller' means an assigned operator described 
     in section 9704(j)(2) or a related person to such assigned 
     operator.''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act, 
     except that the amendment made by subsection (d)

[[Page 23159]]

     shall apply to transactions after the date of the enactment 
     of this Act.

     SEC. 212. TRANSFERS TO FUNDS; PREMIUM RELIEF.

       (a) Combined Fund.--
       (1) Federal transfers.--Section 9705(b) of the Internal 
     Revenue Code of 1986 (relating to transfers from Abandoned 
     Mine Reclamation Fund) is amended--
       (A) in paragraph (1), by striking ``section 402(h)'' and 
     inserting ``subsections (h) and (i) of section 402'';
       (B) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) Use of funds.--Any amount transferred under paragraph 
     (1) for any fiscal year shall be used to pay benefits and 
     administrative costs of beneficiaries of the Combined Fund or 
     for such other purposes as are specifically provided in the 
     Acts described in paragraph (1).''; and
       (C) by striking ``From Abandoned Mine Reclamation Fund'' in 
     the heading thereof.
       (2) Modifications of premiums to reflect federal 
     transfers.--
       (A) Elimination of unassigned beneficiaries premium.--
     Section 9704(d) of such Code (establishing unassigned 
     beneficiaries premium) is amended to read as follows:
       ``(d) Unassigned Beneficiaries Premium.--
       ``(1) Plan years ending on or before september 30, 2006.--
     For plan years ending on or before September 30, 2006, the 
     unassigned beneficiaries premium for any assigned operator 
     shall be equal to the applicable percentage of the product of 
     the per beneficiary premium for the plan year multiplied by 
     the number of eligible beneficiaries who are not assigned 
     under section 9706 to any person for such plan year.
       ``(2) Plan years beginning on or after october 1, 2006.--
       ``(A) In general.--For plan years beginning on or after 
     October 1, 2006, subject to subparagraph (B), there shall be 
     no unassigned beneficiaries premium, and benefit costs with 
     respect to eligible beneficiaries who are not assigned under 
     section 9706 to any person for any such plan year shall be 
     paid from amounts transferred under section 9705(b).
       ``(B) Inadequate transfers.--If, for any plan year 
     beginning on or after October 1, 2006, the amounts 
     transferred under section 9705(b) are less than the amounts 
     required to be transferred to the Combined Fund under 
     subsection (h)(2)(A) or (i) of section 402 of the Surface 
     Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232)), 
     then the unassigned beneficiaries premium for any assigned 
     operator shall be equal to the operator's applicable 
     percentage of the amount required to be so transferred which 
     was not so transferred.''.
       (B) Premium accounts.--
       (i) Crediting of accounts.--Section 9704(e)(1) of such Code 
     (relating to premium accounts; adjustments) is amended by 
     inserting ``and amounts transferred under section 9705(b)'' 
     after ``premiums received''.
       (ii) Surpluses attributable to public funding.--Section 
     9704(e)(3)(A) of such Code is amended by adding at the end 
     the following new sentence: ``Amounts credited to an account 
     from amounts transferred under section 9705(b) shall not be 
     taken into account in determining whether there is a surplus 
     in the account for purposes of this paragraph.''
       (C) Applicable percentage.--Section 9704(f)(2) of such Code 
     (relating to annual adjustments) is amended by adding at the 
     end the following new subparagraph:
       ``(C) In the case of plan years beginning on or after 
     October 1, 2007, the total number of assigned eligible 
     beneficiaries shall be reduced by the eligible beneficiaries 
     whose assignments have been revoked under section 9706(h).''.
       (3) Assignments and reassignment.--Section 9706 of the 
     Internal Revenue Code of 1986 (relating to assignment of 
     eligible beneficiaries) is amended by adding at the end the 
     following:
       ``(h) Assignments as of October 1, 2007.--
       ``(1) In general.--Subject to the premium obligation set 
     forth in paragraph (3), the Commissioner of Social Security 
     shall--
       ``(A) revoke all assignments to persons other than 1988 
     agreement operators for purposes of assessing premiums for 
     plan years beginning on and after October 1, 2007; and
       ``(B) make no further assignments to persons other than 
     1988 agreement operators, except that no individual who 
     becomes an unassigned beneficiary by reason of subparagraph 
     (A) may be assigned to a 1988 agreement operator.
       ``(2) Reassignment upon purchase.--This subsection shall 
     not be construed to prohibit the reassignment under 
     subsection (b)(2) of an eligible beneficiary.
       ``(3) Liability of persons during three fiscal years 
     beginning on and after october 1, 2007.--In the case of each 
     of the fiscal years beginning on October 1, 2007, 2008, and 
     2009, each person other than a 1988 agreement operator shall 
     pay to the Combined Fund the following percentage of the 
     amount of annual premiums that such person would otherwise be 
     required to pay under section 9704(a), determined on the 
     basis of assignments in effect without regard to the 
     revocation of assignments under paragraph (1)(A):
       ``(A) For the fiscal year beginning on October 1, 2007, 55 
     percent.
       ``(B) For the fiscal year beginning on October 1, 2008, 40 
     percent.
       ``(C) For the fiscal year beginning on October 1, 2009, 15 
     percent.''.
       (4) Effective date.--The amendments made by this subsection 
     shall apply to plan years of the Combined Fund beginning 
     after September 30, 2006.
       (b) 1992 UMWA Benefit and Other Plans.--
       (1) Transfers to plans.--Section 9712(a) of the Internal 
     Revenue Code of 1986 (relating to the establishment and 
     coverage of the 1992 UMWA Benefit Plan) is amended by adding 
     at the end the following:
       ``(3) Transfers under other federal statutes.--
       ``(A) In general.--The 1992 UMWA Benefit Plan shall include 
     any amount transferred to the plan under subsections (h) and 
     (i) of section 402 of the Surface Mining Control and 
     Reclamation Act of 1977 (30 U.S.C. 1232).
       ``(B) Use of funds.--Any amount transferred under 
     subparagraph (A) for any fiscal year shall be used to provide 
     the health benefits described in subsection (c) with respect 
     to any beneficiary for whom no monthly per beneficiary 
     premium is paid pursuant to paragraph (1)(A) or (3) of 
     subsection (d).
       ``(4) Special rule for 1993 plan.--
       ``(A) In general.--The plan described in section 
     402(h)(2)(C) of the Surface Mining Control and Reclamation 
     Act of 1977 (30 U.S.C. 1232(h)(2)(C)) shall include any 
     amount transferred to the plan under subsections (h) and (i) 
     of the Surface Mining Control and Reclamation Act of 1977 (30 
     U.S.C. 1232).
       ``(B) Use of funds.--Any amount transferred under 
     subparagraph (A) for any fiscal year shall be used to provide 
     the health benefits described in section 402(h)(2)(C)(i) of 
     the Surface Mining Control and Reclamation Act of 1977 (30 
     U.S.C. 1232(h)(2)(C)(i)) to individuals described in section 
     402(h)(2)(C) of such Act (30 U.S.C. 1232(h)(2)(C)).''.
       (2) Premium adjustments.--
       (A) In general.--Section 9712(d)(1) of such Code (relating 
     to guarantee of benefits) is amended to read as follows:
       ``(1) In general.--All 1988 last signatory operators shall 
     be responsible for financing the benefits described in 
     subsection (c) by meeting the following requirements in 
     accordance with the contribution requirements established in 
     the 1992 UMWA Benefit Plan:
       ``(A) The payment of a monthly per beneficiary premium by 
     each 1988 last signatory operator for each eligible 
     beneficiary of such operator who is described in subsection 
     (b)(2) and who is receiving benefits under the 1992 UMWA 
     benefit plan.
       ``(B) The provision of a security (in the form of a bond, 
     letter of credit, or cash escrow) in an amount equal to a 
     portion of the projected future cost to the 1992 UMWA Benefit 
     Plan of providing health benefits for eligible and 
     potentially eligible beneficiaries attributable to the 1988 
     last signatory operator.
       ``(C) If the amounts transferred under subsection (a)(3) 
     are less than the amounts required to be transferred to the 
     1992 UMWA Benefit Plan under subsections (h) and (i) of 
     section 402 of the Surface Mining Control and Reclamation Act 
     of 1977 (30 U.S.C. 1232), the payment of an additional 
     backstop premium by each 1988 last signatory operator which 
     is equal to such operator's share of the amounts required to 
     be so transferred but which were not so transferred, 
     determined on the basis of the number of eligible and 
     potentially eligible beneficiaries attributable to the 
     operator.''.
       (B) Conforming amendments.--Section 9712(d) of such Code is 
     amended--
       (i) in paragraph (2)(B), by striking ``prefunding'' and 
     inserting ``backstop'', and
       (ii) in paragraph (3), by striking ``paragraph (1)(B)'' and 
     inserting ``paragraph (1) (A)''.
       (C) Effective date.--The amendments made by this paragraph 
     shall apply to fiscal years beginning on or after October 1, 
     2010.

     SEC. 213. OTHER PROVISIONS.

       (a) Board of Trustees.--Section 9702(b) of the Internal 
     Revenue Code of 1986 (relating to board of trustees of the 
     Combined Fund) is amended to read as follows:
       ``(b) Board of Trustees.--
       ``(1) In general.--For purposes of subsection (a), the 
     board of trustees for the Combined Fund shall be appointed as 
     follows:
       ``(A) 2 individuals who represent employers in the coal 
     mining industry shall be designated by the BCOA;
       ``(B) 2 individuals designated by the United Mine Workers 
     of America; and
       ``(C) 3 individuals selected by the individuals appointed 
     under subparagraphs (A) and (B).
       ``(2) Successor trustees.--Any successor trustee shall be 
     appointed in the same manner as the trustee being succeeded. 
     The plan establishing the Combined Fund shall provide for the 
     removal of trustees.
       ``(3) Special rule.--If the BCOA ceases to exist, any 
     trustee or successor under paragraph (1)(A) shall be 
     designated by the 3 employers who were members of the BCOA on 
     the enactment date and who have been assigned the greatest 
     number of eligible beneficiaries under section 9706.''.
       (b) Enforcement of Obligations.--
       (1) Failure to pay premiums.--Section 9707(a) of the 
     Internal Revenue Code of 1986 is amended to read as follows:

[[Page 23160]]

       ``(a) Failures to Pay.--
       ``(1) Premiums for eligible beneficiaries.--There is hereby 
     imposed a penalty on the failure of any assigned operator to 
     pay any premium required to be paid under section 9704 with 
     respect to any eligible beneficiary.
       ``(2) Contributions required under the mining laws.--There 
     is hereby imposed a penalty on the failure of any person to 
     make a contribution required under section 402(h)(5)(B)(ii) 
     of the Surface Mining Control and Reclamation Act of 1977 to 
     a plan referred to in section 402(h)(2)(C) of such Act. For 
     purposes of applying this section, each such required monthly 
     contribution for the hours worked of any individual shall be 
     treated as if it were a premium required to be paid under 
     section 9704 with respect to an eligible beneficiary.''.
       (2) Civil enforcement.--Section 9721 of such Code is 
     amended to read as follows:

     ``SEC. 9721. CIVIL ENFORCEMENT.

       ``The provisions of section 4301 of the Employee Retirement 
     Income Security Act of 1974 shall apply, in the same manner 
     as any claim arising out of an obligation to pay withdrawal 
     liability under subtitle E of title IV of such Act, to any 
     claim--
       ``(1) arising out of an obligation to pay any amount 
     required to be paid by this chapter; or
       ``(2) arising out of an obligation to pay any amount 
     required by section 402(h)(5)(B)(ii) of the Surface Mining 
     Control and Reclamation Act of 1977 (30 U.S.C. 
     1232(h)(5)(B)(ii)).''.

 TITLE III--WHITE PINE COUNTY CONSERVATION, RECREATION, AND DEVELOPMENT

     SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this title.

     SEC. 302. SHORT TITLE.

       This title may be cited as the ``White Pine County 
     Conservation, Recreation, and Development Act of 2006''.

     SEC. 303. DEFINITIONS.

       In this title:
       (1) County.--The term ``County'' means White Pine County, 
     Nevada.
       (2) Secretary.--The term ``Secretary'' means--
       (A) with respect to land in the National Forest System, the 
     Secretary of Agriculture; and
       (B) with respect to other Federal land, the Secretary of 
     the Interior.
       (3) State.--The term ``State'' means the State of Nevada.

                       Subtitle A--Land Disposal

     SEC. 311. CONVEYANCE OF WHITE PINE COUNTY, NEVADA, LAND.

       (a) In General.--Notwithstanding sections 202 and 203 of 
     the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1712, 1713), the Secretary, in cooperation with the County, 
     in accordance with that Act, this subtitle, and other 
     applicable law and subject to valid existing rights, shall, 
     at such time as the parcels of Federal land become available 
     for disposal, conduct sales of the parcels of Federal land 
     described in subsection (b) to qualified bidders.
       (b) Description of Land.--The parcels of Federal land 
     referred to in subsection (a) consist of not more than 45,000 
     acres of Bureau of Land Management land in the County that--
       (1) is not segregated or withdrawn on or after the date of 
     enactment of this Act, unless the land is withdrawn in 
     accordance with subsection (h); and
       (2) is identified for disposal by the Bureau of Land 
     Management through--
       (A) the Ely Resource Management Plan; or
       (B) a subsequent amendment to the management plan that is 
     undertaken with full public involvement.
       (c) Availability.--The map and any legal descriptions of 
     the Federal land conveyed under this section shall be on file 
     and available for public inspection in--
       (1) the Office of the Director of the Bureau of Land 
     Management;
       (2) the Office of the Nevada State Director of the Bureau 
     of Land Management; and
       (3) the Ely Field Office of the Bureau of Land Management.
       (d) Joint Selection Required.--The Secretary and the County 
     shall jointly select which parcels of Federal land described 
     in subsection (b) to offer for sale under subsection (a).
       (e) Compliance With Local Planning and Zoning Laws.--Before 
     a sale of Federal land under subsection (a), the County shall 
     submit to the Secretary a certification that qualified 
     bidders have agreed to comply with--
       (1) County and city zoning ordinances; and
       (2) any master plan for the area approved by the County.
       (f) Method of Sale; Consideration.--The sale of Federal 
     land under subsection (a) shall be--
       (1) consistent with subsections (d) and (f) of section 203 
     of the Federal Land Management Policy Act of 1976 (43 U.S.C. 
     1713);
       (2) unless otherwise determined by the Secretary, through a 
     competitive bidding process; and
       (3) for not less than fair market value.
       (g) Recreation and Public Purposes Act Conveyances.--
       (1) In general.--Not later than 30 days before land is 
     offered for sale under subsection (a), the State or County 
     may elect to obtain any of the land for local public purposes 
     in accordance with the Act of June 14, 1926 (commonly known 
     as the ``Recreation and Public Purposes Act'') (43 U.S.C. 869 
     et seq.).
       (2) Retention.--Pursuant to an election made under 
     paragraph (1), the Secretary shall retain the elected land 
     for conveyance to the State or County in accordance with the 
     Act of June 14, 1926 (commonly known as the ``Recreation and 
     Public Purposes Act'') (43 U.S.C. 869 et seq.).
       (h) Withdrawal.--
       (1) In general.--Subject to valid existing rights and 
     except as provided in paragraph (2), the Federal land 
     described in subsection (b) is withdrawn from--
       (A) all forms of entry and appropriation under the public 
     land laws and mining laws;
       (B) location and patent under the mining laws; and
       (C) operation of the mineral laws, geothermal leasing laws, 
     and mineral material laws.
       (2) Exception.--Paragraph (1)(A) shall not apply to sales 
     made consistent with this section or an election by the 
     County or the State to obtain the land described in 
     subsection (b) for public purposes under the Act of June 14, 
     1926 (commonly known as the ``Recreation and Public Purposes 
     Act'')(43 U.S.C. 869 et seq.).
       (i) Deadline for Sale.--
       (1) In general.--Except as provided in paragraph (2), not 
     later than 1 year after the date of the signing of the record 
     of decision authorizing the implementation of the Ely 
     Resource Management Plan and annually thereafter until the 
     Federal land described in subsection (b) is disposed of or 
     the County requests a postponement under paragraph (2), the 
     Secretary shall offer for sale the Federal land described in 
     subsection (b).
       (2) Postponement; exclusion from sale.--
       (A) Request by county for postponement or exclusion.--At 
     the request of the County, the Secretary shall postpone or 
     exclude from the sale all or a portion of the land described 
     in subsection (b).
       (B) Indefinite postponement.--Unless specifically requested 
     by the County, a postponement under subparagraph (A) shall 
     not be indefinite.

     SEC. 312. DISPOSITION OF PROCEEDS.

       Of the proceeds from the sale of Federal land described in 
     section _11(b)--
       (1) 5 percent shall be paid directly to the State for use 
     in the general education program of the State;
       (2) 10 percent shall be paid to the County for use for fire 
     protection, law enforcement, education, public safety, 
     housing, social services, transportation, and planning; and
       (3) the remainder shall be deposited in a special account 
     in the Treasury of the United States, to be known as the 
     ``White Pine County Special Account'' (referred to in this 
     subtitle as the ``special account''), and shall be available 
     without further appropriation to the Secretary until expended 
     for--
       (A) the reimbursement of costs incurred by the Nevada State 
     office and the Ely Field Office of the Bureau of Land 
     Management for preparing for the sale of Federal land 
     described in section _11(b), including the costs of surveys 
     and appraisals and compliance with the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321) and sections 202 and 203 
     of the Federal Land Policy and Management Act of 1976 (43 
     U.S.C. 1712, 1713);
       (B) the inventory, evaluation, protection, and management 
     of unique archaeological resources (as defined in section 3 
     of the Archaeological Resources Protection Act of 1979 (16 
     U.S.C. 470bb)) of the County;
       (C) the reimbursement of costs incurred by the Department 
     of the Interior for preparing and carrying out the transfers 
     of land to be held in trust by the United States under 
     section _61;
       (D) conducting a study of routes for the Silver State Off-
     Highway Vehicle Trail as required by section _55(a);
       (E) developing and implementing the Silver State Off-
     Highway Vehicle Trail management plan described in section 
     _55(c);
       (F) wilderness protection and processing wilderness 
     designations, including the costs of appropriate fencing, 
     signage, public education, and enforcement for the wilderness 
     areas designated;
       (G) if the Secretary determines necessary, developing and 
     implementing conservation plans for endangered or at risk 
     species in the County; and
       (H) carrying out a study to assess non-motorized recreation 
     opportunities on Federal land in the County.

                      Subtitle B--Wilderness Areas

     SEC. 321. SHORT TITLE.

       This subtitle may be cited as the ``Pam White Wilderness 
     Act of 2006''.

     SEC. 322. FINDINGS.

       Congress finds that--
       (1) public land in the County contains unique and 
     spectacular natural resources, including--
       (A) priceless habitat for numerous species of plants and 
     wildlife; and
       (B) thousands of acres of land that remain in a natural 
     state; and
       (2) continued preservation of those areas would benefit the 
     County and all of the United States by--

[[Page 23161]]

       (A) ensuring the conservation of ecologically diverse 
     habitat;
       (B) protecting prehistoric cultural resources;
       (C) conserving primitive recreational resources; and
       (D) protecting air and water quality.

     SEC. 323. ADDITIONS TO NATIONAL WILDERNESS PRESERVATION 
                   SYSTEM.

       (a) Additions.--The following land in the State is 
     designated as wilderness and as components of the National 
     Wilderness Preservation System:
       (1) Mt. moriah wilderness addition.--Certain Federal land 
     managed by the Forest Service and the Bureau of Land 
     Management, comprising approximately 11,261 acres, as 
     generally depicted on the map entitled ``Eastern White Pine 
     County'' and dated November 29, 2006, is incorporated in, and 
     shall be managed as part of, the Mt. Moriah Wilderness, as 
     designated by section 2(13) of the Nevada Wilderness 
     Protection Act of 1989 (16 U.S.C. 1132 note; Public Law 101-
     195).
       (2) Mount grafton wilderness.--Certain Federal land managed 
     by the Bureau of Land Management, comprising approximately 
     78,754 acres, as generally depicted on the map entitled 
     ``Southern White Pine County'' and dated November 29, 2006, 
     which shall be known as the ``Mount Grafton Wilderness''.
       (3) South egan range wilderness.--Certain Federal land 
     managed by the Bureau of Land Management, comprising 
     approximately 67,214 acres, as generally depicted on the map 
     entitled ``Southern White Pine County'' and dated November 
     29, 2006, which shall be known as the ``South Egan Range 
     Wilderness''.
       (4) Highland ridge wilderness.--Certain Federal land 
     managed by the Bureau of Land Management and the Forest 
     Service, comprising approximately 68,627 acres, as generally 
     depicted on the map entitled ``Southern White Pine County'' 
     and dated November 29, 2006, which shall be known as the 
     ``Highland Ridge Wilderness''.
       (5) Government peak wilderness.--Certain Federal land 
     managed by the Bureau of Land Management, comprising 
     approximately 6,313 acres, as generally depicted on the map 
     entitled ``Eastern White Pine County'' and dated November 29, 
     2006, which shall be known as the ``Government Peak 
     Wilderness''.
       (6) Currant mountain wilderness addition.--Certain Federal 
     land managed by the Forest Service, comprising approximately 
     10,697 acres, as generally depicted on the map entitled 
     ``Western White Pine County'' and dated November 29, 2006, is 
     incorporated in, and shall be managed as part of, the 
     ``Currant Mountain Wilderness'', as designated by section 
     2(4) of the Nevada Wilderness Protection Act of 1989 (16 
     U.S.C. 1132 note; Public Law 101-195).
       (7) Red mountain wilderness.--Certain Federal land managed 
     by the Forest Service, comprising approximately 20,490 acres, 
     as generally depicted on the map entitled ``Western White 
     Pine County'' and dated November 29, 2006, which shall be 
     known as the ``Red Mountain Wilderness''.
       (8) Bald mountain wilderness.--Certain Federal land managed 
     by the Bureau of Land Management and the Forest Service, 
     comprising approximately 22,366 acres, as generally depicted 
     on the map entitled ``Western White Pine County'' and dated 
     November 29, 2006, which shall be known as the ``Bald 
     Mountain Wilderness''.
       (9) White pine range wilderness.--Certain Federal land 
     managed by the Forest Service, comprising approximately 
     40,013 acres, as generally depicted on the map entitled 
     ``Western White Pine County'' and dated November 29, 2006, 
     which shall be known as the ``White Pine Range Wilderness''.
       (10) Shellback wilderness.--Certain Federal land managed by 
     the Forest Service, comprising approximately 36,143 acres, as 
     generally depicted on the map entitled ``Western White Pine 
     County'' and dated November 29, 2006, which shall be known as 
     the ``Shellback Wilderness''.
       (11) High schells wilderness.--Certain Federal land managed 
     by the Forest Service, comprising approximately 121,497 
     acres, as generally depicted on the map entitled ``Eastern 
     White Pine County'' and dated November 29, 2006, which shall 
     be known as the ``High Schells Wilderness''.
       (12) Becky peak wilderness.--Certain Federal land managed 
     by the Bureau of Land Management, comprising approximately 
     18,119 acres, as generally depicted on the map entitled 
     ``Northern White Pine County'' and dated November 29, 2006, 
     which shall be known as the ``Becky Peak Wilderness''.
       (13) Goshute canyon wilderness.--Certain Federal land 
     managed by the Bureau of Land Management, comprising 
     approximately 42,544 acres, as generally depicted on the map 
     entitled ``Northern White Pine County'' and dated November 
     29, 2006, which shall be known as the ``Goshute Canyon 
     Wilderness''.
       (14) Bristlecone wilderness.--Certain Federal land managed 
     by the Bureau of Land Management, comprising approximately 
     14,095 acres, as generally depicted on the map entitled 
     ``Eastern White Pine County'' and dated November 29, 2006, 
     which shall be known as the ``Bristlecone Wilderness''.
       (b) Boundary.--The boundary of any portion of a wilderness 
     area designated by subsection (a) that is bordered by a road 
     shall be at least 100 feet from the edge of the road to allow 
     public access.
       (c) Map and Legal Description.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the Secretary shall file a map and 
     legal description of each wilderness area designated by 
     subsection (a) with the Committee on Energy and Natural 
     Resources of the Senate and the Committee on Resources of the 
     House of Representatives.
       (2) Effect.--Each map and legal description shall have the 
     same force and effect as if included in this section, except 
     that the Secretary may correct clerical and typographical 
     errors in the map or legal description.
       (3) Availability.--Each map and legal description shall be 
     on file and available for public inspection in the 
     appropriate offices of--
       (A) the Bureau of Land Management;
       (B) the Forest Service; and
       (C) the National Park Service.
       (d) Withdrawal.--Subject to valid existing rights, the 
     wilderness areas designated by subsection (a) are withdrawn 
     from--
       (1) all forms of entry, appropriation, and disposal under 
     the public land laws;
       (2) location, entry, and patent under the mining laws; and
       (3) operation of the mineral leasing and geothermal leasing 
     laws.
       (e) Mt. Moriah Wilderness Boundary Adjustment.--The 
     boundary of the Mt. Moriah Wilderness established under 
     section 2(13) of the Nevada Wilderness Protection Act of 1989 
     (16 U.S.C. 1132 note; Public Law 101-195) is adjusted to 
     include only the land identified as the ``Mount Moriah 
     Wilderness Area'' and ``Mount Moriah Additions'' on the map 
     entitled ``Eastern White Pine County'' and dated November 29, 
     2006.

     SEC. 324. ADMINISTRATION.

       (a) Management.--Subject to valid existing rights, each 
     area designated as wilderness by this subtitle shall be 
     administered by the Secretary in accordance with the 
     Wilderness Act (16 U.S.C. 1131 et seq.), except that--
       (1) any reference in that Act to the effective date shall 
     be considered to be a reference to the date of enactment of 
     this Act; and
       (2) any reference in that Act to the Secretary of 
     Agriculture shall be considered to be a reference to the 
     Secretary of Agriculture or the Secretary of the Interior, as 
     appropriate.
       (b) Livestock.--Within the wilderness areas designated 
     under this subtitle that are administered by the Bureau of 
     Land Management and the Forest Service, the grazing of 
     livestock in areas in which grazing is established as of the 
     date of enactment of this Act shall be allowed to continue--
       (1) subject to such reasonable regulations, policies, and 
     practices that the Secretary considers necessary; and
       (2) consistent with section 4(d)(4) of the Wilderness Act 
     (16 U.S.C. 1133(d)(4)), including the guidelines set forth in 
     Appendix A of House Report 101-405.
       (c) Incorporation of Acquired Land and Interests.--Any land 
     or interest in land within the boundaries of an area 
     designated as wilderness by this subtitle that is acquired by 
     the United States after the date of enactment of this Act 
     shall be added to and administered as part of the wilderness 
     area within which the acquired land or interest is located.
       (d) Water Rights.--
       (1) Findings.--Congress finds that--
       (A) the land designated as wilderness by this subtitle is 
     located--
       (i) in the semiarid region of the Great Basin; and
       (ii) at the headwaters of the streams and rivers on land 
     with respect to which there are few if any--

       (I) actual or proposed water resource facilities located 
     upstream; and
       (II) opportunities for diversion, storage, or other uses of 
     water occurring outside the land that would adversely affect 
     the wilderness values of the land;

       (B) the land designated as wilderness by this subtitle is 
     generally not suitable for use or development of new water 
     resource facilities; and
       (C) because of the unique nature of the land designated as 
     wilderness by this subtitle, it is possible to provide for 
     proper management and protection of the wilderness and other 
     values of land in ways different from those used in other 
     laws.
       (2) Purpose.--The purpose of this section is to protect the 
     wilderness values of the land designated as wilderness by 
     this subtitle by means other than a federally reserved water 
     right.
       (3) Statutory construction.--Nothing in this subtitle--
       (A) shall constitute or be construed to constitute either 
     an express or implied reservation by the United States of any 
     water or water rights with respect to a wilderness designated 
     by this subtitle;
       (B) shall affect any water rights in the State (including 
     any water rights held by the United States) in existence on 
     the date of enactment of this Act;
       (C) shall be construed as establishing a precedent with 
     regard to any future wilderness designations;
       (D) shall affect the interpretation of, or any designation 
     made pursuant to, any other Act; or

[[Page 23162]]

       (E) shall be construed as limiting, altering, modifying, or 
     amending any interstate compact or equitable apportionment 
     decree that apportions water among and between the State and 
     other States.
       (4) Nevada water law.--The Secretary shall follow the 
     procedural and substantive requirements of State law in order 
     to obtain and hold any water rights not in existence on the 
     date of enactment of this Act with respect to the wilderness 
     areas designated by this subtitle.
       (5) New projects.--
       (A) Definition of water resource facility.--In this 
     paragraph, the term ``water resource facility''--
       (i) means irrigation and pumping facilities, reservoirs, 
     water conservation works, aqueducts, canals, ditches, 
     pipelines, wells, hydropower projects, transmission and other 
     ancillary facilities, and other water diversion, storage, and 
     carriage structures; and
       (ii) does not include wildlife guzzlers.
       (B) Restriction on new water resource facilities.--Except 
     as otherwise provided in this title, on or after the date of 
     enactment of this Act, neither the President nor any other 
     officer, employee, or agent of the United States shall fund, 
     assist, authorize, or issue a license or permit for the 
     development of any new water resource facility within a 
     wilderness area that is wholly or partially within the 
     County.

     SEC. 325. ADJACENT MANAGEMENT.

       (a) In General.--Congress does not intend for the 
     designation of wilderness in the State by this subtitle to 
     lead to the creation of protective perimeters or buffer zones 
     around any such wilderness area.
       (b) Nonwilderness Activities.--The fact that nonwilderness 
     activities or uses can be seen or heard from areas within a 
     wilderness designated under this subtitle shall not preclude 
     the conduct of those activities or uses outside the boundary 
     of the wilderness area.

     SEC. 326. MILITARY OVERFLIGHTS.

       Nothing in this subtitle restricts or precludes--
       (1) low-level overflights of military aircraft over the 
     areas designated as wilderness by this subtitle, including 
     military overflights that can be seen or heard within the 
     wilderness areas;
       (2) flight testing and evaluation; or
       (3) the designation or creation of new units of special use 
     airspace, or the establishment of military flight training 
     routes, over the wilderness areas.

     SEC. 327. NATIVE AMERICAN CULTURAL AND RELIGIOUS USES.

       Nothing in this subtitle shall be construed to diminish--
       (1) the rights of any Indian tribe; or
       (2) tribal rights regarding access to Federal land for 
     tribal activities, including spiritual, cultural, and 
     traditional food-gathering activities.

     SEC. 328. RELEASE OF WILDERNESS STUDY AREAS.

       (a) Finding.--Congress finds that, for the purposes of 
     section 603 of the Federal Land Policy and Management Act of 
     1976 (43 U.S.C. 1782), the Bureau of Land Management land has 
     been adequately studied for wilderness designation in any 
     portion of the wilderness study areas or instant study 
     areas--
       (1) not designated as wilderness by section _23(a), 
     excluding the portion of the Goshute Canyon Wilderness Study 
     Area located outside of the County; and
       (2) depicted as released on the maps entitled--
       (A) ``Eastern White Pine County'' and dated November 29, 
     2006;
       (B) ``Northern White Pine County'' and dated November 29, 
     2006;
       (C) ``Southern White Pine County'' and dated November 29, 
     2006; and
       (D) ``Western White Pine County'' and dated November 29, 
     2006.
       (b) Release.--
       (1) In general.--Any public land described in subsection 
     (a) that is not designated as wilderness by this subtitle--
       (A) is no longer subject to section 603(c) of the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1782(c));
       (B) shall be managed in accordance with--
       (i) land management plans adopted under section 202 of that 
     Act (43 U.S.C. 1712); and
       (ii) cooperative conservation agreements in existence on 
     the date of enactment of this Act; and
       (C) shall be subject to the Endangered Species Act of 1973 
     (16 U.S.C. 1531 et seq.).
       (2) Exception.--The requirements described in paragraph (1) 
     shall not apply to the portion of the Goshute Canyon 
     Wilderness Study Area located outside of the County.

     SEC. 329. WILDLIFE MANAGEMENT.

       (a) In General.--In accordance with section 4(d)(7) of the 
     Wilderness Act (16 U.S.C. 1133(d)(7)), nothing in this 
     subtitle affects the jurisdiction of the State with respect 
     to fish and wildlife management, including the regulation of 
     hunting, fishing, and trapping, in the wilderness areas 
     designated by this subtitle.
       (b) Management Activities.--In furtherance of the purposes 
     and principles of the Wilderness Act (16 U.S.C. 1131 et 
     seq.), the Secretary may conduct such management activities 
     as are necessary to maintain or restore fish and wildlife 
     populations and habitats in the wilderness areas designated 
     by this subtitle if those activities are conducted--
       (1) consistent with relevant wilderness management plans; 
     and
       (2) in accordance with--
       (A) the Wilderness Act (16 U.S.C. 1131 et seq.); and
       (B) appropriate policies such as those set forth in 
     Appendix B of House Report 101-405, including the occasional 
     and temporary use of motorized vehicles if the use, as 
     determined by the Secretary, would promote healthy, viable, 
     and more naturally distributed wildlife populations that 
     would enhance wilderness values and accomplish those tasks 
     with the minimal impact necessary to reasonably accomplish 
     those tasks.
       (c) Existing Activities.--Consistent with section 4(d)(1) 
     of the Wilderness Act (16 U.S.C. 1133(d)(1)) and in 
     accordance with appropriate policies such as those set forth 
     in Appendix B of House Report 101-405, the State may continue 
     to use aircraft, including helicopters, to survey, capture, 
     transplant, monitor, and provide water for wildlife 
     populations, including bighorn sheep, and feral stock, feral 
     horses, and feral burros.
       (d) Wildlife Water Development Projects.--Subject to 
     subsection (f), the Secretary shall authorize structures and 
     facilities, including existing structures and facilities, for 
     wildlife water development projects, including guzzlers, in 
     the wilderness areas designated by this subtitle if--
       (1) the structures and facilities will, as determined by 
     the Secretary, enhance wilderness values by promoting 
     healthy, viable, and more naturally distributed wildlife 
     populations; and
       (2) the visual impacts of the structures and facilities on 
     the wilderness areas can reasonably be minimized.
       (e) Hunting, Fishing, and Trapping.--
       (1) In general.--The Secretary may designate by regulation 
     areas in which, and establish periods during which, for 
     reasons of public safety, administration, or compliance with 
     applicable laws, no hunting, fishing, or trapping will be 
     permitted in the wilderness areas designated by this 
     subtitle.
       (2) Consultation.--Except in emergencies, the Secretary 
     shall consult with the appropriate State agency before 
     promulgating regulations under paragraph (1).
       (f) Cooperative Agreement.--
       (1) In general.--The State (including a designee of the 
     State) may conduct wildlife management activities in the 
     wilderness areas designated by this subtitle--
       (A) in accordance with the terms and conditions specified 
     in the cooperative agreement between the Secretary and the 
     State, entitled ``Memorandum of Understanding between the 
     Bureau of Land Management and the Nevada Department of 
     Wildlife Supplement No. 9,'' and signed November and December 
     2003, including any amendments to the cooperative agreement 
     agreed to by the Secretary and the State; and
       (B) subject to all applicable laws and regulations.
       (2) References.--
       (A) Clark county.--For purposes of this subsection, any 
     references to Clark County in the cooperative agreement 
     described in paragraph (1)(A) shall be considered to be 
     references to White Pine County, Nevada.
       (B) Bureau of land management.--For purposes of this 
     subsection, any references to the Bureau of Land Management 
     in the cooperative agreement described in paragraph (1)(A) 
     shall also be considered to be references to the Forest 
     Service.

     SEC. 330. WILDFIRE, INSECT, AND DISEASE MANAGEMENT.

       Consistent with section 4(d)(1) of the Wilderness Act (16 
     U.S.C. 1133(d)(1)), the Secretary may take such measures as 
     may be necessary in the control of fire, insects, and 
     diseases, including coordination with a State or local 
     agency, as the Secretary deems appropriate.

     SEC. 331. CLIMATOLOGICAL DATA COLLECTION.

       If the Secretary determines that hydrologic, meteorologic, 
     or climatological collection devices are appropriate to 
     further the scientific, educational, and conservation 
     purposes of the wilderness areas designated by this subtitle, 
     nothing in this subtitle precludes the installation and 
     maintenance of the collection devices within the wilderness 
     areas.

          Subtitle C--Transfers of Administrative Jurisdiction

     SEC. 341. TRANSFER TO THE UNITED STATES FISH AND WILDLIFE 
                   SERVICE.

       (a) In General.--Administrative jurisdiction over the land 
     described in subsection (b) is transferred from the Bureau of 
     Land Management to the United States Fish and Wildlife 
     Service for inclusion in the Ruby Lake National Wildlife 
     Refuge.
       (b) Description of Land.--The parcel of land referred to in 
     subsection (a) is approximately 645 acres of land 
     administered by the Bureau of Land Management and identified 
     on the map entitled ``Ruby Lake Land Transfer'' and dated 
     July 10, 2006, as ``Lands to be transferred to the Fish and 
     Wildlife Service''.

     SEC. 342. TRANSFER TO THE BUREAU OF LAND MANAGEMENT.

       (a) In General.--Subject to subsection (c), administrative 
     jurisdiction over the parcels of land described in subsection 
     (b) is transferred from the Forest Service to the Bureau of 
     Land Management.

[[Page 23163]]

       (b) Description of Land.--The parcels of land referred to 
     in subsection (a) are--
       (1) the land administered by the Forest Service and 
     identified on the map entitled ``Southern White Pine County'' 
     and dated November 29, 2006, as ``Withdrawal Area'';
       (2) the land administered by the Forest Service and 
     identified on the map entitled ``Southern White Pine County'' 
     and dated November 29, 2006, as ``Highland Ridge 
     Wilderness''; and
       (3) all other Federal land administered by the Forest 
     Service that is located adjacent to the Highland Ridge 
     Wilderness.
       (c) Continuation of Cooperative Agreements.--Any existing 
     Forest Service cooperative agreement or permit in effect on 
     the date of enactment of this Act relating to a parcel of 
     land to which administrative jurisdiction is transferred by 
     subsection (a) shall be continued by the Bureau of Land 
     Management unless there is reasonable cause to terminate the 
     agreement or permit, as determined by the Secretary.
       (d) Withdrawal.--Subject to valid existing rights, all 
     Federal land within the Withdrawal Area is withdrawn from all 
     forms of--
       (1) entry, appropriation, or disposal under the public land 
     laws;
       (2) location, entry, and patent under the mining laws; and
       (3) operation of the mineral laws, geothermal leasing laws, 
     and mineral materials laws.
       (e) Motorized and Mechanical Vehicles.--Use of motorized 
     and mechanical vehicles in the withdrawal area designated by 
     this subtitle shall be permitted only on roads and trails 
     designated for their use, unless the use of those vehicles is 
     needed--
       (1) for administrative purposes; or
       (2) to respond to an emergency.

     SEC. 343. TRANSFER TO THE FOREST SERVICE.

       (a) In General.--Subject to subsection (c), administrative 
     jurisdiction over the parcels of land described in subsection 
     (b) is transferred from the Bureau of Land Management to the 
     Forest Service.
       (b) Description of Land.--The parcels of land referred to 
     in subsection (a) are the approximately 5,799 acres of land 
     administered by the Bureau of Land Management and identified 
     on the map entitled ``Western White Pine County'', dated 
     November 29, 2006, as the BLM Public Land Transfer to the US 
     Forest Service.
       (c) Continuation of Cooperative Agreements.--Any existing 
     Bureau of Land Management cooperative agreement or permit in 
     effect on the date of enactment of this Act relating to a 
     parcel of land to which administrative jurisdiction is 
     transferred by subsection (a) shall be continued by the 
     Forest Service unless there is reasonable cause to terminate 
     the agreement or permit, as determined by the Secretary.

     SEC. 344. AVAILABILITY OF MAP AND LEGAL DESCRIPTIONS.

       The maps of the land transferred by this subtitle shall be 
     on file and available for public inspection in the 
     appropriate offices of--
       (1) the Bureau of Land Management;
       (2) the Forest Service;
       (3) the National Park Service; and
       (4) the United States Fish and Wildlife Service.

                     Subtitle D--Public Conveyances

     SEC. 351. CONVEYANCE TO THE STATE OF NEVADA.

       (a) Conveyance.--Notwithstanding section 202 of the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1712), the 
     Secretary shall convey to the State, subject to valid 
     existing rights, for no consideration, all right, title, and 
     interest of the United States in and to the parcels of land 
     described in subsection (b) if the State and the County enter 
     into a written agreement supporting the conveyance.
       (b) Description of Land.--The parcels of land referred to 
     in subsection (a) are--
       (1) the approximately 6,281 acres of Bureau of Land 
     Management land identified as ``Steptoe Valley Wildlife 
     Management Area Expansion Proposal'' on the map entitled 
     ``Ely, Nevada Area'' and dated November 29, 2006;
       (2) the approximately 658 acres of Bureau of Land 
     Management land identified as ``Ward Charcoal Ovens 
     Expansion'' on the map entitled ``Ely, Nevada Area'' and 
     dated November 29, 2006; and
       (3) the approximately 2,960 acres of Forest Service 
     identified as ``Cave Lake State Park Expansion'' on the map 
     entitled ``Ely, Nevada Area'' and dated November 29, 2006.
       (c) Costs.--Any costs relating to a conveyance under 
     subsection (a), including costs for surveys and other 
     administrative costs, shall be paid by the State.
       (d) Use of Land.--
       (1) In general.--Any parcel of land conveyed to the State 
     under subsection (a) shall be used only for--
       (A) the conservation of wildlife or natural resources; or
       (B) a public park.
       (2) Facilities.--Any facility on a parcel of land conveyed 
     under subsection (a) shall be constructed and managed in a 
     manner consistent with the uses described in paragraph (1).
       (e) Reversion.--If a parcel of land conveyed under 
     subsection (a) is used in a manner that is inconsistent with 
     the uses described in subsection (d), the parcel of land 
     shall, at the discretion of the Secretary, revert to the 
     United States.

     SEC. 352. CONVEYANCE TO WHITE PINE COUNTY, NEVADA.

       (a) In General.--Notwithstanding section 202 of the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1712), the 
     Secretary shall convey to the County, without consideration, 
     all right, title, and interest of the United States in and to 
     the parcels of land described in subsection (b).
       (b) Description of Land.--The parcels of land referred to 
     in subsection (a) are--
       (1) the approximately 1,551 acres of land identified on the 
     map entitled ``Ely, Nevada Area'', dated November 29, 2006, 
     as the Airport Expansion; and
       (2) the approximately 202 acres of land identified on the 
     map entitled ``Ely, Nevada Area'', dated November 29, 2006, 
     as the Industrial Park Expansion.
       (c) Authorized Uses.--
       (1) Airport expansion.--The parcel of land described in 
     subsection (b)(1) shall be used by the County to expand the 
     Ely Airport.
       (2) Industrial park expansion.--The parcel of land 
     described in subsection (b)(2) shall be used by the County to 
     expand the White Pine County Industrial Park.
       (3) Use of certain land for nonresidential development.--
       (A) In general.--After conveyance to the County of the land 
     described in subsection (b), the County may sell, lease, or 
     otherwise convey any portion of the land conveyed for 
     purposes of nonresidential development relating to the 
     authorized uses described in paragraphs (1) and (2).
       (B) Method of sale.--The sale, lease, or conveyance of land 
     under subparagraph (A) shall be--
       (i) through a competitive bidding process; and
       (ii) for not less than fair market value.
       (C) Disposition of proceeds.--The gross proceeds from the 
     sale, lease, or conveyance of land under subparagraph (A) 
     shall be distributed in accordance with section _12.
       (d) Reversion.--If a parcel of land conveyed under 
     subsection (a) is used in a manner that is inconsistent with 
     the use described for the parcel in paragraph (1), (2), or 
     (3) of subsection (c), the parcel of land shall, at the 
     discretion of the Secretary, revert to the United States.

           Subtitle E--Silver State Off-Highway Vehicle Trail

     SEC. 355. SILVER STATE OFF-HIGHWAY VEHICLE TRAIL.

       (a) Study.--
       (1) In general.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary shall complete a study 
     of routes (with emphasis on roads and trails in existence on 
     the date of enactment of this Act) in accordance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) for the Silver State Off-Highway Vehicle Trail 
     (referred to in this section as the ``Trail'').
       (2) Preferred route.--Based on the study conducted under 
     paragraph (1), the Secretary, in consultation with the State, 
     the County, and any interested persons, shall identify the 
     preferred route for the Trail.
       (b) Designation of Trail.--
       (1) In general.--Subject to paragraph (2), not later than 
     90 days after the date on which the study is completed under 
     subsection (a), the Secretary shall designate the Trail.
       (2) Limitations.--The Secretary shall designate the Trail 
     only if the Secretary--
       (A) determines that the route of the Trail would not have 
     significant negative impacts on wildlife, natural or cultural 
     resources, or traditional uses; and
       (B) ensures that the Trail designation--
       (i) is an effort to extend the Silver State Off-Highway 
     Vehicle Trail designated under section 401(b) of the Lincoln 
     County Conservation, Recreation, and Development Act of 2004 
     (16 U.S.C. 1244 note; Public Law 108-424); and
       (ii) is limited to--

       (I) 1 route that generally runs in a north-south direction; 
     and
       (II) 1 potential spur running west.

       (c) Management.--
       (1) In general.--The Secretary shall manage the Trail in a 
     manner that--
       (A) is consistent with any motorized and mechanized uses of 
     the Trail that are authorized on the date of enactment of 
     this Act under applicable Federal and State laws (including 
     regulations);
       (B) ensures the safety of the individuals who use the 
     Trail; and
       (C) does not damage sensitive wildlife habitat, natural, or 
     cultural resources.
       (2) Management plan.--
       (A) In general.--Not later than 2 years after the date of 
     designation of the Trail, the Secretary, in consultation with 
     the State, the County, and any other interested persons, 
     shall complete a management plan for the Trail.
       (B) Components.--The management plan shall--
       (i) describe the appropriate uses and management of the 
     Trail;
       (ii) authorize the use of motorized and mechanized vehicles 
     on the Trail; and
       (iii) describe actions carried out to periodically evaluate 
     and manage the appropriate levels of use and location of the 
     Trail to minimize environmental impacts and prevent

[[Page 23164]]

     damage to cultural resources from the use of the Trail.
       (3) Monitoring and evaluation.--
       (A) Annual assessment.--The Secretary shall annually 
     assess--
       (i) the effects of the use of off-highway vehicles on the 
     Trail to minimize environmental impacts and prevent damage to 
     cultural resources from the use of the Trail; and
       (ii) in consultation with the Nevada Department of 
     Wildlife, the effects of the Trail on wildlife and wildlife 
     habitat to minimize environmental impacts from the use of the 
     Trail.
       (B) Closure.--The Secretary, in consultation with the State 
     and the County and subject to subparagraph (C), may 
     temporarily close or permanently reroute a portion of the 
     Trail if the Secretary determines that--
       (i) the Trail is having an adverse impact on--

       (I) wildlife habitats;
       (II) natural resources;
       (III) cultural resources; or
       (IV) traditional uses;

       (ii) the Trail threatens public safety;
       (iii) closure of the Trail is necessary to repair damage to 
     the Trail; or
       (iv) closure of the Trail is necessary to repair resource 
     damage.
       (C) Rerouting.--Any portion of the Trail that is 
     temporarily closed may be permanently rerouted along existing 
     roads and trails on public land open to motorized use if the 
     Secretary determines that rerouting the portion of the Trail 
     would not significantly increase or decrease the length of 
     the Trail.
       (D) Notice.--The Secretary shall provide information to the 
     public with respect to any routes on the Trail that are 
     closed under subparagraph (B), including through the 
     provision of appropriate signage along the Trail.
       (4) Notice of open routes.--The Secretary shall ensure that 
     visitors to the Trail have access to adequate notice relating 
     to the routes on the Trail that are open through--
       (A) the provision of appropriate signage along the Trail; 
     and
       (B) the distribution of maps, safety education materials, 
     and any other information that the Secretary determines to be 
     appropriate.
       (d) No Effect on Non-Federal Land and Interests in Land.--
     Nothing in this section affects the ownership or management 
     of, or other rights relating to, non-Federal land or 
     interests in non-Federal land.

 Subtitle F--Transfer of Land to Be Held in Trust for the Ely Shoshone 
                                 Tribe.

     SEC. 361. TRANSFER OF LAND TO BE HELD IN TRUST FOR THE ELY 
                   SHOSHONE TRIBE.

       (a) In General.--Subject to valid existing rights, all 
     right, title, and interest of the United States in and to the 
     land described in subsection (b)--
       (1) shall be held in trust by the United States for the 
     benefit of the Ely Shoshone Tribe (referred to in this 
     section as the ``Tribe''); and
       (2) shall be part of the reservation of the Tribe.
       (b) Description of Land.--The land referred to in 
     subsection (a) consists of parcels 1, 2, 3, and 4, totaling 
     the approximately 3,526 acres of land that are identified 
     on--
       (1) the Ely, Nevada Area map dated November 29, 2006; and
       (2) the Eastern White Pine County map dated November 29, 
     2006, as the ``Ely Shoshone Expansion''.
       (c) Survey.--Not later than 180 days after the date of 
     enactment of this Act, the Bureau of Land Management shall 
     complete a survey of the boundary lines to establish the 
     boundaries of the trust land.
       (d) Conditions.--
       (1) Gaming.--Land taken into trust under subsection (a) 
     shall not be--
       (A) considered to have been taken into trust for gaming (as 
     that term is used in the Indian Gaming Regulatory Act (25 
     U.S.C. 2701 et seq.)); and
       (B) used for gaming.
       (2) Trust land for ceremonial use.--With respect to the use 
     of the land identified on the map as ``Ely Shoshone 
     Expansion'' and marked as ``3'', the Tribe--
       (A) shall limit the use of the surface of the land to 
     traditional and customary uses and stewardship conservation 
     for the benefit of the Tribe; and
       (B) shall not permit any permanent residential or 
     recreational development on, or commercial use of, the 
     surface of the land, including commercial development or 
     gaming.
       (3) Thinning; landscape restoration.--With respect to land 
     taken into trust under subsection (a), the Forest Service and 
     the Bureau of Land Management may, in consultation and 
     coordination with the Tribe, carry out any thinning and other 
     landscape restoration work on the trust land that is 
     beneficial to the Tribe and the Forest Service or the Bureau 
     of Land Management.

       Subtitle G--Eastern Nevada Landscape Restoration Project.

     SEC. 371. FINDINGS; PURPOSES.

       (a) Findings.--Congress finds that--
       (1) there is an increasing threat of wildfire in the Great 
     Basin;
       (2) those wildfires--
       (A) endanger homes and communities;
       (B) damage or destroy watersheds and soils; and
       (C) pose a serious threat to the habitat of threatened and 
     endangered species;
       (3) forest land and rangeland in the Great Basin are 
     degraded as a direct consequence of land management practices 
     (including practices to control and prevent wildfires) that 
     disrupt the occurrence of frequent low-intensity fires that 
     have periodically removed flammable undergrowth; and
       (4) additional scientific information is needed in the 
     Great Basin for--
       (A) the design, implementation, and adaptation of 
     landscape-scale restoration treatments; and
       (B) the improvement of wildfire management technology and 
     practices.
       (b) Purposes.--The purposes of this subtitle are to--
       (1) support the Great Basin Restoration Initiative through 
     the implementation of the Eastern Nevada Landscape 
     Restoration Project; and
       (2) ensure resilient and healthy ecosystems in the Great 
     Basin by restoring native plant communities and natural 
     mosaics on the landscape that function within the parameters 
     of natural fire regimes.

     SEC. 372. DEFINITIONS.

       In this subtitle:
       (1) Initiative.--The term ``Initiative'' means the Great 
     Basin Restoration Initiative.
       (2) Project.--The term ``Project'' means the Eastern Nevada 
     Landscape Restoration Project authorized under section 
     _73(a).
       (3) Secretaries.--The term ``Secretaries'' means the 
     Secretary of Agriculture and the Secretary of the Interior.
       (4) State.--The term ``State'' means the State of Nevada.

     SEC. 373. RESTORATION PROJECT.

       (a) In General.--In accordance with all applicable Federal 
     laws, the Secretaries shall carry out the Eastern Nevada 
     Landscape Restoration Project to--
       (1) implement the Initiative; and
       (2) restore native rangelands and native woodland 
     (including riparian and aspen communities) in White Pine and 
     Lincoln Counties in the State.
       (b) Grants; Cooperative Agreement.--In carrying out the 
     Project--
       (1) the Secretaries may make grants to the Eastern Nevada 
     Landscape Coalition, the Great Basin Institute, and other 
     entities for the study and restoration of rangeland and other 
     land in the Great Basin--
       (A) to assist in--
       (i) reducing hazardous fuels; and
       (ii) restoring native rangeland and woodland; and
       (B) for other related purposes; and
       (2) notwithstanding sections 6301 through 6308, of title 
     31, United States Code, the Director of the Bureau of Land 
     Management and the Chief of the Forest Service may enter into 
     an agreement with the Eastern Nevada Landscape Coalition, the 
     Great Basin Institute, and other entities to provide for the 
     conduct of scientific analyses, hazardous fuels and 
     mechanical treatments, and related work.
       (c) Research Facility.--The Secretaries may conduct a 
     feasibility study on the potential establishment of an 
     interagency science center, including a research facility and 
     experimental rangeland in the eastern portion of the State.
       (d) Funding.--Section 4(e)(3)(A) of the Southern Nevada 
     Public Land Management Act of 1998 (Public Law 105-263; 112 
     Stat. 2346; 116 Stat. 2007; 118 Stat. 2414) is amended--
       (1) by redesignating clause (viii) as clause (ix); and
       (2) by inserting after clause (vii) the following:
       ``(viii) to carry out the Eastern Nevada Landscape 
     Restoration Project in White Pine County, Nevada and Lincoln 
     County, Nevada; and''.

 Subtitle H--Amendments to the Southern Nevada Public Land Management 
                              Act of 1998

     SEC. 381. FINDINGS.

       Section 2(a)(3) of the Southern Nevada Public Land 
     Management Act of 1998 (Public Law 105-263; 112 Stat. 2343) 
     is amended by inserting ``the Sloan Canyon National 
     Conservation Area,'' before ``and the Spring Mountains''.

     SEC. 382. AVAILABILITY OF SPECIAL ACCOUNT.

       Section 4(e) of the Southern Nevada Public Land Management 
     Act of 1998 (Public Law 105-263; 112 Stat. 2346; 116 Stat. 
     2007; 117 Stat. 1317; 118 Stat. 2414) is amended--
       (1) in paragraph (3)--
       (A) in subparagraph (A)--
       (i) by striking ``may be expended'' and inserting ``shall 
     be expended'';
       (ii) in clause (ii)--

       (I) by inserting ``, the Great Basin National Park,'' after 
     ``the Red Rock Canyon National Conservation Area'';
       (II) by inserting ``and the Forest Service'' after ``the 
     Bureau of Land Management''; and
       (III) by striking ``Clark and Lincoln Counties'' and 
     inserting ``Clark, Lincoln, and White Pine Counties'';

       (iii) in clause (iii), by inserting ``and implementation'' 
     before ``of a multispecies habitat'';
       (iv) in clause (iv), by striking ``Clark and Lincoln 
     Counties,'' and inserting ``Clark, Lincoln, and White Pine 
     Counties and Washoe County (subject to paragraph (4)),'';

[[Page 23165]]

       (v) in clause (v), by striking ``Clark and Lincoln 
     Counties'' and inserting ``Clark, Lincoln, and White Pine 
     Counties'';
       (vi) in clause (vii)--

       (I) by striking ``for development'' and inserting 
     ``development''; and
       (II) by striking ``and'' at the end;

       (vii) by redesignating clauses (viii) and (ix) (as amended 
     by section _73(d)) as clauses (x) and (xi), respectively; and
       (viii) by inserting after clause (vii) the following:
       ``(viii) reimbursement of any costs incurred by the Bureau 
     of Land Management to clear debris from and protect land that 
     is--

       ``(I) located in the disposal boundary described in 
     subsection (a); and
       ``(II) reserved for affordable housing;

       ``(ix) development and implementation of comprehensive, 
     cost-effective, multijurisdictional hazardous fuels reduction 
     and wildfire prevention plans (including sustainable biomass 
     and biofuels energy development and production activities) 
     for the Lake Tahoe Basin (to be developed in conjunction with 
     the Tahoe Regional Planning Agency), the Carson Range in 
     Douglas and Washoe Counties and Carson City in the State, and 
     the Spring Mountains in the State, that are--

       ``(I) subject to approval by the Secretary; and
       ``(II) not more than 10 years in duration;''; and

       (B) by inserting after subparagraph (C) the following:
       ``(D) Transfer requirement.--Subject to such terms and 
     conditions as the Secretary may prescribe, and 
     notwithstanding any other provision of law--
       ``(i) for amounts that have been authorized for expenditure 
     under subparagraph (A)(iv) but not transferred as of the date 
     of enactment of this subparagraph, the Secretary shall, not 
     later than 60 days after a request for funds from the 
     applicable unit of local government or regional governmental 
     entity, transfer to the applicable unit of local government 
     or regional governmental entity the amount authorized for the 
     expenditure; and
       ``(ii) for expenditures authorized under subparagraph 
     (A)(iv) that are approved by the Secretary, the Secretary 
     shall, not later than 60 days after a request for funds from 
     the applicable unit of local government or regional 
     governmental entity, transfer to the applicable unit of local 
     government or regional governmental entity the amount 
     approved for expenditure.''; and
       (2) by adding at the end the following:
       ``(4) Limitation for washoe county.--Until December 31, 
     2011, Washoe County shall be eligible to nominate for 
     expenditure amounts to acquire land (not to exceed 250 acres) 
     and develop 1 regional park and natural area.''.

Subtitle I--Amendments to the Lincoln County Conservation, Recreation, 
                      and Development Act of 2004

     SEC. 391. DISPOSITION OF PROCEEDS.

       Section 103(b)(2) of the Lincoln County Conservation, 
     Recreation, and Development Act of 2004 (Public Law 108-424; 
     118 Stat. 2405) is amended by inserting ``education, 
     planning,'' after ``social services,''.

                Subtitle J--All American Canal Projects

     SEC. 395. ALL AMERICAN CANAL LINING PROJECT.

       (a) Duties of the Secretary.--Notwithstanding any other 
     provision of law, upon the date of enactment of this Act, the 
     Secretary shall, without delay, carry out the All American 
     Canal Lining Project identified--
       (1) as the preferred alternative in the record of decision 
     for that project, dated July 29, 1994; and
       (2) in the allocation agreement allocating water from the 
     All American Canal Lining Project, entered into as of October 
     10, 2003.
       (b) Duties of Commissioner of Reclamation.--
       (1) In general.--Subject to paragraph (2), if a State 
     conducts a review or study of the implications of the All 
     American Canal Lining Project as carried out under subsection 
     (a), upon request from the Governor of the State, the 
     Commissioner of Reclamation shall cooperate with the State, 
     to the extent practicable, in carrying out the review or 
     study.
       (2) Restriction of delay.--A review or study conducted by a 
     State under paragraph (1) shall not delay the carrying out by 
     the Secretary of the All American Canal Lining Project.

     SEC. 396. REGULATED STORAGE WATER FACILITY.

       (a) Construction, Operation, and Maintenance of Facility.--
     Notwithstanding any other provision of law, upon the date of 
     enactment of this Act, the Secretary shall, without delay, 
     pursuant to the Act of January 1, 1927 (44 Stat. 1010, 
     chapter 47) (commonly known as the ``River and Harbor Act of 
     1927''), as amended, design and provide for the construction, 
     operation, and maintenance of a regulated water storage 
     facility (including all incidental works that are reasonably 
     necessary to operate the storage facility) to provide 
     additional storage capacity to reduce nonstorable flows on 
     the Colorado River below Parker Dam.
       (b) Location of Facility.--The storage facility (including 
     all incidental works) described in subsection (a) shall be 
     located at or near the All American Canal.

     SEC. 397. APPLICATION OF LAW.

       The Treaty between the United States of America and Mexico 
     relating to the utilization of waters of the Colorado and 
     Tijuana Rivers and of the Rio Grande, and supplementary 
     protocol signed November 14, 1944, signed at Washington 
     February 3, 1944 (59 Stat. 1219) is the exclusive authority 
     for identifying, considering, analyzing, or addressing 
     impacts occurring outside the boundary of the United States 
     of works constructed, acquired, or used within the 
     territorial limits of the United States.

                       TITLE IV--OTHER PROVISIONS

     SEC. 401. TOBACCO PERSONAL USE QUANTITY EXCEPTION TO NOT 
                   APPLY TO DELIVERY SALES.

       (a) Definitions.--Section 801 of the Tariff Act of 1930 (19 
     U.S.C. 1681) is amended by adding at the end the following:
       ``(3) Delivery sale.--The term `delivery sale' means any 
     sale of cigarettes or a smokeless tobacco product to a 
     consumer if--
       ``(A) the consumer submits the order for such sale by means 
     of a telephone or other method of voice transmission, the 
     mail, or the Internet or other online service, or the seller 
     is otherwise not in the physical presence of the buyer when 
     the request for purchase or order is made; or
       ``(B) the cigarettes or smokeless tobacco product is 
     delivered by use of a common carrier, private delivery 
     service, or the mail, or the seller is not in the physical 
     presence of the buyer when the buyer obtains personal 
     possession of the delivered cigarettes or smokeless tobacco 
     product.''.
       (b) Inapplicability of Exemptions From Requirements for 
     Entry of Certain Cigarettes and Smokeless Tobacco Products.--
     Section 802(b)(1) of the Tariff Act of 1930 (19 U.S.C. 
     1681a(b)(1)) is amended by adding at the end the following 
     new sentence: ``The preceding sentence shall not apply to any 
     cigarettes or smokeless tobacco products sold in connection 
     with a delivery sale.''.
       (c) State Access to Customs Certifications.--Section 802 of 
     the Tariff Act of 1930 (19 U.S.C. 1681a) is amended by adding 
     at the end the following new subsection:
       ``(d) State Access to Customs Certifications.--A State, 
     through its Attorney General, shall be entitled to obtain 
     copies of any certification required under subsection (c) 
     directly--
       ``(1) upon request to the agency of the United States 
     responsible for collecting such certification; or
       ``(2) upon request to the importer, manufacturer, or 
     authorized official of such importer or manufacturer.''.
       (d) Enforcement Provisions.--Section 803(b) of the Tariff 
     Act of 1930 (19 U.S.C. 1681b(b)) is amended--
       (1) in the first sentence, by inserting before the period 
     at the end the following: ``, or to any State in which such 
     tobacco product, cigarette papers, or tube is found''; and
       (2) in the second sentence, by inserting ``, or to any 
     State,'' after ``the United States''.
       (e) Inclusion of Smokeless Tobacco.--
       (1) Sections 802 and 803(a) of the Tariff Act of 1930 (19 
     U.S.C. 1681a and 1681b(a)) (other than the last sentence of 
     section 802(b)(1), as added by subsection (b) of this 
     section) are further amended by inserting ``or smokeless 
     tobacco products'' after ``cigarettes'' each place it 
     appears.
       (2) Section 802 of such Act is further amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by inserting ``or section 4 of the 
     Comprehensive Smokeless Tobacco Health Education Act of 1986 
     (15 U.S.C. 4403), as the case may be'' after ``section 7 of 
     the Federal Cigarette Labeling and Advertising Act (15 U.S.C. 
     1335a)'';
       (ii) in paragraph (2), by inserting ``or section 3 of the 
     Comprehensive Smokeless Tobacco Health Education Act of 1986 
     (15 U.S.C. 4402), as the case may be,'' after ``section 4 of 
     the Federal Cigarette Labeling and Advertising Act (15 U.S.C. 
     1333)''; and
       (iii) in paragraph (3), by inserting ``or section 3(d) of 
     the Comprehensive Smokeless Tobacco Health Education Act of 
     1986 (15 U.S.C. 4402(d)), as the case may be'' after 
     ``section 4(c) of the Federal Cigarette Labeling and 
     Advertising Act (15 U.S.C. 1333(c))'';
       (B) in subsection (b)--
       (i) in the heading of paragraph (1), by inserting ``or 
     smokeless tobacco products'' after ``cigarettes''; and
       (ii) in the heading of paragraphs (2) and (3), by inserting 
     ``or smokeless tobacco products'' after ``cigarettes''; and
       (C) in subsection (c)--
       (i) in the heading, by inserting ``or smokeless tobacco 
     product'' after ``cigarette'';
       (ii) in paragraph (1), by inserting ``or section 4 of the 
     Comprehensive Smokeless Tobacco Health Education Act of 1986 
     (15 U.S.C. 4403), as the case may be'' after ``section 7 of 
     the Federal Cigarette Labeling and Advertising Act (15 U.S.C. 
     1335a)'';
       (iii) in paragraph (2)(A), by inserting ``or section 3 of 
     the Comprehensive Smokeless Tobacco Health Education Act of 
     1986 (15 U.S.C. 4402), as the case may be,'' after ``section 
     4 of the Federal Cigarette Labeling and Advertising Act (15 
     U.S.C. 1333)''; and
       (iv) in paragraph (2)(B), by inserting ``or section 3(d) of 
     the Comprehensive Smokeless

[[Page 23166]]

     Tobacco Health Education Act of 1986 (15 U.S.C. 4402(d)), as 
     the case may be'' after ``section 4(c) of the Federal 
     Cigarette Labeling and Advertising Act (15 U.S.C. 1333(c))''.
       (3) Section 803(b) of such Act, as amended by subsection 
     (d)(1) of this section, is further amended by inserting ``, 
     or any smokeless tobacco product,'' after ``or tube'' the 
     first place it appears.
       (4)(A) The heading of title VIII of such Act is amended by 
     inserting ``AND SMOKELESS TOBACCO PRODUCTS'' after 
     ``CIGARETTES''.
       (B) The heading of section 802 of such Act is amended by 
     inserting ``AND SMOKELESS TOBACCO PRODUCTS'' after 
     ``CIGARETTES''.
       (f) Application of Civil Penalties to Relandings of Tobacco 
     Products Sold in a Delivery Sale.--
       (1) In general.--Section 5761 of the Internal Revenue Code 
     of 1986 (relating to civil penalties) is amended by 
     redesignating subsections (d) and (e) as subsections (e) and 
     (f), respectively, and inserting after subsection (c) the 
     following new subsection:
       ``(d) Personal Use Quantities.--
       ``(1) In general.--No quantity of tobacco products other 
     than the quantity referred to in paragraph (2) may be 
     relanded or received as a personal use quantity.
       ``(2) Exception for personal use quantity.--Subsection (c) 
     and section 5754 shall not apply to any person who relands or 
     receives tobacco products in the quantity allowed entry free 
     of tax and duty under chapter 98 of the Harmonized Tariff 
     Schedule of the United States, and such person may 
     voluntarily relinquish to the Secretary at the time of entry 
     any excess of such quantity without incurring the penalty 
     under subsection (c).
       ``(3) Special rule for delivery sales.--
       ``(A) In general.--Paragraph (2) shall not apply to any 
     tobacco product sold in connection with a delivery sale.
       ``(B) Delivery sale.--For purposes of subparagraph (A), the 
     term `delivery sale' means any sale of a tobacco product to a 
     consumer if--
       ``(i) the consumer submits the order for such sale by means 
     of a telephone or other method of voice transmission, the 
     mail, or the Internet or other online service, or the seller 
     is otherwise not in the physical presence of the buyer when 
     the request for purchase or order is made, or
       ``(ii) the tobacco product is delivered by use of a common 
     carrier, private delivery service, or the mail, or the seller 
     is not in the physical presence of the buyer when the buyer 
     obtains personal possession of the tobacco product.''.
       (2) Conforming amendments.--
       (A) Subsection (c) of section 5761 of such Code is amended 
     by striking the last two sentences.
       (B) Paragraph (1) of section 5754(c) of such Code is 
     amended by striking ``section 5761(c)'' and inserting 
     ``section 5761(d)''.
       (g) Effective Date.--The amendments made by this section 
     shall apply with respect to goods entered, or withdrawn from 
     warehouse for consumption, on or after the 15th day after the 
     date of the enactment of this Act.

     SEC. 402. ETHANOL TARIFF SCHEDULE.

       Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff 
     Schedule of the United States are each amended in the 
     effective period column by striking ``10/1/2007'' each place 
     it appears and inserting ``1/1/2009''.

     SEC. 403. WITHDRAWAL OF CERTAIN FEDERAL LAND AND INTERESTS IN 
                   CERTAIN FEDERAL LAND FROM LOCATION, ENTRY, AND 
                   PATENT UNDER THE MINING LAWS AND DISPOSITION 
                   UNDER THE MINERAL AND GEOTHERMAL LEASING LAWS.

       (a) Definitions.--In this section:
       (1) Bureau of land management land.--The term ``Bureau of 
     Land Management land'' means the Bureau of Land Management 
     land and any federally-owned minerals located south of the 
     Blackfeet Indian Reservation and east of the Lewis and Clark 
     National Forest to the eastern edge of R. 8 W., beginning in 
     T. 29 N. down to and including T. 19 N. and all of T. 18 N., 
     R. 7 W.
       (2) Eligible federal land.--The term ``eligible Federal 
     land'' means the Bureau of Land Management land and the 
     Forest Service land, as generally depicted on the map.
       (3) Forest service land.--The term ``Forest Service land'' 
     means--
       (A) the Forest Service land and any federally-owned 
     minerals located in the Rocky Mountain Division of the Lewis 
     and Clark National Forest, including the approximately 
     356,111 acres of land made unavailable for leasing by the 
     August 28, 1997, Record of Decision for the Lewis and Clark 
     National Forest Oil and Gas Leasing Environmental Impact 
     Statement and that is located from T. 31 N. to T. 16 N. and 
     R. 13 W. to R. 7 W.; and
       (B) the Forest Service land and any federally-owned 
     minerals located within the Badger Two Medicine area of the 
     Flathead National Forest, including--
       (i) the land located in T. 29 N. from the western edge of 
     R. 16 W. to the eastern edge of R. 13 W.; and
       (ii) the land located in T. 28 N., Rs. 13 and 14 W.
       (4) Map.--The term ``map'' means the map entitled ``Rocky 
     Mountain Front Mineral Withdrawal Area'' and dated December 
     31, 2006.
       (b) Withdrawal.--
       (1) In general.--Subject to valid existing rights, the 
     eligible Federal land (including any interest in the eligible 
     Federal land) is withdrawn from--
       (A) all forms of location, entry, and patent under the 
     mining laws; and
       (B) disposition under all laws relating to mineral and 
     geothermal leasing.
       (2) Availability of map.--The map shall be on file and 
     available for inspection in the Office of the Chief of the 
     Forest Service.
       (c) Tax Incentive for Sale of Existing Mineral and 
     Geothermal Rights to Tax-Exempt Entities.--
       (1) Exclusion.--For purposes of the Internal Revenue Code 
     of 1986, gross income shall not include 25 percent of the 
     qualifying gain from a conservation sale of a qualifying 
     mineral or geothermal interest.
       (2) Qualifying gain.--For purposes of this subsection, the 
     term ``qualifying gain'' means any gain which would be 
     recognized as long-term capital gain under such Code.
       (3) Conservation sale.--For purposes of this subsection, 
     the term ``conservation sale'' means a sale which meets the 
     following requirements:
       (A) Transferee is an eligible entity.--The transferee of 
     the qualifying mineral or geothermal interest is an eligible 
     entity.
       (B) Qualifying letter of intent required.--At the time of 
     the sale, such transferee provides the taxpayer with a 
     qualifying letter of intent.
       (C) Nonapplication to certain sales.--The sale is not made 
     pursuant to an order of condemnation or eminent domain.
       (4) Qualifying mineral or geothermal interest.--For 
     purposes of this subsection--
       (A) In general.--The term ``qualifying mineral or 
     geothermal interest'' means an interest in any mineral or 
     geothermal deposit located on eligible Federal land which 
     constitutes a taxpayer's entire interest in such deposit.
       (B) Entire interest.--For purposes of subparagraph (A)--
       (i) an interest in any mineral or geothermal deposit is not 
     a taxpayer's entire interest if such interest in such mineral 
     or geothermal deposit was divided in order to avoid the 
     requirements of such subparagraph or section 170(f)(3)(A) of 
     such Code, and
       (ii) a taxpayer's entire interest in such deposit does not 
     fail to satisfy such subparagraph solely because the taxpayer 
     has retained an interest in other deposits, even if the other 
     deposits are contiguous with such certain deposit and were 
     acquired by the taxpayer along with such certain deposit in a 
     single conveyance.
       (5) Other definitions.--For purposes of this subsection--
       (A) Eligible entity.--The term ``eligible entity'' means--
       (i) a governmental unit referred to in section 170(c)(1) of 
     such Code, or an agency or department thereof operated 
     primarily for 1 or more of the conservation purposes 
     specified in clause (i), (ii), or (iii) of section 
     170(h)(4)(A) of such Code, or
       (ii) an entity which is--

       (I) described in section 170(b)(1)(A)(vi) or section 
     170(h)(3)(B) of such Code, and
       (II) organized and at all times operated primarily for 1 or 
     more of the conservation purposes specified in clause (i), 
     (ii), or (iii) of section 170(h)(4)(A) of such Code.

       (B) Qualifying letter of intent.--The term ``qualifying 
     letter of intent'' means a written letter of intent which 
     includes the following statement: ``The transferee's intent 
     is that this acquisition will serve 1 or more of the 
     conservation purposes specified in clause (i), (ii), or (iii) 
     of section 170(h)(4)(A) of the Internal Revenue Code of 1986, 
     that the transferee's use of the deposits so acquired will be 
     consistent with section 170(h)(5) of such Code, and that the 
     use of the deposits will continue to be consistent with such 
     section, even if ownership or possession of such deposits is 
     subsequently transferred to another person.''.
       (6) Tax on subsequent transfers.--
       (A) In general.--A tax is hereby imposed on any subsequent 
     transfer by an eligible entity of ownership or possession, 
     whether by sale, exchange, or lease, of an interest acquired 
     directly or indirectly in--
       (i) a conservation sale described in paragraph (1), or
       (ii) a transfer described in clause (i), (ii), or (iii) of 
     subparagraph (D).
       (B) Amount of tax.--The amount of tax imposed by 
     subparagraph (A) on any transfer shall be equal to the sum 
     of--
       (i) 20 percent of the fair market value (determined at the 
     time of the transfer) of the interest the ownership or 
     possession of which is transferred, plus
       (ii) the product of--

       (I) the highest rate of tax specified in section 11 of such 
     Code, times
       (II) any gain or income realized by the transferor as a 
     result of the transfer.

       (C) Liability.--The tax imposed by subparagraph (A) shall 
     be paid by the transferor.
       (D) Relief from liability.--The person (otherwise liable 
     for any tax imposed by subparagraph (A)) shall be relieved of 
     liability for the tax imposed by subparagraph (A) with 
     respect to any transfer if--

[[Page 23167]]

       (i) the transferee is an eligible entity which provides 
     such person, at the time of transfer, a qualifying letter of 
     intent,
       (ii) in any case where the transferee is not an eligible 
     entity, it is established to the satisfaction of the 
     Secretary of the Treasury, that the transfer of ownership or 
     possession, as the case may be, will be consistent with 
     section 170(h)(5) of such Code, and the transferee provides 
     such person, at the time of transfer, a qualifying letter of 
     intent, or
       (iii) tax has previously been paid under this paragraph as 
     a result of a prior transfer of ownership or possession of 
     the same interest.
       (E) Administrative provisions.--For purposes of subtitle F 
     of such Code, the taxes imposed by this paragraph shall be 
     treated as excise taxes with respect to which the deficiency 
     procedures of such subtitle apply.
       (7) Reporting.--The Secretary of the Treasury may require 
     such reporting as may be necessary or appropriate to further 
     the purpose under this subsection that any conservation use 
     be in perpetuity.
       (d) Effective Dates.--
       (1) Moratorium.--Subsection (b) shall take effect on the 
     date of the enactment of this Act.
       (2) Tax incentive.--Subsection (c) shall apply to sales 
     occurring on or after the date of the enactment of this Act.

     SEC. 404. CONTINUING ELIGIBILITY FOR CERTAIN STUDENTS UNDER 
                   DISTRICT OF COLUMBIA SCHOOL CHOICE PROGRAM.

       (a) In General.--Section 307(a)(4) of the DC School Choice 
     Incentive Act of 2003 (sec. 38--1851.06(a)(4), D.C. Official 
     Code) is amended by striking ``200 percent'' and inserting 
     the following: ``200 percent (or, in the case of an eligible 
     student whose first year of participation in the program is 
     an academic year ending in June 2005 or June 2006 and whose 
     second or succeeding year is an academic year ending on or 
     before June 2009, 300 percent)''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as if included in the enactment of the DC 
     School Choice Incentive Act of 2003.

     SEC. 405. STUDY ON ESTABLISHING UNIFORM NATIONAL DATABASE ON 
                   ELDER ABUSE.

       (a) Study.--
       (1) In general.--The Secretary of Health and Human 
     Services, in consultation with the Attorney General, shall 
     conduct a study on establishing a uniform national database 
     on elder abuse.
       (2) Issues studied.--The study conducted under paragraph 
     (1) may consider the following:
       (A) Current methodologies used for collecting data on elder 
     abuse, including a determination of the shortcomings, 
     strengths, and commonalities of existing data collection 
     efforts and reporting forms, and how a uniform national 
     database would capitalize on such efforts.
       (B) The process by which uniform national standards for 
     reporting on elder abuse could be implemented, including the 
     identification and involvement of necessary stakeholders, 
     financial resources needed, timelines, and the treatment of 
     existing standards with respect to elder abuse.
       (C) Potential conflicts in Federal, State, and local laws, 
     and enforcement and jurisdictional issues that could occur as 
     a result of the creation of a uniform national database on 
     elder abuse.
       (D) The scope, purpose, and variability of existing 
     definitions used by Federal, State, and local agencies with 
     respect to elder abuse.
       (3) Duration.--The study conducted under paragraph (1) 
     shall be conducted for a period not to exceed 2 years.
       (b) Report.--Not later than 180 days after the completion 
     of the study conducted under subsection (a)(1), the Secretary 
     of Health and Human Services shall submit a report to the 
     Committee on Finance of the Senate and the Committee on Ways 
     and Means of the House of Representatives containing the 
     findings of the study, together with recommendations on how 
     to implement a uniform national database on elder abuse.
       (c) Authorization.--There are authorized to be appropriated 
     to carry out this section, $500,000 for each of fiscal years 
     2007 and 2008.

     SEC. 406. TEMPORARY DUTY REDUCTIONS FOR CERTAIN COTTON 
                   SHIRTING FABRIC.

       (a) Certain Cotton Shirting Fabrics.--
       (1) In general.--Subchapter II of chapter 99 of the 
     Harmonized Tariff Schedule of the United States is amended by 
     inserting in numerical sequence the following new headings:

131  9902.52.08     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton, of a
                     type described
                     in subheading
                     5208.21, of
                     average yarn
                     number
                     exceeding 135
                     metric, other
                     than fabrics
                     provided for in
                     headings
                     9902.52.20
                     through
                     9902.52.31,
                     certified by
                     the importer to
                     be suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Notes 18
                     and 19 of this
                     subchapter.....
     9902.52.09     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton, of a
                     type described
                     in subheading
                     5208.22, of
                     average yarn
                     number
                     exceeding 135
                     metric, other
                     than fabrics
                     provided for in
                     headings
                     9902.52.20
                     through
                     9902.52.31,
                     certified by
                     the importer to
                     be suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Notes 18
                     and 19 of this
                     subchapter.....
     9902.52.10     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton, of a
                     type described
                     in subheading
                     5208.29, of
                     average yarn
                     number
                     exceeding 135
                     metric, other
                     than fabrics
                     provided for in
                     headings
                     9902.52.20
                     through
                     9902.52.31,
                     certified by
                     the importer to
                     be suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Notes 18
                     and 19 of this
                     subchapter.....
     9902.52.11     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton, of a
                     type described
                     in subheading
                     5208.31, of
                     average yarn
                     number
                     exceeding 135
                     metric, other
                     than fabrics
                     provided for in
                     headings
                     9902.52.20
                     through
                     9902.52.31,
                     certified by
                     the importer to
                     be suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Notes 18
                     and 19 of this
                     subchapter.....
     9902.52.12     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton, of a
                     type described
                     in subheading
                     5208.32, of
                     average yarn
                     number
                     exceeding 135
                     metric, other
                     than fabrics
                     provided for in
                     headings
                     9902.52.20
                     through
                     9902.52.31,
                     certified by
                     the importer to
                     be suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Notes 18
                     and 19 of this
                     subchapter.....
     9902.52.13     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton, of a
                     type described
                     in subheading
                     5208.39, of
                     average yarn
                     number
                     exceeding 135
                     metric, other
                     than fabrics
                     provided for in
                     headings
                     9902.52.20
                     through
                     9902.52.31,
                     certified by
                     the importer to
                     be suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Notes 18
                     and 19 of this
                     subchapter.....
     9902.52.14     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton, of a
                     type described
                     in subheading
                     5208.41, of
                     average yarn
                     number
                     exceeding 135
                     metric, other
                     than fabrics
                     provided for in
                     headings
                     9902.52.20
                     through
                     9902.52.31,
                     certified by
                     the importer to
                     be suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Notes 18
                     and 19 of this
                     subchapter.....
     9902.52.15     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton, of a
                     type described
                     in subheading
                     5208.42, of
                     average yarn
                     number
                     exceeding 135
                     metric, other
                     than fabrics
                     provided for in
                     headings
                     9902.52.20
                     through
                     9902.52.31,
                     certified by
                     the importer to
                     be suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Notes 18
                     and 19 of this
                     subchapter.....

[[Page 23168]]

 
     9902.52.16     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton, of a
                     type described
                     in subheading
                     5208.49, of
                     average yarn
                     number
                     exceeding 135
                     metric, other
                     than fabrics
                     provided for in
                     headings
                     9902.52.20
                     through
                     9902.52.31,
                     certified by
                     the importer to
                     be suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Notes 18
                     and 19 of this
                     subchapter.....
     9902.52.17     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton, of a
                     type described
                     in subheading
                     5208.51, of
                     average yarn
                     number
                     exceeding 135
                     metric, other
                     than fabrics
                     provided for in
                     headings
                     9902.52.20
                     through
                     9902.52.31,
                     certified by
                     the importer to
                     be suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Notes 18
                     and 19 of this
                     subchapter.....
     9902.52.18     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton, of a
                     type described
                     in subheading
                     5208.52, of
                     average yarn
                     number
                     exceeding 135
                     metric, other
                     than fabrics
                     provided for in
                     headings
                     9902.52.20
                     through
                     9902.52.31,
                     certified by
                     the importer to
                     be suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Notes 18
                     and 19 of this
                     subchapter.....
     9902.52.19     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton, of a
                     type described
                     in subheading
                     5208.59, of
                     average yarn
                     number
                     exceeding 135
                     metric, other
                     than fabrics
                     provided for in
                     headings
                     9902.52.20
                     through
                     9902.52.31,
                     certified by
                     the importer to
                     be suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Notes 18
                     and 19 of this
                     subchapter.....
     9902.52.20     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton of a
                     type described
                     in subheading
                     5208.21, of
                     average yarn
                     number
                     exceeding 135
                     metric,
                     certified by
                     the importer to
                     be wholly of
                     pima cotton
                     grown in the
                     United States
                     and to be
                     suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Note 18 of
                     this
                     subchapter.....
     9902.52.21     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton of a
                     type described
                     in subheading
                     5208.22, of
                     average yarn
                     number
                     exceeding 135
                     metric,
                     certified by
                     the importer to
                     be wholly of
                     pima cotton
                     grown in the
                     United States
                     and to be
                     suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Note 18 of
                     this
                     subchapter.....
     9902.52.22     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton of a
                     type described
                     in subheading
                     5208.29, of
                     average yarn
                     number
                     exceeding 135
                     metric,
                     certified by
                     the importer to
                     be wholly of
                     pima cotton
                     grown in the
                     United States
                     and to be
                     suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Note 18 of
                     this
                     subchapter.....
     9902.52.23     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton of a
                     type described
                     in subheading
                     5208.31, of
                     average yarn
                     number
                     exceeding 135
                     metric,
                     certified by
                     the importer to
                     be wholly of
                     pima cotton
                     grown in the
                     United States
                     and to be
                     suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Note 18 of
                     this
                     subchapter.....
     9902.52.24     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton of a
                     type described
                     in subheading
                     5208.32, of
                     average yarn
                     number
                     exceeding 135
                     metric,
                     certified by
                     the importer to
                     be wholly of
                     pima cotton
                     grown in the
                     United States
                     and to be
                     suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Note 18 of
                     this
                     subchapter.....
     9902.52.25     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton of a
                     type described
                     in subheading
                     5208.39, of
                     average yarn
                     number
                     exceeding 135
                     metric,
                     certified by
                     the importer to
                     be wholly of
                     pima cotton
                     grown in the
                     United States
                     and to be
                     suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Note 18 of
                     this
                     subchapter.....
     9902.52.26     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton of a
                     type described
                     in subheading
                     5208.41, of
                     average yarn
                     number
                     exceeding 135
                     metric,
                     certified by
                     the importer to
                     be wholly of
                     pima cotton
                     grown in the
                     United States
                     and to be
                     suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Note 18 of
                     this
                     subchapter.....
     9902.52.27     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton of a
                     type described
                     in subheading
                     5208.42, of
                     average yarn
                     number
                     exceeding 135
                     metric,
                     certified by
                     the importer to
                     be wholly of
                     pima cotton
                     grown in the
                     United States
                     and to be
                     suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Note 18 of
                     this
                     subchapter.....
     9902.52.28     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton of a
                     type described
                     in subheading
                     5208.49, of
                     average yarn
                     number
                     exceeding 135
                     metric,
                     certified by
                     the importer to
                     be wholly of
                     pima cotton
                     grown in the
                     United States
                     and to be
                     suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Note 18 of
                     this
                     subchapter.....
     9902.52.29     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton of a
                     type described
                     in subheading
                     5208.51, of
                     average yarn
                     number
                     exceeding 135
                     metric,
                     certified by
                     the importer to
                     be wholly of
                     pima cotton
                     grown in the
                     United States
                     and to be
                     suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Note 18 of
                     this
                     subchapter.....
     9902.52.30     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton of a
                     type described
                     in subheading
                     5208.52, of
                     average yarn
                     number
                     exceeding 135
                     metric,
                     certified by
                     the importer to
                     be wholly of
                     pima cotton
                     grown in the
                     United States
                     and to be
                     suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Note 18 of
                     this
                     subchapter.....

[[Page 23169]]

 
     9902.52.31     Woven fabrics of  Free           No change      No change      On or before 12/31/2009
                     cotton of a
                     type described
                     in subheading
                     5208.59, of
                     average yarn
                     number
                     exceeding 135
                     metric,
                     certified by
                     the importer to
                     be wholly of
                     pima cotton
                     grown in the
                     United States
                     and to be
                     suitable for
                     use in men's
                     and boys'
                     shirts, the
                     foregoing
                     imported by or
                     for the benefit
                     of a
                     manufacturer of
                     men's and boys'
                     shirts under
                     the terms of
                     U.S. Note 18 of
                     this
                     subchapter.....
----------------------------------------------------------------------------------------------------------------

       (2) Definitions and limitation on quantity of imports.--The 
     U.S. Notes to subchapter II of chapter 99 of the Harmonized 
     Tariff Schedule of the United States are amended by adding at 
     the end the following:
       ``18. For purposes of headings 9902.52.08 through 
     9902.52.31, the term `manufacturer' means a person or entity 
     that cuts and sews men's and boys' shirts in the United 
     States.
       ``19. The aggregate quantity of fabrics entered under 
     headings 9902.52.08 through 9902.52.19 from January 1 to 
     December 31 of each year, inclusive, by or on behalf of each 
     manufacturer of men's and boys' shirts shall be limited to 85 
     percent of the total square meter equivalents of all imported 
     woven fabrics of cotton containing 85 percent or more by 
     weight of cotton used by such manufacturer in cutting and 
     sewing men's and boys' cotton shirts in the United States and 
     purchased by such manufacturer during calendar year 2000.''.
       (b) Determination of Tariff-Rate Quotas.--
       (1) Authority to issue licenses and license use.--In order 
     to implement the limitation on the quantity of cotton woven 
     fabrics that may be entered under headings 9902.52.08 through 
     9902.52.19 of the Harmonized Tariff Schedule of the United 
     States, as required by U.S. Note 19 to subchapter II of 
     chapter 99 of such Schedule, the Secretary of Commerce shall 
     issue licenses to eligible manufacturers under such headings 
     9902.52.08 through 9902.52.19, specifying the restrictions 
     under each such license on the quantity of cotton woven 
     fabrics that may be entered each year by or on behalf of the 
     manufacturer. A licensee may assign the authority (in whole 
     or in part) under the license to import fabric under headings 
     9902.52.08 through 9902.52.19 of such Schedule.
       (2) Licenses under u.s. note 19.--For purposes of U.S. Note 
     19 to subchapter II of chapter 99 of the Harmonized Tariff 
     Schedule of the United States, the Secretary of Commerce 
     shall issue a license to a manufacturer within 60 days after 
     the manufacturer files with the Secretary of Commerce an 
     application containing a notarized affidavit from an officer 
     of the manufacturer that the manufacturer is eligible to 
     receive a license and stating the quantity of imported woven 
     fabrics of cotton containing 85 percent or more by weight of 
     cotton purchased during calendar year 2000 for use in the 
     cutting and sewing men's and boys' shirts in the United 
     States.
       (3) Affidavits.--For purposes of an affidavit described in 
     this subsection, the date of purchase shall be--
       (A) the invoice date if the manufacturer is not the 
     importer of record; and
       (B) the date of entry if the manufacturer is the importer 
     of record.

     SEC. 407. COTTON TRUST FUND.

       (a) Establishment of Trust Fund.--There is established in 
     the Treasury of the United States a trust fund to be known as 
     the ``Pima Cotton Trust Fund'' (in this section referred to 
     as the ``Trust Fund''), consisting of such amounts as may be 
     transferred to the Trust Fund under subsection (b).
       (b) Transfer of Amounts.--
       (1) In general.--Beginning October 1, 2006, the Secretary 
     of the Treasury shall transfer to the Trust Fund, from the 
     general fund of the Treasury, amounts determined by the 
     Secretary of the Treasury to be equivalent to the amounts 
     received in the general fund that are attributable to duties 
     received since January 1, 1994, on articles under subheadings 
     5208.21.60, 5208.22.80, 5208.29.80, 5208.31.80, 5208.32.50, 
     5208.39.80, 5208.41.80, 5208.42.50, 5208.49.80, 5208.51.80, 
     5208.52.50, and 5208.59.80 of the Harmonized Tariff Schedule 
     of the United States, subject to the limitation in paragraph 
     (2).
       (2) Limitation.--The Secretary may not transfer more than 
     $16,000,000 to the Trust Fund in any fiscal year, and may not 
     transfer any amount beginning on or after October 1, 2008.
       (c) Distribution of Funds.--From amounts in the Trust Fund, 
     the Commissioner of the Bureau of Customs and Border 
     Protection shall make the following payments annually 
     beginning in fiscal year 2007:
       (1) 25 percent of the amounts in the Trust Fund shall be 
     paid annually to a nationally recognized association 
     established for the promotion of pima cotton grown in the 
     United States for the use in textile and apparel goods.
       (2) 25 percent of the amounts in the Trust Fund shall be 
     paid annually to yarn spinners of pima cotton grown in the 
     United States, and shall be allocated to each spinner in an 
     amount that bears the same ratio as--
       (A) the spinner's production of ring spun cotton yarns, 
     measuring less than 83.33 decitex (exceeding 120 metric 
     number) from pima cotton grown in the United States in single 
     and plied form during the period January 1, 1998 through 
     December 31, 2003 (as evidenced by an affidavit provided by 
     the spinner) bears to--
       (B) the production of the yarns described in subparagraph 
     (A) during the period January 1, 1998 through December 31, 
     2003 for all spinners who qualify under this paragraph.
       (3) 50 percent of the amounts in the Trust Fund shall be 
     paid annually to those manufacturers who cut and sew cotton 
     shirts in the United States who certify that they used 
     imported cotton fabric during the period January 1, 1998, 
     through July 1, 2003, and shall be allocated to each such 
     manufacturer in an amount that bears the same ratio as--
       (A) the dollar value (excluding duty, shipping, and related 
     costs) of imported woven cotton shirting fabric of 80s or 
     higher count and 2-ply in warp purchased by the manufacturer 
     during calendar year 2002 (as evidenced by an affidavit from 
     the manufacturer that meets the requirements of subsection 
     (d)) used in the manufacturing of men's and boys' cotton 
     shirts, bears to--
       (B) the dollar value (excluding duty, shipping, and related 
     costs) of the fabric described in subparagraph (A) purchased 
     during calendar year 2002 by all manufacturers who qualify 
     under this paragraph.
       (d) Affidavit of Shirting Manufacturers.--The affidavit 
     required by subsection (c)(3)(A) is a notarized affidavit 
     provided by an officer of the manufacturer of men's and boys' 
     shirts concerned that affirms--
       (1) that the manufacturer used imported cotton fabric 
     during the period January 1, 1998, through July 1, 2003, to 
     cut and sew men's and boys' woven cotton shirts in the United 
     States;
       (2) the dollar value of imported woven cotton shirting 
     fabric of 80s or higher count and 2-ply in warp purchased 
     during calendar year 2002;
       (3) that the manufacturer maintains invoices along with 
     other supporting documentation (such as price lists and other 
     technical descriptions of the fabric qualities) showing the 
     dollar value of such fabric purchased, the date of purchase, 
     and evidencing the fabric as woven cotton fabric of 80s or 
     higher count and 2-ply in warp; and
       (4) that the fabric was suitable for use in the 
     manufacturing of men's and boys' cotton shirts.
       (e) Date of Purchase.--For purposes of the affidavit under 
     subsection (d), the date of purchase shall be the invoice 
     date, and the dollar value shall be determined excluding 
     duty, shipping, and related costs.
       (f) Affidavit of Yarn Spinners.--The affidavit required by 
     subsection (c)(2)(A) is a notarized affidavit provided by an 
     officer of the producer of ring spun yarns that affirms--
       (1) that the producer used pima cotton grown in the United 
     States during the period January 1, 2002, through December 
     31, 2002, to produce ring spun cotton yarns, measuring less 
     than 83.33 decitex (exceeding 120 metric number), in single 
     and plied form during 2002;
       (2) the quantity, measured in pounds, of ring spun cotton 
     yarns, measuring less than 83.33 decitex (exceeding 120 
     metric number), in single and plied form during calendar year 
     2002; and
       (3) that the producer maintains supporting documentation 
     showing the quantity of such yarns produced, and evidencing 
     the yarns as ring spun cotton yarns, measuring less than 
     83.33 decitex (exceeding 120 metric number), in single and 
     plied form during calendar year 2002.
       (g) No Appeal.--Any amount paid by the Commissioner of the 
     Bureau of Customs and Border Protection under this section 
     shall be final and not subject to appeal or protest.

     SEC. 408. TAX COURT REVIEW OF REQUESTS FOR EQUITABLE RELIEF 
                   FROM JOINT AND SEVERAL LIABILITY.

       (a) In General.--Paragraph (1) of section 6015(e) of the 
     Internal Revenue Code of 1986 (relating to petition for tax 
     court review) is amended by inserting ``, or in the case of 
     an individual who requests equitable relief under subsection 
     (f)'' after ``who elects to have subsection (b) or (c) 
     apply''.
       (b) Conforming Amendments.--
       (1) Section 6015(e)(1)(A)(i)(II) of such Code is amended by 
     inserting ``or request is made'' after ``election is filed''.
       (2) Section 6015(e)(1)(B)(i) of such Code is amended--
       (A) by inserting ``or requesting equitable relief under 
     subsection (f)'' after ``making an election under subsection 
     (b) or (c)'', and
       (B) by inserting ``or request'' after ``to which such 
     election''.
       (3) Section 6015(e)(1)(B)(ii) of such Code is amended by 
     inserting ``or to which the request under subsection (f) 
     relates'' after ``to which the election under subsection (b) 
     or (c) relates''.
       (4) Section 6015(e)(4) of such Code is amended by inserting 
     ``or the request for equitable relief under subsection (f)'' 
     after ``the election under subsection (b) or (c)''.

[[Page 23170]]

       (5) Section 6015(e)(5) of such Code is amended by inserting 
     ``or who requests equitable relief under subsection (f)'' 
     after ``who elects the application of subsection (b) or 
     (c)''.
       (6) Section 6015(g)(2) of such Code is amended by inserting 
     ``or of any request for equitable relief under subsection 
     (f)'' after ``any election under subsection (b) or (c)''.
       (7) Section 6015(h)(2) of such Code is amended by inserting 
     ``or a request for equitable relief made under subsection 
     (f)'' after ``with respect to an election made under 
     subsection (b) or (c)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to liability for taxes arising or 
     remaining unpaid on or after the date of the enactment of 
     this Act.
       Amend the title to read as follows: ``An Act to amend the 
     Internal Revenue Code of 1986 to extend expiring provisions, 
     and for other purposes.''

  The SPEAKER pro tempore. Pursuant to House Resolution 1099, the 
gentleman from California (Mr. Thomas) and the gentleman from New York 
(Mr. Rangel) each will control 30 minutes.
  The Chair recognizes the gentleman from California.
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, to make sure that Members understand what we are doing, 
and, quite frankly, why we are doing it today rather than yesterday, is 
that we are considering H.R. 6111. H.R. 6111 is a bill that passed the 
House on suspension by voice vote on December 5. It then passed the 
Senate by unanimous consent with an amendment yesterday, December 7.
  We are doing this as the House of Representatives to assist the 
Senate under its rules to facilitate the handling of the amendment we 
are now discussing, and we are doing this because given the Senate 
rules, they would require a 2-day layover, two cloture votes and a 
number of other procedures. By doing this this way, we will save them a 
day and a cloture vote. Once again, the courtesy and kindness of the 
House is assisting the Senate in accomplishing the work of the 
Congress.
  So, if you will please understand, the gentleman from New York and I 
will lead a discussion on the amendment to H.R. 6111. In fact, the 
amendment is as though the entire text of H.R. 4608, the Tax Relief and 
Health Care Act of 2006, is before us. In addition to that, there are 
several other provisions that accompany the Tax and Health Care Relief 
Act.
  So, notwithstanding the merits of H.R. 6111, the discussion will be 
on the so-called tax extenders bill; the energy extenders bill; 
Medicare, the so-called doctors fix; the health care provisions; 
certain wilderness designations; some tariff procedures and other items 
which will in fact be the subject of the debate we are about to be 
engaged in.
  Mr. Speaker, I reserve the balance of my time.

                              {time}  1330

  Mr. RANGEL. Mr. Speaker, I ask unanimous consent to yield 15 minutes 
to the gentleman from Massachusetts (Mr. Markey), who is in opposition 
to the bill before us.
  The SPEAKER pro tempore. Without objection, the gentleman from 
Massachusetts will control that time.
  There was no objection.
  Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
  I concur, Mr. Speaker, with the observations of the chairman as to 
the content of this bill. Naturally, this is the last day of the 109th 
Congress, and I do hope that the new majority would at least learn how 
not to legislate. Most of the Members have no clue as to what is in 
this bill. This is a late hour. There is certainly far more good in it 
than bad.
  I wish we had seen fit to have been able to get the New York Liberty 
Bond 9/11 relief converted to a transportation infrastructure, which 
was stripped from this bill that passed the House before.
  There are other things in this bill, and I assume those people who 
are asking for time will be discussing them.
  Mr. Speaker, as of now, I reserve the balance of my time.
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  Perhaps again it is necessary to underscore the fact that the 
procedure we are going through is not the choice of the House. The 
current minority leader, to be the majority leader, and I know I am 
violating the rules when I say the gentleman from Nevada, personally 
called and asked that we engage in this procedure to assist the Senate. 
I do hope the gentleman from New York, when he assumes his majority 
rule, will see fit to accommodate even Members of the other party in 
making sure that the people's work is done in the most reasonable 
fashion possible.
  So, yes, it seems a little bit complicated, but it is in large part 
because both the Democratic and the Republican leadership of the Senate 
asked for our assistance in doing it this way.
  Mr. Speaker, it is my pleasure to yield 2 minutes to the gentleman 
from Arizona (Mr. Hayworth), a distinguished member of the Ways and 
Means Committee.
  Mr. HAYWORTH. Mr. Speaker, I thank my colleague from California, and 
I would be remiss if I did not take a portion of this time to thank him 
for his stewardship and his time as chairman of the Ways and Means 
Committee.
  While we are in a period where we move to complete the 109th Congress 
and we look ahead, it is worth noting that what has passed is prologue, 
and indeed, as we have just come through a campaign where the cry has 
been for bipartisanship, for consensus, I commend one of the 
procedures, or one of the provisions, that is included in this 
legislative vehicle of extenders for tax considerations, and that is, 
the extension of the solar and fuel cell investment tax credits.
  Why do we offer this? Well, because there is support for alternative 
forms of energy and, in particular solar power, from all America. 
Eighty-two percent of Republicans, 77 percent of Democrats, 87 of 
Independents say we need to find alternative forms of energy.
  Mr. Speaker, for over a decade, I have been honored to represent the 
people of Arizona, more specifically, the eponymously nicknamed Valley 
of the Sun. But from Maine to Montana, from Arizona to Alaska to 
Alabama, across the country we need to utilize alternative forms of 
energy such as solar energy, such as fuel cell technology, and this 
provision does so.
  We extend it for an additional year. Were it up to me, I would like 
to see it for a full decade, but as we know, as my good friend, the 
late John Rhodes, our former House Republican leader, used to say, 
``Politics is the art of the possible.''
  Today with this legislation, though some are troubled by process, we 
have a chance to produce results. I ask you to join us in passing this 
legislation and extending solar and fuel cell investment tax credits.
  Mr. MARKEY. Mr. Speaker, I yield myself 3 minutes.
  Mr. Speaker, this bill contains a provision which really is unrelated 
completely to the tax extenders. There are indeed tax credits and other 
things, very good; but what they have decided to do is attach a rider 
to this bill, and that rider is a special sweetheart deal that changes 
the entire formula for the collection of royalties, that is, taxes, for 
the American people for oil and gas which is drilled for on public 
lands.
  Because of this change in formula, $170 billion is going to be 
transferred from the pockets of the American taxpayer of 46 States and 
sent to four States. In the course of the debate this afternoon within 
the hour, we will be considering an amendment, an amendment which will 
say that if any oil companies want to drill for the oil in the gulf 
that is going to be permitted under this new bill, that these companies 
must renegotiate the old leases which they received back in the 1990s, 
which, believe it or not, makes it possible for them to escape paying 
royalties on oil and gas drilled for on public lands in the United 
States. Even if the price of oil goes to $40, $50, $60, $70, $80 a 
barrel, oil companies do not pay any more royalties.
  Well, what our amendment will say is that they must renegotiate. The 
oil and gas industry must renegotiate with the Federal Government to 
return those windfall profits on the old leases

[[Page 23171]]

before they are going to be allowed to drill for these new leases in 
the Gulf of Mexico. In that way, the taxpayers will reclaim $20 to $30 
billion of revenues that can be used for health care, for education, to 
pay for the war in Iraq, to balance the Federal budget.
  So I just want all the Members to know that that is the nature of the 
amendment which is going to come up within the hour. It is fair. If the 
oil companies are going to receive such a boon out of this bill, if the 
gulf States are going to receive such a boon out of this bill, as much 
as I object to it, the least that we should be able to say is that we 
reclaim those revenues, and as a bonus, Mr. Rangel has inserted into 
the amendment, which I will be making, a provision which extends the 
AMT protection for 20 million Americans so their taxes do not go up 
next year, 2007.
  So with two things, you reclaim 20 to $30 billion from oil companies 
and you protect all taxpayers from an increase in the AMT.
  Mr. Speaker, I reserve the balance of my time.
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, so that people again understand the process, 
notwithstanding the fact we are dealing with what amounts to a tax 
bill, because of the unusual procedure of using H.R. 6111 as a vehicle, 
asked for by the bipartisan leadership of the Senate and provided by us 
as a courtesy, there would be no motion to recommit available to the 
minority. This is a substantive amendment which is functioning as a 
substitute for the motion to recommit.
  It has been indicated to me directly by that bipartisan leadership 
and those individuals I mentioned that if what was to be a motion to 
recommit and which will now be a substantive amendment passes, in their 
opinion, this bill will not be able to move through the Senate.
  It may surprise the gentleman from Massachusetts to know that I agree 
with virtually everything he said and would like to add additional 
items in terms of the OCS provision. In fact, an Outer Continental 
Shelf measure passed the House. The measure that is currently carried 
in this amendment is totally isomorphic, exactly the same as the Outer 
Continental Shelf legislation that passed the Senate, that the Senator 
from New York, Mrs. Clinton, that the Senator from Nevada, Mr. Reid, 
and others supported 71-25. Need I say, this is an additional courtesy 
that the House is providing.
  If, in fact, Mr. Markey's amendment passes, everything we will be 
talking about for the rest of the time on this amendment will be moot.
  Mr. Speaker, it is now my pleasure to yield 2 minutes to the 
gentleman from Illinois (Mr. Weller), an extremely valued member of the 
Ways and Means Committee.
  Mr. WELLER. Mr. Speaker, I thank the chairman for his leadership in 
the last 6 years in the House Ways and Means Committee. It has been a 
privilege to serve with you and under your leadership.
  I rise in support of this legislation, which is known as the extender 
legislation, extending tax provisions which expired this past year, all 
tax provisions that have an economic impact on investment decisions 
affecting the economy in my district and the economy of our Nation.
  I am pleased that we are extending the work opportunity tax credit. I 
am pleased we are extending the welfare-to-work tax credit. I am 
pleased that we are combining these two to make them much more 
efficient. When Ronald Reagan created the welfare-to-work tax credit 
back in the early 1980s, his goal was pretty simple: let us give those 
who are on the welfare rolls an opportunity to get a job and 
incentivize private employers to do that, and it has worked. In the 
district I represent, an estimated 700 workers today have jobs because 
of the work opportunity tax credit.
  Most are pleased that this legislation extends and expands the 
brownfields tax incentive. I represent an oil industrial area. They 
have brownfields, old industrial parks. We want to recycle them. We 
want to reclaim them. We want to revitalize the neighborhoods they are 
located in. The brownfields tax incentive provides that incentive for 
private investors to purchase it, help recover their costs in 
environmental cleanup.
  Also in this legislation we expand it. Forty percent of brownfields 
have petroleum contamination. If you are driving through a community 
and you see that old abandoned gas station that has been there for 
decades and you wonder why somebody has not bought it, that is because 
there is petroleum contamination. This tax incentive will help clean 
that up and revitalize that strategic corner in your community.
  Also, I want to commend this House and this committee on moving 
forward on extending the energy-efficient homes tax incentive. When you 
often think about it, 20 percent of the energy we consume in America is 
consumed in our residences, in our homes, and people when they put a 
little extra money in their home, they want to make their bathroom 
nicer or they want a nicer, fancier kitchen, they do not always think 
about the need to conserve energy. The energy-efficient homes tax 
incentive encourages home builders, those building new construction, 
new homes to make them better insulated, better windows, better doors 
and ceilings and reducing energy costs.
  I would note that both brownfields provisions and the energy-
efficient residential tax incentive are both important environmental 
initiatives as well. We often talk about jobs being created, but when 
you reduce energy consumption, when you clean up and revitalize old 
industrial parks and, frankly, when you give those on welfare an 
opportunity to work, we all win.
  So I encourage bipartisan support for this legislation, urge an 
``aye'' vote.
  Mr. RANGEL. Mr. Speaker, I am privileged to yield 2 minutes to the 
gentleman from Michigan (Mr. Levin), a senior respected member of the 
Ways and Means Committee.
  Mr. LEVIN. Mr. Speaker, I thank Mr. Rangel.
  All due respect to the energies and labors of the chairman of the 
committee, this is another example of how not to legislate. I favor the 
extenders bill. Almost everyone else in this place does. Mr. Rangel has 
been talking about extenders extensively.
  An extenders bill could pass this House and could pass the Senate 
today on its own, just like this. Why is that not happening? It is not 
just because the gentleman from Arizona says politics is the art of the 
possible. It is also because it should be the art of the rational and 
the art of the appropriate, and this package is not appropriate.
  Mr. Markey has spoken so eloquently about the Continental Shelf 
legislation, and now we are threatened that if his amendment fails the 
whole bill fails, which I think is a statement of how not to legislate. 
We do not want to legislate by holding ourselves hostage. That is not 
the way to legislate.

                              {time}  1345

  And also there will be some discussion about the health savings 
account. That proposal could not pass on its own, so essentially it is 
being packaged with the extenders bill because it is the only way to 
get it through here. We will do it differently next year; we will serve 
the people of this country more effectively, more openly. When there is 
a bill like the extenders bill that can rise on its own, it will do 
that.
  The Senate says they need our cooperation. We will cooperate. It 
would be better to send the extenders bill on its own.
  So all of us will have this choice, a package of good and bad, and 
each of us will have to make that decision, a decision we should not be 
forced to make.
  Mr. MARKEY. I yield 3\1/2\ minutes to the gentleman from New York 
(Mr. Hinchey).
  Mr. HINCHEY. Mr. Speaker, I want to thank my friend and colleague 
from Massachusetts for his initiative on this legislation, because what 
he is doing is making available to this House the opportunity to 
correct a very serious problem which has been existing now since 1995.
  In 1995, this House and this Congress passed a law which essentially 
allows the oil companies to take oil and natural gas from the American 
people out

[[Page 23172]]

of their public property without paying them the royalties that are 
owed to them. This ridiculous situation has been going on now for more 
than 10 years.
  We have an amendment that is being offered to this bill which every 
Member of this House should vote for. If they have any respect for 
their obligations to the American people, every Member of this House 
should vote for this amendment, because what this amendment does is 
this, very simply: It says to the oil companies, if you want new leases 
so that you may increase your profits by taking a very valuable 
commodity from public property owned by the American people, if you 
want to be able to do that, you have to in order to get those new 
leases renegotiate the old leases that you have on public property so 
that you will pay back to the taxpayers of America the money that you 
owe them on this commodity, oil and natural gas.
  It is a very simple and very reasonable thing to do. If we fail to do 
it, what will happen is this. According to the Department of the 
Interior, the taxpayers of America will lose as much as $60 billion 
which will go into the pockets of the oil companies who are already 
realizing record profits. The oil companies have more cash than they 
know what to do with. And what this Congress has been doing is allowing 
them to increase their profits by taking a product that is owned by the 
taxpayers of America, exploiting that situation, increasing their 
profits, and not paying back the percentage of royalties that is owed 
to the people of this country. So it is a very simple amendment, and 
there is absolutely no reason why it should not pass.
  This House already passed an amendment just like this. Back in May, 
Mr. Markey and I offered an amendment to an Interior appropriations 
bill which would do precisely the same thing. That amendment was 
adopted by this House by a very substantial margin. The problem is the 
Interior appropriations bill went over to the other Chamber and since 
then nothing has happened with the bill, it has just laid there idly. 
And so the situation now continues to exist.
  So what the majority here apparently wants to do is to say that even 
though the oil companies have leases on 80 percent of the land that is 
available, of the offshore land that is available, they want to 
increase that above and continue to take this product and continue to 
take this commodity from the American people without paying them back 
the money that is owed to them.
  This has got to stop. It has been going on now for more than a 
decade. The people of this country continue to suffer. And that is one 
of the reasons why they made the decision on November 7 that they did, 
because they recognize the suffering that they have been exposed to as 
a result of the carelessness and exploitation that has been authorized 
by this Congress.
  Pass this amendment, correct the mistake, give the American people 
the money that is owed to them, and do it in a just way.
  Mr. THOMAS. Mr. Speaker, I appreciate people and their passion 
getting a bit carried away.
  This bill was signed into law by the last Democratic President, Mr. 
Clinton. It was on your watch. To stand in the well and tell us what is 
in the amendment that is going to be offered in a short time, after 
being criticized that they have only had 2 days on the content of our 
amendment, is absolutely unbelievable.
  We made this amendment in order because you didn't have the right to 
the motion to recommit. The Rules Committee out of courtesy asked you, 
could we have a copy of your amendment? You told the Rules Committee 
``No, you couldn't have a copy of the amendment.''
  Mr. Markey earlier described your amendment as having more than one 
item. Mr. Hinchey talked about it being OCS. Mr. Markey said it was OCS 
and it was AMT and it may be something else.
  What amazes me is that they can stand there with a straight face and 
criticize us because they only got the copy, the absolute legislative 
language, 2 days ago on our bill, and they have the audacity to go to 
the well and describe their amendment and what it is when they won't 
even give us a copy of it. Now, this is a preview of the coming 
majority in terms of their saying one thing and doing another. Buckle 
your seat belts. The piety and the arguments about how correct they are 
and how unfair it is was just said. This was done by this Congress, it 
was signed by President Clinton, and we have no idea what is in your 
amendment because you didn't even offer the courtesy of giving us the 
language of your amendment notwithstanding the fact that we gave you 
the privilege of offering an amendment. Now, that is what this is 
about. Okay?
  Mr. Speaker, I yield 2 minutes to the gentleman from California (Mr. 
Herger), a member of the committee.
  Mr. HERGER. Mr. Speaker, I rise in strong support of the tax relief 
legislation before us today.
  I would also like to make a note of thanks to Chairman Bill Thomas. 
Bill is ending a prolific 6-year tenure as chairman of the Ways and 
Means Committee, during which he has been responsible for the passage 
of each pro-growth and pro-family tax measure since 2001. I would like 
to thank Chairman Thomas and his staff for their work which has 
continued through the writing of today's legislation.
  Among the expiring tax relief measures is an extension and 
modernization of the research and development tax credit. In my own 
home State of California, more than 6,600 firms perform R&D, helping to 
make California number one in reported research and development 
activity. In the face of an extremely competitive global marketplace, 
the R&D tax credit helps keep America first among other nations in new 
cutting-edge innovation.
  Also included is a provision that helps bring equity to farmers and 
small businesses in rural areas such as my own home district in 
northern California. Agricultural aviators, who are exempt from fuel 
excise taxes, will now be able to claim tax refunds directly without 
having to rely on fuel suppliers to pass along this benefit. Even 
though this is a small change, it will help reduce fuel costs for ag 
aviators and spraying costs for farmers who employ ag aviators to plant 
and maintain their crops. Mr. Speaker, I urge passage of this bill.
  Mr. RANGEL. Mr. Speaker, I am going to be very careful in the words 
that I select because I am not certain that the House physician's 
office is still open, and I just don't want to get overstressed over a 
parliamentary problem that we are having here. But it is very difficult 
to understand how the outgoing chairman could be so frustrated that the 
amendment is coming at this late hour, because we cannot really get an 
amendment together until we know what we are amending, and I assume 
that we didn't know that until sometime early this morning at a meeting 
that took place at a room which I don't know where it exists. So I 
think that this amendment that we do have deals with an issue that we 
never expected to be included in the extended bills. And under the 
parliamentary procedures that we have in this august House and this 
institution, Members, even if they are in the minority, have an 
opportunity at any time to raise it before the House. And we hope that 
we can extend this courtesy for the years that we have to come.
  I would like to yield 2 minutes to the distinguished gentleman Mr. 
Pomeroy from the sovereign State of North Dakota.
  Mr. POMEROY. Mr. Speaker, I thank the gentleman for yielding and 
would amplify just for a moment on his point. You can't get your 
amendment set until you know what the underlying bill is. And with all 
the moving parts in the underlying bill, that simply was not possible.
  But I believe that this election was about restoring more of a 
bipartisan tone to the functions of this Chamber. And in that context, 
I want to tell the departing chairman I wish him well as his service in 
this body comes to a conclusion. I wish all my Ways and Means 
colleagues, Republicans and Democrats alike, a very happy holiday 
season.

[[Page 23173]]

  There are several portions of this bill that are important, and I 
applaud those who constructed this legislation for including these 
components. I am not speaking about the amendment which will be 
brought; that will be dealt with by other speakers. But there is a lot 
of good in this bill, and I don't want it lost in the discussion here.
  I chair, along with Greg Walden, a bipartisan group, the Rural Health 
Care Coalition. We have advanced legislation to try to improve the 
unfairness of the Medicare system relative to rural hospitals. I am 
pleased that the bill includes provisions, including a continuation of 
the geographic classification issue, section 508, that was in the 
Medicare Modernization Act and addresses reasonable cost payment for 
lab tests in small rural hospitals and a number of other provisions 
found their way into this bill. They are important to us, and I speak 
in favor of them.
  I also believe that it was absolutely essential we address this 
physician payment issue in this legislation. It should be underscored, 
I suppose, that this is just a very stop-gap fix and more will need to 
be done. There is some very important features in here on renewable 
energy as well. The plus-up of the clean renewable energy bonds with an 
additional $400 million to fund renewable energy projects, extremely 
important. A 1-year continuation of the wind production tax credit is, 
no question, going to allow more wind farms to be brought online, 
bringing this renewable energy source, clean renewable energy source, 
more into our power mix. And the extension of the ethanol tariff is 
also important, something to keep in mind as we consider it this 
afternoon.
  Mr. Speaker, I rise in support of H.R. 6111, the Tax Relief and 
Health Care Act of 2006 as it provides for much needed relief for those 
physicians, hospitals and laboratories who serve North Dakota's 103,000 
Medicare patients.
  As you know, the Medicare Modernization Act made long overdue 
corrections to significant flaws in Medicare payment schemes that have 
made a tremendous difference to the hospitals, doctors and other 
providers in my State and throughout the rural America. Several of 
these provisions, which help to level the playing and simply keep 
hospitals and doctors offices open, have or are about to expire. 
However, access to health care services in rural areas continues to be 
in jeopardy due to physician shortages, low patient volume and 
geographic isolation. In my own State of North Dakota, over two-thirds 
of our counties are designated as Physician Scarcity Areas.
  That is why Representative Greg Walden, myself and over 50 other 
bipartisan members of the Rural Health Care Coalition introduced H.R. 
6030, the Health Care Access and Rural Equity Act, otherwise known as 
H-CARE. This commonsense legislation significantly improves health care 
quality and access in North Dakota and rural America while also 
increasing the viability of rural providers.
  I am pleased to see that a number of the provisions Representative 
Walden and I authored for H-CARE are included in today's bill. From 
extending the Medicare Modernization Act, MMA, floor on the Medicare 
work geographic adjustment for physician services to continuing to 
provide reasonable cost payment for lab tests in small rural hospitals, 
H.R. 6111 helps to maintain important corrections in our current 
Medicare payment system. In addition, this bill extends a critical 
provision of the MMA that created greater wage parity between hospitals 
in my State of North Dakota.
  These MMA rural health provisions have already made a tremendous 
difference in our State. For example, one hospital was able to use the 
funding to recruit four new physicians. Other hospitals used the 
funding to invest in capital infrastructure including much needed and 
costly ultrasound equipment and electronic health record systems. In 
addition, these hospitals were able to increase salaries anywhere from 
4 to 8 percent.
  While H.R. 6111 extends many critical rural health care provisions 
from the MMA and brings temporary relief for our Nations physician's, 
our work is not done. I think we would all agree that the physician 
payment system under Medicare is a flawed system that penalizes 
efficient care and rewards excessive care. I look forward to working 
with my colleagues in the 110th Congress in a bipartisan manner to 
improve our Medicare physician payment system and further advance the 
remaining components of H-CARE in order to improve access to quality, 
affordable health care in North Dakota and rural America.
  This bill also contains important provisions for our growing 
renewable energy industry. Included in H.R. 6111, the Tax Relief and 
Health Care Act of 2006, are an extension and expansion of the Clean 
Renewable Energy Bond program, a 1-year extension of the Wind 
Production Tax Credit and over a year extension of the ethanol tariff 
that protects American ethanol producers from subsidized foreign 
ethanol.
  Through this continued investment in renewable energy we not only 
build a sustainable industry for our State but we are helping make 
America more energy independent and more secure.
  Clean Renewable Energy Bonds, which I helped develop as part of the 
2005 Energy Bill, can now be offered for an additional year and have 
been authorized to release an additional $400 million of clean energy 
bonds. In North Dakota we have already seen the effects that Clean 
Renewable Energy Bonds can have. The city of Fargo will be using Clean 
Renewable Energy Bonds to finance a wind tower and a methane gas 
facility that will be used to reduce the city's energy costs. Great 
River Energy will also be using these energy bonds to finance the 
construction of a coal drying facility which will not only increase the 
efficiency of North Dakota lignite coal but also reduce emissions.
  Clean Renewable Energy Bonds work by allowing a Federal tax credit to 
holders of bonds issued by public utilities and cooperatives to finance 
clean energy projects. Not-for-profit utilities can sell clean energy 
bonds to stakeholders, but instead of the utility or cooperative paying 
out interest to the bondholder, the Federal Government would give the 
bondholder a tax credit. These bonds provide what amounts to interest 
free loans for co-ops and public power systems to finance renewable 
energy projects.
  This bill also extends the wind production tax credit to 2009. In 
2015, wind energy generation is expected to reach 63 gigawatts with the 
tax credit in place compared to an estimated 9.3 gigawatts without. 
This represents a 650 percent increase in wind generation.
  However, without stabilizing the tax credit, companies like DMI 
Industries in West Fargo and LM Glassfiber in Grand Forks are in 
constant limbo. DMI manufactures wind turbine towers and had furloughed 
over 100 employees in late 2003 after the expiration of the wind 
production tax credit. LM Glassfiber, which manufactures wind turbine 
blades, had previously idled all production due to the delay in 
extending the wind tax credit and was forced to furlough 60 to 70 
employees.
  Mr. MARKEY. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
New York (Mrs. Maloney).

                              {time}  1400

  Mrs. MALONEY. Mr. Speaker, I thank the gentleman for yielding and for 
all of his leadership, and I congratulate the dean of our delegation, 
Charlie Rangel, for working hard on this bill and restructuring of the 
bond issue for New York City, among other issues.
  Why I am rising today, however, is the audit report that came out 2 
days ago of the Department of the Interior. It was a scathing 
indictment of mismanagement and cronyism. In my years on the Committee 
on Government Reform, it is the worst report I have seen and it 
documents billions of dollars that are owed to the American people for 
oil and gas extracted from federally owned land, land owned by the 
American people. These revenues are not coming into the Treasury, but 
into the pockets of the oil industry.
  I rise in support of the Markey-Hinchey amendment, which includes, 
among other things, a renegotiation of these leases to pay a fair price 
to the American public and to our country. It is long overdue. We 
should not tolerate this type of mismanagement. It showed that the 
number of audits have gone down, the number of auditors have come down. 
They have a paper compliance review board that has oversight which 
amounts to pushing paper around. It is not a watchdog, but a lap dog, 
for private industry as opposed to documentation of what is fairly 
owned to the American people and to our government.
  Correcting this will literally bring 10 to $30 billion into the 
Treasury of the United States. It is the fair thing to do. It is the 
right thing to do. We should all follow and read this important report 
and vote to renegotiate the rip-off leases and have them pay a fair 
deal for what they are reaping for their own pockets.

[[Page 23174]]

  Our constituents are paying record prices at the pump and for heating 
oil; yet the oil companies are not paying their fair due for their 
leases on American federally owned property. This is an important 
amendment, and I urge my colleagues to support it.
  Mr. THOMAS. Mr. Speaker, I yield myself 5 seconds.
  Mr. Speaker, this is the third Member on the other side of the aisle 
who spoke passionately about an amendment that apparently they have had 
time to write, circulate and read. We have not been presented with that 
amendment. Obviously, with some fervor, I indicated that I didn't think 
that probably was the fair thing to do. They now know how the majority 
feels, having given them the right to offer an amendment. My assumption 
is that continued refusal to provide us with a copy of the amendment is 
willful.
  Mr. RANGEL. You may not have received the amendment, but you have 
received the best wishes from the Democrats on your 65th birthday, and 
we wish you well.
  Mr. THOMAS. Mr. Speaker, will the gentleman yield?
  Mr. RANGEL. I yield to the gentleman from California.
  Mr. THOMAS. That was 2 days ago. What are you doing for me lately?
  Mr. RANGEL. We are saying good-bye.
  Mr. Speaker, I would like to yield 2 minutes to an outstanding Member 
who has served this Congress and served the Ways and Means Committee 
with distinction. And as he goes to raise the level of intellect in the 
other body, I yield to him on this bill.
  Mr. CARDIN. Mr. Speaker, let me thank Mr. Rangel not just for 
yielding me this time, but for your friendship. I have enjoyed my years 
on the Ways and Means Committee. Mr. Thomas, I wish you only the best. 
It has been an incredible experience to serve on the Ways and Means 
Committee.
  It is interesting that the last bill that we will be considering, 
maybe not the last because we will have a trade bill later, but this 
bill causes me some trouble because of the manner in which provisions 
have been brought together. It seems to me that we should have had an 
opportunity to vote on many of these provisions separately.
  Several provisions that have been incorporated in this bill I have 
voted against, and I would like an opportunity to do that again.
  I am troubled because there are some very important provisions 
included in this legislation. As you know, we let expire many important 
tax provisions in the beginning of this year, and this bill will 
reinstate those provisions effective for 2006 and 2007.
  I am particularly pleased that the research and development credit is 
extended and improved for 2007. I worked with Mr. Weller from the other 
side of the aisle so we could make the research and development credit 
more available for businesses today. I am glad that is included.
  I am glad that we have extended the deduction for higher education 
expenses. We need to bring down the cost for higher education for 
families in this country.
  On the environmental front, I am very pleased we have extended the 
provisions for electricity-using renewable sources. That is certainly 
in our interest as a Nation on energy independence.
  I am also pleased that on the Medicare side we have found a way to 
provide relief for physicians update for this year. I hope that we will 
be able in the next Congress to do that on a permanent basis, and I am 
pleased also that we have been able to extend therapy cap provisions so 
that the harsh impact will not be felt by Medicare beneficiaries.
  Mr. Speaker, there are many provisions in this bill that are 
extremely important for us to enact before we adjourn sine die. I am 
pleased that the provisions that have come under the jurisdiction of 
the Ways and Means Committee are provisions that I think are important 
to be enacted, and I hope we will find a way to ensure that they are 
enacted before we adjourn sine die.
  Mr. MARKEY. Mr. Speaker, I reserve the balance of my time.
  Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentleman from 
California (Mr. Becerra), an outstanding member of the committee.
  Mr. BECERRA. Mr. Speaker, here we are on December 8 talking about 
legislation that we had discussed in prior months this year before this 
Congress was set to adjourn officially on September 30. We find today a 
circumstance where we have some very good provisions that are lumped 
together in this legislation.
  We have provisions in this bill that would promote the cleanup of 
brownfields. Those are contaminated sites throughout this country that 
are lying empty because they are too contaminated to use and too 
expensive to clean up. We are going to promote the cleanup of those 
brownfields.
  We are going to provide a better way to have environmental 
settlements occur so we have funds in place that will then be used to 
help pay for cleanup of environmental degradation.
  We have the very important research and development tax credit which 
so much of American business needs to know about so they can make sound 
investments into the future about what to devote their next 10-20 
years' worth of money into in terms of research and development.
  We have the welfare-to-work tax credit to get folks on welfare back 
to work.
  We have the extension of the American Jobs Creation Act for Puerto 
Rico manufacturing; but we have a lot of other things as well that 
don't belong here.
  It is one of those circumstances where you are looking at a great 
baby that just took a bath and you are wondering how you can get rid of 
the bath water without getting rid of the baby. Unfortunately, it is a 
circumstance where many Members are probably going to wait until the 
time of the vote to decide if it is worth throwing away the bath water 
and not jeopardizing the baby.
  I must say, it is good to know we are at December 8 with a vote 
having taken place in November, with the American public having told us 
enough is enough, we want a new direction and a new way of doing 
things. I hope come 2007 this Congress will behave itself in a way that 
makes the American people proud of what it has so we don't have 
circumstances where a lot of Members say there is some great stuff 
here, and a lot of bad stuff, too. At the end of the day, this will be 
a vote that no one will be too proud of, but hopefully will move us 
forward.
  Mr. MARKEY. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
California (Mrs. Capps).
  Mrs. CAPPS. Mr. Speaker, I rise in reluctant opposition to this 
package of bills the Republican leadership has brought to the floor.
  Included are many provisions that are worthy of support of this 
House. The bill extends important energy-efficiency tax credits, 
provisions so important to American families and businesses, which 
should be extended.
  The bill also prevents what would have amounted to a 5.1 percent cut 
in Medicare physician reimbursements. That cut would be devastating, 
hindering physicians' ability to treat their patients.
  But I must vote against this package because it includes the so-
called Gulf of Mexico Energy Security Act. That act makes this bill 
fiscally irresponsible. According to estimates, the bill will drain 
$170 billion from the Federal Treasury over the next 60 years, creating 
a new entitlement immediately, giving away huge amounts of revenue from 
offshore drilling, mostly to only four Gulf Coast States. It is a great 
deal for those four States, and I understand why they would support it; 
but what I don't understand is why any colleagues from the other 46 
States would agree to it.
  The offshore waters of the gulf coast belong to all Americans, as do 
the Pacific and Atlanta Oceans, the Great Lakes, and public lands. This 
country has record deficits as far as the eye can see, and it is simply 
irresponsible to add billions more in new debt through legislation like 
this.
  Mr. Speaker, in the new Democratically controlled Congress, we can 
and we should craft a sensible new energy

[[Page 23175]]

policy, one that helps Louisiana and other States rebuild wetlands and 
restore their coasts, and one that makes America less dependent on 
fossil fuels. And one that doesn't bust the budget.
  Sadly, this bill falls woefully short.
  Mr. Speaker, I rise in reluctant opposition to this package of bills 
the Republican leadership has brought to the floor this evening.
  This bill includes many provisions that are worthy of the House's 
support.
  For example, the bill extends the Research and Development tax credit 
and important energy efficiency tax credits. These tax provisions are 
important to American families and businesses and should be extended.
  The bill also prevents what would have amounted to a 5.1 percent cut 
in Medicare physician reimbursements. This cut would be devastating, 
hindering physicians' ability to treat their patients. And it would 
make it even harder for Medicare beneficiaries to have the best 
possible access to quality health care.
  I have long been vocal in my support for reforming the flawed 
physician fee structure so I am pleased that this provision will become 
law. But it is a pity that the Republican leadership has waited until 
the last minute to enact this provision.
  Mr. Speaker, I have faith that the incoming Democratic Majority will 
move quickly to address this and other Medicare payment problems, like 
the geographic practice cost index problem plaguing my district, in the 
110th Congress next year. I know that I will be working hard to see 
these issues addressed.
  We simply must revamp the Medicare physician payment structure to 
ensure our doctors are being paid appropriately and that our patients 
can be assured of readily available quality health care.
  But Mr. Speaker, I must vote against this package because it includes 
S. 3711, the so-called Gulf of Mexico Energy Security Act.
  There are several reasons that I oppose S. 3711.
  First, it's bad energy policy. Our first steps in crafting a new 
energy policy should be to reduce demand and develop new alternative 
and renewable energy sources. We missed that opportunity in last year's 
misguided energy bill and sadly, this bill continues that mistake.
  Second, this bill is fiscally irresponsible. According to estimates, 
the bill will drain $170 billion from the Federal treasury over the 
next 60 years. It creates a new entitlement immediately giving away 
huge amounts of revenue from offshore drilling, mostly to only four 
Gulf Coast States.
  This is a great deal for these four States and I certainly understand 
why they support it. What I don't understand is why my colleagues from 
the other 46 States would agree to it. The offshore waters of the gulf 
coast belong to all Americans, as do the Pacific and Atlantic Oceans, 
the Great Lakes and other public lands.
  Mr. Speaker, we have record deficits as far as the eye can see and it 
is simply irresponsible to add billions more in new debt through 
legislation like this.
  Finally, this bill will damage our environment. It will bring the 25-
year-old bipartisan moratorium against new drilling off America's 
coasts one step closer to an end. It threatens our coastal economies 
with the risk of pollution and oil spills.
  Mr. Speaker, in the new Democratically controlled Congress we can--
and should--craft a sensible new energy policy. One that helps 
Louisiana and other States rebuild wetlands and restore their coasts. 
One that makes America less dependent on dirty fossil fuels. And one 
that doesn't bust the budget.
  Sadly this bill falls woefully short.
  And that's why I urge my colleagues to support the Markey-Boehlert 
motion to recommit.
  This motion would prevent the Interior Department from awarding 
leases to companies that are currently drilling in American waters 
without paying royalties. We need to bring the oil companies back to 
the negotiating table to close the royalty relief loophole.
  And, Mr. Speaker, as one of the last acts of this Congress we need to 
pass a clean bill that extends these critical tax credits and fixes the 
flawed physician fee formula once and for all.
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I want to thank my friend from Massachusetts for 
providing the majority with the amendment.
  Frankly, I was rather baffled why my friend from New York would yield 
half their time to the gentleman from Massachusetts since he has time 
under his own amendment. Having now seen the amendment, I find it 
interesting that it is an 11-page amendment, a portion of a page is on 
research credits, a portion of a page is on the alternative minimum 
tax. The Outer Continental Shelf portion of the 11-page bill, which has 
been the sole focus of my friends on the other side of the aisle, is 
six lines. Not six pages, six lines.
  What in the world is in the rest of the 11-page bill: Eight pages 
address putting back into this, over the objections of the Democratic 
leader on the Senate side, the New York railroad bond provision. I now 
understand why Mr. Markey got his 15 minutes.
  Mr. Speaker, it is my pleasure to yield 2 minutes to the gentlewoman 
from Connecticut (Mrs. Johnson), the chairman of the Health 
Subcommittee.
  Mrs. JOHNSON of Connecticut. Mr. Speaker, I rise in support of this 
legislation because it adopts a number of extremely important tax 
provisions, expensing of brownfields remediation costs, mental health 
parity benefits, deduction of higher education expenses, the work 
opportunity tax credits, incentives for renewable and alternative 
sources of energy, and the R&D tax credit with its new forward-looking 
option; but it also helps to ensure that our senior citizens will be 
able to choose the physician of their choice by preventing the 
scheduled 5 percent cut in physician Medicare reimbursements.
  In addition, it extends the 508 hospital payments and requires a 
study of how to reform the wage index system, laying the foundation for 
needed reform in that area.
  The Medicare home demonstration project it adopts will reward small 
physician offices for managing patients with chronic or severe illness 
more holistically, both to reduce the cost of medical care and to 
improve the quality of the care those seniors receive.
  But while I support this bill, I believe the 1-year doctor payment 
policy it adopts is deeply flawed and urge my colleagues to develop a 
more thoughtful and fair approach to reflecting the quality of 
physician performance in our Medicare payment system.
  First, in any pay-for-performance system, clinical criteria for 
quality must emanate from the physician community. Bureaucrats must 
never be allowed to dictate medical practice.
  Second, any pay-for-performance system must not penalize doctors who 
care for difficult, noncomplying patients, or patients for whom 
criteria has not been established.
  Consequently, all doctors should receive some increase to recognize 
the increased cost of delivering care to our seniors, increased cost of 
malpractice insurance, health benefits for their employees and so on. 
And above that, a fair, balanced pay-for-performance system must be 
adopted.
  I urge support of the bill.

                              {time}  1415

  Mr. RANGEL. Mr. Speaker, I would like to yield 1\1/2\ minutes to the 
gentleman from Louisiana (Mr. Melancon).
  Mr. MELANCON. Mr. Speaker, I thank the gentleman from New York for 
yielding.
  I appreciate the fact that today is a historic day for Louisiana. 
After 50 years of producing the energy for this country that power the 
plants, that power the cars, that provide the heating oil and the 
natural gas, we finally are going to come to a point in Louisiana where 
we are going to get something in return for the efforts that we have 
put forth. And during those 50 years, our wetlands have been damaged. 
Our estuaries are eroding.
  The Nation, I hope, will understand after these storms, and it is 
regretful that we had to have these storms in order to get the 
attention, but the marshlands, the wetlands, the estuaries of South 
Louisiana, the State in its wisdom has made a constitutional amendment 
to dedicate the funds that come from the revenues, and this will be new 
revenues, this will not be money coming out of the budget of the 
country, and it will be dedicated to rebuilding America's wetlands. It 
is America's wetlands because it provides for America energy and 
seafood, approximately 30 percent of each to the men, women, and 
children of this country.
  I encourage everyone to please vote for this bill. Some have said it 
is too much money, but long ago the Louisiana delegation for decades 
has been

[[Page 23176]]

asking for help and have been like the tree falling in the woods, 
unheard. Now is the opportunity to not only do something for energy 
production for this country but to do something for America's wetlands, 
and I urge your support and vote.
  Mr. THOMAS. Mr. Speaker, will the gentleman yield on my time?
  Mr. MELANCON. Yes.
  Mr. THOMAS. Mr. Speaker, I thank the gentleman because I do 
appreciate the remarks that he just made. And we probably had not 
planned on highlighting it, but as the gentleman from Louisiana well 
knows, another portion of the changes that we are making in this 
package is to take what was known as the Katrina GO Zone, a benefit, 
and, after the time has passed, focus the money on those counties that 
still remain devastated by a high percentage of destruction. Rather 
than simply having money go where it may not be necessary, a portion of 
this bill focuses the money where it is absolutely necessary. And as 
the gentleman from Louisiana well knows, there are still major areas of 
his State and other States that can easily be defined as devastated.
  Mr. MELANCON. Thank you, sir.
  Mr. RANGEL. Mr. Speaker, I reserve the balance of my time.
  Mr. MARKEY. Mr. Speaker, I yield 1 minute to the gentlewoman from 
California (Ms. Waters).
  Ms. WATERS. Mr. Speaker, I thank the gentleman from Massachusetts for 
the time.
  The special interest Republican Congress is at it again. Republican 
leaders are packaging three different bills together in one in order to 
force Members of Congress to pass controversial legislation together 
with popular legislation. And once again they have brought this 
complicated legislation to the House floor without providing an 
opportunity for meaningful debate and without allowing Members to 
review the text of the bill in advance.
  Before the election they packaged tax credit extensions and an 
increase in the minimum wage together with an estate tax cut that 
benefits some of the richest people in the country. Now they are 
packaging tax credit extensions and an adjustment in Medicare payments 
to physicians together with a special interest giveaway to their 
friends in the oil industry. This special interest bill opens up 8 
million acres of Florida gulf coast waters to offshore oil drilling.
  The American people are sick and tired of these deceptive procedures. 
That is why we won the election.
  Perhaps my friends on the opposite side of the aisle just want to 
provide one more favor to the oil industry before they lose control of 
Congress next month.
  Mr. THOMAS. Mr. Speaker, it is my pleasure now to yield 2 minutes to 
a valued member of the Ways and Means Committee, the gentleman from 
Texas (Mr. Brady).
  Mr. BRADY of Texas. First let me thank you, Chairman Thomas, for your 
years of hard work to provide real tax relief for families.
  Mr. Speaker, I know in Texas, in our region, our community, your 
leadership on restoring the State and local sales tax deduction, that 
saves our Texas families $1 billion a year that we do not have to send 
to Washington, that can stay in their pocketbooks, stay in our 
communities, creates jobs in our State. And I know that on behalf of 
seven States to whom that deduction is so important, you have saved us 
from a $5.5 billion tax increase, and we are grateful.
  In Washington we spend too much time debating what bills mean to each 
other and not enough about what bills mean to real families. Being able 
to deduct that sales tax is a real help for families, especially those 
who are starting out in life. Sales taxes add up so quickly.
  This bill helps families struggling to afford tuition for their 
college students. It helps teachers who have to go into their own 
pocketbook to pay for classroom supplies each year. I do not think they 
ought to ever have to do that, but when they do, at least let them 
write those expenses off.
  It helps American companies who are trying to compete against the 
rest of world afford the type of research it takes to keep jobs here in 
America. This allows people who are trying to get their first job off 
of welfare a chance to get some job openings they might not otherwise 
help. It allows seniors, like my mom, to see a doctor whom she knows 
and a doctor who knows her, because it does an important fix on the 
Medicare.
  And for States like Texas, with this new bill, we will get some 
revenues from leases off our shores that will help us rebuild our 
coastal wetlands and preserve our shores.
  This is a classic piece of legislation that helps so many people in 
America.
  And while you can talk a good game about tax relief for middle-class 
families, it is another thing to actually vote for it. I am proud to 
vote for this bill. This is going to help a lot of families.
  I encourage your support.
  Mr. RANGEL. Mr. Speaker, I reserve the balance of my time.
  Mr. MARKEY. Mr. Speaker, I reserve the balance of my time.
  Mr. THOMAS. Mr. Speaker, at this time I will place a letter in the 
Record which is a clarification sought by the gentleman from Georgia 
(Mr. Price) to me.

                                    Congress of the United States,
                                 Washington, DC, December 8, 2006.
     Representative J. Dennis Hastert,
     Speaker, House of Representatives,
     Washington, DC.
       Dear Mr. Speaker: We would like to clarify the intent of 
     certain provisions in Tax Relief and Health Care Act of 2006, 
     H.R. 6111.
       The first clarification addresses Section 1848(k)(2) of the 
     Social Security Act as proposed to be added by Section 101(b) 
     of H.R. 6111. The language presents the issue of `consensus-
     based quality measures' and any `consensus organization'. The 
     intent of this language is to ensure that physician groups 
     (such as the Physician Consortium for Performance 
     Improvement) are actively involved in defining the quality 
     measures and determining the quality data to be reported 
     under the program.
       The second clarification is in regards to the bonus 
     payments for physicians who volunteer to report on quality 
     measures starting in July of 2007 as proposed in Section 
     101(c) of H.R. 6111. The intent of the bill is to ensure that 
     the 1.5 percent bonus money to be paid to physicians who 
     participate in the voluntary reporting program are paid on 
     all Medicare claims submitted [during the reporting period] 
     by those participating providers, with the recognition of 
     monetary caps.
       We appreciate your leadership and dedication to this piece 
     of legislation and to the House of Representatives.
           Yours Truly,
                                                      Bill Thomas,
                                               Member of Congress.
                                                        Tom Price,
                                               Member of Congress.

  Mr. Speaker, it is now my pleasure to yield 2\1/2\ minutes to a 
member of the committee who will no longer be a member of the committee 
but who had, in the time that she was with us, made enormous 
contributions, the gentlewoman from Pennsylvania (Ms. Hart).
  Ms. HART. Mr. Speaker, I thank the chairman not only for yielding but 
especially for his 6 years of incredible service as chairman and his 
other years of service on the Ways and Means Committee. I have not in 
my 16 years as a legislator seen anybody who is so capable of 
developing great policy which certainly has produced an incredible 
return for this country.
  Following with that, this legislation carries a number of important 
tax provisions and extensions of some of those great policies that have 
really helped the economy to grow in this country. With today's 
announcement of an additional 132,000 new jobs created this month, this 
adds to the 5.7 million jobs that our pro-growth tax policies have 
created since the year 2003.
  These provisions are also important to the economy in my home area, 
especially in western Pennsylvania, where we have seen our unemployment 
rate drop to about 5 percent over the last 3 years from upwards of 7-
plus percent.
  Part of what is continuing to help development and job growth in my 
area are some of the incentives to redevelop brownfields; brownfields, 
those abandoned industrial sites that are very difficult to find the 
capital to clean up.

[[Page 23177]]

We are extending the incentive to clean up brownfields. This is so 
hugely important to an area like mine where there are so many 
industrial sites that need to be redeveloped but also the expansion of 
that credit to areas that have some petroleum contamination, which will 
also help us clean up the smaller sites such as old abandoned gas 
stations. Extremely important to the communities I represent.
  Also the green building incentives. These tax credits for the 
construction repairs for energy-efficient homes and commercial 
buildings are extremely important. My home area is home to development 
of such products. My area is home to a significant amount of design of 
green buildings and also development of such buildings. We have had a 
great spurt in that growth and are headquarters to the Green Building 
Alliance. That is certainly going to help our region.
  But, finally, the issue of health care and health coverage is one 
that we have great strides in the last few years to improve for 
Americans. The other side can say what they want about HSAs, and I hear 
a lot of silliness in the characterization of HSAs from the other side 
of the aisle. There are more than 3.2 million enrollees in these health 
savings accounts, an alternative health coverage in this country. More 
than 30 percent of those individuals were previously uninsured. And I 
am going to restate that. More than 30 percent of people who put HSAs 
were previously uninsured. This alternative health coverage has 
provided so many opportunities for families who find it difficult to 
afford traditional health coverage. The changes that we include in this 
legislation will provide even more opportunity for more families to 
have very good flexible health coverage.
  I urge my colleagues to support these changes. They are vitally 
important.
  Mr. RANGEL. Mr. Speaker, I reserve the balance of my time.
  Mr. MARKEY. Mr. Speaker, I reserve the balance of my time.
  Mr. THOMAS. Mr. Speaker, at this time the Chair would recognize the 
gentlewoman from Florida (Ms. Ginny Brown-Waite) for 2 minutes.
  Ms. GINNY BROWN-WAITE of Florida. Mr. Speaker, I certainly want to 
thank Chairman Thomas. He has been a great chairman and has worked with 
everybody on both sides of the aisle and is sorely going to be missed. 
I know he doesn't like people to say nice things about him because he 
does not want to be known as a nice guy, but he truly is.
  Florida, like other States, does not have an income tax, and only 
recently have the residents again been able to deduct the sales taxes 
from their Federal income tax. That is called parity. It is parity with 
other States. This deduction was about to expire at the end of 2005.
  In recent months I and many others from States that only have a sales 
tax have heard from many constituents who are concerned about whether 
or not they will be able to claim this deduction as they begin their 
taxes, due April 15. Thankfully this legislation before us today will 
extend this critical provision.
  I know throughout the last several months I have probably been the 
biggest nag to Mr. Thomas about this issue. I know all of my colleagues 
from States that only have sales tax also have been making their views 
known that this does need to be continued.
  I certainly want to stress that it is common sense, and, again, it is 
just parity. And we do need this very much-needed tax benefit and it is 
good that we are able to deliver it just before the holidays.
  I want to thank the chairman.
  Mr. MARKEY. Mr. Speaker, I yield 2 minutes to the gentleman from Ohio 
(Mr. Kucinich).
  Mr. KUCINICH. Mr. Speaker, our Nation is faced with an unprecedented 
challenge in global warming. Saving the planet will undoubtedly require 
us to drastically curtail our use of fossil fuels. The CDC recently 
said, ``Climate change is perhaps the largest looming public health 
challenge we face.''
  There are solutions available now, like conservation; efficiency; 
development of alternative energy, wind, solar, geothermal, green 
hydrogen. Congress is going to need to facilitate the transition to 
clean energy in the future.
  Instead, the response of this Congress is to open up 6 million acres 
of protected area in the Gulf of Mexico to drilling for oil and gas. In 
other words, with this bill the response is more of the same of 
yesterday's destructive energy portfolio.
  Wake up, Congress. Step into the 21st century of sustainable energy. 
Save our natural resources. Protect our environment. Save our planet. 
Or we are going to have more toxic air pollution, more fouling of the 
waters of the United States on which entire industries like fishing and 
tourism depend; and more global warming, more monopoly control of our 
energy by oil companies, more price gouging by oil companies, more 
record profits to the oil companies. In fact, this bill deprives the 
Federal treasury of $170 billion, further deepening our deficit. The 
government is subsidizing the oil companies, who are gouging the 
public, taking huge profits, while exploiting natural resources which 
belong to the people.

                              {time}  1430

  Then the oil companies refuse to pay to the government the royalties, 
which is why the Markey amendment is so important. You have to look at 
what this bill is going to do in permitting the opening up of six 
million acres for drilling of oil and gas. It, in effect, creates a 
transfer of wealth from the people of the United States to the oil 
companies, a transfer of wealth in terms of destruction of the 
environment. We are subsidizing the oil company's destruction of the 
environment. A transfer of wealth in terms of diminishing the health of 
the people of the United States. With all the environmental pollution 
that causes people's help to be degraded, well, guess what? That is a 
subsidy that they pay to the oil companies, and the oil companies make 
a profit on that.
  We are ruining our planet. We are ruining our Nation because of 
corporate control of our energy resources. It is time to stop this 
bill, which is called the Gulf of Mexico Energy Security Act, folded 
into a larger bill. We need to stand up for clean energy. We need to 
stand up for the future of America and stand up for our planet.
  Mr. THOMAS. Mr. Speaker, the Chair appreciates the vigor of the 
gentleman from Ohio on 6 lines out of an 11-page amendment.
  The Chair now recognizes the gentleman from Pennsylvania (Mr. 
Peterson) for 1\1/2\ minutes.
  Mr. PETERSON of Pennsylvania. Mr. Speaker, I thank the gentleman for 
his leadership and knowledge that he has brought to this committee. It 
will be missed.
  The most important part of this bill was just discussed, the energy 
portion of this bill. This starts, for the first time, opening up some 
energy for America.
  It is interesting, Mr. Markey has talked about $170 billion thievery 
of our resources; 12.5 percent, or $55 million will go into the land 
and water conservation fund, if we produce it; and $225 billion will go 
into the treasury, if we produce the energy.
  America, for the last 5 years, has had the highest energy prices in 
the world. And our homeowners are paying more to heat their homes than 
Canada, South America, Europe.
  Our small businesses are paying the highest energy prices in the 
world, and our corporations are leaving this country. Petrochemical is 
moving. The best jobs we have left. Why? They use huge amounts of 
energy.
  Fertilizer. Fifty percent of the fertilizer industry has left in the 
last 2 years, and our farmers will be buying Russian fertilizer to grow 
corn to make ethanol. Does that make sense?
  Energy is the linchpin of the future of America's economy and the 
working people of this country having jobs. And the reason oil 
companies make excessive profits, when you shorten the supply of 
energy, the price goes up. And Congress is the reason we don't have 
adequate energy in this country. And many that we have heard today are 
the main speakers. And when you shorten

[[Page 23178]]

the supply, the price goes up. And the oil companies who already own 
the inventories all over the world, the cheapest place to produce 
energy is in other countries, but when you produce it here, you create 
wealth in America for Americans and make it affordable for businesses 
to stay here and grow.
  Mr. RANGEL. Mr. Speaker, I reserve the balance of my time.
  Mr. MARKEY. Mr. Speaker, I only have one speaker remaining.
  Mr. THOMAS. Mr. Speaker, would you indicate the time remaining for 
each manager?
  The SPEAKER pro tempore (Mr. Forbes). The gentleman from California 
has 3\1/2\ minutes. The gentleman from New York has 3 minutes, and the 
gentleman from Massachusetts has 2 minutes.
  Mr. THOMAS. And would the Speaker indicate who has the right to 
close?
  The SPEAKER pro tempore. The gentleman from California has the right 
to close.
  Mr. THOMAS. Mr. Speaker, the chairman reserves the time.
  Mr. RANGEL. I would just ask the chairman whether he is going to be 
the last speaker, then I can just use whatever time I have.
  Mr. THOMAS. I would tell the gentleman that I have the chairman of 
the Energy and Commerce Committee and the chairman of the Ways and 
Means Committee.
  Mr. RANGEL. Well, I reserve. I would just like to be able to close on 
my side.
  Mr. THOMAS. Is the gentleman indicating that the gentleman from New 
York is the last speaker under his time control?
  Mr. RANGEL. Yes.
  Mr. THOMAS. I thank the gentleman.
  Does the gentleman from Massachusetts indicate that he is the last 
speaker under his time? I thank the gentleman.
  The Chair now recognizes the gentleman from Texas, the chairman of 
the Energy and Commerce Committee, Mr. Barton, for 2 minutes.
  Mr. BARTON of Texas. Mr. Speaker, I thank the distinguished chairman 
of the Ways and Means Committee, and I thank my distinguished friends 
on the other side of the aisle for their strong leadership on these 
issues in this debate.
  Mr. Speaker, I rise in strong support of H.R. 6111, the Tax Relief 
and Health Care Act of 2006. I want to especially thank full committee 
Chairman Thomas, Subcommittee Chairman Nancy Johnson of the Ways and 
Means Subcommittee, and Subcommittee Chairman Nathan Deal of my Health 
Committee for their leadership on this legislation. It has been an 
honor to work with all of these folks over the years on the issues, and 
I am glad that we have some resolution that will help in the years to 
come.
  The legislation before us would ensure continued beneficiary access 
to quality health issues. This legislation provides significant relief 
for payment cuts that would have gone into effect for physician 
services for 2007, and does promote appropriate quality care.
  The Energy and Commerce Committee has held a number of hearings to 
examine how we pay physicians, what we need to think about when we talk 
about how to pay physicians tomorrow, and how we protect the taxpayer 
from being billed for unnecessary services. We have heard about flaws 
in the current physician payment system, and I think it needs to be 
structurally reformed. Unfortunately, the bill before us does not. We 
do not have the depth and scope to do that. But we at least hold our 
physicians harmless in terms of expected cuts that they would have 
taken otherwise. Hopefully, in the next Congress we can work a 
bipartisan basis to come up with a permanent solution to some of these 
physician payment issues.
  It is important to fix the problems with physician payment once and 
for all. The legislation before us today does provide a stabilizing 
period for physicians. It fills the hole in payments for next year, 
provides a bonus for those physicians that would report data on quality 
measures. That is an important first step, in my opinion. It also helps 
ensure beneficiary access to quality health care.
  I rise today in support of this bill. I hope that the House will pass 
it and send it to the Senate and that the Senate will also pass it.
  Again, I want to thank Chairman Thomas for his leadership. It will be 
a different Congress in the next Congress without him here in person, 
but he will always be with us in spirit, and I really, really support 
the many things that he has done to improve America during his tenure 
as chairman of the Ways and Means Committee.
  Mr. BARTON of Texas. Mr. Speaker, I rise today in strong support of 
H.R. 6111, the Tax Relief and Health Care Act of 2006. I want to thank 
Chairmen Thomas, Johnson, and Deal for their leadership on this 
legislation. I want to specifically thank Chairmen Thomas and Johnson 
for their leadership over the years on health care issues, particularly 
the issue of physician payment. It has been an honor to work with you 
on these issues.
  This legislation will help ensure continued beneficiary access to 
quality health care. This legislation provides significant relief for 
payment cuts for physician services for 2007 and promotes appropriate, 
quality care. This year the Energy and Commerce Committee held a number 
of hearings to closely examine how we pay physicians, what we need to 
think about when we talk about how to pay physicians tomorrow, and how 
we protect the taxpayer from being billed for unnecessary services. We 
heard about the flaws in the current physician payment system that may 
contribute to overuse of physician services. We heard about the promise 
of a system that more fairly pays physicians for the necessary services 
they provide--those that reflect the best quality and efficient care 
that a physician can provide for any particular patient.
  It is important to fix the problems with physician payment once and 
for all. I believe the legislation today provides an important 
stabilizing period for physicians. It fills the hole in payments for 
next year and provides a bonus for those physicians that report data on 
quality measures. It helps ensure beneficiary access to quality health 
care. It helps physicians work with us to develop a better payment 
system, one that provides the right incentives for care rather than the 
wrong incentives for overuse, and one that recognizes that there are 
savings accrued when chronic care is managed effectively.
  I rise today in support of this bill. In addition to providing help 
in stabilizing physician payment, this bill extends many important 
payment provisions that affect access to health care, particularly in 
rural areas, such as therapy and dialysis services. I urge my 
colleagues to vote for this bill.
  Mr. RANGEL. Mr. Speaker, as we close this debate, I agree it will be 
a different Congress, and I will sincerely miss the spirited debate 
from the distinguished gentleman from California who has served the 
committee and served the Congress and served this country so well. And 
I am just bothered that he is disturbed about the lateness of the 
amendment which comes to the floor, but, of course, you cannot amend 
anything until you get it, and this just came to the floor this 
morning.
  Many of the issues and extenders in this bill are long overdue, and I 
certainly encourage people to support the bill. But the bill would be 
strengthened if indeed it excluded the provision that has been debated 
and will come up in the amendment as relates to the gulf opportunity 
zone property.
  In addition to that, most of us would agree that if there is one 
provision in the Tax Code, a burden that Republicans, conservatives, 
Democrats, Republicans, can agree to that should be removed is the 
alternative minimum tax. Nobody ever intended for these 23 million 
people to be shoved into a tax bracket that they didn't deserve. And 
since it is not included in the extenders, for reasons which I don't 
know, it would seem to me that people would have an opportunity, in 
this amendment offered by the distinguished gentleman from 
Massachusetts, to do that and, at the same time, strip from the 
provision the offending provisions as relates to the Gulf States.
  And lastly, those of you that were kind enough to support the city 
and State of New York during the trying 9/11 experience would know that 
at one time we had passed a provision that would allow us, under the 
New York liberty bond provisions, to provide a tax credit for the 
transportation infrastructure. I want to thank the chairman for trying 
so hard to see that that

[[Page 23179]]

provision would be included in this bill. But, because of reasons and 
problems that we have had on the other side, that provision is omitted. 
However, it will be included in the amendment, and I am convinced that 
the base bill, coupled with the amendment, would be a better piece of 
legislation.
  I know we have other issues on the floor, and this is not the time to 
say farewell to the chairman, but as it relates to at least this part 
of our debate, Mr. Speaker, I will yield back the balance of my time.
  Mr. MARKEY. Mr. Speaker, I yield myself the balance of my time.
  The amendment which we are about to consider does not prohibit 
drilling in any of this new land. The amendment we are about to debate 
does not prohibit drilling in any of the new land which is authorized 
to be drilled in. What the amendment says is this: is that the oil and 
gas companies that received leases over the last 10 years where they 
pay no royalties whatsoever, and that has been determined, as a result, 
deprived the American taxpayer of between 20 and $60 billion worth of 
royalties, which they are entitled to as taxpayers, will be 
renegotiated by the oil companies that want to drill in this new land 
in the Gulf of Mexico. That is all it does. So anyone who is listening 
to this, this amendment will not prohibit drilling here. All it says is 
that where these massive, tens of billions of dollars of windfall 
profits are falling into the pockets of oil and gas companies under 
these oil leases, that these oil and gas companies do not have the 
privilege of coming into these new leases. However, any other oil 
company, any other gas company, they can go right into this Gulf of 
Mexico area and drill.
  So for Mr. Peterson, or anyone else, it has nothing to do with it. 
The question for you, Mr. Peterson, the question for the other Members 
is: Do you want to recollect these other royalties? Or if the price of 
oil goes to 30, 40, 50, 60, 70, $80 a barrel, do you want the oil and 
gas industry to pay any royalties at all? Because right now, they 
don't. So if you want all the revenues to go to them, nothing to go to 
the taxpayer, then, fine. Vote against the Markey amendment. But if you 
want to open up the lands in the gulf, let the oil industry come in, 
but to make sure that they pay on their old leases a fair share of the 
dues to live in this country, because it is a massive part of the 
revenues that we use to fund our defense, then you vote ``yes'' on the 
Markey amendment.
  Mr. THOMAS. Mr. Speaker, I want to refocus our Members. We are not on 
the Markey amendment. The Markey amendment will be presented following 
the conclusion of the discussion on the underlying bill.
  Mr. Speaker, the Nonpartisan Joint Committee on Taxation has made 
available to the public a technical explanation of the bill. This 
technical explanation expresses the committee's understanding and 
legislative intent behind this important legislation.
  Mr. THOMAS. Mr. Speaker, the nonpartisan Joint Committee on Taxation 
has made available to the public a technical explanation of the bill. 
This technical explanation expresses the Committee's understanding and 
legislative intent behind this important legislation.
  Mr. Speaker, in keeping with the spirit of H. Res. 1000, which the 
House passed this year to reform the legislative process, I note that 
the Joint Committee on Taxation has identified 2 provisions of H.R. 
6408, introduced yesterday, as ``earmarks'' under the terms of that 
resolution. These provisions also appear in the amendment to H.R. 6111 
which the House will consider today. A copy of the Joint Committee on 
Taxation's opinion letter is available for Members to review if they 
wish.
  The identified provisions are Title I's Section 414. Modification of 
special arbitrage rule for certain funds made permanent, and Section 
211 of Division C, Certain related persons and successors in interest 
relieved of liability if premiums prepaid. Section 414 was requested by 
Congressman Kevin Brady (R-TX). Section 211 is part of a comprehensive 
mining reform proposal requested by Senators Rick Santorum (R-PA) and 
Max Baucus (D-MT).
  H.R. 6408's Division B--Medicare and Other Health Provisions, 
contains an earmark. Section 111, Clarification of hospice satellite 
designation, was requested by Senator Reid (D-NV). The amendment also 
contains this provision.
  In addition, Division C, Title I, Gulf of Mexico Energy Security 
requested by Congressman Bobby Jindal (R-LA) and Title III, White Pine 
County Conservation, Recreation and Development requested by Senator 
Harry Reid (D-NV) have been identified as containing probable earmarks.

                                                 December 8, 2006.
     Hon. William M. Thomas,
     Chairman, Committee on Ways and Means, 1102 Longworth House 
         Office Building, Washington, DC.
       Dear Chairman Thomas: House Resolution 1000 provides that 
     the staff of the Joint Committee on Taxation identify any tax 
     earmark in a bill carrying a tax measure reported by the Ways 
     and Means Committee or in a conference report to accompany a 
     bill carrying a tax measure. You requested that we review the 
     language of H.R. 6408, the ``Tax Relief and Health Care Act 
     of 2006'' as introduced in the House of Representatives on 
     December 7, 2006, and the House Amendment to the Senate 
     amendment to H.R. 6111 (``An Act to amend the Internal 
     Revenue Code of 1986 to provide that the Tax Court may review 
     claims for equitable innocent spouse relief and to suspend 
     the running on the period of limitations while such claims 
     are pending'') scheduled for consideration by the House on 
     December 8, 2006, to identify any provisions which would 
     satisfy the tax earmark standard of House Resolution 1000, if 
     applicable.
       In response to your request, the staff of the Joint 
     Committee on Taxation has identified two provisions in each 
     piece of legislation that would qualify as tax earmarks under 
     House Resolution 1000, were they included in a bill reported 
     by the Ways and Means Committee or contained in a conference 
     report. The two provisions, which are the same in both bills, 
     are: (1) the provision to make permanent the modification of 
     special arbitrage rules for the Texas Permanent University 
     Fund (sec. 414 of Division A of each bill); and (2) the 
     provision of the Surface Mining Control and Reclamation Act 
     Amendments of 2006 allowing release of joint and several 
     liability in the case of prepayment of liabilities to the 
     Combined Benefit Fund, section 9711 individual employer plan, 
     or 1992 UMWA benefit plan and modifying of the definition of 
     successor in interest (sec. 211 of Division C of each bill).
           Sincerely,
                                               Thomas A. Barthold,
     Acting Chief of Staff.
                                  ____

                                                 December 8, 2006.
     Hon. Bill Thomas,
     Chairman, Committee on Ways and Means, House of 
         Representatives, 1102 Longworth House Office Building, 
         Washington, DC.
       Dear Chairman Thomas: In compliance with H. Res. 1000 as 
     passed the House of Representatives on September 14, 2006, 
     the Committee finds that the amendment to H.R. 6111 contains 
     no earmarks within the jurisdiction of the Committee on 
     Energy and Commerce.
           Sincerely,
                                                       Joe Barton,
     Chairman.
                                  ____

                                                 December 8, 2006.
     Hon. J. Dennis Hastert,
     Speaker, House of Representatives, H 232 Capitol, Washington, 
         DC.
       Dear Mr. Speaker: I have just reviewed the proposed 
     amendment to H.R. 6111, to amend the Internal Revenue Code of 
     1986 to provide that the Tax Court may review claims for 
     equitable innocent spouse relief and to suspend the running 
     on the period of limitations while such claims are pending. 
     Division C unexpectedly contains several provisions within 
     the jurisdiction of the Committee on Resources. I have been 
     asked to review these extensive provisions (126 pages) under 
     severe time limits to determine whether they contain any 
     earmarks as defined under House Resolution 1000.
       Without the opportunity to question the authors of these 
     provisions, it is difficult to determine their effect on the 
     public lands and resources of the United States. Especially 
     troubling is the reference to maps in the context of land 
     sales, exchanges and special use designations. Neither myself 
     or any of my staff have seen these maps or reviewed the 
     conditions of these transactions. Most importantly, none of 
     these provisions have been reviewed by the Congressional 
     Budget Office to determine the budgetary effect of their 
     implementation. With these caveats, here is my assessment 
     whether these provisions constitute earmarks under the House 
     Resolution 1000.


                      Division C--Other Provisions

       Title III--White Pine County Conservation, Recreation and 
     Development. Many provisions of this Title appear to provide 
     authority for a grant, contract or other expenditure with or 
     to a non-federal entity, most specifically, White Pine 
     County, Nevada; Washoe County, Nevada; the State of Nevada; 
     the Ely Shoshone Tribe; the Eastern Nevada Landscape 
     Coalition; the Great Basin Institute (whatever these are).
       Because of the hundreds of thousands of acres of public 
     lands involved in the land sales, wilderness designation and 
     other transactions authorized by this title, and the lack of 
     maps or other information, I cannot determine with 
     specificity the fiscal impact

[[Page 23180]]

     of Title III. As a consequence, we have no way of determining 
     whether this constitutes sound land management policy which 
     we would support. In addition, because I was not involved in 
     the writing of this provision, I do not know who the 
     requestor was but this language has not been reported by the 
     Committee on Energy and Natural Resources, the Committee on 
     Resources or considered by the Senate or House.
       I am extremely disappointed that the committee of 
     jurisdiction was not consulted regarding the inclusion of 
     these provisions. Their ill-advised inclusion undermines 
     valuable natural resources, cheats taxpayers out of their 
     investment in our public lands and benefits special interest 
     groups on a completely unprecedented scale.
           Sincerely,
                                                 Richard W. Pombo,
                                                         Chairman.


                             GENERAL LEAVE

  Mr. THOMAS. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days in which to revise and extend their remarks and 
to include extraneous material on the subject of the bill under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. THOMAS. Mr. Speaker, I want to thank my friend from New York for 
the kind comments that he made. I would like to reference his statement 
about the other side. For those of you who may not have understood what 
he meant, the other side is not the other side of Jordan. It is the 
other side of the Capitol. Oftentimes in dealing with the other side of 
the Capitol, it feels like you have crossed over the other side of 
Jordan in trying to make sure various things happen.
  There are a number of items, and I guess at some point, your entire 
presentation oftentimes in dealing with Congress was woulda, coulda, 
shoulda. And that is fine to debate woulda, coulda, shoulda, which is 
basically process.
  We have reached a point where, through great difficulty, the House 
and Senate have agreed on a number of important measures to extend 
benefits and to at least keep open the opportunity to do additional 
items.

                              {time}  1445

  We happened to reach agreement at the very end of the session. The 
point I want to underscore is, we have reached agreement. The question 
will be on whether we decide to support that agreement or not support 
the agreement. I do appreciate all the time consumed in complaining 
about how we got there.
  I have counseled my friends on this side that when they become the 
minority, I will provide them with all the yellow pages and the copies 
of the other side while they have been in the minority about the 
``woulda coulda shoulda.'' Right now, it is about substance, it is 
about doing something, and we will have the vote on this measure 
following the debate on the Markey amendment.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Forbes). All time for debate has 
expired.
  Pursuant to House Resolution 1099, the previous question is ordered.


                    Amendment Offered by Mr. Markey

  Mr. MARKEY. Mr. Speaker, I offer an amendment.
  The Clerk read as follows:

       Amendment offered by Mr. Markey:
       Amend the House amendment by striking section 123 of title 
     I of division A and inserting the following:

     SEC. 123. SPECIAL RULE FOR ELECTIONS UNDER EXPIRED 
                   PROVISIONS.

       (a) Research Credit Elections.--In the case of any taxable 
     year ending after December 31, 2005, and before the date of 
     the enactment of this Act, any election under section 
     41(c)(4) or section 280C(c)(3)(C) of the Internal Revenue 
     Code of 1986 shall be treated as having been timely made for 
     such taxable year if such election is made not later than the 
     later of April 15, 2007, or such time as the Secretary of the 
     Treasury, or his designee, may specify. Such election shall 
     be made in the manner prescribed by such Secretary or 
     designee.
       (b) Other Elections.--Except as otherwise provided by such 
     Secretary or designee, a rule similar to the rule of 
     subsection (a) shall apply with respect to elections under 
     any other expired provision of the Internal Revenue Code of 
     1986 the applicability of which is extended by reason of the 
     amendments made by this title.

     SEC. 124. EXTEND ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNT FOR 
                   2007.

       (a) In General.--Subparagraphs (A) and (B) of section 
     55(d)(1) (relating to exemption amount for taxpayers other 
     than corporations) are each amended by inserting ``or 2007'' 
     after ``2006''.
       (b) Effective Date.--The amendments made by this section 
     take effect on October 1, 2008, but once in effect shall 
     apply to taxable years beginning after December 31, 2006.

     SEC. 125. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.

       (a) In General.--Part I of subchapter Y of chapter 1 is 
     amended by redesignating section 1400L as 1400K and by adding 
     at the end the following new section:

     ``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.

       ``(a) In General.--In the case of a New York Liberty Zone 
     governmental unit, there shall be allowed as a credit against 
     any taxes imposed for any payroll period by section 3402 for 
     which such governmental unit is liable under section 3403 an 
     amount equal to so much of the portion of the qualifying 
     project expenditure amount allocated under subsection (b)(3) 
     to such governmental unit for the calendar year as is 
     allocated by such governmental unit to such period under 
     subsection (b)(4).
       ``(b) Qualifying Project Expenditure Amount.--For purposes 
     of this section--
       ``(1) In general.--The term `qualifying project expenditure 
     amount' means, with respect to any calendar year, the sum 
     of--
       ``(A) the total expenditures paid or incurred during such 
     calendar year by all New York Liberty Zone governmental units 
     and the Port Authority of New York and New Jersey for any 
     portion of qualifying projects located wholly within the City 
     of New York, New York, and
       ``(B) any such expenditures--
       ``(i) paid or incurred in any preceding calendar year which 
     begins after the date of enactment of this section, and
       ``(ii) not previously allocated under paragraph (3).
       ``(2) Qualifying project.--The term `qualifying project' 
     means any transportation infrastructure project, including 
     highways, mass transit systems, railroads, airports, ports, 
     and waterways, in or connecting with the New York Liberty 
     Zone (as defined in section 1400K(h)), which is designated as 
     a qualifying project under this section jointly by the 
     Governor of the State of New York and the Mayor of the City 
     of New York, New York.
       ``(3) General allocation.--
       ``(A) In general.--The Governor of the State of New York 
     and the Mayor of the City of New York, New York, shall 
     jointly allocate to each New York Liberty Zone governmental 
     unit the portion of the qualifying project expenditure amount 
     which may be taken into account by such governmental unit 
     under subsection (a) for any calendar year in the credit 
     period.
       ``(B) Aggregate limit.--The aggregate amount which may be 
     allocated under subparagraph (A) for all calendar years in 
     the credit period shall not exceed $1,750,000,000.
       ``(C) Annual limit.--
       ``(i) In general.--The aggregate amount which may be 
     allocated under subparagraph (A) for any calendar year in the 
     credit period shall not exceed the sum of--

       ``(I) the applicable limit, plus
       ``(II) the aggregate amount authorized to be allocated 
     under this paragraph for all preceding calendar years in the 
     credit period which was not so allocated.

       ``(ii) Applicable limit.--For purposes of clause (i), the 
     applicable limit for any calendar year is--

       ``(I) in the case of calendar years 2007 through 2016, 
     $100,000,000,
       ``(II) in the case of calendar year 2017 or 2018, 
     $200,000,000,
       ``(III) in the case of calendar year 2019, $150,000,000,
       ``(IV) in the case of calendar year 2020 or 2021, 
     $100,000,000, and
       ``(V) in the case of any calendar year after 2021, zero.

       ``(D) Unallocated amounts at end of credit period.--If, as 
     of the close of the credit period, the amount under 
     subparagraph (B) exceeds the aggregate amount allocated under 
     subparagraph (A) for all calendar years in the credit period, 
     the Governor of the State of New York and the Mayor of the 
     City of New York, New York, may jointly allocate to New York 
     Liberty Zone governmental units for any calendar year in the 
     5-year period following the credit period an amount equal 
     to--
       ``(i) the lesser of--

       ``(I) such excess, or
       ``(II) the qualifying project expenditure amount for such 
     calendar year, reduced by

       ``(ii) the aggregate amount allocated under this 
     subparagraph for all preceding calendar years.
       ``(4) Allocation to payroll periods.--Each New York Liberty 
     Zone governmental unit which has been allocated a portion of 
     the qualifying project expenditure amount under paragraph (3) 
     for a calendar year may allocate such portion to payroll 
     periods beginning in such calendar year as such governmental 
     unit determines appropriate.
       ``(c) Carryover of Unused Allocations.--

[[Page 23181]]

       ``(1) In general.--Except as provided in paragraph (2), if 
     the amount allocated under subsection (b)(3) to a New York 
     Liberty Zone governmental unit for any calendar year exceeds 
     the aggregate taxes imposed by section 3402 for which such 
     governmental unit is liable under section 3403 for periods 
     beginning in such year, such excess shall be carried to the 
     succeeding calendar year and added to the allocation of such 
     governmental unit for such succeeding calendar year. No 
     amount may be carried under the preceding sentence to a 
     calendar year after 2026.
       ``(2) Reallocation.--If a New York Liberty Zone 
     governmental unit does not use an amount allocated to it 
     under subsection (b)(3) within the time prescribed by the 
     Governor of the State of New York and the Mayor of the City 
     of New York, New York, then such amount shall after such time 
     be treated for purposes of subsection (b)(3) in the same 
     manner as if it had never been allocated.
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Credit period.--The term `credit period' means the 
     15-year period beginning on January 1, 2007.
       ``(2) New york liberty zone governmental unit.--The term 
     `New York Liberty Zone governmental unit' means--
       ``(A) the State of New York,
       ``(B) the City of New York, New York, and
       ``(C) any agency or instrumentality of such State or City.
       ``(3) Treatment of funds.--Any expenditure for a qualifying 
     project taken into account for purposes of the credit under 
     this section shall be considered State and local funds for 
     the purpose of any Federal program.
       ``(4) Treatment of credit amounts for purposes of 
     withholding taxes.--For purposes of this title, a New York 
     Liberty Zone governmental unit shall be treated as having 
     paid to the Secretary, on the day on which wages are paid to 
     employees, an amount equal to the amount of the credit 
     allowed to such entity under subsection (a) with respect to 
     such wages, but only if such governmental unit deducts and 
     withholds wages for such payroll period under section 3401 
     (relating to wage withholding).
       ``(e) Reporting.--The Governor of the State of New York and 
     the Mayor of the City of New York, New York, shall jointly 
     submit to the Secretary an annual report--
       ``(1) which certifies--
       ``(A) the qualifying project expenditure amount for the 
     calendar year, and
       ``(B) the amount allocated to each New York Liberty Zone 
     governmental unit under subsection (b)(3) for the calendar 
     year, and
       ``(2) includes such other information as the Secretary may 
     require to carry out this section.
       ``(f) Guidance.--The Secretary may prescribe such guidance 
     as may be necessary or appropriate to ensure compliance with 
     the purposes of this section.
       ``(g) Termination.--No credit shall be allowed under 
     subsection (a) for any calender year after 2026.''.
       (b) Termination of Certain New York Liberty Zone 
     Benefits.--
       (1) Special allowance and expensing.--Section 
     1400K(b)(2)(A)(v), as redesignated by subsection (a), is 
     amended by striking ``the termination date'' and inserting 
     ``the date of the enactment of the Extension of Tax Relief 
     Act of 2006 or the termination date if pursuant to a binding 
     contract in effect on such enactment date''.
       (2) Leasehold.--Section 1400K(c)(2)(B), as so redesignated, 
     is amended by striking ``before January 1, 2007'' and 
     inserting ``on or before the date of the enactment of the 
     Extension of Tax Relief Act of 2006 or before January 1, 
     2007, if pursuant to a binding contract in effect on such 
     enactment date''.
       (c) Conforming Amendments.--
       (1) Section 38(c)(3)(B) is amended by striking ``section 
     1400L(a)'' and inserting ``section 1400K(a)''.
       (2) Section 168(k)(2)(D)(ii) is amended by striking 
     ``section 1400L(c)(2)'' and inserting ``1400K(c)(2)''.
       (3) The table of sections for part I of subchapter Y of 
     chapter 1 is amended by striking ``1400L'' and inserting 
     ``1400K''.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to periods 
     beginning after September 30, 2008.
       (2) Subsection (b).--The amendments made by subsection (b) 
     shall take effect as if included in section 301 of the Job 
     Creation and Worker Assistance Act of 2002.

     SEC. 126. LIMITATION ON AWARD OF LEASES TO HOLDERS OF CERTAIN 
                   EXISTING DEEP WATER LEASES.

       No lease may be issued under title I of division C of this 
     Act to any lessee under an existing lease issued by the 
     Department of the Interior pursuant to the Outer Continental 
     Shelf Deep Water Royalty Relief Act (43 U.S.C. 1337 note), 
     where such existing lease is not subject to limitations on 
     royalty relief based on market price.

  Mr. MARKEY (during the reading). Mr. Speaker, I ask unanimous consent 
that the amendment be considered as read and printed in the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Massachusetts?
  Mr. THOMAS. Mr. Speaker, reserving the right to object, I believe 
perhaps we ought to proceed in the reading of the amendment.
  The SPEAKER pro tempore. The Clerk will read.
  The Clerk continued to read the amendment.
  Mr. THOMAS (during the reading). Mr. Speaker, I believe the point has 
been made that the amendment goes on for another 9 pages like that and 
doesn't reach the OCS point.
  Mr. Speaker, I withdraw my reservation of objection.
  The SPEAKER pro tempore. Is there objection to dispensing with the 
reading?
  There was no objection.
  The SPEAKER pro tempore. Pursuant to House Resolution 1099, the 
gentleman from Massachusetts (Mr. Markey) is recognized for 5 minutes.
  Mr. MARKEY. Mr. Speaker, I yield myself 1 minute.
  Mr. Speaker, again, the Markey amendment does nothing about drilling 
in the new areas that are opened up in this bill. What the amendment 
says is that on all of those leases in the 1990s that had no royalty 
payments required at all, that finally if these oil and gas companies 
want to move into this new oil and gas gold rush in the Gulf of Mexico, 
they have to renegotiate those old contracts, those windfall profits, 
that 20 to $60 billion that could be used for the defense of our 
country, to reduce the deficit or for any other purposes.
  This is a very simple amendment, and what it does is it mirrors what 
we voted on in May of this year when 252 Members of the House voted to 
force these oil and gas companies to finally play their role in 
contributing to the balancing of the budget. Otherwise, the oil 
companies are going to continue to just tip the American taxpayer 
upside down.
  Mr. Speaker, I reserve the balance of my time.
  The SPEAKER pro tempore. The gentleman cannot reserve his time.
  Mr. MARKEY. Mr. Speaker, I yield 2 minutes to the gentleman from New 
York (Mr. Rangel).
  Mr. RANGEL. Mr. Speaker, I just want to share with the chairman that 
I recognize his concern that he got the amendment too late. I am 
surprised that he is opposing it, because I know that the content of 
the amendment, even though the procedure may not have been exactly as 
he would like, were things that he had previously supported. So it 
would seem to me that those of us who support the base bill, the 
amendment is only offered to improve upon that, even though it just 
excludes only one provision which is in this, which the gentleman from 
Massachusetts has spoken eloquently on, and I think even there the 
chairman would agree that it might be a better bill if that was 
excluded.
  I do hope, as I am voting for the bill, that we might have a chance 
for those who are here and those who are listening to recognize that 23 
million taxpayers are being held hostage by the alternative minimum 
tax. We have had ample opportunity to correct that, but coming from a 
Congress that most of us are against the tax increases, it just seems 
to me would be inconsistent with the past rhetoric, having the 
opportunity to remove this tax increase, which is certainly what it 
would be if we don't extend the relief from the alternative minimum tax 
for all of these people who never were intended to pay this tax.
  So I think it would be a good time to show the bipartisanship in 
being for this substantial tax cut, or at least to prevent a tax 
increase, if we supported this amendment, at the same time to support 
the spirit of the reason in which this great Congress came to the 
assistance----
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. MARKEY. Mr. Speaker, how much time do I have remaining?
  The SPEAKER pro tempore. Two minutes remaining.
  Mr. MARKEY. I apologize to the gentleman. I only have 1 minute to 
give to the gentleman from New York (Mr. Hinchey) at this time.
  I am now advised that the gentleman from New York (Mr. Hinchey) wants 
to

[[Page 23182]]

yield his minute to the gentleman from New York (Mr. Rangel).
  Mr. RANGEL. I have completed. I yield back to the gentleman from 
Massachusetts.
  I am just saying that we in New York thank you for the generosity 
that you have, and we just hope that it is not taken back by refusing 
to support this amendment, where we can receive the tax credit for our 
transportation.
  Mr. MARKEY. Mr. Speaker, I yield myself the remainder of the time and 
that is again to make the point that this amendment is central to the 
reclaiming of the $60 billion which the oil and gas industry has 
escaped in paying for drilling on the public lands of the United 
States. This is like Teapot Dome in the 1920s. They don't pay 
royalties. They have escaped payment for the use of the oil and gas for 
the American people.
  This isn't their oil and gas; it is ours. This amendment just says 
that if they want to drill in the Gulf of Mexico in this new land, they 
have got to renegotiate these old contracts where they don't pay any 
royalties at all. At $40, $50, $60, $70, $80 a barrel the American 
taxpayer is paying at the pump, they don't get any tax relief when they 
use American oil and gas from the American public lands.
  Vote ``aye'' for the Markey-Hinchey amendment. It is the key to 
ensuring that this bill has a fiscally sound core at its heart.
  Mr. THOMAS. Mr. Speaker, I rise in opposition to the amendment.
  The SPEAKER pro tempore. The gentleman from California is recognized 
for 5 minutes.
  Mr. THOMAS. I do think it is important to note there are a number of 
items in the bill, not just the Outer Continental Shelf. As was 
indicated by the gentleman from Massachusetts and indicated by the 
gentleman from New York, there is an alternative minimum tax provision 
in this amendment. One of the things that the Democratic leadership has 
said, since prior to the election is, that if they were elected, if 
they were chosen, if they were going to be dealing with items that cost 
money, they were going to submit themselves to the so-called PAYGO 
rules. PAYGO rules are exactly what it sounds like: you pay as you go.
  I find it ironic that there is this great pressure to move this 
amendment now before they do come into the majority, because the 
alternative minimum tax provisions of this amendment have no PAYGO 
requirement.
  What, in fact, they have is spend without covering the costs, and so 
I understand the urgency to get this done right now so that they don't 
have to follow the commitment that they have made.
  Boy, is that typical. In terms of the railroad bonds, I will repeat, 
in a personal conversation with the Democratic leader of the Senate, he 
asked me to make sure, not withstanding previous support and structure 
that we were dealing with, in this extremely fragile measure, being 
carried in an unusual way to make sure that we can send it to the 
President, notwithstanding whether you believe the railroad bond 
provision has merit or doesn't have merit, it cannot be added at this 
time or you will lose the measure. I personally will put my trust in 
the judgment of the Democratic leader of the Senate.
  Finally, on OCS. As I said to the gentleman from Massachusetts, in 
another time, in another place, in another circumstance for largely the 
same reason that I mentioned, we have to correct this. I appreciate it 
has been going on for 10 years. We do understand it was signed into law 
by President Clinton. I guess my question to you is, if it has been 
going on for 10 years, and you take over this place in less than a 
month, and you have 100-day priority structure, 100-hour structure, 
excuse me, were you not able to find room on the 100-hour structure to 
do this? It sounds to me, based upon the strength and the merit of your 
arguments, this would be number 1, 2 or 3 on the 100 hours.
  Because in that same conversation that I had with the Democratic 
leader in the Senate, he said, Bill, please, we cannot have this added 
to the measure. It will split the Senate. We are very fragile, trying 
to hold ourselves together, notwithstanding the merits of this. Please, 
don't put it on this measure.
  Time, place, manner, it is 10 years overdue. Can we make it 10 years 
and 20 days overdue so that you don't destroy all of the stuff that is 
in this bill so that we can get this done and then we turn the floor 
over to you in the first 100 hours? I am sure this would be number 1, 2 
or 3 based upon the outrage that I think you justifiably present on 
this particular issue.
  For all those reasons, unwillingness to follow their own rules they 
say they are going to follow on PAYGO for an alternative minimum tax, 
the fact that we looked at the railroad bonds, there was a bipartisan 
bicameral agreement, it was too sensitive at this time, and the fact 
that OCS will blow up everything else in this bill, I will ask my 
colleagues to vote ``no'' on this amendment so we can vote ``yes'' on 
everything else.
  Mr. PITTS. Mr. Speaker, I rise today in support of H.R. 6111, which 
extends many essential Medicare programs that sustain our seniors every 
day and keeps them healthy. I applaud provisions in this bill that 
maintain and preserve access to crucial health care services, like 
physical therapy, primary care, and dialysis treatments. Our seniors 
should never have to worry about their access to care. Congress has a 
responsibility to ensure that our Medicare program is strong and stable 
enough to provide services without impediments or limitations on 
access.
  Unfortunately, I believe Congress on this occasion missed an 
opportunity to ensure unfettered access in an increasingly crucial area 
of medical practice today: diagnostic imaging. Imaging procedures, like 
CT scans, MRIs, ultrasound, PET and Xrays save countless lives each 
day; they identify diseases early on, improving outcomes and lowering 
costs associated with undiagnosed illness. Seniors rely on brain scans, 
cardiac diagnostics and other diagnostic and therapeutic technologies 
every day for disease detection and treatment.
  Access to those services, however, is threatened by provisions in the 
Deficit Reduction Act of 2005, DRA, that make drastic cuts to payments 
for these services that are crucial to identifying life-threatening 
conditions and guiding diagnostic and therapeutic interventions. The 
DRA includes payment reductions, inserted at the last minute of 
Congressional negotiations and without any debate in either body, of 
between 30 and 50 percent for many of these services performed in 
doctors' offices and freestanding clinics, seriously endangering the 
viability of those practices, and thus threatening seniors' access to 
convenient imaging services outside of the hospital setting.
  This year, I introduced legislation, H.R. 5704, the Access to 
Medicare Imaging Act of 2006, which would have delayed these cuts for 
two years while the Government Accountability Office studies the cuts' 
impact on seniors' access to care. I did so because I was especially 
concerned that seniors in America's rural areas would face increasingly 
longer driving distances for testing when some physician clinics stop 
offering these services, and would inevitably be forced to receive 
these services in hospitals where longer wait times and higher co-
payments might cause many seniors to forego services altogether. In 
short, I introduced H.R. 5704 because I was concerned about patients--
about patients losing their access to life-saving diagnostic services. 
Evidently, I was not alone. To date, 142 of my colleagues--from both 
sides of the aisle--in the House have signed on as cosponsors of this 
critically important legislation.
  Unfortunately, the cuts my bill would have temporarily averted go 
into effect on January 1, 2007, and I fear that our action here today 
to protect access to a number of important Medicare services but not to 
preserve access to diagnostic imaging services is an omission with 
significant consequences. Without relief from the cuts, many physician 
practices that provide high quality diagnostic imaging services will 
shrink in size or shut their doors altogether. Hospitals will overload 
with patients, and access will suffer. Today's legislation offered a 
unique opportunity to prevent these consequences by including language 
to delay the looming cuts until further study of their appropriateness 
is completed.
  While I regret this missed opportunity, I am hopeful that in the 
110th Congress a bipartisan group of my colleagues will, once again, 
work together to provide open, unfettered access to medically 
appropriate services that improve the quality and length of life for 
America's seniors.
  Mr. WEXLER. Mr. Speaker, I strongly oppose this unconscionable 
attempt by the Republican leadership to force passage of a

[[Page 23183]]

damaging offshore oil drilling measure by attaching it to an omnibus 
bill, H.R. 6111. The language contained within this bill, which would 
open the eastern Gulf of Mexico to oil and gas exploration, threatens 
Florida's delicate ecosystem, places coastal tourism and fishing 
industries at economic risk, and does little to address our dependence 
on fossil fuels.
  If Congress was serious about offering real energy solutions, then we 
would be examining the true environmental and economic impacts of 
offshore drilling and exploring the use of clean, renewable energy 
technologies, increased fuel efficiency, and conservation. Policymakers 
should not be strong-armed into supporting legislation that could cause 
irreparable harm to our ecosystem and economy.
  Mr. Speaker, the American people deserve an open and honest debate on 
our Nation's energy policy. I urge my colleagues to reject this bill 
and support passage of a comprehensive energy plan that promotes 
independence and protects our Nation's resources as well as the health 
of our communities.
  Mr. DINGELL. Mr. Speaker, I rise today in support of S. 3711, the 
Gulf of Mexico Energy Security Act of 2006. I believe this legislation 
offers a balanced approach to increasing our energy independence, while 
still ensuring the safety of our environment.
  I had opposed H.R. 4761, the Deep Ocean Energy Resources Act of 2006, 
when it was brought before the House because I believed it was the 
wrong way to approach Outer Continental Shelf drilling. It is my strong 
belief that if we are going to open Federal waters to leasing and 
drilling activities, than these revenues should be dedicated to go to 
the Federal Treasury for the betterment of our Nation. Ideally, I 
believe that revenues from leasing activities should be dedicated to 
conservation funding, as legislation like the Conservation and 
Reinvestment Act, which I introduced with Representative Don Young a 
few years back would have. Unfortunately, the full scope of our 
legislation was never signed into law.
  However, S. 3711 offers just that. Fifty percent of revenues from 
leasing activities will be designated to the Federal Treasury, and 
revenues that will be designated to the gulf producing States are 
authorized solely for conservation efforts. This legislation clearly 
states that each gulf producing State dedicate their revenues ``only 
for 1 or more of the following purposes: projects and activities for 
the purposes of coastal protection; mitigation of damage to fish, 
wildlife, or natural resource; implementation of a federally-approved 
marine, coastal, or comprehensive conservation management plane; 
mitigation of the impact of outer Continental Shelf activities through 
the funding of onshore infrastructure projects.'' In addition, 12.5 
percent of these revenues will be dedicated to the Land and Water 
Conservation Fund.
  It is clear from the high cost of oil and natural gas today that we 
need to explore ways to increase our supply of hydrocarbons. Since the 
Low-Income Home Energy Assistance Program, LIHEAP, began in 1981, the 
portion of winter heating bills that LIHEAP covers has declined to 8 
percent. Benefit levels based on the 1981 value have decreased from 
$209 in 1983 to $132 in 2004, causing many seniors on fixed incomes and 
low income families to bear the burden of excessive heating bills. If 
S. 3711 is enacted, the Minerals Management Service estimated that the 
area proposed for drilling contains at least 1.26 billion barrels of 
oil and 5.8 trillion cubic feet of natural gas enough natural gas to 
heat and cool every home in Michigan for the next for 16 years. 
Furthermore, the Congressional Budget Office, CBO, estimates that if S. 
3711 is enacted, direct spending of Outer Continental Shelf recipients 
would be reduced by $900 million over the 2008-2016 period.
  Mr. Speaker, I support S. 3711 today because it proposes a more 
limited approach to Outer Continental Shelf drilling plan than the 
House version, H.R. 4761. I am pleased that this legislation directs 
revenues towards conservation, ensuring that by increasing our domestic 
natural gas supply we are not compromising the environmental safety of 
our coastal lands in the Gulf of Mexico.
  We can all agree that we should be looking for alternative fuels and 
renewable energy sources, but our immediate concern should be reducing 
the cost of natural gas and oil supplies for those most vulnerable in 
our society. I anticipate that the House Energy and Commerce Committee 
will look into alternative fuels and renewable energy sources during 
the 110th Congress.
  Mr. LANGEVIN. Mr. Speaker, I rise today to voice my support for the 
many beneficial elements of the Tax Relief and Health Care Act. This 
bill includes several greatly needed extensions of tax provisions that 
will continue to help middle class families and small businesses to 
prosper throughout our Nation.
  The measure before us today has many provisions I support, including 
extensions of the Research and Development Tax Credit and the Work 
Opportunity Tax Credit, the deduction of higher education expenses, and 
others. I am a cosponsor of legislation to make the Research and 
Development Tax Credit permanent, as it keeps American companies 
competitive and provides a strong incentive for businesses to invest in 
the future and create jobs. I am also pleased that this bill includes 
provisions to help make college more affordable to millions of students 
and allow teachers to deduct out-of-pocket expenses.
  This bill will also ensure that a pending 5.1 percent cut in Medicare 
payments to physicians does not take effect. While I believe we could--
and should--have addressed this issue much earlier, I am pleased that 
these cuts will not take effect. I expect that next year, Congress will 
take meaningful action to reform and stabilize the Medicare provider 
payment system and I pledge to support efforts to that end.
  Unfortunately, this legislation also contains language authorizing an 
expansion of drilling in certain areas in the Gulf of Mexico. While I 
support efforts to improve our overall domestic energy production, we 
have not taken the necessary steps to encourage conservation efforts 
and energy efficiency programs, preferring instead to rely on oil and 
gas exploration. As I have stated in the past, we cannot dig or drill 
our way to energy independence. We need a comprehensive and forward-
thinking energy policy that provides affordable energy, encourages the 
development of clean and renewable sources, and enhances our Nation's 
economy.
  While I strongly believe that many of the tax provisions included in 
this legislation will significantly strengthen the middle class in our 
country, I am dismayed by the process through which we are considering 
this bill. The Republican majority has again waited until the last 
minute to bring this legislation to the floor, thereby considerably 
hindering our legislative process. In the 110th Congress, I will work 
with my colleagues to ensure measures are brought to the floor 
according to a process that allows ample time to review and debate 
legislation in an open and honest way.
  Ms. SEKULA GIBBS. Mr. Speaker, I rise in support of this bill, H.R. 
6111--Tax Relief and Health Care Act of 2006.
  This bill will open 8.3 million acres in the Gulf of Mexico to new 
oil and natural gas production. This bill is more narrow in scope than 
the bill that passed the House in June and I believe that more still 
needs to be done to increase access to our Nation's oil and natural gas 
resources. But this bill is a good step and I am happy to support its 
passage.
  Folks in my district near Houston, Texas understand the oil and gas 
business since Houston has long been headquarters to several of the 
world's largest oil and gas producing companies. Unfortunately, today 
the U.S. imports nearly 60 percent of our oil from foreign countries 
including more than 1 million barrels of crude oil per day from 
Venezuela which is run by a socialist who has made no secret of his 
dislike of capitalism and his disrespect for our President.
  America holds vast resources of oil which can be accessed in an 
environmentally friendly manner with today's modern drilling 
technology. Reliance on foreign energy sources, if allowed to continue, 
will not only undermine our economy and our standard of living but will 
weaken our national security as we become more and more dependent on 
foreign sources to fulfill our energy needs.
  Working Americans do not want to find themselves over a barrel, 
especially trapped over a barrel of foreign oil. Working Americans want 
energy independence. I do not believe the goals of environmental 
protection and energy independence are mutually exclusive but are 
actually mutually dependent. I believe that it is critical, now more 
than ever, that all domestic sources of energy should be explored 
including the Outer Continental Shelf, the Gulf of Mexico, Alaska, and 
the Atlantic.
  I am also pleased that this bill dedicates 37.5 percent of the newly 
generated revenues to coastal States, including Texas, for beach 
restoration and 12.5 percent to the Land and Water Conservation Fund 
State assistance program. This program funds the creation and upkeep of 
local and State parks, open spaces, and resource conservation in all 50 
States. Not only will this bill help obtain energy independence, but it 
should result in recreation and conservation benefits for the American 
people. Over 40,000 local and state park and recreation projects have 
been aided by the LWEF in the 40-year history of the program since its 
inception in 1965.
  Mr. Speaker, I am proud to support passage of H.R. 6111--Tax Relief 
and Health Care Act of 2006 and urge my colleagues to join me in voting 
in favor of it.

[[Page 23184]]


  Ms. WOOLSEY. Mr. Speaker, I always tell people that I am from the 
most beautiful district in the country, Marin and Sonoma counties, 
California. We certainly have some of the most beautiful, pristine, and 
untouched coastline I have ever seen. That's why when I think of 
supporting an omnibus package today that includes offshore drilling 
within an 8.3 million-acre plot of the Gulf Coast, I can't help but 
think of what we'd be throwing away just for a 30-day supply of oil and 
gas.
  In fact, the only way the current leadership can attempt to get this 
25-year moratorium on offshore drilling lifted is by tying it together 
with other desperately needed provisions in order to try and sweeten 
the deal. Research and development tax credits, college tuition 
deductions, royalty set-asides for the urgently needed wetlands and 
levee restoration projects in Louisiana, and a package to prevent 
physician payment cuts next year. These are all perfectly good, 
bipartisan bills that should have passed on a number of occasions this 
year. In fact, while I'm happy to see that physicians are being spared 
a 5 percent cut in payments--I'm nonetheless appalled to see that yet 
again, we still have yet to improve their reimbursement formula.
  But rather than working to ensure these and other important 
provisions are approved before we adjourn, and rather than creating a 
real energy policy by providing incentives for conservation and 
investing in renewable energy technology, we're having it all jammed 
down our throats at the end of a lame-duck session. What's more, deep 
within the tax-relief provisions before us today is an increase in the 
income eligibility level for recipients of federally funded Washington, 
DC private school vouchers. We ought to focus public funds on public 
schools, not private school voucher programs. These short-sighted 
approaches are getting us nowhere.
  This pattern of putting politics over good policy has been typical of 
this Republican leadership and many of America's most vulnerable have 
suffered for it. Unfortunately Mr. Speaker, I rise in opposition to 
this bill today because, while I know of the many good things it 
includes, I cannot support opening up any ocean to the often-
irreversible damages associated with offshore drilling.
  Mr. McDERMOTT. Mr. Speaker, getting American trade policy right is 
important for many reasons. We must aim to provide opportunity for 
American businesses and the workers they rely upon, while also 
providing opportunity to people in less developed nations.
  We have before us a consensus measure that is long overdue. Consensus 
building is hard work and too often those in power seek that which is 
easy, not that which is best and necessary.
  I'm very pleased the bill before us continues the trade benefits 
vital to the nations of sub Saharan Africa.
  This bill would finally launch a more just trading policy with Haiti, 
and bring Vietnam into the community of trading nations that abide by 
international rules.
  I am pleased this bill continues to provide discretion to the 
President to retain competitive need limit waivers under the 
Generalized System of Preferences and does not require revocation of 
any such waiver currently in effect.
  Unfortunately, this bill falls short in some fundamental ways. First, 
we should make permanent GSP, not merely extend it temporarily.
  The program should also be enhanced to meet the pledge made by the 
U.S. Trade Representative to extend duty-free and quota-free treatment 
to products produced by workers in poor countries.
  At the beginning of this year's session of Congress, President Bush 
addressed the Congress and the American people and said, ``In a complex 
and challenging time, the road of isolationism and protectionism may 
seem broad and inviting--yet it ends in danger and decline.''
  The President is right. The bill before us offers a dangerous future 
for our dealings with our own hemisphere. It weakens our relationship 
with Peru, Colombia, Bolivia and Ecuador. The conditions this bill 
imposes upon continued trade benefits for these countries are 
unrealistic.
  This bill threatens thousands upon thousands of jobs in the Andean 
region, feeding a growing and destructive form of populism.
  Mr. Speaker, the perfect cannot be the enemy of the good.
  I know when the new Congress convenes in just over three weeks, the 
troubling components of this bill will be properly addressed, and I 
therefore support the bill before us today.
  In conclusion, let me say I very much look forward to the new 
Congress, when trade policy will be constructed in public, and in 
daylight.
  I look forward to next year's consideration of policies that aim to 
improve the human condition, and are produced by means enabling 
consensus, not division.
  Mr. GARRETT of New Jersey. Mr. Speaker, I rise today to voice my 
support for H.R. 6111, the Tax Relief and Healthcare Act. And, I would 
also like to thank Chairman Thomas for all of his hard work both on 
this bill and throughout his tenure in Congress and as Chairman of the 
Ways and Means Committee.
  Mr. Speaker, I am extremely pleased that this bill makes an important 
fix to a very urgent Medicare problem that if left unaddressed could 
have caused many hospitals--including 7 in New Jersey--to possibly have 
to close their doors to those who require that care. By providing an 
extension to changes to the hospital wage index classification system, 
these hospitals will be able to continue to receive higher Medicare 
reimbursement rates and thus avoid real financial jeopardy. Both this 
provision and the provision to eliminate the cut of up to 5 percent in 
payments to health care providers solve critical healthcare problems 
that cannot be put off any longer.
  I am also pleased that a number of very important tax relief 
extensions were included such as the Research and Development Tax 
Credit and state and local sales tax deductions. I only wish that 
instead of extending these; we would make them permanent.
  Mr. Speaker, I am, however, disappointed to see a number of 
miscellaneous provisions included in the bill that Congress has not had 
ample time to debate and that cost the taxpayers millions of dollars. 
The most egregious of these provisions is the provision regarding the 
Abandoned Mine Land Fund. The bill reduces some AML fees and converts 
the program from discretionary to mandatory spending. This will 
increase the deficit by $3.9 billion over the next 10 years. At a time 
when Congress should be looking for ways to reduce out-of-control 
mandatory spending, I do not believe this is prudent.
  Mr. Speaker, even though I do not support every provision in this 
bill, the Medicare fixes and tax relief extensions are critical in 
nature and will benefit millions of Americans and I urge my colleagues 
to support this bill.
  Mr. STARK. Mr. Speaker, I rise today in opposition to the Tax Relief 
and Health Care Act of 2006. Today's legislation is a perfect example 
of the reckless priorities that voters rejected in giving Democrats 
control of both the House and Senate. Adding another $45 billion to the 
deficit is a fitting last act from Congressional Republicans. They've 
added trillions to the debt in the last 6 years and have no remorse 
about adding a few billion more on the way out the door.
  This bill destroys our environment with expanded offshore drilling in 
the Gulf of Mexico, and though not in this bill, California is the next 
logical target. It expands school vouchers for Washington, D.C. as part 
of the Republican crusade to shift money to private and religious 
schools and undermine public education. On the healthcare front, this 
bill wastes a billion dollars on health savings accounts for the rich. 
It also expands the Medicare Advantage program, adding to the $5.2 
billion in annual overpayments taxpayers already cough up to private 
insurers.
  I am glad that this bill includes a temporary update for physicians, 
giving us a little breathing room heading into next year. But we're 
still going to have to do some very heavy lifting in order to dig 
ourselves out of the $250 billion hole Republicans created by kicking 
the can down the road the last few years. In the next Congress, I hope 
my colleagues on the other side of the aisle work with me to address 
this problem once and for all.
  Tax breaks for the rich and new oil for Cheney and the gang--looks 
like Republicans really won one for the Gipper today.
  Mr. Speaker, I oppose this fiscally irresponsible package and hope 
that my colleagues on both sides of the aisle will join me in rejecting 
this bill.
  Mr. ROYCE. Mr. Speaker, I rise to support H.R. 6111, the Tax Relief 
and Health Care Act of 2006.
  The bill contains a package of provisions designed to improve Health 
Savings Accounts, HSAs. HSAs were enacted by the Medicare Prescription 
Drug, Improvement, and Modernization Act of 2003. An HSA is a tax-
exempt account to which tax-deductible contributions may be made by 
individuals with a high deductible health plan.
  HSAs empower Americans to make informed decisions about their health 
care choices. Instead of being tied into a traditional plan that limits 
choice, and distances the consumer from the healthcare market, HSAs 
allow individuals to take an active role in the choosing how to spend 
their money.
  This bill will:
  Allow rollovers from Health FSAs and HRAs into HSAs;
  Repeal the Annual Plan Deductible Limitation on HSA Contributions;

[[Page 23185]]

  Modify the Cost-of-Living Adjustment;
  Expand the Contribution Limitation for Part-Year Coverage;
  Modify employer comparable contribution requirements for 
contributions made to non-highly compensated employees; and
  Allow one-time roll overs from IRAs into HSAs.
  Health Savings Accounts help families more easily access quality 
health care and save for medical costs. This bill will expand HSAs to 
help provide more Americans with health care coverage.
  Mrs. JONES of Ohio. Mr. Speaker, I rise in support of this tax 
legislation.
  H.R. 6111 includes many important provisions for the benefit of the 
American economy.
  Although I would have preferred a longer extension, this bill extends 
for one year:
  The R&D Tax Credit, which is a job creator and important to our 
domestic manufacturers, keeping them competitive globally;
  The Welfare-to-Work and Work-Opportunity Tax Credits, which are 
incentives for employers that hire economically disadvantaged 
individuals with significant barriers to employment; and
  The New Markets Tax Credit, which is important to the economic 
revitalization of our urban areas, such as Cleveland, Ohio.
  And there are many more important tax provisions that this bill 
contains, in particular one which I have worked with Congressmen Mike 
Turner and John Boehner and the Ohio delegation in a bipartisan fashion 
last year.
  It deals with Regional Income Tax Agencies, and it helps 
municipalities improve their tax collection.
  In my home State of Ohio we have the Regional Income Tax Agency (also 
known as RITA), which provides services to collect income tax for 120 
municipalities in the state--including the cities of Shaker Heights, 
East Cleveland, Beachwood, and others in my district.
  However, because their individual populations do not exceed 250,000 
people, these cities cannot receive Federal tax information from the 
IRS in order to better and more accurately collect local taxes.
  This legislation will allow municipalities that are members of 
Regional Income Tax Agencies to receive tax information from the IRS. 
Ohio RITA has determined that this will have two important economic 
benefits to Ohio cities:
  1. Identification of delinquent taxpayers, which significantly 
enhance tax revenues to RITA municipalities in Ohio to the extent of a 
projected $21 million per year, and
  2. Streamlining current business processes, thereby reducing costs to 
member municipalities.
  Additional revenues are exactly what cities in Ohio need as local 
governments face tough decisions to cut critical services such as 
police and fire protection. These additional funds can now go towards 
those key social services, as well as our schools.
  That is why I am in favor of this legislation and support its 
passage.
  However, let me state that I am greatly disappointed that relief from 
the Alternative Minimum Tax (AMT) is not in this legislation.
  The temporary AMT relief that Congress passed earlier this year 
expires at the end of this year, and it is not being extended in this 
legislation. That means that without AMT relief 15 million Americans 
face a tax increase as they stand to be hit by the AMT next year.
  The Republican leadership decided to punt to the Democrats on that 
issue. But that is okay, as we Democrats have vowed next year to defuse 
the ticking time bomb that is the AMT.
  The American people have placed us, Democrats, in the majority for a 
reason. They trust us to tackle the important issues that affect 
American families--and we will deliver.
  Mr. FALEOMAVAEGA. Mr. Speaker, I rise in support of H.R. 6111, the 
Tax Relief and Health Care Act of 2006, which includes an extension of 
30A tax credits for American Samoa's tuna canneries and protects the 
jobs of more than 5,000 cannery workers in the Territory.
  As a matter of public record, I thank the Honorable William Thomas, 
Chairman of the House Committee on Ways and Means, for his unwavering 
support in getting this deal done. Chairman Thomas is a true friend of 
American Samoa and has stood by us in our most difficult times. Because 
of him, our people have hope for a better future, and for this, I 
extend my deepest appreciation to the gentleman from California.
  I also thank the Honorable Charles Rangel, Ranking Member of the 
House Committee on Ways and Means. Congressman Rangel is also a friend 
of American Samoa and has championed our cause on each and every trade 
agreement that has come before the U.S. Congress. He also supports our 
extension of 30A tax credits and is fully committed to working with us 
to implement a long-term tax policy based on the input of all vested 
stakeholders, especially our tuna canneries which are our largest 
private sector employers.
  The possession tax credit offered by the Internal Revenue Code of 
1986 has encouraged two U.S. tuna canneries which employ more than 
5,150 people or 74 percent of the workforce to remain and invest in 
American Samoa. More than 80 percent of American Samoa's private sector 
economy is dependent either directly or indirectly on these canneries 
and a decrease in production or departure of one or both of the two 
canneries in American Samoa could devastate the local economy resulting 
in massive layoffs and insurmountable financial difficulties.
  For this reason, I again thank Chairman Thomas and Ranking Member 
Rangel for supporting my efforts to include an extension of 30A tax 
credits for American Samoa in H.R. 6111. Given how serious this issue 
is for American Samoa, I also urge my fellow colleagues to vote in 
favor of this important bill.
  Mr. RAHALL. Mr. Speaker, I would like the Record to show that I am 
voting for the pending legislation because it includes a historic 
accord to reauthorize the Abandoned Mine Reclamation Program and to 
address, in a comprehensive fashion, the pressing need to insure the 
long-term financial stability of the funds which finance health care 
for members of the United Mine Workers of America.
  My views on the OCS Leasing provisions in the pending legislation are 
well known. I oppose them.
  Yet in this case, the health and safety of coalfield residents, takes 
precedence as it always has, and always will, when it comes to how I 
discharge my duties.
  Mr. McKEON. Mr. Speaker, I rise in support of this legislation and 
would like to speak briefly on one of its most meaningful components.
  When the topic of school choice is debated in Washington and 
elsewhere, we often refer to the lucky lottery of life. A child doesn't 
control which family he or she is born into, what economic situations 
that family must deal with, or what school he or she is likely to 
attend. Yet the result of that ``lucky lottery of life'' often sets a 
child on a very specific path through his or her early years--and 
beyond.
  Each year, not too far from this Capitol building, we witness a 
lottery of a different type. The Washington Scholarship Fund, an 
organization founded to empower low-income Washington, DC families with 
a choice in where they send their children to elementary, middle, and 
high school, hosts an annual picnic where parents, grandparents, and 
others stand in line, waiting to enter a lottery of their own.
  The prize? A partial scholarship to a private school in the nation's 
capital and a chance for their loved ones to escape some of the 
nation's most troubled public schools. It's ironic that each year, for 
a limited number of Washington families, one lottery has the potential 
to dramatically impact the results of the other.
  In 2004, the Washington Scholarship Fund was chosen to manage the 
nation's first ever federally-funded K-12 scholarship program, the DC 
Opportunity Scholarship Program. This program provides low-income 
students and families access to up to $7,500 to cover tuition, fees, 
and any transportation expenses at a private elementary or high school 
in Washington.
  Written by Congress, signed by a Republican President, and embraced 
by a Democrat mayor of the District of Columbia, this school choice 
program is making a real difference for about 1,800 students this year.
  But for some, their participation will be placed at risk if we do not 
act today. Due to very small increases in income or changes in family 
structure, some participating families now find themselves ineligible 
for the scholarships they have received for the last two years. Unless 
we increase the income eligibility threshold for renewing scholarship 
families that entered the program in its first two academic years from 
200 percent to 300 percent of the federal poverty level, some 
participating students will no longer be eligible to attend the schools 
that they have called home for the last two years.
  By raising the income eligibility limit for renewing families, the 
average income of Opportunity Scholarship Program families would be 
$22,424. So, the program still would serve the low-income population 
for which it was initially designed. And this would not cost taxpayers 
a single dollar more, since this technical change simply allows 
participating students to remain in the program.
  Just as importantly, by allowing these students to continue 
participating, an ongoing federal evaluation of the program can remain 
in place as it was intended. If we don't act, potentially hundreds of 
low-income students will

[[Page 23186]]

be forced from the program but will continue to be studied as if they 
could use the scholarship, thereby compromising the study. For both 
supporters and opponents of the program, this study is sure to provide 
us some meaningful data about both its successes and shortcomings, and 
it serves us well to ensure its results are valid.
  Mr. Speaker, this language has passed the Senate Appropriations 
Committee already and enjoys bipartisan support. For the good of this 
program and the students it serves--students we call neighbors here in 
Washington, DC--I urge its passage here in the House as well.
  Mr. BLUMENAUER. Mr. Speaker, this bill serves as a reminder why the 
American people feel Congress is failing them. It is little more than 
an incoherent grab bag of the good and bad. I am disappointed that the 
Republicans, in their last act of power, chose to skirt their 
responsibilities as lawmakers by sending this bill to the floor at the 
last minute and under a rule that does not allow for Members to 
thoroughly analyze its contents. Due to a prior engagement in my 
district, I was unable to be here to vote on H.R. 6111. But in the end, 
there is no good vote for this bill. It is my hope that under 
Democratic leadership next year, we will hold ourselves to a higher 
standard and refuse to make policy like this.
  Had I been present for the vote on the Markey-Hinchey motion to 
recommit on the Alternative Minimum Tax and oil royalties, I would have 
voted ``aye.''
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in support of H.R. 
6111, the Tax Relief and Health Care Act of 2006. I do so for three 
reasons. First, the bill extends and modifies certain key tax relief 
provisions through 2007, which provide much needed relief to working 
and middle-class taxpayers.
  Second, I believe that among the most urgent challenges confronting 
the Nation, none is more important than lessening, and ultimately 
ending, America's dependence on foreign energy sources. H.R. 6111 
advances this goal in a small but appreciable way by permitting oil and 
gas production in an 8.3-million acre area of the Gulf of Mexico, with 
37.5 percent of the lease income allocated to the Gulf Coast States 
closest to the drilling area, excluding the Florida gulf coast.
  Third, the bill blocks the scheduled 5 percent cut in Medicare 
payments to doctors, and provides for a 1.5 percent increase in such 
payments next July for physicians who submit data relating to certain 
quality of care standards.


        I. Extension of Tax Relief for Working and Middle Class

  Mr. Speaker, H.R. 6111 extends through 2007 several tax provisions 
under current law, including provisions that expired at the end of 2005 
and some that are set to expire at the end of this year. Many of these 
provisions are targeted to middle- and working-class taxpayers. I 
strongly support this portion of the bill. I would like to discuss 
several of the more important middle class tax relief provisions.


                  State and Local Sales Tax Deduction

  H.R. 6111 extends by 2 years the provision allowing taxpayers the 
option of deducting general sales taxes paid. This provision is of 
particular benefit to taxpayers living in States that do not impose a 
State income tax. Taxpayers have long been permitted to claim an 
itemized deduction for certain State and local taxes, including 
personal income tax, real property taxes and personal property taxes, 
but they have not been to deduct general sales taxes since 1986. The 
2004 corporate tax bill allowed taxpayers, in 2004 and 2005 only, to 
claim instead an itemized deduction for State and local sales taxes, 
either by accumulating receipts and deducting the total amount or using 
tables produced by the Internal Revenue Service. In States without 
State income tax, this provision provided a new deduction for 
individuals.


                  Higher Education Expenses Deduction

  Similarly, the bill renews and extends through 2007 the ``above-the-
line'' deduction that taxpayers may claim for higher education 
expenses: An ``above-the-line'' deduction is a deduction that may be 
claimed by a taxpayer even if he or she does not itemize his or her 
deductions. Under the provision of law that would be extended, 
taxpayers can deduct up to $4,000 of such expenses if their adjusted 
gross income does not exceed $65,000 for a single return or $130,000 
for a joint return, and up to $2,000 if their income does not exceed 
$80,000 for a single return or $160,000 for a joint return. In this 
increasingly globalized economy, a college education is becoming a 
necessity. We must do all we can to ensure that access to higher 
education remains affordable to the working and middle class. That is 
why I support strongly the renewal and extension of the deductibility 
of higher education expenses.


                      Teacher Classroom Deduction

  Mr. Speaker, H.R. 6111 also extends through 2007 a provision that 
expired at the end of 2005, under which teachers may claim an ``above-
the-line'' deduction up to $250 of the expenses for certain supplies 
that they purchase for their elementary or secondary classrooms with 
their own money.
  Mr. Speaker, my daughter taught in elementary schools and I know how 
devoted she and her colleagues were to providing their students with 
the most enriching educational experience possible. It is not uncommon 
for them to dip into their personal funds to buy supplies and materials 
to supplement those provided by the schools. Teachers go this extra 
mile because they love what they do; everyone knows it is not because 
they are overpaid. I approve the teacher classroom deduction included 
in the bill. I hope we will be able to increase the amount of this 
deduction in the future.


                  II. Energy Independence and Security

  It is imperative that America achieves energy independence in the 
21st century. We must end our addiction to foreign sources of oil, most 
of which are found in regions of the world which are unstable and in 
some cases, opposed to our interests. Accordingly, there is no issue 
more integral to our economic and national security than energy 
independence.
  Although I must admit that I do have reservations about certain 
aspects of this bill and the process with which this bill has arrived 
on the House floor, I nevertheless support it as a step in the right 
direction of America achieving energy independence. I think many of us 
in the House would agree that the issues central to this bill, the 
future of energy exploration off of our gulf coastlines, deserves more 
time for deliberation, debate, and a process for amendment. Some of 
these provisions which were incorporated into H.R. 4671 include my 
amendments which supported minority-serving universities and minority-
owned businesses.
  These very important provisions were designed to ensure that sectors 
of our Nation and economy which are often overlooked, namely, minority-
serving institutions and minority-owned businesses, were given an 
opportunity to benefit from and compete for the opportunities afforded 
in this bill.
  Nevertheless, I still support H.R. 6111 because it is a step in the 
right direction, a step towards energy independence, and a step away 
from being eternally beholden to foreign sources of oil. Additionally, 
I believe the energy aspects of the bill lay the foundation for the 
development of a new model for reclaiming wetlands; will help the Gulf 
Coast States affected by Hurricanes Katrina and Rita to recover from 
the disaster and prosper in the future; provide thousands of good-
paying jobs for the middle class; and serve as a blueprint for general 
revenue sharing in the 21st century.
  In this connection, I would like to emphasize that the revenue 
sharing formula in the bill ensures that 37.5 percent of the revenue 
from new areas of production and new leases go towards gulf producing 
States. Furthermore, 20 percent of the revenue allocated to gulf 
producing States must be allocated to the State's coastal subdivisions 
to be used for the purposes of: coastal protection, conservation, 
coastal restoration, hurricane protection, protecting coastal wetlands, 
and mitigating damage to fish and wildlife. In addition, 12.5 percent 
of the revenue will be allocated to the Land and Water Conservation 
Fund, which ensures that the environmental impact of offshore drilling 
will be monitored, managed, and regulated to ensure that our coasts are 
protected.
  Energy is the lifeblood of every economy, especially ours. Producing 
more of it leads to more good jobs, cheaper goods, lower fuel prices, 
and greater economic and national security. However, the U.S. is more 
than 60 percent dependent on foreign sources of energy, twice as 
dependent today as we were just 30 years ago. Although energy is the 
lifeblood of America's economic security, this growing and dangerous 
dependence has resulted in the loss of hundreds of thousands of good 
American jobs, skyrocketing consumer prices, and vulnerabilities in our 
national security.
  Energy imports now make up one-third of America's trade deficit. 
Through this bill, America could improve the supply-demand imbalance, 
lower consumer prices, and increase jobs by producing more of its own 
energy resources. With my district of Houston being the energy capital 
of the world, I support the efforts that this bill makes to recognize 
State stakeholders and incorporate their interests in revenue sharing.
  According to the U.S. Minerals Management Service, MMS, America's 
deep seas on the Outer Continental Shelf, OCS, contain 420 trillion 
cubic feet of natural gas--the U.S. consumes 23 TCF per year--and 86 
billion barrels of oil--the U.S. imports 4.5 billion per

[[Page 23187]]

year. Even with all these energy resources, the U.S. sends more than 
$300 billion--and countless American jobs--overseas every year for 
energy we can create at home.
  In some cases, the U.S. is facing much-higher energy prices than 
other countries. Natural gas, for example, is as much as ten times more 
expensive in the United States than it is in foreign nations. This fact 
alone has led to the loss of hundreds of thousands of high-paying 
American jobs, as natural gas-dependent factories are forced to close 
their doors and move overseas in search of more affordable energy. The 
outsourcing of American jobs is an issue of central importance to me 
and my constituents, and I believe this bill is a step in the right 
direction of bringing jobs back to hard-working Americans.


       iii. h.r. 6111 blocks medicare cuts in physician payments

  Finally, Mr. Speaker, I support the bill because it blocks the 5 
percent cut in payments to physicians who treat Medicare patients which 
otherwise would go into effect on January 1, 2007. Over the next 9 
years, Medicare's trustees are projecting a total of 40 percent in 
Medicare payment cuts to physicians. If the January 1 cut is imposed, 
the average physician payment rate, accounting for increases in the 
cost of running a practice, will be less in 2007 than it was in 2001.
  The Medicare sustainable growth rate, SGR, formula, used in 
establishing payment rates under the physician fee schedule under the 
Medicare program, resulted in significant payment cuts to physicians 
and health care professionals in 2002. These cuts were for doctors 
only, not for hospitals or other medical facilities.
  The Medicare SGR formula would have resulted in payment cuts to 
physicians and health care professionals in 2003, 2004, 2005, and 2006 
had Congress not intervened.
  According to the Medicare Payment Advisory Commission, MedPAC, and 
the board of trustees of the Federal Hospital Insurance Trust Fund and 
the Federal Supplementary Medical Insurance Trust Fund, the Medicare 
SGR formula will result in substantial payment cuts to physicians and 
health care professionals through at least 2015.
  MedPAC is very well respected and a recognized authority on Medicare 
and healthcare issues. It does not support the impending payment cuts 
and is concerned that such consecutive annual payment cuts would 
threaten access to physician services over time, particularly primary 
care servIces.
  MedPAC has raised concerns over current payment policies that may 
discourage medical students and residents from becoming primary care 
physicians because many Medicare beneficiaries rely on primary care 
providers for important health care management.
  According to a 2006 American Medical Association, survey, if payment 
cuts to physicians under the Medicare program go into effect: half of 
physicians plan to decrease the number of new Medicare patients they 
accept; half of physicians plan to defer the purchase of information 
technology; 1 in 3 physicians who treat patients living in rural 
communities will discontinue rural outreach services; and almost half--
43 percent--of physicians will decrease the number of new TRICARE 
patients they accept.
  The annual actions by Congress that have overridden the Medicare SGR 
formula have only resulted in instability and unpredictability for 
physicians, health care professionals, seniors, and individuals with 
disabilities. It does not solve the long-term systemic problem of 
rising costs.
  Stable, positive updates under the Medicare physician fee schedule 
that accurately reflect medical practice cost increases are vital for 
encouraging and economically supporting physicians' ability to make the 
significant financial investment required for health information 
technology and participation in quality improvement programs.
  A stable payment system for physicians is critical to preserve 
Medicare beneficiaries' access to high-quality health care.
  We cannot in good conscience establish barriers for doctors and 
health care professionals to surmount in order to continue to provide 
access to high-quality Medicare services for all Medicare 
beneficiaries. Congress must halt the impending January 1 cuts and 
develop an alternative payment system that accurately reflects the 
costs of providing care to Medicare beneficiaries.
  The biggest single flaw is that this payment schedule rubric recently 
announced by CMS has no connection to the actual cost of providing 
patient care. Starving doctor's practices will not decrease healthcare 
prices, or change unethical behavior. It will drive doctors out of 
business who are desperately needed to provide care to our elderly.
  In conclusion, I urge my colleagues to support H.R. 6111 because it 
takes three steps in the right direction: (1) It provides much needed 
tax relief to working and middle class taxpayers; (2) It reduces the 
Nation's dependence on foreign energy supplies and ensures that Gulf 
Coast States share in the revenue from new areas of production while 
protecting our environment; and (3) It blocks draconian cuts by 
Medicare in payments to physicians. I urge all members to support the 
bill.
  Ms. FOXX. Mr. Speaker, today, I voted for H.R. 6111, the Tax Relief 
and Health Care Act of 2006. This bill contained a number of critical 
provisions, which I supported, and a few which I opposed.
  Among the critical provisions contained in the bill, were the tax 
deductions for higher education expenses, the extension of the research 
and development tax credit, and the tax deduction for teachers who 
purchase certain educational supplies for their classrooms. I approve 
of allowing employers who hire individuals in targeted groups to claim 
the maximum $2,400 work opportunity tax credit and the welfare to work 
tax credit. This bill enhances individual ownership of health care 
decisions by strengthening health savings accounts. And of course, I am 
thrilled that the bill prevents a decrease in Medicare physician 
reimbursement payments.
  However, I was disappointed that some of my colleagues included some 
other policies, such as the provisions involving the abandoned mine 
land program. The Congressional Budget Office has determined that these 
changes will increase government spending, costing the taxpayers $4.9 
billion over 10 years. Ultimately, the inclusion of these provisions 
was enough to violate the budget resolution agreed to by the House, 
which is intended to help restrain out-of-control Federal spending. I 
am sorry also that the bill contained an earmark demanded by the 
Democratic leader in the Senate.
  It is my firm belief, shared by many others, that this was the last 
opportunity we would have for at least 2 years to vote for these good 
provisions. Realizing that this was not a perfect bill and that it was 
unlikely I would have a chance to vote on a ``clean'' bill, I voted for 
this bill to ensure the positive tax policies that have led to 38 
consecutive months of economic growth will not end.
  Ms. McCOLLUM of Minnesota. Mr. Speaker, I rise to support H.R. 6111 
because it is critical that we address the unsustainable cut scheduled 
for reimbursement to physicians under Medicare. Due to the inequities 
of the Federal Government's formula, physicians in Minnesota receive 
some of the lowest payment in the Nation while providing, in my 
opinion, the best care. I will continue to work to ensure that Congress 
addresses this problem in the long term and that quality health care is 
available for Medicare beneficiaries in Minnesota and across the 
country.
  I also strongly support the tax extensions included in this 
legislation. The Research and Development Tax credit, the college 
tuition deduction, the State sales taxes exemption, and teacher 
classroom expenses deduction are widely supported and important to 
families and businesses in the 4th District. It is unfortunate that the 
Republican majority has once again failed to craft a durable solution 
to the Alternative Minimum Tax, which is squeezing middle class 
families. I look forward to working with incoming-Chairman Rangel to 
improve tax fairness for middle class families in the next Congress.
  However, I am deeply disappointed the Republican majority chose to 
insert an unrelated and irresponsible plan to open 8 million acres to 
oil and gas drilling in the eastern Gulf of Mexico into this otherwise 
constructive bill. Our country consumes 25 percent of the world's oil 
supply but controls only 3 percent of known reserves. That means an 
energy policy focused primarily on domestic fossil fuel production will 
never deliver energy security for America's working families and small 
businesses. Instead, the Congress must commit to a comprehensive energy 
strategy that makes bold investments in homegrown renewable fuels, mass 
transit, innovative vehicle technology and increased vehicle 
efficiency.
  In addition to these failings, the bill's offshore drilling 
provisions continue a pattern of giveaways for big oil at taxpayer 
expense. H.R. 6111 will rob tens of billions of dollars from the 
Federal Treasury in offshore drilling royalties. Nearly 40 percent of 
the royalty revenue generated from new leases will go to four States--
Texas, Louisiana, Mississippi and Alabama--which will cost the Federal 
Government an estimated $20 billion over the next two decades. And the 
bill does nothing to stop the Federal Government from giving oil and 
gas companies $7 billion in tax breaks for drilling on Federal lands 
(known as ``royalty relief'')--resources that should be directed to 
providing tax relief for American families.
  I voted for the Markey-Hinchey amendment to H.R. 6111, which would 
have restored a

[[Page 23188]]

modicum of fiscal sanity to the offshore drilling aspects of the bill. 
The amendment would push oil and gas companies to renegotiate their 
royalty free drilling leases by prohibiting companies holding such 
leases from gaining access to the eight million acres this bill opens 
to exploration. Unfortunately the amendment narrowly failed on the 
House floor.
  Despite a clear message in last month's mid-term election for a 
return to ethical governance, Republican leaders used the popularity of 
tax credit extensions and the need to restore cuts in Medicare 
reimbursement to force a reckless offshore drilling plan upon America. 
Therefore, it is with both regret and resolve that I support the 
omnibus package included in H.R. 6111.
  Mr. UDALL of New Mexico. Mr. Speaker, I rise today to once again 
express my strong opposition to the way the current Majority conducts 
business here in the House of Representatives. True to their tenure in 
charge of this Chamber, on the last day of the 109th Congress they are 
packaging four separate provisions only barely tenuously related into 
one omnibus measure. This is not the way to legislate, and it is 
particularly frustrating because there are several excellent provisions 
included in this omnibus bill, unfortunately packaged with atrocious 
provisions that cannot and would not stand on their own merits.
  Mr. Speaker, there is much to like in this legislation. There are 
extensions of many important tax provisions that are scheduled to soon 
expire that are critical to businesses, students, educators, renewable 
energy development, and our troops. There is a vitally important 
freeze, and in some cases an increase, in reimbursements under Medicare 
for physicians. This particular provision is extremely important to my 
State of New Mexico, and I have worked to address the scheduled cut in 
reimbursement rates by cosponsoring legislation to repeal the 
sustainable growth rate formula, as well as joined many of my 
colleagues in sending letters to the House Leadership and other Members 
on committees with oversight responsibility for the Medicare program. 
In addition to the physician reimbursement, there are also several 
important provisions for rural health care providers under Medicare. 
Many of these provisions are included in rural health care legislation 
that I was proud to cosponsor during this Congress.
  However there is more that is objectionable in this legislation. Once 
again, the majority's tunnel vision and unwillingness to legitimately 
explore alternative sources of energy has led us to their energy 
panacea--drilling in areas closed to exploration. There are answers to 
our energy problems beyond drilling, the majority simply chooses not to 
look at them in a serious manner. I strongly support the rebuilding of 
the Gulf Coast States devastated by last year's hurricanes, and 
recognize the obligation of the Federal Government to assist in doing 
so. I also believe we must urgently protect and restore coastal 
wetlands. But I do not believe it should be done through the royalties 
derived from oil and gas leases authorized by this provision. These 
funds should be deposited in the Federal coffers--as more than the 
majority of funds derived from Federal oil and gas leases are--not set 
up as a new entitlement for only four States. Redirecting these funds 
marks an unprecedented raid on the Federal Treasury of billions of 
dollars for the benefit of four States. This kind of fiscal 
irresponsibility is unacceptable.
  Also Mr. Speaker, I am extremely disappointed at the inclusion of 
Health Savings Accounts, a measure that would have trouble passing 
Congress as a stand-alone. Again, this legislation marks another 
significant decrease in revenue, to the estimated tune of $287 million 
from FY07 to FY11, and by $1 billion from FY07 to FY16.
  Regardless of the provisions included in this legislation, this is no 
way to legislate. It is not good government and is not good for 
democracy. Each of these measures are important enough on their own 
that they deserve up-or-down votes and the only good about today is 
that this is the last day the majority win be able to conduct the 
business of the House in such an irresponsible manner.
  Ms. LEE. Mr. Speaker, I rise in opposition to the underlying bill. 
Once again the Republican Congress has used this horrendous martial law 
process to ram a bill through on the last day of session.
  It is unclear what exactly is in this bill because none of us have 
had a chance to actually read it.
  We do know at least that it represents a last ditch attempt by the 
Republican Congress to sell out to their friends in the oil and gas 
industry. This time they want to open up the Outer Continental Shelf in 
the Gulf of Mexico to new drilling--supposedly so they can help the 
Gulf Coast rebuild.
  Are we really so cynical as to tie assistance for the gulf coast 
areas ravaged by Hurricanes Katrina, Rita and Wilma to new oil and gas 
drilling? Are we really going to equate the welfare of Big Oil 
companies to the needs of hurricane survivors?
  It seems like every time we open the newspaper or turn on the news 
these days, the oil industry is announcing another record profit. Yet 
here they are again, hat in hand begging for another giveaway. Do they 
really need our help?
  I firmly believe that we have a moral responsibility to help the gulf 
coast rebuild, but we should not condition any assistance on the future 
revenues of Big Oil.
  If we really wanted to help the gulf coast, we should've been 
debating and passing H.R. 4197, the Hurricane Katrina Recovery, 
Reclamation, Restoration, Reconstruction and Reunion Act of 2005, 
introduced by the Congressional Black Caucus last year.
  If we really wanted to stop our addiction to oil and produce a real 
national energy strategy we wouldn't be debating this sham idea to open 
the gulf to new drilling.
  I urge my colleagues to vote ``no.''
  Mr. CAMP of Michigan. Mr. Speaker, I am pleased that the House of 
Representatives has overwhelmingly approved legislation that extends 
meaningful tax relief to American manufacturers, families, students, 
and teachers. As the 109th Congress closes, and an era of Republican 
control ends, it is fitting that one of the last bills considered 
provides Americans with the opportunity to keep more of their hard-
earned money.
  H.R. 6111 does much more than lower taxes--it will help America keep 
its competitive edge. For example, H.R. 6111 includes incentives for 
companies to engage in research and development work, allows students 
to deduct their college tuition costs, and encourages the use of solar, 
wind, landfill gas, and other clean energy technologies. Importantly 
too, this legislation extends tax benefits for individuals and families 
to use for their health care needs through the use of health savings 
accounts.
  In my view, one of the highlights of the Tax Relief and Health Care 
Act is the 2-year extension and enhancement of the research and 
development tax credit. As one of the leading advocates in the House of 
Representatives for the R&D tax credit, I am particularly pleased that 
companies will be able to use a new, Alternative Simplified Credit. The 
ASC will enable more companies to utilize the credit. As foreign-based 
R&D spending has grown faster than U.S.-based R&D spending, it is 
imperative that the U.S. offer American companies tax incentives for 
high-risk, long-term research projects. Extension and enhancement of 
the R&D credit is vitally important for companies doing business in my 
home state of Michigan. Michigan ranks as one of the top 10 states in 
reported R&D activity with more than 1,300 companies performing 
research and development in the state.
  Another tax item of significance in H.R. 6111 provides teachers with 
a $250 tax deduction for the purchase of classroom supplies, equipment, 
and other related school materials. I have long sponsored legislation 
that provides tax relief to teachers. America's K-12 teachers spend 
literally thousands of their own dollars on classroom supplies. The 
average educator spends $1,180 on non-reimbursed expenses such as 
books, lesson materials, math flash cards, crayons, and countless other 
items that help children learn. H.R. 6111 provides teachers with tax 
relief that will help defray the significant out-of-pocket cost of 
educational items for their students and classrooms.
  Regarding clean energy, this legislation will extend tax credits for 
renewable electricity production from sources such as wind, biomass, 
and landfill gas. It will also extend incentives for commercial and 
residential use of solar power. Greater tax credits and deductions will 
help lessen the higher costs typically associated with these types of 
clean energy. These incentives will also help expand consumer 
acceptance of renewable energy. And, without consumer demand, 
businesses are reluctant to develop the technologies to harness these 
energy sources. H.R. 6111 will extend current tax policies that will 
foster the development and use of clean energy.
  I appreciate Chairman Thomas' hard work in bringing this legislation 
to the floor. His skill and dedication to putting together good tax 
policy will be missed. It has been an honor serving with him on the 
House Ways and Means Committee.
  Mr. Speaker, I am proud to vote in favor of H.R. 6111 and am 
confident that these incentives will help more Americans keep more of 
what they earn while further stimulating our already robust national 
economy.
  Mr. THOMAS. Mr. Speaker, allow me to recite from explanatory material 
prepared for H.R. 6111, the Tax Relief and Health Care Act of 2006.

[[Page 23189]]



            DIVISION B--MEDICARE AND OTHER HEALTH PROVISIONS

     Section 1. Short title of division

     Current law
       No provision.
     Explanation of provision
       This division may be cited as the ``Medicare Improvements 
     and Expansion Act of 2006''.

        Title I--Medicare Improved Quality and Provider Payments

     Section 101. Physician payment and quality improvement

     Current law
       Medicare payments for services of physicians and certain 
     nonphysician practitioners are made on the basis of a fee 
     schedule. The fee schedule assigns relative values to 
     services that reflect physician work (i.e., the time, skill, 
     and intensity it takes to provide the service), practice 
     expenses, and malpractice costs. The relative values are 
     adjusted for geographic variations in costs. The adjusted 
     relative values are then converted into a dollar payment 
     amount by a conversion factor. The conversion factor for 2006 
     is $37.8975.
       The conversion factor is the same for all services. It is 
     updated each year according to a formula specified in law. 
     The intent of the formula is to place a restraint on overall 
     spending for physicians' services. Several factors enter into 
     the calculation of the formula. These include: (1) the 
     sustainable growth rate (SGR) which is essentially a 
     cumulative target for Medicare spending growth over time 
     (with 1996 serving as the base period); (2) the Medicare 
     economic index (MEI) which measures inflation in the inputs 
     needed to produce physicians services; and (3) the update 
     adjustment factor which modifies the update, which would 
     otherwise be allowed by the MEI, to bring spending in line 
     with the SGR target. In no case can the adjustment factor be 
     less than minus seven percent or more than plus three 
     percent.
       The law specifies a formula for calculating the SGR. It is 
     based on changes in four factors: (1) estimated changes in 
     fees; (2) estimated change in the average number of Part B 
     enrollees (excluding Medicare Advantage beneficiaries); (3) 
     estimated projected growth in real gross domestic product 
     (GDP) growth per capita; and (4) estimated change in 
     expenditures due to changes in law or regulations. In order 
     to even out large fluctuations, MMA changed the GDP 
     calculation from an annual change to an annual average change 
     over the preceding 10 years (a ``10-year rolling average'').
       The SGR target is not a limit on expenditures. Rather, the 
     fee schedule update reflects the success or failure in 
     meeting the target. If expenditures exceed the target, the 
     update for a future year is reduced. This is what occurred 
     for 2002. It was also slated to in subsequent years; however, 
     legislation kept this from occurring. Most recently, the 
     Deficit Reduction Act froze the 2006 conversion factor at the 
     2005 level. A negative 5 percent update is slated to occur in 
     2007.
     Explanation of provision
       The conversion factor for 2007 would be the conversion 
     factor otherwise applicable for 2007 divided by the product 
     of: (i) 1 plus the Secretary's estimate of the percentage 
     increase in the MEI for 2007 (divided by 100), and (ii) 1 
     plus the Secretary's estimate of the update adjustment factor 
     for 2007. These changes would not be considered in the 
     computation of the conversion factor for 2008.
       The provision would also implement a voluntary quality 
     reporting system for Medicare payments for covered 
     professional services tied to the reporting of claims data. 
     Physicians and other eligible professionals (including 
     physician assistants, nurse practitioners, clinical nurse 
     specialists, certified registered nurse anesthetists, 
     certified nurse-midwives, clinical social workers, clinical 
     psychologists, registered dietitians or nutritional 
     professionals as defined under current law, physical 
     therapists, occupational therapists, and qualified speech-
     language pathologists) who report the quality information 
     would be eligible for a bonus incentive payment (BIP) for 
     services between July 1, 2007 to December 31, 2007. The 
     Secretary would also address a mechanism whereby an eligible 
     professional could provide data on quality measures through 
     an appropriate medical registry (such as the Society of 
     Thoracic Surgeons National Database) as identified by the 
     Secretary.
       For covered professional services furnished beginning July 
     1, 2007 and ending December 31, 2007, the quality reporting 
     measures are those identified as physician quality measures 
     under the CMS Physician Voluntary Reporting Program (PVRP) as 
     published on the CMS public website as of the date of 
     enactment of this provision. The Secretary may modify these 
     quality measures if changes are based on the results of a 
     consensus-based process meeting in January of 2007 and if 
     such changes are published on the CMS website by April 1, 
     2007. The Secretary may subsequently refine the quality 
     measures (without notice or opportunity for public comment) 
     up until July 1, 2007 by publishing modifications or 
     refinements to previously published quality measures but may 
     not change the quality measures.
       Eligible professionals who (1) furnish services for which 
     there are established quality measures as determined by this 
     provision and (2) satisfactorily submit quality measures 
     would be paid a single additional bonus payment amount equal 
     to 1.5% of the allowed charges for covered professional 
     services furnished during the reporting period. The bonus 
     incentive payments would be paid from the Supplemental 
     Medical Insurance Trust Fund (Part B). These bonus incentive 
     payments would not be taken into account in the calculations 
     and determination of payments for providers in health 
     professional shortage areas or Physician Scarcity Areas, nor 
     would these bonus payments be taken into account in computing 
     allowable charges under this subsection.
       The Secretary would presume that if an eligible 
     professional submits data for a measure, then the measure is 
     applicable to the professional. However, the Secretary may 
     validate (by sampling or other means as the Secretary 
     determines to be appropriate) to determine if an eligible 
     professional reports measures applicable to such professional 
     services. If the Secretary determines that an eligible 
     professional has not reported applicable measures, the 
     Secretary would not pay the bonus.
       Satisfactory reporting of data determines whether the 
     provider is eligible for the bonus payment. If there are no 
     more than 3 quality measures that are applicable to the 
     professional services furnished, the provider must report 
     each measure for at least 80 percent of the cases to meet the 
     criteria. If there are 4 or more quality measures that are 
     applicable, the provider must report at least 3 of the 
     quality measures for at least 80 percent of the cases.
       In specifying the form and manner for the submission of 
     data on quality measures under the physician quality 
     reporting system to be implemented under section 1848(k) of 
     the Social Security Act (as added by section 101(b) of the 
     legislation), the House intends that the Secretary of Health 
     and Human Services should recognize reporting of quality 
     measures under demonstrations including the Physician Group 
     Practice demonstration project (under section 1866A of the 
     Social Security Act) and the Medicare Care Management 
     Performance demonstration project (under section 649 of the 
     Medicare Prescription Drug, Improvement, and Modernization 
     Act) as permissible forms and manners of reporting under the 
     system.
       The provision also places a limit on bonus payments. No 
     provider would receive payments in excess of the product of 
     the total number of quality measures for which data are 
     submitted and three times the average per measure payment 
     amount. The average per measure payment amount would be 
     estimated by the Secretary and would equal (the total amount 
     of allowed charges under Medicare part B for all covered 
     professional services furnished during the reporting period 
     on claims for which quality measures are reported) divided by 
     (the total number of quality measure for which data are 
     reported during the reporting period under the physician 
     reporting system).
       The Secretary would provide for education and outreach to 
     eligible professionals regarding these changes. The Secretary 
     would implement these provisions acting through the 
     Administrator of the Centers for Medicare and Medicaid 
     Services (CMS).
       This provision would allow no administrative or judicial 
     review, under the existing Medicare appeals process or 
     through a Provider Reimbursement Review Board as currently 
     codified in statute, of the determination of measures, 
     satisfactory reporting, payment limitation, or bonus 
     incentive payment. A determination under the provisions of 
     this section would not be treated as a determination under 
     current appeals processes for Medicare.
       For 2008, the quality measures would change to a set of 
     measures adopted or endorsed by a consensus organization 
     (such as the National Quality Forum or the AQA, originally 
     known as the Ambulatory Care Quality Alliance) that may 
     include measures that have been submitted by a physician 
     specialty developed through a consensus-based process (such 
     as through the American Medical Association (AMA) convened 
     Physician Consortium for Performance Improvement) as 
     identified by the Secretary. Such measures shall include 
     structural measures, such as the use of electronic health 
     records and electronic prescribing.
       The CMS administrator would publish a proposed set of 
     quality measures for 2008 in the Federal Register no later 
     than August 15, 2007 with a public comment period. The final 
     set of measures appropriate for eligible professionals to use 
     to submit quality data in 2008 would be published no later 
     than November 15, 2007.
       The Secretary would be required to establish a Physician 
     Assistance and Quality Initiative (PAQI) Fund which would be 
     available to the Secretary for physician payment and quality 
     improvement initiatives. Such initiatives may include 
     application of an adjustment to the update to the conversion 
     factor. The amount available to the Fund would be $1.35 
     billion for 2008. The Secretary would be required to provide 
     for expenditures from the Fund for the obligation of the 
     entire amount (to the maximum extent feasible) for payment 
     for physicians services furnished in 2008. The specified 
     amount

[[Page 23190]]

     available to the Fund would be made to the Fund from the Part 
     B trust fund as expenditures are made from the Fund. The 
     amounts in the Fund are to be available in advance of 
     appropriations, but only if the total amount obligated to the 
     Fund does not exceed the amount available to it. The 
     Secretary may obligate funds from the Fund only if the 
     Secretary determines (and the CMS Chief actuary and the 
     appropriate budget officer certifies) that there are 
     sufficient amounts available in the Fund. If the expenditures 
     from the fund affect the conversion factor for a year, this 
     would not affect the computation of the conversion factor for 
     a subsequent year. Congress intends that CMS would continue 
     to develop quality measures for reporting for 2008. The 
     amounts in the fund are available at the Secretary's 
     discretion to make payments for physician services provided 
     in calendar year 2008 in a manner the Secretary sees fit, 
     including for quality purposes.
       The Secretary would be required to transfer $60 million 
     from the Part B trust fund to the CMS Program Management 
     Account for the period of FY 2007, FY 2008, and FY 2009 for 
     the purposes of implementing this section.
     Reason for change
       Physicians are scheduled to receive a negative 5 percent 
     update in 2007. The physician update should be addressed to 
     prevent access issues to physician services. In addition, the 
     update should include additional payment for quality 
     reporting in 2007. The House encourages all physicians to 
     participate in quality reporting and encourages CMS to 
     continue to develop measures in consultation with the 
     physician community and the existing structures available 
     through the National Quality Foundation and the AQA.
     Section 102. Extension of floor on Medicare work geographic 
         adjustment

     Current law
       Medicare's physician fee schedule assigns relative values 
     to services that reflect physician work (i.e., the time, 
     skill, and intensity it takes to provide the service), 
     practice expenses, and malpractice costs. The relative values 
     are adjusted for geographic variations in costs. The adjusted 
     relative values are then converted into a dollar payment 
     amount by a conversion factor.
       The geographic adjustment factors are indices that reflect 
     the relative cost difference in a given area in comparison to 
     a national average. An area with costs above the national 
     average would have an index greater than 1.00 while an area 
     with costs below the average would have an index below 1.00. 
     The physician work geographic adjustment factor is based on a 
     sample of median hourly earnings in six professional 
     specialty occupational categories. Unlike the other 
     geographic adjustments, the work adjustment factor reflects 
     only one-quarter of the cost differences in an area. The 
     practice expense adjustment factor is based on employee 
     wages, office rents, medical equipment and supplies. The 
     malpractice adjustment factor reflects differences in 
     malpractice insurance costs. The Secretary is required to 
     periodically review and adjust the geographic indices.
       MMA required the Secretary to increase the value of any 
     work geographic index that was below 1.00 to 1.00 for 
     services furnished on or after January 1, 2004 and before 
     January 1, 2007.
     Explanation of provision
       The requirement is extended for an additional year, for 
     services provided before January 1, 2008.
     Reason for change
       To provide a one-year extension to increase the value of 
     any work geographic index that was below 1.00 to 1.00 to 
     allow for higher adjustments under the work component in 
     certain areas.
     Section 103. Update of the composite rate component of the 
         basic case-mix adjusted prospective payment system for 
         dialysis services
     Current law
       The Medicare Prescription Drug, Improvement, and 
     Modernization Act of 2003 (MMA) required the Secretary to 
     establish a basic case-mix adjusted prospective payment 
     system for dialysis services furnished either at a facility 
     or in a patient's home, for services furnished beginning on 
     January 1, 2005. The basic case-mix adjusted system has two 
     components: (1) the composite rate, which covers services, 
     including dialysis; and (2) a drug add-on adjustment for the 
     difference between the payment amounts for separately 
     billable drugs and biologicals and their acquisition costs, 
     as determined by the Office of the Inspector General of the 
     Department of Health and Human Services.
       The Secretary is required to update the basic case-mix 
     adjusted payment amounts annually beginning with 2006, but 
     only for that portion of the case-mix adjusted system that is 
     represented by the add-on adjustment and not for the portion 
     represented by the composite rate. The DRA increased the 
     composite rate component of the basic case-mix adjusted 
     system for services beginning January 1, 2006 by 1.6 percent, 
     over the amount paid in 2005. For 2006, the base composite 
     rate is $130.40 for independent ESRD facilities and $134.53 
     for hospital-based ESRD facilities. The total drug add-on 
     adjustment, with inflation, is 14.5%.
     Explanation of provision
       The composite rate component of the basic case-mix adjusted 
     system shall be increased by 1.6 percent above the 2005 rate, 
     for services furnished on or after January 1, 2006 and before 
     April 1, 2007. For services furnished on or after April 1, 
     2007, the composite rate component of the basic case-mix 
     adjusted system shall be increased by 1.6 percent, above the 
     amount of such rate for services furnished on March 31, 2007.
       Not later than January 1, 2009, GAO shall submit a report 
     to The House on the costs for home hemodialysis treatment and 
     patient training for both home hemodialysis and peritoneal 
     dialysis. The report shall include recommendations for a 
     payment methodology that measures, and is based on, the cost 
     of providing such services and takes into account the case 
     mix of patients.
     Reason for change
       Unlike other facilities, dialysis facilities do not have an 
     inflation update for labor and capital costs. This provision 
     addresses that inequity. The National Institutes of Health 
     (NIH) is conducting a clinical trial on dialysis, partially 
     in the home settings. This report would develop 
     recommendations on how payments could incentivize the use of 
     home dialysis.
     Section 104. Extension of Treatment of certain physician 
         pathology services under Medicare
     Current law
       In general, independent laboratories cannot directly bill 
     for the technical component of pathology services provided to 
     Medicare beneficiaries that are inpatients or outpatients of 
     acute care hospitals. The Medicare, Medicaid, and SCHIP 
     Benefits Improvement and Protection Act of 2000 (BIPA) 
     permitted independent laboratories with existing arrangements 
     with acute care hospitals to bill Medicare separately for the 
     technical component of pathology services provided to 
     inpatients and outpatients. The arrangement between the 
     hospital and the independent laboratory had to be in effect 
     as of July 22, 1999. The direct payments for these services 
     applied to services furnished during 2001 and 2002. Despite 
     expiration of the BIPA moratorium after 2002, CMS directed 
     the carriers to continue the moratorium until they received 
     further instructions from CMS. MMA continued this policy for 
     2005 and 2006.
     Explanation of provision
       The provision is extended through 2007.
     Reason for change
       The provision expires on December 31, 2006 and independent 
     laboratories will no longer be able to directly bill Medicare 
     for the technical component for physician pathology services.
     Section 105. Extension of Medicare reasonable costs payments 
         for certain clinical diagnostic laboratory tests 
         furnished to hospital patients in certain rural areas
     Current law
       Generally, hospitals that provide clinical diagnostic 
     laboratory tests under Part B are reimbursed under a fee 
     schedule. MMA specified that hospitals with under 50 beds in 
     qualified rural areas (low density population rural areas) 
     would receive 100 percent reasonable cost reimbursement for 
     clinical diagnostic tests covered under Part B that are 
     provided as outpatient services. The provision applied to 
     services furnished during a cost-reporting period beginning 
     during the 2-year period starting July 1, 2004.
     Explanation of provision
       The provision is modified to apply to services furnished 
     during a cost-reporting period beginning during the 3-year 
     period starting July 1, 2004. The provision is effective as 
     if included in the enactment of MMA.
     Reason for change
       The MMA provision expired and this extends it for one more 
     cost reporting year.
     Section 106. Hospital Medicare reports and clarifications
       (a) Correction of Mid-Year Reclassification Expiration
     Current law
       Generally speaking, the Medicare Geographic Classification 
     Review Board's (MGCRB) classification decisions are required 
     to extend geographic reclassification for 3 years in the 
     inpatient prospective payment system (IPPS) and end on 
     September 30th each year.
     Explanation of provision
       This provision corrects the mid year expiration of certain 
     hospital geographic reclassifications.
     Reason for change
       The provision creates consistency in the end dates for 
     reclassification decisions for hospitals to be consistent 
     with the Federal Fiscal Year. It is the intent of the House 
     authors that group reclassifications made by the MGCRB that 
     begin April 1, 2007 would be unaffected by this provision, 
     with the exception of the continuing reclassifications of 
     hospitals whole individual reclassifications would have 
     lapsed prior to April 1 2007.
       (b) Revision of the Medicare Wage Index Classification 
           System
     Current law
       As directed by Medicare statute, the amount of a hospital's 
     operating and capital

[[Page 23191]]

     payments will vary according to the relative level of 
     hospital wages in its geographic area compared to the 
     national average. The geographic areas or hospital labor 
     markets that have been used by Medicare are urban areas as 
     established by the Office of Management and Budget (OMB). 
     Essentially, a hospital's payment will depend upon whether it 
     is in an urban area (and if so, which one) and the wage data 
     reported by the hospitals in that area. Counties that are not 
     in an urban area are grouped into one statewide rural labor 
     market. Also, with modifications, the hospital wage data are 
     used to adjust for geographic cost differences in Medicare's 
     payment systems for other services, such as inpatient 
     rehabilitation facility (IRF), long-term care hospital 
     (LTCH), home health agency (HHA), skilled nursing facility 
     (SNF), and hospice care. Unlike these other providers, IPPS 
     hospitals have an administrative process, through appeals to 
     the MGCRB (The Medicare Geographic Classification Review 
     Board), to reclassify to different geographic areas. Other 
     statutory provisions affecting a hospital's geographic 
     designation also have been established.
     Explanation of provision
       The Medicare Payment Advisory Commission (MedPAC) would be 
     required to submit a report to The House no later than June 
     30, 2007 on the wage index classification system used in 
     Medicare's prospective payment systems, including IPPS. This 
     report would include recommendations for alternatives to the 
     current methods used to compute the wage index. $2 million in 
     funds from the Treasury would be appropriated to MedPAC for 
     FY2007 for these activities. The Secretary would be required 
     to include in the proposed rule making process for FY2009 one 
     or more proposals to revise the IPPS wage adjustment, after 
     taking into account MedPAC's recommendations. The proposals 
     would consider problems associated with labor market 
     definitions; modification or elimination of geographic 
     reclassifications and other adjustments; the use of Bureau of 
     Labor Statistics data to calculate relative wages; minimizing 
     variations in wage index adjustments between and within 
     metropolitan statistical areas and rural areas; the 
     feasibility of applying all components of the proposal to 
     other settings, including HHAs and SNFs; methods to minimize 
     the volatility of wage index adjustments while maintaining 
     the budget neutrality; the effect on health care providers 
     and on each region of the country; implementation of 
     proposal, including the transition methods; and occupational 
     mix issues such as staffing practices, effect on quality of 
     care and alternative recommendations.
       (c) Elimination of unnecessary report
       Historically, under IPPS, hospitals in different geographic 
     areas have had their Medicare payments calculated using 
     different per discharge amounts. For example, at one point, 
     hospitals in large urban areas had been paid on the basis of 
     a larger per discharge amount than hospitals in smaller urban 
     areas or those in rural areas. This classification system had 
     changed over time. By FY1995, discharge amounts were 
     calculated for large urban hospitals and all other hospitals. 
     The implementation of the MMA permanently equalized the per 
     discharge payment rates for all hospitals except for those in 
     Puerto Rico.
       Starting in 1987, the Secretary has been required to submit 
     a report to The House that includes an initial estimate of 
     the percentage update (change factor) in the per discharge 
     payment amounts. The Secretary's estimate is required to take 
     into consideration the recommendations of Medicare's payment 
     commission and may vary for hospitals in different geographic 
     areas.
     Explanation of provision
       This provision would eliminate the requirement that the 
     Secretary include recommendations with respect to the update 
     factors no later than March 1 before the beginning of the 
     fiscal year.
     Section 107. Extension of payment rule for brachytherapy

     Current law
       The Medicare Prescription Drug, Improvement and 
     Modernization Act of 2003 (MMA) established that 
     brachytherapy devices consisting of radioactive sources (or 
     seeds) would be paid on the basis of a hospital's cost for 
     such device (computed by reducing a hospital's charges to 
     costs) for services furnished starting January 1, 2004 until 
     January 1, 2007. The Secretary was directed to create 
     additional groups of covered Outpatient Department Services 
     (OPD) that classify such devices separately from other 
     services (or group of services) in a manner that reflects the 
     number, isotope, and radioactive intensity, including 
     separate groups for palladium-103 and iodine-125 devices. 
     Starting January 1, 2007, CMS will continue to pay separately 
     for brachytherapy sources, but will base payment on the 
     source-specific median costs. CMS has not created new 
     brachytherapy source codes to differentiate stranded from 
     nonstranded brachytherapy sources. The historical data used 
     to establish the source-specific median costs should reflect 
     utilization of stranded brachytherapy sources.
     Explanation of provision
       This provision would extend payment for brachytherapy 
     sources on the basis of a hospital's costs (adjusted from its 
     charges) established under MMA until January 1, 2008. The 
     provision would direct the Secretary to create additional 
     groups of covered OPD services in a manner that reflects the 
     number, isotope, and radioactive intensity, including 
     separate groups for palladium-103 and iodine-125 devices and 
     for stranded and nonstranded devices furnished on or after 
     July 1, 2007. These provisions may be implemented by program 
     instruction or otherwise.
     Reason for change
       This provision allows brachytherapy devices to continue to 
     be paid based on a hospital's cost, to allow CMS further time 
     to collect data in order to base payments on the source-
     specific median costs after one year, and requires CMS to 
     establish additional groups of services for stranded and non-
     stranded devices.
     Section 108. Payment process under the competitive 
         acquisition program (CAP)

     Current law
       MMA revised the way Medicare pays for Part B drugs. 
     Beginning in 2005, payments for these drugs are based on an 
     average sales price (ASP) payment methodology, which sets 
     payments at the weighted average ASP plus 6%; the Secretary 
     has the authority to reduce the ASP payment amount if the 
     widely available market price is significantly below the ASP. 
     Alternatively, beginning in 2006, drugs can be provided 
     through a newly established competitive acquisition program 
     (CAP). The intent of the program is to enable physicians to 
     acquire certain drugs from an approved CAP vendor thereby 
     enabling them to reduce the time they spend buying and 
     billing for drugs and finance risk.
     Explanation of provision
       The provision deletes the requirement that payments to CAP 
     contractors are conditioned upon the administration of the 
     drugs and biologicals. It specifies that payment may only be 
     made to the contractor upon receipt of a claim for a drug or 
     biological supplied by the contractor for administration to a 
     beneficiary. Further, the Secretary is required to establish 
     a post-payment review process to assure that payment is made 
     for a drug or biological only if it has been administered. 
     The process may be established by program instruction or 
     otherwise and may include the use of statistical sampling. 
     The Secretary is required to recoup, offset or collect any 
     overpayments determined by the Secretary.
       The section further clarifies that nothing in this 
     provision is to be construed as requiring any additional 
     competition by entities under the CAP program. Further the 
     provision is not to be construed as requiring any additional 
     process for elections by physicians under the program or 
     additional selection by a selecting physician of a CAP 
     contractor. The House, however, intends that the normal 
     competitive bidding process and physician election as 
     authorized by the MMA should continue as authorized by that 
     law. The provision applies to payments for drugs and 
     biologicals supplied on or after April 1, 2007. Additionally, 
     it applies, for claims that are unpaid as of April 1, 2007, 
     to drugs and biologicals supplied on or after July 1, 2006 
     and before April 1, 2007.
       In addition, the House would like to clarify an additional 
     issue regarding Medicare Part B drugs. The Social Security 
     Act (SSA) currently provides the Secretary of Health and 
     Human Services with the authority to revise the list of 
     compendia that are used to determine Medicare Part B coverage 
     of oncology drugs for off-label uses. Of the three compendia 
     currently listed in statute, one no longer is published and 
     another will soon be published under a different name. To 
     address this situation, requests for official recognition of 
     additional compendia have been made by the public. The 
     Medicare Coverage and Advisory Committee (MCAC) has reviewed 
     and voted on the desirable characteristics of new compendia; 
     however, the Centers for Medicare and Medicaid Services (CMS) 
     has not yet acted on the MCAC's review.
       A current list of compendia which contain the most current 
     clinical information about which drugs show the greatest 
     promise of treating various diseases is critical to ensure 
     that beneficiaries have access to the most appropriate 
     therapies. Correcting and expanding the list of compendia 
     organizations recognized by CMS for Medicare Part B coverage 
     purposes is a major step forward in accomplishing that 
     objective. While preserving the list of functioning compendia 
     currently covered by the SSA, the House directs the Secretary 
     to act as soon as possible to update the list of three 
     compendia, and report back to the House no later than January 
     30, 2007.
       The House is also concerned by reports that some Medicare 
     beneficiaries have trouble accessing IVIG therapies from 
     providers. It is our hope that the Office of the Inspector 
     General (OIG) and the Office of the Assistant Secretary for 
     Planning and Evaluation (ASPE) studies focused on IVIG are 
     promptly completed. The House hopes the Secretary would 
     promptly review such studies, and report to the House 
     regarding the adequacy of supply and Medicare reimbursement 
     related to the cost of acquiring IVIG and the complexity of 
     IVIG infusions. The House strongly urges the Secretary to 
     continue the IVIG

[[Page 23192]]

     pre-administration fee until the Secretary either assures the 
     House that Medicare reimbursement is adequate or a new 
     payment methodology is implemented to address concerns 
     regarding access to IVIG.
     Reason for change
       To provide clarification in order to allow for a post-
     payment review process to ensure that payment is made for a 
     drug or biological only if the drug or biological is 
     delivered for administration to a beneficiary. The House 
     intends for CMS to implement this provision by not matching a 
     claim for drugs to a claim with drug administration prior to 
     being paid. The post payment review is intended to 
     sufficiently protect against inappropriate claims.
     Section 109. Quality reporting for hospital outpatient 
         services and ambulatory surgical center services
       (a) Outpatient Hospital Services
     Current law
       Each year the hospital outpatient department (OPD) fee 
     schedule is increased by a factor that is generally based on 
     the hospital market basket (MB) percentage increase. In 
     certain years, the MB has been reduced by percentage points 
     as specified by statute.
     Explanation of provision
       Starting in 2009 and for each subsequent year, a hospital 
     paid under the inpatient prospective payment system (IPPS) 
     that does not submit required measures will receive an OPD 
     fee schedule increase of the MB minus 2.0 percentage points. 
     A reduction under this provision would only apply to payments 
     for the year involved and would not be taken into account 
     when computing the OPD fee schedule increase in a subsequent 
     year.
       Each IPPS hospital is required to submit data on measures 
     under this section in the form, manner, and timing specified 
     by the Secretary. The Secretary would be required to develop 
     appropriate measures for the measurement of the quality of 
     care (including medication errors) furnished by hospitals in 
     outpatient settings and that reflect consensus among affected 
     parties. To the extent feasible and practicable, the measures 
     shall include those set forth by one or more national 
     consensus building entitles. Nothing would prevent the 
     Secretary from selecting all hospital quality measures or a 
     subset of such measures. The Secretary would be able to 
     replace any measures as appropriate, such as where all 
     hospitals are effectively in compliance or the measures have 
     subsequently been shown not to represent the best clinical 
     practice.
       The Secretary would be required to establish procedures for 
     making the submitted data available to the public. These 
     procedures would ensure that a hospital has the opportunity 
     to review data prior to being made available to the public. 
     The Secretary would be required to report quality measures of 
     process, structure, outcome, patients' perspective on care, 
     efficiency, and costs of care on the Internet website of the 
     Centers for Medicare and Medicaid Services. Other conforming 
     amendments would also be established.
     Reason for change
       The Provision promotes the development of quality measures 
     for outpatient medical services and services provided in 
     ASC's. The House intends the measures to be developed in 
     consultation with affected entities and quality 
     organizations.
       (b) Application to Ambulatory Surgical Centers
     Current law
       Presently, Medicare pays for surgery-related facility 
     services in an ambulatory surgical center (ASC) based on a 
     fee schedule. The Medicare Prescription Drug, Improvement, 
     and Modernization Act of 2006 (MMA) required the Secretary to 
     implement a revised payment system for ASCs no later than 
     January 1, 2008, taking into account recommendations issued 
     by a required report from the Government Accountability 
     Office (GAO). The GAO report, which has just been issued, was 
     required to examine the relative costs of ASC services to 
     those in hospital outpatient departments. GAO was also 
     required to recommend whether CMS should use the outpatient 
     prospective payment system as the basis for the revised ASC 
     system. Total payments under the new system should be equal 
     to total projected payments under the old system.
     Explanation of provision
       In the revised payment system, the Secretary would be able 
     to provide for a reduction in any annual update of 2.0 
     percentage points for failure to report required quality 
     measures. A reduction under this provision would only apply 
     to payments for the year involved and would not be taken into 
     account when computing any annual increase factor in 
     subsequent years. Except as otherwise provided by the 
     Secretary, the provisions of subparagraphs (B), (C), (D), and 
     (E) of the newly established Section l833(t)(17) concerning 
     the form and submission of data, the development of 
     outpatient measures, the replacement of measures, and the 
     availability of quality measures in a hospital outpatient 
     setting would apply to ASC services.
     Reason for change
       The Provision promotes the development of quality measures 
     for outpatient medical services and services provided in 
     ASC's. The House intends the measures to be developed in 
     consultation with affected entities and quality 
     organizations.
       (c) Effective date
     Current law
       No provision.
     Explanation of provision
       The amendments made by the section would apply to payment 
     for services furnished starting January 1, 2009.
     Section 110. Reporting of anemia quality indicators for 
         Medicare part B cancer anti-anemia drugs

     Current law
       Medicare Part B covers certain drugs used as anticancer 
     chemotherapeutic agents and certain oral anti-emetic drugs 
     used as part of an anticancer chemotherapeutic regimen. It 
     also covers epoetin alpha for patients with kidney disease; 
     the drug may also be used to counter anemia for cancer 
     patients.
     Explanation of provision
       The provision requires that all claims submitted for drugs 
     for treatment of anemia in connection with cancer must 
     include information on the hemoglobin or hematocrit levels 
     for the individual. The information is to be submitted in the 
     form and manner specified by the Secretary. The provision 
     applies to drugs furnished on or after January 1, 2008. The 
     Secretary is required to address the implementation of the 
     provision in the physician fee schedule regulations for 2008.
     Reason for change
       Since 1989, ESRD facilities have provided lab values on red 
     blood cell counts to CMS to ensure that anemia is addressed. 
     This requires physician offices and hospital outpatient 
     departments to provide the same information.
     Section 111. Clarification of hospice satellite designation

     Current law
       Section 1814(i)(2)(A) of the Social Security Act limits 
     total Medicare payment amounts to individual hospice 
     providers by an absolute dollar amount, or ``cap amount.'' 
     This amount is based on the number of Medicare patients the 
     agency serves and is calculated by dividing total payments to 
     a hospice per year by the total number of beneficiaries 
     served to get the per beneficiary payment amount. If the per 
     beneficiary payment amount does not exceed the cap amount, 
     the hospice may retain all payments. If the result exceeds 
     the cap amount, the hospice must repay excess funds to the 
     Medicare program. For purposes of calculating whether or not 
     a hospice exceeds the cap amount, increasing the number of 
     beneficiaries a hospice serves reduces the per beneficiary 
     payment amount. A lower per beneficiary payment amount 
     reduces the likelihood that a hospice will exceed the annual 
     hospice cap and be required to repay excess funds to the 
     Medicare program.
     Explanation of provision
       For purposes of calculating the hospice cap for 2004, 2005 
     and 2006 and for hospice care provided after November 1, 2003 
     and before December 27, 2005, this provision would designate 
     hospice with provider number 290-1511 as a multiple location 
     of hospice with provider number 29-1500.
     Reason for change
       To prevent application of the Hospice cap in this 
     circumstance.

               Title II--Medicare Beneficiary Protections

     Section 201. Extension of exceptions process for Medicare 
         therapy caps

     Current law
       The Balanced Budget Act of 1997 established annual per 
     beneficiary payment limits for all outpatient therapy 
     services provided by non-hospital providers. The limits 
     applied to services provided by independent therapists as 
     well as to those provided by comprehensive outpatient 
     rehabilitation facilities (CORFs) and other rehabilitation 
     agencies. The limits did not apply to outpatient services 
     provided by hospitals.
       Beginning in 1999, there were two beneficiary limits. The 
     first was a $1,500 per beneficiary annual cap for all 
     outpatient physical therapy services and speech language 
     pathology services. The second was a $1,500 per beneficiary 
     annual cap for all outpatient occupational therapy services. 
     Beginning in 2002, the amount would increase by the Medicare 
     economic index (MEI) rounded to the nearest multiple of $10.
       The Balanced Budget Refinement Act of 1999 (BBRA) suspended 
     application of the limits for 2000 and 2001. The Medicare, 
     Medicaid, and SCHIP Benefits Improvement and Protection Act 
     of 2000 (BIPA) extended the suspension through 2002. 
     Implementation of the provision was delayed until September 
     2003. The caps were implemented from September 1, 2003 
     through December 7, 2003. MMA reinstated the moratorium from 
     December 8, 2003 through December 31, 2005.
       The caps went into effect again beginning January 1, 2006. 
     The 2006 caps are each $1,740. However, DRA required the 
     Secretary to implement an exceptions process for expenses 
     incurred in 2006. Under the process, a Part B

[[Page 23193]]

     enrollee, or a person acting on behalf of the enrollee, can 
     request an exception from the physical therapy and 
     occupational therapy caps. The individual may obtain such 
     exception if the provision of services is determined 
     medically necessary. The exceptions process only applies for 
     2006.
     Explanation of provision
       The provision extends the exceptions process through 2007.
       In addition, during consideration of the bill, the issue of 
     whether speech language pathologists should have a separate 
     provider number was raised in order to better report more 
     accurately on the bill's quality reporting program. The House 
     urges CMS to investigate this issue.
     Reason for change
       Provides a one-year extension of the exceptions process 
     established under the Deficit Reduction Act (DRA) to allow 
     patients to apply for additional therapy services if their 
     treatment is expected to exceed the annual cap. During 
     consideration of the bill, the issue of whether speech 
     language pathologists should have a separate provider number 
     was raised in order to better report more accurately on the 
     bill's quality reporting program. The House urges CMS to 
     investigate this issue in order to promote quality 
     initiatives.
     Section 202. Payment for administration of part D vaccines

     Current law
       Medicare Part B covers pneumoccoccal vaccine and its 
     administration, influenza vaccine and its administration, and 
     hepatitis B vaccine and its administration when furnished to 
     a high or intermediate risk individual. Medicare Part D 
     covers other vaccines licensed under the Public Health 
     Service Act.
     Explanation of provision
       The provision specifies that during 2007, the costs of 
     administering Part D vaccines will be paid under Part B, as 
     if it were the administration of a hepatitis B vaccine. 
     Beginning in 2008, Part D coverage will include the 
     administration costs.
     Reason for change
       CMS has chosen not to reimburse providers for administering 
     vaccines that are covered under the new Medicare prescription 
     drug benefit (Part D). If doctors and their staff are not 
     being paid to provide these vaccines, it will undoubtedly 
     create access problems to these important preventive 
     medicines. This provision ensures that providers will be paid 
     for their services through Part B funds in 2007 and through 
     Part D thereafter.
     Section 203. OIG study of never events

     Current law
       No provision.
     Explanation of provision
       The Office of the Inspector General (OIG) in the Department 
     of Health and Human Services would be required to conduct a 
     study on the incidence of never events for Medicare 
     beneficiaries, including types of such events and payments by 
     any party, including beneficiaries, of such events. This 
     study would also include the extent to which Medicare paid, 
     denied or recouped payment for such services as well as the 
     administrative process of the Centers for Medicare and 
     Medicaid Services (CMS) to identify such events and to deny 
     or recoup associated payments. The OIG would be required to 
     audit a representative sample of claims and medical records 
     of the events; would be able to request access to claims and 
     records from any Medicare contractor; and would not be able 
     to release individually identifiable or facility specific 
     information. The OIG would be required to submit a report to 
     The House no later than two years from enactment. This report 
     would include recommendations for legislative or 
     administrative action on the processes to identify, deny or 
     recoup payments for never events, the potential process for 
     public disclosure of never events which ensure patient 
     privacy and permit the use of disclosed information for root 
     cause analysis. $3 million of funds in the Treasury will be 
     appropriated which will be available until January 1, 2010. 
     Never event are those that are listed and endorsed as 
     ``serious reportable events'' by the National Quality Forum 
     as of November 16, 2006.
     Reason for change
       This would provide useful information on serious adverse 
     medical events where a patient was harmed but the Medicare 
     program nevertheless reimbursed the facility where the 
     serious injury occurred.
     Section 204. Medicare medical home demonstration project

     Current law
       No provision.
     Explanation of provision
       The Secretary is required to establish a medical home 
     demonstration project in Medicare law for the purpose of 
     redesigning the healthcare delivery system to provide 
     targeted, accessible, continuous and coordinated, family-
     centered care to high-need populations (i.e., those with 
     multiple chronic illnesses that require regular monitoring, 
     advising, or treatment).
       Under the project, case management fees would be paid to 
     personal physicians, and incentive payments would be paid to 
     physicians participating in practices that provide ``medical 
     home'' services. Medical homes are physician practices in 
     charge of targeting beneficiaries for project participation. 
     They are responsible for: (1) providing safe and secure 
     technology to promote patient access to personal health 
     information; (2) developing a health assessment tool for the 
     targeted individuals; and (3) providing training for 
     personnel involved in the coordination of care.
       The project is to operate for three years in urban, rural, 
     and underserved areas in up to 8 states and would include 
     physician practices with fewer than three full-time 
     equivalent physicians, as well as larger practices, 
     particularly in rural and underserved areas.
       In addition to meeting Medicare requirements for 
     physicians, personal physicians who provide first contact and 
     continuous care for their patients must be board certified. 
     Personal physicians must also have staff and resources to 
     manage the comprehensive and coordinated health care of each 
     of their patients. Participating physicians may be 
     specialists or subspecialists for patients requiring ongoing 
     care for specific conditions, multiple chronic conditions, 
     (e.g., severe asthma, complex diabetes, cardiovascular 
     disease, and rheumatologic disorder) or for those with a 
     prolonged illness.
       Personal physicians must perform (or provide for the 
     performance of): (1) advocates for and provides ongoing 
     support, oversight, and guidance to implement a plan of care; 
     that provides an integrated, coherent, cross discipline plan 
     for ongoing medical care developed in partnership with 
     patients and including all other physicians furnishing care 
     to the patient involved and other appropriate medical 
     personnel or agencies (such as home health agencies); (2) 
     uses evidence-based medicine and clinical decision support 
     tools to guide decision-making at the point-of-care (based on 
     patient-specific factors); (3) uses health information 
     technology that may include remote monitoring and patient 
     registries; and (4) encourages patients to engage in 
     management of their own health through education and support 
     systems.
       Payments for care management to personal physicians are to 
     be provided under a care management fee under Section 1848 of 
     the Social Security Act. The Secretary would be required to 
     develop a care management fee code and a value for these 
     payments using the relative value scale update committee 
     (RUC) process.
       Payments for a medical home shall be based on the payment 
     methodology applied to physician group practices under 
     section 1866A of the Social Security Act. Under this 
     methodology, 80 percent of Medicare reductions (determined by 
     using assumptions with respect to the reductions in the 
     occurrence of health complications, hospitalization rates, 
     medical errors, and adverse drug reactions) resulting from 
     the medical home participation (as reduced by the total 
     project-related care management fees), would be paid to the 
     medical home. Project payments are to be paid from Part B.
       The Secretary would be required to provide a yearly project 
     evaluation and submit it to The House on a date specified by 
     the Secretary. In addition, the Secretary would be required 
     to submit to The House a project evaluation no later than one 
     year after project completion.
     Reason for change
       The proposal tests the effectiveness of the medical home 
     model to provide targeted and coordinated care to patients 
     suffering from one or more chronic conditions. A personal 
     physician and physician practice work together to manage 
     these patients.
     Section 205. Medicare DRA technical corrections
       (a) PACE clarification
     Current law
       The House appropriated $10 million for FY2006 for the 
     outlier funds for rural Program of All-Inclusive Care for the 
     Elderly (PACE) providers. Outlier costs are those inpatient 
     and other costs in excess of $50,000 incurred within a given 
     12-month period by a PACE provider for an eligible 
     participant who resides in a rural area. These appropriated 
     funds would remain available for expenditure through FY2010.
     Explanation of provision
       The provision clarifies that the appropriated $10 million 
     would be applied to fiscal years 2006 through 2010, rather 
     than only for FY2006. It also specifies that the funds would 
     remain available for obligation, rather than for expenditure, 
     through FY2010.
     Reason for change
       CMS has issued the start-up grants but cannot obligate the 
     outlier payments yet because CMS does not know to whom the 
     outlier payments will be distributed.
       (b) Miscellaneous technical corrections
       (1) Correction of Margin (Section 5001)
     Current law
       No provision.
     Explanation of provision
       Section 1886(b)(3)(B) of the Social Security Act (42 U.S.C. 
     1395ww(b)(3)(B)), as amended by section 5001(a) of the 
     Deficit Reduction Act of 2005 (Public Law 109-171), is 
     amended by moving clause (viii) (including subclauses

[[Page 23194]]

     (I) through (VII) of such clause) 6 ems to the left.
       (2) Reference Correction (Section 5114)
     Current law
       P.L. 109-171 provision modified the first sentence of 
     Section 1842(b)( 6)(F) of the Social Security Act to add a 
     new paragraph H to 1842(b)(6) so that a federally qualified 
     health center (FQHC) would be paid directly for FQHC services 
     provided by a health care professional under contract with 
     that FQHC.
     Explanation of provision
       Instead of modifying Section 1842(b)(6)(F) to add paragraph 
     H, the amendment would modify Section 1842(b)(6) of the 
     Social Security Act.
       (c) Effective date
       These amendments would become effective as if they had been 
     included in DRA 2005, enacted on February 8, 2006.
     Section 206. Limited continuous open enrollment of original 
         Medicare fee-for-service enrollees into Medicare 
         Advantage non-prescription drug plans

     Current law
       Since the inception of Medicare Part C, beneficiaries had 
     been allowed to enroll into and/or disenroll from Medicare 
     Advantage (MA) plans on a monthly basis throughout the year. 
     Beneficiaries were able to change plans as often as they 
     wanted because The House had delayed (on three occasions) a 
     provision, that locked Medicare beneficiaries into their plan 
     choice after their enrollment period ended. However, since 
     The House has not further delayed its implementation, the 
     lock-in began to take affect on July 1, 2006.
     Explanation of provision
       This provision allows Medicare beneficiaries who are 
     enrolled in traditional fee-for-service but not enrolled in a 
     prescription drug plan to enroll in a Medicare Advantage plan 
     that does not offer drug coverage after their enrollment 
     period ended. These beneficiaries would be allowed to make 
     this change once during the year, after their enrollment 
     period had ended. This provision would sunset in two years.
     Reason for change
       This provision, allows qualified beneficiaries to enroll in 
     certain MA plans throughout the year.

             Title III--Medicare Program Integrity Efforts

     Section 301. Offsetting adjustment in Medicare Advantage 
         Stabilization Fund

     Current law
       The Medicare Prescription Drug, Improvement, and 
     Modernization Act (MMA) of 2003 established a stabilization 
     fund to provide incentives for plans to enter into and to 
     remain in the Medicare Advantage (MA) regional program. Money 
     in the fund is available to the Secretary for expenditures 
     from January 1, 2007 to December 31, 2013.
       Initially $10 billion is to be provided to the 
     stabilization fund and additional amounts are to be added to 
     the fund from a portion of any average per capita monthly 
     savings amounts. The Secretary is responsible for determining 
     the amounts that may be given to MA plans from this fund, 
     based on statutory requirements. For example, the national 
     bonus payment will be available to an MA organization that 
     offers an MA regional plan in every MA region in the year, 
     but only if there was no national plan in the previous year.
     Explanation of provision
       This provision would delay the initial availability of the 
     stabilization fund until January 1, 2012, and reduce the 
     amount of the fund to $3.5 billion.
     Reason for change
       The payment changes made by the MMA have strengthened the 
     MA program, thereby increasing enrollment in, and 
     availability of, MA plans. In 2003, just 54 percent of 
     seniors had access to an MA plan. Today, nearly 100 percent 
     of beneficiaries have access to at least two MA plans and the 
     average county provides seniors with a choice of 12 MA plans. 
     Attracting plans to the MA program today is not an issue. The 
     stabilization fund has been rendered unnecessary under the 
     current payment system.
     Section 302. Extension and expansion of recovery audit 
         contractor program under the Medicare Integrity Program
       (a) Use of recovery audit contractors
     Current law
       The Medicare Prescription Drug, Improvement, and 
     Modernization Act of 2003 (P.L. 108-73) authorized a 3-year 
     demonstration project using recovery audit contractors to 
     identify both under and overpayments made to Part A & B 
     Medicare providers and recoup overpayments in the Medicare 
     program. The demonstration is being conducted as part of the 
     Medicare Integrity Program, created by Section 1893 of the 
     Social Security Act, which enables the Secretary to enter 
     into contracts with entities to carry out a range of 
     activities designed to prevent health care fraud and abuse in 
     Parts A & B of the Medicare program. The Medicare Integrity 
     Program was established by the Health Insurance Portability 
     and Accountability Act of 1996 along with the Health Care 
     Fraud and Abuse Control Program. The program is financed via 
     the Federal Hospital Insurance Trust Fund.
     Explanation of provision
       Section 302 would allow the Centers for Medicare and 
     Medicaid Services (CMS) to continue using recovery audit 
     contractors to identify both under and overpayments made 
     under Medicare Parts A & B and recoup any overpayments made 
     to providers. To pay the contractors, the Secretary would be 
     required to use only those funds recovered by the 
     contractors. From these recoveries, the bill would require 
     the Secretary to pay the contractors in two ways: (1) on a 
     contingent basis for collecting overpayments; and (2) in 
     amounts that the Secretary may specify for identifying 
     underpayments. A portion of the recovered funds to the CMS 
     program management account would be available for activities 
     conducted under the recovery audit contractor program. Any 
     remaining recovered amounts--those recoveries that are not 
     paid to the contractors or applied to the CMS program 
     management account--would be used to reduce expenditures 
     under Medicare Parts A & B. Each contract would be required 
     to provide that audit and recovery activities be conducted 
     during the fiscal year and retrospectively for not more than 
     4 fiscal years. The Secretary would be allowed to waive 
     Medicare statutory provisions to pay for the services of the 
     recovery audit contractors.
       By January 1, 2010, the Secretary would be required to 
     contract with enough recovery audit contractors to cover 
     Medicare activities in all states. When awarding contracts, 
     the Secretary would be required to contract only with 
     recovery audit contractors that have the staff with the 
     appropriate clinical knowledge of and experience with 
     Medicare payment rules and regulations, or recovery audit 
     contractors that will contract with another entity that has 
     the staff with the appropriate knowledge of and experience 
     with Medicare payment rules and regulations. The Secretary 
     shall give preference to entities with more than three years 
     direct management experience and a demonstrated proficiency 
     in audits with private insurers, health care providers, 
     health plans, or state Medicaid programs. Recovery audit 
     contractors cannot be fiscal intermediaries, carriers, or 
     Medicare Administrative Contractors, and the recovery of 
     overpayments by these contractors would not prohibit the 
     Secretary or the Attorney General from prosecuting 
     allegations of fraud and abuse arising from these 
     overpayments.
       Finally, the Secretary would be required to submit a report 
     to The House annually on the use of these recovery audit 
     contractors. Specifically the report would include 
     information on the performance of these contractors as it 
     relates to identifying over and underpayments and in 
     collecting overpayments. The report would also be required to 
     include an evaluation of the comparative performance of these 
     contractors and any Medicare savings that have accrued as a 
     result of their activities.
       (b) Access to Coordination of Benefits Contractor Database
     Current law
       The Coordination of Benefits (COB) Contractor consolidates 
     the activities that support the collection, management, and 
     reporting of other insurance coverage for Medicare 
     beneficiaries. The purposes of the COB program are to 
     identify the health benefits available to a Medicare 
     beneficiary and to coordinate the payment process to prevent 
     mistaken payment of Medicare benefits.
     Explanation of provision
       For the purpose of carrying out their audit and recovery 
     activities, the Secretary of HHS would provide recovery audit 
     contractors with access to the database of the Coordination 
     of Benefits Contractors of the Centers for Medicare and 
     Medicaid Services during the current fiscal year and for a 
     period of up to 4 fiscal years prior to the current fiscal 
     year.
       (c) Conforming Amendments to Current Demonstration Project
     Current law
       Section 306 of the Medicare Prescription Drug, Improvement, 
     and Modernization Act of 2003 requires that the Secretary's 
     demonstration project using recovery audit contractors last 
     for no longer than three years. After the completion of the 
     program, the Secretary shall submit to The House a report on 
     the project and its impact on savings to the Medicare 
     program.
     Explanation of provision
       The provision would continue the use of recovery audit 
     contractors until all contracts could be entered into. The 
     provision would also eliminate the requirement that the 
     Secretary submit to The House a report not later than 6 
     months after the project's completion on the impact of 
     recovery audit contractors' activities on Medicare savings.
     Reason for change
       Recovery audit contractors provide a valuable service in 
     identifying and recovering improper payments in the Medicare 
     program. The services provided by these auditors are highly 
     skilled and specialized, and were never utilized by the 
     Medicare program prior to the current demonstration. The 
     results of the demonstration document that significant 
     amounts of funds have been returned to Medicare, and are 
     expected to be

[[Page 23195]]

     returned to the program in the future. In fact, the 
     Congressional Budget Office expects that this program would 
     reduce net Medicare spending--that is, recoveries of 
     overpayments would exceed the payments to contractors, 
     program management costs, and outlays to correct 
     underpayments. Based on the results of the demonstration, 
     extension and national expansion of the recovery audit 
     program will result in the return of substantial funds to 
     Medicare in an efficient and cost effective manner.
     Section 303. Funding for the Health Care Fraud and Abuse 
         Control Account
       (a) Departments of Health and Human Services and Justice
     Current law
       The Health Insurance Portability and Accountability Act of 
     1996 (HIPAA, P.L. 104-91) established section 1128C of the 
     Social Security Act, which authorized the creation of a 
     national health care fraud and abuse control program headed 
     by the Secretary of HHS and the Attorney General. In Section 
     1817(k) of the Social Security Act, HIPAA created an 
     expenditure account within the Medicare Federal Hospital 
     Insurance Trust Fund called the Health Care Fraud and Abuse 
     Control (HCFAC) Account. Within the HFCFAC account, the 
     legislation appropriated funds to HHS and DOJ at an amount of 
     $104 million in FY97 and for FY98 through FY03 at annual 
     increases of 15 percent above the preceding year. For each 
     fiscal year after 2003, the annual appropriation available to 
     HHS and DOJ was to be capped at the FY 2003 level of $240.6 
     million. The legislation also established a separate funding 
     stream within the HCFAC account to support activities 
     undertaken by the FBI. Funding for the FBI was increased from 
     $47 million in FY97 to $114 million in FY03. The legislation 
     capped FBI funding at the FY03 level for FY03 and beyond.
     Explanation of provision
       Section 303 would extend appropriations for the Health Care 
     Fraud and Abuse Control Program through FY06 and beyond. For 
     FY98 through FY03, the annual appropriation to HHS and DOJ is 
     the limit for the preceding fiscal year increased by 15 
     percent. This bill would extend the annual appropriation for 
     FY04 through FY06 to the FY03 level. For fiscal years 2007 
     through 2010, the annual appropriation would be the limit for 
     the preceding year plus the percentage increase in the 
     consumer price index for all urban consumers. For each fiscal 
     year beyond 2010, the legislation would cap the appropriation 
     at the FY10 level.
       For the Office of the Inspector General of HHS, Section 303 
     would extend the annual appropriation of $160 million through 
     FY06. For FY07, the bill would increase the FY06 
     appropriation to OIG by the percentage increase in the 
     consumer price index. For fiscal years 2008, 2009, and 2010, 
     the annual appropriation would increase by the limit for the 
     preceding year plus the percentage increase in the consumer 
     price index for all urban consumers. For each fiscal year 
     after FY10, the legislation would cap the appropriation at 
     the FY10 level.
     Reason for change
       Funding levels are capped under law, and increased funding 
     will be provided to continue activities covered by the HCFAC 
     Account to help combat waste, fraud and abuse.
       (b) Federal Bureau of Investigations
     Current law
       The Health Insurance Portability and Accountability Act of 
     1996 (HIPAA, P.L. 104-91) established section 1128C of the 
     Social Security Act, which authorized the creation of a 
     national health care fraud and abuse control program headed 
     by the Secretary of HHS and the Attorney General. In Section 
     1817(k) of the Social Security Act, HIPAA created an 
     expenditure account within the Medicare Federal Hospital 
     Insurance Trust Fund called the Health Care Fraud and Abuse 
     Control (HCFAC) Account. Within the HFCFAC account, the 
     legislation appropriated funds to HHS and DOJ at an amount of 
     $104 million in FY97 and for FY98 through FY03 at annual 
     increases of 15 percent above the preceding year. For each 
     fiscal year after 2003, the annual appropriation available to 
     HHS and DOJ was to be capped at the FY 2003 level of $240.6 
     million. The legislation also established a separate funding 
     stream within the HCFAC account to support activities 
     undertaken by the FBI. Funding for the FBI was increased from 
     $47 million in FY97 to $114 million in FY03. The legislation 
     capped FBI funding at the FY03 level for FY03 and beyond.
     Explanation of provision
       Section 303 would extend the annual appropriation to the 
     Federal Bureau of Investigations (FBI). For fiscal years 2003 
     through 2006, the annual appropriation to the FBI for fraud 
     and abuse activities would be capped at the FY02 level of 
     $114 million. For fiscal years 2007 through 2010, the annual 
     appropriation would be the limit for the preceding year plus 
     the percentage increase in the consumer price index for all 
     urban consumers. For each fiscal year after 2010, the 
     legislation would cap the appropriation at the FY2010 level.
     Reason for change
       Funding levels are capped under law, and increased funding 
     will be provided to continue activities covered by the HCFAC 
     Account.
     Section 304. Implementation funding
     Current law
       No current law.
     Explanation of provision
       For implementation of provisions and amendments made by 
     this title and titles I and II of this division, other than 
     the section requiring the Inspector General in the Department 
     of Health and Human Services to conduct a study of never 
     events, the provision would require the Secretary of Health 
     and Human Services to transfer $45,000,000 to the CMS Program 
     Management Account for FY2007 and FY2008, from the Federal 
     Hospital Insurance Trust Fund, and the Federal Supplementary 
     Medical Insurance Trust, in appropriate proportions.

             Title IV--Medicaid and Other Health Provisions

     Section 401. Extension of Transitional Medical Assistance 
         (TMA) and Abstinence Education Program

     Current law
       States are required to continue Medicaid benefits for 
     certain low-income families who would otherwise lose coverage 
     because of changes in their income. This continuation is 
     known as transitional medical assistance (TMA). Federal law 
     permanently requires four months of TMA for families who lose 
     Medicaid eligibility due to increased child or spousal 
     support collections, as well as those who lose eligibility 
     due to an increase in earned income or hours of employment. 
     The House expanded work-related TMA under Section 1925 of the 
     Social Security Act in 1988, requiring states to provide TMA 
     to families who lose Medicaid for work-related reasons for at 
     least six, and up to 12, months. The sunset date for Section 
     1925 has been extended a number of times, most recently 
     through December 31, 2006 by the Deficit Reduction Act of 
     2005.
       Under Section 510 of the Social Security Act, federal law 
     appropriated $50 million annually for each of the fiscal 
     years 1998-2003 for matching grants to states to provide 
     abstinence education and, at state option, mentoring, 
     counseling, and adult supervision to promote abstinence from 
     sexual activity, with a focus on groups that are most likely 
     to bear children out-of-wedlock. Funds must be requested by 
     states when they apply for Maternal and Child Health Services 
     (MCH) Block Grant funds and must be used exclusively for the 
     teaching of abstinence. States must match every $4 in federal 
     funds with $3 in state funds.
       A state's allotment of abstinence education block grant 
     program funding is based on the proportion of low-income 
     children in the state as compared to the national total. 
     Funding for the abstinence education block grant has been 
     extended a number of times, most recently through December 
     31, 2006 by the Deficit Reduction Act of 2005.
     Explanation of provision
       The provision would extend TMA under Section 1925 of the 
     Social Security Act through June 30, 2007. It would also fund 
     the abstinence education block grant program through June 30, 
     2007 at the level provided through the third quarter of 
     FY2006.
     Section 402. Grants for research on vaccine against Valley 
         Fever

     Current law
       Under existing National Institutes of Health (NIH) 
     authority, the National Institute on Allergy and Infectious 
     Diseases has supported projects to study coccidioidomycosis, 
     known as Valley Fever. Grants have included projects to study 
     the organism that causes Valley Fever; to improve the ability 
     to evaluate vaccine candidates; to support the clinical 
     development of potential drug therapies; and to support 
     acquisition of equipment and facilities for research on the 
     disease, among others.
     Explanation of provision
       The Secretary is required to conduct research on the 
     development of a vaccine against coccidioidomycosis, known as 
     Valley Fever. Grants may not be made on or after October 1, 
     2012. This does not have any legal effect on payments for 
     grants for which amounts appropriated under this section were 
     obligated prior to October 1, 2012.
       To carry out this section, $40 million is authorized for 
     fiscal years 2007-2012.
     Section 403. Change in Threshold for Medicaid Indirect Hold 
         Harmless Provision of Broad-Based Health Care Taxes

     Current law
       Under federal law and regulations, a state's ability to use 
     provider-specific taxes to fund their state share of Medicaid 
     expenditures is limited. If states establish provider-
     specific taxes, those taxes cannot generally exceed 25 
     percent of the state (or non-federal) share of Medicaid 
     expenditures and the state cannot provide a guarantee to the 
     providers that the taxes will be returned to them. However, 
     there is what is referred to as a ``safe harbor.'' If the 
     taxes returned to a provider are less than 6 percent of the 
     provider's revenues, the prohibition on guaranteeing the 
     return of tax funds is not violated. Those taxes do not have 
     to undergo the process, defined in section 433.68 of Title 42 
     of the

[[Page 23196]]

     Code of Federal Regulations, of determining if a guarantee 
     exists. As a result, a state could impose a provider tax of 6 
     percent of revenues, return those revenues right back to 
     those providers in the form of a Medicaid ``payment'' and 
     receive a federal match for those amounts. In effect, the 
     state has temporarily borrowed funds from the provider to 
     receive additional federal funds. The President's FY2006 
     budget proposes to phase the 6 percent ``safe harbor'' for 
     provider taxes down to 3 percent although no new regulation 
     has been issued on this subject to date.
     Explanation of provision
       For the fiscal periods beginning on or after January 1, 
     2008 and ending before October 1, 2011, the ``safe harbor'' 
     percentage would be reduced from 6 percent to 5.5 percent.
     Section 404. DSH allotments for fiscal year 2007 for 
         Tennessee and Hawaii
       (A) Tennessee
     Current law
       Tennessee operates its Medicaid program under a 
     comprehensive statewide waiver, the terms and conditions of 
     which have been negotiated by the state and CMS. Medicaid 
     demonstration waivers, authorized under Section 1115 of the 
     Social Security Act, allow states a great deal of flexibility 
     on how eligibility for Medicaid is determined, how Medicaid 
     services are provided, and what those services are comprised 
     of. States operating under a waiver are subject to a budget 
     neutrality requirement intended to hold program spending 
     under the waiver to estimates of amounts that would have been 
     spent in the absence of the waiver. Because Tennessee 
     receives its Medicaid funds under the provisions of the 
     waiver, it does not receive federal matching for Medicaid 
     payments to disproportionate share (DSH) hospitals nor do 
     they receive an allotment for DSH payments (state by state 
     allotments are calculated based on a formula in Medicaid law 
     and represent a federal cap on the amount that the federal 
     government will provide in DSH matching payments to any 
     state.) DSH payments, however, continue to be counted as a 
     component in Tennessee's budget neutrality calculation since, 
     in the period prior to the waiver approval, the state was 
     required to make DSH payments, and if the waiver had not been 
     granted, the requirement to make those payments would 
     continue to have applied.
     Explanation of provision
       The provision would establish a DSH allotment for the state 
     of Tennessee for fiscal year 2007 equal to the greater of the 
     amount that is reflected in the budget neutrality provision 
     for the TennCare demonstration year ending in 2006 and $280 
     million. Federal matching payments to the state for DSH 
     hospitals for fiscal year 2007 would, however, be limited to 
     one-third of the DSH allotment. Those amounts would be 
     considered TennCare project expenditures and would be 
     subtracted from TennCare demonstration payments for Essential 
     Access Hospital supplemental pool payments. The sum of the 
     DSH payments and the Essential Access Hospital supplemental 
     pool payments would be prohibited from exceeding the 
     allotment amount. The state would be permitted to submit a 
     state plan amendment describing the methodology to be used to 
     identify DSH hospitals and to make payments to such 
     hospitals.
       (B) Hawaii
     Current law
       Like Tennessee, Hawaii operates its Medicaid program under 
     a statewide waiver, the terms and conditions of which have 
     been negotiated by the state and CMS. The state does not make 
     DSH payment under their waiver program and does not have a 
     DSH allotment in Medicaid law.
     Explanation of provision
       The provision would set a DSH allotment for Hawaii for 
     fiscal year 2007 at $10 million. The Secretary shall permit 
     Hawaii to submit an amendment to its State plan under this 
     title that describes the methodology to be used by the State 
     to identify and make payments to disproportionate share 
     hospitals, including children's hospitals and institutions 
     for mental diseases or other mental health facilities. The 
     Secretary may not approve such plan amendment unless the 
     methodology described in the amendment is consistent with the 
     requirements under this section for making payment 
     adjustments to disproportionate share hospitals.
     Section 405. Certain Medicaid DRA technical corrections
       (a) Technical corrections relating to State option for 
           alternative premiums and cost sharing (Sections 6041 
           through 6043)
     Current law
       P.L. 109-171 allows states to impose premiums and cost-
     sharing for any group of individuals for any type of service 
     (except prescribed drugs which are treated separately), 
     through Medicaid state plan amendments (rather than waivers), 
     subject to specific restrictions. Preferred drugs are defined 
     as those that are the least (or less) costly effective 
     prescription drugs within a class of drugs (as defined by the 
     state). Premium and cost-sharing rules for workers with 
     disabilities were not changed in P.L. 109-171.
       Individuals in families with income below 100% of the 
     federal poverty line (FPL). Premiums and service-related 
     cost-sharing imposed under this option are allowed to vary 
     among classes or groups of individuals, or types of service. 
     Explicit rules are provided by income level for those with 
     income between 100-150% FPL and for those with income over 
     150% FPL.
       States are allowed to condition the provision of medical 
     assistance on the payment of premiums, and to terminate 
     Medicaid eligibility on the basis of failure to pay a premium 
     if that failure continues for at least 60 days. States may 
     apply this provision to some or all groups of beneficiaries, 
     and may waive premium payments in cases where such payments 
     would be an undue hardship. In addition, the provision allows 
     states to permit providers participating in Medicaid to 
     require a Medicaid beneficiary to pay authorized cost-sharing 
     as a condition of receiving care or services. Providers may 
     be allowed to reduce or waive cost-sharing amounts on a case-
     by-case basis.
       For the purposes of cost-sharing, two income-related groups 
     are identified: (1) individuals in families with income 
     between 100 and 150% FPL, and (2) individuals in families 
     with income over 150% FPL. For both groups, the total 
     aggregate amount of all cost-sharing (including special cost-
     sharing rules for prescribed drugs and emergency room 
     copayments for non-emergency care) cannot exceed 5% of family 
     income as applied on a quarterly or monthly basis as 
     specified by the state.
       Treatment of non-preferred drug cost-sharing. Special cost-
     sharing for prescribed drugs is subject to the general 5% 
     aggregate cap on cost-sharing for individuals with income 
     between 100-150% FPL and for individuals with income over 
     150% FPL who are not otherwise exempt from service-related 
     cost-sharing.
       Treatment of non-emergency cost-sharing. Individuals exempt 
     from premiums or service-related cost-sharing under other 
     provisions of P.L. 109-171 may be subject to nominal 
     copayments for non-emergency services in an ER, only when no 
     cost-sharing is imposed for care in hospital outpatient 
     departments or by other alternative providers in the area 
     served by the hospital ER. For non-exempt populations with 
     income between 100-150% FPL, cost-sharing for non-emergency 
     services in an ER cannot exceed twice the nominal amounts. 
     For non-exempt populations with income exceeding 150% FPL, no 
     cost-sharing limit is specified for non-emergency care in an 
     ER. Aggregate caps on cost-sharing (described above) still 
     apply.
       Definition of non-emergency services. The term ``non-
     emergency services'' means any care or services furnished in 
     an emergency department of a hospital that the physician 
     determines do not constitute an appropriate medical screening 
     examination or stabilizing examination and treatment required 
     to be provided by the hospital under Medicare law (Section 
     1867 of the Social Security Act).
       Exemption from cost-sharing for newly eligible children 
     with disabilities. Section 6062 of P.L. 109-171 created a new 
     optional Medicaid eligibility group for children with 
     disabilities under age 19 who meet the severity of disability 
     required under the Supplemental Security Income program (SSI) 
     without regard to any income or asset eligibility 
     requirements applicable under SSI for children, and whose 
     family income does not exceed 300% FPL. (States can exceed 
     300% FPL, without federal matching funds for such coverage.) 
     Special premium and cost-sharing rules apply to this new 
     group of eligibles.
     Explanation of provision
       The definition of preferred drugs would be amended to 
     include those that are the most (or more) cost effective 
     prescription drugs within a class of drugs (as defined by the 
     state). In addition to separate cost-sharing provisions for 
     prescribed drugs, the amendment would clarify that separate 
     cost-sharing provisions also apply to nonemergency services 
     provided in an emergency room.
       Individuals in families with income below 100% of the 
     federal poverty line (FPL). The amendment would exempt from 
     the general cost-sharing rules in new Section 1916A (a) all 
     individuals in families with income below 100% of the federal 
     poverty line (FPL). However, Section 1916 of Title XIX 
     (nominal cost-sharing provisions) would still apply to this 
     income group, as would the comparability rule regarding 
     amount, duration and scope of available benefits (Section 
     1902(a)(10)(B)). States would still have the option to impose 
     the special cost-sharing rules for prescribed drugs and non-
     emergency care provided in an emergency room to individuals 
     in families with income below 100% FPL.
       The amendment would exempt individuals in families with 
     income below 100% FPL from the provisions defining 
     enforceability of premiums and other cost-sharing. 
     Protections regarding payment of premiums and cost-sharing in 
     Section 1916(c)(3) and Section 1916(e) would continue to 
     apply to this income group.
       The amendment would apply the total aggregate cap of 5% of 
     family income to individuals in families with income below 
     100% FPL for applicable cost-sharing with respect to nominal 
     amounts (as defined in Section 1916), and prescribed drugs 
     and emergency room copayments for non-emergency care (as 
     defined in new Sections 1916A(c) and 1916A(e)).
       Treatment of non-preferred drug cost-sharing. The amendment 
     would clarify that no cost-

[[Page 23197]]

     sharing for preferred drugs can be imposed on individuals 
     exempt from service-related cost-sharing under the general 
     cost-sharing provisions (identified in new Section 1916A(a)). 
     It would also clarify that no more than nominal cost-sharing 
     amounts may be imposed for non-preferred drugs on individuals 
     exempt from services-related cost-sharing under the general 
     cost-sharing provisions.
       Treatment of non-emergency cost-sharing. The amendment 
     would clarify that for non-exempt persons with income between 
     100-150 percent FPL, cost-sharing for nonemergency care in an 
     ER may not exceed twice the applicable nominal amount (up to 
     the 5 percent aggregate cap). For persons with income below 
     100 percent FPL or who are exempt from service-related cost-
     sharing, cost-sharing for non-emergency care in an ER may not 
     exceed the applicable nominal amount when no cost-sharing is 
     imposed by the outpatient department or alternative 
     providers. The 5 percent aggregate cap on all service-related 
     costsharing for all income groups remains in effect.
       Definition of non-emergency services. The amendment would 
     strike the phrase ``the physician determines'' from the 
     definition of non-emergency services as provided in P.L. 109-
     171.
       Exemption from cost-sharing for newly eligible children 
     with disabilities. The amendment would exempt this new 
     optional eligibility group for children with disabilities 
     established under P.L. 109-171 from the premium and service-
     related costsharing rules under new Section 1916A.
       Correction of IV-B References. Among the groups explicitly 
     exempted from the general cost-sharing provisions for 
     premiums and cost-sharing, the amendment would change 
     references to Title IV-B to mean child welfare services made 
     available under Title IV-B on the basis of being a child in 
     foster care.
       Effective Date. The amendment specifies that all changes 
     made by this amendment are effective as if included in the 
     affected sections and subsections of P.L. 109-171.
       (b) Clarifying Treatment of Certain Annuities (Section 
           6012)
     Current law
       Under Section 6012(b) of P.L. 109-171, the purchase of an 
     annuity is treated as a disposal of an asset for less than 
     fair market value unless certain criteria are met. One of 
     these criteria is that the state be named as the remainder 
     beneficiary in the first position for at least the total 
     amount of Medicaid expenditures paid on behalf of the 
     annuitant or be named in the second position after the 
     community spouse or minor or disabled child and such spouse 
     or a representative of such child does not dispose of any 
     such remainder for less than fair market value.
     Explanation of provision
       The provision would strike the term ``annuitant'' and 
     replace it with ``institutionalized individual.'' This change 
     would become effective as if it had been included in DRA 
     2005, enacted on February 8, 2006.
       (c) Additional Miscellaneous Technical Corrections
       (1) Documentation (Section 6036)
     Current law
       Under Section 6036 of P.L. 109-171, states are prohibited 
     from receiving federal Medicaid reimbursement for an 
     individual who has not provided satisfactory documentary 
     evidence of citizenship or nationality. Documents that 
     provide satisfactory evidence are described in the law, as 
     are exceptions to the documentation requirement.
       Section 6036(a)(2) of the law specifies that the 
     documentation requirements do not apply to an alien who is 
     eligible for Medicaid:
       And is entitled to or enrolled for Medicare benefits;
       On the basis of receiving Supplemental Security Income 
     (SSI) benefits; or
       On such other basis as the Secretary may specify that 
     satisfactory documentary evidence had been previously 
     presented.
       The provision applies to initial determinations and to 
     redeterminations of eligibility for Medicaid made on or after 
     July 1, 2006.
     Explanation of provision
       The provision would specify that the documentation 
     requirements do not apply to an individual declaring to be a 
     citizen or national of the United States who is eligible for 
     Medicaid:
       And is entitled to or enrolled for Medicare benefits;
       And is receiving (1) Social Security benefits on the basis 
     of a disability or (2) SSI benefits;
       And with respect to whom (1) child welfare services are 
     made available under Title IV-B of the Social Security Act or 
     (2) adoption or foster care assistance is made available 
     under Title IV-E; or
       On such basis as the Secretary may specify that 
     satisfactory documentary evidence has been previously 
     presented.
       The provision would also make reference corrections. These 
     changes would be effective as if included in the Deficit 
     Reduction Act of 2005.
       In addition, effective 6 months after enactment, the 
     provision would (1) require states to have procedures in 
     effect for verifying the citizenship or immigration status of 
     children in foster care under the responsibility of the state 
     under Title IV-E or IV-B of the Social Security Act and (2) 
     specify that in reviews of state programs under IV-E and IV-
     B, the requirements subject to review shall include 
     determining whether the state program is in conformity with 
     the requirement to verify citizenship or immigration status.
       (2) Miscellaneous Technical Corrections
     Current law
       Section 5114(a)(2). This P.L. 109-171 provision modified 
     the first sentence of Section 1842(b)(6)(F) of the Social 
     Security Act to add a new paragraph H to 1842(b)(6) so that a 
     federally qualified health center (FQHC) would be paid 
     directly for FQHC services provided by a health care 
     professional under contract with that FQHC.
       Section 6003(b)(2). This P.L. 109-171 provision modified 
     Section 1927 of the Social Security Act by referencing 
     subsection (k) relating to Section 505(c) drugs.
       Section 6031(b), 6032(b), and 6035(c). These sections 
     referenced Section 6035(e) of P.L. 109-171, which does not 
     exist, to provide exceptions to effective dates.
       Section 6034(b). Section 6034 of P.L. 109-171 establishes 
     the Medicaid Integrity Program. It references modifications 
     made to the Social Security Act by Section 6033(a).
       Section 6036(b). Section 6036 of P.L. 109-171 deals with 
     improved enforcement of documentation requirements. Section 
     6036(b) references Section 1903(z) of the Social Security 
     Act. This section does not exist.
       Section 6015(a)(I). Section 6015 of P.L. 109-171 pertains 
     to continuing care retirement community admissions contracts. 
     It makes reference to clause (v) of Section 
     1919(c)(5)(A)(i)(II) of the Social Security Act.
     Explanation of provision
       Section 5114(a)(2). Instead of modifying Section 
     1842(b)(6)(F) to add paragraph H, the amendment would modify 
     Section 1842(b)(6) of the Social Security Act.
       Section 6003(b)(2). Instead of referencing subsection (k) 
     of Section 1927 of the Social Security Act, the amendment 
     would reference subsection (k)(1).
       Section 6031(b), 6032(b), and 6035(c). Instead of 
     referencing Section 6035(e), the amendment would reference 
     the effective date exception in Section 6034(e) of P.L. 109-
     171.
       Section 6034(b). Instead of referencing modifications made 
     by Section 6033(a) of P.L. 109-171, the amendment would 
     reference Section 6032(a).
       Section 6036(b). Instead of referencing Section 1903(z) of 
     the Social Security Act, the amendment would reference 
     Section 1903(x).
       Section 6015(a)(1). Instead of referencing clause (v) of 
     Section 1919(c)(5)(A)(i)(II) of the Social Security Act, the 
     amendment would reference subparagraph (B)(v).

  Mr. THOMAS. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered.
  There was no objection.
  The SPEAKER pro tempore. The question is on the amendment offered by 
the gentleman from Massachusetts (Mr. Markey).
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.


                             Recorded Vote

  Mr. MARKEY. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 and clause 9 of rule 
XX, this 15-minute vote on the motion to amend will be followed by 5-
minute votes on adoption of the motion to concur, if ordered; and the 
motion to suspend on H. Res. 1091.
  The vote was taken by electronic device, and there were--ayes 205, 
noes 207, not voting 20, as follows:

                             [Roll No. 532]

                               AYES--205

     Ackerman
     Allen
     Andrews
     Baca
     Baird
     Baldwin
     Barrow
     Bass
     Becerra
     Berkley
     Berman
     Berry
     Biggert
     Bishop (GA)
     Bishop (NY)
     Boehlert
     Boswell
     Boyd
     Bradley (NH)
     Brady (PA)
     Brown (OH)
     Brown, Corrine
     Brown-Waite, Ginny
     Butterfield
     Capps
     Capuano
     Cardin
     Cardoza
     Carnahan
     Carson
     Case
     Castle
     Chandler
     Clay
     Cleaver
     Clyburn
     Conyers
     Cooper
     Costa
     Costello
     Crowley
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (FL)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Dicks
     Dingell
     Doggett
     Doyle
     Emanuel
     Engel
     Eshoo
     Etheridge
     Farr
     Ferguson
     Filner
     Fitzpatrick (PA)
     Fossella
     Frank (MA)
     Gerlach
     Gordon
     Grijalva
     Gutierrez
     Harman
     Hastings (FL)
     Herseth
     Higgins
     Hinchey
     Hinojosa
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Johnson (IL)
     Johnson, E. B.
     Jones (OH)

[[Page 23198]]


     Kanjorski
     Kaptur
     Kelly
     Kennedy (RI)
     Kildee
     Kilpatrick (MI)
     Kind
     King (NY)
     Kucinich
     Kuhl (NY)
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Lipinski
     LoBiondo
     Lofgren, Zoe
     Lowey
     Lynch
     Maloney
     Markey
     Marshall
     Matsui
     McCarthy
     McCollum (MN)
     McDermott
     McGovern
     McHugh
     McIntyre
     McKinney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Michaud
     Millender-McDonald
     Miller (NC)
     Miller, George
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Owens
     Pallone
     Pascrell
     Pastor
     Payne
     Pelosi
     Peterson (MN)
     Platts
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Reynolds
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sabo
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sanders
     Saxton
     Schakowsky
     Schiff
     Schwartz (PA)
     Scott (GA)
     Scott (VA)
     Serrano
     Shays
     Sherman
     Simmons
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Smith (WA)
     Snyder
     Solis
     Spratt
     Stark
     Stupak
     Tanner
     Tauscher
     Taylor (MS)
     Thompson (CA)
     Tierney
     Towns
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Walsh
     Wasserman Schultz
     Waters
     Watt
     Waxman
     Weiner
     Wexler
     Woolsey
     Wu
     Wynn

                               NOES--207

     Abercrombie
     Aderholt
     Akin
     Alexander
     Bachus
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bean
     Beauprez
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonilla
     Bonner
     Bono
     Boozman
     Boren
     Boucher
     Boustany
     Brady (TX)
     Brown (SC)
     Burgess
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Carter
     Chabot
     Chocola
     Coble
     Cole (OK)
     Conaway
     Cramer
     Crenshaw
     Cubin
     Cuellar
     Culberson
     Davis (KY)
     Davis (TN)
     Davis, Tom
     Deal (GA)
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Drake
     Dreier
     Duncan
     Edwards
     Ehlers
     Emerson
     English (PA)
     Everett
     Feeney
     Flake
     Forbes
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Garrett (NJ)
     Gilchrest
     Gingrey
     Gohmert
     Gonzalez
     Goode
     Goodlatte
     Granger
     Graves
     Green (WI)
     Green, Al
     Green, Gene
     Gutknecht
     Hall
     Harris
     Hart
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hensarling
     Herger
     Hobson
     Hoekstra
     Hostettler
     Hulshof
     Hunter
     Hyde
     Inglis (SC)
     Issa
     Istook
     Jackson-Lee (TX)
     Jefferson
     Jenkins
     Jindal
     Johnson (CT)
     Johnson, Sam
     Keller
     Kennedy (MN)
     King (IA)
     Kingston
     Kirk
     Kline
     Knollenberg
     LaHood
     Latham
     LaTourette
     Leach
     Lewis (CA)
     Lewis (KY)
     Linder
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Matheson
     McCaul (TX)
     McCotter
     McCrery
     McHenry
     McKeon
     McMorris Rodgers
     Melancon
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moran (KS)
     Murphy
     Musgrave
     Myrick
     Neugebauer
     Northup
     Nunes
     Nussle
     Ortiz
     Osborne
     Pearce
     Pence
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Poe
     Pombo
     Porter
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Ramstad
     Regula
     Rehberg
     Reichert
     Renzi
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Royce
     Ryan (WI)
     Ryun (KS)
     Schmidt
     Schwarz (MI)
     Sekula Gibbs
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Sherwood
     Shimkus
     Shuster
     Smith (TX)
     Sodrel
     Souder
     Stearns
     Sullivan
     Tancredo
     Terry
     Thomas
     Thompson (MS)
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walden (OR)
     Wamp
     Weldon (FL)
     Weldon (PA)
     Weller
     Westmoreland
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (AK)
     Young (FL)

                             NOT VOTING--20

     Baker
     Blumenauer
     Burton (IN)
     Davis, Jo Ann
     Evans
     Fattah
     Ford
     Gallegly
     Gibbons
     Gillmor
     Jones (NC)
     Kolbe
     Norwood
     Otter
     Oxley
     Paul
     Strickland
     Sweeney
     Taylor (NC)
     Watson

                              {time}  1528

  Ms. GRANGER, Messrs. CAMP of Michigan, FLAKE, THOMAS, MACK, THOMPSON 
of Mississippi, TERRY, MURPHY, PICKERING, Mrs. CUBIN, Messrs. WELDON of 
Pennsylvania, BILIRAKIS, AL GREEN of Texas and PEARCE changed their 
votes from ``aye'' to ``no.''
  Mr. OWENS, Mrs. KELLY, Messrs. HINOJOSA, REYES, SALAZAR, FERGUSON and 
MOLLOHAN changed their vote from ``no'' to ``aye.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.
  Stated against:
  Mr. NORWOOD. Mr. Speaker, on rollcall No. 532, Markey of 
Massachusetts amendment, had I been present, I would have voted ``no.''
  The SPEAKER pro tempore (Mr. Bonner). The question is on the motion 
to concur in the Senate amendment with an amendment.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. MARKEY. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 and clause 9 of rule 
XX, this 5-minute vote on the motion to concur in the Senate amendment 
with a House amendment will be followed by 5-minute votes on suspending 
the rules on H. Res. 1091 and suspending the rules on H.R. 6375.
  The vote was taken by electronic device, and there were--ayes 367, 
noes 45, not voting 21, as follows:

                             [Roll No. 533]

                               AYES--367

     Abercrombie
     Ackerman
     Aderholt
     Akin
     Alexander
     Allen
     Baca
     Bachus
     Baird
     Barrett (SC)
     Barrow
     Bartlett (MD)
     Barton (TX)
     Bass
     Bean
     Beauprez
     Becerra
     Berkley
     Berman
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Blackburn
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonner
     Bono
     Boozman
     Boren
     Boswell
     Boucher
     Boustany
     Boyd
     Bradley (NH)
     Brady (TX)
     Brown (OH)
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Burgess
     Butterfield
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Capuano
     Cardin
     Cardoza
     Carnahan
     Carson
     Carter
     Case
     Castle
     Chabot
     Chandler
     Chocola
     Clay
     Cleaver
     Clyburn
     Coble
     Cole (OK)
     Conaway
     Cooper
     Costa
     Costello
     Cramer
     Crenshaw
     Crowley
     Cubin
     Cuellar
     Culberson
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis (KY)
     Davis (TN)
     Davis, Tom
     Deal (GA)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Doolittle
     Doyle
     Drake
     Dreier
     Duncan
     Edwards
     Ehlers
     Emanuel
     Emerson
     Engel
     English (PA)
     Eshoo
     Etheridge
     Everett
     Feeney
     Ferguson
     Fitzpatrick (PA)
     Flake
     Forbes
     Fortenberry
     Fossella
     Foxx
     Franks (AZ)
     Frelinghuysen
     Garrett (NJ)
     Gerlach
     Gilchrest
     Gingrey
     Gohmert
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Granger
     Graves
     Green (WI)
     Green, Al
     Green, Gene
     Gutknecht
     Hall
     Harris
     Hart
     Hastert
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hensarling
     Herger
     Herseth
     Higgins
     Hinojosa
     Hobson
     Hoekstra
     Holden
     Honda
     Hooley
     Hostettler
     Hoyer
     Hulshof
     Hunter
     Hyde
     Inglis (SC)
     Inslee
     Israel
     Issa
     Istook
     Jackson-Lee (TX)
     Jefferson
     Jenkins
     Jindal
     Johnson (CT)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones (OH)
     Kanjorski
     Kaptur
     Keller
     Kelly
     Kennedy (MN)
     Kennedy (RI)
     Kildee
     Kilpatrick (MI)
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline
     Knollenberg
     Kuhl (NY)
     LaHood
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Leach
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lofgren, Zoe
     Lowey
     Lucas
     Lungren, Daniel E.
     Mack
     Maloney
     Manzullo
     Marchant
     Marshall
     Matheson
     Matsui
     McCarthy
     McCaul (TX)
     McCollum (MN)
     McCotter
     McCrery
     McDermott
     McHenry
     McHugh
     McIntyre
     McKeon
     McMorris Rodgers
     McNulty
     Meehan
     Meeks (NY)
     Melancon
     Mica
     Michaud
     Millender-McDonald
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Mollohan
     Moore (KS)
     Moran (KS)
     Moran (VA)
     Murphy
     Murtha
     Musgrave
     Myrick
     Nadler
     Neal (MA)
     Neugebauer
     Northup
     Nunes
     Nussle
     Oberstar
     Obey
     Ortiz
     Osborne
     Owens
     Pascrell
     Pearce
     Pelosi
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Poe
     Pombo
     Pomeroy
     Porter
     Price (GA)
     Price (NC)
     Pryce (OH)
     Putnam
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Reichert
     Renzi
     Reyes
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ross
     Rothman
     Royce
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Ryun (KS)
     Sabo
     Salazar
     Sanchez, Loretta
     Saxton
     Schiff
     Schmidt
     Schwartz (PA)
     Schwarz (MI)
     Scott (GA)

[[Page 23199]]


     Scott (VA)
     Sekula Gibbs
     Sensenbrenner
     Serrano
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Sherwood
     Shimkus
     Shuster
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Sodrel
     Solis
     Souder
     Spratt
     Stearns
     Stupak
     Sullivan
     Tancredo
     Tanner
     Tauscher
     Taylor (MS)
     Terry
     Thomas
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Tiahrt
     Tiberi
     Towns
     Turner
     Udall (CO)
     Upton
     Van Hollen
     Velazquez
     Walden (OR)
     Walsh
     Wamp
     Watt
     Weiner
     Weldon (FL)
     Weldon (PA)
     Weller
     Westmoreland
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Wu
     Wynn
     Young (AK)
     Young (FL)

                                NOES--45

     Andrews
     Baldwin
     Brady (PA)
     Capps
     Conyers
     Davis (FL)
     Farr
     Filner
     Frank (MA)
     Grijalva
     Gutierrez
     Harman
     Hastings (FL)
     Hinchey
     Holt
     Jackson (IL)
     Kucinich
     Lee
     Lynch
     Markey
     McGovern
     McKinney
     Meek (FL)
     Moore (WI)
     Napolitano
     Olver
     Pallone
     Pastor
     Payne
     Ros-Lehtinen
     Roybal-Allard
     Sanchez, Linda T.
     Sanders
     Schakowsky
     Simpson
     Stark
     Tierney
     Udall (NM)
     Visclosky
     Wasserman Schultz
     Waters
     Waxman
     Wexler
     Whitfield
     Woolsey

                             NOT VOTING--21

     Baker
     Blumenauer
     Burton (IN)
     Davis, Jo Ann
     Evans
     Fattah
     Ford
     Gallegly
     Gibbons
     Gillmor
     Jones (NC)
     Kolbe
     Norwood
     Otter
     Oxley
     Paul
     Simmons
     Strickland
     Sweeney
     Taylor (NC)
     Watson


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Members are advised that 
there are 2 minutes remaining in this vote.

                              {time}  1538

  Mr. BERMAN, Ms. SOLIS, and Mr. MEEHAN changed their vote from ``no'' 
to ``aye.''
  So the motion was agreed to.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated for:
  Mr. NORWOOD. Mr. Speaker, on rollcall No. 533, Tax Relief and Health 
Care Act, had I been present, I would have voted ``yes.''
  Mr. SIMMONS. Mr. Speaker, on rollcall No. 533 I was listed as not 
voting. I was in the Capitol, however, and cannot explain the absence 
of a recorded vote. I would like to be recorded as voting ``yea.''

                          ____________________